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A coherent European Industrial Strategy is vital for an inclusive energy transition

Bioenergy Europe welcomes the Commission's new European Industrial Strategy as an important reference for the development while underlining the need for transformation of European industries in an environment of rising global competition. However, an ambitious industrial strategy for renewables encompassing both supply-side and demand-side policies and enable a “renewable sector-integration” is critical to ensure Europe’s long-term energy security and technological leadership.

Bioenergy is one of the few solutions available to decarbonize several industrial processes where high temperatures and pressures are required. Many of Europe’s forest industries such as pulp and paper mills are large producers and consumers of bioenergy often supplying surplus heat and power to third-parties. Furthermore, the biomass – residues from pulpwood and the pulping process – is locally sourced while much of the bioenergy related technology is made and/or developed in Europe.

In a statement, Bioenergy Europe says that it is “particularly happy” that the European Commission conveyed an important message –  that the EU “will need a more strategic approach to renewable energy industries […] and the supply chain underpinning them”.

The association emphasizes that renewable energy is not just a solution to decarbonisation but it is also a dynamic sector of the economy in which development will fuel the economic growth of the EU and strengthen social cohesion.

Maintaining the technological autonomy of a strategic sector such as the renewables is vital for a successful and inclusive transition to a carbon-neutral economy. The European Industrial Strategy should carefully shape bold and coherent measures that fully promote this distinctiveness and ensure job creation and vibrant economic growth in Europe, said Jean-Marc Jossart, Secretary-General Bioenergy Europe.

According to the International Renewable Energy Agency (IRENA), from 1.2 million direct and indirect jobs in the EU today, renewable energy will create 2.7 million jobs in Europe. Bioenergy is already the biggest source of green jobs in the EU with 703 000 jobs in the sector. Its overall turnover is worth EUR 60,6 billion equal to 0,37 percent of the EU’s Gross Domestic Product (GDP).

Crucially, the bioenergy sector is almost entirely localized within the EU. There were at least 50 000 businesses active in the bioenergy sector in 2018 in the EU, and around 74 percent of the technology suppliers are based in Europe.

It generates a positive trade balance of approximately EUR 5 billion. The development of the bioenergy value chain provides an additional stream of revenue for local communities and creates local jobs. Its future growth is, therefore, crucial for the successful just energy transition.

The renewable energy share for heat and cooling in the EU-28 2017 of which solid biomass has the lion’s share (graphic courtesy Bioenergy Europe).

Bioenergy covers 11 percent of the total EU industry demand: the industrial use of bioheat is ¼ of the final energy consumption of bioenergy. Bioheat produced at large-scale dedicated heat plants and combined heat and power (CHP) plants is often cost-competitive with fossil fuel alternatives.

Bioenergy is one of the few solutions available to decarbonize several industrial processes where high temperatures and pressures are required.

Robust industrial policy for renewables is critical to ensure Europe’s long-term security of energy supply and technology leadership. It is urgent to deliver an ambitious industrial strategy for renewables encompassing both supply-side and demand-side policies and enable a “renewable sector-integration”.

Otherwise, the EU’s “technological sovereignty” in this sector will be increasingly challenged cautioned Bioenergy Europe.

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