What is the economic and social significance of the forest for Finns?

Transcription

1 What is the economic and social significance of the forest for Finns? Published in

2 Forests constitute Finland s most important natural resource. They cover two-thirds of the country s total surface area and provide us with numerous material and non-material commodities. Forests are vital for preserving the vitality of the countryside. They also form the foundation for an extensive and successful forest industry. The forest industry comprises the wood product and the pulp and paper industries. Forestry and the forest industry are collectively called the forest sector. In 2008 the forest sector generated almost 5% of Finland s GNP. In monetary terms this amounted to 7.6 billion euros. The forest sector directly employed approximately 77,000 Finns, equivalent to over 3% of Finland s total employed. The forest sector also influences many other sectors. If we include its indirect effects on production and employment, the influence of the forest sector becomes several times greater. The bio-economy of the future will enable the forest sector to increase its effect on the economy even more. Produced by the Finnish Forest Foundation, this brochure tells you about the forest sector s effect on the economy and employment for Finland and the Finns. The brochure is mainly based on reports by the Pellervo Economic Research (PTT) and Finland s official statistics. Further material on the significance of the forest in Finland and its regions is available at 2

3 C O N T E N T S Forests and forest ownership Economic importance of the forest sector Social significance of the forest sector Many forms of forest use Different levels of forest conservation Finland s forest sector in international comparison 3

4 Surface area covered by forest, 2008 > 90% 80 90% 70 80% < 70% Source: Finnish Forest Research Institute Metla 4 F o r e s t s a n d f o r e s t o w n e r s h i p

5 1 How much forest is there in Finland? Some 86% of Finland s surface area, i.e. over 26 million hectares is forestry land. Of this, 75% is suitable for wood production. Forests grow all over Finland, right up to northernmost Lapland. Those in southern Finland have more standing timber per hectare that in Finland s northernmost areas. For example, Etelä-Savo region has around 5% of Finland s total forests but 8% of the country s timber. By contrast, Lapland has around 35% of Finland s forestry land but only 16% of the total amount of timber. In Finland forestry land is graded on the basis of its timber production ability. Forest land is the most productive, with an average growth of over one cubic metre of wood per hectare per year. On scrub land tree growth is between 0.1 and one cubic metre, and on waste land less than 0.1 cu.m, per hectare per year. Forestry land also includes forest roads, permanent storage areas, and other land areas connected with forestry. The term forest as used here means forestry land in general. F o r e s t s a n d f o r e s t o w n e r s h i p 5

6 1 Has the amount of forest changed? Finland s forests are mixed forests containing 22 natural tree species, four of which constitute conifers. Scots pine is the dominant tree species in two-thirds of the forested area and Norway spruce in around a quarter of the area; the rest is dominated by broadleaf species. In the early 1900s in southern Finland middle-aged forests, and in northern Finland, old forests predominated. The age structure of forests has since gradually evened out, making sustainable forestry and constant use of the forests possible. The percentage of pine in forests has risen slightly. Pine forests also increase the further north you go. The development of forest resources has been monitored in Finland since the 1920s. Monitoring is based on regular national forest inventories. Nowadays inventories are carried out at 5 10 year intervals and increasingly incorporate natural values. The latest inventory, the 10 th in the series, took place in At the turn of the millennium, the amount of timber exceeded two billion cu.m, representing a third more than fifty years ago. Forest growth has exceeded harvesting since the 1960s, despite harvesting and forest industry production increases. This trend has been vastly influenced by both constantly increasing forest growth and more effective use of wood by the forest industry. Nowadays the forests are growing at an annual rate (increment) of almost 100 million cu.m. The annual growing stock drain on the other hand on average is 70 million cu.m. Around 55 million cu.m of this is raw wood harvested for industrial needs and the remainder fuelwood and natural mortality. Thus, the growing stock is increasing at the rate of up to 30 million 6 F o r e s t s a n d f o r e s t o w n e r s h i p

