The forest industry provides our country with both economic and climate benefits, because it enables us to finance our welfare society, as well as to produce smart bioeconomy and circular economy products to replace the use of fossil fuels.
Throughout history, the forest industry has been a strong economic driver in Finland, even though the export products of forest-based industries have varied over time.
“Forests are the most important natural resource in Finland, and Finns have always known how to use them – just think about our first forest-based export products such as tar and bobbins, or the current bioeconomy and circular economy,” says Maarit Lindström, Director and Chief Economist of the Finnish Forest Industries Federation.
According to Lindström, the forest industry brings around four billion euros in tax revenue, including stumpage revenue, to Finland, and with a share of roughly 20 per cent, it is also Finland’s largest export industry.
In addition, the forest sector directly and indirectly employs around 100,000 people throughout Finland – and each job in the forest industry indirectly creates three other jobs in the country.
Forests are the most important natural resource in Finland, and Finns have always known how to use them.
Maarit Lindström, Finnish Forest Industries Federation
The value chains of Finnish forestry and forest industry – including, for example, harvesting, transport and conversion – originate in the regions where the forests and production units are located.
“Forest industry investments are a real jackpot for regions housing forestry operations, because they generate great economic benefits in the form of jobs, as well as export and tax revenue,” says Lindström.
“Wood provides employment in the forest, at mills and on the road – and like industrious ants, we heap up the output from forests to benefit the whole of Finland,” Lindström continues.
Today’s forest industry builds heavily on wood products, pulp, paper and paperboard, all of which are seeing good growth, except for printing and writing papers.
“In addition to these traditional forest products that improve people’s daily lives, we’re seeing a continuous influx of smart and environmentally friendly new bioproduct innovations that generate both economic and climate benefits around them,” says Lindström.
The climate benefits of forest industry products result when products made of renewable and biodegradable wood raw material displace products made of non-renewable natural resources, whose production generates more fossil-based emissions.
According to the Finnish forest industry’s climate roadmap, the fossil-based carbon dioxide emissions from production units in the forest industry could be reduced to near zero by 2035.
Moreover, VTT Technical Research Centre of Finland estimates that forest industry products produced in Finland generate an annual global climate benefit equivalent to more than 16 million tonnes of carbon dioxide.
“Forest industry and wood-based products play a key role as sources of climate benefits in Finland’s journey to climate neutrality by 2035,” says Lindström.
Forest industry and wood-based products play a key role as sources of climate benefits in Finland’s journey to climate neutrality by 2035.
Maarit Lindström, Finnish Forest Industries Federation
According to an estimate of the consultancy Afry, the demand for forest industry products will increase globally by 175 billion euros by 2035. This increase will be boosted by population growth, urbanisation, environmental awareness, the replacement of plastic-based products, and emissions reduction and circular economy targets, for example.
“There is real demand for forest industry products – and Finns can have a share of this growth, as long as we ensure the industry’s competitiveness,” Lindström says.
According to Lindström, everything is based on our having healthy forests and looking after their vitality, diversity and growth.
“Thanks to good forest management, we can pursue climate and economic benefits in a way that ensures the growth of Finnish forest assets – and carbon stocks – as well as the increasing production of environmentally friendly products to replace the use of fossil-based raw materials,” says Lindström.
“In other words, economic and climate benefits are not conflicting goals; on the contrary, they go hand in hand,” Lindström adds.
