Forest Biomass Management in Europe: Data, Sustainability, and Policy Implications

Forest biomass has long been considered a cornerstone of Europe’s renewable energy mix. Yet, as the climate crisis intensifies and biodiversity concerns rise, the way Europe manages its forests for energy has become one of the most contested issues in EU energy policy.

The Bioenergy Europe Statistical Report 2024 (SR24) provides valuable insights into the scale and dynamics of forest biomass use, while new legislation under the Renewable Energy Directive III (RED III) redefines what “sustainable biomass” actually means. Together, these forces are reshaping investment, regulation, and the very legitimacy of forest-based energy in Europe.


The Scale of Forest Biomass in Europe

According to SR24, the EU remains the largest producer and consumer of wood pellets, with 20.6 million tonnes produced in 2023 and 22.0 million tonnes consumed. Most of this volume comes from forest-based feedstocks – residues, thinnings, and, to a smaller but controversial extent, roundwood.

  • Residential heating: countries like Italy, Germany, and France rely heavily on forest biomass for household stoves and boilers.
  • Industrial power generation: the Netherlands, Denmark, and Finland use large volumes of imported and domestic pellets.
  • Emerging uses: combined heat and power (CHP) plants, district heating networks, and, increasingly, co-firing with BECCS (Bioenergy with Carbon Capture and Storage).

Policy Context: From Expansion to Restriction

The EU’s RED III (Directive (EU) 2023/2413) fundamentally shifts biomass policy:

  • No subsidies for primary forest biomass: cutting support for feedstocks that pose high biodiversity risks.
  • Mandatory sustainability criteria: stricter carbon accounting, ensuring that biomass delivers verifiable GHG savings.
  • Chain-of-custody obligations: operators must document the origin of feedstocks along the supply chain.
  • Priority for residues and wastes: encouraging the use of sawmill by-products, thinnings, and logging residues.

These rules mark a transition from a quantity-driven expansion to a quality-driven governance model.


Sustainability Concerns

  1. Carbon accounting: Burning forest biomass releases CO₂ instantly, while regrowth takes decades. For 2030 climate targets, this time lag is problematic.
  2. Biodiversity: Logging in sensitive areas undermines the EU’s Biodiversity Strategy 2030, which seeks to protect at least 30% of land.
  3. Land use competition: Biomass competes with timber markets, conservation goals, and carbon sequestration needs.

SR24 shows that while residues remain the dominant source, the use of roundwood for energy persists in several Member States, raising legitimacy questions.


Trends & Future Outlook

  • Declining EU demand: Pellet consumption fell -3.3% in 2023, reflecting tighter rules and weaker subsidies.
  • Shift to residues & wastes: Only feedstocks with strong sustainability credentials will survive politically.
  • Pressure on imports: North American and Baltic exports face growing scrutiny; Asian markets (Japan, Korea) are becoming alternative demand centers.
  • Integration with BECCS: The EU is exploring whether forest biomass combined with carbon capture can be justified as a “negative emissions” pathway – a highly controversial prospect.

Policy Recommendations

For EU decision-makers, three priorities emerge:

  1. Enforce strict sustainability criteria – ensure Member States fully implement RED III, with harmonized monitoring and penalties.
  2. Promote residue-based supply chains – shift subsidies to agricultural and forestry residues rather than roundwood.
  3. Invest in transparency – establish EU-wide biomass registries with open data on sourcing, carbon accounting, and biodiversity impacts.
  4. Avoid lock-in – ensure biomass policy remains flexible to avoid dependence on contested feedstocks, while scaling truly renewable solutions like wind, solar, and green hydrogen.

Conclusion

Forest biomass is not disappearing from Europe’s energy landscape – but its role is being radically redefined. What once was seen as a simple renewable now faces strict sustainability filters.

The message from Brussels is clear: biomass can remain part of the net-zero pathway only if it is demonstrably sustainable, residue-based, and fully transparent. Anything less risks not just the climate targets, but public trust in the energy transition itself.


Sources

Sustainable Forest Biomass in Europe – Policy Roadmap

Do’s & Don’ts under RED III and EU sustainability rules

✅ Do’s

  • Prioritise residues & by-products from sawmills and forestry.
  • Ensure full chain-of-custody documentation for all feedstocks.
  • Strengthen GHG lifecycle accounting with independent verification.
  • Integrate biomass into circular economy strategies.
  • Support local, residue-based supply chains to reduce import dependency.

❌ Don’ts

  • Subsidise primary forest biomass or roundwood for energy.
  • Ignore biodiversity safeguards in harvesting practices.
  • Lock in large-scale biomass plants that depend on contested imports.
  • Rely on carbon neutrality assumptions without transparent data.
  • Undermine EU biodiversity and land-use goals for short-term energy gains.
Key Message: Forest biomass can remain part of the EU’s net-zero pathway only if it is residue-based, transparent, and biodiversity-safe.