The Federal Environment Agency has published a brief legal opinion on the legal framework for the use of wood as an energy source, written by IKEM. The study examines how the current law assesses the climate impact of using wood for energy and reveals an inconsistent legal situation: depending on the intended use, different requirements apply for wood energy to be considered renewable. This can stand in the way of the sensible use of wood for energy.
The use of biomass is a relevant component of the German energy mix, with wood often being described and perceived as a sustainable raw material. However, the scientific perspective is inconsistent: the greenhouse gas savings potential of wood is estimated differently in some cases, and the methods for calculating and reporting emissions have been the subject of scientific debate for many years.
Against this background, the brief report examines how the use of wood for energy and heat generation is regulated in the relevant federal and European legislation. The study does not evaluate the use of wood per se. Rather, the aim is to standardize the legal framework and thus simplify it in practice.
The analysis shows numerous inconsistencies in the existing legal framework:
- Climate targets and accounting: With regard to the national and European climate targets, the removal of wood for energy use in the LULUCF sector (land use, land use change and forestry) is accounted for as detrimental to the greenhouse gas budget. In the sectors that use wood for energy (transport, buildings, industry), on the other hand, the emissions are only reported without affecting the emissions budgets.
- Definitions: There is no uniform legal definition of renewable energy from woody biomass. Depending on the law, the requirements can vary greatly: Some laws recognize any type of wood as a renewable energy source, regardless of origin and quality. Others set minimum requirements for greenhouse gas savings or sustainability criteria.
- Legal framework for heat: There is currently no explicit legal framework for the generation of heat from biomass.
- Cascade use: The principle of cascade use – according to which the energy recovery of wood should be the final use – has not yet been consistently implemented. Concrete specifications, procedures or controls are lacking.
- Funding practice: While some funding guidelines (e.g. for the expansion of heating networks) consider the energetic use of wood to be eligible for funding without restriction, biomass heating systems are currently completely excluded from funding programs for new buildings.
- Consumer protection: Whether products manufactured using energy from solid biomass may be labeled as “climate neutral” or similar depends largely on the interpretation of consumer protection regulations by authorities and courts as long as no clear legal basis is created.
Study author Markus Lehnshack, scientific advisor in IKEM’s Energy Law department, argues for a standardization of the legal framework:
“The current legal framework creates uncertainty and a lack of transparency. Further development is necessary in order to embed the use of wood for energy consistently and sustainably in the energy transition. In addition to minor adjustments, a comprehensive reform would also be conceivable – for example in the form of a new law that combines all requirements for the use of biomass.”
