The introduction of a new wood heating tax is being actively discussed in Germany

15 Aug 2024

In Germany, the issue of the impact of wood heating on the climate and the possibility of introducing a CO2 tax for wood began to be actively discussed. The Federal Environmental Protection Agency (UBA) has changed its approach and now considers wood heating harmful to the climate, whereas it was previously considered climate neutral. This caused outrage among business associations and forced the German Ministry of Economy to deny the possibility of introducing such a tax, saying that there are no such plans.

The situation is complicated by the fact that the European Union, according to the RED III Renewable Energy Directive, still considers heating with pellets and wood to be climate neutral, since wood absorbs as much CO2 during growth as it emits when it is burned. However, new UBA calculations show that burning one ton of wood results in 1.7 tons of CO2 emissions, which calls into question the environmental benefits of this type of fuel.

In addition, Prof. In his video, Andreas Schulte explains how the new CO2 tax could affect millions of households in Germany that use wood for heating, as well as forest owners and workers in the wood industry. He criticizes the possible tax, believing that it will only create a new bureaucratic problem and contribute to the monopolization of the heat pump market.

Wood heating remains popular due to the energy crisis and rising gas and oil prices, but new environmental regulations could have a significant impact on this market, which is highly controversial in society and the business environment.

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