Drax Investigation Closes on Quest for Sustainable Wood Sourcing

The City watchdog has officially ended its inquiry into the operator of the Drax power plant following a thorough review. The Financial Conduct Authority emphasized that it examined extensive documentation concerning Drax’s wood pellet sourcing for the Selby plant, but concluded there was insufficient evidence to warrant further action. This development comes months after controversial findings by the BBC Panorama documentary in 2022 highlighted potential illegal deforestation from Canadian forests. Drax has since committed to a £25 million redress scheme in response to Ofgem’s findings, which pointed to weaknesses in data governance. The government now plans to reduce its subsidies to the company, aiming for 100% sustainable wood usage and a diminished role for the Drax plant moving forward. Regulatory pressure continues as stakeholders remain vigilant over the company’s renewable energy claims.

Source link