If Finland continues to rely on excessive logging and carbon dioxide emissions, it may not achieve its goal of carbon neutrality by 2035. This is according to Varpu Sairinen, who raises concerns over the tax breaks for burning biomass like wood. Unlike fossil fuels and peat, the Finnish government does not currently impose a tax on biomass used for heating, resulting in an annual loss of 480 million euros in tax revenue.
This loss could have been used for other purposes such as reducing cuts in housing allowance or freezing index increases. A report by consulting company AFRY suggests that implementing a tax on biomass could transition the use of heat pumps and electric boilers, particularly in district heat production. Despite claims from bioenergy companies, burning wood is not environmentally friendly and can result in higher carbon dioxide emissions compared to coal.
Finland has shifted from a greenhouse gas emissions sink to a source, largely due to high logging volumes. Approximately 60 percent of wood biomass harvested in Finland is eventually burned for energy, leading to increased emissions and reduced carbon sinks. By encouraging the burning of wood and hindering emission-free energy sources, Finland is working against its own climate laws. The state should avoid using tax breaks to support the cutting down of forests for energy production.
