A new spatial analysis reveals that about 80 percent of wood pellets exported from Indonesia's Gorontalo province to Japan and South Korea come from natural forests, not plantation or waste sources. This challenges the common assumption that biomass is a carbon-neutral energy source. The report says over 4.3 million hectares of Indigenous lands and nearly 3 million hectares of orangutan habitat are under pressure from wood pellet and chip production infrastructure. The findings also question how bioenergy is classified in climate policies. Biomass power plants can emit 50 to 60 percent more CO2 per megawatt-hour than modern coal plants, according to studies cited in the analysis. This creates regulatory risk for utilities in Japan and South Korea that rely on these imports to meet renewable mandates. If subsidies or carbon accounting rules change, the financial viability of biomass projects could be affected. Investors and energy companies should watch for policy updates from international climate bodies and potential adjustments in Japan and South Korea. The article highlights a growing tension between renewable energy targets and actual environmental outcomes in the biomass supply chain.
