Smallholders in global bioenergy value chains and certification

Mar 2012

Over the last few years, there has been growing interest in bioenergy, due in part to its potential for rural development and climate change mitigation, and as an energy alternative given the high price of oil.  At the same time, concerns regarding the potential negative impacts of bioenergy have also grown and have led to the development of a range of voluntary standards aimed at ensuring the sustainability of bioenergy production. While one of the goals of voluntary standards is to enhance the sustainability of bioenergy production – including from a socio-economic perspective – they might also present a disincentive for incorporating smallholders in value chains, due to greater cost and complexity. FAO’s Bioenergy and Food Security Criteria and Indicators (BEFSCI) project conducted three case studies to examine the opportunities and challenges for smallholders presented by: 1) bioenergy as a new type of value chain, and by 2) bioenergy certification schemes.
The key findings derived from the case studies are:
•    Under current scheme structures, smallholders can still participate in global bioenergy value chains, even without becoming certified;
•    There is a lack of current incentives for the certification of smallholders;
•    Farmer organization is a key determinant of the success of both engaging with buyer companies and in managing the certification process;
The objective of enhancing smallholder inclusion in both value chains and certification is to improve smallholder livelihoods. This report has sought to identify the relationship between smallholder participation in global value chains and certification and the potential impact on smallholder livelihoods. The recommendations included herein focus on improving smallholder livelihoods through participation in global value chains and certification. The success of intervention will depend on the ability of actors to address these challenges jointly after having defined the role of each institution.
This report presents the following recommendations at  various  levels  of  governance:
•    Create incentives for smallholder inclusion at the policy and private standard levels;
•    Capacity building on certification should be incorporated into the existing efforts aimed at creating shared value;
•    Tailor smallholder inclusion measures to the specifics of both the country and crop;
•    Develop financial mechanisms to enhance smallholder inclusion.

By: BEFSCI/FAO

 
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