GLOBAL WARMING,There is uncertainty to what degree making heat or electricity by burning wood pellets contributes to global climate change, as well as how the impact on climate compares to the impact of using competing sources of heat. Factors in the uncertainty include the wood source, carbon dioxide emissions from production and transport as well as from final combustion, and what time scale is appropriate for the consideration.

According to the Biomass Energy Resource Center, the assumption of carbon neutrality "has shifted to a recognition that the carbon implications of biomass depend on how the fuel is harvested, from what forest types, what kinds of forest management are applied, and how biomass is used over time and across the landscape.”In 2011 twelve prominent U.S. environmental organizations adopted policy setting a high bar for government incentives of biomass energy, including wood pellets. It states in part that, biomass sources and facilities qualifying for (government) incentives must result in lower life-cycle, cumulative and net GHG and ocean acidifying emissions, within 20 years and also over the longer term, than the energy sources they replace or compete with.