South Korea to shrink biomass energy subsidies

SEOUL

South Korea is set to reduce its support for biomass energy following mounting criticism over its connection to deforestation.

The government's decision has also drawn scrutiny for potential loopholes and slow implementation timelines.

Hansae Song, program lead at Solutions for Our Climate, a South Korean NGO, told The Associated Press, "While not without caveats, this decision demonstrates that large-scale biomass power has no place in a renewable energy future."

Biomass power, primarily generated by burning wood, has been South Korea's second-largest source of renewable energy.

South Korea has heavily relied on imported wood pellets, becoming the world's third-largest importer of biomass fuels. An AP investigation linked some of these imports from Indonesia to deforestation of natural, intact forests.

Acknowledging these issues, Trade, Industry and Energy Ministry stated, "As the market expanded, various issues emerged. Criticisms regarding forest degradation and carbon emissions associated with biomass power generation persist."

The revised policy will halt support for new biomass power plants and phase out subsidies for existing facilities over the next decade. However, environmental activists point out several concerns with the new approach:

Continued support for domestically produced wood pellets and chips, including those co-fired with coal, exemptions for power plants under construction or in planning with approved business permits, and slow phase-out timelines for private co-firing facilities.

Experts suggest that South Korea's policy shift could influence how other countries approach biomass in their energy transitions.