Finland’s National Forest Programme 2015

1.1 Increasing the value added and providing new products and services 13

1.2 Utilising the harvesting potential 13

1.3 Sustainability of roundwood production 15

1.4 Profitability and holding size in private forestry 16

1.5 Condition of transport networks 18

1.6 Sufficiency of labour and entrepreneurship 19 2 Enhancing the climate and energy benefits of forests 20

2.1 Energy from wood 20

2.2 Wood products 21

2.3 Climate change and forestry 22 3 Protecting the biological diversity and environmental benefits of forests 24

3.1 Biological diversity of forests 24

3.2 Water and soil 25 4 Promoting the use of forests as a source of recreation and culture 26

4.1 Ecotourism and the natural produce industry 26

4.2 Recreational use of forests and the right of public access 27

4.3 Culture based on forests and wood 27 5 Strengthening the skills, expertise and acceptability in the forest sector 29

5.1 Foresight work in the forest sector 29

5.2 Research and development in support of business and entrepreneurship 29

5.3 Professional training in the forest sector 30

5.4 Social acceptability of the forest sector 32

5.5 Forest-related knowledge and skills among children and young people 32 6 Promoting sustainable forest management in international forest policy 33

6.1 International forest policy 33

6.2 Forest affairs in the European Union 33

6.3 Development cooperation and other bilateral cooperation 34 IMPLEMENTATION, MONITORING AND FURTHER DEVELOPMENT OF THE PROGRAMME 35 PROGRAMME FUNDING 36 IMPACTS OF THE PROGRAMME 38 PREPARATION AND EVALUATION OF THE PROGRAMME 41 BACKGROUND MATERIAL 43 Participants in the preparation of Finland’s National Forest Programme 2015 45 APPENDICES 48 Appendix 1 Dissenting opinion 48 5 Executive Summary New products and services New customer-oriented products and services can be created using Finland’s National Forest Programme 2015 was adopted as a Gov- wood and its constituent materials in the production of, for exam- ernment Resolution on 28 February 2008. It aims to increase the ple, bioenergy, chemicals or pharmaceuticals, and by taking exist- welfare of Finnish citizens through the diverse use of forests in ing products and developing them further into highly sophisticated compliance with the principles of sustainable development. products and service chains. Forest-based entrepreneurship will be diversified by promoting opportunities for ecotourism, the use of The programme was drawn up in broad-based collaboration with natural produce and forest-based service entrepreneurship. The interest groups steered by the Department of Forestry of the Min- State will promote the creation of forest-based value chains by istry of Agriculture and Forestry and with support from the Nation- funding research and development programmes and investments al Forest Council. The proposals of the interim report of the work- by small and medium-sized enterprises. ing group chaired by Esko Aho published on 15 February 2008 have also been taken into account. The profitability of family forestry will improve in the future thanks to the traditional sale of timber and pulpwood, now supplemented The underlying idea in the programme is that forest-based manu- with sale of wood for energy and trade in natural and recreation facturing and service production can be expanded while securing values. In the future, the forest carbon sink may become a tradable the social acceptability, economic viability and ecological, social or leasable value. and cultural sustainability of the forest sector. As production in the forest sector must be market-oriented and based on customer Increasing the use of domestic wood needs, the private sector has a vital role to play. It is the task of the public sector to create such preconditions that forests can be man- The aim is to increase the use of domestic wood by 10–15 million aged in a competitive way. cubic metres per year. This calls for rapid action. Although timber trade is a matter for market participants, its preconditions can be The purpose of the National Forest Programme is to increase improved by providing forest owners with up-to-date information welfare from diverse forests. The vision, or target state, of on forest resources and advising them about the potential of their the programme is set for 2015, when Finland is a world pio- forests, by developing services for forest owners and revising taxa- neer in sustainable forest management, the compe- tion to offer better incentives. To enable year-round transportation tence of the sector has been refined into new com- for forestry and the forest industry, the State must in the near fu- petitive products and services, the use of domestic ture begin to invest in the improvement and maintenance of all wood has increased significantly and forest biodiver- roads as well as the improvement of the rail network. sity has improved. Increasing harvests and other silvicultural works, the production of Finland’s National Forest Programme 2015 is constructed upon six energy from forests and the needs of the wood products industry, priorities: all call for more labour in the forest sector. Improving education •• Securing a competitive operating environment for the forest and training in terms of dimensioning, content as well as more industry and forest management; flexible forms of education is a central aspect of the programme. •• Enhancing the climate- and energy-related benefits of forests; The diversifying use of forests – further refinement of wood and •• Protecting the biological diversity and environmental benefits energy production, conservation of biodiversity and the recreation- of forests; al use of forests, as well as forests as carbon sinks – all these de- •• Promoting the use of forests as a source of culture and mand an increase in growing stock. The minimum target for the recreation; increase set for 2015 is 100 million cubic metres per year. Given •• Strengthening skills, expertise and acceptability of the forest the current age structure of Finnish forests, heavy investment is sector; needed in forest improvement to increase growth. Targets for seed- •• Promoting sustainable forest management in international ling stand management, thinnings and ditch reconditioning have forest policy. been raised considerably, while emphasising the need for better management of regeneration areas. The incentive for this is offered Each priority has its own objectives and measures to attain them by higher financial support under the Act on the Financing of Sus- have been proposed. tainable Forestry. 7 Biological diversity and energy from wood Funding from several ministries The conservation of forest biodiversity, particularly in southern Fin- More clearly than its predecessor, NFP 2010, Finland’s National For- land, calls for additional measures. In parallel with the National est Programme 2015 is a programme of ministries. The extra fund- Forest Programme, a Forest Biodiversity Programme for Southern ing requirement for the programme is € 40 million per year from Finland 2008–2016 (METSO) was prepared. The policies and meas- the Ministry of Agriculture and Forestry, €27 million from the Min- ures outlined in the METSO programme are an integral part of the istry of the Environment , and € 60 million from the Ministry of range of instruments in the NFP to protect biological diversity in Transport and Communications. The need for additional funding for the future. The METSO programme contains a broad range of in- research in all administrative sectors is about €70 million. Corpo- struments based on voluntary measures, and an ambitious financ- rate funding from the Ministry of Employment and the Economy ing programme. and appropriations from the Ministry of Education are also vital for the attainment of the goals of the programme. The role of forests in energy production and the mitigation of cli- mate change occupy an important place in the National Forest Pro- Wide-ranging impacts gramme. Healthy, growing forests and the use of wood in construc- tion contribute to the mitigation of climate change by sequestering The implementation of Finland’s National Forest Programme 2015 carbon, and greenhouse gas emissions are reduced by the replace- has significant economic and social impacts. The value of produc- ment of fossil energy sources with wood. The goals of the EU for tion in the forest sector is estimated to grow by € 500–700 million increasing the use of renewable energy are challenging for Finland, per year, the annual amount of stumpage earnings and income but also offer many opportunities for the forest sector. The goal is from energy wood by € 400–500 million, annual State revenues to triple the use of forest chips in Finland. Attainment of this and by at least € 200 million, and the value of ecotourism by € 200 other goals in the use of wood-based energy calls for concerted million per year. The sector will provide jobs for 5,000 people more effort by several administrative sectors as well as the private sec- compared to a situation without the programme measures. tor. The National Forest Programme was drawn up in tandem with the preparation of the National Energy and Climate Strategy. Increasing the volume of roundwood and energy wood harvesting will have an impact on the forest environment. The best and most cost-effective methods available will be used to conserve forest bio- diversity and to reduce environmental loads to water from forestry. 8 TARGET STATE FOR THE FOREST SECTOR 2015 Current status of forests in Finland Forests are the most important economically exploited natural re- of wood-based panels, in spite of the fact that the volume of grow- source in Finland. The growing stock in our forests is healthy and ing stock in Finland is only 0.5% of the total growing stock of all productive. The annual increment is nearly 100 million cubic me- forests in the world. tres. Forests also yield diverse and abundant harvests of game, ber- ries and mushrooms, in addition to being an important element of Finland is the leading country in the European Union in terms of the living environment and recreation of Finns. Forests are also of using wood for energy production. Wood accounts for about 20% growing regional importance to the tourist industry. of the total energy consumption, which is five times the average in the EU. A considerable part of the species of flora and fauna in Finnish na- ture are dependent on forests, either directly or indirectly. 9% of all Future importance of forests in Finland forest land in Finland is under conservation, a considerably higher percentage than in other European countries. In terms of conserva- With the increasing scarcity of non-renewable natural resources, tion needs, however, conservation areas are distributed unevenly the strategic importance of renewables increases as more and over the territory of Finland. more countries seek to follow the principle of sustainable develop- ment. Forest ownership is distributed among many different groups. The majority of forests are owned by about 900,000 private families. Forests provide renewable raw material to the forest industry as The majority of forest owners live in the same region as their for- well as many other industries for the manufacture of existing and ests. Four fifths of stumpage earnings remain in the region where new products. Forests are also a source of many immaterial com- the forest they come from is located. Harvesting, transportation modities which will become more important as the general stand- and silviculture are an important source of income in rural areas. ard of living and the amount of leisure time increase. The value of Along with their value as recreation, berry collecting and hunting forests is also enhanced as we seek ways to mitigate climate also have an economic value for the rural population. Forests are change and produce energy. therefore a central factor in the maintenance of the vitality of the countryside and for balanced regional development. The material and immaterial commodities of forests create new opportunities for many types of entrepreneurship, work and live- The forest sector is extremely important for Finland. The combined lihood – for the general welfare of citizens. Transgenerationality, contribution of the forest sector and furniture industry to the gross the core of sustainable development, demands that forest biodi- domestic product is nearly 8%, and they account for 3.5% the em- versity be maintained as part of the forest management regime. ployed workforce. The average figures for the world are 1.2 and 0.4%, respectively. Income from forest industry exports accounts for The increasing interest among citizens towards renewable com- more than a fifth of the national export income; the figure is tenfold modities and energy and the growing importance of forests as a compared to other countries of the world. source of recreation and wellbeing create positive preconditions for an increasingly diverse and multiple use of forests, allowing a The Finnish forest industry’s domestic production accounts for 5% more positive public image to be created for wood processing and of the global production of paper, paperboard and pulp, and 2.4% the entire forest sector. Areas of protected forests and forests under restricted forestry use, 2006 Entire country Southern Finland Northern Finland 1,000 ha Share % 1,000 ha Share % 1,000 ha Share % Total land area (forests and scrub land, NFI 10, 2004–06) 22 914 100,0 11 560 100,0 11 355 100,0 Strictly protected forests 1 885 8,2 203 1,8 1 682 14,8 Protected forests where cautious fellings are possible 173 0,8 53 0,5 120 1,1 Protected forests (1+2) 2 058 9,0 257 2,2 1 802 15,9 Forests under restricted forestry use 823 3,6 165 1,4 657 5,8 Protected forests and forests in restricted forestry use, (1+2+3) 2 881 12,6 422 3,7 2 459 21,7 Source: Finnish Forest Research Institute 9 Forest ownership 2006, %of forest land Municipalities, parishes, Professional foundations; 6 status Companies; 9 Wage earners; 26 Private individuals own 59% or forest land, the State one fourth, Persioners; 37 forest companies slightly under one tenth, with the rest are State; 26 Farmers; 29 owned by municipalities, parishes and foundations, or are Other entrepreneurs; 6 in collective ownership. Others; 2 Ownership by pensioners and wage earners has increased, while the farmers’ share has dec- reased markedly since the 1990s. The average age of family Sources: owners is 59. Data for private forest owners is from 2003. Value of forest-based functions and services in 2006, mill. euro Pulp and paper industry, value of production1 14,639 1 Wood products industry, value of production 6,279 1 Forestry, value of production 3,431 2 - stumpage earnings, gross stumpage income 1,702 - harvesting and transportation, silviculture, services etc. value of production 1,729 Ecotourism, estimate of value added1 ~ 800 Energy, horticultural and environmental peat, estimated turnover3 ~ 200 2 Forest chips + fuelwood, value on site of use + stumpage value 140 2 Berries, mushrooms, herbs and lichen, trade value + estimate of collecting for household use ~ 120 2 Game + reindeer husbandry, calculated value + slaughter income 87 The value of recreational use of forests is calculated by putting a price on visits to forests, the total coming to about a billion euro2 The figures are not completely commensurate, and some are based on estimates. Nevertheless they give an idea about the scale of the value of forest-based functions and services. Source: 1Statistics Finland, 2Finnish Forest Research Institute, 3Association of Finnish Peat Industries National Forest Programme 2010 – attainment of key goals Initial status 1998 Status 2006 Target 2010 Roundwood removals, mill. m3/yr 58 57 63–68 3 Use of forest chips, mill. m /yr 0,8 3,4 5,0 Silvicultural investments, € mill/yr 227 241 285 Net result of private forestry, €/ha/yr 116 88 120 Forest sector exports, € bill/yr 12.8 12.8 14.9 Wood products industry exports, € bill/yr 2.9 2.9 5.7 Employed in forest sector, persons 95,000 89,400 80,000 Figures in 2007 prices, adjusted with cost of living index. 10 The short-term challenges include rising production costs, tighten- through the diverse use of forests following the principles of sus- ing international competition between forest industry companies, tainable development. the need to increase the use of domestic roundwood, and the suf- ficiency of the workforce. The importance of using domestic wood The programme has been prepared in broad collaboration with is highlighted by factors that increase the uncertainty of round- various interest groups, conscious of the fact that the forest sector wood imports. is vital to the promotion of sustainable development. Those par- ticipating in the preparation of the programme share a broad view Long-term challenges include the changing demographic structure, of the issue and the following values: changes in economic structures brought on by globalisation, the •• appreciation of nature in all actions; depletion of non-renewable natural resources, as well as climate •• recognition of customer-orientation as a key preconditi- change and the globally growing need for energy, which are all on for profitable and competitive operation; deeply connected with each other. Nevertheless they offer the for- •• high-standard and diverse expertise; est sector opportunities to expand into new areas and thereby to •• collaboration that is based on transparency and trust increase public welfare. between the various actors. With respect to energy production and climate change, the forest The underlying principle in the programme is that manufacturing sector has become increasingly important but also more complex and service production based on forests and wood can be in- – a fact viewed as a benefit by some, a disadvantage by others. The creased while maintaining the social acceptability, economic viabil- harmonisation and integration of the multiple functions of forests ity and ecological, social and cultural sustainability of the value call for an open-minded and comprehensive examination of the chains of production from the forest to the market. ways in which forests are used today. Another basic principle is that operations based on the increasing Changes in the operating environment of the forest sector could use of forests must be customer- and market-oriented. The private not be fully anticipated in the preparation of the Finnish Forest Pro- sector is therefore vital for the attainment of the programme ob- gramme 2010, and all of its goals will not be attained. This was jectives. It is the task of the public sector, however, to create such one of the reasons for revising the programme. The next table preconditions that forests can be used in a competitive way. presents the key goals of the forest programme and their attain- ment. The matter has been discussed more extensively in the Fu- The general principle of the programme is that it is possible to ture Review for the Forest Sector (2006). achieve a balanced integration of the multiple uses of forests so as to benefit from the particular strengths of each region. Economi- cally, socially and ecologically sustainable solutions will be used in Finland’s National Forest Programme 2015 forest management, following the internationally accepted ecosys- Finland’s National Forest Programme 2015 is a Government pro- tem approach, to protect natural functions valuable to humanity gramme which aims to increase the welfare of Finnish citizens and nature alike. In parallel with the National Forest Programme, the Forest Biodiversity Programme for Southern Finland 2008–2016 VISION New co servic mpetitive es de produ riv ct fores ed from to s and and n t kno w-ho p level Finl nner i ry w f o rer forest u - a nable ei i c woo d sust e s t f dom kably Use o ed remar ty increa s e rsi bly a i o div ark t b em res ed r Fo eas r inc 11 (METSO) has been prepared. The METSO programme is an integral tional and international forest policies, as forest issues are simul- part of the National Forest Programme. taneously both local and international. The operating principle of the National Forest Programme is more Finland’s National Forest Programme 2015 is constructed upon six welfare from diverse forests priorities: •• Securing a competitive operating environment for the forest In keeping with Finland’s National Strategy for Sustainable Devel- industry and forest management; opment, the aim of Finland’s National Forest Programme 2015 is •• Enhancing the climate- and energy-related benefits of to ensure that forests as a renewable natural resource are used for forests; economic operations and the promotion of welfare in a way that •• Protecting the biological diversity and environmental benefits ensures the regeneration of forests from one generation to the of forests; next. Welfare here is a broad concept, consisting of many material •• Promoting the use of forests as a source of culture and and immaterial factors, such as health, employment, livelihood, recreation; recreation as well as a clean, healthy and vigorous environment. •• Strengthening the skills, expertise and acceptability in the Biodiversity not only strengthens the vitality of forests but also forest sector; enables the diverse and extensive use of forests. •• Promoting sustainable forest management in international forest policy. The vision, the target state, of the National Forest Programme is for 2015, when Finland is be a pioneer of sustainable for- Key measures in the short term involve increasing the use of domes- est management and expertise. The national compe- tic wood, improving the transportation network and ensuring the tence has been refined into new competitive products sufficiency of skilled labour for the harvesting and processing of and services, the use of domestic wood has increased both roundwood and energy wood. These measures must be com- significantly, and the biological diversity of forests has plemented with future-oriented R&D to develop new products and improved. services based on forests and wood, and to enable extensive com- mercialisation. Key measures during the programme period will be The vision is challenging for the forest sector. Attaining it will re- those designed to minimise damage to nature caused by forest man- quire a great deal of work and resources. The development of a agement; implementation of the METSO programme; mitigation of value chain from the forest to the consumer that covers all aspects climate change; and increasing the production of bioenergy. of forests and incorporates current and new forest-based products and services; integration of the multiple uses of forests; and the Implementation of the programme increases the opportunities for conservation of biodiversity, all these require sustained and seam- the multiple use and management of forests. Direct beneficiaries of less cooperation between the private and the public sector, as well this will be companies whose business is based on the use of forests. as active participation and willingness to change. Attaining the Improvements in their operating conditions will benefit forest own- goal also calls for sustained research and development as well as ers and general citizenry alike. Growth in economic activity will also education that meet the needs of the labour market. The attain- be reflected in State revenues. Forest management practices de- ment of the target state also calls for anticipatory and active na- signed to improve water protection and the conservation of forest biodiversity will produce significant environmental benefits Key terms Forestry Denotes roundwood production, forest and nature management and harvesting. Forest industry Denotes mechanical forest industries (sawmill, board and other wood products) and chemical forest industries (pulp, paper and paperboard). Forest sector Comprises forestry and forest industry. Forest cluster Comprises the forest sector and closely related branches of mechanical engineering and chemical industry, automation and packaging systems operations, printing industries, power production as well as related research and consultation. Extended forest cluster In addition to the forest sector, includes also the production, processing and services as well as public goods based on both material and immaterial non-wood products. (In connection with education and training, the extended forest cluster has traditionally mainly denoted ordinary professions within forestry.) Sustainable forest Denotes the management of forests and forest lands in a way that preserves their diversity, productivity, regenerative management capacity and vitality as well as the opportunity to carry out now and in the future significant ecological, economic and social activities on local, national and global levels in a way that does not harm other ecosystems. Ecosystem approach Denotes the framework of the UN Convention on Biological Diversity (CBD) which seeks to attain a holistic view in the sustainable management, stewardship and protection of natural areas. The approach emphasises the preservation of the structure and functioning of ecosystems so as to protect natural functions vital to humanity and nature alike in the future. According to a report of the Ministerial Conference on the Protection of Forests in Europe, in terms of the content the ecosystem approach reflects the sustainable management of forests. 12 PRIORITIES, OBJECTIVES AND MEASURES 1 Securing a competitive operating environment for the forest industry and forest management

