Stacked logs of wood

Sustainable Fuelwood Plantation (SFP) for Solid Biofuel Production

By Markus Spiske on Unsplash

Sustainable Fuelwood Plantation (SFP) for Solid Biofuel Production

Country
Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Renewable Resources and Alternative Energy
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Alternative Energy
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
15% - 20% (in IRR)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
< USD 50 million
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
< USD 500,000
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Affordable and Clean Energy (SDG 7) Life on Land (SDG 15)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Industry, Innovation and Infrastructure (SDG 9) No Poverty (SDG 1) Climate Action (SDG 13)

Business Model Description

Invest in or project financing for Sustainable Fuelwood Plantation (SFP) with a range of plantation schemes (Fuelwood, Timber, Inter cropping with Plantations, Cash crops, Agro-forestry) and multiple fuelwood species (Gliricidia, Acacia, Calliandra, Eucalyptus, Falcataria, Casuarina, Leucaena.

Multi-stakeholder partnerships among government (Forest Department - FD, Rubber Research Institute of Sri Lanka - RRISL, Coconut Cultivation Board - CCB), Private sector plantation companies, Local communities and Civil Society Organizations (CSOs) with resource mobilization and cost/profit sharing.

There are 24 private sector-owned Regional Plantation Companies (RPC) in the country, having fuelwood plantations for own use. Further, Forest Department involves with pilot fuelwood plantations, and other innovative fuelwood plantation schemes involving communities, private sector and NGOs. Limited number of community/farmer-based fuelwood plantations are also available. Examples of Companies active in the IOA Space:

Talawakelle Tea Estates PLC was established in 1992 and has 17 tea estates, spread out over about 6,500 ha. Over 85% of energy requirement is supplied by biomass with annual consumption of over 10,000 metric tonnes or 166,000 GJ (Fuelwood 83% and Briquettes - 2%). On average 25% of fuelwood needed is grown within the estates. Nearly 950 ha is used for timber and fuelwood plantation (36).

Elpitiya Plantations PLC, established in 1997, has 13 estates in 8,800 hectares. Its core business includes the cultivation and manufacturing of Tea, Rubber, Oil Palm, Coconut and Cinnamon. About 87.5% of energy requirement is supplied by biomass, of which 23% of fuelwood needs are catered through in-house production. It expects to become self-sufficient in thermal energy generation, through its sustainable forestry by 2030 (8).

Watawala Plantations PLC was established in 1990 and it engages in the cultivation and harvesting of palm oil, tea, rubber, and other export crops in 19 estates and 12,440 ha. About 11% of the land is kept aside for the purpose of fuelwood plantations. Over 166 ha of bamboo and fuelwood plantations have been established for 25% of thermal energy demand (9).

Forest Department (FD) was established in 1899. About 55% of the forest lands fall under the purview of the FD. In one of its initiatives, FD has partnered with the Talawakelle Tea Estate PLC to establish fuelwood plantations with the participation of the community. After the final harvest, the community gets 50%, Company 30% and FD 20%. The entire thinning is shared amongst the community (10).

Expected Impact

SFPs to generate woody biomass for improved biofuel production as a source of indigenous, renewable, clean fuel to replace imported fossil fuels.

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

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Country & Regions

Explore the country and target locations of the investment opportunity.
Country
Region
  • Sri Lanka: Western Province
  • Sri Lanka: North Western Province
  • Sri Lanka: Central Province
  • Sri Lanka: Sabaragamuwa Province
  • Sri Lanka: Southern Province
Learn more

Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

Renewable Resources and Alternative Energy

Development need
Sri Lanka's dependence on imported fossil fuels is a critical challenge for economic development given the adverse impact on energy security and the environment. Over 20% of the thermal energy is catered to by imported fossil fuels (5) and can be replaced by biomass as a low cost sustainable option. In addition it will help achieve 2050 carbon neutrality targets.

Policy priority
National Energy Policy & Strategies 2019 emphasizes assuring energy security; enhancing self-reliance, caring for the environment, and enhancing the share of indigenous RE forms of energy. Thus, the policy seeks to reduce the country's dependence on fossil fuels, that are 100% imported, while addressing adverse environmental impacts including climate change (2).

