Three EU Files, One Clear Message
Last week, Bioenergy Europe’s Working Group on Competitiveness met to discuss three policy files that could shape the sector in the years ahead: the EU VAT Directive, the proposed Industrial Accelerator Act, and the future Heating and Cooling Strategy.
The exchange confirmed that bioenergy is already delivering on competitiveness, decarbonisation and energy resilience, but EU rules still do not reflect that role consistently. Members also stressed a clear priority: Europe needs stable, coherent and investment-friendly policies if it wants a strong bioenergy sector.
VAT rules and wood fuels
The first discussion focused on the EU VAT Directive and the planned phase-out of reduced VAT rates for wood fuels. Members flagged the contradiction between recognising woody biomass as a renewable energy source under EU energy policy, while treating it in practice more like a fossil fuel under tax rules. Concerns were also raised about the impact on affordability, especially for rural households, and on fair competition with other heating solutions.
Industrial policy and bioenergy technologies
The Working Group then examined the proposed Industrial Accelerator Act and its potential implications for bioenergy technologies. Members welcomed the broader objective of simplifying procedures and supporting industrial decarbonisation but pointed to important gaps in the current proposal. In particular, the discussion highlighted the need for clearer recognition of biomass technologies and stronger consideration of their role in decarbonising hard-to-abate sectors.
A quantitative overview helped frame the discussion in broader strategic terms. Bioenergy remains the EU’s largest renewable energy source and plays an important role in industry, especially where electrification is difficult. Members also noted that price stability, technology leadership and export potential are major strengths, but warned that regulatory uncertainty could weaken Europe’s competitive edge.
Bioenergy Europe is currently preparing feedback on the Industrial Accelerator Act and will continue working with members to address the gaps identified in the proposal.
The future of renewable heating
The third file on the agenda was the upcoming EU Heating and Cooling Strategy. Members were updated on Bioenergy Europe’s ongoing advocacy and on the importance of ensuring that bioenergy is properly reflected in the future framework. Even if the strategy is not binding, it is expected to influence future policy direction and market signals.
Bioenergy Europe has already engaged with the process through the Public Consultation, bilateral exchanges with the European Commission and targeted policy recommendations. The association will continue its advocacy to ensure bioenergy is properly reflected in the upcoming Heating and Cooling Strategy and recognised as a key solution for renewable and affordable heat.
Overall, the meeting confirmed the value of Bioenergy Europe’s Working Groups as a space to exchange views, test positions, and stay ahead of EU developments. These discussions help ensure that Bioenergy Europe’s advocacy is grounded in market realities and backed by members’ expertise.
Access to Bioenergy Europe’s Working Groups is reserved for members only. To join the discussion and help shape our work, become a member here.
