South Korea to shrink biomass energy subsidies after criticism over link to deforestation

The South Korean government has announced it will reduce indirect subsidies for biomass energy. The policy reform comes after domestic and international criticism of biomass energy's link to deforestation. Environmental activists applaud the change, but many criticized loopholes and slow timelines for phasing out the subsidies. Biomass power, predominantly generated by burning wood, is the second-largest source of renewable energy in South Korea. Imports accounted for 82% of the country’s wood pellet demand in 2023. In a single year, South Korea provided subsidies amounting to hundreds of millions of dollars for biomass power.