The European Parliament has proposed to phase out direct and indirect subsidies that compensate for energy generated from the combustion of primary woody biomass (unprocessed wood/roundwood: the definition of primary woody biomass is provided in the summary below)

– Exceptions are provided, as primary woody biomass does not include:

woody biomass obtained from sustainable forest fire prevention measures in high-risk areas, woody biomass obtained from road safety measures, and woody biomass obtained from forests affected by natural disasters, active pests or diseases in order to prevent their spread, while minimising wood extraction and protecting biodiversity, which results in more diverse and resilient forests, and where the extraction is based on Commission guidelines

– The Parliament also proposed limiting the eligibility of this energy to current levels so that it can be counted towards Member States' EU renewable energy targets (the Environment Committee proposed excluding it entirely, but a compromise was reached in the plenary session to instead cap it at the average usage between 2017 and 2022) and agreed on the principle that by 2030, this cap will be “phased down” (note: “phase down” differs from “phase out”: the target for this phase-down still depends on the Commission’s impact assessment, which will be carried out three years after the transposition of the directive – Member States will have until 31 December 2023 to do this).

– Secondary woody biomass (defined as forest industry by-products, bark, and post-consumer recovered wood) is not mentioned in the text, therefore it continues to count towards EU renewable energy targets and remains eligible for subsidies.

– Biomass fuels must comply with sustainability and greenhouse gas emission reduction criteria regarding solid biomass fuels in installations producing electricity, heating, and cooling with a total nominal thermal input of 7.5 MW or more (previously 20 MW).

– To reduce the administrative burden on producers of renewable fuels and recycled carbon fuels and on Member States, Member States must establish a simplified verification mechanism for installations with a capacity between 5 and 20 MW.

– The European Parliament has confirmed its support for the European Commission’s proposal to extend to forest biomass the exclusion from RED incentives of wood sourced from areas with high biodiversity (particularly primary and old-growth forests) and high-carbon-stock lands (e.g., wetlands). (RED – the Renewable Energy Directive (2009/28/EC) was revised in 2018, but the Commission proposed another revision in 2021 to better align it with increasing climate targets. The directive sets a common target – currently 32% – for renewable energy to reach a specific share of EU energy consumption by 2030. The proposed revision and the REPowerEU plan submitted in May 2022 propose further development of this target to accelerate the use of renewable energy in the EU.)

– According to the cascading principle, woody biomass should be used according to its highest economic and environmental value-added, in the following order of priority:

1) wood products,

2) lifetime extension,

3) reuse,

4) recycling,

5) bioenergy,

6) disposal.

If the use of woody biomass is not economically viable or ecologically suitable, energy recovery helps to reduce energy production from non-renewable sources. On the other hand, in determining the future impact of the cascading principle, it is necessary to recognise the national specificities by which Member States are guided when developing their support schemes.

– No later than one year after the entry into force of this amending directive, the Commission shall adopt an implementing act on how to apply the cascading principle to forest biomass, particularly on how to minimise the use of quality roundwood for energy production, focusing on support schemes and giving due consideration to the highest economic and environmental value-added and national specificities, including forest fire prevention and sanitary felling.

Summary of relevant key requirements

Definition of primary woody biomass

“Primary woody biomass” is all roundwood felled or otherwise harvested and removed. It includes all wood obtained from harvesting, i.e., wood removed from the forest, including naturally dead wood and wood harvested from felling, as well as wood obtained from logging. It includes all wood obtained with or without bark, including wood obtained as roundwood, split, roughly shaped, or otherwise, including, for example, branches, roots, stumps, and shrubs (if they are felled), as well as wood that is unprocessed or in a rounded form.

This does not apply to woody biomass obtained from sustainable forest fire prevention measures in high-risk areas, woody biomass obtained from road safety measures, and woody biomass obtained from forests affected by natural disasters, active pests or diseases to prevent their spread, while minimising wood extraction and protecting biodiversity, resulting in forests becoming more diverse and resilient, and where the extraction is based on Commission guidelines.

