(Originally published on 12/22/2015)

December 18, Beijing – A seminar on the research results of the “Analysis of Biomass Pellets Industry Policies”, conducted by the Energy Research Institute (ERI) under the National Development and Reform Commission (NDRC), was organized on December 18^th to allow key stakeholders to voice their suggestions and opinions towards this key output under the United Nations Development Programme (UNDP) initiative. Representatives from the Ministry of Environment Protection (MEP), National Energy Administration (NEA), Ministry of Agriculture (MOA), State Forestry Administration (SFA), research institutes as well as private sector participants attended to provide key inputs for this initiative.

China is the world largest energy consumer and biggest emitter of greenhouse gases, yet it is one of the most vulnerable countries towards the impact of climate change. For a country like China, which is experiencing rapid economic growth, better utilization of clean energy can reduce its dependency on imported fuels, in turn protecting the environment. Biomass, a clean and carbon-neutral energy source, can play a vital role in reducing greenhouse gas emissions and air pollution. 

However, despite the fact that China is abundant in biomass resources, with at least 600 million tons of biomass materials like farm residues available for energy generation annually, there still exists many technical and institutional barriers hindering the wide adaptation of this clean energy source. In addition, the short-lived subsidy policies as well as lack of applicable standards further hinder the development of this Industry.

In 2014, though the establishment of a Public-Private-Partnership with Anhui Tianyan Green Energy Development Co. Ltd., UNDP launched the Defining Emission Standards of Biomass Pellet fuelled Industrial Boilers/furnaces through Energy Management Contract-Based Pilots Project, together with China International Center for Technology and Exchanges (CICETE) of MOFCOM, Appraisal Center for Environment and Engineering (ACEE) of Ministry of Environment Protection and National Energy Administration. The project aims to create the standards and testing methodologies for emissions for industrial biomass fuel end users, as well as a standard system for the environmental impact assessment on biomass-fuelled boilers/furnaces.

As one of the key outputs of this project, the report, led by Professor Qin Shiping from ERI, analyzes the national and international policies on biomass pellet industry, with an emphasis on the evaluation of implementation results of related polices issued by the government of China, to provide policy recommendations to boost the development of this industry and bring down the existing barriers in the market.

During the seminar participants had the opportunity to voice their suggestion towards the report presentations. Ren Jingmin from MEP suggests that a biomass pallet-specific emission standard should be established as the first step for the progress. In addition, as proposed by Wang Xiaohua from State Forestry Administration, the introduction of successful models can be incorporated, which can better demonstrate the methods and benefits. Hu Renqing from NEA pointed out a better supervision modality should be developed to enhance the regulation of this industry, while Li Jingming from Ministry of Agriculture suggested that more targeted subsidy policy with a clear guidance from the government is in need. Meanwhile, representatives from the private sector hope to have a firmer recognition from the government towards biomass pellets as clean energy. “We hope there will be a clear guidance and better supervision from the government, so when our products meet the criteria of clean energy, we are allowed to enter into the pool.” said Shi Shutian, owner of Aokelifeng Ltd.

 “Whether or not to recognize biomass pellets as one of the clean energies or how to promote the growth of this renewable energy in China is an immediate question to be answered.” said Mr. Zhang Weidong, UNDP Programme Manager, “We hope this systematic analysis of the root causes that have been hindering the development of biomass pellets in China could help formulate better policy recommendation to the Central Government and in the end, can trigger actions.”