This policy report assesses the role of bioenergy for the EU’s renewable energy targets, and how to use biomass most effectively to achieve competing energy, climate, and nature objectives, and contribute to the EU net-zero economy transition.
It is aimed at policy makers and investors to inform a holistic whole-of-government approach to biomass use for the EU transition to a net-zero economy. It also points out implications for financial market actors, as bioenergy use is a growing environmental issue, at the nexus of PRI’s climate and nature policy work.
Bioenergy provides almost 60% of the EU’s renewable energy share , more than solar and wind energy combined. Biomass will continue to play an important role for EU climate and renewable energy targets for 2030 and climate neutrality by 2050. But the reliance on biomass for energy, in particular woody biomass, also contributes to substantial policy risks – and related risks for net zero transition investments – for climate mitigation, as well as adaptation, nature restoration, biodiversity, and the circular bioeconomy.
A holistic governance framework needs to prioritise the use of biomass across interrelated EU 2030 objectives. This means a) shifting from ‘biomass for energy’ to nature-based climate solutions ; b) consistent price signals for emissions from bioenergy; and c) a coherent governance framework for biomass.
Recommendations for policy makers include:
- Provide a cap on biomass for energy in the Renewable Energy Directive (RED) III
- Prioritise biomass for carbon sinks and Land Use, Land Use Change and Forestry (LULUCF) objectives
- Remove financial support and incentives for primary biomass for energy
- Harmonise data collection, monitoring, and greenhouse gas accounting for biomass use for energy
- Apply the cascading principle to ensure high-value biomass use, including in-situ benefits
- Use national Energy and Climate Plans (NECPs) to integrate planning and implementation of LULUCF objectives.
Download the EU bioenergy policy report below.