7 Amount of wood by tree species on forest land and scrub land Mill. cu.m 2,500 Other broadleaves Birch 2,000 Norway spruce Scots pine 1,500 1,000 Amount of growing stock on forest land and scrub land by region, 2008 m 3 /ha > VM1 VM2 VM2* VM3 VM5 VM6 VM7 VM8 VM9 VM10 ( ) ( ) * Inventory result based on land ceded after World War 2. Source: Finnish Forest Research Institute Metla Source: Finnish Forest Research Institute Metla cu.m a year. This is equivalent to a wood pile one metre wide reaching almost right round the world. Finland s first general forest law was enacted in 1886, mainly to prevent forest destruction. The sustainability principle contained in the legislation has gradually been emphasised by raising the ecological and social sustainability to the same level as the sustainability of wood production. The current Forest Act was passed in It lays down a framework for the use of Finland s forests. For instance, the Act states that an economically viable young stand should be accomplished after a regeneration harvest, yet it does not make young stand management or later cutting obligatory. Sentences compliant with the Crime Act exist for forest destruction. Sustainable development is also a central aim of the new Forest Act which is under preparation. Forest use in Finland is also guided by a wide variety of other acts and decrees. For example, the Act on the Financing of Sustainable Forestry covers measures promoting sustainable development through financial support. Aside from the national legislation, global forest policy and other regulations set their own restrictions on forest use. F o r e s t s a n d f o r e s t o w n e r s h i p 7

8 Who owns Finland s forests? Finland s forest owners can be divided into four groups: private individuals, the State, companies, and other owners, the most important of which are municipalities and the church. In Finland there are some 440,000 separate private forest properties of over two hectares. As some individuals own forest properties in different locations, the total amount of private forest holdings owned by different owners add up to 345,000. The actual number of forest owners is around 735,000 since most forest holdings are owned by families or are otherwise jointly owned. Hence, every seventh Finn owns some forest. The average size of a separate forest property in Finland is around 24 ha. The average size of a group of forest holdings per owner is around 30 ha. There are vast differences in the ownership structure in different regions. Going north, the State s share increases, whereas in the south private ownership is more usual. Consequently, the importance of wood production by privately owned forests is greater than their percentage of the surface area suggests: private owners have relatively more timber in their forests than the State has. Again, a larger proportion of State forests are protected. Private owner means private persons, groups of these, and heirs to undistributed estates. Since the beginning of 2008 all State forests have been managed by Metsähallitus. Companies stands for limited companies and their pension funds. Other owners are municipalities, the church, collectives, and other organisations. Note that some owners have more than one holding in different places, so that these have to be added together. 8 F o r e s t s a n d f o r e s t o w n e r s h i p

9 The structure of private forest ownership has changed since the early 1900s. The farmers ownership share has fallen by a half and now amounts to only onefifth of all forest ownership. This trend is most likely connected with the fall-off in the number of farms. However, the largest number of owners still live in the countryside. Along with the increase in ownership by city dwellers, socalled non-resident ownership has also become common. Due to the inheritance-based character of forest ownership the change in the age structure has progressed as Proportion of privately owned forestry land by region, 2008 % > < 50 Source: Finnish Forest Research Institute Metla predicted; the number of forest owning pensioners has grown, making this group by far the largest today. The average age of forest owners in 2009 was 60 years. Companies 8% Organisations 5% Forestry land ownership (%) State 35% Private citizens 52% Source: Finnish Forest Research Institute Metla Structure of private forest ownership (% of forest owners) Profession Place of residence Age 6% 30% 25% 45% 7% 56% 56% 37% 19% 16% 2% Senior citizen Wage-earner Farmer Source: Hänninen (2009) Other entrepreneur Other Rural Urban / small town City of over 20,000 Under 40 yrs yrs over 60 yrs F o r e s t s a n d f o r e s t o w n e r s h i p 9