1.1 Increasing the value added and providing b) Companies in the forest sector will increase resources for new products and services R&D and direct them into the development of new products and services (companies in the forest sector). Wood is used in more ways than at present to provide c) Actors in the forest sector will step up their cooperation in customer-oriented, competitive products and services. research, development and production, and small and medium-sized enterprises in particular will be supported to master the value chain from forest to market (Ministry of The competitiveness of the Finnish forest industry is based on cus- Employment and the Economy, Employment and Economic tomer-oriented products with high added value. The profitability of Development Centres, forest companies, universities, research current products can be enhanced by improving the efficiency of institutions). both production and the use of raw materials, and by improving d) The operating conditions of small forest product enterprises technology. New products and practices also need to be developed, in rural areas will be improved through development and as well as entirely new forms of business operation. Technological investment subsidies (Ministry of Employment and the expertise needs to be complemented by improved commercial skills Economy, Ministry of Agriculture and Forestry, Employment as well as the creation of new technological and service enterprises. and Economic Development Centres). Service provision and networking between major industrial players e) Depreciations for companies will be retained on at least the and the SME sector will become increasingly important. current level to encourage the adoption of new technologies (Ministry of Finance). Opportunities for new wood-based products exist in the wood f) Sales of forest industry products in export markets will be products industry, construction industry, smart paper, bioenergy promoted by participating in international cooperation and biorefinery products, as well as the food and the pharmaceuti- projects and by supporting sales promotion work in Finland cal industries. The use of wood can be increased by the develop- and neighbouring regions (forest companies, interest ment of wood-based products in which the structure of wood has organisations, Puuinfo, Ministry of Employment and the been modified chemically or physically, or wood is combined with Economy). other materials. Other business concepts can be combined with the g) A programme will be drawn up for the development of manufacture of wood-based products, such as increasing the pro- service business operations in the forest sector (Ministry of vision of services (installation, maintenance and servicing). Biore- Employment and the Economy, Ministry of Agriculture and fineries are being planned to operate in conjunction with pulp Forestry). mills, using biomass to manufacture raw material for biodiesel, ethanol and products for the chemical industry. Target level for 2015 The exploitation of wood-related opportunities calls for R&D, will- The value of the forest industries and wood products industries in ingness to change and take risks, and innovative cooperation Finland has increased by 20% (average increase €19,560 mill/year across the entire forest cluster. in 2002–2006). Necessary measures1

1.2 Utilising the harvesting potential a) The Government will support research and development for improving the forest sector’s innovation environment in ways The volume of annual fellings in Finland increases specified in Section 5.2 (Ministry of Employment and the 10–15 million cubic metres. Economy, Ministry of Education, Ministry of Agriculture and Forestry). The demand for domestic roundwood is expected to increase 1 sharply due to reduced dependence on imported wood and EU The responsible actor is indicated after the measure in parentheses (under- lined) as well as other principal actors. The actors will be listed in detail in the goals for increasing the share of renewables in energy consump- revised action plan. tion. On average, the forest industry used 71 mill. cubic metres of 13 Commercial fellings in private forests decreased up to 2006, whereas harvesting in forests owned by forest companies have been on the increase since 1997. The volume of imports more than doubled, but turned into decline in 2006. roundwood per year in 2002–2006, of which the share of domestic value of which was estimated at €38 million. Fellings undertaken wood was about 55 million. by Metsähallitus were 5.9 million cubic metres. According to the latest National Forest Inventory, the annual incre- Objectives 1.2, 1.3 and 1.4 (utilisation of harvest potential, sustain- ment (98.5 million m3) would allow greater harvest volumes than ability of roundwood production and profitability of forest manage- at present. The annual harvestable volume without endangering ment) are very much interdependent. As a result, any measures re- the sustainability of roundwood production and without addition- lated to them support the attainment of all three objectives, and al conservation is 72 million cubic metres. The added felling poten- also have a bearing on the labour needs of the forest sector. tial is mostly in private forests. Fellings can be increased particu- larly in areas dominated by pine and small-diameter stock as well Necessary measures as on peatlands. The central concern is that forest owners should have up-to-date information about the harvest potential and man- a) Management planning and advisory services for forest owners agement needs of their forests. will be improved by ensuring that information about forest resources is up to date, and by stepping up and improving the Private forests (excluding forests owned by the industry and insti- methods of collecting and using that information. The use of tutional organisations), also called family forests, account for 80% other site-specific natural resource information systems will be of all domestic roundwood used by the forest industry. The signifi- increased (Ministry of Agriculture and Forestry, Forestry cance of State forests for roundwood supply is the greatest in Development Centre Tapio, Forestry Centres, Forest Manage- northern and eastern Finland. Challenges to supply include the ment Associations). small size of family forest holdings, structural changes in their own- b) Advisory services for forest owners will be developed and ership and the need to focus fellings increasingly on thinnings and improved to ensure that forest owners are aware of the peatlands. harvest potential and management needs of their forests as well as alternative methods for implementing management The area of forest land in southern Finland in particular will de- measures (Ministry of Agriculture and Forestry, Forestry crease as increasingly greater tracts of land are needed for devel- Development Centre Tapio, Forestry Centres, Forest Manage- opment and transportation. Roundwood production and felling op- ment Associations, forest companies). portunities are restricted by land use planning and social obliga- c) Advisory services for forest owners provided by Forestry tions throughout the country. For example, the social obligations Centres will complete the changeover to electronic systems to placed upon State forests under the Act on Metsähallitus for 2006 produce electronic services based on forest resource data for decreased fellings by Metsähallitus by 1.2 million cubic metres, the forest owners and actors authorised by them (Ministry of 14 Definitions Commercial removals Roundwood acquired by the industry for its own use or for export. Roundwood Unprocessed wood that meets the dimensions for industrial use; sawlogs and pulpwood. Small-diameter tree Roundwood that does not meet the dimensions for industrial use. Often used for fuelwood. Roundwood removal All roundwood and small-diameter trees felled for industrial and household use as well as export. Drain Roundwood removals plus logging residue and deadwood (natural drain). Increment Increment includes both roundwood and small-diameter wood, but not branches, crowns or stumps. Agriculture and Forestry, Ministry of Finance, Forestry Develop- forests. The mitigation of climate change and growing use of re- ment Centre Tapio, Forestry Centres). newable energy both require increased wood production. d) To meet increasing obligations, public administration of the forest sector will be improved, the division of duties among The latest National Forest Inventory (2007) suggests that in forest actors will be clarified, and the preconditions of 2006–2015 the need for seedling stand tending increases 1.6-fold competitiveness will be improved (Ministry of Agriculture and and the need for first thinnings 2.2-fold compared to the use of la- Forestry). bour in the preceding 10-year period. There is also great variation in e) A comprehensive national programme for peatlands will be the quality of forest regeneration, both regionally and as regards the drawn up, as well as a development programme to improve methods employed. Increasing the use of domestic wood will also the cost-effectiveness of increasing thinnings and peatland increase the amount of silvicultural works. Studies indicate that ad- fellings (Ministry of Agriculture and Forestry, Ministry of visory services for forest owners and public financial support can Employment and the Economy, Ministry of the Environment, bring about significant increases in the labour demand in forest man- Central Union of Agricultural Producers and Forest Owners, agement. Forestry Development Centre Tapio). f) Management goals for commercial forests administered by According to the latest NFI, moose populations have damaged Metsähallitus will be defined in conjunction with the seedling stands on 490,000 ha, or 12% of the total area. Compared preparation of the strategy and natural resource plans of to the previous inventory, the area of damages is 1.7 times greater. Metsähallitus (Ministry of Agriculture and Forestry, Metsähalli- In many places, moose prevent regeneration with the most suitable tus). tree species for the site, birch and pine. Another significant damage g) The effects of land use restrictions on the exploitation of agent is root-rot fungus, which attacks spruce stands. The value of regional harvest potential will be studied (Ministry of losses caused annually by root-rot is about €50 million. Climate Agriculture and Forestry, Finnish Forest Research Institute). warming facilitates the spreading of the root-rot fungus. Target level for 2015 Necessary measures Annual fellings of roundwood increase to 65–70 million cubic me- a) The attainment of goals for forest management and forest tres (average volume in 2002–2006 was 44 million m3). improvement (see Table) will be promoted by the means of financial support, advisory services and forest management Holding-specific up-to-date forest management plans cover 75% planning (Ministry of Agriculture and Forestry, Forestry of the area of forest land in private ownership (current figure 43% Development Centre Tapio, Forestry Centres, Forest Manage- in 20062). ment Associations). b) The quality of regeneration will be improved by adopting a monitoring system for the quality of forest regeneration

1.3 Sustainability of roundwood production covering the entire country (Ministry of Agriculture and Forestry, Forest Management Associations, Forestry Centres). The production conditions of forests improve and the c) Measures to prevent root-rot fungus will be stepped up annual increment increases. (Ministry of Agriculture and Forestry, Forest Management Associations, Forestry Centres, forest owners, buyers of wood). Increasing the quality and quantity of roundwood production en- d) Implementation of the Tree Breeding Programme 2050 will sures the long-term conditions for the wood processing industry as continue, ensuring also the availability of forest reproductive well as the protection of biodiversity and the non-wood uses of material that is of suitable provenance for the site and meets the quality criteria for silviculture (Ministry of Agriculture and 2 Includes the forests of municipalities and parishes and jointly-owned fo- rests. 15 Annual target levels for forest management and improvement works Type of work All forest owners, total of which under funding for Sustainable Forest Management1 Artificial regeneration, ha 160,000 21,000 Management of seedling and young stands, ha 265,000 168,000 Ditch reconditioning, ha 100,000 80,000 Forest roads - improvement, km 4,000 3,000 - new roads, km 640 320 Fertilisation, ha 80,000 21,000 - remedial fertilisation, ha 30,000 21,000 - fertilisation for growth, ha 50,000 0 Prevention of root-rot, ha 65,000 51,000 1 Public funding covers only part of the overall cost of the works. Forestry, Finnish Forest Research Institute (Metla), seedling Agriculture and Forestry, Ministry of Employment and the producers). Economy, Forest Research Institute, Forestry Development e) The programme for the establishment of seed orchards for Centre Tapio). forest trees will be reviewed to bring it in line with the tree j) It will be ensured that foreign pests do not spread in forests breeding needs dictated by increased regeneration fellings through coniferous chippings or sawn goods or packaging (Ministry of Agriculture and Forestry, Finnish Forest Research made of these (Ministry of Agriculture and Forestry, Finnish Institute, Forestry Development Centre Tapio, Metsähallitus). Food Safety Authority, customs). f) Quantitative goals for the early management of seedling stands will be determined, and their attainment will be Target level for 2015 promoted using training and advisory services (Ministry of Agriculture and Forestry, Forestry Development Centre Tapio, Of the area of seedling stands and young artificially generated for- Forestry Centres, Forest Management Associations). ests, 80–85% are of good or satisfactory quality in terms of forest g) Fertilisation for health and growth and also ash fertilisation management (figure for 2006 was 69%). will be increased in a way that prevents environmental loads to water, and fertilisation methods will be developed The annual increment is at least 100 million m3 (98.5 mill. m3 in (Ministry of Agriculture and Forestry, Forestry Development 2006). Centre Tapio, Finnish Forest Research Institute, Metsähallitus, forest companies, forest owners).

