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Photo: Wikimedia Commons

Biomass is widely considered a renewable energy and supply and demand for woody biomass is expected to increase over 250% in the next decade. However, woody biomass is anything but carbon neutral and ecologically sustainable. In fact, biomass combustion burns more CO2 per unit of energy than fossil fuels, further fueling climate change. In order to stop this harmful practice, banks must recognise that woody biomass is not a sustainable energy source and exclude the financing of biomass projects.

As it is considered relatively cheap, wood -particularly wood pellets - are now the dominant form of biomass used in energy generation which is devastating irreplaceable forest ecosystems. In addition to deforestation to produce wood for burning, large forested areas are also being burned or cleared to grow crops as biomass. When natural forests are converted to managed forests or plantations, carbon is assumed to be reabsorbed by forest regrowth at the rate needed to offset emissions from burning. However, studies have shown that carbon stored in the forest floor, which is generally twice that stored in vegetation, is greatly reduced when natural forests are converted to plantation forests. Intensified logging regimes for biomass supply often mean shortened rotation periods meaning, so that the forest never goes back to its regains to the former level of carbon stock. And increase in demand for wood pellets is like to be supplied from tropical, temperate, and boreal forests, posing an increasing global threat to natural forest ecosystems, including those that are highly biodiverse or rich in carbon.

The biomass industry is associated with far-reaching social and health impacts, both where forest biomass is harvested and where it is burned, including conflicts over land rights and forest resources. In addition, demand for woody biomass contributes to land grabbing, which threatens the rights, interests, and livelihoods of Indigenous Peoples and local communities. Forests play an important role in protecting local communities from the impacts of climate change and provide numerous ecosystem services, but deforestation causes air pollution and an increased risk of respiratory and other diseases. Biomass production and burning facilities are often located in socioeconomically disadvantaged areas where local communities are particularly vulnerable to the impacts of climate change.

Biomass energy is not carbon neutral. Large amounts of greenhouse gases are released into the atmosphere when forest biomass is burned. It also has negative impacts on the biosequestration of CO2, as deforested areas can no longer store CO2 thus having the same effect as additional CO2 emissions. Measured at the point of combustion in power plants, carbon emissions from burning wood are 3%% higher than from coal. The claim that biomass is a sustainable energy source is based on two false assumptions. First, it assumes that forest biomass will grow back and that the carbon emitted during combustion can be recaptured by regrowing forests. However, this does not consider the time dimension of how long it takes for forests to regrow. Secondly, the EU Renewable Energy Directive's methodology does not include emissions from biomass combustion when calculating full life cycle emissions, which is a fatal flaw. When all carbon emissions are included, studies show that the GHG intensity of biomass from natural timberland can be as much as 4 times that of coal over a 40-year period. Studies show that even bioenergy sourced from burning forest residues results in such a high carbon debt that it cannot contribute to the goal of the Paris Agreement to limit warming to 1.5 or even 2 degrees.

Biomass production is associated with high rates of deforestation as well as monocultures of various crops. There is a growing body of evidence that shows the connection between deforestation and an increasing risk for disease outbreaks and pandemics. For example,monocultures like eucalyptus plantations reduce biodiversity leaving species like rats and mosquitoes, which are more likely to spread dangerous pathogens, to thrive. This biodiversity decline results in a loss of natural disease regulation and poses a risk for human, animal and environmental health. Studies have also shown that viruses are more likely to transfer to humans when they live in disturbed ecosystems like cleared forests. Finally deforestation is also an important driver of climate change which itself increases the risk for future pandemics.

Role of banks

Banks play a role in propping up the forest biomass sector through their finance and investments in companies operating forest biomass power plants, in particular companies looking to convert power plants from coal to biomass. Many banks finance biomass companies or projects as a renewable energy source without differentiating between practices within biomass supply chains and fail to consider the climate impacts that woody biomass has. Large-scale forest biomass causes harm to the climate, environment, people and cannot be considered as a clean energy source and financial institutions investing in the sector could be open to a range of reputational and financial risks. Banks' policies often cite compliance with international sustainability standards to protect and monitor forest carbon stocks in supply chains, such as the Forestry Stewardship Council certification. However, these standards need to be strengthened and banks could play a role in ensuring these standards are improved.


Target Dodgy Deals

target

Company: Arauco Chile

Biomass Electric Power Generation | Pulp, Paper and Paperboard Mills

Related Dodgy Deals

Projects

active

Pego Power Station Portugal

Biomass Electric Power Generation
active

RWE biomass conversion project Netherlands

Biomass Electric Power Generation
There are no projects active for Banks and biomass now.
on record

Maizuru Palm Oil Power Plant Japan

Agriculture for Biofuels | Agriculture for Palm Oil | Biomass Electric Power Generation
on record

MGT Teesside biomass power station United Kingdom

Biomass Electric Power Generation

Companies

target

Arauco Chile

Biomass Electric Power Generation | Pulp, Paper and Paperboard Mills
active

Drax Group United Kingdom

Biomass Electric Power Generation
active

ENGIE France

Biomass Electric Power Generation | Coal Electric Power Generation | Hydroelectric Power Generation
active

RWE Germany

Biomass Electric Power Generation | Coal Electric Power Generation | Coal Mining | Commodities Trading | Nuclear Electric Power Generation | Solar Electric Power Generation | Wind Electric Power Generation
active

