German bioenergy associations have criticised government plans to exclude biomass from the definition of renewable energy sources in the country’s electricity tax law.
The proposal, part of a draft revision of the Energy and Electricity Tax Acts by the Federal Ministry of Finance, would strip biogas and wood-fired plants of their current renewable status for tax purposes.
“A blanket exclusion would equate biomass plants with coal and gas power stations – a slap in the face for the entire sector,” said Sandra Rostek, head of the HBB industry alliance.
She noted that biomass is recognised as renewable under both EU law and key German legislation.
The ministry argues the change would cut bureaucracy by removing the need for sustainability certification.
Rostek called this “a pretext”, pointing out that plants already undergo certification to qualify for EEG subsidies, meaning no extra paperwork is involved.
The associations welcomed the continuation of tax relief at the EU minimum rate for manufacturing, agriculture and forestry.
However, they warned that this is no substitute for full exemption, particularly for operators who consume electricity on-site or supply it directly to third parties, due to the high administrative burden involved.
On energy tax, the HBB is urging the government to exempt sustainable biofuels used in heavy goods transport, agriculture and forestry, arguing that electrification is not viable in these sectors. “
Tax incentives for sustainable biofuels would support climate protection where renewable electricity is not an option,” Rostek said.
“Biomass must remain classed as renewable under German electricity tax law”
