North American organizations have issued an open letter urging Japanese banks and power companies to implement stricter sustainability policies for wood biomass, emphasizing the need to align with ESG principles and carbon neutral strategies. The letter highlights concerns over environmental degradation, carbon emissions, and community impacts caused by current biomass practices. 

The groups call for comprehensive policies to ensure that biomass sourcing does not harm primary or natural forests and advocate for full disclosure of biomass-related CO2 emissions in line with the GHG Protocol. They stress that wood biomass fuel should only originate from sustainable sources like unused wood, waste wood, or sawmill residue, avoiding the destruction of whole trees and primary forests. 

The letter also criticizes major wood pellet producers, including Drax, for repeated environmental violations. A recent investigation revealed over 11,000 regulatory breaches linked to Drax’s U.S. wood pellet facilities, underscoring the urgent need for better oversight. 

Key demands include requiring power generators to verify that their fuel does not contribute to forest degradation and encouraging banks to adopt the cascading use principle to maximize resource efficiency. The organizations also urge financial institutions to account for financed CO2 emissions across the entire biomass lifecycle. 

Signed by groups like Biofuelwatch and Friends of the Earth US, the letter seeks a response from Japanese banks by January 7, 2025. The appeal underscores the importance of incorporating ESG principles and carbon neutral strategies into biomass power generation to ensure sustainability and protect global forests. 

This effort reflects growing global scrutiny of biomass as a renewable energy source and aims to hold financial institutions and power operators accountable for their environmental impact. 

Sources:  

https://www.bioenergy-news.com/news/north-american-open-letter-implores-japanese-banks-to-ensure-biomass-sustainability/ 

https://mightyearth.org/article/letter-urging-japanese-banks-and-traders-to-stop-unsustainable-biomass-imports-and-investments/ 

https://www.gleaf.in/news/japan-targets-40-50-power-supply-from-renewables-by-2040 

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