In Lithuania, branches and treetops left after logging – once considered forest waste – have become an essential source of clean energy. In 2024, wood chips from these residues became the dominant biomass product traded on Baltpool’s biomass exchange – the central platform connecting suppliers with heating companies – providing biofuel at the real market price for plants across the country. What was once left to decay in the forest is now reliable energy for homes and businesses.

Transparency is at the core of biomass trading on the exchange auctions: all procurement follows public procurement principles, products are standardized, participants are strictly categorized based on financial strength and production capacity and all processes are fully digital. In addition, a publicly available biomass reference price was introduced and is now  key benchmark for authorities, market players, and observers in Lithuania and beyond. These measures ensure trust, competitiveness, and efficiency across the market.

Yet energy security is only part of the story. Under the RED II and RED III directives, all biomass must also meet strict sustainability and greenhouse gas reduction criteria. To meet this challenge, the Lithuanian government appointed Baltpool to implement the RED BP national sustainability scheme – linking European policy with practical solutions. The RED BP scheme ensures traded biomass is verifiably sustainable while keeping administrative burdens low. Today, more than 80% of all biomass purchased on Baltpool’s exchange already complies through RED BP. Full traceability – from raw material origin to final buyer – guarantees confidence that every unit meets EU requirements.

The Lithuanian experience with Baltpool is an example of how it is possible to translate European and national regulations into clear, workable processes for the industry. By connecting the entire value chain – from forest residues to heating plants – the platform acts as the link between regulations and business, turning complex requirements into practical solutions and ensuring balanced value for businesses and regulators.