Frequently Asked Questions
Everything you need to know about the Finnish Forest Industry
Here you’ll find answers to the most common questions about what the forest industry does, how it contributes to the economy and sustainability, and what policies shape its development.
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Why is forest-based bioeconomy strategically important?
It exemplifies a high-value, innovation-driven sector—especially in countries like Finland—with strong rural roots, self-sufficiency in raw material and technology, and a significant exporter, making it a key player in Europe’s green transition. The industry actively develops and enables environmental, economic, and social sustainability, supporting regional vitality and cohesion while strengthening Europe’s resilience and long-term competitiveness.
How does forest-based bioeconomy support rural development?
The forest sector fosters jobs, infrastructure, and tax revenues in rural areas, with forest sector’s share of value added in bioeconomy reaching up to 56 % in countries like Finland and remaining substantial across much of Central and Eastern Europe.
Why should biobased renewable materials be considered "circular" alongside recycled materials in EU Circular Economy legislation?
The EU Commission is increasingly enforcing the use of recycled materials in different product-related legislations. While the forest industry supports this approach, we don’t see the use of mandatory recycled content quotas feasible in paper-based applications. The collection and use rates of recycled paper are already very high in Europe. In addition, the use of recycled content in some applications, such as food contact materials, has several restrictions. This is especially true in plastic packaging. Hence, the biobased renewable content should be recognized as circular input alongside the recycled content in different product-related legislation. Recognizing renewable content as circular input also helps reduce reliance on fossil carbon. Considering quotas for circular input instead of only recycled input also supports the level playing field for bio-based innovations.
Isn’t recycling alone enough to achieve the EU’s ambitious circular economy goals?
Recycling is crucial but cannot meet all material needs. In the case of paper-based materials, fibre quality and supply decline over time. Hence, fresh renewable materials are still required, especially for uses where recycled content is not suitable, such as food grade packaging. Together, high recycling rates and sustainably sourced bio‑based inputs enable a truly circular, fossil‑free system that supports, not only circular economy, but also climate goals.
How can the forest industry increase wood-based production without harming EU’s forests or climate goals?
The Finnish Forest industry boosts wood-based production by harvesting within regeneration limits and following strict sustainability rules. Active, science-based forest management – replanting, protecting biodiversity, and maintaining carbon sinks – ensures increased wood use remains climate safe and supports a healthy circular bioeconomy.
What does competitiveness mean in the context of the forest sector?
The competitiveness of Europe’s forest-based bioeconomy is about creating favourable operating conditions for globally competitive companies, enabling them to operate, invest and scale up in Europe within a stable, predictable and a level-playing-field business environment. The forest industry requires an adequate supply of sustainably sourced wood. This is supported by active measures that strengthen forest growth and resilience, while ensuring that biodiversity and other environmental objectives are achieved in a predictable and efficient manner. Competitiveness also depends on reliable and efficient logistics, a skilled workforce, and the adaptability of labour markets. A stable operating environment further requires credible climate, energy, innovation and trade policies.
How do climate actions proceed at the Finnish forest industry mills?
Finnish forest industry is energy-intensive, but not emission-intensive. Its fossil emissions at the mills could reach zero in as early as ten years. This has been achieved mainly by investing in energy efficiency and renewable energy as requested in EU directives (EED, RED, ETS). Reducing mill emissions and investing in new technology require well-resourced companies and an operating environment that supports them. Therefore, it is extremely important to provide sufficient carbon leakage protection for industry and incentives for early movers. With the development of technology and products markets, the forest industry may have the opportunity to create new business e.g. from wood-based carbon dioxide captured in the manufacturing of wood-based products as a side stream of production.
How is industry combining wood procurement and maintaining forest sinks in the long term?
The Finnish forest industry and its stakeholders keep improving the growth and vitality of forests. This promotes both forest adaptation to climate change and the availability of raw materials, whilst also strengthening the carbon sinks of forests. Forest adaptation to climate change is promoted by managing forests actively, whilst taking biodiversity into account throughout the forest’s rotation period. The early-stage management of forests is of great importance for the further development of growing stock. Therefore, incentives for the management of seedlings and young forests must be secured also in the future. Realism is needed when it comes to issues concerning forest sinks. Uncertainties must be considered in the EU carbon sink targets (LULUCF).