1.4 Profitability and holding size in private h) A geographic information system (GIS) will be set up by forestry 2010 that will cover the numbers of moose and the damages caused by them. Methods will be devised to The profitability of private forestry improves and the reduce moose damage using active measures in both game average size of holdings increases. and forest management. The Ministry of Agriculture and Forestry will draw up a national strategy for moose management and will review the moose damage compensa- Two of the key factors affecting the profitability of forest manage- tion system (Ministry of Agriculture and Forestry, Game and ment are market price of wood and sales volumes. Profitability can Fisheries Research Institute, Forest Research Institute, be improved by exploiting available harvest opportunities, con- Forestry Development Centre Tapio, Central Union of ducting appropriately timed management works, developing the Agricultural Producers and Forest Owners). methods of forest management and improvement, promoting com- i) The development and adoption of mechanised forest petition in the market for forest services, and by chaining sites slat- management methods will be promoted (Ministry of ed for management and harvesting. Forest owners can also im- 16 The profitability (business income) of private forestry continued to decline up to 2006, whereas record prices for roundwood and harvests in 2007 pushed profitability to a higher level than ever before (2007 prices, living cost index). prove profitability by performing management works on their hold- the forests owned by the baby boomer generation is passed on ings by themselves. Increasing the use of wood for energy and to the next generation after 2015. trade in ecological and recreation values also support the improve- ment of profitability. Necessary measures In order to make use of the many opportunities offered by forests a) Preconditions for generation transfers, increasing of holding and to improve profitability, advisory services and education are size and forest management in general will be improved needed as well as marketing of forest management services. These using taxation: revising inheritance and capital transfer should be directed particularly for new forest owners, female own- taxation in line with the strategies of the Government ers and owners living in cities. Programme; extending the scope of tax deductions for forest management; exempting sales income from first thinnings There are about 443,000 family forests holdings of at least two from tax; raising the threshold of tax exemption for income hectares in size, with the average size of 24 hectares. On smaller from work performed on the holding; exempting from tax the holdings it is difficult to engage in long-term silviculture profitably. harvesting of wood for energy by the owner; and removing Holdings are often divided into smaller lots in connection with gen- the tax disadvantage of silvicultural works performed by the eration transfers, but many estates also remain unpartitioned for owner (Ministry of Agriculture and Forestry, Ministry of a long time. A general trend since the 1990s has been for small Finance). holdings to become even smaller, although large ones have also b) Possibilities for using extra tax deductions to support the grown bigger to a some extent. New, developed forms of joint implementation of final fellings, forest regeneration and ownership have rarely been applied to forest holdings. management will be studied (Ministry of Agriculture and Forestry, Ministry of Finance). The structure of private forest ownership is expected to change, c) Legislation will be developed regarding the establishment of with the average age of owners continuing to increase over the new forms of forest ownership, such as real estate and next ten years, and the proportion of urban and female owners capital investment funds, and for shortening the time periods increasing and that of farmers decreasing. The objectives of for- when holdings remain unpartitioned estates (Ministry of est owners with regard to their forests become more diverse. Agriculture and Forestry, Ministry of Finance). With increasing levels of income and wealth, the share of forest d) Practices for the redistribution of forest holdings will be income of the owner’s total income will continue to decrease. developed with a view to improving plot structure. The joint One significant change in forest ownership will take place when ownership of forests will also be developed and related 17 information and advisory services will be increased (Ministry possible without a transport network that is usable throughout the of Agriculture and Forestry, Forestry Development Centre year. A significant part of that network consists of rural low-volume Tapio, Forestry Centres, Forest Management Associations, roads and private roads, all of which are important elements for District Survey Offices, joint owners of forests). the overall functioning of the traffic route network. e) Forest legislation will be reviewed so that it will support the goals of the National Forest Programme better than at Improving the condition of roads serves agriculture and other live- present (Ministry of Agriculture and Forestry). lihoods, the mobility of the rural population as well as the manage- f) The Finnish Forest Research Institute will study the structure ment and recreational use of forests. It is also a necessary precon- of private forest ownership and draw up forecasts regarding dition for reducing the seasonal fluctuation of harvesting volumes the structural change and its impacts in order to facilitate the and long haulage of wood. assessment of needs for the improvement of ownership structure and for developing services for forest owners Necessary measures (Ministry of Agriculture and Forestry, Finnish Forest Research Institute). a) Deficiencies in the capacity of the main rail network will be g) An R&D programme improving the cost-efficiency and quality rectified, and the proposals of the working group on securing of silvicultural works will be carried out and the working timber transport on rail routes with low traffic volumes methods developed within it will be put into practice by 2011 (2007) for the improvement of the rail network will be (Ministry of Agriculture and Forestry, Finnish Forest Research implemented (Ministry of Transport and Communications, Institute, Forestry Development Centre Tapio). Finnish Rail Administration). b) The safety and functionality of the main road network as well Target level for 2015 as the quality of public low-volume roads will be improved, the volume of repairs of frost damage will be increased, and The net result (operating result) of private forestry in Finland is at winter maintenance of roads will be improved (Ministry of least €120/ha (2002–06 average was €98/ha, in 2006 prices). Transport and Communications, Finnish Road Administrati- on). The average size of private forest holdings increases to 50 hectares c) Sufficient inland and maritime waterways will be maintained by 2050 (24ha in 2006). to meet the needs of raw material supply and exports of the forest industry, and the lease on the Saimaa Canal will be extended (Ministry of Transport and Communications, Finnish

1.5 Condition of transport networks Maritime Administration). d) Government support for private roads will be increased, road The transport network is maintained and developed maintenance associations and services will be supported, and to allow competitive forest-related transports round the principles for calculating road maintenance units will be the year. reviewed (Ministry of Transport and Communications, Ministry of Agriculture and Forestry, Land Survey of Finland, Finnish Road Administration, Finnish Road Association, The forest sector is the single most significant user of transport Forestry Centres). services in Finland. The share of the forest industry of the overall e) The condition of forest roads will be improved on the lands volume of rail traffic is about 60%, about 30% of road haulage, of all owner groups (Ministry of Agriculture and Forestry, and nearly one half of maritime transport. Long distances call for Forestry Centres, private forest owners, Metsähallitus, forest efficient logistics and a traffic network that is usable throughout companies). the year. f) A programme for basic improvement of principal routes of road haulage of roundwood will be drawn up and imple- To be able to increase the use of domestic wood and forest chips, mented for private roads (Ministry of Transport and Communi- the road and rail network must be in good condition. Growing vol- cations, Ministry of Agriculture and Forestry, municipalities). umes of roundwood acquisition will lengthen the transport mileage, which will increase the need for rail transport. Nearly 1,000 kilome- Target level for 2015 tres of Finnish railway lines stand at risk of being closed down, which would lead to more road transports and greater emissions. The combined length of roads subject to restrictions due to frost damage is at most 500 kilometres (911km in 2006). In the first chain of the transport route roundwood and energy wood as well as harvesting equipment are transported with trucks, As a result of the reconditioning of the rail network, not more than wearing forest roads in particular, as well as the low-volume road 550km remain in the lowest service class (Class T4, capacity less network and bridges. Undisturbed transportation of wood is not than 20 tonnes) (figure for Class T4 in 2006 was 759km). 18 The annual total volume of reconditioned forest roads is 4,000 kil- Necessary measures ometres (2,457 in 2006). a) The methods, technology and operative models of forestry and roundwood acquisition will be developed to improve

1.6 Sufficiency of labour and productivity and working conditions and to provide emplo- entrepreneurship yment throughout the year (Ministry of Agriculture and There are enough competent employees and entre- Forestry, Ministry of Employment and the Economy, Finnish preneurs for the increasing and changing needs of the Forest Research Institute, Forestry Development Centre Tapio, forest sector. Work Efficiency Institute, Metsäteho, actors in this field). b) Employee welfare and capacity for work will be improved in companies and throughout the entire sector by making full Current trends in the productivity of work will lead to a reduced use of the support and expertise of public sector develop- need for labour. However, the demand for labour in forest manage- ment and financing organisations (Ministry of Social Affairs ment increases as a result of growing volumes of roundwood and and Health, Ministry of Employment and the Economy, energy wood harvesting and of silvicultural works. The competence companies, labour market organisations). requirements of the workforce increases as a result of the diversi- c) Marketing and recruitment will be targeted at young people, fication of jobs. The increase will be particularly notable in the case women, the urban population and immigrant as well as of drivers of forest machinery and trucks, but the future outlooks foreign labour (forest-based businesses, labour market in the wood products industry also indicate an increase in demand organisations, education institutions). for labour. d) The scope and flexibility of apprenticeship training as well as vocational adult and further education will be enhanced, Established as well as new ways of using forests will generate new and the related funding models will be improved (Ministry opportunities for jobs and entrepreneurship. These opportunities will of Education, Ministry of Employment and the Economy, be particularly important in rural areas. There will be more opportu- companies in this field). nities available in many forest services, in the production of energy e) Training, corporate and finance counselling as well as related wood, in ecotourism and the processing and refinement of natural research in marketing, management and business skills and produce as well as in the field of health products and services. So far risk management for forest entrepreneurs will be developed the proportion of women in the forest sector workforce has been (Ministry of Employment and the Economy, Ministry of rather small, although there are plenty of job opportunities in the Agriculture and Forestry, Ministry of Education, education growing sector. institutions, research institutions). f) Entrepreneurship in the forest sector will be promoted by Challenges to entrepreneurship include the periodic nature of em- developing legislation and corporate funding (Ministry of ployment in the sector, the availability of labour, deficiencies in ex- Employment and the Economy, Ministry of Agriculture and pertise and education that support entrepreneurship and, in par- Forestry). ticular, the high investment costs in forest machinery, road trans- g) The compilation of statistics concerning the operations of port and energy wood business. small and medium-sized companies in the forest sector (e.g. the number of enterprises, workforce, income development, Increasing dependence on technology, the reorganisation of tasks turnover and profitability) and the necessary information and diversifying job descriptions as well as internationalisation, all services will be improved (Ministry of Employment and the these call for continuous on-the-job training. The development of Economy, Statistics Finland, actors in this field). work methods and conditions, management methods and coping at work are among the key challenges in terms of the attractive- Target level for 2015 ness of the forest sector for employees. Forestry provides employment for at least 23,000 and the forest industries for at least 50,000 people, and the proportion of women of the total workforce exceeds 25% (in 2006 the number of em- ployed people in forestry was 22,700 and in forest industries 66,700, of which 18% were women). 19 2 Enhancing the climate and energy benefits of forests

2.1 Energy from wood tion capacity of forest chips is estimated to be about 12–15 million cubic metres per year. About 350,000 tonnes of wood pellets are also produced per year, of which one fifth is used domestically. The overall use of wood-based energy increases and the volume of forest chips used for energy production Wood and peat are often burned simultaneously in heat produc- rises to 8–12- million m3 per year. tion. Under the United Nations Framework Convention on Climate Change, peat is classified as a fossil fuel, producing fossil emis- Increasing renewable energy production is vital for the attainment sions. The European Parliament has proposed a new classification of the climate and energy policy objectives and energy self-suffi- for peat. In IPCC reports, peat is in the category of “other fossil ciency in the EU. The most promising avenues for increasing the use fuel”. The classification is as yet unestablished, which makes it dif- of wood for energy are to increase the use of wood chips in heating ficult to develop the use of peat as fuel. plants and to develop the biorefinery concept at pulp mills. Since renewable energy creates opportunities for business and employ- The use of wood-based fuels and their share of total energy con- ment in rural areas in particular, regional policy considerations also sumption has grown since 2001. In 2006, waste liquors and other support this aim. Increasing production of wood-based energy and by-products of the forest industry accounted for 52% of the con- the emergence of markets for energy wood will tighten the compe- sumption of wood-based fuels, 32% was in heating and power tition for wood. The challenge is to establish a controlled balance plants, and 16% in small residential houses. between the use of wood for manufacture and for energy. Necessary measures 5–6 million cubic metres of wood is used annually in small residen- tial houses, in addition to which over three million cubic metres of a) The national Energy and Climate Strategy and the Bioenergy wood chips is harvested from forests for energy production. Forest Programme to be based on this will promote the use of wood chips consists mainly of branches, crowns and stumps collected in for energy, taking into account the operating conditions of conjunction with regeneration fellings as well as chips from trees the forest industry, formulate the policy for the use of peat, felled in thinnings. In techno-economic terms, the potential produc- and determine the means for promoting decentralised The use of wood-based fuels and their share of total energy consumption has grown since 2001. In 2006, waste liquors and other by-products of the forest industry accounted for 52% of the consumption of wood-based fuels, 32% was in heating and power plants, and 16% in small residential houses. 20 Definitions Firewood Timber that has been cut, usually to specific lengths, and split, used mostly in homes and farms (logwood, small-dia- meter wood). Chips General term that can, depending on the context, refer to forest chips, sawmill chips, fuel chips, and chips used for pulp production. Energy chips Generic term for chips or hogfuel used as fuel. Forest chips Forest chips made from branches and crowns, small-diameter wood, stumps or stemwood. Chips from small- Chips made from stems that do not satisfy the dimensions for roundwood, or from delimbed stems. diameter trees Whole tree chips Chips made from the entire surface biomass of the tree (stem, branches, needles). Sawmill chips A by-product of the sawmill industry, with or without bark. Pellets Fuel made by compressing cutter shavings and/or sawdust into small pellets. production of power and heat from wood (Ministry of tion. The greatest benefits in terms of the sustainable use of natu- Employment and the Economy, Ministry of Agriculture and ral resources and the mitigation of climate change can be produced Forestry). by using wood to replace other materials. b) Experimental, demonstration and commercialisation projects for expanding and improving the efficiency of wood-based Most of the products of the wood products industry are used in con- energy production will be conducted, and methods for struction and interiors. Wood is an energy-efficient and cost-efficient growing wood for energy will be developed (Ministry of Emp- material. Apart from the increasing volume of housing construction, loyment and the Economy, Ministry of Agriculture and the growth potential of wood construction in Finland, East Europe Forestry, research institutions). and Russia derives from the environmental image of wood and the c) The harvesting and chipping of small-diameter wood for mitigation of climate change. Because a very large number of build- energy production will be supported, and heating entrepre- ings in Finland are made of wood, their maintenance increases the neurship will be promoted (Ministry of Agriculture and need for renovation. Forestry, Ministry of Employment and the Economy, Emplo- yment and Economic Development Centres, Forestry Centres, The development of advanced products made of sawn wood and Work Efficiency Institute). wood boards, such as components for the carpentry and furniture d) A national system for bioenergy advisory services will be industries, boards for interior design and decoration as well as organised and the provision and use of advisory services in structures for yards and other outdoor fixtures will increase the use energy and investment subsidies will be improved to of wood as part of normal habitation. Physically or chemically pre- promote the production and use of energy wood whilst pared wood composites will also increase the use of wood. Re- ensuring that the subsidies do not distort competition search as well as training are needed to develop new, cost-effec- (Ministry of Agriculture and Forestry, Ministry of Employment tive methods of manufacturing (see Section 5.2). and the Economy, Forestry Development Centre Tapio, Motiva, ProAgria, Forestry Centres). Necessary measures e) The practice of supporting the changeover of small residential buildings from electricity and oil-based heating systems to a) In line with the Government Resolution adopted on 17 wood-based and other heating systems using renewable fuels March 2005, public funds will be allocated for measures will be continued (Ministry of the Environment, The Housing implemented under the Industrial Policy Programme for the Finance and Development Centre of Finland). Wood Products Industry (2004–2010) and the Programme to Promote Wood Building (2004–2010) for promoting wood Target level for 2015 building and the use of wood (Ministry of Employment and the Economy, Ministry of Agriculture and Forestry, Ministry of Annual use of forest chips is 8–12 million m 3 (3.4 mill. m3 in the Environment). 2006). b) The necessary conditions for promoting the use of wood in construction will be ensured by reviewing and harmonising administrative regulation, construction codes in particular

