German government reviews wood energy policy

26 Aug 2024

Wood heating remains popular in Germany despite the energy crisis caused by the war in Ukraine. Rising gas and oil prices over the past two winters have prompted many to use wood as a more affordable and, at first glance, climate-neutral alternative. However, a recent report casts doubt on this perception.

According to the latest reports, a new regulation could be introduced as early as the end of 2024 that will significantly tighten restrictions on dust emissions from wood stoves, which could mean a ban on many existing models. There are also concerns that traditional wood heating in general may be harmful to the climate.

The German Federal Environmental Protection Agency (UBA) has assessed the use of wood energy as harmful to the climate, abandoning its previous assessment as a climate neutral source. According to the EU Renewable Directive, wood was considered renewable energy because it absorbs as much CO₂ during growth as it emits when burned. However, the UBA website now indicates that burning one ton of wood emits 1.77 tons of CO₂.

This report provoked sharp reactions among the public and the industry. Many associations criticized the agency for disregarding existing legislation, and some even threatened legal action.

According to a document made available to the media in February, the German federal government plans to introduce a CO₂ tax on wood as part of the National Biomass Strategy. It is expected that by 2025, a concept will be developed that adequately reflects the impact of the use of wood biomass for energy on the climate, in particular through the introduction of a realistic and appropriate CO₂ factor.

However, Germany's Ministry of Economy and Climate Protection has denied plans to introduce a CO₂ tax on wood. An official representative of the ministry noted that "no taxes on wood are planned".

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