Forest path on a sunny day.

The forest path - cornerstone of transition

A good third of the EU's surface area is cloaked in forests, with private ownership accounting for about 60% of these wooded expanses.

FAM, a holding company owned by the three largest Wallenberg Foundations, owns Kopparfors Skogar with 0.28 million hectares of forest and holds co-ownership of an impressive 1.4 million hectares of productive forest land in Sweden.

FAM has commissioned a study from AFRY, exploring the pivotal role the EU's forest industry could play in safeguarding our climate.1 In this interview, Håkan Buskhe, CEO of FAM, talks about the strategic importance and climate benefits of forests.

Professionalism changes perspectives: where others usually look at outward appearances, the professional sees the background. What do you see when you walk through the forest?

Håkan Buskhe: I see many things. For one, forestry creates employment and opportunities so that all of Sweden can thrive. And forest-based materials and products are essential in our lives. It would be difficult, if not impossible, to spend a single day without using a forest product.

But the forest is also important for our understanding of ourselves and our place in the world. I basically grew up in the forest and it is there, surrounded by pines, moss and birds, that I find peace of mind.

For us in Sweden, it has been natural to see the forest both as an economic resource and an important natural resource, essential for biodiversity. For countries with scarcer forest resources, it becomes more natural to protect what forest they have. When these different perspectives meet in Brussels, conflicts arise, because one size does not fit all.

Empty plastic bottles ready for recycling as part of the circular economy
Increasing the substitution from fossil to fibre-based raw materials is crucial for the EU to reduce emissions.

Covering almost 70 per cent of Sweden's total land area, forests play an enormous role in the country and hold strategic importance. Could you elaborate on the extent, wide-reaching impact, and socioeconomic sectors influenced by forest-based industries?

Håkan Buskhe: Sweden is basically a forest, with some gaps here and there. This has, of course, influenced our way of living and thinking. The forest is part of both our soul, our culture and our economy. So, it means everything. Without the forest, Sweden would not be the same country.

There is an entire economic ecosystem built up around forests and forestry. It provides the livelihood for whole parts of the country, especially in the northern regions, where forestry also provides the economic foundation for farming. Wood-based materials are an expanding field of research and innovation. Finding ways to replace fossil-based materials with renewable alternatives is an important priority, and something that Wallenberg Wood Science Center has promoted since 2009.

For Sweden as a country, forestry represents around 7% of our GDP, which is a substantial share. It is the single biggest contributor to our net export, and Sweden is the world’s third-largest exporter of sawn goods and of paper and cardboard. All this is made possible by Sweden’s more than 300, 000 forest owners. The heterogeneous ownership structure also ensures that each forest is managed in a way that is suited to each particular forest stand.

Green forest view
Growing and actively managed forests remove more carbon from the atmosphere.

In the research you initiated, you delve into the capabilities of the EU's forestry and forest-based sector. Could you elaborate on the contributions of this sector and on whether FAM is capable of moving towards broader objectives?

Håkan Buskhe: The study shows that the forest sector already today substitutes 390 Mt of fossil carbon dioxide. This number can be increased even further, to approximately 500-700 Mt by 2050, if forest growth is increased. This corresponds to the emissions of roughly the same number of fossil cars.

The study shows that much more can be done. However, we then need to ensure that we have an increased supply of sustainable sourced European wood. There is a good potential for this, especially in central and southern Europe.

The study is also immensely important in starting to shift the mindset and the focus of the debate.

Image of Håkan Buskhe, CEO of FAM AB.
Håkan Buskhe, CEO of FAM, continues:
For a long time, everyone has focused on the end goal of a fossil-free society, but it's time to ask the real question: how will we reach net-zero emissions?

I do not think that it will be possible to stop doing everything that we are doing today, in terms of housing, enabling mobility of people and goods, and providing products that people need in their everyday life. What we need to do is redesign and reconstruct the industrial processes and remove the fossil components. And in that context, forests can provide one important piece to the puzzle.

Building of the European Union in Brussels.
Bioenergy can support the transition to more sustainable energy systems at the whole EU level.

Unlike many parts of the world where deforestation is still a major challenge, the EU is seeing growth in land area covered by forest. What conclusions do you draw from this?

Håkan Buskhe: When humans use natural resources, there is always a risk of overexploitation. This was the case in Sweden in the second half of the 1800s. To remedy this, better economic incentives were introduced, including the possibility for forest owners to use the forest as collateral for financing purposes.

New legislation was also introduced – such as mandatory replanting of trees. Once this was accomplished, every forest owner saw the value in growing healthy forests over time.

So, the ultimate conclusion is that proper economic incentives, in combination with good legislation, lead to active sustainable forest management.

Metsänielu ja biopohjaiset tuotteet
Forest-based innovation will continue to deliver new solutions to the climate challenge.

What hopes do you have with regard to the forest industry’s contribution to climate and biodiversity protection, and what are the most important hurdles to overcome?

Håkan Buskhe:

I am convinced that we have only begun to scratch the surface of the potential for forest-based fibre - but far-sighted and persistent policies are required to unleash this potential, both within the EU and in Sweden. The EU election debate will be a first test of whether this message has gotten across.

When it comes to biodiversity, I would like to say that it is extremely important for us that our forests are managed actively and sustainably. Statistics show that biodiversity is improving, both in terms of the prevalence of dead wood, the diversity of tree species, and the average age of trees. But we can still do more to improve the situation, and we are working hard to do this. All this is necessary for our continued license to operate, but it is also important in and of itself.

Sunrise illuminating forest

How can forests contribute to climate benefits?

A report by AFRY, commissioned by FAM, owned by the three largest Wallenberg Foundations, explores the substitution potential and climate impact in the EU forest value chain.

According to the report, forest products already contribute a climate benefit equivalent to the emissions of 50 million EU citizens. This climate benefit comes from what is known as the substitution effect – when wood fibre-based alternatives replace fossil-based materials, emissions are reduced.

Footnotes

  • 1. https://afry.com/en/newsroom/news/how-can-forests-contribute-climate-benefits a↩