The European wood pellets market has been the world's largest for more than 15 years, driven by EU renewable energy policies authorising EU Member States to subsidise energy companies burning wood and the purchase of wood pellets stoves and boilers. This caused considerable additional logging and air pollution.
But after years of very fast growth, 2022 saw a brutal reversal. According to industry data, the consumption of wood pellets in Europe went down by 6 per cent. While residential demand continued to grow, particularly in France and Germany, the industrial sectors’ demand decreased by almost 15 per cent, with the amount of electricity produced from burning wood pellets going down in Europe for the first time ever.
Our briefing analyses the causes of this change and possible future developments.