European union wood biomass demand for energy purposes and its influence on U.S. southeastern forest market and carbon storage

Energy supply combined with reduction of greenhouse gas emissions is a global concern. The European Union (EU) has set an ambitious target to achieve 20% of energy sourced from renewables by 2020. Biomass imports are likely to make an important contribution in the EU’s renewable energy consumption. The Southeastern U.S. is considered as one of the potential biomass import regions to the EU. The SubRegional Timber Supply Model (SRTS) was used to observe market reaction on changes in woody biomass consumption. The research area included Southeastern U.S and its coastal plain. The results from sensitivity analyses demonstrate that neither percentage of biomass delivery to EU nor moisture content of pellets significantly influence the wood market in the Southeastern United States. Next, the results from modeled scenarios show that for both regions and under all projected scenarios, price increases range from 25% up to 125%. Furthermore, the costs of EU imports are very sensitive to U.S. domestic renewable energy policy which is uncertain. Under all scenarios and for both the Southeast and coastal plain, carbon storage increased due to positive market planting response among private forest owners compare to baseline scenario. While low and medium scenarios were very similar in terms of impact on market behavior, high scenarios for both SE U.S. and coastal States’ cause the biggest impact on wood markets and natural resources in these regions

Global timber investments, 2005 to 2017

We estimated timber investment returns for 22 countries and 54 species/management regimes in 2017, for a range of global timber plantation species and countries at the stand level, using capital budgeting criteria, without land costs, at a real discount rate of 8%. Returns were estimated for the principal plantation countries in the Americas-Brazil, Argentina, Uruguay, Chile, Colombia, Venezuela, Paraguay, Mexico, and the United States-as well as New Zealand, Australia, South Africa, China, Vietnam, Laos, Spain, Finland, Poland, Scotland, and France. South American plantation growth rates and their concomitant returns were generally greater, at more than 12% Internal Rates of Return (IRRs), as were those in China, Vietnam, and Laos. These IRRs were followed by those for plantations in southern hemisphere countries of Australia and New Zealand and in Mexico, with IRRs around 8%. Temperate forest plantations in the U.S. and Europe returned less, from 4% to 8%, but those countries have less financial risk, better timber markets, and more infrastructure. Returns to most planted species in all countries except Asia have decreased from 2005 to 2017. If land costs were included in calculating the overall timberland investment returns, the IRRs would decrease from 3 percentage points less for loblolly pine in the U.S. South to 8 percentage points less for eucalypts in Brazil.Peer reviewe

Transdisciplinary diagnostic framework for biodiversity decision-making assessment. D1.7

This deliverable describes the process of developing a transdisciplinary diagnostic framework for biodiversity decision-making carried out in Work Package 1 (WP1) of the EU funded research project PLANET4B. The aim of the process was to help researchers and practitioners in our project become more conscious of the theoretical approaches and languages that may condition the interventions we study and the policy and additional recommendations that we make to societal actors. The starting proposition for this work was that we as PLANET4B partners come from a wide range of different disciplines and practices. Therefore, we needed a shared learning process of our different theoretical and practical lenses and languages. This is necessary to increase our potential as a project to design for transformational change in Work Packages to follow. We report on our testing of Meadows’ (1999) leverage points framework (LPF) as a potential shared conceptual language for transformational change across the places, actors and theories that situate both placebased and sectoral case studies in the project. We report on the opportunities and limitations of the LPF in connecting to (i) theories of change used by research partners in their cases, as well as (ii) bridging conceptually to other “integrating analytical approaches” where PLANET4B has partner expertise; namely “intersectionality analysis”, “discourse analysis” and “reflexivity-contextualisation of interventions”. The report recognises that these integrating approaches are but a subset of possible systems analysis tools in transformative change research. The process of understanding and applying Meadows’ (1999) leverage points framework achieved some shared language and understanding across research disciplines. It helped us to compare assumptions about transformative change across our different case studies. As such, we think we achieved the “process objective” of this initial stage of PLANET4B of using a common framework to diagnose our case studies. However, case studies and experts on other integrating analytical approaches identified several limitations of the LPF. Limitations include the LPF itself being a particular theoretical systems analysis lens which in some cases could exclude practitioners through its unfamiliar concepts. Furthermore, the LPF was identified as being ‘structuralist’ or ‘mechanistic’ in the particular way we tested it in our case studies, not addressing concepts such as agency, power and decision-making. It was critiqued for not being specific to decisions about biodiversity and the related nature values.publishedVersio

Modelling of Distributed Resource Aggregation for the Provision of Ancillary Services

