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Biofuels: Imports

Answer

International wood prices are determined by a number of complex variables such as the demand for wood across different sectors (e.g. paper and pulp and energy), the supply of raw material from both domestic and international sources, and exchange rate fluctuations. The international nature of the markets also makes the establishment of direct links between use patterns and prices extremely difficult. Industries that tend to use imported material will mainly be affected by fluctuations in the international prices, while those that do not have such close links with the international markets are less likely to see such strong effects.Currently there is not enough historical data to provide firm information about the link between imported biomass for use in the energy sector and the impact on prices for other sectors. DEFRA has been working with the Department for Energy and Climate Change, the Department for Business, Innovation and Skills and other Departments, as well as representatives from industry, including the agriculture, energy, and wood panelling sectors, to understand the evidence base in this complex area.On the domestic biomass supply side (as set out in the Woodfuel Implementation Plan of June 2011), Forestry Commission England is working to bring more existing private woodlands into active management to help supply both fuel and non-fuel markets. In addition, increased demand for bioenergy may lead to upward pressure on the price of sawdust and other coproducts from furniture makers and other wood processors.In the short term, woody biomass imports are likely to continue to come from existing forests. If these are sustainably managed, it is unlikely that the demand from the bioenergy sector will result in significant land use change or influence food prices.

Secondary information

Type

Written question

Reference

83031; 537 c272-3W

Session

2010-12

Subjects

Biofuels Imports

Link

View this Written question on www.publications.parliament.uk