Abstract Against the background of an increasing global demand for bio-energy, the need for sustainability standards and a certification system ensuring sustainable production and trade has grown rapidly. Nevertheless, there is currently no specific forum for discussions on how to deal with biomass trade at the multilateral level. Distortions in agricultural and energy trade regimes, the myriad of standards and the lack of a clear biomass classification in the multilateral trade regime suggest that bio-energy products may not deliver sustainable development gains for all trading partners. This paper analyses then the global impact of bio-energy policies on biomass production and trade, paying particular attention to sustainable development in the bio-energy sector. It examines how a possible reduction and elimination of trade barriers as well as a phasing out of trade distorting support measures would contribute to the development of a global sustainable bio-energy market.