Finnish forest industry climate roadmap

According to the Finnish forest industry’s scenarios, forest industry mills could be fossil fuel free soon after 2035, and wood-based products could offer increasing climate benefits replacing products with higher carbon footprint. Capturing, storaging and utilizing biogenic carbon dioxide from bioenergy production in possible in the future but requires removal of several bottlenecks.

Current and target state

The updated emission scenarios illustrate that the forest industry could continue to reduce its carbon dioxide emissions. In 2023, the share of renewable fuels in production facilities was already 92 percent. The forest industry’s scenario estimates that up to 6 Mt of biogenic carbon could be captured annually by 2040, with 5 MtCO2/a utilized as industrial raw material.

The Finnish forest industry is capable of bringing increased added value, tax income, better self-sufficiency, and new jobs to the Finnish economy while mitigating climate change.

Main solutions

The forest industry continues to reduce emissions by replacing fossil fuels with renewable energy sources. There are also several other solutions like new technologies for pulp, paper and paperboard and mechanical wood products, such as more energy efficient drying technologies, 3d scanning methods; technologies for carbon capture, utilisation and storage (CCUS) as well as changes in the raw material base and material efficiency.

To promote carbon capture, storage and utilisation for biogenic carbon dioxide (BECCUS), the forest industry’s roadmap calls for an incentive system for both demonstration and pilot plants, and later for commercial plants. This new business will require new skills, creating jobs in this field. BECCUS could significantly reduce Europe’s dependencies from fossil imports and in Finland employ 1.100 workers directly by 2040, with additional indirect employment impacts.

Needs and requirements

To develop forest business with higher added value and new export products, investment-oriented and cost-competitive policies are needed to leverage the future potential of wood processing. This requires investments in mills, electrification and altogether success in international competition.

Future and positive impacts

Wood processing is, in many ways, a model example of a climate-friendly circular economy and a significant part of phasing out the fossil economy. As trees grow, they capture carbon from the atmosphere, and products made from wood provide climate benefits when used in place of emission-intensive products. Wood-based products also store carbon throughout their lifecycle.

These products are made from renewable wood grown in Finland. The products are largely utilized and recycled in Europe and thus important to Europe’s self-sufficiency and strategic autonomy. At the same time, it is possible to increase the added value of forest industry production, which in turn, would create economic benefits for society in the form of e.g. tax revenue and new jobs.