As our energy demands shift as a result of climate change, the market which once supported the practicality of Canadaâs carbon tax is changing too. A new study in the Science Advance journal calls into question the efficacy of carbon taxing in coming years due to projected increases in demand for the new âcarbon-neutralâ energy source that has hopes of reducing our net carbon emissions: forest-based biomass.
Though biomass energy is coined as a green energy alternative, there is some debate in the scientific community regarding whether it is truly carbon neutral as it is commonly advertised to be. Biomass energy is a form of energy generated from burning living organisms-- in the context of this recently published study, forest-based. Without a demand stronger than 1.1 billion m3/year, higher timber prices would boost the harvest of natural forests but fail to reach a profit threshold that would encourage investments in forest regeneration and maintenance, ultimately resulting in emissions. Fortunately, the demand for biomass energy is projected to climb well-past that baseline requirement. A report by IRENA shows rapid 1.6% per year projected increases in bioenergy demand, predicting nearly 50% growth from 2014 to 2030. With 30% of global energy being supplied by bioenergy by 2100 and a third of the supply is assumed to be provided by forests, the question is not its relevance but rather the policies we employ to ensure its efficacy.
Biomass energy policiesâ impact is wide-reaching. The value of timber, the degree of investments in forest management and afforestation, as well as the amount of forest carbon stocks over time are all influenced by the efficiency of policies governing energy productionâs emissions. Despite projected increases in carbon sequestration, without policy and proper management response carbon emissions from biomass energy production will likely fail to reach neutrality. We require an efficient policy to mitigate the negative impacts associated with the new bioenergy demand. The authors of the study used a Global Timber Model (GTM) to simulate the efficacy of two policies ability to incentivize limiting emissions: a carbon tax, and a carbon sequestration subsidy in conjunction with a carbon tax.
First, the GTM was used to generate a baseline to understand the degree of impact either policy scenario will have by examining what would happen should we fail to implement any policy at all. As previously explained, biomass energy demand impacts forest management. By encouraging investments in harvesting, managed plantation area could increase by up to 61 million hectares (Mha) globally. With no biomass energy policy, 15% of the 250 Mha of global natural forest area could be converted to a more intensive management regime. This is particularly relevant for Canada, where our land is dominated by 347 Mha of forest that is ecologically sensitive and biodiverse, threatening important ecosystem services that could cost us in the long run. We require efficient, well-informed policies to ensure our inaccessible forest land remains inaccessible.
Unfortunately for Canada, the policy approach which has been deemed inefficient by the study under the growing demand for bioenergy is using only a carbon tax to incentivize the avoidance of emissions. It creates less demand for forest products which depresses timber prices and forest area and lowers investment in forest management as well as failing to place any value on standing natural forest stocks. Average stocks could still increase their ability to sequester by 0.4 gigatons of carbon dioxide emissions per year (GtCO2ÂŹe/yr) compared to a no policy scenario, but under an alternative, more efficient policy, that number could climb up to five times higher at 2.3 GtCO2ÂŹe/yr, offsetting 7.1% of current annual carbon emissions.
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A more efficient policy is incentivizing the avoidance of emissions through a carbon tax and subsidy. A subsidy for sequestering carbon places value in standing natural forests while still discouraging emissions. Even though total forest carbon increases in both scenarios, failing to implement a system that doesnât place value on standing forest stocks exacerbates one of the issues the policies are designed to prevent: the loss of natural forests by up to 200 Mha and associated ecosystems. Forest area could expand by more than 500 Mha with a carbon subsidy approach which avoids allowing the higher timber prices to tempt landowners to convert natural forests to more managed forest types.
The GTM easily visualizes the profound impact policy can have. If new policyâs economic ramifications are not closely considered, we can now see where unexpected negative impacts may be felt. Two years of policy pushing had to be made in order for the Liberal party to introduce the carbon tax as of January, which should tell us something about the level of exhaustive work you are likely committed to when implementing an eco-friendly nationwide policy. If our government is willing to go through that valiant battle, we should ensure that their efforts are worthwhile and can stand the test of time. As we begin to see the effects of increasing bioenergy demand in coming years, action will have to be taken on the hill once more for us to be able to reap the carbon benefits of the important future energy supply that is biomass energy.

















