Table <strong>of</strong> Contents Introduction 3 The Policy Framework 3 The Legal Framework 3 Conclusions <strong>and</strong> Recommendations 5 Endnotes 6 Bibliography 7 2 POLICY INNOVATION SYSTEMS FOR CLEAN ENERGY SECURITY <strong>Pisces</strong> work<strong>in</strong>g briefM4 Malawi.<strong>in</strong>dd 2 24.05.2011 10:48:09 AM
Introduction Reports <strong>in</strong>dicate a grow<strong>in</strong>g <strong>and</strong> unprecedented <strong>in</strong>terest <strong>in</strong> <strong>the</strong> production <strong>and</strong> use <strong>of</strong> bi<strong>of</strong>uels worldwide (Worldwatch Institute, 2007: xvii). However, African countries have historically <strong>of</strong>ten had challenges ensur<strong>in</strong>g that effective regulatory structures are <strong>in</strong> place to deal with new technologies (Molony <strong>and</strong> Smith, 2010). In <strong>the</strong> case <strong>of</strong> bi<strong>of</strong>uels, <strong>the</strong> ris<strong>in</strong>g <strong>in</strong>terest <strong>in</strong> this technology <strong>in</strong> African countries <strong>in</strong> <strong>the</strong> absence <strong>of</strong> effective laws <strong>and</strong> policies govern<strong>in</strong>g <strong>the</strong> sector is detrimental as policy <strong>in</strong>struments are recognized as vital to <strong>the</strong> development <strong>of</strong> robust bi<strong>of</strong>uel <strong>in</strong>dustries (Worldwatch, 2007:279). In turn, policy drives law, <strong>and</strong> a sound legal <strong>and</strong> regulatory framework is now well recognized as necessary if <strong>the</strong> risks <strong>of</strong> negative impacts <strong>of</strong> bi<strong>of</strong>uels are to be m<strong>in</strong>imized <strong>and</strong> <strong>the</strong> benefits maximized <strong>in</strong> both <strong>the</strong> immediate <strong>and</strong> long term (FAO, 2009; FAO, 2007). The Policy Framework The level <strong>of</strong> production <strong>of</strong> bi<strong>of</strong>uels <strong>in</strong> Malawi is relatively high, but is currently not at levels sufficient to meet dem<strong>and</strong>. 1 There are currently only two ma<strong>in</strong> bioethanol production companies, produc<strong>in</strong>g an average <strong>of</strong> 18 million litres <strong>of</strong> bioethanol (GoM, 2003). Biodiesel <strong>in</strong>volves a number <strong>of</strong> private companies <strong>and</strong> Non-Governmental Organisations (NGOs), but <strong>in</strong> light <strong>of</strong> a more recent history <strong>of</strong> commercial production, only 18 million jatropha trees have so far been planted (BAM, 2010:3), though more companies are show<strong>in</strong>g <strong>in</strong>creased <strong>in</strong>terest <strong>in</strong> <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> <strong>the</strong> sector (GoM, 2010). As production is hampered by <strong>the</strong> absence <strong>of</strong> a specific policy document on bi<strong>of</strong>uels, <strong>the</strong>re have been concerted efforts by stakeholders <strong>in</strong> <strong>the</strong> bi<strong>of</strong>uels <strong>in</strong>dustry to provide <strong>in</strong>put on <strong>the</strong> creation <strong>of</strong> an appropriate bi<strong>of</strong>uels policy, for example by present<strong>in</strong>g position papers <strong>and</strong> policy proposals <strong>and</strong> impact assessment reports on bi<strong>of</strong>uels <strong>in</strong> Malawi to <strong>the</strong> government (See for example, BAM, 2010). Key among <strong>the</strong>se stakeholders is <strong>the</strong> Bi<strong>of</strong>uels Association <strong>of</strong> Malawi. 2 This is a non-pr<strong>of</strong>it organization which aims to promote <strong>the</strong> establishment <strong>of</strong> a viable bi<strong>of</strong>uels <strong>in</strong>dustry <strong>in</strong> Malawi (BAM, 2009a:4), <strong>and</strong> has been <strong>in</strong>strumental <strong>in</strong> promot<strong>in</strong>g <strong>the</strong> development <strong>of</strong> a bus<strong>in</strong>ess environment conducive to <strong>the</strong> bi<strong>of</strong>uels <strong>in</strong>dustry. Despite membership be<strong>in</strong>g open to a wide range <strong>of</strong> actors <strong>in</strong> <strong>the</strong> <strong>in</strong>dustry (ibid: 5), <strong>the</strong> found<strong>in</strong>g members <strong>of</strong> <strong>the</strong> association are currently among <strong>the</strong> most active organisations <strong>in</strong> <strong>the</strong> grow<strong>in</strong>g <strong>of</strong> jatropha for <strong>the</strong> production <strong>of</strong> biodiesel (BAM, 2009b) <strong>and</strong> as such, certa<strong>in</strong> stakeholders such as bioethanol producers <strong>and</strong> poor smallholder farmers are ill-represented <strong>in</strong> <strong>the</strong> activities <strong>of</strong> <strong>the</strong> organisation. Follow<strong>in</strong>g <strong>the</strong> first bi<strong>of</strong>uels stakeholder workshop held <strong>in</strong> November 2008 <strong>in</strong> Malawi, an advisory council known as <strong>the</strong> Bi<strong>of</strong>uel Advisory Council 3 was created, with members from government <strong>and</strong> <strong>the</strong> private sector (BAM, 2009b). BAC consists <strong>of</strong> representatives from <strong>the</strong> M<strong>in</strong>istry <strong>of</strong> Energy <strong>and</strong> M<strong>in</strong>es, <strong>the</strong> M<strong>in</strong>istry <strong>of</strong> Agriculture, <strong>the</strong> M<strong>in</strong>istry <strong>of</strong> Industry, Trade <strong>and</strong> Private Development <strong>and</strong> <strong>the</strong> M<strong>in</strong>istry <strong>of</strong> F<strong>in</strong>ance, <strong>and</strong> a private sector representative (BAC, 2009:3). The goal <strong>of</strong> <strong>the</strong> Council is to develop a policy <strong>and</strong> legal framework for bi<strong>of</strong>uel production <strong>in</strong> Malawi, <strong>and</strong> a major challenge is <strong>the</strong> harmonization <strong>of</strong> <strong>the</strong> various exist<strong>in</strong>g agricultural <strong>and</strong> energy policies <strong>and</strong> strategies to provide a framework for <strong>the</strong> development <strong>of</strong> <strong>the</strong> bi<strong>of</strong>uels <strong>in</strong>dustry (ibid:6). As it currently st<strong>and</strong>s, different government m<strong>in</strong>istries are charged with different responsibilities with a bear<strong>in</strong>g on <strong>the</strong> development <strong>of</strong> <strong>the</strong> bi<strong>of</strong>uels sector. For example, <strong>the</strong> M<strong>in</strong>istry <strong>of</strong> Agriculture <strong>and</strong> Food Security, <strong>the</strong> M<strong>in</strong>istry <strong>of</strong> Natural Resources, Energy <strong>and</strong> Environment, <strong>the</strong> M<strong>in</strong>istry <strong>of</strong> POLICY INNOVATION SYSTEMS FOR CLEAN ENERGY SECURITY 3 <strong>Pisces</strong> work<strong>in</strong>g briefM4 Malawi.<strong>in</strong>dd 3 24.05.2011 10:48:10 AM
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