2.2 Wood products (Ministry of the Environment). Carbon sequestration in wood products increases. c) Wood-based prefabricated housing and multi-storey housing solutions will be developed for urban areas, low-energy Wood construction and wood products manufacture represent sus- construction methods in particular (Ministry of the Environ- tainable uses of natural resources and long-term carbon sequestra- ment, wood building products industry) 21 d) Education and training in wood building and interior snow, fungi, insects) as it improves the conditions for the reproduc- decoration as well as renovation will be increased (National tion and survival of many insects and fungi. Board of Education, providers of vocations training). e) The life cycle of products and the advantages of wood for Climate warming affects the management of peatland forests sustainable development will be taken into consideration more than those on heaths. The growth of trees accelerates and when reviewing instructions for public procurement (Ministry the growing stock sequesters more carbon, and the profitability of of the Environment, Ministry of Employment and the ditch reconditioning improves. On the other hand, the shorter pe- Economy, Ministry of Agriculture and Forestry). riod of ground frost causes difficulties in harvesting. Ditch recon- f) Methods will be developed for assessing the effects of ditioning accelerates the decomposition of peat, which releases carbon sequestration in wood products and the life cycle CO2 into the atmosphere, although in peatlands where trees grow impacts of wood products (Ministry of Agriculture and well this is compensated by the increase in growth. Forestry, Finnish Forest Research Institute). g) The competitiveness of wood will be improved by participa- Climate change can also have positive impacts, such as increased ting in the harmonisation of the European single market and growth, faster regeneration and more reliable seed production. the standardisation of wood products (Ministry of Emplo- There is as yet not enough information about climate change and yment and the Economy, forest industry companies). its overall impacts on forest ecosystems. Target level for 2015 Necessary measures The annual consumption of sawn wood in Finland is at least 1,2 m3 a) Forecasts will be prepared concerning the risk of forest per capita (0.94 m3 in 2006). damage caused by climate change, the forest damage monitoring system will be improved and emergency plans drawn up in case of forest damage (Ministry of Agriculture

2.3 Climate change and forestry and Forestry, Ministry of the Interior, Finnish Forest Research Institute, Forestry Development Centre Tapio, Carbon sequestration is promoted in forest manage- Forestry Centres). ment and protection and preparations are made for a) Forest management recommendations and instructions will responding to the impacts of climate change. be reviewed on the basis of latest research results, with an emphasis on the vitality of forests, their impact as carbon sinks and measures to improve harvesting conditions Carbon dioxide is sequestered and stored by forests. Forests are an (Forestry Development Centre Tapio, Central Union of important carbon sink. The ability of forests to act as carbon sinks Agricultural Producers and Forest Owners, Metsähallitus, can be protected by ensuring appropriate and well timed manage- forest companies, Forestry Centres). ment and regeneration of forests, by the afforestation of treeless a) Former peat production areas will be converted into carbon areas and by preventing the destruction of forests as a result of sinks (Finnish Forest Research Institute, Vapo) land use. Sustainable forest management together with increasing a) The Climate Change Adaptation Research Programme use of wood-based products offer an excellent way of mitigating 2006–2010 and the Functioning of Forest Ecosystems and Use climate change. The significance of forests in the calculation of CO2 of Forest Resources in Changing Climate Research Programme emissions is covered in the Kyoto Protocol (Articles 3.3 and 3.4)3. (MIL) for 2007–2011 will both be implemented, and research as well as best practices will be developed on the basis of Climate change is expected to lead to rising trends in both tem- their results (Ministry of Agriculture and Forestry, Ministry of perature and precipitation and to increase the occurrence of ex- the Environment, Finnish Forest Research Institute, universi- treme weather events, such as increasing prevalence of heavy rain ties). and hot spells with shortening periods of snow and frost. Trees are a) Models of operation for trade in or leasing of carbon sinks genetically adapted to the climate in their area. The more abundant will be studied as well as other ways for increasing sequest- and genetically diverse the tree population, the better it is able to ration by forests (Ministry of Employment and the Economy, adapt to changing climate conditions. ­However, climate change Ministry of Agriculture and Forestry, Ministry of the Environ- also increases the risk of many kinds of forest damage (storms, ment, Central Union of Agricultural Producers and Forest Owners, research institutions). 3 Article 3.3 covers emissions and sinks due to afforestation and the destruction of forests, and Article 3.4 emissions and sinks resulting from forest management. Finland will apply both during the period 2008–2012 of the Kyoto Treaty. 22 Source: Statistics Finland Changes in growing stock volume is the greatest single factor in the greenhouse gas balance. When the drain is smaller than the increment, atmospheric carbon is sequestered by forests, which then function as a carbon sink (negative values in the graph). As greenhouse gases are released into the atmosphere in drained peatlands, the net effect is that forest soil becomes a source (positive values). When fellings are increased in line with the forest management programme, the capacity of stock to sequester carbon decreases temporarily, until regenerated young forests begin absorbing carbon. The net effect of using wood for energy production is slight, because forest litter would decompose in a short time in any case. The average gross CO2 emissions of Finland in 2002–2006 were 78.2 mill. CO2 equivalent tons and the carbon sink of forests 35.4 mill. CO2 equivalent tons. Target level for 2015 The annual carbon sink of growing stock and soil is at least 10–20 mill. ton CO2 eqv (the average figure for 2002–2006 was 35.4 mill. ton CO2 eqv). 23 3 Protecting the biological diversity and environmental benefits of forests

3.1 Biological diversity of forests improvement of the network of protected areas, the maintenance and further development of environmental management in com- mercial forests, as well as collaboration between forest and envi- The deterioration of forest biotopes and species ceas- ronmental organisations, counselling for forest owners and educa- es and a stable positive trend of biodiversity is estab- tion and communication for forest professionals. The knowledge lished. base on forest biodiversity and its conservation will also be devel- oped using research and monitoring. International treaties on the conservation of forest biodiversity re- Principles for the conservation of the genetic diversity of forest quire the signatories to implement national measures to attain the trees and the related action plan are inscribed in the National goals set in the treaties. The national goals in Finland are laid down Programme on Plant Genetic Resources for Agricul- by the Government Resolution concerning the National Strategy ture and Forestry. The key goal of the programme is to protect for the Conservation and Sustainable Use of Biodiversity in Finland the natural genetic variability of forests and to ensure the survival 2006–2016. of sufficient diversity in breeding populations and artificially gen- erated forests. The genetic resources of forest trees are in practice Forests are the primary habitat for more than a third of the endan- protected in situ in gene reserve forests and in genetic resource gered species in Finland. According to the latest assessment, car- archives, which preserve genetic material collected from naturally ried out in 2000, 37.5% of all endangered species have their pri- grown forests. mary habitat in forests, mostly herb-rich forests and old heathland forests. More extensive measures to protect forest biodiversity are Necessary measures needed mostly in the southern parts of the country. Particularly im- portant here is to take biodiversity into account in the manage- a) Measures proposed in the METSO programme will be ment of commercial forests. Special agri-environmental support implemented (Ministry of the Environment, Ministry of paid for the management of traditional biotopes enables the con- Agriculture and Forestry). servation and survival of grazed forests and wooded pastures. b) The implementation of old protection programmes will be completed in 2009 for the part of private forests (Ministry of The Forest Biodiversity Programme for Southern Finland 2008–2016 the Environment). (METSO) was drawn up to supplement the NFP in the conservation c) Biodiversity in commercial forests will be protected during of forest biodiversity. The key measures in the programme are the harvesting and management through the use of a broad range of tools in compliance with the National Strategy and Action Plan for the Conservation and Sustainable Use of Biodiversity in Finland 2006-2016, Measure 2 (Ministry of Agriculture and Forestry, Forestry Centres, Forest Manage- ment Associations, forest owners). d) The impacts on forest biodiversity, water and the nutrient balance of soil of stepping up energy wood harvesting and of harvesting methods will be studied, and legislation and instructions will be amended as necessary (Ministry of Agriculture and Forestry, Ministry of Employment and the Economy, Ministry of the Environment, Finnish Forest Research Institute, Forestry Development Centre Tapio, Central Union of Agricultural Producers and Forest Owners). e) Management methods that support both the conservation of biodiversity and the aims of forest owners regarding the use of their forests will be incorporated into the advisory services The Forest Biodiversity Programme for Southern Finland 2008-2016 for forest owners (Forest Management Associations, Forestry (METSO) covers the key measures that are used to conserve the Centres). biodiversity of forests. The preliminary phase of the programme was conducted in 2002–2007 (logo at left) and served as the foundation of f) The genetic diversity of forest trees will be protected in the programme being launched now. accordance with the National Programme on Plant Genetic 24 Resources for Agriculture and Forestry (Ministry of Agricultu- The EU Soil Framework Directive currently under preparation will re and Forestry, Finnish Forest Research Institute). probably require that provisions on soil protection be included in g) Finland will participate in the establishment and maintenan- national legislation. This is likely to necessitate more comprehen- ce of a network for the conservation of forest tree genetic sive data on soil and its micro-organisms. resources in Europe (Ministry of Agriculture and Forestry, Finnish Forest Research Institute). Necessary measures Target level for 2015 a) Instructions and recommendations for water protection in forest management will be kept up to date using latest The METSO programme has been carried through as set down in research and experiences (Finnish Forest Research Institute, the Government Resolution. Finnish Environment Institute, Forestry Development Centre Tapio, Metsähallitus, forest companies). b) Water protection in forest management will be implemented

3.2 Water and soil with cost-effective methods (Ministry of Agriculture and Forestry, actors in the forest sector). Forestry contributes to the attainment of a sound eco- c) Small bodies of water in forests, such as brooks and springs, logical status of waters. for which financing as nature management projects may be available in private forests will be reconditioned (Ministry of Agriculture and Forestry, forest owners, Forestry Centres). Forest management measures are carried out only a few times dur- d) A national network for monitoring environmental loads to ing the life cycle of a forest. Depending on the tree species compo- water caused by forestry will be established and maintained sition and geographic location, the cycle varies from 60 to 120 (Ministry of Agriculture and Forestry, Ministry of the years. In some cases, management results in increased loads of Environment, Finnish Environment Institute, Finnish Forest nutrients and suspended solids, especially in headwaters. Water Research Institute, Forestry Development Centre Tapio). protection measures can reduce such loads considerably. The goal e) Research on the environmental loads on water and soil of the EU Water Framework Directive, which in Finland is imple- caused by forestry will be conducted, in particular, from the mented under the Act on the Organisation of Water Management perspective of climate change (Ministry of Agriculture and (1299/2004), is to achieve a good status of waters in the Member Forestry, Ministry of the Environment, Finnish Environment States by the year 2015. National aims and measures are defined Institute, Finnish Forest Research Institute, Forestry Develop- in Regional Water Management Plans, which the Government is ment Centre Tapio). scheduled to ratify in 2009. f) A geographical information system (GIS) will be made available by 2010 which can be used to assess the risk of Increasing harvest volumes means increasing final fellings. Like- erosion caused by forest management and to illustrate the wise, increasing the use of wood for energy will be reflected in catchment properties that contribute to the emergence of the volumes of slash and stumps that is harvested. All these the risk (Ministry of Agriculture and Forestry, Finnish Forest measures lead to changes in forest soil and soil micro-organisms. Research Institute, Finnish Environment Institute, Forestry Mitigating the negative impacts of increased harvesting on for- Development Centre Tapio, Geological Survey of Finland, est biodiversity, the nutrient economy of soil and the production Land Survey of Finland). capacity of the forest, as well as the prevention of soil erosion will become ever more important aspects of the planning and Target level for 2015 implementation of forest management. The load to water caused by forestry and forest management de- Climate change is estimated to increase annual precipitation and creases (the quality of water protection in harvesting and soil prep- runoff, which in turn increase the risk of siltation and erosion, espe- aration in regeneration sites is excellent or good in 95% of the area cially in fine-grained soils in connection with soil preparation, stump by 2015; in 2007 the percentage of excellent and good sites was harvesting and ditch reconditioning. Climate change can also in- 96% in harvesting, and 82% in soil preparation) 4. crease nutrient leaching and thereby weaken the quality of water. 4 Monitoring the quality of nature management in commercial forests 2007, Tapio and Forestry Centres. 25 4 Promoting the use of forests as a source of recreation and culture

4.1 Ecotourism and the natural produce ment of natural produce requires cooperation with the food, cos- industry metics and pharmaceutical industries, among others. Entrepreneurship based on ecotourism is promoted Necessary measures and business based on the processing of natural pro- duce is developed. a) The VILMAT development programme of Metsähallitus will be updated, and sustainable tourism and recreational use of nature reserves and other State-owned areas will be In 2003 the Government adopted a resolution on an action pro- promoted based on this (Ministry of the Environment, Ministry gramme for the development of recreational use of nature and of Agriculture and Forestry, Metsähallitus). ecotourism (the so-called VILMAT programme). Among other b) The compilation of ecotourism statistics will be developed things, the programme aimed at developing entrepreneurship in further, as well as the information required by nature-based ecotourism and natural produce and increasing cooperation be- entrepreneurship (Ministry of Employment and the Economy, tween actors in this field. Statistics Finland, actors in this field). c) Entrepreneurship will be promoted by improving legislation Factors contributing to the increasing volume of domestic ecotour- and corporate financing and by publishing information about ism include urbanisation, ageing, increasing income levels and lei- funding opportunities (Ministry of Employment and the sure time as well as awareness of wellness and health issues. The Economy, Ministry of Agriculture and Forestry, Employment most important growth potential for ecotourism is in attracting and Economic Development Centres). more foreign tourists to Finland. This can be achieved only if tour- d) An action programme will be drawn up for the natural ism entrepreneurs actively develop and market services suitable for produce industry with a view of establishing strong regional different customer groups. The demand for hunting tourism is also centres of expertise (Ministry of Employment and the expected to grow. Ecotourism as a livelihood is currently most im- Economy, Ministry of Agriculture and Forestry, Employment portant in the regions of Lapland and Kainuu. and Economic Development Centres, actors in this field). e) The operating conditions of ecotourism and other tourism It is vital for the tourism industry to develop the practices and im- will be ensured as part of the Competence Cluster of Tourism age of sustainable tourism. The goal of the Tourism and Experience and Experience Management during the programme period Management competence cluster of the Centre of Expertise Pro- 2007–2013 (Ministry of Employment and the Economy, gramme is to increase the volume of business operations based on tourism enterprises, universities and polytechnics). both domestic and international demand for tourism in compliance f) Assessment of the value of the immaterial benefits of forests with the aims of sustainable development. The Centres of Expertise as well as their commercialisation will be developed, in Lapland, Southwest Finland and Savonlinna in particular special- (Ministry of Agriculture and Forestry, Ministry of Employment ise in developing services for ecotourism. and the Economy, Central Union of Agricultural Producers and Forest Owners, Forestry Development Centre Tapio, The strengths of the Finnish natural produce industry are tasty and research institutions, universities and polytechnics, actors in verifiably healthy natural produce, especially berries and edible this field). mushrooms. There is potential for using the health effects of natu- g) Research and development into the health effects of wood ral produce in the development of health-promoting services with- and other forest products will be stepped up (Ministry of in the wellness and tourism industry. Innovative further develop- Employment and the Economy, universities, research institutions, businesses). Definitions Ecotourism does not have a precise definition. It is usually described as tourism of fairly extensive scope in whichnature is the primary attraction. Natural produce refers to wild or semi-cultivated plants or mushrooms which can be used as such or with some processing. This also includes the by-products of trees and soil materials. Natural produce industries denotes activities relating to the above-mentioned produce (harvesting of raw material business operations, education and training, advisory services and research) 26 h) Opportunities for regional specialisation in terms of the Necessary measures multiple uses of forests will be studied in conjunction with Regional Forest Programmes (Ministry of Agriculture and a) Teaching concerning the right of public access will be Forestry, Forestry Centres, Finnish Forest Research Institute). enhanced in comprehensive schools (National Board of Education, education institutions). Target level for 2015 b) Management plans for State recreation areas will be revised in 2008–2010, nature trails and related service structures will The turnover in tourism and recreation services in rural areas is be maintained and constructed, and the availability of guide higher by 25% than in 2004 (2004 figure €510 mill.5). services will be ensured (Ministry of the Environment, Ministry of Agriculture and Forestry, Metsähallitus). c) Factors that will be taken into account in the planning of