10 What is the forest sector s importance to Finland s national and regional economy? For decades the forest sector has been extremely important to Finland s economy. Its importance remains the same, despite the marked diversification of Finland s economy and industrial structure. Around 5% of Finland s GNP, or 7.6 billion euros, was contributed by the forest sector in Forestry s share in this came to about 40% and that of the forest industry to almost 60%. The forest sector is divided into forestry and the forest industry. Forestry includes forest regeneration, forest management, timber harvesting, the promotion of forestry, and other activities supporting forestry. Forestry does not include e.g. long distance timber haulage, forest drainage, or forest road construction. Wild berry and mushroom picking comes under the heading of agriculture. The forest industry is the processing of wood into different products. The forest industry is divided into the mechanical forest industry (wood product industry) and the chemical forest industry (pulp and paper industry). Regionally, the importance of the forest industry is greatest in Etelä-Karjala, where in 2007 around a quarter of the region s GNP came from the forest sector. Again, in Kainuu, Etelä-Savo and Lapland the forest sector generated just under a fifth of the region s GNP. By contrast, the significance of the forest sector in Åland, Uusimaa and Varsinais-Suomi was relatively low. Although the forest sector does produce a lot of value-added in Uusimaa, there are also many other forms of business, reducing the relative importance of the forest. 1 0 E c o n o m i c i m p o r t a n c e o f t h e f o r e s t s e c t o r

11 2 The stumpage value of pine roundlogs in 2008 was 58 and that of smaller pine pulpwood 17 per cu.m. The volume of a 25-m trunk with a 24 cm diameter at breast height is around 0.5 cu.m. (Ärölä 2002) A half a cubic metre Scots pine 25 m 24 cm The trunk of this sort of pine forms 82% of the tree and the usable part of the crown (for pulp) 16%. In theory the value of the trunk is thus 0.5 ( ) = Its value can be further raised by using the remainder of the crown and smaller branches as energy wood. The forest sector s* share of a region s value-added, > 20% 15 20% 10 15% 5 10% 0 5% *Here the forest sector includes publishing and printing because in some regions separating them off would endanger data protection. Source: Finnish Forest Research Institute Metla E c o n o m i c i m p o r t a n c e o f t h e f o r e s t s e c t o r 1 1

12 2 The importance of the various subsectors of the forest sector also varies regionally. Forestry is especially important to Etelä-Savo and Kainuu, where over a tenth of the GNP comes from forestry. By contrast, the importance of the forest industry is highest in Etelä-Karjala and Kymenlaakso, both of which are heavily paper industryoriented. The significance of forestry to the regional economy, especially in regions that are mainly rural is relatively high, as forestry brings in income through timber sales and provides employment, even in the most remote districts. The importance of domestic wood has also increased as the amount of imported wood has fallen. In 2009 approximately 85% of the raw wood consumed by the forest industry was domestic. Four-fifths of this came from private forests. In 2008 private forest owners sold some 1.6-billion euros-worth of timber, or about 3,600 euros-worth per forest holding. Wood sales and their significance to incomes vary enormously among the different ownership groups, however. A quarter of forest owners living in the countryside get over a fifth of their net income from wood sales, whereas this level of importance applies to only 8% of those living in urban areas and towns. In 2008 Etelä-Savo had the highest wood sales income per holding, i.e. 7,600 euros. Since on average only a fifth of the income of private forest owners goes outside the region, for the municipality where the forests are situated this harvest revenue is appreciable. The impact of timber revenues for owners outside the region mostly appears as net income among South coast residents. Value-added means roughly the same as GNP, i.e. the difference between the total yield (as goods and services produced) and the input to production (e.g. raw materials). 1 2 E c o n o m i c i m p o r t a n c e o f t h e f o r e s t s e c t o r

13 What is the importance of the forest sector compared to other sectors? The average nominal value-added for the forest sector grew from the 1990s to the 2000s by over 30%. In the national economy, owing to the swifter growth rate of the entire GNP the share of the forest sector in terms of value-added has, however, slightly fallen. Forestry s share of the GNP during the 2000s has been 1.5 times higher than that of agriculture. In terms of its GNP the forest industry is Finland s second largest industrial sector, coming second only to the electronics industry. On average three-quarters of the forest industry s value-added comes from the pulp and paper industry and one-quarter from the wood product industry. Average value-added of various business sectors in the 2000s. Agriculture Forestry Forest industry 4.3 FOREST SECTOR Electronics and electrical industry Machinery and appliance manufacturing Metal industry Oil, plastics and chemical industry Food industry 1.7 Vehicle manufacturing Minerals industry Textile and leather industry Million euros 0 2,000 4,000 6,000 8,000 10,000 Change in nominal value-added in relation to 1990 average * Figures in the bars represent the percentage of Finland s GNP. ** Here, the 2000s refer to the average for Source: Statistics Finland E c o n o m i c i m p o r t a n c e o f t h e f o r e s t s e c t o r 1 3

