Norwegian forest owners require better framework conditions for new bioenergy production

The annual meeting of the Norwegian Forest Owners' Federation on 4 June decided to present a resolution to the Norwegian Government requesting better framework conditions for producing bioenergy.

The Government's target of producing 14 TWh new bioenergy is positive and realistic. Norwegian forest owners have already taken concrete measures for reaching this target and also for securing biodiversity.

This spring the Norwegian Ministry of Petroleum and Energy presented the Government's strategy for increasing the use of bioenergy. The Forest Owners’ resolution states that the plan is very ambitious, but unfortunately the Government has proposed only a few practical measures for implementing it. The Government cannot expect the forestry business to assume alone all risks involved in fulfilling Norway's climate policy targets. A precondition for reaching the target of 14 TWh new bioenergy is that the framework conditions must be more concrete than just good intentions. The main challenges are low profitability and a lack of markets.

The resolution further states that the Federation is prepared to invest considerable funds in developing new bioenergy business, but it also expects the Government to present in the 2009 budget concrete means and measures to improve profitability.