4.2 Recreational use of forests and the right nature trails include their demand, the structure of land of public access ownership and the continuity of maintenance (Regional Councils, municipalities, Forestry Centres, National Land The traditional right of public access is retained and Survey, landowners). the needs of recreational use as well as of game man- d) The adoption of quality certification for nature trails will be agement are taken into consideration in the man- developed and the availability of certified trails will be impro- agement of forests. ved (Finnish Central Association for Recreational Sports and Outdoor Activities, Central Union of Agricultural Producers and Forest Owners). The recreational use of forests is based on the right of public ac- e) Municipal recreation forests will be developed, taking into cess, also known as Everyman’s Right. Commercial forests offer account not only recreational aspects, but also the cultural many opportunities for enjoying nature in the great outdoors and and social values of forests (Association of Finnish Local and for collecting wild berries and mushrooms. The right of public ac- Regional Authorities, municipalities). cess can be retained also in the future only if all who exercise the f) Measures will be taken to improve the habitats of wild game right know how to do it without causing damage or disturbance to in conjunction with fellings and other management work in the landowner. forests, and to adapt the measures to the landscape as well as possible (landowners). Challenges in the field of recreational use include the balance of g) Forest-owner oriented modes of operation will be adopted supply and demand for recreation opportunities and the integra- for the production of recreational values, such as trade in tion of the recreational and production use of forests. National recreational values and contractual practices between parks, too, serve the needs of recreation, subject to the protection landowners and buyers of recreational values (Ministry of of nature. The greatest need for recreational forest areas is in the Environment, Ministry of Agriculture and Forestry, southern Finland close to population centres. Forests near built- Central Union of Agricultural Producers and Forest Owners, up areas are also important for everyday exercise and recreation. Forestry Development Centre Tapio, private forest owners). Guided and well-tended hiking routes and services create the h) The second national inventory of the recreational use of necessary preconditions for the developing ecotourism industry. nature will be carried out (2008–2010) (Ministry of Agricultu- There is also a great need to improve contractual and compensa- re and Forestry, Ministry of the Environment, Ministry of Emp- tion practices in the context of the recreational use of forests. loyment and the Economy, Finnish Forest Research Institute, Statistics Finland, universities). Hunting as a hobby and a lifestyle choice is important for many i) The social impacts of hunting and fishing on State land will Finns. Relative to the population size, hunting is the most impor- be monitored and assessed, and recreational hunting and tant in eastern and northern Finland. fishing by children and young people will be supported (Ministry of Agriculture and Forestry, Metsähallitus, Hunters’ The forest landscape is an important element of Finnish cultural Central Organisation MKJ). heritage, of the attraction of rural areas and the business oppor- tunities for tourism. Finland has ratified the European Landscape Target level for 2015 Convention whose aims are implemented by each country based on its own preconditions. Contracts between landowners and buyers of recreational values are an established practice. 5 Rural Business Register http://www.mtt.fi/tutkimus/talous/matkailu1.html. 27 Forests are a source of culture in many ways. The Finlandia Hymn is today played in the Lahti Sibelius Hall built of wood. Photo (c): Voitto Niemelä.

4.3 Culture based on forests and wood isation’s Convention concerning Indigenous and Tribal Peoples was signed by Finland in 1989. In 1999, the EU Parliament decided that Culture associated with forests is be honoured, cher- Sámi culture and reindeer herding can be developed on the terms of ished and developed further. the Sámi themselves and by means of Community support. Forest have been important throughout the ages. This is attested to Necessary measures by prehistoric monuments as well as relics and structures dating back to forest management in the industrial age, such as former log a) A programme for the cultural heritage of forests will be floating channels and logging cabins. The preservation of old build- drawn up (Ministry of Agriculture and Forestry, Ministry of ings and structures also supports new wood building. Knowledge the Environment). and awareness of traditions promote the construction of pleasant b) An inventory of cultural heritage sites in State forests residential areas. Industrial plants of the forest industry and the managed by Metsähallitus will be conducted in 2008–2013, communities they have given rise to are part of the Finnish archi- and collection of data in private forests will be launched tectural heritage. (Ministry of Agriculture and Forestry, Ministry of Education, Metsähallitus, National Board of Antiquities, Forestry Religious customs and rites relating to forests and trees have Development Centre Tapio, Forestry Centres, Forest Manage- moulded Finnish culture and been inscribed on our collective mem- ment Associations). ory and nomenclature. Forests have played and continue to play an c) Operating conditions of the Finnish forest museum Lusto will important role in music, literature and the visual arts. There are be ensured (Ministry of Education, Ministry of Agriculture many traditions relating to forests also in the field of food and nat- and Forestry). ural medicine. A culturally sustainable forest sector takes the tra- d) Education and training in traditional wood building will be ditional uses of forests into account, strengthens them and creates enhanced (National Board of Education, National Board of new ways of using forests. For instance, wood products and natural Antiquities). produce, wood structures as well as ecotourism are all currently e) The rights of the Sámi to engage in their traditional liveli- creating new forms of forest culture. Forest-based culture repre- hoods will be ensured on the basis of their cultural autonomy sents a millennial continuum for business, leisure activities as well as set down in the Finnish Constitution (Ministry of Educati- as a source for personal pleasure and experiences. on, Ministry of Agriculture and Forestry, Ministry of the Environment, Sámi Parliament, Metsähallitus). The Sámi culture is intimately connected to natural livelihoods. Un- der the Finnish Constitution, the Sámi, being an indigenous people, Target level for 2015 have the right to maintain and develop their own language and cul- ture, and they have cultural autonomy with regard to their language The cultural heritage sites in State forests have been inventoried, and culture in the Sámi homeland. The International Labour Organ- and the inventory in private forests is under way. 28 5 Strengthening the skills, expertise and acceptability in the forest sector

5.1 Foresight work in the forest sector Future development in the forest sector and its oper- sector, and the applications of foresight results will be ating environment as well as change factors are an- supported (Ministry of Agriculture and Forestry, Ministry of ticipated. Employment and the Economy, Ministry of the Environment, Ministry of Education, universities and polytechnics, research Foresight studies in the forest sector have become increasingly institutions, development organisations, companies in the common in the 2000s. The Future Forum on Forests in Finland at forest sector). the University of Joensuu has functioned as part of the implemen- b) Foresight will be integrated into the preparation of the tation process of Finland’s National Forest Programme 2010. Fu- development programme for industrial service production ture studies on the forest sector have been conducted by many and of the National Climate Policy (Ministry of Employment Finnish research institutions, consultancies, universities, forest in- and the Economy, Ministry of Agriculture and Forestry). dustry corporations and interest groups in the sector. Foresight re- c) The contribution of the Forest Industry Future competence ports of other, closely related industries have also provided inputs cluster in the Centre of Expertise Programme will focus for the foresight activities of the forest sector. especially on technology forecasting (Ministry of Employment and the Economy). Foresight work in the forest cluster continues to be needed in the future. Anticipation prepares for changes in the operating envi- Target level for 2015 ronment and lays the foundation for future opportunities in for- est-based entrepreneurship and business operations. Anticipation Foresight work in the forest sector improves. is active strategic work done in cooperation with other industries and sectors.

5.2 Research and development in support of business and entrepreneurship Necessary measures a) Foresight work will be adopted as an active part of the Research and development improves the competitive- development of future operating conditions in the forest ness and renewal of the forest sector. Forestry and Bioenergy Wood industry Paper industry Source: Statistics Finland Forest and bioenergy would need about twice as many secondary graduates by 2015 than at present, the wood products industry about 50% more, and the paper industry about as many as graduates in the period 2002–2006 on average. 29 The continued maintenance of internationally high-class expertise and the Economy, Ministry of the Environment, Academy of in the forest sector and the success of businesses and corporations Finland, National Technology Agency of Finland). in this area call for applied research and development based on d) The sectoral research system will be revised and resources for sustained high-quality basic research as well as high competence. the natural produce industry and forest research will be The development of broad-based expertise relating to innovation ensured (Ministry of Agriculture and Forestry, Ministry of and supportive research are important factors for the renewal of Education, Ministry of Employment and the Economy, the forest sector. The challenge is to combine multidisciplinary ex- Ministry of the Environment). pertise in such a way as to create scientific breakthroughs and op- e) Customer needs will be given a more prominent place when portunities for new businesses. targeting research in the forest sector, and the efficient communication of results of the research to knowledge users Innovations often emerge in the meeting of different disciplines, will be ensured (Ministry of Agriculture and Forestry, Ministry which makes close interdisciplinary interaction a necessity. Develop- of Employment and the Economy, Ministry of Education, ment needs of the innovation system focus on the entire forest clus- Finnish Forest Research Institute, universities, Forestry ter, including chemical forest industry, wood products industry, en- Development Centre Tapio, actors in the forest sector). ergy industry, recreation and ecotourism as well as the natural pro- duce industry. More research is needed in the field of forest-based Target level for 2015 entrepreneurial and other economic activities, as well as in ques- tions concerning the social significance of forests. The purpose of the The public appropriation for research and development in the for- Forest Industry Future, Living Business and Energy Tech- est sector is €200 million per year (€135 mill. in 2006)6. nology competence clusters in the Centre of Expertise Programme is to exploit research results to promote especially the growth and

5.3 Professional training in the forest sector internationalisation of small and medium-sized enterprises. Clusters of strategic expertise are a new way of pulling scattered Competent and professional labour is trained for the research resources together into areas that are vital for companies forest cluster so as to meet the needs of the labour and society alike. Publicly funded research organisations can be market. developed so that they collaborate more actively with the business sector, ensuring that the needs for research will be communicated Current education volumes are not in line with the needs of the to knowledge producers and research results to the users of knowl- labour market. In particular, too few forestry workers, forest ma- edge. It is important to ensure proper organisation of the commu- chinery operators, timber haulage drivers as well as bioenergy and nication of research results into practice. wood professionals graduate to meet the needs of the sector. By contrast, too many people with degrees from higher education in- A European Forest-Based Technology Platform offers an opportu- stitutions come on the market, with the exception of wood prod- nity to carry out joint research projects with the forest sector and ucts industry. to influence the targeting of research programmes in the EU. Education in the forest sector is hampered by small units and the Necessary measures fragmentation of administration and the institutional network. Gathering education into units with robust resources and educa- a) The operating conditions of the forest cluster’s strategic tional ability would enable the provision of diverse, high quality and competence cluster will be ensured and the research strategy cost-effective education. Networking education institutions will also for the wood products industry will be supported (Ministry of contribute to this. The challenge to academic and vocational higher Employment and the Economy, Ministry of Agriculture and education institutions is to discover their own areas of strength. Forestry, National Technology Agency of Finland, Academy of Finland, forest industry companies) The attractiveness of all disciplines in the forest sector need to be b) The operating conditions of the competence clusters (Forest improved, and the percentage of dropouts reduced. Apprenticeship Industry Future, Living Business and Energy Technology) will training and on-the-job learning give students a correct idea of the be ensured for the programme period 2007–2013 (Ministry practices and needs of the workplace and promote the learning of of Employment and the Economy, forest industry companies, practical professional skills. They also give students a positive view SMEs, research institutions, universities and polytechnics). of forestry professions. c) Opportunities offered by EU funding will be put to use and efforts will be made to influence the content of EU research 6 The appropriation comprises the overall funding for the Finnish Forest Rese- programmes by e.g. participating in the preparation of the arch Institute, KCL and the Forest Department of the Work Efficiency Institute, the overall funding for forest sciences and wood processing technology in the Eighth Framework Programme to be initiated in 2014 higher education sector, except for the funding of the National Technology (Ministry of Agriculture and Forestry, Ministry of Employment Agency of Finland and the funding of its forest cluster R&D. 30 Children’s views about nature are formed at a young age. Above is Hanna Kilponen’s interpretation of “Wild Life in the Forest”, which won the second prize in a drawing competition organised in 2007 by the 4H organisation for school children in grades 1–3. The increasingly technological working environment, diversifying jobs and the reorganisation of tasks, all these call for more versa- numbers of competent teachers will be ensured (Ministry of tile expertise as well as special skills in supervision and manage- Education, National Board of Education). ment. In order to develop the amount, structure, content and meth- e) The university professorships necessary for the future of the ods of teaching, attention needs to be focused on gender equality forest sector will be ensured in fields such as wood building in the traditionally male-dominated sector. Forecasting the educa- and architecture, packaging and printing technology, and tion needs of the forest sector has to be nationally coordinated and biorefinery technology (universities, industry). accomplished in cooperation with the business sector. f) A system for monitoring the placement of forest education graduates in the labour market will be developed and Necessary measures maintained, and future developments in the need for labour will be anticipated (Ministry of Education, Ministry of a) An education council for the forest sector will be founded Employment and the Economy, National Board of Education, and charged with coordinating, monitoring and supervising interest groups, Metsäteho). education in this field (Ministry of Education). g) The preconditions and practices of on-the-job learning will be b) To enhance the attractiveness of the forest sector, the public improved to make them better suited for areas predominated image of the sector as a field providing modern and diverse by SMEs (National Board of Education, providers of vocatio- job opportunities will be strengthened (businesses in the nal education). sector, labour market organisations, Finnish Forest Association). c) The contents of education in the forest sector will be Target level for 2015 developed to reflect current and anticipated needs of the labour market, and an action programme will be drawn up The number of graduates on all levels of education in forest man- for revising student intake numbers to reflect the needs agement, bioenergy, wood and paper industry reflects the recruit- (Ministry of Education, National Board of Education, ment needs of the sector, about 3,000–3,500 persons per year 7 universities and polytechnics, providers of vocational (2,508 graduates in 2006). education, forest companies). d) Forest education will be gathered into units with robust 7 The best forest, wood and paper expertise in the world. Developing education expertise and resources, and the availability of sufficient for the forest sector in Finland. Working group memoranda and reports of the Ministry of Education 2008:1. 31

