Sustainable bioenergy included in EU’S Green Finance Taxonomy
The U.S. Industrial Pellet Association today welcomed the EU Taxonomy which classifies sustainable bioenergy as an environmentally sustainable activity, underscoring its indispensable role in the EU’s low-carbon energy transition.
Released by the European Commission, the EU taxonomy is seen as an important enabler to scale up sustainable investment and to implement the European Green Deal. By establishing clear definitions on which economic activities can be considered environmentally sustainable, the taxonomy is expected to create security for investors and help shift investments where they are most needed.
“We welcome the EU’s new rules on taxonomy, in particular that sustainable bioenergy use for power and heat production is recognized as making a ‘substantial contribution’ to climate mitigation,” said Seth Ginther, USIPA executive director.
Requirements for sustainable bioenergy included in the taxonomy are also consistent with the strict, harmonized EU-wide sustainability criteria that was introduced in REDII just two years ago. This decision ensures the EU only sources biomass that makes a positive contribution to the climate and healthy forest ecosystems.
“The upcoming revision of REDII should follow a similar approach to ensure a sufficient and secure supply of sustainable biomass that multiple analysis show will be needed to achieve the EU’s climate ambitions for 2030 and beyond,” said Ginther. “We stand ready to support EU Member States and the European Parliament, and share our expertise during their work on the new rules.”
Sustainable bioenergy already represents almost 60 percent of renewable energy consumption in the EU and its role in displacing coal, decarbonizing industry and providing negative emissions is vital to meeting EU climate targets.