ARGENTINA ESTABLISHING A SUSTAINABLE AND CERTIFIED SUPPLY CHAIN FOR EU IMPORT OF BIODIESEL FROM SOY

ARGENTINA

ESTABLISHING A SUSTAINABLE

AND CERTIFIED SUPPLY CHAIN

FOR EU IMPORT OF BIODIESEL

FROM SOY

Jeroen Douglas

THE CONTRIBUTORS TO THIS

PROJECT

Donor

Project coordinator

PROBLEM

DEFINITION AND

AIM:

THE GREENHOUSE GAS EMISSION SAVINGS BY USING

BIODIESEL/LIQUIDS AS PER EU-RED MUST BE AT

LEAST 35%, TO BE INCREASED TO 50% AS OF 2017

AND TO 60% AS PER 2018. CURRENTLY, THE DEFAULT

VALUE FOR SOY IS SET AT 31%, BELOW THE

THRESHOLD LEVEL. HOWEVER, GIVEN A ‘TYPICAL

VALUE’ OF 40% FOR SOYBEAN BIODIESEL, THERE IS

REASON TO BELIEVE THAT THE ACTUAL VALUE FOR

SOY IN ARGENTINA WILL MOST LIKELY EXCEED THE

MINIMUM GREENHOUSE EMISSIONS SAVINGS

STANDARD.

5 PROJECT

OBJECTIVES:

1. IMPROVING THE RTRS IT

PLATFORM

2. IDENTIFY TWO POTENTIAL

RTRS CERTIFIED SOY BIODIESEL

SUPPLY CHAINS

3. FIELD MEASURING ON GHG

EMISSIONS

4. SELLING RTRS CERTIFIED SOY

BIODIESEL TO EUROPE

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1. DEVELOPMENT OF THE

REGISTRY PLATFORM:

THE DEVELOPMENT OF THE RTRS IT

PLATFORM WAS DONE BY CHAINFOOD. IT

ALLOWS FULL TRACK AND TRACE +

CERTIFICATE TRADE

Name: _{RTRS Trading Platform Manual 1 0}

Date: 21-10-2011 Page: 3/24

1 . RTRS Tr a din g Pla t f or m : I n t r odu ct ion

This manual describes the functionalities of the RTRS Trading Platform. Please take into account that possibly customized functionalities and updates in the ChainPoint software can outdate this manual. In case of doubt contact Chainfood support by sending an e-mail to support@chainfood.com.

When clicking on the left hand bottom button ‘Market  pl ace’ the selected company will disappear on the top and the following screen will appear:

1. St ar t page RTRS Mar ket Place

The following menu buttons are available: All offers (Chapter 2)

My offers: The numbers indicate how many offers are open (1st number) and how many offers the user has in total (2nd number). (Chapter 3)

All bids (Chapter 4)

My bids: The numbers indicate how many bids are open (1st number) and how many bids the user has in total (2nd _{number). (Chapter 5)}

Direct trades: The number indicates the active direct trades. (Chapter 6)

Transactions: The number indicates the total amount of transactions. (Chapter 7) Redeeming (Chapter 8)

Credit balance (Chapter 9)

Before explaining the different menu options, the concept of offers and bids should be explained.

A b id: a statement that a company wants to buy a specified quantity of credits for a

specified price (a request).

An off e r: a statement that a company wants to sell a specified quantity of credits for a

specified price.

In the system offers and bids will be matched with each other. Since a credit is a credit and credits are anonymous, it is not relevant to have a counter offer or counter bid to only one specific bid or offer. If 3 parties offer 100 credits for 3 dollars, as a bidding company willing to buy 100 credits it  do esn’t  make  an y  dihe fference  w o  you  are  g tting   the credits from. You  d n’t want to make 3 counter bids to all 3 offers. You just want to o make one (counter) bid that any of the offering parties can react to. So in the system there is no distinction between bids and counter bids or between offers and counter

2. IDENTIFICATION OF TWO

SOY-TO-BIODIESEL PILOT CHAINS:

PRODUCER LOS GROBO AND PROCESSOR

LOS MOLINOS CERTIFIED (RTRS P&C AND

RTRS COC RESPECTIVELY) – 150,000

HECTARES; SPIN-OFF: RTRS P&C

COMPLIANCE CRITERIA WIDESPREAD

PROMOTED.

8

3. FIELD MEASUREMENTS ON

GHG BUDGET:

INTA REPORT ON METHODOLOGY AND

RESULTS GHG MEASUREMENTS, IN TERMS

OF THE GHG REDUCTION POTENTIAL,

TAKING INTO ACCOUNT THE ACTUAL

VALUES MEASURED IN THE FIELD,

PERCENTAGES VARY BETWEEN 54% AND

56%.

