Wood pellet manufacturing plant

Paris climate agreement overlooks wood pellet loophole

"This rule that was designed to prevent you from counting carbon twice has effectively become a rule in which no carbon is counted at all."

With the U.S. back in the Paris Agreement, and with governments across the country evaluating how they can cut carbon emissions, a question remains about one contentious "carbon neutral" energy source: wood pellets.


Wood pellets are burned as a form of biomass energy, or bioenergy, and are touted as a "carbon neutral" energy source in the global transition away from fossil fuels. It became an energy staple for European countries in 2009 when the European Union set goals to cut carbon emissions by 20 percent of 1990 levels by the year 2020. In 2019, the EU accounted for approximately 75 percent of global wood pellet consumption.

A 2012 study projected that by 2020 about 60 percent of the EU's renewable energy would come from burning wood pellets as a carbon neutral alternative to coal. And data released by the EU at the end of 2020 indicates that they were set to meet this 20 percent goal while on track to reduce emissions by 37 percent by 2030.

But this latest report did not directly mention the use of wood pellets in the EU, primarily for residential heating, in its energy budget. This exclusion is emblematic of a flawed carbon accounting system for wood pellets that is leaving a chunk of emissions uncounted, and experts say the Paris Agreement will only create more missed emissions from the biomass sector.

Flawed climate change accounting

wood pellet manufacturing

Aerial view of Enviva Biomass facility in Northampton County, NC. (Credit: Dogwood Alliance)

Producers harvest about 4.9 million metric tons of wood annually from the biodiverse forests of the Southeast U.S. These felled trees release carbon when cut and their end-use is as a fuel, which makes for tricky climate accounting.

"The way that emissions in general are reported at the national level as well as to the United Nations Framework Convention on Climate Change is by energy use and land use. Unfortunately, bioenergy falls into both categories," Rita Frost, campaigns director for the Southeastern forest protection nonprofit the Dogwood Alliance, told EHN. "We created accounting rules that said for bioenergy purposes, we're going to count the carbon emissions when you cut down the tree, so you don't have to count it when it goes out of the smokestack."

When a forest is cut down in North Carolina to make wood pellets, the carbon is supposed to be counted by the U.S. in their annual climate reports as a carbon sink loss. Forests, especially old growth forests like those found in the Southeast U.S., are an important source of carbon removal from the atmosphere, so when a forest is cut down, the emissions are, in theory, counted as a land use emission.

The emissions from wood pellets are not counted in the energy sector, "to do so would erroneously double count the climate impact of wood pellets in both the land sector and the energy sector," wrote a representative from the largest biomass supplier in the world, Enviva Biomass, in an email to EHN.

However, because of the way forests are classified in the U.S., these emissions aren't counted in either the land or energy sectors, Frost said.

"If you clear-cut a forest, as long as you don't turn the land into a parking lot or a tobacco farm, that land is still accounted for as forest," she said. "So this rule that was designed to prevent you from counting carbon twice has effectively become a rule in which no carbon is counted at all, and biomass looks like it's carbon neutral."

The U.S. does not account for the emissions from breaking down and compressing trees into wood pellets at these facilities either. And in addition to carbon emissions from these facilities, a 2018 report highlighted that these wood pellet plants often release carbon monoxide, smog, and fine particulate matter into the air contributing to respiratory and heart diseases in local residents.

With the U.S.'s reentry into the Paris Agreement, an international treaty aimed at combating climate change, earlier this year, experts say this flawed accounting system should be corrected.

Mary Booth, director of Partnership for Policy Integrity, a nonprofit that provides science and legal support to inform climate policy, said the U.S. placement in the Paris Agreement allows this loophole to persist.

"In order for wood to qualify toward renewable energy targets the country where the wood comes from has to be a member of the Paris Agreement – like be signed on to the Paris Agreement," she told EHN. She also noted that in 2018, new rules were instituted to allow countries in the agreement to continue not counting wood pellet emissions in the energy sector so long as the country where the wood came from accounts for it in land use.

