Policy Factors and Incentives

For forest bioenergy to become competitive with fossil fuels, some incentives are needed. Existing incentive programs seem to focus on energy producers (processors) and consumers with few providing incentive to forest landowners. In addition, there is a need for better integration and coordination of different incentive programs to generate a greater impact on bioenergy development.

The production and utilization of forest biomass and bioenergy will generate social, economic, and environmental benefits. Some of these benefits, such as reductions in greenhouse gas emissions and enhancement of national energy security, accrue not only to the users of bioenergy but also to the entire society. This provides justification for governmental support of biomass and bioenergy development. Such support could be in the form of technical assistance, financing options, and incentives and cost sharing for bioenergy development and consumption. This section will discuss the following relevant policy factors and incentive programs.

• Existing Incentive Programs for Biomass and Bioenergy Production and Consumption
• Incentives Needed for Making Forest Biomass and Bioenergy Competitive
• Experience in Other Countries