5.4 Social acceptability of the forest sector Attitudes and views about forests are established in childhood and youth. The basic knowledge about the natural environment in for- Operations of the forest sector are approved by the ests, forestry and forest industry as well as forest culture gained at society at large. that stage in life constitute the foundation of forest-related knowl- edge and skills of the adult. That foundation has a bearing on the Operations of the forest sector can only be developed in new direc- individual’s choice of profession, leisure activities as well as par- tions if the sector enjoys public acceptability. Public acceptability ticipation in public debate and decision making in forest-related must be achieved on ethical, social, political and economic levels. matters. A key dimension of public acceptability is social responsibility. In addition to economic profitability, companies and administration Actors in the forest sector have drawn up action plans for the ter- must bear the responsibility for the environment and for society as ritory of each Forestry Centre that aim to increase forest knowl- a whole. edge and skills among children and young people and to organise apprenticeship and on-the-job training positions for present as Acceptability can only be achieved by doing the right things using well as prospective students in the sector. The action plans are im- best possible professional expertise and by being open and truth- plemented in collaboration with forest actors as well as all inter- ful about actions. It is important to establish procedures that sup- ested parties. port public participation to allow all actors and individual citizens to express their views on forest management and to participate in Children’s views about nature are formed at a young age. Above is decision making. Developing communication within and of the for- Hanna Kilponen’s interpretation of “Wild Life in the Forest”, which est sector is a vital aspect of the sector’s everyday operation. won the second prize in a drawing competition organised in 2007 by the 4H organisation for school children in grades 1–3. Necessary measures Necessary measures a) In their own as well as joint communication, actors in the forest sector will take up the potential of forests for the a) The action plans for the territories of the Forestry Centres for improvement of the welfare of citizens, promoting sustainab- increasing forest-related knowledge and skills among le development and mitigating climate change (Forest children and young people and the number of apprenticeship Council, Ministry of Agriculture and Forestry, Ministry of the and on-the-job training positions will be implemented Environment, Ministry of Employment and the Economy, (Forestry Centres, 4H, actors in the forest and environmental Ministry of Education, Finnish Forest Association, Finnish sectors, Finnish Forest Foundation). Forest Foundation, actors in the forest sector). b) Teaching materials for teachers will be produced and b) New participatory planning procedures will be developed for updated in a coordinated way and the On Expedition in the forest sector to be used in the preparation of, for the Forest learning campaign will be continued (National example, Regional Forest Programmes and Natural Resource Board of Education, Finnish Forest Association, Forestry Plans (Ministry of Agriculture and Forestry, research institu- Development Centre Tapio). tions, Forestry Centres, Metsähallitus). c) Cooperation between forest sector companies and primary and secondary schools as well as education institutions in Target level for 2015 the forest sector will be increased to improve students’ knowledge about work in the forest sector (National Board More than 90% of Finnish citizens are of the opinion that Finnish of Education, education institutions, enterprises, Finnish welfare will be based on forests also in the future (82% in Forest Foundation). 2007)8. Target level for 2015

5.5 Forest-related knowledge and skills The number of children and young people participating in forest- among children and young people related events per year is 300,000 (195,000 in 2006)9. Children and young people develop a natural rela- tionship to forests, sustainable forest management and forest products. 9 Children and young people participating in events organised under the Acti- 8 on Plan for Forest Expertise and at the forest camps of the Guides and Scouts Forest and Wood, an opinion survey commissioned by the Finnish Forest Association from Taloustutkimus Oy, 2007. of Finland. 32 6 Promoting sustainable forest management in international forest policy

6.1 International forest policy c) Expertise throughout the entire Finnish forest sector will be mobilised for the preparation and monitoring of international International forest policy promotes sustainable forest forest affairs (Ministry of Agriculture and Forestry, Ministry management and the operating for Foreign Affairs, Ministry of the Environment, Ministry of conditions of the forest sector. Employment and the Economy, interest groups). d) The use of sustainably and legally produced wood products The range of forest-related aims and objectives has grown along will be promoted, and national and international means for with international forest processes. However, some of the goals preventing illegal logging will be developed in accordance defined in the processes have been mutually contradictory and with the ENA FLEG Ministerial Declaration and the EU FLEGT have not always been in compliance with national guidelines for Process, and a national action programme for these will be sustainable forest management. prepared (Ministry of Agriculture and Forestry, Ministry of the Environment, Ministry for Foreign Affairs, Ministry of Finland has promoted the sustainable management of its forests Employment and the Economy, universities, research in international forest policy by supporting the attainment of the institutions, interest groups). Millennium Development Goals of the UN, the use of wood as a replacement of non-renewable natural resources and as a source Target level for 2015 of energy, the protection of forests, and new innovative products and services based on sustainable forest management. Finland has Key ministries have sufficient personnel to manage international promoted the prevention of illegal logging in several international forest affairs. processes.

6.2 Forest affairs in the European Union The United Nations Forum on Forests (UNFF) adopted in 2007 a non-legally binding instrument on forests that aims to achieve four Preparation and decision making in affairs affecting global forest-related goals: prevent the loss of forest cover, en- the forest sector are coordinated in the EU and the hance forest-based benefits, increase the area of protected forests national characteristics of the sector are taken into ac- and other sustainably managed forests, and reverse the decline in count. development aid for sustainable forest management. Finland has systematically advocated the making of an international binding Many strategies and documents in the European Union refer to forest treaty among governments to promote these goals. forests, and matters involving the forest sector come under the mandate of several Directorates. Although common forest policy is Necessary measures not included in the Treaty on the European Union, individual regu- lations affecting forests are issued on the basis of trade, environ- a) The work of the United Nations Forum on Forests and the mental and agricultural policies, for example. Such regulations may development of the forest process towards an international have been contradictory in some respects, because each of them treaty on forests will be promoted (Ministry of Agriculture was issued based on the particular perspective of the Directorate- and Forestry, Ministry for Foreign Affairs, Ministry of the General in question. The EU Forest Action Plan 2007–11 neverthe- Environment, Ministry of Employment and the Economy). less seeks to bring matters pertaining to sustainable forest man- b) Finland will participate in the preparation and implementati- agement and the preservation of the vitality of rural areas into a on of forest-related international agreements (e.g. UNFCCC, single document. CBD, UNCCD and ITTA) (Ministry of Agriculture and Forestry, Ministry of the Environment, Ministry for Foreign Affairs, Finland has participated actively and on a broad front in the imple- Ministry of Employment and the Economy). mentation of the EU Forestry Strategy (1998) and the EU Forest Ac- Abbreviations of international agreements and organisations CBD Convention on Biological Diversity ENA FLEG European and North-East Asian Forest Law and Governance Process EU FLEGT EU Forest Law, Governance and Trade licensing scheme UNCCD United Nations Convention to Combat Desertification in Countries Experiencing Serious Drought and/or Desertification, Particularly in Africa UNFCCC United Nations Framework Convention on Climate Change UNFF United Nations Forum on Forests 33 tion Plan (2006) as well as in the Ministerial Conferences on the kan region. In addition to the above, developing countries are sup- Protection of Forests in Europe and in Nordic cooperation in the for- ported through multilateral forest cooperation. est sector. These will be key forms of action also in the future. The basic framework for development cooperation in the forest Necessary measures sector is provided by the Development Policy Programme adopted by the Government in 2007. Regional targeting of development a) Finland will participate actively in the implementation of the cooperation is steered by the needs and demands arising from the EU Forest Action Plan, placing special weight on better target country on the national or regional level. In the future more coordination in forest matters (Ministry of Agriculture and attention will be paid to practical grass-roots application of the Forestry, Ministry of the Environment, Ministry of Emplo- processes of international forest policy on the national level. The yment and the Economy, interest groups). key areas in forest cooperation are national forest programmes of b) Finland will act towards ensuring that decision making the target countries, strengthening of the significance of the forest affecting forests throughout the EU will promote sustainable sector in the mitigation of and adaptation to climate change, im- forest management (Ministry of Agriculture and Forestry, portance of forests in rural, land use and agricultural policies, and Ministry of the Environment, Ministry of Employment and the support for the processes of international forest policy. Develop- Economy). ment cooperation in the forest sector will seek to establish strate- c) Finland will monitor and anticipate the effects on forest gic partnerships with research institutions and institutions that fi- management of EU decisions other than those directly nance development cooperation. concerning forest policy, such as energy, climate and agricultural policy decisions (Ministry of Agriculture and Finland has also reciprocal forest cooperation with Russia, China, Forestry, Ministry for Foreign Affairs, Ministry of Employment Turkey, Indonesia, Mexico and Brazil. The content of such coop- and the Economy). eration has developed in response to mutual interests and special d) Finland will prepare, in cooperation with relevant interest characteristics of the forest sector in these countries. The principal groups, national initiatives and positions on issues addressed themes in this cooperation are the promotion of sustainable for- in the EU (Ministry of Agriculture and Forestry, Ministry for est management, education in forest and environmental sectors, Foreign Affairs, Ministry of the Environment, Ministry of forest research, inventories of forest resources, forest planning, Employment and the Economy). forest certification, information systems in forest management, e) Finland will underline the importance of research and and seedling production. development for the improvement of the competitiveness of the forest sector, support actions to promote the use of Necessary measures wood, and work proactively to improve the availability and comparability of information relating to forests in Europe a) National forest programmes will be supported (Ministry for (Ministry of Agriculture and Forestry, Ministry of the Foreign Affairs, Ministry of Agriculture and Forestry). Environment, Ministry for Foreign Affairs, Ministry of a) Actions to strengthen the role of the forest sector in climate Employment and the Economy). change mitigation and adaptation will be supported (Ministry for Foreign Affairs, Ministry of Agriculture and Target level for 2015 Forestry, Ministry of the Environment, Ministry of Emplo- yment and the Economy, universities and polytechnics, National activities affecting forests in the European Union are well research institutions). coordinated and in line with the principles of sustainable forest a) Finland will ensure that due account is given to forests in management. rural, land use and agricultural policies (Ministry for Foreign Affairs, Ministry of Agriculture and Forestry, Ministry of the Environment).

