Timber: Subsidies
The question
To ask the Secretary of State for Energy Security and Net Zero, on what statutory basis his Department can prevent biomass companies from claiming renewable subsidies for burning wood from irreplaceable primary forests.
Answered by Michael Shanks
The Secretary of State has the statutory authority to determine the sustainability criteria for biomass subsidies either by secondary legislation such as regulations under the Renewables Obligation scheme, or by determining the terms of a contract under the Contracts for Difference scheme.
While the Secretary of State sets the sustainability framework, it is for relevant regulators such as Ofgem, or the Low-Carbon Contracts Company as the contractual counterparty to the Contracts for Difference (CfD) scheme, to enforce sustainability requirements.
Government only supports biomass that satisfies sustainability criteria. The proposed Low-Carbon Dispatchable CfD will strengthen sustainability criteria by excluding biomass sourced from primary forest and old-growth areas from receiving subsidy.
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