National discussions on the implementation of the new EU legislation concerning the restoration of natural boreal forests have begun in Finland. This process can significantly affect the local forest industry. According to estimates by the Ministry of the Environment, the planned measures on public lands could lead to a reduction in income from tree felling in the amount of 22 to 46 million euros annually.
Real financial losses are likely to be even higher due to the indirect effects of these measures. These measures can affect the entire industry, in particular, the work of enterprises engaged in wood processing. According to the director of Metsähallitus Metsätalous Oy, Jussi Kumpula, up to five sawmills may be endangered in Northern Finland.
Depending on how strict measures are implemented, between 770 and 3,600 jobs could be at risk. Metsähallitus currently cuts about six million cubic meters of wood annually, but with the new rules, the volume of felling may decrease by 1 to 2 million cubic meters. Additional protection zones would cover approximately 500,000 hectares of state lands.
The company has developed several scenarios of the impact of measures depending on the region of their application. The lightest option involves reducing logging on state lands by 1 million cubic meters annually, which would result in a reduction of 770 direct jobs and a total loss of about 1,700 jobs in the industry. The turnover of the forest industry will decrease by 415-446 million euros annually, and state revenues will fall by 38 million euros. Wages in the industry will decrease by 65 million euros annually.
The most severe scenario involves full application of the measures in Southern Finland, where logging would decrease by 2.1 million cubic meters annually. This will result in the loss of 1,600 direct jobs and approximately 3,600 indirect jobs. The turnover of the industry will fall by 900 million euros, and state revenues will decrease by 76 million euros. Wages in the industry will decrease by 130 million euros annually.
Changes in the wood market are already noticeable, especially due to the cessation of imports from Russia, which previously amounted to 10 million cubic meters per year. The Finnish government is now preparing an action plan to be completed within two years. Given the potential economic implications, this task requires careful preparation.
