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The Forest Industry Plays a Significant Role in Mitigating Climate Change

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In Finland’s forest industry, as much as 92 percent of factory energy production already comes from renewable sources. According to forecasts, it will be possible to reduce fossil emissions to zero by 2035. The forest industry’s climate roadmap outlines research-based proposals for measures to accelerate emission reductions.

The first climate roadmap was published in 2020, and even then it demonstrated that the industry bears a major responsibility and role in combating climate change. The updated roadmap shows that factories in the sector could become nearly fossil-free within ten years. Forest growth can be increased while simultaneously safeguarding biodiversity and preventing forest damage.

According to the Finnish Forest Industries Federation, the climate impacts of the sector must be assessed globally. Demand for forest industry products continues to grow worldwide, and the federation emphasizes the importance of ensuring that production remains in Finland.

“The least desirable development is one where forest industry growth shifts outside Finland. In the forest sector, the risk of carbon leakage and harvest leakage is real,” says Ville Hulkkonen, Director of Climate and Energy Affairs at the Finnish Forest Industries Federation.

The Root Cause of Climate Change Lies in Fossil Emissions

The problems of climate change are caused by fossil emissions, which must be significantly reduced. In Finland, 92 percent of the forest industry’s factory energy production is already renewable, and according to the federation, it is clear that the remaining fossil emissions must also be cut.

Several factors make the reduction of fossil emissions possible: electrification of the industry, the use of AI and digitalization, the replacement of fossil fuels with renewable alternatives, and improvements in energy and material efficiency. In addition, possibilities to capture and utilize carbon dioxide generated in bioenergy production can be explored.

Studies conducted for the updated roadmap show that reducing emissions in the logistics chain is challenging. Nevertheless, fossil emissions must also be reduced in logistics. According to a study by Afry, emissions could be cut in particular by increasing rail transport. This shift will require commitment and action from the state as well.

“Based on the study, it is clear that increasing the volume of freight rail transport is an important climate policy issue,” Hulkkonen states.

The Decline of Carbon Sinks Cannot Be Explained by Harvest Levels

A study by the Natural Resources Institute Finland, conducted as part of the roadmap, shows that between 2021 and 2025, 17 million tons of carbon dioxide disappeared from the 2019 carbon sink of forest land (trees and soil). According to the Forest Industries Federation, such massive differences cannot be explained by harvest levels. Instead, the decline in carbon sinks results from changes in calculation methods and improved knowledge about trees, soil, and climate warming.

“It has unfortunately become clear that when Finland set its ambitious 2035 carbon neutrality target, too much faith was placed in the power of forest sinks,” Hulkkonen says.

According to him, there are many uncertainties and risks related to carbon sinks, some of which have already materialized. In addition, the abrupt end of wood imports and the increased demand for energy wood have influenced the overall picture.

“There are significant opportunities to strengthen forest growth, and it is now more important than ever to focus on realizing them,” Hulkkonen emphasizes.

Another study by the Natural Resources Institute Finland presents a climate scenario in which timely and active forest management measures increase the annual growth of trees in the long term from the current 103 million cubic meters to as much as 120 million cubic meters. This would also significantly enhance carbon sequestration and carbon storage in living trees.

In the future, forests could therefore provide even greater climate, environmental, and economic benefits. The forest industry has the potential to contribute solutions to key climate policy questions both domestically and at the EU level.