Enviva said U.S. participation in Paris has nothing to do with the standard for biomass accounting.

Many of the biggest wood pellet companies that sell to Europe are located in the Southeast U.S. Because wood pellets are subsidized by many European countries as a renewable energy source, the U.S.'s backing out of the Paris Agreement had the potential to overturn the whole "sustainable wood pellet" slogan. With the U.S. back in, the new rules are a non-issue; Europe can continue burning biomass without counting the emissions.

Biodiversity impacts

North Carolina forests

North Carolina biologist Chris Kelly with flags to mark planting sites as a part of an effort to restore red spruce in the Southern Appalachians. (Credit: USFWS)

The scale of tree harvesting in the U.S. is another concern. Biomass makes up a "relatively small slice," of total domestic logging, said Booth. Enviva also noted that only 2 percent of forests in the Southeast are harvested for biomass exclusively.

At the same time, Booth points out that the concentration of these wood pellet facilities in places like North Carolina and Mississippi contributes to an unequal burden of habitat destruction and pollution in certain communities, usually low income communities and communities of color. A 2020 article produced by EHN, Southerly, and Scalawag noted that recent plant expansion projects and the building of new facilities is disproportionately impacting communities from Northampton County, North Carolina, to Alabama's Black Belt.

"If you took a picture of North Carolina, you would see that significant patches of trees have gone missing, and that's all terrestrial carbon that's now in the atmosphere," Booth said.

Frost said these discrepancies are difficult to spot at a national level because the U.S. counts forest loss as a net value.

"At the end of the year, the final tally is counted as a sum of forests cut and growth over the course of the year, and does not go into specifics," she said. "And since clearcut lands are still counted as forest land, areas that may have been clear cut are still included in that net value as a positive forest value."

A report written by William Moomaw, Professor Emeritus of International Environmental Policy at the Fletcher School, Tufts University, further illustrates this point: "The United States reports a net growth in carbon stocks for the past several years. Many erroneously point to this as evidence that U.S. forests are increasing their capacity to remove carbon dioxide from the atmosphere and store it long-term. However, long-term and short-term carbon storage is not adequately delineated in the accounting process."

Frost added that because of the increasing demand for forest product industries like biomass, many natural forests with complex ecosystems are being cut down and converted into pine tree monocultures, which generally pull less carbon from the atmosphere compared to old growth forests and lack the level of species richness that can prevent massive forest die-offs.

Correcting the climate accounting

John Kerry climate change NATO

NATO Secretary General Jens Stoltenberg meets United States Special Presidential Envoy for Climate John Kerry. (Credit: NATO)

Frost believes that the best way to address this accounting issue is by switching biomass carbon counting from the land use sector to the energy sector, thus switching the accountability from the U.S. and its definition of a forest to the EU and other wood pellet consuming countries. This would also negate claims that biomass energy is carbon neutral.

"Enviva claims that burning their wood pellets reduces emissions by more than 80 percent, compared to coal. However, data from Drax Power in the UK, one of Enviva's biggest customers, show the facility emits more carbon dioxide when burning wood and other biomass than when burning coal, a reality that contradicts Enviva's claims.

It's urgent that the bioenergy industry come clean on its real carbon and forest impacts," wrote Booth in a 2016 report. The report notes that in 2013, the carbon emissions rate for coal at Drax Power was approximately 1,910 pounds per megawatt-hour of electricity compared to 2,128 pounds per megawatt-hour for biomass. With the increasing demand for renewable energy in the UK, that number was projected to increase.

"If Biden and the rest of the world want to stay true to the goals of the Paris Agreement, they need to prioritize forest restoration and management that doesn't reduce carbon by cutting down trees," Booth said.