14 The forest industry is one of our most important export sectors. In 2008 its contribution to the value of Finland s exports came to 18%. Its importance to the GNP is also emphasised by the fact that the forest industry is based on the utilisation of domestic production input to a greater extent than in many other business areas. The forest sector also indirectly impacts on numerous other business sectors, e.g. transportation and the engineering industry. Aside from its direct value-added, the forest sector thus affects Finland s economy through its multiplier impact. 1 4 E c o n o m i c i m p o r t a n c e o f t h e f o r e s t s e c t o r

15 How many jobs does the forest sector provide? 3 Of Finland s total employed over 3%, or 77,000 people, work in the forest sector. In 2008 over 21,000 people were working in forestry, equivalent to 1% of Finland s total working population. The forest industry directly employed around 56,000 people, i.e. 2% of the working population. In this brochure the forest industry means the pulp and paper industry minus publishing and printing, and the wood product industry without the furniture industry. There are appreciable regional differences in the number and contribution of forest sector jobs, depending on the size of the forest industry and what other jobs are available in the region. Relatively speaking, the forest industry employed the most people in Etelä-Karjala, where around every tenth worker derived income from the forest industry. On the other hand, forestry relatively employed the most people in Kainuu, 4% of all employees in the region. In Uusimaa, Varsinais-Suomi and Åland the forest sector s employment effect is relatively the least at below 3% of the region s total workforce. In numeric terms the number of people employed by the forest sector is highest in Uusimaa, reaching almost 20,000. The forest sector is also a significant job provider in many regions with high rates of unemployment. S o c i a l s i g n i f i c a n c e o f t h e f o r e s t s e c t o r 1 5

16 3 Forest sector s contribution to regional employment, 2007 > 10% % 5 7.5% 2.5 5% 0 2.5% Source: Statistics Finland 1 6 S o c i a l s i g n i f i c a n c e o f t h e f o r e s t s e c t o r

17 What are the trends in the forest sector employment rate? In Finland the number of people employed by the forest sector has halved over the last thirty years. To some extent this is due to improvements in work methods, making the growth in overall productivity within the forest sector appreciably faster over the last thirty years compared to productivity within the national economy as a whole. Growth in productivity forms, however, an important means of maintaining the competitiveness of any business sector and thus, over the long term, also employment. Despite the fall in employment levelling off, on average the number of people employed by the forest sector during the 2000s is around a tenth less compared to the previous decade. In the forest industry, especially in the pulp and paper sector, the number of employees EMPLOYEES 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Employment trends within the forest sector Pulp and paper industry Wood product industry Forestry s s 2008 * Figures in columns represent percentages of Finland s total employed. ** Here, the 2000s refer to the average for Source: Statistics Finland S o c i a l s i g n i f i c a n c e o f t h e f o r e s t s e c t o r 1 7

18 has drastically fallen, i.e. by about one-sixth. In the wood product industry, on the other hand, the number of employees has remained almost constant. Deviating from the long term average, the wood product industry in recent years has employed slightly more people than the pulp and paper industry. Within the forest sector the mechanisation of forest harvesting and other work has advanced so far that the number of people employed has for several years remained constant. In the 2000s the employment level has even increased in 14 regions and fallen in only 6. Despite the employment trends in the forest sector this remains one of the most important work-providers in Finland. Thanks to the high level of domestic input, the sector also has indirect effects on other areas of business. Indeed, it has been estimated that for every job within the forest industry around 1.6 jobs are created in other areas. Thus, the overall effect of the forest sector is 150,000 or so jobs. A forest industry enterprise provides many kinds of jobs A largish mill or factory in the Finnish forest industry with a workforce of 700 also gives work to a large number of people working in other sectors. Within a production plant s sphere of influence there may be as many as 1,400 employees whose activities are indirectly influenced by the plant. For instance, the transportation of raw materials and finished products, as well as further processing, create work for many others. Additionally, the plant needs various kinds of services, including maintenance, expert, training, planning, cleaning, and meals, services. Thus, in addition to the workforce involved in permanent, direct product manufacturing, a plant s influence also extends to several times the number of workers in other fields. Source: Finnish Forest Industries Federation 1 8 S o c i a l s i g n i f i c a n c e o f t h e f o r e s t s e c t o r

