The effect of CO2 emission trade on the wood fuel market in Finland

In this study, the effect of emission trade on the development of the wood fuel market and on the balance of the demand and supply of wood fuels in Finland was evaluated. The demand for wood fuels was estimated to double by the year 2010 to almost 50 TWh, of which 17 TWh can be forest chips. In 2010, the supply potential of by-products was estimated to be 28 TWh, of which 11 TWh was marketable outside the internal use of the forest industry. Correspondingly, the theoretical potential of forest chips was estimated to be 51 TWh and the techno-economical potential 24 TWh, which made up the potential market supply. As a result of the regional optimization model, the energy use of wood fuels was 33 TWh, which was 68% of the potential demand in the emission trade situation. Regionally, the potential demand for wood fuels for energy use was higher than the supply in all provinces.