Under U.S. federal policy, wood pellets are classified as carbon neutral renewable energy. That label, assigned in an overlooked 2018 rider buried in a massive appropriations bill, is worth billions of dollars. The people who lobbied hardest to put it there were investors who may make billions as a result of that controversial decision. Enviva, the world’s largest wood pellet producer, was built with private equity money. Riverstone Holdings first invested in 2010 through its $4.3 billion Riverstone/Carlyle renewable energy fund, then led a recapitalization worth more than $1 billion in 2020, bringing in money from investment firms Goldman Sachs, Mubadala, Fortress, and Neuberger Berman. None of them were betting on wood, but on a label. Take away the renewable designation and the business disappears. It only works when governments agree to count pellets as “clean.” …Congress should immediately strip the carbon neutrality language from spending bills, keep biomass out of clean energy tax credits, and let the EPA follow the evidence.