1. Forest management in Finland Marko Mäki-Hakola Research manager Central union of agricultural producers and forest owners (MTK) Marko.maki-hakola@mtk.fi, +358 40 5026810 Slovakia 7.11.2006

2. 2 This presentation 1. Finnish forest sector and family forestry in Finland 2. Forest legislation and forest policy 3. Nature protection 4. Everyman’s right 5. Something to remember

3. 1. Finnish forest sector

4. 4 Source: Pellervo Economic Research Institute (PTT), Statistics Finland, 2005 Publishing and printing are incorporated in the pulp and paper industry because in some provinces separating these would endanger information security. The contribution of these towards the GNP of the whole country’s forest sector is approximately 15 percent. Well-being from Forests Is Spread Far and Wide In 2003 the forest sector was responsible for 7,3 % of the country’s GNP. In monetary terms this came to over 9 billion euros.

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6. 6 FINLAND A Land of 188 000 Lakes Forest area (FAO): 22 million hectares 73 % of land area (EU-25: 36 % of land area) Utilized agricultural area: 2.2 million hectares 6 % of land area (EU-25: 42 % of land area) Water area: 3.4 million hectares 10 % of total area TOTAL AREA 33. 8 million hectares Population density (land area): 17 persons/km2 (EU-25: 117/km2)

7. 7 Source: Finnish Forest Research Institute Wood Production Is the Backbone of Sustainable Forestry *Logging + Natural * *

8. 8 * = according to an inventory of 2004-2005 Source: Finnish Forest Research Institute Forest Ownership Structure in Finland (according to an inventory of 1996-2003)

9. 2. Family forestry

10. 10 Average size of private forest holdings (ha) Average size in Finland 31,4 ha

11. 11 Family Forestry is characterised by Multiobjectivity èfamily forestry incorporates multiple values and functions Over-generational thinking èthe needs of future generations are constantly borne in mind and the forest holding is handed down to the next generation in a further improved condition Various benefits and services provided to the society èe.g. Everyman's Right - the forests and waters are free for everyone to visit and enjoy

12. 12 MTK promotes sustainable family forestry in accordance with the following principles: Landowners’ constitutional rights are respected Forest owners have the right and the opportunity to manage and use their forests in compliance with their objectives Forestry is economically profitable Forests are managed in compliance with the principles of sustainable forestry. Family Forest Owners' Priorities Sustainable Forest Management SFM Ecological Dimension Social Dimension Economic Dimension Cultural Dimension

13. 13 In Finland the Forest Management Association is forest owners’ own association There are 154 Forest Management Associations in Finland l more than 300 offices, i.e. one in every municipality l more than 1100 forestry professionals and 750 forest workers, additional contractors and entrepreneurs employed by the associations l FMA serves the forest owners in all matters relating to forest: e.g. planting, harvesting, ownership issues

14. 14 Forest Management Association at forest owners service lFMAs are members of regional Forest Owners’ Unions lThe Unions are members of the Central Union of Agricultural Producers and Forest Owners (MTK). lThis ensures the protection of forest owners’ interests on all levels: national, regional and local lThe certification of the Finnish family forests is organised through the FMAs

15. 15 FMA is financed and controlled by the forest owners lForestry management fee is statutory lForestry management fee ensures the possibility to all forest owners to get guidance, training and services in any matters relating to the forest lEvery fee-paying forest owner is a member of the local FMA lThe Council of the Association is the highest decision- making body. Members elect the Council, every member has one voice.

16. 16 Public Support to Private Forestry Act on Financing of Sustainable Forestry sustainability of timber production and vitality of forests maintenance of biological diversity of forests forest ecosystem management Support to long-term investments non-productive investments environmental investments  government subsidies increase also private investments in forests

17. 17 p = preliminary data Source: Finnish Forest Research Institute Investments in Silvicultural and Forest-Improvement Works in Nonindustrial Private Forests real prices (cost-of-living index, year 2005)

18. 18 Ownership structure and sustainable forest management Sustainability- Long term commitments – long term property rights and secure ownership Family forestry (private forestry)  each generation hands forests to the next generation in an even better condition that they inherited the property.  Needs an effective forest owners’ organization and cooperation  Economic viability is a precondition to SFM in private forests  Extremely important in rural areas, incomes, employment  Multi-objectivity from roundwood production to nature values  Market-based action, private forestry often increases the effectivity and productivity and expands forest resources  Respects the forests and their many values State forestry  Is the over generation thinking possible?  Often many pressures  Suitable when the goal is primarily to produce conservation or other public goods. ”The success and suitability of forest ownership models is largely dependant on a number of factors ranging from historical political stability, economic development, cultural traditions and other considerations which vary among countries” (R. Toivonen, PTT)

19. 3. Forest legislation and forest policy

20. 20 Forest Legislation in Finland framework for forest owners’ decision-making forest owners need to be involved in development and decision-making processes The Forest Act (1997):  wood production and biodiversity have equal importance  utilisation of forest resources written in the law - important for forest owners National Forest Programme 2010 (update 2007)  economic, ecological, social sustainability goals Has developed from sustainable wood production to sustainable forest management

21. 21 Development of Finnish Forest Policy in the 1990s Environmental Programme for Forestry (1994) and its monitoring (1995-97) Environmentally friendlier forest management recommendations (1994) new Forest and Park Service Act (1994) National Criteria & Indicators for Sustainable Forest Management (1995) based on the Pan- European process Old-growth Forest Protection Programme (1996) new Forest Act on Forest Centres (1996) new Forest Act (1997) new Act on the Financing of Sustainable Forest Management (1997) new Nature Conservation Act (1997) Development of Forest Certification (1997-1998) new Act on Forest Management Associations (1999) National Forest Programme 2010 (1999)

