Low carbon roadmap for the Finnish sawmill industry

The key products of sawmill industry are sawn timber, planed timber and glued timber and the majority of the production is exported. Year 2023 the sawn timber production in Finland was 10.4 million cubic meters and the share of export was 7.8 million cubic meters. The sawmill industry roadmap describes the emission development between two roadmap processes, as well as the means and conditions for further low-carbon development.

Current and target state

In the starting point of the sawmill industry’s roadmap work own production emissions were already low but the possibilities to reduce them further existed. With the production volumes in 2020, the sawmilling industry’s emissions were approximately 420,000 t CO2e, of which 141,000 t CO2e were emissions from its own operations. The latest emission data from 2023 shows that the industry’s total emissions have decreased by 23 % between 2019 and 2023. The decrease in production volumes and changes in the average emission factors of electricity, fuel oil and diesel has been taken into account in the data. The share of the emission reduction inside the sawmill’s gates has been 39 % of the total. In the updated roadmap the emissions of the sawmill industry are approximately 342,000 tCO2e and approximately 85,000 tCO2e of that is generated inside the sawmill’s gates. The sawmill industry estimates that it is operating on a baseline scenario basis, but steps towards the low-carbon scenario have also been taken.

Sawmill industry companies in Finland have invested an unprecedented amount in recent years and have taken steps to further reduce their carbon footprint

Main solutions

The reduction in emissions has been influenced by both the decarbonization of energy production and the companies’ own emission reduction measures. Since the previous roadmap process, resource efficiency has improved. Also, the number of frequency converters and more efficient motors in different stages of the production process has been increased and it has reduced energy use. Heat recovery has increased, drying plants have been renovated and fossil fuels have been abandoned in heat production with a few exceptions. Due to the increased demand for sawn timber during the Covid period, companies in the sawmill industry have made significant investments in their production: new production plants have been opened and existing production lines have been modernized, which has increased the efficiency and productivity of the operations.

An inventory of sawmill emissions by emission source was done for the 2020 roadmap and it has not been updated in the update. Instead, the development of the carbon footprint has been estimated through the development of production volumes and the development of the emission factors of electricity and motor fuels. The production volume used in the calculation of the 2024 roadmap update has decreased compared to 2020. The majority, approximately two-thirds, of the sawmill industry’s emissions are generated in the value chain outside the sawmill’s gates, from raw materials and transport. Inside the sawmill’s gates, machinery and trucks produce the majority of the emissions. The biggest emission sources also contain the greatest potential for emission reductions. Emissions are also generated from the production of electricity used for drying and sawing.

The sawmill industry’s emission development has been described using two scenarios created in 2020: In the baseline scenario, where the carbon footprint of sawn timber production will decrease by 28 % by 2035 compared to the situation in 2020. This is mainly due to factors beyond the industry’s control, such as a decrease in specific emissions from electricity and changes in heavy transport equipment. In the low-carbon scenario, the underlying assumptions of the baseline scenario also contribute to emissions development, but the industry itself also actively reduces its own emissions, for example by electrifying forklifts, improving energy efficiency and reducing the use of fossil fuels in heat production. Through these measures the emission reduction within the sawmill’s gates would be 79 % by 2035 compared to the 2020 emission level.

Needs and requirements

Faster decarbonization requires the development of the operating environment and political solutions, because not all emission reduction methods can be implemented on market terms. The anticipated global growth in timber demand requires investments in the operating conditions of the sector. Means needed to improve the conditions for implementing the emission reductions in sawmill industry are incentives for the electrification of work machines, incentives for wood construction, and securing the growth of forests and the availability of wood raw materials.

Future and positive impacts

Since the emissions mainly arise from the procurement of raw materials, transport and sawn product production processes, these also have the greatest emission reduction potential. Emissions can be reduced, for example, by moving away from the use of fossil fuels in logistics. There has been no significant change in this respect compared to the situation in the previous roadmap. A significant reduction in emissions inside the sawmill’s gates could be achieved by electrifying working machines. However, according to the Finnish Sawmills Association there are no financial incentives for this.

The wood products’ climate impact as a carbon storage is also highlighted in the roadmap. In particular, wood construction works as a carbon sink by sequestering carbon and storing it for a long time. That allows the sawmill industry to strengthen its own carbon footprint. Compared to other building materials, wood-based products have a smaller carbon footprint, which enables emission reductions in construction. However, in Finland, the consumption of sawmill products has been declining for a long time, and this development should be reversed.