The Romanian Foresters Association (ASFOR) is calling for the current European treatment of sustainable wood biomass under the EU Emissions Trading System (EU ETS) to be maintained, as discussions continue over the future revision of the European carbon market. The association's position specifically concerns biomass that complies with EU sustainability and greenhouse gas emission-saving criteria.

🌳 The debate is highly relevant for the European wood industry, timber processors, sawmills, biomass producers and wood pellet manufacturers, as potential regulatory changes could affect the use of forest and industrial wood residues, biomass energy production, pellet and briquette markets, and competition for wood raw materials.

What ASFOR Is Asking for Regarding Wood Biomass and the EU ETS

ASFOR presented its position as European discussions intensified over the way emissions from biomass combustion should be accounted for under the EU ETS.

Under the current European framework, a zero emission factor does not automatically apply to all biomass. Biomass used under specific conditions may qualify for zero-rating when the applicable sustainability and greenhouse gas emission-saving criteria are met.

ASFOR argues that this mechanism should remain in place for sustainable wood biomass, while compliance controls and sustainability requirements should continue to be enforced.

🪵 For the forestry and wood processing sector, the distinction between wood intended for industrial manufacturing and residues or lower-grade wood assortments suitable for energy production remains particularly important.

The cascading use principle aims to direct wood, whenever technically and economically feasible, first towards higher-value and longer-life products, followed by reuse, recycling and, finally, energy recovery.

Wood Biomass Between Renewable Energy and European Carbon Policy

The issue remains controversial at European level. Some environmental organisations argue that emissions generated directly by burning biomass should be reflected more explicitly in the EU ETS carbon accounting system.

On the other hand, the current EU framework links favourable treatment for biomass to sustainability and greenhouse gas emission-saving criteria.

For companies operating throughout the wood supply chain, changes to these rules could affect wood biomass prices, energy costs, cogeneration investments, wood pellet markets and demand for sawmill residues and waste wood.

The European wood market is already being influenced by changing energy demand. A recent WoodBusinessPortal.com analysis shows that the German waste wood market remains broadly stable, partly because several biomass power plants are currently operating with reduced demand.

Romania: Wood Biomass Also Has an Important Social Role

ASFOR also highlights the importance of firewood and biomass for household heating in Romania.

According to figures cited by the association, approximately 3.5 million Romanian households use wood for heating, with the share significantly higher in rural areas.

For this reason, ASFOR argues that changes in European biomass policy should also take into account the availability and affordability of alternative energy sources for rural communities.

The association also supports financing programmes designed to replace inefficient wood-burning heating systems, including the Romanian "Rabla pentru sobe" programme, as well as the development of the "1 village - 1 MW" concept.

The latter would involve local cogeneration facilities using residual forest biomass and locally available wood resources.

According to estimates presented by ASFOR, thermal energy produced from local wood chips could cost around RON 150/MWh, compared with approximately RON 380/MWh for natural gas.

These figures represent estimates presented by the association and actual costs may vary depending on technology, logistics, wood biomass prices, feedstock availability and plant capacity.

Potential Impact on the European Wood Industry

📊 For wood producers, sawmills and timber traders, the debate extends well beyond the energy sector.

A significant increase or decrease in demand for biomass can change the balance between different uses of wood raw materials and influence the price of timber, sawmill residues, wood chips, pellets and other forest products.

WoodBusinessPortal.com has recently analysed how economic wood availability is becoming increasingly important for the European wood industry, even in countries where forest resources remain physically available.

Standing timber prices, harvesting costs, transport expenses, accessibility and competition between construction, furniture, panels, pulp, packaging and biomass producers can all influence the final price of wood raw materials.

At the same time, markets for wood pellets, wood briquettes and densified wood biomass continue to develop across Europe.

Long-term trends in this sector are also examined in WoodBusinessPortal.com's analysis of the European Union densified wood market through 2035, which covers pellets, briquettes, compressed wood products and biomass demand.

Wood Pellets, Waste Wood and Biomass Markets Could Be Directly Affected

🪵 EU ETS rules can have commercial consequences throughout the wood energy supply chain.

If biomass becomes more expensive to use for energy generation, demand for certain categories of wood chips, waste wood, sawdust, bark, wood pellets and forest residues could weaken.

Conversely, regulatory stability for certified sustainable biomass could support long-term investments in biomass heating, district heating and combined heat and power facilities.

These developments are particularly relevant for sawmills because many wood-processing facilities rely on the sale or internal use of residues such as sawdust, chips and bark.

The commercial value of these by-products can influence overall sawmill profitability and therefore indirectly affect lumber and timber prices.

Cascading Use of Wood Remains a Key Issue

One of the central questions in European biomass policy is how to ensure that valuable wood resources are used efficiently.

The principle of cascading wood use generally prioritises applications that keep carbon stored in products for longer periods and create greater economic value.

This may include:

• construction timber and engineered wood products;
• furniture and wood components;
• wood-based panels;
• packaging and industrial wood products;
• reuse and recycling;
• energy recovery from residues and wood that cannot be economically used for higher-value applications.

For the European forest-based sector, maintaining a balance between industrial demand and energy demand will remain essential, especially as the EU seeks simultaneously to expand the bioeconomy, reduce fossil fuel consumption and increase the use of renewable materials.

What the Wood Industry Should Monitor Next

For companies operating in forestry, timber processing and the wood products sector, future negotiations regarding the EU ETS could become an important factor in investment and purchasing decisions.

🌳 Companies should closely monitor developments related to:

• sustainability criteria for wood biomass;
• EU ETS biomass emission accounting;
• greenhouse gas emission-saving requirements;
• cascading use of wood;
• EU carbon allowance prices;
• biomass cogeneration incentives;
• demand for wood pellets and wood chips;
• prices and availability of wood residues.

For Romania and other European wood-producing countries, one of the main challenges will be maintaining an economically efficient balance between the use of wood in higher-value products - including construction materials, furniture, panels and engineered wood - and energy recovery from residues or lower-grade assortments that cannot be used efficiently elsewhere.

Wood Market Information for Industry Professionals

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Sources:

ASFOR
European Commission - Climate Action
ForestMania