Renewable energy production has a strong local dimension

It is therefore important that Member States fully involve local and regional authorities in the planning and implementation of national climate actions, ensure direct access to funding, and monitor the progress of the implementation of the adopted measures. Where necessary, Member States should include local and regional contributions in their national energy and climate plans.

There is increasing recognition of the need to align bioenergy policy with the cascading principle for biomass use to ensure fair access to the biomass feedstock market for the development of innovative, high-value-added bio-based solutions and a sustainable circular bioeconomy. Therefore, when designing bioenergy support schemes, Member States should take into account the available sustainable biomass supply for energy and non-energy use, as well as the preservation of national forest carbon sinks and ecosystem health, biodiversity protection, and circular economy and biomass cascading principles. However, they should be able to grant support for energy production from stumps or roots if they are residues resulting from operations whose primary purpose is nature conservation and landscape management, such as from roadsides. In any case, Member States should avoid promoting the use of quality roundwood for energy, except in well-defined circumstances, such as fire prevention and sanitary felling. According to the cascading principle, woody biomass should be used according to its highest economic and environmental value-added, in the following order of priority:

1) wood products,

2) lifetime extension,

3) reuse,

4) recycling,

5) bioenergy,

6) disposal.

If the use of woody biomass is not economically viable or ecologically suitable, energy recovery helps to reduce energy production from non-renewable sources. Therefore, Member States' support schemes for bioenergy should be directed towards feedstocks for which market competition with material sectors is low and whose extraction is considered positive for both the climate and biodiversity, in order to avoid negative incentives to use unsustainable types of bioenergy, as noted in the JRC (Joint Research Centre) report “The use of woody biomass for energy production in the EU”. On the other hand, in determining the future impact of the cascading principle, it is necessary to recognise the national specificities by which Member States are guided when developing their support schemes.

Waste, wood residues

Waste prevention, reuse, and recycling must be the priority option.

Member States should avoid creating support schemes that contradict waste treatment goals and that lead to the inefficient use of recyclable waste. Furthermore, to ensure more efficient use of bioenergy, from 2026, Member States should no longer provide support solely for electricity-only installations, unless the installations are located in regions with a special status regarding the transition from fossil fuels, if they use carbon capture and storage, or if the installations cannot be converted into high-efficiency cogeneration plants in exceptionally justified cases following Commission approval.

To reduce the administrative burden on producers of renewable fuels and recycled carbon fuels and on Member States, if the Commission has recognised via an implementing act that voluntary or national schemes provide evidence or accurate data on compliance with sustainability and greenhouse gas emission reduction criteria, as well as other requirements set out in this directive, Member States should recognise the results of certificates issued by such schemes within the scope of the Commission’s recognition. To reduce the burden on small installations, Member States should establish a simplified verification mechanism for installations with a capacity between 5 and 20 MW.

– Member States shall not grant support for:

i) the use of sawlogs, veneer logs, stumps, and roots for energy production;

(ii) energy production from the combustion of wood residues if the rules and requirements for separate waste collection and waste recycling hierarchies provided for in legislation on waste management and Directive 2008/98/EC are not met;

– No later than one year after the entry into force of this Amending Directive, the Commission shall adopt an implementing act on how to apply the cascading principle to forest biomass, particularly on how to minimise the use of quality roundwood for energy production, focusing on support schemes and giving due consideration to the highest economic and environmental value-added and national specificities, including forest fire prevention and sanitary felling.

– By 2026, the Commission shall submit a report on the impact of Member States' biomass support schemes, including on biodiversity, climate, the environment, and potential market distortions, and shall evaluate forest biomass support schemes.

