The European Parliament has been debating amendments to the RED II Directive, which governs the use of renewable energy, as part of the EU’s Fit for 55 climate package. Among other things, the directive sets out definitions for renewable energy sources and the conditions for granting support to renewable energy. The directive, and its proposed amendments, therefore play a central role in European energy policy and in the transition away from fossil fuels.
Parliament’s position on the energy use of wood as part of the directive has sparked debate for good reason, as the decision is significant for Finland’s economy and energy policy. The forest industry is an important part of Finnish export industry, so regulation affecting the use of forests has wider repercussions for the whole Finnish economy. At the same time, the most common fuels used in Finnish district heating production are wood-based, so the impact on energy production is significant.
The timing of Parliament’s decision is awkward for the EU, as an energy crisis is currently overshadowing the whole of Europe. Fear of what lies ahead is justified, and even though the decision is unlikely to be implemented before winter, it is a step in a worrying direction. Rising costs for the energy use of wood, along with likely restrictions on its use, will further complicate an already difficult energy situation. There is no guarantee that this will be the last year of rising prices.
It remains unclear how Parliament’s position will affect the details of implementation. At least some wood will be excluded from renewable energy support, which is remarkable given that wood is a renewable resource. At the same time, efforts to restrict the energy use of primary wood biomass mean it will have to be replaced by other means – and in the absence of alternatives, by fossil fuels. A range of side streams previously used efficiently by industry may be left unused, and many new ones may never be developed. Achieving renewable energy targets will also become significantly harder.
Looking at the bigger picture, it appears that the EU is pushing through a directive that will, in practice, increase the use of fossil fuels, make it harder to make efficient use of side streams in the forestry sector, and cause significant harm to the national economies of member states such as Finland.
The EU’s energy policy priority must be breaking away from fossil fuels. This should also be reflected in the RED II Directive, which plays a central role in guiding energy policy, and in its implementation across member states. While using wood for energy is not the optimal form of energy or use for wood from a climate perspective, it is nonetheless, in the bigger picture, a significant means of reducing the use of fossil fuels and a major benefit to Finland’s national economy and forest industry. This must be given due weight, at the very latest, in negotiations with member states.
This guest column was written by Onni Nyman, an active member of JEF Helsinki