South Korea Cuts Biomass Subsidies Amid Deforestation Concerns \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ South Korea will reduce subsidies for biomass energy, addressing global criticism of its ties to deforestation. While environmental groups welcomed the changes, they criticized loopholes and slow timelines, warning that co-firing biomass with coal undermines emissions goals. The revised policy includes halting new biomass power plant subsidies and phasing out support for existing plants over the next decade.
South Korea’s Biomass Reform: Quick Looks
- Subsidy Reduction: No new biomass plants will receive subsidies; existing support will be phased out over 15 years.
- Environmental Concerns: Biomass is linked to deforestation, carbon emissions, and prolonged coal dependency.
- Imports Dominant: 82% of South Korea’s biomass is imported, with significant ties to deforestation in Indonesia.
- Criticism: Activists call out exemptions for planned plants and continued support for domestic wood-based biomass.
- Global Context: Biomass remains contentious, with experts urging sustainable alternatives like crop residue and waste.
Deep Look
Biomass Energy in South Korea: A Double-Edged Sword
Biomass energy, touted as a renewable alternative to fossil fuels, has faced mounting scrutiny for its environmental impact. In South Korea, the government has subsidized biomass for over a decade, positioning it as the second-largest source of renewable energy in the country. However, concerns about deforestation, carbon emissions, and the role of imported wood have triggered reforms aimed at scaling back support for biomass.
The revised policy halts subsidies for new biomass power plants and phases out financial incentives for existing facilities over the next 15 years. While these changes mark progress, critics argue they fall short of addressing the root problems tied to biomass energy.
The Cost of Biomass Subsidies
South Korea has invested heavily in biomass through its renewable energy certificates (REC) program, allocating approximately $688 million annually to support biomass-powered plants. Faced with limited domestic forest resources, the country relies on imported wood pellets, which accounted for 82% of demand in 2023. This heavy reliance has made South Korea the third-largest biomass importer globally, following the UK and Japan.
An Associated Press investigation revealed that some biomass imports from Indonesia are linked to deforestation of intact forests, exacerbating environmental degradation. The Ministry of Trade, Industry, and Energy acknowledged these issues, noting, “Criticisms regarding forest degradation and carbon emissions associated with biomass power generation persist.”
Key Policy Changes and Criticisms
Under the revised policy, South Korea will:
- End subsidies for six state-owned co-firing biomass plants in 2024.
- Gradually reduce REC values for three state-owned dedicated biomass plants by 2027.
- Phase out subsidies for six privately owned co-firing plants over a decade.
- Reduce subsidies for 12 dedicated biomass plants over the next 15 years.
Despite these measures, loopholes have sparked backlash. Exemptions for planned plants with approved permits mean some projects could continue under outdated subsidy rules. Domestically produced wood pellets and chips also retain full support, raising concerns about the sustainability of South Korea’s forest resources.
Environmental group Solutions for Our Climate criticized the slow timelines, noting that state-owned co-firing plants account for only 10% of the biomass power fleet. Activists argue that extending support for private co-firing facilities delays progress on coal phase-outs, violating deadlines aligned with the Paris Agreement.
“This extends the life of thermal power plants — many with emissions per unit of energy higher than coal,” said Hansae Song, program lead at Solutions for Our Climate.
Biomass and Carbon Emissions
Scientists and environmentalists have raised alarms about biomass’s role in climate change. Burning wood-based biomass can emit more carbon dioxide per unit of energy than coal, while logging reduces forests’ ability to absorb atmospheric carbon. Critics argue that using biomass as a transitional energy source merely prolongs coal dependency rather than fostering a direct shift to cleaner energy sources.
The International Energy Agency (IEA) supports biomass use only if derived sustainably from waste or crop residue. Unsustainable practices, such as converting forest land for biomass production, contribute to biodiversity loss, erosion, and worsened impacts from extreme weather.
Global Implications and Trends
South Korea’s biomass reforms may signal a shift in how countries evaluate renewable energy policies. Claire Squire, a research associate at the University of Maryland, noted, “There has been a positive shift in terms of discourse around biomass subsidies. Cutting subsidies won’t necessarily fix everything, but rethinking their structure could lead to improvements.”
Globally, demand for biomass has grown, with bioenergy use increasing by about 3% annually between 2010 and 2022, according to the IEA. However, countries face mounting pressure to ensure sustainability as they integrate biomass into their energy transitions.
What’s Next for South Korea?
South Korea’s reforms are a step in the right direction but highlight the challenges of transitioning to truly sustainable energy sources. Policymakers must address gaps in the revised framework, including loopholes for planned plants and support for domestic biomass production.
Environmentalists argue that South Korea should pivot to alternatives such as wind, solar, and geothermal energy while phasing out thermal plants entirely. Without bolder action, the country risks undermining its renewable energy goals and international commitments to combat climate change.
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