6.3 Development cooperation and other a) Development cooperation in the forest sector will be bilateral cooperation centralised and strategic partnerships will be established Sustainable forest management is emphasised in de- with research and development funding agencies (Ministry velopment cooperation with the aim to mitigate pov- for Foreign Affairs, universities and polytechnics, research erty and improve the state of the environment. institutions). a) Bilateral cooperation in forest affairs will be continued and Sustainable forest management can contribute to the mitigation developed further (Ministry of Agriculture and Forestry, of poverty and the prevention of environmental threats in develop- Ministry for Foreign Affairs, Ministry of the Environment, ing countries. Finland has cooperation in forest matters with six universities and polytechnics, research institutions). long-term partner countries (Kenya, Tanzania, Zambia, Mozam- bique, Vietnam and Nicaragua). Finland also has bilateral coopera- Target level for 2015 tion in forest affairs with Laos, Peru and countries in the West Bal- Sustainable forest management has increased in the target coun- tries. 34 IMPLEMENTATION, MONITORING AND FURTHER DEVELOPMENT OF THE PROGRAMME Implementation between organisations responsible for preparing other regional plans, such as the Regional Councils, Environment Centres, Em- A Government Resolution regarding Finland’s National Forest Pro- ployment and Economic Development Centres and organisations gramme 2015 (NFP 2015) is adopted to steer the actions by minis- responsible for land use planning. The Regional Forest Pro- tries and their administrative sectors. The implementation of the grammes are developed in a continuous participatory process. programme is coordinated by the Ministry of Agriculture and For- estry, supported by the National Forest Council and its secretariat. Monitoring and development After the Government Resolution has been adopted, the Ministry Monitoring reports are produced on the implementation of both of Agriculture and Forestry will prepare a revised action plan that the National and the Regional Forest Programmes. The reports specifies the responsibilities for the implementation of the pro- outline developments in the forest sector, the progress of meas- gramme, actors, schedule and Government funding. The Forest ures laid down in the programmes and their effects on the forest Council will modify the action plan on a yearly basis. sector. They also present proposals for new measures. The NFP will be implemented in 2008–2015, taking into account External independent interim reports and thematic evaluations any changes that may be necessary due to monitoring, mod-term on the implementation of the NFP are also made when necessary. evaluations or Government policies. The Regional Forest Pro- Issues examined in the evaluations include the need to alter the grammes for 2006–2010 will be revised to bring them in line with priorities of the programme because of changes in the operating the National Forest Programme by autumn 2008. environment, the effectivity and sufficiency of the measures in relation to the programme goals, and the development needs for Funding for the NFP will be discussed and decided upon annu- implementation. The results of evaluations of the METSO pro- ally within the national framework budget process. The pro- gramme 2008–2016 will be taken into consideration in the im- gramme will be implemented within the frameworks of the na- plementation of the NFP 2015. tional economy and appropriations in the State budget. The implementation of the programme will be revised on the ba- Finland’s National Forest Programme 2015 consists of measures sis of the results of monitoring, evaluation and development that are the responsibility of the public sector, the private sector or projects on the programme, using also experiences gained from both together. The public sector is responsible for creating proper the implementation of forest programmes of other countries as operating conditions for the forest sector. The means for this in- well as results of the Future Forum on Forests and the Forest clude legislation, operative and financial planning and budgeting, Academy for Decision-Makers. Attention will be paid particularly performance-based management, consultation and communica- on the participation, communication and efficiency aspects of tion. The programme is implemented in coordination with the pro- programme work. Development of the programme is the respon- grammes of the administrative sectors and strategies covering sev- sibility of the Ministry of Agriculture and Forestry and the Na- eral administrative sectors. Development measures aiming to im- tional Forest Council. prove the productivity of the national economy within national and local government and sectoral research will all be taken into con- Communication sideration in the implementation of the programme. National and international communication within the NFP aims at Finland’s National Forest Programme 2015 can only be implemented publicising the aims and measures of the programme, their imple- successfully if cooperation between the public and the private sec- mentation and the impacts of the programme on society and for- tor functions properly, because the future development of the forest estry. Communication will be target group oriented, open and par- sector is influenced by the actions of the forest industry, SMEs, for- ticipatory. Communication will be coordinated with the communi- est owners, interest groups as well as other actors in the sector. All cation of cooperation partners and Regional Forest Programmes. these actors can participate in the steering and monitoring of the programme in the National Forest Council on the national level, and Open communication will promote the public acceptability of the in Regional Forest Councils on the regional level. forest sector and the programme, and is a vital part of the NFP 2015. A communication plan will be drawn up annually. Regional special features are taken into account in Regional For- est Programmes. For this it is vital that proper cooperation exists 35 PROGRAMME FUNDING The estimated need for funding of the NFP 2015 is compiled in the Ministry of Education’s funding needs arise from develop- table presented below. The table covers the financing requirements ment measures to be taken on the basis of the report on the de- of the ministries as presented in the annual Government Budget. velopment of education in the forest sector, prepared by the Min- Measures promoting the attainment of the aims of the programme istry. are also financed from funds allocated to the Centre of Expertise Programme, which comes under the administrative sector of the The total amount of R&D funding for the forest sector will depend Ministry of Employment and the Economy, as well as from regional on the volume of financing applications that meet the award cri- development funds of the Regional Councils and through labour teria. The financing frameworks of the administrative sectors of market training. Funding for the Ministry of Social Affairs and Health the Ministry of Employment and the Economy, the Ministry of will be used in projects aiming to improve occupational safety and Education, the Ministry of Education, the Ministry of Agriculture working conditions. In addition to the Government funds shown in and Forestry, and the Ministry of the Environment should enable the table, implementation of the NFP also calls for sizeable funding a total expenditure of €200 million for R&D by the year 2015. from the private sector. Ministry of Transport and Communications needs fund- Ministry of Agriculture and Forestry’s funding needs arise ing for improving the standard of the road and rail networks and from the need to increase seedling and thinning stand manage- inland and maritime waterways and for the improvement and ment, the management of peatland forests and the improvement maintenance of low-volume road network to meet the transporta- of forest roads as well as harvesting and chipping of wood for en- tion needs of the forest sector. State subsidies for private roads ergy. The needs of the Forestry Centres for Government subsidies need to be increased considerably to ensure that the condition of increase especially due to planning that promotes sustainable for- private roads is improved. Measures to improve the transportation est management and biodiversity, the provision of advisory serv- network serve the entire economy and society at large. ices for forest owners, and counselling in wood energy matters. The development of the forest resource information system and elec- In addition to the funding aspects outlined above, the aims of the tronic services also calls for additional funding. The funding need- NFP 2015 can also be promoted using forest taxation. Extend- ed to protect forest biodiversity is in line with the proposal of the ing tax reductions for forest management would encourage forest METSO working group. EU funding for the Rural Development Pro- owners to increase the size of their holdings and to take an active gramme for Mainland Finland will be used for development sup- attitude towards forest management. Tax exemption for first thin- port and business aid projects aiming to promote forest manage- nings, raising the exemption threshold of income from work per- ment, further processing of wood and the use of energy wood. The formed on the holding, and tax reduction for voluntary forest man- service structures required by the growing ecotourism industry will agement works, all these would encourage forest owners to in- be improved on State lands in compliance with the VILMAT Devel- crease logging and to manage their forests actively. Tax instru- opment Programme. The supervision of hunting and fishing activi- ments require detailed preparation. ties by Metsähallitus will be strengthened. The implementation of Finland’s National Forest Programme 2015 Ministry of the Environment’s funding needs arise from the calls for a significant financing contribution from the pri- implementation of the METSO programme and the development vate sector. For example, expenses incurred by forest owners for of the recreational and ecotourism services of Metsähallitus. management and improvement works is more than four times as much as public funding. Private funding for research, and for de- Ministry of Employment and the Economy needs funding velopment in particular, generally accounts for at least one half of for start-up, development and investment subsidies that promote total funding. However, there are also many private-sector R&D entrepreneurship, in particular, in the field of further refinement projects promoting the aims of the NFP that are conducted without and energy use of wood, as well as for Finnvera subsidies and for any public funding. In recent years, the forest industry has used ap- R&D projects in the forest cluster funded by Tekes, the Finnish proximately €150 million per year for its own R&D. Funding Agency for Technology and Innovation. 36 Ministry Object of funding Item no € mill, in 2008 Need, € mill/yr Ministry of Agriculture and Act on the Financing of Sustainable Forestry 30.60.44 Forestry - management and basic improve­ ment of forests 57 75 - use of wood for energy 6.5 10 State subsidies for Forestry Centres 30.60.42 45 55 Funding for the Finnish Forest Research Institute 30.60.01 41 401) Conservation of biodiversity 30.60.45 7 21 Recreation services produced by Metsähallitus 30.63.50 6 7 Development of rural areas2) 30.10.61 30.10.62 16 16 Ministry of the Environment Conservation of biodiversity 35.01.01 3) 35.10.214) 39 66 35.10.522) 35.10.63 Recreational use of nature and ensuring the operating conditions for ecotourism2) 35.10.52 10 13 Ministry of Employment and Business subsidies2) 32.30.40 1.5 26) the Economy 32.30.42 795) 6) 32.30.45 32.70.64 32.70.65 20 256) Research and corporate funding from National Technology Agency 2) 32.20.27 6) 32.20.40 47 32.20.83 Labour policy training7) 32.80.51 6 Energy subsidies 2) 32.60.40 13 8) Ministry of Education Forest education2) 29.20.30 9) 29.20.31 110 29.40.30 29.50.01 Ministry of Transport and Maintenance and services of the road and rail networks Communications - basic road maintenance 31.24.21 6110) 20 - basic railway maintenance 31.40.21 5111) 35 - maintenance of waterways 31.30.21 2 State subsidies for private roads 31.25.50 18 25 1) 7) As a result of the National Productivity Programme, funding for the ope- Necessary increase/year for the forest sector; in future planning the need rative costs of the Finnish Forest Research Institute will decrease, but the to divide the amount between apprenticeship training (Ministry of Edu- amount of external funding is estimated to increase. In the financial sta- cation) and labour policy training ( Ministry of Employment and the tement for 2006, the operating expenses appropriation for the Finnish Economy) must be examined. Forest Research Institute was €38.9 mill. and total funding €52.4 mill. 8) Determined in the context of the energy and climate strategy to be 2) Sub-item; the table shows only the share used for the development of completed in spring 2008. the forest sector. 9) Determined on the basis of the results of a working group on the edu- 3) METSO, research cation development needs for the forest, wood and paper industries, 4) METSO, cooperation network, organisation, inventories appointed by the Ministry of Education. 10) 5) Finnvera loans, securities and guarantees to the forest industry. Includes €20 million included in the State budget fro 2008 and €41 6) million under decision of 13 March 2008 to safeguard timber tran- The amount of subsidy depends on the number of applications from re- sports. search institutions and companies that meet the criteria. Current frame- 11) works are not an obstacle to raise the subsidies. Includes €42 million for the basic improvement of the railway between Savonlinna and Huutokoski and €9 million under decision of 13 March 2008 for starting the basic improvement of the railway between Poro- kylä and Vuokatti. 37 IMPACTS OF THE PROGRAMME In parallel with the preparation of Finland’s National Forest Pro- the turnover of forest owners and harvesting and transport en- gramme 2015, an evaluation of its impacts was also made. The ex trepreneurs. ante evaluation conducted by Indufor Oy assessed not only the con- tent and quality of the programme, but also its impacts on the en- The value increment of production in the entire forest sector is ex- vironment, forest biodiversity, regional development and gender pected to grow by €500–700 million to about €8.6–8.8 billion. equality. The Finnish Forest Research Institute prepared calculations on the social as well as economic and environmental impacts of ac- Owing to stumpage earnings and investments in forest manage- tions in forestry and forest industry on the basis of five different fu- ment, annual State revenues from forestry would grow by about ture scenarios. €160–200 million compared to 2006. The additional revenues from increased harvesting and transportation of roundwood and The evaluation of uncertainty factors was based on the Forest Re- energy wood would be about €60–80 million per year. search Institutes’ alternative calculations mentioned above and on a risk analysis in the Bank of Finland’s economic forecast for The value added of Finnish tourism industry in 2005 came to a 2007–2008 concerning the effects of Russian export duties for total of €3.3 billion, with ecotourism estimated to account for roundwood. In addition to these, reports of the Forest Research In- approximately one fourth of this, or €825 million. Increasing ur- stitute for the preparation of the Future Review for the Forest Sec- banisation, higher income levels and increasing leisure time are tor and of the National Energy and Climate Strategy were also expected to lead to an increase in the recreational use of forests used, as well as reports of the Future Forum on Forests. and in ecotourism, which will entail increasing demand for con- structed recreation environments (accommodation, routes, rest- ing places, waste management), guide services and motorised Economic impacts recreational experiences. Together with increasing volumes of Finland’s National Forest Programme 2015 represents the Govern- other tourism these would push the additional value from ecot- ment’s contribution to the creation of the preconditions for the op- ourism over one billion euro. erations of the forest industry and their development. Even if signif- icant investment were made now in the development of new prod- Social impacts ucts, launching mass production would in practice not be possible within this decade. Production in the paper and pulp industry in the Improving productivity is absolutely vital to ensure the competitive- near future will therefore be based largely on existing products. ness of forestry and the forest industry. It would also relieve the la- bour shortage. Improved productivity and the rationalisation of pro- The first large-scale forest biorefineries and the manufacture of duction methods­z will lead to a reduction of approximately 15,000 biodiesel will probably not be launched until towards the end of jobs in the forest industry by the year 2015. Without the measures the programme period. The use of wood in thermoelectric power envisioned in the National Forest Programme for the creation of new plants is expected to increase. The demand for raw material will products, this figure would be higher by about one thousand jobs. focus on small-diameter wood, crowns and branches as well as Improving the operating conditions of the forest industry will im- stumps, the use of which is estimated to grow 3–4-fold compared prove the continued survival of industry across the country. to current levels. There are already good prospects for extensive commercialisation of new and highly processed products in the Increased productivity in forestry will be offset for the most part wood products industry. by greater felling volumes and the increasing predominance of pulpwood harvesting and logging on peatlands, as well as by in- In order to safeguard the raw material supply of the forest indus- creasing volumes of forestry work and energy wood harvesting, try, the NFP 2015 creates preconditions for increasing logging in keeping the number of people employed at almost the current Finland by at least 10 million cubic metres to 65 million cubic me- level, or 23,000. The net impact of the NFP 2015 in terms of em- tres per year. The structure of domestic production in the forest ployment in forestry will therefore be about 1,500–2,000 jobs. industry will change as the traditional forms of production are expected to decrease. It is estimated that, together with new en- Forestry and the forest industry (furniture industry included) to- ergy and biorefinery products, the value of production may in- gether are expected to employ approximately 83,000 people in crease as much as 20%, to about €23 million per year. 2015. Of this figure, energy production from wood would account for approximately 2,000–3,000 jobs. In areas outside the forest If the harvest volume were to increase by 10–15 million m3 from 2006, the annual gross stumpage earnings of private forest own- 10 The price elasticity of roundwood supply is assumed to be one. Due to ers would rise to €2.1–2.3 billion10. Increasing use of forest chips economic fluctuation, the stumpage price level in 2007 was unusually high. Consequently, the accumulated stumpage earnings in the calculation is of the would entail an increase of approximately €120–220 million in same magnitude, even though harvest volumes will be higher. 38 sector, the employment effect of the NFP would be about tion and ditch reconditioning can nevertheless be significant lo- 1,000–1,500 jobs. cally and regionally, especially in headwaters and small water bod- ies. The greatest risk in terms of environmental load is caused by The National Forest Programme will improve the vitality of rural harvesting, ditch reconditioning and fertilisation in peatlands, lead- areas by creating jobs and business opportunities, which means ing to higher loads of phosphorus, nitrogen and suspended solids. that makes a positive contribution on regional development as To mitigate such negative effects, the National Forest Programme well. Job opportunities from increasing harvesting and transpor- includes several measures and development projects for reducing tation, silvicultural and improvement works and energy produc- the environmental load on waters caused by forestry. tion would mostly be created in forested areas with scattered settlement. Job opportunities in the improvement and mainte- As yet there is not enough information on the impact on soil nutri- nance of low-volume road and rail network would similarly ben- ent balance caused by the rapid increase in the use of wood for efit sparsely populated areas. energy. The greatest risks come from whole tree harvesting in thin- nings, when significant amounts of nitrogen are removed from the Growing harvest volumes together with structural changes in for- nutrient cycle with the branches and needles. This is also the case est ownership would increase the need of action, not only by tra- in the removal of stumps at regeneration sites. The increasing use ditional forest organisations, but also other businesses specialising of wood for energy can also reduce the amount of decaying wood in forestry and nature management works. The economic and em- in forests, which is important for the maintenance of biological di- ployment impacts of ecotourism vary regionally, and are already versity. The NFP includes measures designed to protect the soil, as considerable in the regions of Lapland, Kuusamo and Kainuu. In- well as measures to increase research on the effects on nutrient creasing use is also expected for major recreation areas near balance of whole wood and slash removal. growth centres in southern Finland. Increasing demand for ecot- ourism and related services will increase employment and business The carbon sink effect of forests and soil will decrease from current opportunities in the tourism sector. levels during the programme period. Even at maximum harvest vol- umes, however, the drain would be smaller than the increment, Recreational use of forests improves the mental and physical wel- which means that forests would still function as carbon sinks. Great- fare of the population. Surveys indicate that the value of recrea- er slash harvests do not have a significant effect on carbon sinks. tional use of forests for Finns is in the order of one billion euro at According to calculations by the Finnish Forest Research Institute, least. As leisure time increases and the population ages, the rec- the reduction in carbon sink capacity will remain temporary. The ca- reation value of forests will grow accordingly. A significant aspect pacity will begin to grow again in the 2020s, provided that forest of this value is based on the right of public access. management measures are implemented fully and on schedule. Measures envisaged in the National Forest Programme allow the The implementation of the National Forest Programme would be a harmonisation of increased demands for the economic and recrea- significant step towards supporting the EU aim of increasing the tional use and protection of forests as well as their cultural special use of renewable energy sources. Additional use of forest chips features, including the Sámi culture with its distinctive livelihoods. alone (appr. 5–9 mill. m3 annually) would bring about an increase The framework for the harmonisation of these needs on the region- of 2–3% in the share of renewable energy sources in primary en- al and local level is created in the Regional Forest Programmes, in ergy production (25% in 