In recent years, the production of pellets derived from forestry biomass to replace coal for electricity generation has been increasing, with over 10 million tonnes traded internationally—primarily between United States and Europe but with an increasing trend to Asia. Critical to this trade is the classification of woody biomass as ‘renewable energy’ and thus eligible for public subsidies. However, much scientific study on the net effect of this trend suggests that it is having the opposite effect to that expected of renewable energy, by increasing atmospheric levels of carbon dioxide for substantial periods of time. This review, based on recent work by Europe's Academies of Science, finds that current policies are failing to recognize that removing forest carbon stocks for bioenergy leads to an initial increase in emissions. Moreover, the periods during which atmospheric CO2 levels are raised before forest regrowth can reabsorb the excess emissions are incompatible with the urgency of reducing emissions to comply with the objectives enshrined in the Paris Agreement. We consider how current policy might be reformed to reduce negative impacts on climate and argue for a more realistic science‐based assessment of the potential of forest bioenergy in substituting for fossil fuels. The length of time atmospheric concentrations of CO2 increase is highly dependent on the feedstocks and we argue for regulations to explicitly require these to be sources with short payback periods. Furthermore, we describe the current United Nations Framework Convention on Climate Change accounting rules which allow imported biomass to be treated as zero emissions at the point of combustion and urge their revision to remove the risk of these providing incentives to import biomass with negative climate impacts. Reforms such as these would allow the industry to evolve to methods and scales which are more compatible with the basic purpose for which it was designed.

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IntroductionTransformative action points to move towards a Circular Bioeconomy of Wellbeing Focus on sustainable wellbeing Box I Gross Domestic Product versus Genuine Progress Indicator Invest in nature and biodiversityBox II Renewable natural capital and nature-based solutions are key for a circular bioeconomy Box III Connecting private forest owners for collective biodiversity protection in Denmark Generate an equitable distribution of prosperity Box IV Payments for watershed protection in Ecuador Box V Bioplastics as a means for territorial regeneration in Italy Rethink land, food and health systems holistically Box VI Regenerative agriculture Box VII Forests for water-from global to localBox VIII Agroforestry to support deforestation-free cocoa production Transform industrial sectors Box IX ReSOLVE Framework for circularity Box X Wood-based textiles Box XI Sustainable biofuel for diesel and jet enginesBox XII A nanocellulose vehicle Reimagine cities through ecological lenses Box XIII Engineered wood products for reimagining building construction Box XIV The association between urban green spaces and human health Enabling action points to move towards a Circular Bioeconomy of Wellbeing Create an enabling regulatory framework Box XV The US BioPreferred public procurement Programme Deliver mission-oriented innovation to the investment and political agendasBox XVI The Bio-based Industries Joint Undertaking (BBI JU) Enable access to finance and enhance risk-taking capacity Box XVII The European Circular Bioeconomy Fund (ECBF) Intensify and broaden research and educationBox XVIII Amazonia 4.0 A Call to Action References ContentK2A Knowledge to Action 9• Economic and industrial sectors relying on biological resources and nature-based solutions (food, wood industry, bulk and speciality chemicals, construction, packaging, textiles, pharmaceuticals, bioenergy and all sectors benefiting from biobased solutions or ecosystem services such as nature tourism or water supply).

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