19 What are the main uses of raw wood? 4 Most of the annual timber cut is used as a raw material by the forest industry. The most important tree species for the forest industry are Scots pine, spruce and birch. In recent years e.g. aspen has been more widely used. The consumption of raw wood by the forest industry in the 2000s has grown by a quarter compared to the previous decade. Of this, on average over three-quarters comes from domestic harvesting. The proportion of imported raw wood has doubled compared to the 1990s level and now stands at around 16 million cu.m. In recent years the proportion imported has, however, gradually fallen. The target of Finland s 2015 National Forest Programme is to raise the annual consumption of domestic wood as a whole to million cu.m by The pulp and paper industry s products are mechanical and chemical pulp made from pulpwood and the surface layers of logs, together with paper and board manufactured from the pulp. There are many kinds of paper products. Finland s forest industry is particularly strong in the highly refined paper and board sector. On average 40 million cu.m of raw wood consumed by the forest industry goes to the chemical forest industry. In addition, chips and sawdust from sawmills are used by the pulp industry, while recycled paper helps to meet paper industry needs. In 2008 a total of 10 million tons of paper products were manufactured in Finland. On average this is enough to satisfy the annual paper requirement of some 100 million consumers. Products of the wood product industry are sawn wood and plywood, as well as other types of wooden boards, made from roundlogs. Secondarily processed items like M a n y f o r m s o f f o r e s t u s e 1 9

20 4 doors and windows, made from these are classed as construction joinery products. The wood product industry consumes slightly less than half the forest industry s raw wood. In 2008 almost 10 million cu.m of products were manufactured, equivalent to the average wood product consumption of 50 million people. Apart from the forest industry, an average of around 6 million cu.m of raw wood per year is used by heat and electricity plants for energy generation. Roughly one cu.m of raw wood produces about 330 kilos of paper. This amount could be used e.g. to print 1,400 copies of a 50-page edition of the national daily Helsingin Sanomat, 66,000 sheets of A4 office paper, or 2,200 toilet paper rolls. These are only rough estimates since the amount of wood used varies according to the manufacturing method and the type of wood or paper. In the wood product industry one cubic metre of wood from logs gives 0.45 cu.m of sawtimber. This is distributed over a wide array of special products like planks, boards, panels, laths and beading. Additionally, around 0.3 cu.m of chips, 0.14 cu.m of sawdust and 0.1 cu.m of bark, are obtained. Among such products, the surface wood in particular is used by the pulp and paper industry, the remaining materials being acceptable, above all, to the wood-based board industry and energy production plants. 2 0 M a n y f o r m s o f f o r e s t u s e

21 Use of raw wood by the forest industry in Growing stock increment (99.5 mill. cu.m) Harvesting (70.2 mill. cu.m) Domestic raw wood (51.5 mill. cu.m) Imported raw wood (14.7 mill. cu.m) Use of raw wood by forest industry (66.2 mill. cu.m) Pulp industry 40.2 mill. cu.m Wood product industry 26 mill. cu.m 1) Products manufactured Side-products (9 mill. cu.m) Pulp and paper industry Pulps Paper and board (13.1 mill. cu.m) (11.6 mill. cu.m) Wood product industry Sawn goods (9.9 mill. cu.m) Wooden boards (1.6 mill. cu.m) 1) Not taking into account recycled paper and imported pulp. The recycled paper share in paper and board production was 5.5% and that of imported pulp 3.8% in Source: Finnish Forest Research Institute Metla M a n y f o r m s o f f o r e s t u s e 2 1

22 What else is wood used for? Alongside the traditional forest industry products in Finland a whole range of new wood-based bioproducts for which the raw materials come mainly from the unused surface parts of a tree, by-products from other manufacturing, and harvesting residue, are now being produced. In the future the relative importance of these new innovations will be sure to increase. Based on the forest industry s current strategy, an effort will be made to double the overall value-added of the forest cluster by 2030, half of this coming from such new products. These latest innovations also include the further processing of traditional products. Wood-based bioenergy is considered to have enormous potential for success in the bioeconomy of the future. Even today, the black liquor produced by the pulp industry as a side-product is used to generate more energy than the mill itself needs. In fact, around 75% of the energy and Forest industry products of today and tomorrow Chemical and mechanical pulp Smart packaging Secondand thirdgeneration biodiesel Paper and paperboard products Nanocellulose and biopolymers Composites and smart wooden structures Sawn timber, woodbased panels and construction joinery products Pharmaceuticals, cosmetics and wellbeing products Electricity and heating Source: Finnish Forest Industries Federation 2 2 M a n y f o r m s o f f o r e s t u s e

23 electricity needs of the entire forest industry are met by burning wood-based fuels. Due to the energy-intensive nature of the chemical forest industry this means about onefifth of Finland s entire energy consumption. In addition to bioliquors, solid biofuels constitute important bioenergy raw materials. In addition to bioenergy, harvesting residue, tree bark and sawdust can be used by biorefineries of the future to produce second-generation biodiesel fuels, as well as e.g. various kinds of compounds for the chemical, food and pharmaceutical industries. Major increases in production opportunities are also anticipated in the packaging sector. As a result of escalating goods flows the growing requirement for packaging materials must be satisfied to an increasing extent by biomaterials. In the bioeconomy, their recyclability, biodegradability and reuse make packaging products based on boards and other renewable natural materials highly competitive. Through consumers increased awareness of the environment and through general environmental norms, the ecoefficiency of building materials has also become a factor of growing importance. Among alternative materials, the environmental loading of wood is far and away the least. Besides, wood is a renewable raw material. Wood also supports life span thinking because it is suitable for recycling or reuse. At the end of its life span wood can even be burned, thereby replacing the need for fossil fuels in energy production. According to the ecoefficiency definition, more is produced while simultaneously sparing the environment. For example, it has been estimated that in the building trade one kilogram of wood can replace a total of 3.6 kg of concrete, bricks and roofing tiles, 0.12 kg of construction metals, and kg of other building materials. This materials substitution could also be achieved in a sustainable way because the amount of wood used in a year for constructing homes grows in less than a single day in Finland. Sources: Pingoud et al. (2003); Finnish Forest industries Federation M a n y f o r m s o f f o r e s t u s e 2 3

24 What else do forests provide besides wood? In addition to raw wood, forests also provide other material, as well as non-material, benefits to people. These other ecosystem services offered by nature are often free yet essential to the existence of the ecosystem. The forest provides many material and non-material services Forest ecosystem services Provisioning services Energy wood Wood material Berries, mushrooms and other collectable products Game and reindeer husbandry Others Regulating services Dust control Erosion prevention Air and water purification Others Cultural services Recreation and landscape Art and Science Spiritual and physical health Others Supporting services Photosynthesis Carbon sink effect Nutrient and water cycling Others Source: Hytönen (2009) 2 4 M a n y f o r m s o f f o r e s t u s e

25 From the standpoint of the national economy and employment raw wood production is the most important form of forest use. Its efficient production would not, however, be possible without support from such systems as the circulation of soil nutrients and water. Conversely, the presence of forests creates a framework for e.g. cultural services of various kinds. Thus, different service levels are interactive, impacting on each other. All of Finland s managed forests are subject to multiple use, i.e. the production of amenities based on forests are in harmony with wood production. In practice other benefits derived from forests are based to a large extent on Finland s Everyman s rights decree. For example, in million euros-worth of wild berries and mushrooms were gathered for the retail trade. The sales value of game and reindeer husbandry products totalled 88 million euros. In the case of many, particularly non-material benefits, setting a monetary value on them has thus far been rather difficult. Such benefits include recreational use of the forests, which the majority of Finns enjoy. However, the popularity of ecotourism clearly indicates that people are willing to pay even for non-material services. For instance, in 2008 the revenue from national parks came to over 70 million euros. In Lapland the regional importance of tourism has exceeded even that of the forest sector. M a n y f o r m s o f f o r e s t u s e 2 5

26 How is the biodiversity of Finland s forests being safeguarded? Biodiversity in the Finnish forest ecosystem is being maintained in both managed forests and areas protected to a variable extent. These voluntary measures supplement each other. However, the basic notion is that the more successful the attempt to safeguard biodiversity in managed forests the less the need to establish strictly protected areas. In Finland the total surface area of strictly protected areas is Europe s highest, accounting for almost a half of the EU s total. Thirteen percent of the productive and nonproductive forest area is either completely protected or subject to forestry restrictions. Regionally such areas tend to be concentrated in the State s less productive forests in northern Finland. There, either no wood production at all takes place, or this is very restricted in, on average, one-fifth of the surface area. Biodiversity in managed forests is primarily guided by legislation: the Forest Act states that key biotopes should not be managed, while the Nature Conservation Act lays down guidelines for silviculture in forest habitats and other valuable environments. Additionally, it is possible to influence silviculture through recommendations which forest owners are encouraged, but not obliged, to adopt. Forest certification, which applies to around 95% of Finland s managed forests, focuses on promoting the economically, socially and ecologically sustainable use of the forests. Metsähallitus regional ecological planning has improved the protection, in particular, of old growth forests outside the protected areas. The METSO action programme has meant enlargement of the protected area network in southern Finland, too. 2 6 D i f f e r e n t l e v e l s o f f o r e s t c o n s e r vat i o n

27 Extent of protection and restricted silviculture on land suitable for timber production, > 10% % 5 7.5% 2.5 5% 0 2.5% Source: Finnish Forest Research Institute Metla This programme is based on voluntary participation by forest owners in regard to forest use and protection and also involves a search for new protection measures. Wood sales income losses resulting from forest protection are compensated for through the Act on the Financing of Sustainable Forestry. Following a successful pilot phase, a decision was taken to extend the METSO programme to Aside from national nature protection and action programmes, the safeguarding of ecosystem biodiversity has become a topic of discussion in international forums as well. For example, the Natura 2000 network includes almost all the strictly protected forests in Finland today. D i f f e r e n t l e v e l s o f f o r e s t c o n s e r vat i o n 2 7

28 What is the forest sector s importance in comparison to other countries? Globally, Finland is in many respects an important forest nation, despite representing only 0.5% of the world s total forests and growing stock. Our share of the world s forest harvesting is actually higher than this, reaching over 1.6%. Although the world s forest industry is domestic market driven, most of Finland s forest industry production is exported. Finland commands a 7% share of the global forest industry s product exportation. Finland s share of paper and board sales in world trade already exceeds onetenth and that of highly refined printing and wrintig paper as much as one-fifth. In terms of annual turnover, two Finnish paper mills are in the world s top ten and three are among the ten biggest at the European level. Calculated per capita, the value of the Finnish forest industry s exports is 85 times that of the global average. Again, the amount is around 20 times the average over the whole of Europe, and almost 15 times that of the EU average. In Finland the percentage of forest land compared to the country s total surface area is far higher than in many of the world s other countries. Finland also has proportionally more forest than anywhere else in Europe. About 37% of the surface area of the EU is forest. In Finland there are about 4 ha per person, which is almost 15 times that of the EU average. In Europe on average private individuals own half of the forests but in Finland the proportion exceeds two-thirds. In Finland the forest sector s importance economically and socially is markedly greater than on average in Europe. The forest sector s share of the GNP here is the EU s highest 2 8 F i n l a n d s f o r e s t s e c t o r i n i n t e r n at i o n a l c o m pa r i s o n

29 FINLAND IN THE GLOBAL FOREST SECTOR Finland s share of the world s printing and writing paper exports paper and board exports forest industry product exports forest harvesting forest surface area growing stock volume surface area % Source: Finnish Forest Research Institute Metla, Finnish Forest Industries Federation and one of the highest in terms of employment. Again, compared to the Nordic Region s average contribution by the sector to employment and the GNP, Finland s forest sector makes a greater contribution. It is one and a half times higher than in Sweden. Finland also has more extensive Everyman s rights than many other countries. According to decree, everyone has unrestricted access to the forest and may camp and pick wild berries, mushrooms and plants not protected by law. However, one must not disturb the landowner, cause damage, or harm habitats. Thus, for instance, off-road driving in motorised vehicles, or lighting a fire, without the landowner s permission are prohibited. In numerous European countries people are only allowed to freely roam Government forests. With the exception of Finland and the other Nordic countries, landowners in European countries have the right to deny outsiders access to their land, even entirely. F i n l a n d s f o r e s t s e c t o r i n i n t e r n at i o n a l c o m pa r i s o n 2 9

