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Environment & Climate

Japan biomass demand drives Indonesian deforestation, environmental groups report

Indonesian biomass production expands to meet Japanese energy needs, according to ABC News.

The short version

  • Satellite analysis by environmental groups indicates wood pellet production in Indonesia is driving tropical deforestation.[ABC News]
  • Japan imported a record 8.64 million tons of wood pellets in 2025, with imports from Indonesia surging over 500% since 2023.[ABC News]
  • At least 45 concession permits covering over 750,000 hectares of natural forest have been granted in Indonesia.[ABC News]
  • Researchers warn that policy loopholes and existing 20-year subsidies may allow deforestation-linked wood to enter Japan's market.[ABC News]

Key facts

  • Expanded wood pellet and chip production in Indonesia threatens tropical forests, key biodiversity areas, and Indigenous territories.[ABC News]
  • Japan imported 8.64 million tons of wood pellets in 2025, with imports from Indonesia reaching 402,310 tons.[ABC News]
  • At least 45 biomass concessions covering more than 750,000 hectares of natural forest have been granted in Indonesia.[ABC News]
  • Japan has stopped subsidies for future large-scale biomass developments, but certified existing projects remain eligible for subsidies for up to 20 years after operations begin.[ABC News]

What remains uncertain

  • The degree to which Japanese due diligence loopholes will allow deforestation-linked pellets to enter the market long-term remains a point of concern among environmental researchers.[ABC News]

Sources

Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.