Developments in international bio-energy markets and trade

Abstract

A reliable and sustainable supply of biomass is vital to any market activity aimed at bioenergy production. Given the high expectations for bioenergy on a global scale and of many nations, the pressure on available biomass resources is increasing rapidly. Due to high prices for fossil fuels (especially oil, but also natural gas and to a lesser extent coal), the competitiveness of biomass use has strongly increased. In addition, the development of CO2 markets (emission trading), as well as ongoing learning and subsequent cost reductions for biomass and bioenergy systems, has strengthened the economic drivers for increasing biomass use, production and trade. Last but not the least, various policy incentives (in particular for biofuels for transport) drive demand up.