Gender inequalities and marginalization issues
Lack of access to modern energy services and technologies is a concern, which are crucial to women’s opportunities to engage in economic activities, reduce drudgery of household work and overall quality of life. Livelihoods dependent on Agriculture and other income generation activities would also benefit from better access to modern energy and technologies including RE (3)

Example; In 2016, the modern biomass dryer was provided for fish drying businesses in Tangalle and have cut short their production hours from ten to four hours a day and increased their production from 200 kgs to 800 kgs per month. It has also increased the living standards of these women working in the organization. It is a fine depiction of women entrepreneurship which has to be encouraged

Investment opportunities introduction
Ample availability of RE resources (Biomass resource map identify 92,600 ha)(1) and the need for the use of alternative, sustainable and indigenous energy sources provides investment opportunities across many end-use energy sectors (232,000 MSMEs in the manufacturing sector) (7). Further, demand for energy services is growing with economic development.

Key bottlenecks introduction
As Sri Lanka is highly dependent on fossil fuels, the country faces a wide spectrum of challenges in the transition towards RE related to Capital and investment primarily related to Institutions and governance, Infrastructure and innovative business environment, Human capital and consumer participation (4).

Sub Sector

Alternative Energy

Development need
Biomass is the main source of thermal energy, contributing to 74.4% of the energy demand in industry and 57.2% of the household & commercial sector (5). It is the only low cost thermal energy source for rural households and micro, small and medium enterprises (MSMEs). Thus, sustainable production and supply of biomass energy resources could contribute to the overall economic development for the country.

Policy priority
National Energy Policy and Strategies 2019 underlines that RE resources will be exploited based on a priority order considering economics, technology and quality of each resource. In association with relevant public and private sector players. The availability of biomass will be enhanced by establishing dedicated energy plantations (2).

Gender inequalities and marginalization issues
Biomass is commonly associated with the women’s responsibility to fetch fuelwood as part of the household chores. The health and economic needs of women resulting from continuous reliance on fuelwood have received little attention. RE technologies, decentralized energy development potential for addressing gender related concerns and energy enterprises need more careful exploration (6).

Investment opportunities introduction
Sustainable fuelwood plantations provide opportunities for commercial investment for fuelwood suppliers (24 RPCs), biofuel manufacturers (6 terminals and 60 satellite sub-depots) and biomass energy technology (BET) (10 companies and 200 potters) with provision of building a larger local market.

Key bottlenecks introduction
Limited land availability and access for fuelwood plantation is a constraint. The forest products harvesting, transport and storage related regulations hinder the expansion of fuelwood plantations. Uncertainties in both fossil fuel and fuelwood prices make it difficult for companies to get involved in the development of supply chains of biomass.

Industry

Biofuels

Pipeline Opportunity

Discover the investment opportunity and its corresponding business model.
Investment Opportunity Area

Sustainable Fuelwood Plantation (SFP) for Solid Biofuel Production

Business Model

Invest in or project financing for Sustainable Fuelwood Plantation (SFP) with a range of plantation schemes (Fuelwood, Timber, Inter cropping with Plantations, Cash crops, Agro-forestry) and multiple fuelwood species (Gliricidia, Acacia, Calliandra, Eucalyptus, Falcataria, Casuarina, Leucaena.

Multi-stakeholder partnerships among government (Forest Department - FD, Rubber Research Institute of Sri Lanka - RRISL, Coconut Cultivation Board - CCB), Private sector plantation companies, Local communities and Civil Society Organizations (CSOs) with resource mobilization and cost/profit sharing.

There are 24 private sector-owned Regional Plantation Companies (RPC) in the country, having fuelwood plantations for own use. Further, Forest Department involves with pilot fuelwood plantations, and other innovative fuelwood plantation schemes involving communities, private sector and NGOs. Limited number of community/farmer-based fuelwood plantations are also available. Examples of Companies active in the IOA Space:

Talawakelle Tea Estates PLC was established in 1992 and has 17 tea estates, spread out over about 6,500 ha. Over 85% of energy requirement is supplied by biomass with annual consumption of over 10,000 metric tonnes or 166,000 GJ (Fuelwood 83% and Briquettes - 2%). On average 25% of fuelwood needed is grown within the estates. Nearly 950 ha is used for timber and fuelwood plantation (36).

Elpitiya Plantations PLC, established in 1997, has 13 estates in 8,800 hectares. Its core business includes the cultivation and manufacturing of Tea, Rubber, Oil Palm, Coconut and Cinnamon. About 87.5% of energy requirement is supplied by biomass, of which 23% of fuelwood needs are catered through in-house production. It expects to become self-sufficient in thermal energy generation, through its sustainable forestry by 2030 (8).