THE PROJECT HAS CONTRIBUTED TO SUSTAINING THE PRODUCTION AND PROCESSING ACTIVITIES RELATED TO SOY BIODIESEL IN ARGENTINA BY PROMOTING SUSTAINABILITY CRITERIA RELATED TO RTRS P&C, BY DEMONSTRATING THE GHG REDUCTION POTENTIAL IN THE SECTOR, BY CREATING AWARENESS ON ADHERING TO SOCIAL AND ENVIRONMENTAL COMPLIANCE CRITERIA. ALTHOUGH FIELD MEASUREMENTS ON GHG EMISSIONS CONTINUE TO TAKE PLACE, BASED ON THE FIRST RESULTS OF THE MEASUREMENTS AVAILABLE, AN EXPECTED GHG REDUCTION POTENTIAL OF 54%-56% IS EXPECTED.

4. SEPT 2011, LOS GROBO

AND LOS MOLINOS SIGNED A

CONTRACT WITH SHELL ON

RTRS (AND ISCC) CERTIFIED

SOY BIODIESEL.

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5. DISSEMINATION,

RECOMMENDATION AND

FOLLOW-UP:

ON MAY 13, 2013 SOLIDARIDAD ORGANIZED A

DISSEMINATION EVENT AT CARLOS CASARES TO LAUNCH

THE NITROX SENSOR AND TO SHARE THE PRELIMINARY

RESULTS. PARTICIPANTS FROM INTA, RTRS, LOS GROBO,

SOLIDARIDAD PLUS REPORTERS WERE PRESENT DURING

THIS EVENT WHICH WAS LIVE BROADCASTED BY

MAIN OUTCOME OF THE

PROJECT:

THE PROJECT HAS CONTRIBUTED TO SUSTAINING THE PRODUCTION AND PROCESSING ACTIVITIES RELATED TO SOY BIODIESEL IN ARGENTINA BY PROMOTING SUSTAINABILITY CRITERIA RELATED TO RTRS P&C, BY CERTIFYING THE LOS GROBO-MOLINOS-SHELL CHAIN, BY EXPORTING RELEVANT VOLUME AND BY DEMONSTRATING THE GHG REDUCTION POTENTIAL IN

12

ALTHOUGH FIELD MEASUREMENTS ON GHG EMISSIONS CONTINUE TO TAKE PLACE, BASED ON THE FIRST RESULTS OF THE MEASUREMENTS AVAILABLE, A GHG REDUCTION POTENTIAL OF 54%-56% IS EXPECTED.

LESSONS LEARNED:

1. THE EU HAS SHOWN TO BE AN UNRELIABLE

PARTNER. PROHIBITIVE TARIFFS FOR ARGENTINE

SOYBASED BIODIESEL HAS DESTROYED THE

BUSINESS; NO TARGET TO DECARBONIZE TRANSPORT

FUELS BY 2030

2. THE GHG REDUCTION POTENTIAL IS ESTIMATED TO

BE BETWEEN 54% AND 56%. THERE IS REASON TO

BELIEVE THAT THE ACTUAL VALUE FOR SOY IN

ARGENTINA WILL MOST LIKELY EXCEED THE EU

MINIMUM GREENHOUSE EMISSIONS SAVINGS

STANDARD OF 40%.

3. THE PROJECT HAS EXPERIENCED STRONG

COMPETITION BETWEEN 2BSVS (BIOMASS BIOFUELS

SUSTAINABILITY) VOLUNTARY SCHEME, ISCC

(INTERNATIONAL SUSTAINABILITY AND CARBON

CERTIFICATION) AND RTRS ON THE BIODIESEL

RECOMMENDATIONS

FOR POLICY:

INSIDE ARGENTINA:

1. LOCAL MARKET OBLIGATION MUST RAISE FROM 8

TO 10 PERCENT IN 2014 TO OFFSET SMALLER

EXPORTS DUE TO EU MARKET RESTRICTIONS.

2. PROMOTION AND RECOGNITON BY THE ARGENTINE

GOVERNMENT OF CERTIFICATION SCHEME FOR

BIODIESEL WILL ENHANCE SUSTAINABILITY AND

SECTOR IMAGE. IMPROVED ACCESS FOR SOY OIL TO

PREMIUM MARKETS.

TOWARDS THE EU:

1. USE THE INTA DATA GENERATED BY THE PROJECT

ON GHG REDUCTION POTENTIAL (BETWEEN 54% AND

56%) FOR NEGOTIATIONS AT THE EU, SO AS TO

REDUCE THE PROHIBITIVE DUTY OF 24.6 PERCENT ON

BIODIESEL IMPORTS FROM ARGENTINA.

2. POLICY ON DECARBONIZED TRANSPORT FUELS FOR

2030 MUST BE STRNGTHENED URGENTLY.

solidaridadnetwork.org

@solidaridadnetw

/solidaridadnetwork

/company/solidaridad

JEROEN DOUGLAS

JEROEN.DOUGLAS@SOLIDARIDADNETWORK.ORG