In an era of accelerating change, the need to create energy systems that guarantee a secure and affordable energy supply globally while protecting the environment is strengthening the momentum for a global energy transformation. That transformation involves moving away from fossil fuels towards renewable sources of energy, supported by increased efficiency and the reduction of total overall energy consumption. Bioenergy will have essential roles in all sectors in this energy transformation and in building a climate-friendly circular carbon economy that delivers economic and social benefits. 

Bioenergy is the largest source of renewable energy in use today, globally accounting for 70% of the renewable energy supply and for 10% of the total primary energy supply in 2017. Bioenergy has key roles as a source of energy and as a feedstock that can replace fossil fuels in end-use sectors (industry, transport and buildings), and it can contribute to balancing an electricity grid that has high shares of variable renewables, such as solar PV and wind. Bioenergy technologies are developing rapidly and have significant potential to scale up by 2050. The share of primary energy met with modern bioenergy could increase almost five times from 5% to 23% in 2050. Meanwhile, traditional uses of bioenergy, which account for a large share of bioenergy demand today, must be phased out. 

In sectors that are particularly challenging to decarbonise, such as long-haul or heavy freight transport and some industrial sectors (i.e. iron and steel, cement and lime, aluminium and chemicals and petrochemicals), biomass use will be significant. 

Biofuels could play an important role in the transport sectors as an alternative to fossil fuels, complementing the greater use of electrification. IRENA’s analysis indicates that a five-fold increase in liquid biofuels use could be needed, rising from 153 billion litres in 2017 to 652 billion litres in 2050. In the buildings sector, modern biomass use could play an increasing role in heat production in district heating systems and building-scale furnaces. It could also produce electricity and heat in combined heat and power (CHP) plants. In some industry sectors, biomass may need to play an expanded role as feedstocks to replace fossil feedstocks and as a fuel to produce low, medium and high-temperature heat, potentially providing up to one-quarter of the total final energy consumption in the sector. 

However, there are some key limiting factors. Barriers include the current high cost of converting biomass into usable fuels and feedstocks and the challenge of providing a sufficient supply of sustainable biomass without causing environmental or social harm. 

In the circular carbon economy, bioenergy is just one part of the wider biomass system that supports the basic needs of humans by providing food, feed, fibre, fine chemicals, fertiliser and fuels. Yet bioenergy can strengthen the whole biomass system by creating revenue streams for residues and wastes generated along supply chains that would otherwise be burned onsite, wasted or disposed of. Bioenergy can help prevent environmental problems currently caused by those residues and wastes, such as methane emissions, whilst improving the economics of farming and forest management. 

The use of biomass can lower overall atmospheric CO2 levels if that use is managed and regulated properly. When biomass is used for energy purposes, it generates positive effects from avoided CO2 emissions when the whole life cycle is considered. Similarly, when biomass is used in bio-based materials (i.e. construction, furniture and plastics), it increases the biogenic carbon stored in materials throughout the products’ lifetimes, and in some circumstances, may have the positive effect of sequestering CO2 for the medium or long term. 

If bioenergy is used with carbon capture and storage (BECCS), then the carbon is not returned to the atmosphere, leading to a net reduction of CO2 (i.e. negative emissions). Although BECCS is currently not deployed at the industrial scale, the technology could be used for applications such as bioethanol production, waste to energy plants, power generation, and industries like pulp and cement.

There is significant potential for biomass to contribute to energy and environmental objectives, but it must be produced in ways that are environmentally, socially and economically sustainable. Biomass use in energy includes a wide range of options, and the environmental, social and economic benefits depend on many factors and can vary by location. Confidence in the sustainability of bioenergy is an important requirement for its widespread use, and sustainability assessments are needed to consider the risks associated with each specific bioenergy route. 

Despite strong drivers for the uptake of bioenergy, multiple barriers stand in the path of its further development globally. These vary depending on specific markets and renewable energy technologies. They include challenges such as the high cost of many bioenergy options and the lack of access to finance. There also are policy barriers, including the lack of specific regulations, and cultural and awareness barriers. In particular, the deployment of biofuels is highly affected by global trends in oil prices. The recent abrupt decline in oil prices during the COVID-19 crisis, for example, is threatening the development and use of biofuels. If the current low fossil fuel prices are maintained, biofuels will struggle to compete with conventional fuels. 

Addressing these barriers will be fundamental for a successful energy transition in many countries and regions. Governments have important roles to play in providing measures to support deployment and technological innovation. Those measures can include grants, feedin tariffs and certificate schemes, as well as clear policy and regulatory frameworks, such as ambitious targets to drive markets and regulations for waste and blending. Policies and regulations could also help in ensuring that the appropriate infrastructure is in place for the greater uptake of bioenergy. For example, the availability of district heating systems is a powerful enabler for bioenergy heat supply in urban areas. Other enabling policy interventions include improving awareness of the benefits associated with bioenergy by providing clear and reliable information to consumers and potential investors; creating a level playing field through the removal of subsidies for fossil fuels; and introducing carbon pricing or other taxes, levies and duties to put a price on the environmental impacts of fossil fuel energy use. 

G20 member states have a strong economic and political interdependence, with a shared interest in creating a sustainable and stable global environment. As part of the steps needed to achieve the energy transformation, this report argues that G20 countries together can foster the development, deployment and spread of bioenergy technologies. Ultimately, the success of the energy transition in mitigating the climate crisis will depend on the policies adopted, the speed of their implementation and the level of resources committed. In our interconnected world, international cooperation and solidarity are not just desirable, they are vital for addressing climate change, economic inequality and social injustice.