Nowadays, ancillary services (ASs) are usually provided by large power generating units located in transmission networks, while smaller assets connected to distribution systems remain passive. It is expected that active distribution systems will start to play an important role due to numerous issues related to power system operation caused mainly by developing renewable generation and restrictions imposed on conventional power generating units by climate policies. The future development of the power system management will also lead to the establishment of new market agents such as distributed resource aggregators (DRAs). The article presents the concept of the DRA as part of an active distribution system enabling small resources to participate in wholesale markets, provide ASs and indicates the functions of the DRA coordinator in the modern power system. The proposed method of the DRA structure modelling with the use of the mixed-integer linear programming (MILP) is aimed at evaluating the optimal operation pattern of participating resources, the desired shape of the load profile at the point of common coupling (PCC) and the AS provision. The performed simulations of the DRA’s operation show that various types of aggregated resources located in distribution networks are able to provide different services effectively to support the power system in terms of load–generation balancing and allow for further development of renewables

Prospects for producing liquid wood-based biofuels and impacts in the wood using sectors in Europe

Rapid decarbonisation of the transport sector calls for increased use of biofuels. Part of the increase may be covered by fuels produced from logging residues, wood chips and round wood. This article addresses the economic potential and possible impacts of increased production of such wood based biofuels on the forest industries and production of wood based heat and power in the European Economic Area. A global model for the markets and trade of forest biomass and products, the EFI-GTM was applied for the analysis. The results indicate, firstly, that policy choices will have strong impacts on the allocation of biomass use between heat and power production and the production of liquid biofuels. Hence, the policy makers must have very clear goal setting for the preferred ways to solve the shift from the fossil fuel based energy system to a less carbon intensive one. Nevertheless, because large investments in biofuel production take time to plan and construct, and because the annual forest growth exceeds the harvests of wood in various parts of Europe, there is time to adjust the policies to control the market development. Secondly, even assuming the goal of limiting the global warming to 2 °C, the European forest industry production is projected to be rather little affected by the increased competition for biomass with the energy sector. This is because the rivalling regions are facing similar biomass demand challenges. Also, the relatively abundant wood biomass resources in Europe help the European forest industry to maintain its market shares.201

The EU bioeconomy: supporting an employment shift downstream in the wood-based value chains?

Monitoring employment in the European wood-based bioeconomy requires reliable, consistent and comparable statistics across subsectors and over time. Statistics concerning employment in wood-based industries—the main component of the forest-based bioeconomy—must be processed carefully to cope with the differences in definitions and estimation methods. In addition, specific methods must be applied to estimate wood-based employment in sectors including also non-wood activities. In this study, we first delineate the boundaries of the wood-based bioeconomy and then create a harmonised time series on employment for the identified sectors. Finally, we estimate the share of wood-based employment along the value chain in all sectors using wood. According to the results, forestry and extended wood-based value chains employed 4.5 million people in the EU-28 in 2018. Employment in wood-based value chains decreased between 2008 and 2013 in the aftermaths of the financial crisis. Continuously decreasing employment—most apparent in the manufacture of solid wood products and pulp and paper—results from increasing productivity and a decreasing demand for graphic paper. Further, most of the wood-based employment in the EU takes place in downstream parts of value chains, although the weight of the primary sector is still high in some Eastern European countries.JRC.D.1-Bio-econom

The Journal of Forest Business Research to Support Sustainable Forest Investments for Economic, Social, and Environmental Benefits

The forest sector plays an important role in sustainable development for market and nonmarket goods and services. Investors and policy makers are increasingly seeking to rely on forests to provide both commercial forest products and nature-based solutions that will meet consumer demands and contribute to bioenergy, climate change amelioration, and biodiversity. To meet the expectations of climate and energy policies, forecasts estimate that more than US$70 billion of investments are needed annually by 2050. To achieve this level of investments, these increasing demands for investments in forests must be based on scientific research, reliable data, and credible business applications. In the era of information overload, access to peer-reviewed open-access journals has never been more critical than it is now. We summarize the role of our new Journal of Forest Business Research in providing improved applied research for practitioners seeking to achieve better outcomes relative to investment, finance, and economic goals for sustainable development

The Journal of Forest Business Research to Support Sustainable Forest Investments for Economic, Social, and Environmental Benefits

The forest sector plays an important role in sustainable development for market and nonmarket goods and services. Investors and policy makers are increasingly seeking to rely on forests to provide both commercial forest products and nature-based solutions that will meet consumer demands and contribute to bioenergy, climate change amelioration, and biodiversity. To meet the expectations of climate and energy policies, forecasts estimate that more than US$70 billion of investments are needed annually by 2050. To achieve this level of investments, these increasing demands for investments in forests must be based on scientific research, reliable data, and credible business applications. In the era of information overload, access to peer-reviewed open-access journals has never been more critical than it is now. We summarize the role of our new Journal of Forest Business Research in providing improved applied research for practitioners seeking to achieve better outcomes relative to investment, finance, and economic goals for sustainable development