In Finland, forests are not grown specifically for energy production. Wood used for energy is a by-product of logging, forest management, and the wood industry. According to experts, the directive on renewable energy developed by the EU will have serious consequences for both the North European energy economy and forestry.
In a recent vote, the European Parliament approved restrictions on the use of energy wood sourced directly from forests. At the same time, forest-sourced energy is indispensable for a country like Finland, which has the largest forest area in Europe. “If we were to suddenly stop using bioenergy in Finland, we would soon be freezing,” says Kyösti Turkia (Kyösti Turkia), a bioenergy and bioeconomy expert at the Finnish Forest Centre.
Last week, the European Parliament voted that energy wood sourced directly from the forest, such as logging residues, will be considered renewable if its share in total energy consumption remains at the 2017-2022 level. Above this level, its use, known as primary woody energy, will not be considered renewable and will not be eligible for production subsidies. The vote was the Parliament's position regarding the draft renewable energy directive, but the actual text may still be amended during final discussions between the Commission and member states. The directive will not affect the use of stoves used for heating private homes, nor the use of saunas, which are important to Finns.
Heating costs could rise
Both K. Turkia and Jaana Kaipainen (Jaana Kaipainen), a senior EU expert at the Finnish Forest Centre, believe that the EU forest energy directive could further increase heating costs for private homes.
“The directive is being prepared at an extremely unfavourable moment for domestic energy production,” says K. Turkia, referring to the sharp rise in energy prices caused by Russia's attack on Ukraine. “If wood is subject to an emissions tax, the directive will likely lead to an increase in energy prices,” he continues. Jaana Kaipainen believes that the EU’s intentions will increase housing costs for the population. “Energy prices are expected to rise, and this will certainly also affect district heating prices. I assume that in the current situation, every country is doing its best to find the means to implement ambitious climate and energy policies while maintaining energy prices at a level that would not be too harsh for the average citizen,” notes J. Kaipainen. Estimates are more complex because currently, no one knows whether the use of wood for energy production will actually be included in the emissions trading system.
The Parliament's position on the directive would define some Finnish forestry by-products as unsustainable bioenergy use. These by-products include small-diameter wood obtained from thinning young stands, logging residues from regeneration sites, and stumps. They could still be used for energy, but the portion exceeding the set maximum volume would not be considered renewable and would not be eligible for subsidies. More than 70% of renewable energy in Finland is currently produced using wood fuel.
Harder to replace fossil fuels
According to expert K. Turkia, the proposed directive would weaken the prerequisites for local energy production and complicate investment planning in the energy sector. Forest fuel accounts for a significant portion (40%) of the fuel used in district heating. Emissions trading applies to plants with a minimum capacity of 20 megawatts, and plants of this size consume 70% of the forest chips used annually in Finland.
K. Turkia believes that the European Union’s plans are in conflict with Finland’s updated climate and energy strategy. The strategy aims to limit the use of forest chips by one-fifth. It is being used to replace fossil fuels. The increase would be 2-3 million cubic metres, and according to the EU's new interpretation, after 2030, this would not be considered renewable energy. “Currently, forest owners are being encouraged to start selling wood, but at the same time, EU actions are hindering this. For example, what would happen to investments in terminals and logistics if they were not eligible for subsidies?” asks Kyösti Turkia.
Forests are not being felled for energy production
In Finland, forest chips are mainly used from wood that cannot be used in industrial wood processing. In Finland, forests are not felled to be burnt for energy production.
Jaana Kaipainen believes that forest industry stakeholders and experts largely agree that even in the future, timber suitable for processing should primarily be used for higher value-added purposes. Burning wood that has another profitable application is and must continue to be avoided. “To achieve this, we have several national strategies and programmes, for example, for promoting the bioeconomy”, J. Kaipainen points out. She also emphasises that forest management by-products and other small-diameter wood not suitable for other uses can be used for energy to support the gradual phasing out of coal and peat.
More EU bureaucracy
Kyösti Turkia believes that the directive will create more bureaucracy. He would like to know how the proportions of sustainable and unsustainable energy production will be calculated.
“Let’s assume we want to invest in a new heating plant. How would sustainable and unsustainable energy be proportionally divided among users? What share would be sustainable and what would be unsustainable use? If forest energy raw materials were classified as renewable and non-renewable, it would complicate the use of wood chips,” says K. Turkia.
K. Turkia finds it problematic that the directive applies to forest energy use across the entire European Union and does not take into account the characteristics of forest management in the northern part of the EU. “In its current draft, the directive is not suitable for Finnish forest management. For sustainable forestry, the use of forest bioenergy is a positive thing. It ensures that young stands are properly maintained and trees more quickly acquire the strength needed for the wood used in the wood industry,” explains K. Turkia. Moreover, if logging residues are not removed from the forest, they will decompose naturally, thus releasing carbon dioxide into the atmosphere.
Energy wood harvesting promotes forest management
Jaana Kaipainen believes that the Commission's proposal for the revised directive was clearer and more constructive than the Parliament's position. “Timber obtained before commercial thinning was defined as non-marketable wood. Harvesting energy wood has been important for increasing interest in forest management, and this has been one of the ways to encourage private forest owners to maintain their forests,” believes J. Kaipainen.
J. Kaipainen thinks that the results of the Parliament's vote stem from good intentions, although they seem to have been lost in practical implementation. “When decisions are prepared and adopted, their impact on member states must be understood from the very beginning,” says Kaipainen. She also reminds us that one must be patient while awaiting the final outcome of the discussions and the actual directive. In any case, the discussions will be useful. “During the discussions, the impact of all options should be evaluated and thought given to the extent to which they can be implemented at the national level,” notes Jaana Kaipainen.