Pointers for Bioenergy Policy in a Resource-Constrained World

Abstract

Bioenergy is the subject of a wide range of national and European policy measures. While some of these provide direct subsidies, more indirect market-based measures such as the mandating the use of bioenergy products are the major means of support. This paper examines the development of bioenergy policy in Germany, the United Kingdom and Ireland as examples of different approaches to harnessing the potential of bioenergy for public benefits. Of the three countries, Germany has led policy and technical developments. It has the largest area of agricultural land committed to bioenergy, as well as a very substantial forest resource that provides wood fuel. In contrast, support for bioenergy is new in Ireland. In the UK, market-based policy has stimulated biomass imports. Following an overview of the development of European Union policy, this paper provides an account of the public debate that has developed in Germany about the use of agricultural resources for energy. With nearly 1.9 million ha of arable land used for energy crops in 2014 (about 16 % of the total arable area), there has been a strong public reaction to the development of bioenergy from arable land. Developments in Germany have impacted on policy elsewhere and are therefore described here in detail. The comparison of the policy approaches in the three countries reveals the challenge of developing policy to support biomass crops to maximise public benefits while minimising the risks of unintended consequences. Against a background of direct intervention to promote specific bioenergy value chains, public policies in these countries are now converging with increasingly reliance on market-based approaches. While market-based policies can minimise adverse impacts on related markets, they need to be complemented by local measures to optimise land use for public benefits and stimulate the use of economically marginal land. Flexible policy instruments that are based on sound scientific evidence that is provided independent of political and commercial positions are needed.