1. 2nd Meeting of the EU-China Round Table Brussels, 14 November 2007 Seppo Kallio Forestry and Forest Industry in EU

2. 2 Source: EFI Research Report 14 High quality forest industry products to the European markets European forest resources are located in Scandinavia and in Russia Helsinki 27 April 2007

3. Main global forest industry companies, total turnover in 2006, bill. EUR 27 April 2007

4. Population and global consumption of forest industry products 332 293 0,68 North America 557 39 0,09 Latin America 734 132 0,26 Europe 3821 28 0,04 Asia excl. Japan 904 7 0,02 Africa 32 159 0,34 Oceania 127 247 0,26 Japan Population mill. persons Paper and paperboard consumption kg/person/a Sawn wood and wood-based panels consumption m³/person/a

5. Business environment in a major change  Low profitability, increasing costs and decreasing prices  Markets and competitive advantages in radical change  Strong demand growth in Asia  Low growth in traditional markets - overcapacity  Low cost raw material sources in Latin America  ICT, Internet and electronic media changing consumption patterns  Energy, climate and environment issues gaining importance

6. Growth comes from Asia and Latin America Source: Jaakko Pöyry Global growth of paper and paperboard demand in 2004 - 2020 Growth in global paper capacity 2004-2020, 135 million tons Source: Jaakko Pöyry

7. 7 North America China Europe as a technological leader? Central Europe & Scandinavia 1970-1985 1985 2000-2010 2010 + New technology 2010 Old technology Changing technological flows - coated magazine paper as an example

8. Traditional demand for paper Volume business Digital printing and hybrid media Traditional demand for sawn timber and plywood Volume business Reactive and protective papers High living quality, characteristics of wood Building with wood, building systems Trasportation, packaging, hygiene products Competitiveness through higher value-added production

9. Forest-Based Sector Technology Platform: European paper industry vision for 2030 1.The European forest-based sector plays a key role in a sustainable society. 2.It comprises a competitive, knowledge-based industry that fosters the extended use of renewable forest resources. 3.It contributes significantly to a bio-based, customer- driven and globally competitive European economy.

10. EU FOREST ACTION PLAN towards a coordinated framework for forest related policies

11. 1. Background  EU Forestry Strategy 1998  Commission Communication on the Implementation of the Forestry Strategy (March 2005) Council Conclusions: an EU Forest Action Plan to be presented in mid-2006  Forest Action Plan adopted by the Commission on the 15.6.2006  Council Conclusions under preparation (expected to be adopted in October 2006)

12. 2. Preparation  Workshops with invited experts  Co-operation with the Member States: 3 working groups of the Standing Forestry Committee  Stakeholder consultations: Advisory Group for Forestry and Cork, informal contacts with representatives of forest owners and other professional groups Taking into account the opinions of  European Parliament  Economic and Social Committee  Committee of the Regions

13. 3. Purpose of the Action Plan The overall objective of the Action Plan is to enhance  Sustainable forest management and  The multifunctional role of forests. The Action Plan will  provide a framework for forest-related actions at Community and Member States level  serve as an instrument of coordination between Community actions and forest policies of the Member States The Action Plan builds on  The EU Forestry Strategy  The principle of subsidiarity in forest related policies

14. 4. Four main objectives  To improve long-term competitiveness of the forest sector  To maintain and enhance biodiversity, carbon sequestration, integrity, health and resilience of forest ecosystems  To contribute to the quality of life by preserving and improving the social and cultural dimensions of forests and forestry  To improve coherence, co-operation and communication in forest related matters

15. 5. Examples of key actions Competitiveness  Promote and support research and technological development  Valuation non-marketed forest goods and services  Assess feasibility of mobilisation Environment  European Forest Monitoring System  Enhance the protection of European forests Quality of life  Maintain and enhance the protective function of forests Coordination and communication  Improve working methods of the SFC  Strenghten EU profile in international processes  Encourage the use of wood from sustainably managed forests

16. 6. Key actions and their implementation  18 key actions supporting the four objectives  Joint implementation by the Commission and the Member States  Additional actions that Member States may take with support from EARDF or Life+  Standing Forestry Committee as the co-ordinating body  Road-map for implementation under preparation

17. FOREST PROTECTION IN EUROPE

19. EUROPEAN FOREST CLUSTER

20. Forest industry cluster in Finland Wood construction Forestry Packaging Printing Chemical industry Machinery and equipment Automation and information technology Logistics Energy Research and education Services - consulting - risk management FOREST INDUSTRY Paper, board, pulp Wood products industry