Watawala Plantations PLC was established in 1990 and it engages in the cultivation and harvesting of palm oil, tea, rubber, and other export crops in 19 estates and 12,440 ha. About 11% of the land is kept aside for the purpose of fuelwood plantations. Over 166 ha of bamboo and fuelwood plantations have been established for 25% of thermal energy demand (9).

Forest Department (FD) was established in 1899. About 55% of the forest lands fall under the purview of the FD. In one of its initiatives, FD has partnered with the Talawakelle Tea Estate PLC to establish fuelwood plantations with the participation of the community. After the final harvest, the community gets 50%, Company 30% and FD 20%. The entire thinning is shared amongst the community (10).

Business Case

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Market Size and Environment

Market Size (USD)
Describes the value in USD of a potential addressable market of the IOA.

< USD 50 million

CAGR
Describes the historical or expected annual growth of revenues in the IOA market.

> 25%

Critical IOA Unit
Describes a complementary market sizing measure exemplifying the opportunities with the IOA.

10,500 ha of sustainable fuelwood plantation to cater for Biomass terminals of capacity 600 t/day.

Fuelwood plantation covers a wide range: Dedicated plantations in underutilized tea lands/buffer zones, Intercropping with coconut, pepper & vanilla, Home gardens, Alley cropping in rain-fed uplands, Sloping agriculture land technology (SALT), and also shade trees for coffee, cocoa and tea cultivation (11). 10,500 ha is required to generate biomass for six terminals of capacity 100 tonnes/day each.

Biomass resource maps and development plan published by SLSEA, highlight that the land availability for fuelwood plantation exceeds 92,000 ha (1). Further, National Energy Policy & Strategy directs SLSEA to establish fuelwood plantations of 20,000 ha for the industrial thermal applications and households (2).

There are over 14,000 ha of uncultivated lands in the tea estates and there is about 12,500 ha of forest/scrub lands. Further, there are about 19,000 ha of marginal tea lands with an uneconomical productivity that can be converted to fuelwood lots for better socio-economic gains (12). Further, other categories of land are available for fuelwood plantations with a range of plantation schemes (13).

Indicative Return

IRR
Describes an expected annual rate of growth of the IOA investment.

15% - 20%

Total investment for SFPs is estimated as 1,600 USD/ha for a 10 year (covering Nursery, management, harvesting and transport). The average yield for different plantation schemes is taken as 10 tonnes/ha/yr over the 10 years and selling price of 36 USD/t. These yield 19.7% IRR.

Fuel wood production under various growing models (dedicated plantations, intercropping, home gardens, etc.) with an average yield of 11 t/ha/y, in 1,822 ha of land extend cost a total of USD 275,399/year (11).

A detailed financial analysis conducted at Tea Research Institute (TRI) indicates that the establishment of fuelwood plantations in tea lands is an economically viable venture giving attractive returns, with IRR varying from 24% to 30% under different plantation schemes (12).

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Medium Term (5–10 years)

Although initial investment (including nursery) is not very high, the first harvest towards income generation will take few years, based on the plantation scheme used. The scheme proposed in the IOA, the first harvest is in year 4, with a payback period of 7 years

The proposed fuelwood plantation schemes and business models are preliminary associated with other economic activities, such as commercial plantations (tea, rubber, coconut), timber industry, and agro-forestry, thus yielding medium-term time frame (11).

Ticket Size

Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.

< USD 500,000

Market Risks & Scale Obstacles

Market - Volatile

Uncertainties in both fossil fuel and fuelwood prices and limited availability of data make it difficult for companies to get involved in the development of supply chains of biomass.

Market - Highly Regulated

There are regulatory barriers that operators have to navigate and ambiguity in the harvesting, transport and storage of fuelwood (11). Eg: Forest Act: prohibit to sell, cut, saw, convert of any tree or timber or collects or removes of forest produce (including fuelwood) unless with a special permit

Business - Supply Chain Constraints

Availability and access of land for fuelwood plantation and the sector is subjected to a range of regulatory barriers in fuelwood harvesting, transport, storage and prcoessing, which involve national and local government agencies (11).

Impact Case

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Sustainable Development Need

Energy security is a concern. Over 20% of the thermal energy demand in industry and 35% in the household & commercial sector are catered by imported fossil fuels (5), while sustainable supply of biomass is a challenge (20).

Limited access to affordable, reliable, sustainable & modern energy for all is a concern. This is further affected by present (2022) economic crisis (15), (16). Specifically, MSMEs & rural households depend heavily on conventional fuels & technologies for thermal energy (17), (18).

