EU’s forest biomass policy risks accelerating deforestation, says new report

This article is part of our special report Europe’s forests at a crossroads. Can economic growth and conservation coexist?.

The European Union is on track to miss its 2030 carbon sequestration targets for forests. A new report says forest-based carbon removal needs clearer policies and more funding. Ongoing deforestation, land degradation, and unsustainable land-use practices highlight the need for a policy shift.

Data from the latest European Environment Agency (EEA) monitoring report, details 28 key indicators assessing targets across sectors, including climate change, biodiversity, pollution reduction, and sustainable resource use.

Biodiversity and ecosystem conservation goals are closely tied to forest health. The EU is not on track to meet its targets for increasing forest connectivity or reversing the decline in common bird populations, which reflects broader ecosystem degradation.

Despite existing legislation, pressures from agriculture, urban expansion, and resource extraction continue to impact forest ecosystems.

The recently adopted regulation on nature restoration is expected to play a key role in reversing biodiversity loss, but its success depends on effective implementation at the national level.

The biomass debate

Although the EU constantly tries to design well-intended climate strategies, there is a conflict between climate policy and environmental realities, which depict exacerbating ecological destruction instead of efforts to mitigate it.

According to the ‘Burning Up the Biosphere’ report, the EU is at the centre of the growing controversy over forest biomass energy, as demand for wood pellets continues to surge despite mounting scientific concerns.

The EU is one of the largest consumers of wood pellets, importing vast amounts from North America and increasingly from tropical regions such as Southeast Asia and Brazil, where deforestation and land-use change threaten biodiversity and carbon sequestration efforts.

The EU’s climate blind spot

Despite its commitment to climate neutrality by 2050, the EU continues to subsidise biomass energy, following the United Nations Convention on Climate Change’s (UNFCCC) controversial accounting method, which does not count emissions from wood burning at the smokestack.

This has enabled countries like Germany and the Netherlands to meet their renewable energy targets while critics argue that biomass releases more carbon per unit of electricity than coal.

European subsidies have fuelled the expansion of industrial-scale pellet production, accelerating deforestation in both temperate and tropical forests.

High demand for materials

Forestry plays a critical role in the eighth Environment Action Programme (EAP) of the EU, particularly in climate change mitigation and biodiversity conservation and the Land Use, Land-Use Change, and Forestry (LULUCF) sector functions as a carbon sink, helping reduce net greenhouse gas emissions.

The transition to a regenerative circular economy, which includes sustainable forestry practices, is another EU priority. However, Europe is struggling to reduce its material footprint and overall resource consumption.

Economic growth continues to drive high demand for raw materials, including timber, posing challenges for achieving sustainable forestry management.

New regulations, such as the Ecodesign for Sustainable Products Regulation, aim to promote responsible use and limit environmental harm, but their impact will depend on swift and comprehensive implementation.

Decisive measures needed

Despite some progress in enabling conditions, such as increased eco-innovation and environmental protection investment, the report underscores the urgent need for transformative action.

The EU must strengthen policy enforcement, accelerate afforestation and reforestation efforts, and integrate sustainable land-use practices to meet its environmental targets.

Ensuring forest conservation and restoration is vital not only for climate resilience but also for maintaining biodiversity and achieving a sustainable, low-carbon economy, concludes the EEA.

Change on the horizon?

However, signs of a policy shift are emerging. The Netherlands, the EU’s third-largest biomass consumer, has begun reducing subsidies and recently pushed for biomass to be excluded from the EU’s list of renewable energy sources.

Hamburg, Germany’s second-largest city, cancelled a major coal-to-biomass power plant conversion, citing concerns over emissions and forest degradation.

The EU’s dependence on imported biomass raises concerns about environmental justice, as production expands into countries with weaker governance, exacerbating deforestation, pollution, and land-use conflicts.

While the biomass industry still enjoys significant political support, mounting evidence suggests that its long-term viability is uncertain.

The EU faces increasing pressure to phase out subsidies, acknowledge the full carbon footprint of biomass, and accelerate investment in truly sustainable alternatives such as wind and solar.

[Edited By Brian Maguire | Euractiv's Advocacy Lab ]