The cascading use of biomass – (how) does RED III ensure the efficient use of wood?

Peer-reviewed paper 8-107-26

Decarbonising heating in buildings is a key requirement for achieving the European Union’s climate targets and the objectives of the Paris Agreement. Biomass currently represents the largest renewable energy source for heating in the EU. The growing energetic use of especially woody biomass raises significant sustainability concerns. Large-scale bioenergy deployment may intensify land-use conflicts, affect biodiversity and reduce forest carbon sink capacities, thereby potentially undermining climate mitigation objectives.

To address these challenges, the revised Renewable Energy Directive (RED III) introduces new rules governing the use of biomass. Central among them is the principle of cascading use of biomass, which prioritises the material use especially of wood in durable products before reuse, recycling and, ultimately, energy generation. But the directive raises several questions regarding the interpretation and implementation of this principle, particularly concerning the meaning of ‘highest economic and environmental added value’, the scope of permissible derogations, and the role of ‘national specificities’, that are yet to be answered.

This paper argues that RED III contains an obligation for the Member States to ensure the cascading use of biomass both in law and in practice. It outlines the directive’s legal framework for the principle of the cascading use of biomass and offers interpretations for the meaning of important terminology. It concludes that RED III requires full implementation of the cascading use of biomass in the Member States and options for derogation from it are strictly limited.