Forest policies in EU and Finland TARJA CRONBERG MEP, D.Econ., D.Tech

FORESTS IN THE EU BIOECONOMY PART 1

9 billion by 2050 A SUSTAINABLE FUTURE? With the world population moving towards 9 billion by 2050 and fossil resources dwindling, Europe – among others – needs to review its management and use of renewable biological resources

environmental protection & biodiversity GLOBAL TRENDS biofuels climate change food production water supply environmental protection & biodiversity tourism & recreation Medicines health & wellbeing Security of supply

ECONOMIC SYSTEM IN THE FUTURE Green economy Bio-economy Resource economics Forests Biotechnology

GREEN ECONOMY Main goals: = An economic system, in which employment and welfare is created by minimizing any negative impact on the environment Main goals: to reduce the dependency on fossil fuels to reduce ecosystem degradation to promote global economic development to create new jobs according to the principles of sustainable development

RESOURCE ECONOMICS Sustainable use of non-living (minerals, water) and living resources (forests, fields) Taking into account economic, environmental and production-related aspects, as well as their interrelationship with social and societal factors

BIOECONOMY Bioeconomy is based on renewable resources and is part of the green economy From the Finnish perspective, the use of biomass plays a central role: bioeconomy covers the sustainable production and processing of biomass for industrial products and energy, food and fiber. The EU and OECD approach bioeconomy from a technical and scientific perspective emphasizing biotechnology

BIOECONOMY’S LINKS TO SECTORS Agriculture, fisheries and foods - CAP, rural development, Aquaculture, CFP, food safety Business - Industry sectors, enterprise policies, SME's, Single Market, free movement, competitiveness, competition Climate action - Climate change, Energy for a changing world Cross-cutting policies - Financial and economic crisis, Europe 2020 – a new economic strategy, better regulation, sustainable development, multilingualism Culture, education and youth - Audiovisual and media, culture, education and training, sport, youth Economy, finance and tax - Financial Services, Budget, Competition, Customs, Economy, Fight against fraud, Taxation Employment and social rights - Employment, social affairs and equal opportunities

BIOTECHNOLOGY To develop pharmaceutical products or vaccinations To protect or restore the environment To develop crops that are better adjusted to their environment To develop new materials and products from biomass, i.e. to shift from oil-based products to renewable sources make biomass a source of energy (production of electricity and heat, engine fuels) = technology based on utilization of the functions of organisms, cells or parts of cells

FOREST IN EUROPE EU27 – 40% of the land surface are covered by forests = 177 billion hectares The EU’s forest industries provide employment for over 3 million The EU’s bioeconomy employs over 22 million, 9% of the workforce

THE MISSION OF EU FOREST POLICIES to underpin well-coordinated and coherent forest-related policies at EU, international and national levels the conditions necessary for safeguarding and enchancing the sustainable management use of forests and their multiple goods and services

EU POLICIES Member state competency 1998 EU Forest Strategy 2006 EU Forest Action Plan – to be updated Negotiations on legally binding agreement on forests in Europe

EU FOREST STRATEGY NEEDS AMBITIOUS TARGETS by the year 2020, forests in the EU are demonstrably managed according to sustainable forest management principles, and thus: contribute to balancing the different forest functions and meeting demands, Provide a basis for forestry and the whole forest-based value chain to be competitive and viable contributors to the green economy

INNOVATION FOR SUSTAINABLE GROWTH: EU AND FINNISH POLICIES PART 2

WHAT IS FOREST GROWN FOR? Carbon sink Maximising roundwood production Maximising energy production To maintain biodiversity To prevent erosion, floods, desertification As investments

”INNOVATING FOR SUSTAINABLE GROWTH: BIOECONOMY FOR EUROPE”: Innovation potential in bioeconomy stems from its diversity: Bioeconomy takes advantage of the dialogue between science and technology - in addition to biotechnology, nanotechnology, IT and machinery/equipment technology play important roles Research funding in the bioeconomy sector to be doubled  4,7 billion € into the bioeconomy from a 80 billion € R&D –budget Research and innovation as a core element in strategy-making:

SUSTAINABILITY IN FORESTRY Sustainable forest management principles Balancing the functions and demands Contributing green economy

BUILDING MATERIALS – CARBON CONTRIBUTION

IEA’S WORLD ENERGY SCENARIOS

R&D UDI Demand Know-how Users Innovations Three dimensions of innovation promotion Demand Users (science, technology) Know-how Innovations R&D UDI Businesses & clusters New and growing firms Public services DUI = Doing Using Interacting Tarja Cronberg

R&D IN FOREST-BASED BIOENERGY Europe needs a forest-based bioenergy to achieve its gols in terms of resource efficiency and emission targets Europe needs an international R&D centre in forest-based bioenergy: for research, innovation and business, production and the customers.

Energy- and natural resources WHY R&D CENTER? Fisheries and food Energy- and natural resources METTI - metsäbioenergian T&I –keskus Joensuu Agricultural policy Environmental policy Regional policy Science and technology Innovation polivy Climate action Employment

FOREST IN FINLAND ”Time to see the forest for the trees” In the past Now, and in the future ”Finland stands in wooden shoes” Mainstream saw-wood and paper industries Forestry and related policies playing a key role War reparations Welfare state Export industries ”Time to see the forest for the trees” Diversified role Part of other policy sectors/fields Global challenges – new opportunities for forestry?

EXPERTISE IN FOREST-BASED BIOENERGY - SWOT Strengths Weaknesses  Public image of forestry Small and dispersed activities Forestry expertise, particularly research Forest-based bioenergy seen as a side product Production of forest machinery ”Ratkaisuimperialismi” Educational opportunites Lack of services Technical innovation potential Enterprise structure Multinational corporations Subsidy policies Opportunities Threats Renewable energy targets Increasing international competition (Sweden and Austria Export of technology and expertise Slow adoption of new practices and ways of thinking Holistic, customer-oriented approaches Technology gaps (small and medium-sized power plants New businesses Resistances from the forest industry Businesses providing sector-specific services Reduction in soil quality   Lack of a global vision

FORESTS: ECOSYSTEM SERVICES Production services: wood, bioenergy, berries and mushrooms, game, clean water Adaptation services: carbon capture; climate change adaptation; to prevent floods, storms and erosion; to sustain production capacity of soil, to prevent noise, pollination, to prevent diseases and pests. Culture services: scenery, outdoor activities, travelling, trekking; education; arts Support services: photosynthesis; circulation of water, carbon and minerals; soil production

BIOECONOMY - CONTRADICTIONS 1. Same old thing, but greenwashed? 2. Use of biological resources and 9 billion people: total energy use has to be radically reduced 3. Carbon neutrality: change must be zero or positive – burning biomass is always a source of emissions 4. Land-use – energy or food production? 5. Continuous economic growth – zero growth?