– Energy generated from solid biomass fuels shall not count towards meeting renewable energy obligations and eligibility for financial support if sourced from primary woody biomass. In order to contribute to the renewable energy target, the share of energy from solid biomass fuels obtained from primary woody biomass shall not exceed the average total energy consumption of such fuels in 2017.

– Biomass fuels must comply with sustainability and greenhouse gas emission reduction criteria regarding solid biomass fuels in installations producing electricity, heating, and cooling with a total nominal thermal input of 7.5 MW or more (previously 20 MW);

– By 2026, the Commission shall submit a report on the impact of Member States' biomass support schemes, including on biodiversity, climate, the environment, and potential market distortions, and shall evaluate forest biomass support schemes.

– Energy generated from solid biomass fuels shall not count towards meeting renewable energy obligations and eligibility for financial support if sourced from primary woody biomass. In order to contribute to the renewable energy target, the share of energy from solid biomass fuels obtained from primary woody biomass shall not exceed the average total energy consumption of such fuels in 2017.

– Biomass fuels must comply with sustainability and greenhouse gas emission reduction criteria regarding solid biomass fuels in installations producing electricity, heating, and cooling with a total nominal thermal input of 7.5 MW or more (previously 20 MW);

– Biofuels, bioliquids, and biomass fuels produced from agricultural biomass count towards European Union renewable energy targets when measuring compliance with renewable energy obligations; eligibility for financial support from primary woody biomass must not be obtained from feedstocks sourced from land with high biodiversity value, i.e., land that had one of the following statuses in or after January 2008, regardless of whether the land still has such status or not:

(a) primary and old-growth forests as well as other wooded land, i.e., forest and other wooded land of native species where there are no clearly visible signs of human activity and ecological processes are not significantly disturbed;

(b) forest and other wooded land with high biodiversity that is species-rich and not degraded and has been identified by the relevant competent authority as an area with high biodiversity, unless evidence is provided that the production of the raw material did not interfere with those nature protection purposes;

(c) Designated areas which are:

(i) designated by law or by the relevant competent authority for nature protection;

(ii) for the protection of rare, threatened, or endangered ecosystems or species recognised by international agreements or included in lists drawn up by intergovernmental organisations or the International Union for Conservation of Nature, provided they are recognised in accordance with the first subparagraph of Article 30(4), unless evidence is provided that the production of the raw material did not interfere with those nature protection purposes;

– Biofuels, bioliquids, and biomass fuels produced from agricultural biomass which are counted towards Union renewable energy targets; measuring compliance with renewable energy obligations; eligibility for financial support from primary woody biomass must not be produced from feedstocks sourced from land with high biodiversity value, i.e., land that had one of the following statuses in or after January 2008, or from land with high carbon stock, i.e., land that had one of the following statuses in January 2008 but no longer has such status:

(a) wetlands, i.e., land covered with or saturated by water, permanently or for a significant part of the year;

(b) continuously forested areas, i.e., land spanning more than one hectare with trees higher than five metres and a canopy cover of more than 30%, or trees that are able to reach these thresholds in situ.

– Harvesting must be carried out while ensuring the maintenance of soil quality and biodiversity, with the aim of preventing negative impacts, in such a way as to avoid the harvesting of stumps and roots unsuitable for use, by employing sustainable forest management practices, avoiding the degradation of primary and old-growth forests or their conversion into plantation forests, as well as avoiding logging on sensitive soils;

– Clear-felling is not permitted unless it provides favourable and suitable ecosystem conditions, ensures rules for the extraction of deadwood suitable for local and ecological conditions, and ensures requirements to use logging systems that minimise impacts on soil quality, including soil compaction, as well as on biodiversity elements and habitats;

– Biofuels, bioliquids, and biomass fuels produced from forest biomass must not exceed the national maximum volume for forest biomass use that is consistent with the Member State’s targets for increasing carbon sink capacity;

– By December 2024, the Commission shall submit a comprehensive impact assessment of the overall and cumulative impact of the “fit for 55” package, including this directive.