Green Transition Denmark to Danish Energy: CO2 tax on biomass is necessary

17. December 2021
It is necessary to put a price on CO2 emissions from burning wood. Biomass is not a good alternative to fossil fuels, write Katrine Busk and Annika Lund Gade.

The following debate paper was published in Altinget Forsyning on 17 December 2021.

Dansk Energi's branch manager for renewable energy, Kristine Grunnet, wrote in a debate paper in the Alting on 3 November, that Concito and De Radikale are wrong when they want to impose a CO2 tax on biomass, because according to Dansk Energi, sustainable biomass is necessary to provide a stable electricity and heat supply.

Green Transition Denmark supports Concito and De Radikale with regard to a tax on biomass. The use of biomass is not such a fantastic alternative to fossil fuels, as Kristine Grunnet writes.

Kristine Grunnet writes that it is primarily residual wood and by-products from timber production that are used in Danish heating plants, and that it makes sense to use residual wood as fuel, because otherwise it would just rot in the forests.

No certification scheme can ensure sustainable consumption of wood biomass

Katrine Busk and Annika Lund Gade, intern and agricultural and energy adviser at the Green Transition Denmark

But it is not true that residual wood can only be used for fuel. In a report from 2020 by the EU's joint research centre, JRC, it appears that much of the residual wood that ends up in, for example, wood pellets, could have done great good in the forests. It supplies nourishment to the soil and is habitat for many animal and plant species.

The energy industry's definition of residual wood is thus defined from a market perspective as wood that cannot be sold for other purposes, but does not relate to the great value it has for biodiversity. And from a climate perspective, burning wood biomass, residual wood or not, will always lead to an immediate release of CO2 into the atmosphere. If, on the other hand, it was left in the forests, the CO2 would be released over time.

Certification does not equal sustainability
Kristine Grunnet writes that all biomass used in the energy sector is sustainable.

According to the new Danish legal requirements for biomass from forests, which came into force on 30 June 2021, biomass from forests means biomass that is certified with an approved scheme from either FSC, PEFC or SBP. Unfortunately, certifications are not a guarantee that the use of biomass is sustainable.

The wood biomass that continues to be used for energy until it is phased out must be residual products

Katrine Busk and Annika Lund Gade, intern and agricultural and energy adviser at the Green Transition Denmark

If you look at a country like Estonia, which exports the majority of its wood pellets to Denmark, Estonia's forests currently store more CO2 than the country emits.

But that changes from 2031, when the country is estimated to become a net emitter of carbon. This is due, among other things, to intensive harvesting of the forests.

Subsequently, new trees are planted, but it takes decades before the newly planted forest absorbs the same amount of CO2 as the forest that was felled.

However, you can buy SBP-certified wood pellets from Estonia without any problems, because SBP estimates that in the long run, i.e. after 2040, Estonia will start storing carbon again when the trees have grown large. But we are in the middle of a climate crisis and must reduce our emissions as soon as possible. 

According to SBP, they guarantee legal and sustainable wood biomass, but Estonia received a subpoena from the EU Commission in June. This has happened against the background of a change in Estonian legislation that leads to increased logging in Natura 2000 areas, which are protected forest areas with high conservation value. This is an example of how certification does not equate to sustainability.

Limit both imports and consumption
The import of wood biomass can be limited by phasing out the use of wood biomass in the energy sector as soon as possible.

During a transition period, Danish residual wood can be used for the existing biomass plants. But in the long term, we need to use more residual wood for building materials, where it will act as a carbon store.

No certification scheme can ensure sustainable consumption of wood biomass. Certifications are a tool to promote sustainable timber production.

But the arrangements relate neither to total, global consumption nor to the climate effects of burning wood biomass. Only legislation can limit the global demand for biomass for energy purposes.

Green Transition Denmark therefore believes that a CO2 tax on biomass is necessary. It is the most effective means of limiting the consumption of wood biomass and doing away with the competition-distorting tax exemption that has so far given the burning of wood biomass an inappropriate advantage in the competition with real renewable heating technologies, such as heat pumps and heat storage.

The wood biomass that continues to be used for energy before it is phased out must be residual products that, in addition to low commercial value, do not have much value for biodiversity or as a carbon store in the forests.

For further information