Germany's climate goals spark debate over new CO2 fee on wood energy

The federal government of Germany is preparing a concept for introducing a CO2 fee on energy derived from wood, including biomass. This is according to the latest yet unpublished draft of the "National Biomass Strategy" from February 2024, as reported by "Welt am Sonntag".

The ministries of economy, environmental protection, and agriculture are currently consulted on the project, reports Welt am Sonntag. This document pays particular attention to developing a strategy that includes applying a CO2 factor for woody biomass.

Germany plans to develop a concept by 2025 that will adequately reflect the impact of the energetic use of woody biomass on the climate, especially at the European level. As part of this strategy, the introduction of a realistic and appropriate CO2 factor for the combustion of woody biomass is being considered.

The Federal Environment Agency (UBA) has already updated its informational tool "CO2 Calculator" on its website, classifying wood energy from climate-neutral to climate-damaging. Currently, the combustion of one tonne of wood is attributed to the emission of 1.77 tonnes of CO2.

Until now, wood was considered a climate-neutral, renewable fuel. Martin Bentele, the managing director of the German Association for Wood Energy and Pellets (DEPV), has announced that he will consider taking legal action, arguing that "whoever made this decision must reckon with legal consequences." Potential investors in CO2-neutral and renewable heating technologies may feel "cheated". According to him, there is no scientific basis for considering wood harmful to the climate - report German media.

After the failure of the heating law, Germany cannot afford another mishap in the energy transition. This would be the threat of a tax on climate-friendly wood energy - claims Andreas Bitter, president of the Association of Forest Owners.

A critical stance was also expressed by the Deputy Premier of Bavaria and Minister of Economy, Hubert Aiwanger from the Free Voters party, who stated that "the CO2 fee on wood is another absurdity from the ruling coalition" - we read. According to him, wood is a renewable raw material with a sustainable CO2 balance, and the "ideologically motivated" price increase of wood energy must be stopped.