Sustainability reporting within the RTFO: framework report

May 2007

This paper has been produced by Ecofys for and in consultation with the Department for Transport. It has undergone a peer review process involving a project Advisory Group and other stakeholders. It sets out the principles behind the advice which led to the Requirements and Guidance for Carbon and Sustainability Reporting contained in the consultation document Carbon and Sustainability Reporting within the Renewable Transport Fuel Obligation.
This second draft Framework Report describes the proposed sustainability criteria fuel suppliers are expected to report and how this reporting is proposed to work in practice.
Thereby this report recommends the framework for the Technical Guidance which describes in detail the proposals for exactly what, when and how fuel suppliers are expected to report on to the RTFO administrator with respect to the sustainability of their biofuels.
Chapter 2 describes the proposed scope for sustainability reporting and defines the environmental and social criteria and indicators recommended to be reported on. In addition it identifies sustainability risks which are difficult to tackle through sustainability criteria and proposes alternative measures to address these risks.
Chapter 3 describes the proposed Meta-Standard approach for sustainability reporting in which maximum use is made of existing sustainability standards. For this purpose, existing standards have been benchmarked against the criteria of the Meta-Standard. In addition the current availability of certified energy crops and the potential for expansion have been analysed. Based on these analyses several standards are proposed as Qualifying Standards in the RTFO sustainability reporting: certification against a Qualifying Standard would be considered proof of an acceptable level of sustainability. It is proposed that higher levels of sustainability can be obtained through supplementary checks. Furthermore, practical solutions are proposed for crops for which currently no internationally accepted standard is operational.
The proposed monthly and annual reporting requirements are illustrated in Chapter 4. This includes the recommended definition of a batch for the purpose of monthly batch reporting. In addition, guidelines are proposed for what constitutes ‘adequate reporting’ and how this could develop over time.
Chapter 5 discusses three different methods which can provide a link between the sustainability claims by a fuel supplier and actual sustainable feedstock production on a farm: bulk commodity systems, mass-balance systems and book-and-claim systems. The pros and cons for each of these systems for the RTFO sustainability reporting are discussed in addition to their practical compatibility with the proposed Meta-Standard. This chapter also addresses the issue of equivalence trading.
Verification of company reporting is addressed in Chapter 6. Proposals are made for both the rigour and scope of verification, building on existing methodologies for verification of sustainability reporting.

By: ECOFYS

 
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