Billions in subsidies support false energy solution

Billion in public money spent to support an industry that undermines emissions reduction targets, threatens biodiversity, degrades forests and pollutes communities.

To mark the International Day of Action on Big Biomass (21 October), the Biomass Action Network has released “Burning Billions for Biomass“, a report detailing how governments support the burning of trees to produce electricity and heat, with subsidies disbursed at every stage of the supply chain.

The figures are eye-watering.

• From 2002-2024, a handful of major economies spent almost US$250 billion on biomass subsidies, with the authors warning that these figures are incomplete and likely to be an underestimate. 

• The UK which hosts Drax—the world’s largest biomass burner—disbursed £22 billion (US$29 billion) in subsidies from 2002-2023, no doubt explaining why UK households are burdened with some of the world’s highest electricity bills. 

• The EU meted out €20 billion annually from 2015-2024, with €16 billion in 2023 and €9 billion in 2024. The report stresses that “these figures are likely an underestimate, but come to a total of US$193 billion.”

• Japan handed over ¥1.97 trillion (US$13 billion) from 2014-2024.

• South Korea shelled out ₩900 billion (US$689 million) in 2024 alone.

• Canada coughed up C$346 million per year on average from 2021-2024, totalling C$1.3 billion (US$996 million).

Energy companies are being paid directly to burn trees for heat and energy production despite the fact that we now know that burning forest biomass is not carbon neutral. On the contrary it increases atmospheric CO2 for decades. Industrial biomass production also drives the destruction and degradation of forests and biodiversity, and poisons and pollutes rural communities worldwide. 

Biomass subsidies don’t just undermine our climate and nature goals, they make a mockery of Target 18 of the Global Biodiversity Framework (phasing out nature-harming subsidies).

These billions would be much better spent on energy efficiency and promoting real renewables. Biomass is a hugely expensive energy technology which only survives thanks to the misplaced largesse of western governments. Biomass plants are also being promoted and subsidised in Switzerland.

It is time to cut subsidies and not forests.