Drivers and barriers for bioenergy trade

Abstract

There are several drivers responsible for the strong increase in biomass trade over the past decade: concerns regarding the effects of climate change remain unchanged, and policy targets for renewable energy for 2020 have so far remained (largely) intact despite the economic crisis. At the same time, the list of barriers potentially hampering the further growth is long and very heterogeneous. Import tariffs and anti-dumping measures have been the topic of dispute between the main producing and consuming regions of ethanol and biodiesel for the last decade, and also technical standards for biodiesel have been criticized, as they may put biodiesel made from soy and palm kernel oil at an disadvantage. For solid biomass, phytosanitary measures are one of the most important barriers preventing the trade of softwood wood chips for energy. Also health and safety issues related to transporting and storing solid biomass still need further attention. For bioenergy trade towards the EU to grow further, long-term investment security is required, a clear and stable sustainability framework has to be in place, and the legal and technical aspects of solid biomass have to be rapidly standardized. The current crisis is likely to influence the climate change business negatively in the short term, but under a stable regulatory framework, even if in short term profit is slow, companies with a long term vision would still find sustainable projects attractive enough to invest.