Government Proposes New Environmental Standards for Wood Use, Banning Burning of Quality Timber for Energy
The Portuguese government has initiated a public consultation for a draft decree-law that transposes the European Union's Renewable Energy Directive (REDIII), introducing significant changes to the management of the nation's forest resources. The proposal, announced this week, establishes a formal ban on the use of high-quality wood for energy production, a measure praised by environmental and forestry associations as a major step towards sustainability. The legislation is designed to enforce the "principle of cascading use," which mandates that wood resources be prioritized for material production, such as in construction and furniture, before being considered for energy generation. This hierarchy aims to maximize the economic and environmental value derived from timber, aligning with national and European climate objectives.
At the core of the proposal is a new, more stringent definition of "Residual Forest Biomass" (BFR). Under the proposed text, wood with a diameter exceeding six centimeters, as well as other by-products suitable for the wood processing industry, can no longer be classified as residual biomass eligible for burning in power plants. In a joint statement, the environmental association Zero and Centro Pinus, an entity dedicated to promoting the pine industry, highlighted this reclassification as a "fundamental advance." They noted that the clear, six-centimeter diameter limit provides a "easily verifiable visual criterion," addressing long-standing calls from environmental groups and industry stakeholders to prevent the diversion of valuable raw materials to energy production. The law is expected to have far-reaching consequences for both the energy and construction sectors, which are both explored in our market intelligence and analysis blog.
The draft decree-law also includes provisions to eliminate public subsidies for new power plants that are dedicated solely to producing electricity from biomass, a move intended to promote more efficient cogeneration systems that produce both heat and power. According to a spokesperson from the Ministry of Environment and Energy, "The goal is to ensure our forest resources contribute to a high-value, circular economy, where burning is the final resort, not the default option." This policy shift is consistent with broader European trends aimed at reducing carbon emissions and enhancing resource efficiency. For those in the building sector, understanding these changes is crucial, and working with professionals like architects focused on sustainable design will be key.
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Despite the widespread support for the main tenets of the proposal, both Zero and Centro Pinus have issued a warning regarding potential loopholes. The associations expressed concern over clauses within the draft that could permit derogations from the cascading use principle under certain circumstances. They argue that such exceptions could undermine the legislation's primary objective. "The sustainability of our forests and the integrity of our wood industry depend on the effective and unwavering implementation of the cascading principle," their statement read. "Allowing for waivers could perpetuate the unsustainable burning of wood, effectively making this robust diploma ineffective in practice."
The government has stated that the public consultation period, which runs until October 25, is intended to gather feedback from all relevant stakeholders to refine the final text. The outcome of this legislative process is being closely monitored by industries that rely on wood, from paper and pulp to civil construction. The final version of the law will play a critical role in shaping the future of Portugal's bio-economy and its ability to meet its climate targets. Further information on the implications of such regulations can be found by consulting with English-speaking real estate lawyers who are familiar with Portuguese environmental law.
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