International Day of Forests, observed yearly on March 21st, offers a chance to reflect on our relationship with the nature that sustains our very lives – and to take active steps towards protecting it. As threats to these irreplaceable pieces of nature evolve, so does the need to take stock of the real costs of false “solutions” like biomass energy for both the planet and for people Faulty carbon accounting labeling forest-sourced biomass as both renewable and carbon neutral has led to heavy government subsidization, spelling trouble for forest-rich developing countries like Indonesia, where domestic and foreign demand threatens both forests and the livelihoods of those who depend on them.  

This #InternationalDayofForests, we take a deeper look at the vital roles primary forests play in keeping our planet cool and our food systems intact – and what subsidy rollbacks in South Korea could mean for the biomass industry threatening Indonesia’s forests.

Cikole protected forest near Bandung, Indonesia. Image courtesy of Reuters.

Primary Forests: Nature’s Last Standing Soldiers

Primary forests are some of the last remaining pockets of nature in its most pristine, largely undisturbed form. These ancient biomes are integral to keeping the global ecosystem in check and serve as some of our last natural defenses in the fight against climate change. Beyond serving as massive carbon sinks and prime biodiversity hotspots, these forests help maintain vital natural processes which help keep the climate stable and food systems intact. Primary forests help constitute the lifeblood of an increasingly fragile planet, and their preservation is central to mitigating the impacts of climate change.

We have forests to thank for the maintenance of vital ecosystem services that keep local climates in check and our food systems functional, like nutrient cycling, soil formation, flood control and water cycle regulation. And when it comes to carbon sequestration – fancy words for the process of storing carbon dioxide (CO2) – forests are the real MVP.  One study estimates the world’s forests are holding back global warming by more than 1°C, with around 75% of the temperature difference being due to the sheer amount of carbon stored in primary forests – home to some of the oldest and largest trees on the planet.

Forest ecosystem services. Image courtesy of One Earth.

While definitions vary, primary forests are typically characterized by naturally regenerating clusters of native tree species covering an area of at least 500 km2, exhibiting natural forest dynamics and a visible absence of evidence of human interference. They stand out among their peers thanks to an unrivalled capacity to store CO2 - an estimated 30-70% more than logged or planted forests. Most of it is stored in forest biomass, which includes underground root systems as well as aboveground trees, shrubs, deadwood, forest floor litter and peat. The largely undisturbed nature of primary forests means they can store more carbon more securely for longer periods of time and are far more resistant to natural disturbances like fires and pest outbreaks. Because they’re such effective carbon capture mechanisms, their destruction could – and does – have catastrophic consequences for the global climate. Even when replanted, trees take decades, even centuries to recapture the carbon emitted during deforestation, and often face low survival rates due to ecosystem fragmentation. Moreover, deforestation itself destroys the existing carbon sink – making primary forests essentially irreplaceable in terms of carbon stock.

The role of forests in the global carbon cycle. Image courtesy of Musinmas.

Biomass Energy: A Fake Renewable with Real Consequences

As global pressure to transition to renewable energy intensifies, primary forests are becoming increasingly vulnerable, threatened by deforestation and forest degradation that may see these vital ecosystems irrevocably destroyed. The culprit? Wood-based biomass energy - the widely endorsed, “carbon neutral” alternative to fossil fuel, specifically the millions of tons of wood pellets produced for both dedicated and coal co-firing biomass power plants in transitioning countries like South Korea and Japan.

On the surface, biomass energy seems to make sense. In heavily forested (often developing) countries, abundant supply and the promise of reliable export markets drive the scaling up of wood pellet production. For countries navigating an energy transition, biomass feels like a quick solution to the arduous task of phasing out fossil fuels and providing evidence of an effort to reduce carbon emissions.

However, looking closer, the long-term consequences of an unchecked biomass industry start to raise some eyebrows.

Energy plantations convert large expanses of forests and arable land into monocrop production, degrading soil quality, fragmenting wildlife habitats and reducing biodiversity. Many forested areas cleared for biomass expansion also constitute the customary territory of many Indigenous communities, whose economic, spiritual and cultural livelihoods are closely tied to the forests they inhabit. Most critically, biomass power plants emit more CO2 of coal per unit of energy produced, making biomass anything but carbon neutral.

Biomass' CO2 emissions at the smokestack compared to fossil fuels. See the full SFOC report here.