Vattenfall Sweden

Biomass Electric Power Generation | Coal Electric Power Generation | Coal Mining | Hydroelectric Power Generation | Mining | Nuclear Electric Power Generation | Solar Electric Power Generation | Wind Electric Power Generation
There are no companies active for Banks and biomass now.
on record

EDF France

Biomass Electric Power Generation | Hydroelectric Power Generation | Nuclear Electric Power Generation | Solar Electric Power Generation | Wind Electric Power Generation
on record

Eletrobras Brazil

Biomass Electric Power Generation | Coal Electric Power Generation | Electric Power Distribution | Hydroelectric Power Generation | Nuclear Electric Power Generation | Solar Electric Power Generation | Wind Electric Power Generation
on record

Energa Group Poland

Biomass Electric Power Generation | Coal Electric Power Generation | Electric Power Distribution | Hydroelectric Power Generation | Wind Electric Power Generation

News

| |
Type:
Year:
blog
external news
our news

EU bank hands out billions to companies complicit in burning fossil fuels

The European Investment Bank (EIB) has pumped billions of euros into polluting fossil fuel companies over the past two years despite talking up its climate credentials, new research by Counter Balance and CEE Bankwatch Network reveals.
2022-06-15 | Counter Balance
blog
external news
our news

Barclays is big on beef and burning

At Barclays AGM campaigners will be calling on the bank to stop financing big meat and burning fossil fuels and forests for energy
2022-05-04 | Hannah Greep – BankTrack
blog
external news
our news

Biomass Industry Pushes Back Against Europe’s Plans To Protect Woodlands

Leaked documents show UK power plant Drax is at the heart of lobbying efforts to dilute EU biodiversity rules that could limit its supply of wood.
2022-04-12 | DeSmog
blog
external news
our news

BC’s Chief Forester Jumps to Multinational Wood Pellet Corporation

Diane Nicholls takes a senior role in a controversial industry she helped regulate. And promote.
2022-04-07 | The Tyee
blog
external news
our news

Asian Development Bank: Don’t finance dirty biomass!

2021-09-17 | Global Forest Coalition
blog
external news
our news

Brazil's unprecedented biomass power plant

2021-04-20 | Bnamericas
blog
external news
our news

Warning issued to investors: Forest biomass is risky business

Briefing by environmental groups highlights serious financial, legal and reputational risks
2019-05-02 | Biofuelwatch, Global Forest Coalition, Mandy Haggith – Environmental Paper Network

Documents

Type:
Year:
ngo documents
2022-06-27 00:00:00

Conflict Plantations

Chapter 3: Stolen lands and fading forests in Chile
2022-06-27 00:00:00 | Environmental Paper Network (EPN)
other documents
2021-12-10 00:00:00

Wet Natuurbescherming, RWE Generation NL

2021-12-10 00:00:00 | Mobilisation for the environment (MOB)
our publications
2022-01-20 00:00:00

Signez l’appel mondial : Stop au financement bancaire des énergies fossiles

Traduction : L'appel mondial
2022-01-20 00:00:00 | BankTrack
ngo documents
2021-09-27 00:00:00

SIX PROBLEMS WITH BECCS

2021-09-27 00:00:00 | Fern
ngo documents
2021-04-12 00:00:00

How bioenergy harms biodiversity: the facts

2021-04-12 00:00:00 | Fern
ngo documents
2021-04-12 00:00:00

Open Letter to the Commission Asking for Removal of Forestry and Bioenergy from the Current Climate Taxonomy Delegated Act

2021-04-12 00:00:00 | WWF Europe
other documents
2021-03-19 00:00:00

A statement by scientists and economists on BECCS from forest biomass

2021-03-19 00:00:00
ngo documents
2021-03-11 00:00:00

Destruction: certified

2021-03-11 00:00:00 | Greenpeace
bank documents
2021-03-10 00:00:00

Triodos Bank's response to NGO letter about biomass

2021-03-10 00:00:00 | Triodos Bank
other documents
2021-01-26 00:00:00

The use of woody biomass for energy production in the EU

2021-01-26 00:00:00 | EU Commission Joint Research Centre
ngo documents
2021-01-19 00:00:00

Biomass Energy, Forests and Climate Library

2021-01-19 00:00:00 | Environmental Paper Network
ngo documents
2020-12-21 00:00:00

NGO Joint Statement - Stop Biomass Power Generation with Large-scale Fuel Import

2020-12-21 00:00:00 | Friends of the Earth Japan
ngo documents
2020-12-17 00:00:00

Hidden inside a wood pellet

Intensive logging impacts in Estonian and Latvian forests
2020-12-17 00:00:00 | Estonian Fund for Nature (ELF) and Latvian Ornithological Society (LOB)

Links

Global Markets for Biomass Energy are Devastating U.S. Forests

https://media.dogwoodalliance.org/wp-content/uploads/2019/07/Biomass-Investigation-Booklet-2019.pdf

Mapping the Biomass Industry

The two maps below show the current extent and planned expansion of the biomass industry across the globe. The data on these maps has been collected from openly available sources by EPN member groups worldwide. This is a constant work in progress and the maps are updated regularly as new information becomes available.

https://environmentalpaper.org/tools-and-resources/mapping-bioenergy/

Netherlands campaign against new biomass plant

https://www.biofuelwatch.org.uk/2021/netherlands-campaign-against-new-biomass-plant/

Southeast US wood pellet plants exporting to Europe

https://www.southernenvironment.org/wp-content/uploads/2022/04/SELC_WoodPelletExportMap_2022_0414_maptable.pdf
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