The negative impact of the energy sector on environmental sustainability, including its contribution to the global climate change crisis, is a concern. Interventions are required to safeguard local environment, help with adaptation measures as well as to mitigate global climate related negative impacts (19)(20).

Gender & Marginalisation

Energy poverty (the absence of sufficient choice in accessing adequate, affordable, reliable and environmentally benign energy services) are disproportionately affects women who are primarily responsible for collecting fuelwood for cooking for their households and communities (21). Multidimensional Energy Poverty Index of Sri Lanka is 0.431 in 2016 mainly contributed by lack of access to modern cooking fuel (35)

Women and marginalized communities have limited opportunities to engage with the energy industry for income generation, even though they can play a key role by contributing to energy transition, particularly in promoting biofuel for thermal energy applications and influencing the required behavioral shifts (10).

Limited access to modern energy is a key barrier for women’s or MSME entrepreneurial activities that could improve the livelihoods of their families (21). The lack of round the clock energy availability impacts MSMEs (including women's) business efficiency severely.

Expected Development Outcome

Sustainable Fuelwood Plantation (SFPs) will ensure the adequate supply of raw materials for production of biofuels, which could replace fossil fuels used in thermal energy application, to enhance energy security, while mitigating GHG emissions and enhancing carbon sequestration (5), (22).

SFPs will ensure provision of low cost and affordable fuel options for thermal energy applications, particularly for MSMEs and rural households in improving their economic outputs (23).

SFPs contribute to the enhanced access to reliable, sustainable and modern energy for all, through the supply of raw materials for the production of biofuels. It can provide opportunities for Innovation and Entrepreneurship for operators and their stakeholders, importantly the local community.

Gender & Marginalisation

Use of modern biofuels produced from sustainable plantations would provide benefits for women and marginalized communities by reducing reliance on conventional fuelwood & low efficient technology use, particularly by saving time for collection of fuelwood & improving working environment (6), (21).

By engaging with community based SFPs, women and marginalized communities can expand their income generation options to improve livelihoods of their families through various small-scale entrepreneurial projects that are locally based and use biofuels (10).

SFP schemes with local community participation will empower women and marginalized groups in effectively contributing to national level development targets (such as energy security and rural development) (21). Example: a home-based business of drying fruit and vegetables received a biomass fired dryer from FAO/UNDP, which increased production from 4kgs to 10 kgs daily.

Primary SDGs addressed

Affordable and Clean Energy (SDG 7)
7 - Affordable and Clean Energy

7.1.2 Proportion of population with primary reliance on clean fuels and technology

7.2.1 Renewable energy share in the total final energy consumption

Current Value

33% of the households use clean fuels & technologies for cooking (LPG, Electricity & advance solid biofuels). Note that Sustainable Development Council (SDC) reports unavailability of data for this indicator (24). However, approximations on cook stove users indicate that about 30% of the households use LPG and electric (25) and 20% of the households use improved biomass cook stoves (26), (27).

RE share in the total final energy consumption was 46.2% in 2019, in which 41.9% from biomass (thermal) and 4.3% from renewable electricity (hydro, wind, solar and biomass) (5).

Target Value

RE share in the total final energy consumption was 46.2% in 2019, in which 41.9% from biomass (thermal) and 4.3% from renewable electricity (hydro, wind, solar and biomass) (5).

No specific target for RE share in the final energy consumption. However, there is a target for electricity sector to increase renewable energy mix to 70% by 2030 (20).In 2019, this was 34.47% (24).

Life on Land (SDG 15)
15 - Life on Land

15.3.1 Proportion of land that is degraded over total land area

Current Value

18.6% of the land extend is already degraded or degrading stage. National data using Land Degradation Neutrality (LDN) indicator framework indicates that the land extent under already degraded, declining or at the “stressed” stage are 5,804 km² (8.7%), 6,679 km² (10.0%) and 10,079 km² (15.0%), respectively, where the total land area is 66,933 km² (28).

Target Value

14.9% by 2030, The target set under United Nations Conventions for Combating Desertification (UNCCD) is to restore 2,515 km² by 2030 (28). This IOA will contribute 105 km² in the above target. Note that the target for restoration of degraded land in updated NDCs is different from the above. NDC #1.6 under Biodiversity Sector has a target of restoring at least 25% degraded land (20).

