The Burning Question

The report examines the financial and environmental impact of the UK's carbon tax exemption for biomass power plants, specifically focusing on Drax, Lynemouth, and MGT Teesside. It argues that biomass is not inherently carbon neutral and that the current tax break diverts funds from other low-carbon renewables. The author estimates that the government could forgo up to £6.4 billion in carbon taxes by 2027 based on high-end emission scenarios. The report recommends removing the tax break, tightening sustainability criteria, and requiring full life cycle assessments for Bioenergy with Carbon Capture and Storage (BECCS) projects.

• Large biomass power stations in the UK currently receive an unfair tax break because biomass is assumed to be carbon neutral under the UK Carbon Price Support and the EU Emissions Trading System, meaning they do not pay for carbon emissions.
• The estimated annual carbon tax break for large UK biomass power stations is £333 million based on a mid-range emissions estimate, with £246 million of that attributed to Drax alone. Under high-end emission estimates, this tax break could reach £754 million per year, with £557 million at Drax.
• Between 2012 and 2027, the UK government is projected to forgo between £2.8 billion (mid-range estimate) and £6.4 billion (high-end estimate) in carbon taxes.
• Direct subsidies for large biomass power plants are estimated to cost energy billpayers more than £1 billion this year. Total direct support for these plants through 2027 is calculated at £13 billion, with £10 billion allocated to Drax.
• Scientific evidence suggests that burning wood releases more CO2 per unit of electricity than coal due to higher moisture content, and the resulting atmospheric carbon increase can take decades to be reabsorbed, which is incompatible with Paris Agreement timescales.
• Current sustainability criteria for wood used in UK power stations do not guarantee that the fuel is low-carbon, as high-carbon sourcing scenarios would still be classified as sustainable under the existing framework.
• Because biomass is not inherently carbon neutral, Bioenergy with Carbon Capture and Storage (BECCS) projects are not guaranteed to deliver negative emissions unless a full life cycle assessment proves they are net carbon negative within a decade.

APA

MacDonald, P., & Moore, C. (2020). The Burning Question. Ember. https://ember-energy.org/app/uploads/2024/10/2020-Ember-Burning-question-FINAL-1.pdf

Chicago

MacDonald, Phil, and Charles Moore. The Burning Question. Ember, 2020. https://ember-energy.org/app/uploads/2024/10/2020-Ember-Burning-question-FINAL-1.pdf.

Wikipedia

{{cite report |last1=MacDonald |first1=Phil |last2=Moore |first2=Charles |title=The Burning Question |publisher=Ember |date=June 2020 |url=https://ember-energy.org/app/uploads/2024/10/2020-Ember-Burning-question-FINAL-1.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{macdonald2020burning, author = {MacDonald, Phil and Moore, Charles}, title = {{The Burning Question}}, institution = {Ember}, year = {2020}, month = jun, url = {https://ember-energy.org/app/uploads/2024/10/2020-Ember-Burning-question-FINAL-1.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }