The Climate and Energy Policy from the Forest Growers` Point of View. Arnis Muiznieks Chairman of the Board Latvian Forest Owners Association

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1 The Climate and Energy Policy from the Forest Growers` Point of View Arnis Muiznieks Chairman of the Board Latvian Forest Owners Association

2 European forestry is not a problem, forestry is a solution for both-energy and climate topics!

3 Forests in Latvia

4 Latvia sforestresources Forest has historically been important for the natioanl economy. Forest area continues to increase and today covers more than a half of Latvia s territory 4

5 Total growing stock is increasing more rapidly than forest area. In comparison to 1935 it has increased 3 times

6 In harvesting we do not reach the annual increment - during the last five years harvesting on average is 69% milj.m Pārējie Other ownership meži Valsts State forest meži Ikgadējais Annual Increment pieaugums forest Incl. t.sk. saimnieciski commercially pieejamais available

7 Taking into account the gross annual increment in the commercial stands every 1,3 seconds the trees in Latvia s forests produce 1 cubic meter of timber!

8 Relatively small private forest properties Atotalof ~150thsdprivateforestownersinLatvia Average forest property area 8,5 ha 92%offorestownersownlessthan20haforest ,4 3, ,8 13,9 No Bynumber, skaita, % No By area, platības, % % 27,4 28,5 6,9 Forest property structure by property area 0,8 <2 2, , ,1-50 >50 7,4 8

9 Forest owners` response reaching the targets trough active forest management!

10 ha-1-1 V, m m3 ha ZK-DB ZK-MV RV-DB RV-MV DL-DB DL-MV Z-DB Z-MV H, m Current status and proved forest growth models Source: LVMI «Silava»

11 Use of high quality reproductive material can increase stand volumes by 30%

12 Precommercial thinnings

13 No skaita, % No platības, % 32,4 32,8 27,4 28,5 13,9 6,9 7,4 3,9 0,8 <2 2, , ,1-50 >50 Forest owners` cooperation! Forest owners cooperation is the solution to increased management efficiency of small and medium size forest properties, involvement of inactive forest owners and forcreatingcomparativelyforeseeableandstabletimberflowfromprivateforests.

14 General remarks from European forest owners perspective on the latest climate and energy debates Multiple benefits: climate mitigation, economy and rural jobs, substitute fossil based products, base for the bio-economy, renewable energy source. Important to consider the possibilities that forests and timber offer in the climate and energy context 3 S: Sequestration of CO2, Storage of CO2 and Substitution of fossil based materials and energy. Illegal logging and the resulting CO2 emissions are serious issues globally, but not in Europe EU forests are growing in area and stock and systems are in place to safeguard SFM and generally EU forest resources are underutilized, on average only 70% of the increment is harvested. EU should encourage active and sustainable forest management and use of wood and wood-based products as cost-efficient climate change mitigation tools.

15 General remarks from European forest owners perspective on the latest climate and energy debates Wood for energy Renewable climate-friendly resource, substitute fossil fuels, increase energy security; 50% of EUs renewable energy currently based on wood forest biomass plays and will play a key role in the energy mix clear climate and socio-economic benefits; The EU set new ambitious targets for renewable energy for 2030 with 27%. This will certainly lead to further increased demands. The EU should secure that the raw material is mainly provided domestically as the European forest sector can supply this not only locally but also sustainably.

16 General remarks from European forest owners perspective on the latest climate and energy debates Biomass criteria: Forest owners do not support biomass criteria: Developing and applying specific sustainability criteria for a single endproduct is - considering the wide spectrum of multiple products and functions forestry provides- not operational. Cascade use : EUshouldnotprioritizecertainusesofwoodoverothersinits legislation. EU stands for free markets so in case energy policies or subsidies creates problems for conventional biomass-based industries, the problem must be solved by reviewing these policies not by introducing the cascade principle in legislation to correct another legislation.

17 Thank you!