AFRY Report Emphasizes Climate Benefits of Forest Products in EU Transition

(IN BRIEF) A new report commissioned by FAM and conducted by AFRY highlights the significant climate benefits of forest products, often overlooked in EU policies focused solely on carbon sinks. The report underscores the importance of recognizing the substitution effect, wherein wood-based alternatives replace fossil materials, thereby reducing emissions. Forest products like cartonboard, sawnwood, and cellulosic textiles already contribute to a climate benefit equivalent to the emissions of 50 million EU citizens annually. CEO of FAM, Håkan Buskhe, emphasizes the need for a nuanced understanding of forest products’ climate impact to inform decision-making related to forestry issues. The report indicates that the substitution effect could potentially reduce up to 561 million tonnes of carbon dioxide equivalents by 2050, offering a significant contribution to EU emissions reduction goals. Jonas Gustavsson, President and CEO of AFRY, underscores the vital role of forests in transitioning away from fossil resources towards more sustainable alternatives, urging policymakers to view the climate benefits of forests as a solution rather than a problem.

(PRESS RELEASE) SOLNA, 9-Apr-2024 — /EuropaWire/ — The climate crisis is acute, and fossil emissions are a major part of the problem. At the same time, the full climate impact of forests has not been fully recognised in the EU, as policies focus on carbon sinks and disregard the role of wood products. This limits the use of forest raw materials despite their contribution to the substitution of fossil- and fossil-intensive raw materials to reduce fossil emissions.

A new report by AFRY, commissioned by FAM, which is owned by the three largest Wallenberg Foundations, shows that this perspective needs to be nuanced. 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. This part of the climate benefits of forests has, unfortunately, often received less attention.

Forests and the forest sector can play a key role in the climate transition in several ways: growing forests remove carbon from the atmosphere and store it in the forest, wood products store carbon throughout their life cycle, and wood products and bioenergy can replace fossil materials to reduce emissions, which is the focus of this report.

Håkan Buskhe, CEO of FAM, says:

By clarifying the climate benefits of forest-based products, we want to contribute with an updated decision-making basis for measures and decisions related to forestry issues. The substitution potential and climate benefit of the forest value chain is an important piece of the puzzle in dealing with climate challenges, both for Sweden and Europe.

“We need to pay more attention to the substitution effect and benefit from it to meet the climate challenge. The report specifically shows that forest products such as cartonboard, sawnwood and cellulosic textiles reduce emissions from fossil-based materials by 390 million tonnes of carbon dioxide equivalents at the EU level every year. And the potential is even greater. Based on the main scenario developed in the report, the substitution effect could increase to as much as 561 million tonnes of carbon dioxide equivalent by 2050. This is equivalent to about a quarter of total EU emissions from the energy, manufacturing and transport sectors”.

Jonas Gustavsson, President and CEO of AFRY, states:

“To reduce our climate impact, we need to reduce our use of fossil resources in both materials and our energy mix. Forests play a key role in replacing fossil fuels with more sustainable and circular raw materials. This report is an important contribution to the debate and highlights the benefits of active and responsible forestry and its role in phasing out fossil raw materials”.<

It is time to see the climate benefits of forests as a solution, not a problem. By understanding and utilising the substitution potential of forests, we can create a sustainable future for both Sweden and Europe.

Media Contacts:

Sami Pastila
Senior Principal, Management Consulting

Salla-Mari Järvinen
Manager, AFRY Management Consulting

SOURCE: AFRY