Tag Archives: ethics

War against biofuels

As I continued my work promoting the circularity of recovering organic waste and residue for energy purposes (mostly through the production of various biofuels), I begin to see the challenge that this space face.

Right now, EU is putting strict rules around the feedstocks allowed for the biofuels that count towards decarbonisation in their jurisdictions and hence the emergence of ISCC EU standards and certification for the value chains surrounding biofuels (and of course, other renewable fuels). Some crop-based feedstocks are allowed, but most crop-based feedstocks are being penalised by the indirect land-use change (ILUC) considerations – which are being reconsidered at the moment. However, there are some groups who are outright against crop-based feedstocks and considering them unsustainable.

Transport & Environment, in particular, have been rather against the whole idea of biofuels and champion a future that is based on hydrogen. They view biofuels as transition fuels that have no place in a net zero world. Consider the letter crafted to push shipping companies away from biofuels for green shipping just because they claim particular crops have been devastating the environment. They continue their assault on palm and soy industries instead of working alongside to find solutions to help these industries boost yield and reduce deforestation. Consider the achievement of the corn industry in the US, driven by the need to produce bioethanol. Won’t it be better if people work together to realise such improvement and increase the supply of alternative fuels in the world rather than screaming doom and gloom about one feedstock or another?

So what kind of doom and gloom are they perpetuating here, you ask? They commissioned a study by Cerulogy showing that “palm and soy oil would likely make up nearly two-thirds of the biodiesel used to power the shipping industry in 2030 as they represent the cheapest fuels to comply.” Again, the concern is food supply being affected as the resources are directed to energy; and also deforestation driven by these crops as feedstock? Isn’t EU Deforestation Regulations (EUDR) meant to look into these areas? Why not just use the tracking and scrutiny to prevent that damage instead of creating blanket bans? Use an lifecycle assessment-driven approach? And focus our efforts on developing clearer standards for lifecycle assessments rather than trying to exclude solutions before they hit the ground?

Well, if you really want to promote hydrogen, you can also consider the environmental damage from the lack of circularity in the solar, wind and battery materials space. The thing about green hydrogen is that it will require intermittent renewable power and these resources do also take up land space. They may not compete with food crops because they use marginal land; or that livestock can continue to coexist amidst solar panels. Wait, food crops could be grown with other parts of their biomass directed to fuels too! And many of these crops can be directed towards animal feed for feedstocks.

I agree that we probably want to think through a bit how the incentives we create can have very bad unintended consequences. But trying so hard to do that on biofuels is not going to undo the problems introduced by decades of subsidising the fossil industries via various policies. Those distorted incentives are plaguing us till this day.

Why is there such a war against biofuels? I don’t get it.

Sales or professional service

Whether you’re in a law firm, accounting firm or consulting firm, as you rise up to Partner status, your major contribution to the company is deemed as sales. Nevermind you’ve accumulated lots of experience and is able to solve very tricky issues for clients, if you fail to bring business in, you have failed at your role. This is a challenging thought and it made me wonder whether the end point of growth in professional service and being able to serve clients well is just sales? Or is that all a false dichotomy to begin with?

How can we set up sales situations such that it is less adversarial, where we can be really win-win rather than see it as a zero-sum game. In some sense, it is true that a client can still get some kind of service from another firm, a competitor whereas when they walk away from you, your firm gets nothing. So it is very easy to see it as a win-lose kind of deal. And moreover, the client will be putting in process and structure to try and get the best deal out of their vendor. That is simply the way the mature market economy is set up. Can there be really different rules and different ways of working to contextualize situations in ways that are less tense and difficult?

Can sales be driven by the desire to serve and not to profit from the client? How can sales be set up such that the joy of service pays and profit is just a byproduct? I think the missing piece in the puzzle is really around the purpose and the conviction of the service to be rendered. When one is truly able to deliver superior service and product, with a strong faith that it will satisfy the clients’ needs, then the sales situation will be more of a win-win deal. The client loses out by walking out because you are the one who is able to bring the solution to the client.

The question is how do you know? Perhaps that is for another day.