The carbon footprint of the biomass industry has been severely understated due to some bad math from some of the world’s leading voices on climate change and energy transition. The International Energy Agency (IEA) ’s 2050 net zero projections ride on writing off CO2 emissions at the point of combustion. This stems from the Intergovernmental Panel for Climate Change (IPCC) guidelines, which treat these emissions as zero in the energy sector to avoid double counting as it assumes the carbon was already counted when the trees were cut down. Consequently, countries which use wood pellets for co-firing in coal power plants essentially outsource these emissions to producing countries, typically located in the developing world. Faulty carbon accounting allows importer countries to greenwash their biomass investments while producing countries are plagued by certification and oversight issues in the biomass supply chain.

Subsidizing Deforestation, Outsourcing Emissions: South Korea and Indonesia

Rainforest, Laban Nyarit, Malinau, Indonesia. Image courtesy of Mongabay.

Among Asian countries, South Korea is second only to Japan in terms of how much forest biomass it uses for energy production. In 2024, the country imported over four million metric tonnes of wood pellets -around 80% of its woody biomass fuel – mostly from Vietnam, Russia and Indonesia.

The Korean biomass industry has been heavily subsidized since 2012, when the Ministry of Trade, Industry and Energy (MOTIE) introduced the Renewable Portfolio Standard (RPS). Subsidies took the form of Renewable Energy Certificates (RECs), which renewable energy producers including biomass power plants could earn per megawatt-hour of electricity generated and then sell on the market, often to large fossil fuel entities so they can reach their renewable quota. REC weightings vary by energy source, with forest biomass receiving some of the highest. Between this bias and the high cost of renewable energy production in Korea, earning and selling RECs became necessary for making the domestic biomass industry profitable.

Government subsidization is partially responsible for the particularly heightened risk of deforestation in Southeast Asia’s Indonesia, home to some of the most carbon-rich, biodiverse forests left on the planet. Local NGO Auriga Nusantara reports that since 2020, over 9,740 hectares (24,070 acres) of forest have been cleared for biomass production, mostly for export.

Deforestation rates have accelerated across the archipelago thanks to growing demand from countries like South Korea, which imported 61% of Indonesian wood pellets exported between 2021 and 2023. This has been exacerbated by a domestic push for co-firing as a means of achieving Indonesia’s Nationally Determined Contributions (NDCs). Between these factors, the country’s biomass boom threatens over 10 million hectares of forests.

In parts of the country, underhanded concession tactics of biomass plantation developers have had significant implications for local villages who have signed over the rights to forested land. An investigative report by Mongabay highlights issues of unfair deal-making, a lack of informed consent and even forceful land acquisition complicating the main threat of deforestation. With reports predicting a tripling of the global supply of woody biomass for energy between 2021 and 2030, the negative impacts of Indonesia’s push for wood pellet production are likely to continue – especially if major importers like South Korea stick to their pro-biomass stance.

Could Subsidy Rollbacks Mean a Win for Indonesia’s Forests?

An unanticipated rollback on pro-biomass subsidies came in December 2024, when MOTIE, alongside the Ministry of Environment (ME) and the Korea Forest Service (KFS) announced major revisions to the REC weightings system. The revised scheme eliminates the issuance of RECs to new biomass power plants and mandates the phasing out of REC weightings for six state-owned co-firing plants by 2025, with a phasedown scheduled for state and privately-owned dedicated biomass and co-firing plants.

As a major wood pellets importer, South Korea’s decision represents what SFOC Forests & Land Use lead, Hansae Song, describes as “the early stages of a paradigm shift” in Asia. The scaling down of subsidies for imported biomass removes much of the incentives driving wood pellet production – and thus deforestation – in producer countries like Indonesia. The move also highlights the problematic colonial undertones of outsourcing carbon emissions to developing countries. As Song notes in an official SFOC statement, “leveling the rainforests of Southeast Asia to fuel power stations in East Asia is quickly losing its ground.” With one of its major import markets rolling back support, Indonesia’s biomass stakeholders will need to seriously reevaluate their investments – hopefully in the direction of a greener, genuinely renewable alternative.

Loose Ends and Loopholes

South Korea’s biomass subsidy rollback is, however, not without holes. Noticeably absent from the overhaul was a reduction of REC weightings for domestic forest biomass, raising questions as to what a decrease in imported wood pellets means for South Korea’s own forests. Further, the slow phaseout of REC weightings for private biomass plants means many of these facilities may be turning profits for at least a few more decades. Decades more of biomass-related emissions, however, are not a luxury South Korea – or forests worldwide can afford.

The observance of International Day of Forests does not simply serve as just a celebration of everything our planet’s forests are capable of. It is also a sobering reminder that natural forests, primary forests especially, may be our last standing soldiers in the battle against a warming planet. Sacrificing them for the sake of development and not-so-clean energy is not a sustainable option.

It is high time countries lived up to their promise to end deforestation – because once a forest is destroyed, no summit, pledge, nor policy can ever bring it back.