Changes to the RED BP scheme: integrated requirements of the RED III Directive, clearer rules for participants and wider participation opportunities

The changes to the RED BP scheme, which will enter into force on 1 August 2025, mark a further step in developing the functionality of the scheme and respond to the latest legal and market needs. The changes are implemented following the adoption by the Seimas of the Republic of Lithuania of amendments to the Law on Renewable Energy of the Republic of Lithuania, which transpose the provisions of Directive (EU) 2023/2413 of the European Parliament and of the Council of 18 October 2023 amending Directive (EU) 2018/2001, Regulation (EU) 2018/1999 and Directive 98/70/EC as regards the promotion of energy from renewable sources. These updates also reflect BALTPOOL’s commitment to consistently improve the RED BP scheme, expand its capabilities and ensure the smoothest possible participation experience for all market participants.

Substantial changes:

1. Updated rules and documents. From now on, the operation of the RED BP biomass sustainability scheme is no longer regulated by the Conditions for Trade in Biomass Products, but by the Rules of the Biomass Sustainability and Greenhouse Gas Emissions Saving RED BP (hereinafter referred to as the RED BP Rules) and the List of Terms and Abbreviations Used in the Biomass Sustainability and Greenhouse Gas Emissions Saving Scheme RED BP.

All updated documents can be found on our website:

• Rules of the Biomass Sustainability and Greenhouse Gas Emissions Saving Scheme RED BP
• List of Terms and Abbreviations Used in the Biomass Sustainability and Greenhouse Gas Emissions Saving Scheme RED BP
• Conditions of Trade in Biomass Products

2. Updating of the RED BP raw materials and (or) biomass quantity conversion coefficients. Considering the experience of the last two years, the collected data and the comments made by the scheme participants, the methodology for calculating the conversion coefficients for sustainable biomass has been reviewed and updated:

• conversion to loose cubic metres is carried out using dry mass values (provided for in Annex 1 to the RED BP Rules);
• a unified density coefficient for converting solid cubic metres to loose cubic metres of biomass has been established – 0.36 solid cubic metres/loose cubic metres (provided for in Annex 2 to the RED BP Rules).

It is important to note that conversions according to the new coefficients (Annexes 1 and 2 to the RED BP Rules) shall be applied from 1 January 2025 (inclusive):

• the amount of biomass supplied under RED BP contracts;
• the amount of biomass raw materials declared under RED BP raw material declarations.

3. New data declaration options for biomass suppliers. The RED BP scheme data declaration chain defines new entities “Intermediary” and “Manager of the First RED BP Biomass Raw Material Collection Point”. It is expected that point managers and biomass suppliers who purchased RED BP biomass raw materials not directly from the primary owners, but through intermediaries, can declare RED BP biomass raw material data in the RED BP system for their entire supply chain from the primary owner to themselves (declaring RED BP scheme participant). We invite you to familiarize yourself with the updated data declaration schemes.

4. New opportunities for the Latvian and Estonian markets. From now on, according to the RED BP scheme, it will be possible to declare “Other (non-forestry and non-agricultural) residues” used for biomass production, i.e. residues from the wood processing industry, residues from clearing protection zones of infrastructure facilities from overgrowing shrubs and trees, and residues from clearing non-forest land plots and common areas (parks), whose country of origin is Latvia or Estonia. This type of raw material is formed in order to maintain the intended use of land for other purposes, not classified as forest, by clearing it of spontaneously overgrowing shrubs and trees.

5. Procedure for inventory RED BP raw material remainder and transfer of the balance to the next year. After the end of the calendar year, a participant in the RED BP scheme who has a RED BP biomass raw material reminder in the RED BP system and wishes to transfer it to the next calendar year must carry out an inventory of such raw material remainder and, no later than 28 February of the next calendar year, submit to the RED BP system a RED BP raw material inventory act that meets the requirements of these RED BP rules and photographs that clearly record the raw material remainder.

These changes contribute to the consistent improvement of the RED BP scheme – updated documents ensure clarity and transparency, and improved rules and processes help biomass market participants to meet sustainability requirements more smoothly. We invite you to familiarize yourself with the new documents on our website, and if you have any questions, contact the customer service team. Let’s create a more advanced and open biomass market together!