30 FINLAND S FOREST SECTOR IN EUROPE 6 Finland Sweden Estonia Latvia Lithuania Czech rep. Austria Slovakia Slovenia Portugal Europe Germany Russia Italy Spain France Netherl. Britain Forest sector s contribution to GNP in 2006 Forestry Forest industry % Latvia Estonia Finland Czech rep. Slovenia Sweden Slovakia Lithuania Portugal Austria Russia Italy Europe Spain Germany France Britain Netherl. Forest sector s contribution to employment in 2006 Forestry Forest industry % Source: Finnish Forest Research Institute Metla 3 0 F i n l a n d s f o r e s t s e c t o r i n i n t e r n at i o n a l c o m pa r i s o n

31 Sources and more information Anttila, M., Ripatti, P. & Jouhiaho, A., Puunmyyntitulot yksityismetsänomistajan taloudessa. TTS tutkimuksen raportteja ja oppaita p. FAO, Trends and current status of the contribution of the forestry sector to national economies. Forest Finance. Working Paper FSFM/ACC/07. Forest Products and Economics Division, Rome. 143 p. Hytönen, M., Ekosysteemilähestymistapa metsien hoidossa ja käytössä kirjallisuusselvitys. Working papers of the Finnish Forest Research Institute p. Hänninen, H., Yksityismetsien omistusrakenne In: Peltola, A. (ed.). Finnish Statistical Yearbook of Forestry, Hänninen, H., Karppinen, H. & Suihkonen, V., Yksityismetsien puunmyyntitulojen alueittainen jakautuminen. Metsätieteen aikakauskirja 3/2007: Kansallispuistojen ja retkeilyalueiden kävijöiden rahan käytön paikallistaloudelliset vaikutukset Metsähallitus/Finnish Forest Research Institute, Vantaa. 19 p. Karppinen, H., Hänninen, H. & Ripatti, P., Suomalainen metsänomistaja Finnish Forest Research Institute Research Papers p. Ministry of Agriculture and Forestry, Finland s national Forest Programme Publications of the Finnish Ministry of Agriculture and Forestry No3b/2008. Vammala Printers, Ministry of Agriculture and Forestry and the Ministry of the Environment, Suomen metsien monimuotoisuus, Painoprisma. 20 p. Finnish Forest Research Institute, Metinfo, internet dataservice, Finnish Forest Research Institute, Finnish Statistical Yearbook of Forestry p. Forestry Development Center Tapio, Tapion taskukirja. Publisher Metsälehti. 555 p. Finnish Forest Industries Federation, Forest Industries Statistics Service Tilda. Ministerial Conference on the Protection of Forests in Europe (MCPFE) Liaison Unit Warsaw, UNECE & FAO State of Europe s forests 2007: the MCPFE report on sustainable forest management in Europe. 247 p. Mäki-Hakola, M. & Toivonen, R., The Role of the Forest Sector in Regional Economies in Finland. Pellervo Economic Research Working Papers N:o p. Pingoud, K., Perälä, A-L., Soimakallio, S. & Pussinen, A., Greenhouse gas impacts of harvested wood products: Evaluation and development of methods. VTT Research Notes p. Ruohola, H., Ripatti, P., Rämö, A-K. & Toivonen, R Yksityismetsien puukaupan rakenne. Työtehoseuran raportteja ja oppaita p. Statistics Finland, Regional Accounts, Statistics Finland, StatFin - online service, Statistics Finland s, Industrial area and business sector statistics, Ärölä, E., Metsävarojen mittaus ja arviointi. In: Tapion taskukirja. Forestry Development Center Tapio, 555 p. 3rd Edition Brochure, 1/2011 Printing: Erweko Design and layout: Jaana Rautio Cover photo: UPM PEFC/

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