South Korea has announced plans to reduce subsidies for biomass energy due to increasing concerns about its connection to deforestation. While environmental groups have welcomed the changes, they point out that the reforms may not be comprehensive enough and that the timelines for phasing out subsidies are slow.
The government has been supporting biomass energy for over a decade with significant investment, totaling around $688 million recently for power plants that rely on biomass, according to the Ministry of Trade, Industry and Energy. Biomass energy in South Korea is primarily generated by burning imported wood pellets, making it the second-largest source of renewable energy in the country.
Due to limited domestic forests, South Korea has relied heavily on imported wood pellets, sourcing about 82% of its demand from other countries, making it the third-largest biomass fuel importer globally, following the UK and Japan. Recent studies have shown that some of the biomass imported, especially from Indonesia, is linked to significant forest destruction.
The revised policy will effectively halt support for any new biomass power plants. Subsidies for existing coal and biomass co-firing plants will be eliminated within a year, while the value of renewable energy certificates for dedicated biomass plants will gradually decrease until 2027. However, the plan still allows wood pellet production from domestic sources to receive subsidies, raising concerns that this could continue to threaten local forest health.
Critics argue that the new policy has loopholes that could allow the continuation of activities harmful to forests. The South Korean government has acknowledged various issues associated with the expansion of the biomass market, including the environmental impact and carbon emissions from biomass generation.
Experts believe that these policy changes could influence how other countries approach and utilize biomass as part of their energy strategies. There is a growing need to consider sustainability in the biomass sector, encouraging the use of waste rather than relying on forests that have ecological and conservation value.
As nations work towards cleaner energy solutions, the discussion around biomass subsidies is evolving. While these changes in South Korea are a step towards addressing the environmental concerns, some experts suggest that adjustments to how these subsidies are structured may enhance their effectiveness in promoting a genuinely sustainable energy future.