How do industries’ products contribute to climate, circular economy and societies?
The industry produces climate-friendly products. Products made from wood reduce negative climate impacts when they replace products that cause fossil emissions. Forest industry products are prime examples of the circular economy in practice. Wood-based products act as carbon storage throughout their lifecycle. By recycling this carbon originating from the atmosphere, we can manufacture products, create jobs and maintain a sustainable economy. Carbon circulates between the atmosphere, trees and recyclable products. Export revenues contribute significantly to the economic prosperity of society. Creating predictable market demand in the EU is the key bottleneck for the growth of industrial bio‑based solutions. Market creation needs to be addressed alongside regulation and funding if Europe wants real scale‑up.
Which measures can reduce emissions in the forest industry’s logistics?
Larger combination vehicles, the development of work machines and choosing rail transport reduce forest industry’s logistics emissions. The forest industry is a transport-intensive industry where raw materials and products are transported all year round both domestically and to global markets. The greatest potential for additional emissions reductions lies in moving timber transport from roads to rails and improving the energy efficiency of forestry machinery, which can significantly increase the emissions reductions. The realization of additional emission reductions requires the implementation of cost-effective energy efficiency measures throughout the transport chain. In export logistics, every effort must be made in advocating in the IMO and the EU to secure a fair competitive position in global trade.
Does carbon capture, storage and utilization provide opportunities for the EU?
The Finnish forest industry is piloting carbon dioxide sequestration. The capture, storage and utilization of carbon dioxide may create new businesses in the future. To achieve that, the carbon-neutral and tax-free status of bioenergy must be retained. This is a basic prerequisite for creating negative emissions and utilizing biogenic carbon dioxide through technological sinks. However, new types of production methods do not arise on their own; they rely on the strength and success of the existing industry. New technologies must operate reliably, and paying customers are needed for new products.
How do the EU and its Member States combine forest protection and sustainable forest use?
The EU can best achieve this by prioritising outcome‑oriented and flexible policy frameworks rather than uniform rules. Shifting from input‑based regulation to approaches that recognise regional forest conditions and management traditions allows climate mitigation, biodiversity protection and resilience to reinforce each other. Combining targeted protection of high‑value ecosystems with active, sustainable forest management elsewhere enables cost‑effective delivery of EU objectives, supported by robust monitoring and incentives that maximise both environmental and economic value at local level.
What impacts does EU climate and nature legislation have on European forests and their use?
Strong climate and biodiversity outcomes are achieved when EU forest policy is outcome‑driven and adapted to regional realities. Targeted protection of ecologically valuable areas, combined with active and sustainable forest management elsewhere, allows mitigation, biodiversity and climate adaptation to work together. Flexible implementation, credible monitoring and incentives for results enable Member States to deliver EU objectives cost‑effectively while strengthening forest resilience, productivity and long‑term growth.
How can the green transition reinforce Europe’s competitiveness and strategic autonomy?
Europe’s climate ambition is most effective when it actively supports investment, innovation and access to sustainable renewable raw materials. Forest‑based value chains play a key role in replacing fossil‑intensive materials, storing biogenic carbon and strengthening strategic autonomy. Predictable regulation, coherent carbon pricing and strong innovation incentives can unlock private investment and industrial transformation, ensuring that climate policy accelerates competitiveness and value creation rather than creating unintended trade‑offs.
How can the EU ensure that forest‑related decision‑making is science‑based, predictable and coherent?
Credible EU Forest policy depends on a strong, harmonised knowledge base and predictable, coherent governance. Improved data quality, transparency and comparability across Member States are essential to reduce uncertainty around carbon sinks, biodiversity indicators and policy impacts. At the same time, regulatory predictability and coherence across climate, nature and industrial policy are critical to guide long‑term investments, maintain trust and ensure that EU action delivers real environmental and economic value.