Banner photo: Curran Renewables wood pellet manufacturing mill in New York. (Credit: Wild Center/flickr)

Editor's note: This story has been updated to clarify European Union renewable energy goals.

climate change plastic
Credit: UNEP

Op-ed: Ending toxic threats to Alaska from plastics and petrochemicals

An ambitious Plastics Treaty that controls plastic production and eliminates the use of toxic chemicals would begin to rectify the environmental injustices experienced by Indigenous Peoples.

Flames, belching smoke, and black carbon in the sky—on nights when I (Rosemary) saw 20 or more flares, I knew sick people would be coming.
Keep reading...Show less
Senator Whitehouse & climate change

Senator Whitehouse puts climate change on budget committee’s agenda

For more than a decade, Senator Sheldon Whitehouse gave daily warnings about the mounting threat of climate change. Now he has a powerful new perch.
Amid LNG’s Gulf Coast expansion, community hopes to stand in its way
Coast Guard inspects Cameron LNG Facility in preparation for first LNG export in 2019. (Credit: Coast Guard News)

Amid LNG’s Gulf Coast expansion, community hopes to stand in its way

This 2-part series was co-produced by Environmental Health News and the journalism non-profit Economic Hardship Reporting Project. See part 1 here.Este ensayo también está disponible en español
Keep reading...Show less

Global climate impacts are set to drastically reduce average income levels by 2050

A new study reveals that by 2050, global incomes will decrease by almost 20% on average due to severe climate impacts, which will cost significantly more than proactive measures to limit temperature rises.

Jonathan Watts reports for The Guardian.

Keep reading...Show less
Biden's Arctic policy curbs drilling
Credit: JLS Photography - Alaska/Flickr

Biden's Arctic policy curbs drilling and blocks road construction

President Biden curtails fossil fuel extraction in Alaska, aiming to preserve the region's pristine habitats.

Maxine Joselow reports for The Washington Post.

Keep reading...Show less

New rule prioritizes conservation on US public lands

A new rule introduced by the Biden administration aims to balance conservation with economic activities on America's public lands, enhancing protections and sustainable use.

Catrin Einhorn reports for The New York Times.

Keep reading...Show less
Deepwater Horizon oil spill
Credit: Florida Sea Grant/Flickr

The lasting impact of the Deepwater Horizon spill on marine life

A recent expedition to the Gulf of Mexico has revealed ongoing environmental damage from the Deepwater Horizon disaster, showing little signs of recovery for the marine ecosystem.

Xander Peters reports for Hakai Magazine.

Keep reading...Show less

Impact of climate change on Indigenous communities documented in global study

Indigenous and local communities' firsthand experiences with climate change are vividly detailed in a new extensive study.

Sonam Lama Hyolmo reports for Mongabay.

Keep reading...Show less
From our Newsroom
New EPA regulations mean a closer eye on the nation’s petrochemical hub

New EPA regulations mean a closer eye on the nation’s petrochemical hub

Houston’s fenceline communities welcome stricter federal rules on chemical plant emissions but worry about state compliance.

plastic composting

Bioplastics create a composting conundrum

Biodegradable food packaging is a step in the right direction, experts say, but when composted carries risks of microplastic and chemical contamination.

plastic treaty

Groups push Biden administration to take leadership role at upcoming plastic treaty talks

The US has taken a “middle of the road position” so far, environmental groups say.

chemical recycling Youngstown

Listen: Why communities in Pennsylvania, Ohio and West Virginia are fighting chemical recycling plants

EHN reporter Kristina Marusic discusses her new three-part series on the controversies surrounding chemical recycling.

chemical recycling

Latest chemical recycling plant closing spurs concern over the industry’s viability

Oregon’s Regenyx plant announced its closing in late February, with those involved calling it a success, despite never reaching planned capacity and millions of dollars lost.

plastic treaty

Everything you need to know for the fourth round of global plastic pollution treaty talks

Countries will meet this month in Ottawa to move forward on the historic treaty — but obstacles remain.

Stay informed: sign up for The Daily Climate newsletter
Top news on climate impacts, solutions, politics, drivers. Delivered to your inbox week days.