BIOENERGY

Achieving a low-carbon future will be challenging and will require a comprehensive portfolio of technologies and policy measures. Modern bioenergy plays an essential role in the International Energy Agency (IEA) 2°C Scenario (2DS), providing nearly 17% of final energy demand in 2060 compared to 4.5% in 2015.

Bioenergy provides almost 20% of the cumulative carbon savings to 2060. It would be difficult to replace this important contribution. Bioenergy is particularly important in sectors for which other decarbonisation options are not available.

Bioenergy interacts extensively with the agricultural, forestry and waste management sectors.

Investment in bioenergy needs to rise from actual levels of around USD 25 billion per year.

Many processes are available to turn these feedstocks into a product that can be used for electricity, heat or transport.

Financing for clean energy projects is a competitive environment. It is therefore important to consider what risks investors perceive and how these differ for bioenergy projects as opposed to other renewable technologies.

Governments can influence this risk perception and take measures to facilitate finance and to offset particular risks related to bioenergy projects.