Biomass Energy Policies: Global Trends and Lessons for Indonesia

Biomass energy policies are becoming a crucial component of global strategies for achieving a cleaner and more sustainable energy future. Governments worldwide are introducing regulations, mandates, and incentives to reduce fossil fuel dependence, cut carbon emissions, and promote the use of sustainable bioenergy. In this article, we will explore global policy trends, Indonesia’s current framework, challenges faced, and recommendations for strengthening biomass energy development.

What is Biomass Energy and Why Policies Matter

Biomass energy, or bioenergy, is derived from organic materials such as agricultural residues, forestry by-products, wood pellets, and organic waste. It is widely categorized into traditional use (e.g., burning firewood for cooking and heating without efficient technology) and modern bioenergy, which includes advanced technologies like co-firing, gasification, pyrolysis, and combined heat and power systems. Biomass has long been part of human energy use, but modern policies now emphasize efficiency, sustainability, and integration with low-carbon strategies.

biomass energy policies

Global Trends in Biomass Energy Policies

1. Growth of Modern Bioenergy

According to the International Energy Agency (IEA) and REN21, modern bioenergy use has been growing at an average of 3% per year between 2010 and 2022. Countries in Europe, North America, and Asia have adopted frameworks to expand biomass electricity generation and reduce reliance on traditional, polluting biomass use. Modern policies focus on ensuring bioenergy contributes to climate goals without compromising food security or forests.

2. Biofuel Mandates

Biofuel blending mandates are among the most common biomass energy policies. Nations such as Brazil, the United States, and Indonesia have implemented blending ratios (B20, B30, B50), which require biodiesel or ethanol to be mixed with conventional fuel. These policies not only reduce emissions from transportation but also stimulate domestic agricultural industries that supply feedstock.

3. Incentives and Sustainability Standards

Governments provide subsidies, feed-in tariffs, and tax incentives for bioenergy projects. At the same time, sustainability standards are being enforced to ensure biomass does not come from deforestation or land-use change. The European Union, for instance, requires strict sustainability criteria under the Renewable Energy Directive (RED II). Such measures balance renewable energy expansion with biodiversity and environmental protection.

4. Integration with Net Zero Targets

Many countries have pledged to achieve net-zero emissions by mid-century, and bioenergy is considered essential in hard-to-abate sectors such as aviation, shipping, and heavy industries. Co-firing biomass in coal plants, combined with carbon capture technologies (BECCS), is increasingly seen as a pathway to achieve negative emissions. However, policies must carefully regulate land-use impacts and supply chain sustainability.

Biomass Energy Policies in Indonesia

1. National Energy Policy Framework

Indonesia’s energy transition relies heavily on renewable energy, with biomass positioned as a key contributor. Under Presidential Regulation No. 5/2006 on National Energy Policy, Indonesia aims to increase the share of renewable energy in the national energy mix. The National Electricity Supply Plan (RUKN and RUPTL) sets targets for biomass-based electricity generation, particularly through co-firing in coal plants.

2. Biodiesel Mandates

Indonesia has one of the world’s most ambitious biodiesel blending programs. Currently, the country enforces a B40 mandate, and discussions are underway to move toward B50. This policy supports domestic palm oil production, reduces fuel imports, and cuts greenhouse gas emissions. However, it also raises debates around land use, food security, and deforestation risks.

3. Biomass Co-firing in Coal Plants

The government is actively promoting biomass co-firing to reduce carbon intensity in coal-fired power plants. By 2025, Indonesia aims to generate nearly 20 TWh from biomass, largely through co-firing. While promising, this approach faces challenges related to feedstock availability, logistics, and sustainability certification. Unregulated harvesting of wood from natural forests has raised environmental concerns among civil society groups.

4. Key Challenges in Implementation

  • Weak monitoring and enforcement: Policies exist, but enforcement is limited, leading to unsustainable biomass harvesting.
  • Technological and financial barriers: Advanced biomass technologies require large investments, which are not yet widely available in Indonesia.
  • Feedstock sustainability: Land-use competition, biodiversity loss, and soil degradation remain major issues.
  • Policy inconsistency: Overlapping regulations and a lack of clear long-term roadmaps hinder investor confidence.

Opportunities and Policy Recommendations

To strengthen biomass energy policies and ensure long-term sustainability, Indonesia can adopt the following strategies:

  • Sustainability certification: Establish transparent certification systems to guarantee biomass sourcing does not cause deforestation.
  • Financial incentives: Expand subsidies, feed-in tariffs, and carbon credit mechanisms to attract investments.
  • Technology development: Increase research and innovation in advanced bioenergy, such as pyrolysis and gasification, to improve efficiency.
  • Clear long-term roadmap: Provide consistent policy signals aligned with net zero targets to boost investor confidence.
  • Community involvement: Engage local communities in biomass supply chains to create jobs and support rural development.

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Conclusion

Biomass energy policies are playing an increasingly vital role in the global energy transition. Worldwide, policies focus on modern bioenergy expansion, biofuel mandates, and integration into net-zero strategies. In Indonesia, biodiesel programs and co-firing initiatives demonstrate a strong commitment, but challenges remain in sustainability, enforcement, and technology deployment.

If designed with transparency and long-term vision, biomass energy policies can create a win-win solution: reducing emissions, supporting farmers and local communities, and ensuring a cleaner and more sustainable energy future.

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