Catanoso Reports: Controversy Continues for Wood Pellet Firms
“Forest advocates accuse EU energy firm of Dutch biomass certification fraud”
The Dutch Prosecution Service is weighing criminal action against German-based energy company RWE for claims made about its wood pellet imports. According to reporting from Sabin Center Board Member Justin Catanoso, RWE claimed its imports were sourced entirely from sawmill waste, rather than whole trees. But forest advocates allege that those wood pellets come from whole trees. Wood pellets sourced entirely from waste receive significant subsidies and avoid more stringent certification processes.
The Biomass Boom
EU nations embraced forest biomass energy following the 1997 Kyoto Protocol, which treated wood burning as a renewable energy source. Replacing coal with forest biomass allowed nations to stay on track with their commitments to phase out coal by 2030. The associated subsidies offered to forest biomass helped to spur a multibillion-dollar industry, one that currently provides 60% of the EU’s “renewable” energy.
Despite scientific studies countering sustainability claims, the forest biomass industry continues to soar. Energy companies like RWE insist that sustainable biomass is climate neutral and EU nations, eager to bolster renewable energy claim, continue to offer sustainability certifications and subsidies.
“The difficulty with certification schemes is that they are massively weighted toward wanting to certify this stuff [forest biomass] as sustainable because it’s convenient to do so. It’s convenient for industry and it’s convenient for governments. But very rarely is any actual certification happening in actual forests.”
— Matt Williams, NRDC Forest Advocate
Those certification processes typically rely on computer modeling, rather than physical inspection. And self-certification by the importers is sufficient under many frameworks. Now that certification scheme is under threat, thanks to forest advocates and the Dutch government’s National Environmental Crime Team.
Read on to learn about the complex legal and economic dynamics around forest biomass and the potential outcomes of this investigation.