Secondary SDGs addressed

9 - Industry, Innovation and Infrastructure
1 - No Poverty
13 - Climate Action

Directly impacted stakeholders

People

The local community will have opportunities to become partners of the fuelwood plantation with profit sharing and access to fuelwood, thus improving and smoothening their income.

Gender inequality and/or marginalization

Women and marginalised groups will get opportunity to be business partners in the SFP, and also access to free fuelwood during plantation development (pruning)

Planet

SFP schemes used in this IOA supports the restoration of degraded lands, thus improving biodiversity. It also contributes to climate change mitigation through carbon sequestration.

Corporates

They are partners under the SFP schemes, and thus benefit from the business opportunities created. Further, they will have direct access to low-cost, sustainable fuels, which will reduce the operational costs related to energy use.

Public sector

Forest Department, a public agency and local government agencies are benefited from having ownership of the business models proposed in the SFP schemes, while their officers will get opportunities to enhance their competencies related to sustainable plantations. Achieving NDC forestry targets (NDC 2: improving the quality of growing stock of natural forest and plantations; particularly 2.3: improve the quality of forest lands of RPCs)

Indirectly impacted stakeholders

People

Provision of affordable, reliable, sustainable and modern energy for thermal energy applications will reduce the cost of living for the people while improving energy security and the living environment (e.g. air quality).

Gender inequality and/or marginalization

Benefit women and marginalized communities by reducing reliance on conventional fuelwood and low efficient technology use, particularly by saving time for collection of fuelwood, improving working environment and livelihoods

Planet

Replacing fossil fuels by sustainable biofuels in thermal energy applications will mitigate GHG emissions.

Corporates

Provision of low cost, sustainable, carbon-neutral fuels will reduce the energy cost, particularly MSMEs, while contributing to minimize their carbon footprint.

Public sector

The biofuel generated from SFPs will provide low cost, reliable, sustainable and modern fuel for thermal energy applications such as cooking and water boiling in government hospitals and other institutions.

Outcome Risks

Accessibility and availability of land depend on the willingness (based on regulations, incentives and attitudes) of government entities and private sector to partner with the SFP schemes proposed

The outcome would be affected with regulatory barriers in harvesting, transportation and storage of fuelwood. Change in land can affect biodiversity and other factors (eg: reduction in groundwater)

Outcomes may be impacted due to the challenges faced in the mobilization of financial resources for the establishment and management of SFPs.

Lack of experience in new plantation schemes proposed and limited data availability may lead to reduced productivity, particularly in the initial stages of the business.

Gender inequality and/or marginalization risk: The local communities may have capacity gaps for effective engagement in the plantation schemes, thus impacting the potential benefits they could get.

Impact Risks

If targeted land extent and plantation productivity are not achieved, biofuel produced will not be competitive enough to replace the fossil fuels and the dependence on fossil fuels will continue.

Anticipated fuel switching critically depends on relative cost differences of the fuels. The fossil fuel subsidies may affect the financial feasibility of switching to biofuels.

Failure to reach the targets in land extent and its sustainable management will affect attaining national targets in climate change mitigation and LDN and, impact overall environmental sustainability

Gender inequality and/or marginalization risk:Failure to provide access to affordable, sustainable and modern energy, particularly to MSMEs and rural households will hinder social-economic development

Impact Classification

C—Contribute to Solutions

What

SFPs assist production of indigenous, renewable biofuels to replace fossil fuels in ensuring energy security & environment sustainability, while empowering women/marginalized groups.

Risk

Limited land availability & access, regulatory barriers for harvesting, transport, & storage of fuelwood, financing gaps, price volatilities, data gaps and lack of competencies may cause risks to investments in this space.

Contribution

Restoration of degraded land, carbon sequestration and GHG mitigation. Improving livelihoods and empowering women & marginalized groups for national development.

Impact Thesis

SFPs to generate woody biomass for improved biofuel production as a source of indigenous, renewable, clean fuel to replace imported fossil fuels.

Enabling Environment

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Policy Environment

National Energy Policy and Strategies (2019): Supports SFPs with its emphasis on assuring energy security, enhancing self-reliance and the share of indigenous RE resources. Related strategies include establishment of dedicated energy plantations and encouraging commercial availability of biomass (2).

National Climate Change Policy (2003): It refers energy sector through GHG mitigation, where the emphasis is given to (i) explore the potential of clean and RE sources and enhance their production, accessibility and affordability; (ii) economic incentives for less carbon intensive fuels (29).

