International Sustainability and Carbon Certification – ISCC Amsterdam, June 10, 2013

Dr. Jan Henke ISCC System GmbH Weißenburgstr. 53 D-50670 Cologne www.iscc-system.org © ISCC System GmbH

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ISCC follows the strategy of a quality system. It is operational since 2010. More than 2700 certificates have already been issued in 71 countries

* Numbers as of May 25, 2013 © ISCC System GmbH

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High volumes of ISCC material are being sold

• Certification system recognised by EU for biofuels • High premium for CPO sales (biofuels)

• Certification system not recognised for biofuels • Moderate premium for CPO sales (other segments than biofuels with less demand for sustainable products)

Source: Felda

Specialized standards may limit the access to price premiums, standards open for all market segments and kinds of biomass offer additional opportunities © ISCC System GmbH

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Considerable price premiums for certified biofuels can be achieved Example FAME 0 vs. FAME 0 RED ($/mt) Spread RED vs. non-RED

Source: 2013 Argus Media Limited. © ISCC System GmbH

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ISCC monitors the effectiveness of its certification scheme. Important improvements w.r.t sustainability can be detected • Investors check if areas are eligible for certification prior to investments • Land related criteria are most important. ISCC is working on improving the use of high-resolution satellite images to detect direct land use changes and improve risk assessments • Improvements in handling and storage of pesticides • Reduction of GHG emissions in farming and processing. Change from use of default values to individual calculation (also in the light of FQD) • Improvements of social aspects and living quarters • Increasing requests for ISCC PLUS and additional requirements on cultivation level

© ISCC System GmbH

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To secure achievements, an expansion of sustainability certification to other markets is a necessity • Tremendous increase in global meat consumption expected • Production of soybean meal increased by 43 % between 2002 and 2012 • Just adding an iLUC factor to biofuels GHG emissions will not solve the problem of land use change resulting in a loss of biodiversity and carbon stocks

Global Meat Consumption (1000 t)

Sources: FAO, OECD, USDA © ISCC System GmbH

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New draft Commission Regulation on highly biodiverse grassland

• Definitions can be implemented by voluntary schemes • Schemes recognized for grassland today do not allow conversion of any type of grassland. This can be changed with the new definition • Schemes not recognized for grassland need to reapply • Independent expert assessments might be necessary

© ISCC System GmbH

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ISCC closely monitors the developments on waste and residues and double counting and has implemented clear rules The acceptance of different waste and residues for double counting always depends on member state requirements

yes

Determine target market(s)

Check requirements in these markets and positive list, if available

Waste or residue?

unclear

no

© ISCC System GmbH

Certification according to ISCC EU waste and residue

Contact ISCC for guidance

Certification according to ISCC EU 8

Lists of material eligible for double counting and certification procedures are not harmonized across the EU

UK

The Netherlands

Germany

UCO

✔

✔

✔

Animal fat Cat. I

✔

✔

✔

Animal fat Cat. II

✔

✔

✔

Forestry residue

✔

✔

Brown grease

✔

✔

food waste

✔

✔

tall oil pitch

✔

✔

✔

Manure

✔

✔

✔

Denmark

Italy

✔

• Fraud must be tackled

✔

• No update procedures of lists • Double counting material in one country, single in the other

Animal fat Cat. III

© ISCC System GmbH

• High price premiums for double counting biofuels

• Certification for multiple markets necessary

✔

• Certification as co-product and waste at the same time ✔

• No harmonization of certification and documentation requirements

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ISCC is recognized under 36th BImSchV. For raw materials not covered by the BLE lists users could apply via ISCC for approval by the BLE Amendment/ specification of BLE lists System user applies for amendement/ specification of lists

yes

ja Evaluation positive?

BLE

Acceptance?

assessment

no

no

Prerequisite for entering the application process: 

Biomass or biofuels are not claimed to be waste due to exceeding date of expiry



Waste or residues are not produced on purpose to become waste or residues



Country of origin must be on BLE-list

© ISCC System GmbH

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First ISCC certification of a renewable fuel of non biological origin has taken place in Iceland – ISCC PLUS system documents have been adopted

© ISCC System GmbH

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50 years WWF in Germany: For this reason, WWF and Playmobil produced a key chain from bioplastics using ISCC certified biomass

Source: www.wwf.de © ISCC System GmbH

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Five Technical Committees (TCs) are active within ISCC

TC 1: Implementation of the RED in Europe

TC 5: South East Asia

TC 2: Latin America

ISCC Technical Committees (TCs) can be established by the ISCC Board to work on specific topics and regional issues and to further promote ISCC

TC 3: Solid biomass

TC 4: North America © ISCC System GmbH

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ISCC e.V. - the different stakeholders are united in one association. More than 250 stakeholders contibuted to the development of ISCC

© ISCC System GmbH

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Conclusions • Continuous increase in use of ISCC • Clear benefits of certification can be detected • Expansion of sustainability certification to other markets is inevitable to secure positive effects, protect biodiversity and carbon stock and to tackle LUC and iLUC • Increasing use of ISCC PLUS • Close monitoring of developments in areas of wastes, residues and double counting inevitable. Clear and robust rules are necessary • Careful implementation of grassland regulation and update of RED/FQD once available • Increasing requirements regarding traceability and information provision along supply chains. Product characteristics must be preserved. Security for market participants, harmonization and tackling of fraud necessary © ISCC System GmbH

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