Burning Billions for Biomass

The case for cutting subsidies,
not forests

Joint report by Environmental Paper Network, Biofuelwatch, Solutions for Our Climate, Rachel Carson Council, Global Environment Facility, Dogwood Alliance, NRDC, Comité Schone Lucht, Pracownia na rzecz Wszystkich Istot, Pivot Point

Click here to read the report

Executive Summary

Subsidies for renewable energy are valuable tools for the essential transition away from climate-destroying fossil fuels. Unfortunately, however, a large portion of those subsidies, amounting to many billions of dollars globally, have been misdirected to support burning wood (pellets and chips) for electricity and heat, alongside cleaner renewables like wind and solar. The effect has been to support the expansion of a biomass industry that is driving deforestation and forest degradation, polluting communities, and releasing more CO₂ than the fossil fuels it is intended to replace.

Biomass subsidies come in many forms. Some offer support to producers of biomass power, heat or combined heat and power. Some oblige utilities and consumers to purchase biomass power. Biomass power can be subsidised directly through payments, grants, tax incentives, etc., or indirectly, such as when carbon markets ignore the emissions from biomass, giving it a free pass.

Directing subsidies to biomass heat and power means less support is available for cleaner renewables like wind and solar and for developing energy efficiencies; far better uses for limited funds. This “opportunity cost” has serious economic consequences, since biomass power has remained very expensive, while the costs for wind and solar have steadily declined with technological improvements. Many biomass facilities are not economically viable, even with subsidies. Taxpayers are generally forced to carry the burden of that expense.

This report offers a series of case studies on the subsidies provided for biomass in various countries. These case studies show us that policies offering subsidies for biomass power and heat often face strong and growing opposition and therefore a high degree of instability that should give investors pause. Subsidies can have profound effects on the economy and environment. They can be helpful in developing new industries and technologies, or they can be drivers of social and environmental damage.

Subsidies supporting biomass, facilitate the expansion of an  industry that undermines urgently necessary efforts to reduce emissions, pollutes communities and degrades forests and biodiversity.

The Biomass Action Network, a coalition of 200+ groups in 70 countries, therefore demands that subsidy support for biomass be eliminated and redirected to better uses.

The case studies presented in this report provide insights into the subsidies offered for biomass in various countries, and offer some intriguing analysis of how those subsidy supports and policies have changed over time. Each region has a unique “story” to tell about how biomass subsidies have evolved and reflects on the lessons to be learned.