Updated Nationally Determined Contributions (2021): Under mitigation, fuel-switching to biomass energy, ensuring the sustainable supply for industry is included, while under adaptation, restoration of degraded land is included in both forestry and biodiversity sectors (20).

LDN target under UNCCD (2017): In order to combat land degradation issue, national LDN targets by 2030 and related measures have been defined. One intervention area is the restoration of degraded forests, shrubs and grasslands by enrichment planting (28).SFPs will support in achieving these targets.

National Forestry Policy 1995: It recognizes that home gardens and other agro-forestry systems, and trees on other non-forest lands have a crucial role in supplying timber and biomass resources and provides a supporting framework for increasing fuel wood production (30).

Financial Environment

Though the National Energy Policy and Strategies 2019 states that soft financing will be offered to businesses involved in dedicated energy plantations and other commercial plantations, so far no specific financial incentives have been developed (2).

Sri Lanka Green Finance Taxonomy (2022): It facilitates disclosure of taxonomy-aligned activities and the offering of green finance products, such as loans, bonds, and funds, by market participants including local financial institutions & large corporations. This covers restoration of forest (34).

Regulatory Environment

SLSEA Act No. 35 of 2007: This provides mandate for SLSEA to identify, assess, develop, conserve and manage biomass energy resources including the preparation, maintenance and updating of an inventory of resources indicating, among others, geographical location of sites, and land ownership (31).

SLS Specification for Principle, Criteria and Indicator for Sustainably Produced Fuelwood (2016): This describes the sustainability requirements for the production of fuelwood. It includes a basic traceability for the certified wood through the supply chain, including transport and pre-preparation (32).

Forest (Amendment) Act, No. 65 of 2009: This is an ordinance to consolidate and amend the law relating to conservation, protection and sustainable management of the forest resources and utilization of forest products; to provide for regulation of the transport of timber and forest products (33).

Marketplace Participants

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Private Sector

Private sector: Regional Plantation Companies (RPCs) as investors, land providers and management of SFPs. Private sector-owned RPCs include: Talawakelle Tea Estates PLC, Elpitiya Plantations and Watalwala Plantations

Government

(i) Forest Department (FD), Rubber Research Institute of Sri Lanka (RRISL), and Coconut Cultivation Board (CCB) as land providers and management of SFPs; (ii) Sri Lanka Sustainable Energy Authority (SLSEA) as the facilitator and regulator of the biomass energy sector.

Multilaterals

UNDP, FAO for technical and financial assistances.

Non-Profit

Non-Governmental Organizations (NGO) and Community-Based Organizations (CBO) as partners and maintenance of SFPs.

Public-Private Partnership

Multi-stakeholder partnerships among Government (FD, RRISL, CCB), Private sector RPCs and Local communities/CSOs with resource mobilization and cost/profit sharing.

Target Locations

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country static map
semi-urban

Sri Lanka: Western Province

Selection of the land plots in Western Province for SFPs is based on the land availability and demand centres for fuelwood. Identified lands include those belongs to (i) RRISL in Gampaha and Kalutara districts (Rubber), and (ii) CCB in Kalutara District (Coconut). The province is a demand centre (Industry, Households).
rural

Sri Lanka: North Western Province

Identified lands include those belonging to (i) Forest Department in Puttalam District (degraded forest & buffer zones), and (ii) CCB in Kurunegala and Puttalam Districts (Coconut). North Western Province is a demand centre (Industry, particularly MSMEs; Households).
rural

Sri Lanka: Central Province

Central Province is a fuelwood demand centre (MSMEs and Households particularly in the estate sector). Identified lands include those belongs to (i) FD in Nuwara Eliya District (degraded forest & buffer zones), (ii) RRISL in Matale District (Rubber), and (iii) Tea plantations of RPCs.
rural

Sri Lanka: Sabaragamuwa Province

Sabaragamuwa Province is a demand centre (MSMEs and Households particularly in the estate sector). Identified lands include those belongs to (i) FD and RRISL in Ratnapura and Kegalle Districts (degraded forest & buffer zones, Rubber), (ii) CCI in Kegalle District, and (iii) Tea plantations of RPCs.
rural

Sri Lanka: Southern Province

Southern Provinces a demand centre (MSMEs and Households). Identified lands include those belongs to (i) CCI and RRISL in Galle and Matara Districts (degraded forest & buffer zones, Rubber), (ii) Forest Department in Matara District, and (iii) Tea plantations of RPCs.

References

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