Sustainable biomass can play an important role in helping to address concerns about climate change and security of energy supply, while contributing to economic growth and employment, particularly in rural areas. According to theImpact Assessment to the 2030 Climate and Energy Framework , biomass use in the heat and power sectors is expected to further increase in the medium term, in the context of the EU effort to move to a low-carbon economy by the middle of the century and the new GHG target reduction of 55% by 2030.

The consumption of biomass for heating and electricity in the EU has already significantly grown since 2005 and, according to estimates from the National Renewable Energy Action Plans (NREAPs), it is expected to increase up to 110.5 Mtoe in 2020, although its share of total final renewable energy consumption will decrease from 54% to 45% due to the faster deployment of other renewables. On the basis of current trend, biomass for energy is expected to be used mainly for heating (90.4 Mtoe), followed by electricity (20 Mtoe).

Biomass can also contribute to the EU energy security, in so far as the majority of biomass demand is met through domestically produced raw material and imports are supplied by diversified sources. In the case of additionally mobilised biomass, there is also a potential for new sources of income along the whole biomass value chain, from cultivation to harvest, processing and conversion into electricity, heating and cooling. This can benefit farmers and forest owners and support rural development. 

Furthermore, greater awareness of the value of biomass can help motivate small forest owners to consider carrying out active and sustainable management of their forests. By incentivising forest management, biomass markets can also contribute to reducing fire risks, particularly in the EU's Mediterranean countries. When waste is used as a bioenergy feedstock, this helps to reduce the amount of waste being landfilled with positive environmental and economic impacts. 

In 2012, the European bioheat and bioelectricity sectors generated a total turnover of at least EUR 33 billion and employed over 374,800 people. Specifically, the sectorial turnover and employment contribution were respectively: 27,679 €M and 282,095 jobs in the solid biomass; 5,698 €M and 68,895 jobs in biogas; and 23,935 jobs in wastes.

The European Commission has established a new EU Renewable Energy Financing Mechanism to support renewable energy projects and It will become operational from January 2021. This new tool will contribute to the clean energy transition and the European Green Deal by identifying suitable renewable energy installation projects to receive support from the mechanism and enabling private investors to invest in the mechanism in order to broaden their sustainable energy portfolio and benefit from the Union-wide green label. Member states can also host a project, without needing to provide finance themselves, or contribute financially to a project located in a different member state.

For information on how B2EU Consulting could support your organisation in developing a funding strategy and in unlocking different financing tools for your operation in the green sector, please don’t hesitate to contact us at: info@b2eu-consulting.com.