Biomass Energy

World-wide, the biomass fuel market is growing. Governments are setting policies to achieve GHG emissions reductions, to decrease dependence on coal and crude oil, and to secure renewable supply for vastly growing energy demands. Biomass will be an important component of this necessary renewable supply.

For example, the European Union Renewable Energy Directive (RED) sets binding targets for all Member States such that the EU will reach a twenty percent share of renewable energy by 2020.

The UK government has set targets stating that twelve percent of all heat will be generated from a renewable source by 2020; and in China, where nearly fifty percent of 250 million rural households rely on burning firewood and various agricultural wastes to heat homes and cook meals, the demand for energy amongst urban and rural industries and households continues to grow. Biomass is set to increasingly contribute to meeting energy targets and needs around the world.

Because of this potential growth, responsible biomass supply chain managers and purchasers should begin factoring in the vast environmental and social complexities of global biomass supply chains into their purchasing decisions. Responsible supply chain managers will need to evaluate risk associated with biomass and social and environmental issues. They will want to:

• Quickly come up to speed on country-specific sustainability issues impacted by biomass.
• Develop a biomass-specific sustainability purchasing policy and standards to mitigate against social and environmental risks.
• Develop supplier screens to ensure they do business with suppliers that share their values.
• Establish mechanisms for ongoing monitoring and verification of on-the-ground realities and game-changing global sustainability initiatives.

To take leadership one step further, responsible supply chain managers will want to work with industry associations, industry peers and others to build relationships and combine efforts to drive improved social and environmental responsibility in the biomass supply chain. To learn more about the nature of the environmental and social risks and opportunities, as well as key considerations for responsible supply chain managers, please see the full version of this article.