22. 22 Act on Financing of Sustainable Forestry sustainability of timber production and vitality of forests: forest regeneration (not following conventional final cutting) prescribed burning tending of young forest stand harvesting of energy wood remedial forest fertilisation remedial ditching forest road construction  public support 62 million euros yearly

23. 23 Act on Financing of Sustainable Forestry maintenance of biological diversity of forests : if maintenance of biological diversity is taken into account more extensively than what is provided in the Forest Act if additional costs or economic losses related to the maintenance of biological diversity are significant (environmental aid) contract between the forest owner and Forest Centre  compensation for forest owner

24. 24 Act on Financing of Sustainable Forestry Forest ecosystem management: management and restoration of the important habitats landscape management other significant undertakings emphasising ecosystem management, multiple use of forests, landscape, cultural and recreational values based on contract between the forest owner and regional Forest Centre

25. 25 Family forestry manage for both wood production and biodiversity Forest owners invest 50-65 million € per year in forest environment and biodiversity. Forest Act, §10: Habitats of special importance for biodiversity shall be preserved 100 000 sites in family forests 60 000 ha not included in the statistics on protected area Evaluation of environmental quality of forest operation 2003:  94 % excellent or good

26. 4. Forest protection

27. 27 Three ways of forest nature protection 1. Nature conservation programs ”The old way” 2. New voluntary based conservation methods 3. ensuring the preservation of biodiversity in commercially managed forests Some lessons learned from the NATURA process:  Are the NATURA areas been chosen in right way  The importance of transparency is high  Even one ”wrong” species may have great influence

28. 28 Voluntary forest protection METSO, The Forest Biodiversity Programme for Southern Finland 2003-2007, is experimenting with several new methods based on voluntary action by the forest owner forest owners can offer their forests for protection in natural value trading; authorities can put out competitive tenders to forest owners for rare biotopes; forest owners can create joint action networks with local stakeholders to protect biodiversity  the State supports projects financially; protected areas are returned to their natural state in order to increase natural values by, for example  increasing dead wood  prescribed burning of forests  blocking existing drains on mires. forest owners can offer their forests for protection in natural value trading;

29. 29 The Forest Biodiversity Programme for Southern Finland METSO Responds to the forest owners' values and priorities, attitudes of the Forest Owners towards Forest Conservation are positive if:  the ownership remains  voluntary  fully compensated  no “grey areas“ are formed in commercial forests  the work done is appreciated corresponds to the MTK's Forest Biodiversity Action Plan has gained forest owners' support and active participation, there is no way back to old methods,

30. 30 Acceptability of Conservation Important factors to acceptability of conservation contract 32 42 47 57 62 65 69 74 78 80 82 92 020406080100 Importance on national scale Local employment effect Achieve the goal of conservation Initiator of conservation project Distribution of compensation over time Continuation of contract Restrictions on forest use Duration of contract Form of compensation Cancellation policy Determination of compensation Amount of compensation Property rights and sovereignty % of respondents Source: Paula Horne/Finnish Forest Research Institute

31. 31 Agreements and laws for safeguarding biodiversity Constitution: responsibility for nature and its biodiversity, the environment, and cultural heritage lies with every citizen. Forest Act applies to managed forests, requires ecological, social and economic sustainability and specifies especially important habitats whose natural values must not be weakened. Nature Conservation Act applies to strictly protected areas. EU regulations Natura 2000 protected area network based on the Habitats and Birds Directives. Natural management methods for managed forests are incorporated in the Forest Act; recommendations for good forest practices; forest certification  95 percent of Finland’s forests have been certified; landscape ecological planning and natural resource planning in State forests and regional multipurpose planning in forests belonging to forest companies.

32. 32 Effect of additional protection of forests in southern Finland Studies reveal that forest protection reduces both harvesting and jobs.  Sawlogs harvesting in general is reduced more than pulpwood harvesting. Problems would especially increase for small and medium sized sawmills. Because protection in practice is never dispersed evenly over an area to be appraised, the problems are all brought to bear on certain mills. A harvesting reduction of one million cubic metres would mean the loss of 1,600 jobs overall. If no timber is available to replace this, the loss of one forestry job due to protection would lead to the loss of three jobs in the forest industry and three other jobs elsewhere in the community.

33. 33 Voluntary forest protection Voluntary protection would considerably relieve the adverse effects on the economy and employment.  For example, the loss of jobs would be reduced by one half. The effects of voluntary protection on the economy and employment are generally less harmful than with compulsory protection. Voluntary protection is more cost-effective. Citizens and forest owners prefer voluntary protection. Taxpayers are willing to pay for it.

34. 34 Public interests – common goods Land Use Planning Impacts on Forest Uses Forests Protect Water Systems Soil Protection Is Part Of Forest Management Forests are Efficient Carbon Sinks

35. 35 Family forests are open to all – everyman’s righte Everyman.s rights mean that everyone is entitled to enjoy the bounties of nature, including picking of wild berries and wild mushrooms irrespective of whose land they happen to grow on. Forest owners provide this opportunity free of charge. There are two fundamental preconditions for making use of everyman.s rights: –they need to be occasional or temporary –must not cause nuisance or damage. Everyman.s rights are so-called yielding rights. –One cannot demand that a landowner should restrict his legal operation in his forests, e.g. felling operationsand forest regeneration, for the sake everyman.s rights.

36. 36 Something to remember I would like You to remember two fine examples from Finland 1.Sustainable family forestry and the role of forest management associations 2.Voluntary based forest conservation - METSO

37. Thank You