2006). If the entire increment in the vol- the Natural Resource Plans of Metsähallitus and in regional and ume of forest chip utilisation were to be used to replace fossil fuels, master land use plans. Measures aiming at the protection of forests a reduction of up to 6–7 million tons in carbon dioxide emissions and ensuring their diversity will be implemented in cooperation with could be attained annually. land owners using voluntary measures for the most part. The nega- tive effects to forest owners of the use of forests for tourism will be The NFP includes many measures without which Finland would not compensated with solutions relying on trade in recreational values. be able to meet the requirements of energy and climate policy and of new environmental legislation, such as the EU Water Framework The age, gender and socio-economic structure of forest ownership Directive and Soil Framework Directive currently under preparation. is heterogeneous, which is reflected in the diversity of aims the owners set for their forests. The customer-oriented approach adopt- Increasing use of forests in itself increases the risk of reducing ed in the NFP demands that this be taken into account in all serv- forest biodiversity, as forests are the principal habitat for more ices and products provided for forest owners. than a third of all endangered species in Finland. In the prelimi- nary national report required by the EU Habitats Directive, the conservation status of most forest biotopes was classified as “un- Environmental impacts favourable-inadequate”, and in the case of esker and flood for- As a result of the implementation of the measures proposed in the ests, even “unfavourable-bad-decreasing”. Implementation of National Forest Programme, the overall nitrogen and phosphorus the METSO programme 2008–2016, which is an integral part of nutrient loads from forestry would not increase from current levels. the NFP, will improve the situation to some extent. Negative ef- The additional load caused by greater harvest volumes, regenera- fects on forest biodiversity can be offset in part by increasing 39 biodiversity training for forest professionals and advisory serv- The development and commercialisation of new forest-based prod- ices for forest owners. ucts takes several years and entails financial risks. It is far from cer- tain if the products being developed are just the right ones for the Increasing regeneration fellings has some negative impacts on the market to provide a sound foundation for profitable business. Pub- forest landscape. Such impacts can be reduced by preparing land- lic financial support for R&D and investment subsidies can allow scape plans for fellings. The effects of thinnings and the increasing actors to undertake high-risk development work and investments. use of wood for energy on the recreational use of forests is per- ceived as positive, with the exception of stump harvesting. The targets for increasing the use of renewable energy, set for Fin- land by the EU, have a very close bearing on production in the for- est industry. A decrease in the overall production capacity of the Uncertainty factors forest industry would have an immediate effect, obstructing the Finland’s National Forest Programme 2015 has its sights set on attainment of the objective. the future at a time when the operating environment of the forest sector will be undergoing the most intense period of change in Many of the goals in the NFP depend on the sufficient availability recent history. As the greatest forces of change are global and do of competent labour. The successful implementation of education not originate in Finland, the situation includes many factors of un- and labour policies in the forest sector are vital in this context. The certainty for the successful implementation of the programme. risk of insufficient labour is particularly great in areas of negative net migration, where several sectors of the economy are competing The demand and price of forest industry products are determined in for labour. A considerable proportion of the harvest potential in international markets, which in turn is reflected in the demand of Finnish forests also lies in these areas. wood in Finland. Achieving the target for harvesting set in the NFP depends very much on how actors in the private sector, forest in- Successful integration of the multiple uses of forests on the re- dustry companies and forest owners in particular, assess the future gional and local levels is crucial for the public acceptability for development and current market situation, and how they will react forest management and the extent of its impacts on welfare. to the conclusions they draw from that. There are uncertainties in There are uncertainties in how to establish successful interaction the future development of both the demand and supply of wood. between the various parties. Using calculations made by the Bank of Finland, we can evaluate the Measures to protect forest biodiversity are for the most part based impacts of a possible downsizing of the operations of the forest in- on the METSO programme, in which the key principle is voluntary dustry, or in the event domestic fellings could not be increased in line participation by forest owners and the use of market mechanisms. with the targets set in the NFP. If roundwood imports from Russia Success depends largely on the sufficiency of public funding and were to decrease by 15 million cubic metres, and Finland would only decisions made by individual forest owners. It is impossible to manage to replace one half of it (7.5 mill. m3), the supply of wood know in advance whether the most valuable sites in terms of na- would be reduced by about 10%, leading roughly to a 10% cut in ture protection will be put up for conservation, nor where the of- the production volume of forest industry in Finland. The cascade ef- fered sites will be located geographically. Uncertainties can be re- fects would be felt in other branches of the economy, such as chem- duced by the application of the broad range of tools and methods ical industry, energy production and traffic. However, since round- presented in the METSO programme. wood imports would be mostly replaced with domestic wood, this would have the effect of increasing forestry work, and the multiplier The specific processes of the carbon cycle in forest ecosystems effects of the decrease in industrial production on the gross domes- and their interrelations are not known well enough. The same ap- tic product would be offset almost completely. GDP would come plies to the effects of climate change in forests. The assessment down an estimated 0.5%, although the loss in the number of jobs of CO2 emissions from mineral soils and peatlands in particular would be about 8,000. Most of the impacts would be evident already involves major uncertainties. According to the latest research re- in 2009 and 2010. Closures of production plants would have serious sults, CO2 emissions from the decomposition of organic matter in economic consequences regionally. the soil have due to recent warm autumns been nearly as large as the increased carbon sinks of warm springs, suggesting that Although there is great unused harvest potential in Finnish forests, climate change might not increase the capacity of forests to func- it is no guarantee that industry would have enough wood. Most for- tion as carbon sinks. est holdings are quite small, and on the annual level, the income from stumpage sales remains small compared to other earnings. For The task of the Government is to ensure favourable operating con- many forest owners, the non-wood benefits of the forest are more ditions for the forest sector. Adequate public funding is a key con- important than stumpage earnings. Such factors diminish the will- dition for the attainment of many aims in the NFP. This is particu- ingness of owners to sell. Furthermore, weather conditions, the con- larly important in the event that changes in the operating environ- dition of roads and lack of available labour may even hamper the ment are more difficult than anticipated. harvesting of wood already bought. The risk scenario is that the for- est industry cannot secure a sufficient supply of wood. 40 PREPARATION AND EVALUATION OF THE PROGRAMME Open process of preparation Finland’s National Forest Programme 2015: National Strategy on the Preservation of Biodiversity and Sustainable Use of Nature, Finland’s National Forest Programme 2015 was drawn up in col- National Energy and Climate Strategy, Rural Development Strat- laboration among actors in the forest sector. The work involved egy, Natural Resource Strategy, National Transportation Strategy, representatives from Finnish ministries, forest administration, re- Development Cooperation Strategy, Government decisions on the search and education, forest owners, forest industry, environmen- promotion of wood products and wood building and guidelines tal organisations, employee organisations and entrepreneurs as for sectoral research, as well as corresponding international well as youth and leisure organisations. strategies and guidelines of the European Union. The METSO pro- gramme prepared in tandem with the NFP is included in the NFP. The preparation of the programme was coordinated by the Min- The proposals concerning the increase in the use of domestic istry of Agriculture and Forestry together with the National Forest wood presented in the interim report of the working group Council, its secretariat and four working groups. Several minis- chaired by Esko Aho have also been taken into account. tries and a broad range of interest groups have representation in the Forest Council and its organs. In addition, the Ministry of Ag- To confirm the targets set in the NFP and to assess its impacts, in riculture and Forestry has held separate hearings with interest 2007 the Ministry of Agriculture and Forestry commissioned the groups and ministries, organised feedback seminars and present- Forest Research Institute to prepare calculations on the basis of ed the draft programme at several events organised by other ac- five future scenarios: (1) business as usual; (2) roundwood im- tors. The draft versions of the programme have also been acces- ports will fall to less than one half, or about eight million cubic sible for comment on the NFP website of the Ministry of Agricul- metres per year, the annual use of forest chips will rise to eight ture and Forestry. The ministry has also published information million cubic metres and the price of energy will rise 2% per year; about the preparation in the media. (3) as in Scenario 2, except that the area of protected forests in southern Finland will increase to 5% of the total forest area and The preparation of Finland’s National Forest Programme 2015 about 54,000 hectares of forest will be conserved in northern Fin- has made use of Regional Forest Programmes for 2006–2011 land; (4) as in Scenario 3, except that the use of forest chips will drawn up by the Forestry Centres for their territories in a partici- increase four-fold to 12 million cubic metres per year and the patory process and with support from the Regional Forest Coun- value of production in the forest sector will increase 1.5 times so cils. As background information for the preparation of the pro- that one third of the increment comes from new products; and gramme, the Ministry of Agriculture and Forestry commissioned (5) as in Scenario 3, except that harvests in the forests of all own- the Finnish Forest Research Institute to prepare a report on the er groups will be implemented following maximum potential for future of the forest sector, in addition to which other future re- sustainable harvesting. The calculations took into account the views were used in the process, prepared by the Future Forum of economic, ecological and social impacts of the scenarios. Forests in Finland, the Technical Research Centre of Finland, the Finnish National Fund for Research and Development (Sitra) and Ex ante evaluation of the programme the Forest Academy for Decision-Makers as well as various inter- est groups and administrative branches. In parallel with the preparation of the NFP, an external ex ante evaluation of the programme was carried out by Indufor Oy from 1 As part of the preparatory process, Future Review for the March – 25 September 2007. The evaluation covered the structure Forest Sector – Outline of the Forest Council concern- of the draft programme, its content and quality as well as the func- ing priorities and objectives for the forest sector was tionality of the system for its implementation and monitoring. The prepared, approved by the National Forest Council in September evaluation also included an assessment of the preparation and con- 2006. The review was drawn up in the same participatory process tent of the programme in accordance with Section 3 of the Act on as the National Forest Programme. In accordance with the Gov- the Environmental Impact Assessment of Public Authorities’ Plans ernment Programme of Prime Minister Matti Vanhanen’s second and Programmes (200/2005). The ex ante evaluation also included Cabinet, the future review was used as the foundation for the an assessment of the impacts of the NFP from the perspective of preparation of the National Forest Programme. balanced regional development and gender equality. The following strategies and guidelines, either in preparation or The steering group for the ex ante evaluation comprised repre- approved by the Government, were taken into consideration in sentatives of the Ministry of Agriculture and Forestry and the 41 evaluating organisation. Indufor prepared interim and final re- ports on the evaluation, whose results were discussed in the Na- tional Forest Council, its secretariat and working groups. Propos- als for improving the structure of the programme and the effi- ciency of its implementation were taken into consideration by adding more emphasis on market orientation, revision of proce- dures and gender issues. The results of the Environmental Im- pacts Assessment were taken into consideration in both targets and measures of the NFP. The ex ante evaluation recommended the approval of the Regional Forest Programmes and regional development plans. 42 BACKGROUND MATERIAL International strategies, treaties and Education and Research 2007–2012. Development plan. 2007. regulations Ministry of Education. Draft. Saving Nature for People. National strategy and action plan for Biomass Action Plan. COM (2005) 628. conservation and sustainable use of biodiversity in Finland European Union forest strategy. COM (1998) 649. 2006–2016. 2007. Suomen ympäristö 35. 162 p. The European Landscape Convention. 2000. CETS 176. Strategy of the Finnish Ministry of Agriculture and Forestry for Fo- Council Regulation the establishment of a FLEGT licensing sche- rest Resources and Forest Management 2008–2015. Draft. Mi- me for imports of timber into the European Community No nistry of Agriculture and Forestry. 2173/2005/EC. Leading Forest Cluster by 2030. Research strategy of the Finnish EU Directive on the Promotion of the Use of Biofuels Or Other Re- forest cluster. Finnish forest cluster and its clientele. 2006. 39 newable Fuels for Transport. 2003/30/EC. p. Thematic Strategy of the European Commission on the Sustainab- Best Forest, Wood and Paper Expertise in the World. Developing le Use of Natural Resources 2005. forest sector education in Finland. Committee memoranda and Rural Development Programme for Mainland Finland 2007–2013. reports of the MInistry of Education 2008:1. 78 p. COM (2007) 3779. Natural Resources Strategy of the Ministry of Agriculture and Fo- EU Action Plan for Forest Law Enforcement, Governance and Tra- restry. Sustainable use of renewable natural resources. Publica- de (FLEGT). COM (2003) 251. tions of the Ministry of Agriculture and Forestry 8/2001. 112 EU Forest Action Plan. COM (2006) 302. p. Innovative and Sustainable Use of Forest Resources – Vision 2030. Future Review for the Forest Sector – Outline of the Forest Coun- A Technology Platform Initiative by the European Forest-Based cil concerning priorities and objectives for the forest sector. Sector. 2005. Publications of the Ministry of Agriculture and Forestry 11/2006. Financing of the Common Agricultural Policy. EU Regulation 36 p. 1290/2005/EC. Outline of the Energy and Climate Policy for the Near Future – Water Framework Directive 2000/60/EC.. National Strategy to Implement the Kyoto Protocol. Govern- United Nations Millennium Declaration. 2000. ment Report to Parliament, 24 November 2005. Strategic Centres for Science, Technology and Innovation. 2006. Science and Technology Policy Council. 48 p. National resolutions, strategies and National Programme on Plant Genetic Resources for Agriculture programmes and Forestry. 2001. Ministry of Agriculture and Forestry. 82 p. Regional Forest Programmes 2006–2010. Summary of forest pro- Science, Technology, Innovation. 2006. Science and Technology grammes of the Regional Forestry Centres. Publications of the Policy Council. 54 p. Ministry of Agriculture and Forestry 4/2006. Government Resolution. Development Policy Programme 2007 – Action Programme to Protect Biodiversity in Forests in Southern Towards a Sustainable and Just World Community. 17 October Finland, the Western Parts of the Province of Oulu and the 2007. South-Western Region of the Province of Lapland (METSO). Government Resolution Concerning the Use of Wood and the Pro- 2002. Suomen ympäristö 583. 53 p. motion of Wood Construction, 17 March 2005. A Viable Countryside – Ministries’ Responsibilities and Regional Government Resolution Concerning the Development of Sectoral Development. Special Rural Policy Programme 2007–2010. Research, 28 June 2007. Publications of the Ministry of the Interior 19&2007. 42 p. Government Resolution on a Programme for the Development of Finland’s National Strategy for Adaptation to Climate Change. Recreational Use of Nature and Ecotourism. 13 February Publications of the Ministry of Agriculture and Forestry 1/2005. 2003. 275 p. Water Protection Policy Guidelines to 2015. Government Resolu- Finland’s National Forest Programme 2010. Publications of the tion, 23 November 2006. Ministry of Agriculture and Forestry 2/1999. 38 p. Water Protection Objectives up to 2005. 1998. Suomen ympäristö Towards Sustainable Choices. A nationally and globally sustainab- 226. 82 p. le Finland. The national strategy for sustainable development. Getting More and Better from Less. Proposals of the “KULTU” Prime Minister’s Office Publications 7/2006 139 p. Committee for Finland’s national programme to promote sus- tainable consumption and production 2005. Ministry of the En- vironment & Ministry of Trade and Industry. 151 p. 43 Research and surveys Ministry of the Environment, Finnish Forest Research Institute and the Finnish Environment Institute. 354 p. Regional harvest potential according to the 10th National Forest Calculations and estimates of the Finnish Forest Research Institu- Inventory, fieldwork 2004–2006. Metsätieteen aikakauskirja te for the preparation of the long-term climate and energy stra- 2B/2007: 215–248. tegy. Finnish Forest Research Institute. 2007. Handout. 16 p. Assessment of long-term potential of using biomass in Finland: Perspectives on ecotourism and its future outlook. 2005. Future final report of expert group, 12 February 2007. Research funded Forum on Forests. University of Joensuu. Bulletins 165. 80 p. by the Ministry of Trade and Industry. Perspectives on the social sustainability of the forest sector and Ecological sustainability, environmental change and forestry. its future outlook. Future Forum on Forests. University of Joen- 2005. Future Forum on Forests. University of Joensuu. Bulletins suu. Bulletins 168. 80 p. 164. 71 p. Paper industry. Current state and future challenges. Report by the FinnSight 2015 – The Outlook for Science, Technology and Society. working group on the future of the paper industry 31 May 2006. Academy of Finland and Finnish Funding Agency for 2006. Finnish Forest Industries Federation and Finnish Paper Technology and Innovation. Workers’ Union. 2006. The direction of globalisation and alternatives of the forest sector. Securing timber transport on rail routes with low traffic volumes. 2007. Future Forum on Forests. University of Joensuu. Bulletins Working group proposal. Publications of the Ministry of Tran- 171. 241 p. sport and Communications 46/2007. Evaluation of the Finnish National Action Programme on Biologi- Securing wood supply and forest expertise in Finland. Expert cal Diversity. 2005. Suomen ympäristö 770. 251 p. views of development needs and ways of influencing. 2006. Elk population control system. Performance audit report of the Future Forum on Forests. 42 p. National Audit Office 100/2005. 48 p. Future prospects of timber production and harvesting. 2005. Fu- Recommendations for Good Forest Management. 2006. Forestry ture Forum on Forests. University of Joensuu. Bulletins 161. 90 Development Centre Tapio. Metsäkustannus Oy. p. Intergovernmental Panel on Climate Change. Fourth Assessment Demand and supply of wood-based fuels in Finland in 2020. Up- Report. Climate Change 2007: Synthesis Report. 2007. http:// dated review. 2007. Ministry of Trade and Industry & Pöyry. 34 www.ipcc.ch. p. Interim evaluation of Finland’s National Forest Programme 2010. State of Europe’s Forests 2007. The MCPFE report on sustainable Final report. Publications of the Ministry of Agriculture and Fo- forest management in Europe. Ministerial Conference on the restry 5/2005. Protection of Forests in Europe. Liaison Unit Warsaw, Poland. Ex ante evaluation of Finland’s National Forest Programme 2015. 252 p. Interim report for the National Forest Council 31 July 2007. In- Finnish forest cluster at crossroads. 2000. The Finnish Forest Clus- dufor & ITSU Oy. 62 p. ter Research Programme WoodWisdom. Ex ante evaluation of Finland’s National Forest Programme 2015. Finnish welfare based on forests 2015. Review of options for the Final report for the National Forest Council 25 September development and future of Finnish forest sector. 2006. Working 2007. Indufor & ITSU Oy. 59 p. reports of the Finnish Forest Research Institute 26. 250 p. Forest industry of the world. Background information for the fu- Future prospects of Finnish forest industry and their impact on ture review for the Finnish forest industry. 2005. Future Forum timber production strategies. 2005. JP Management Consulting on Forests. Metsäkustannus Oy. 355 p. (Europe) Oy. Report 29 April 2005. Successful forest sector and future challenges. 2005. Future Fo- Finnish forest resources by Regional Forestry Centre 2004–2006 rum on Forests. Metsäkustannus Oy. 118 p. and the development of forest resources 1996–2006. Metsä- Economic opportunities of value chains in the forest sector. 2007. tieteen aikakauskirja 2B/2007: 149–213. Future Forum on Forests. 82 p. Economic outlook. Bank of Finland. Euro & Talous 3/2007. Research report on the Forest Biodiversity Programme METSO. Transmitting Research Results. A study of the dissemination of 2006. Ministry of Agriculture and Forestry, Ministry of the En- research results into practical forestry. 2006. Reports and gui- vironment, Finnish Forest Research Institute and the Finnish debooks of the Work Efficiency Institute 28. 21 p. Environment Institute. 387 p. Alternative calculations for the preparation of Finland’s National Monitoring and evaluation of the METSO programme. Final report Forest Programme 2015. 2007. Working reports of the Finnish of the evaluation of the Forest Biodiversity Programme for Forest Research Institute ? 106 p (in preparation) Southern Finland. 2006. Ministry of Agriculture and Forestry, 44 Participants in the preparation of Finland’s National Forest Programme 2015 National Forest Council (deputy in brackets) Matti Hirvonen, Finnish Central Association for Recreational Sports and Outdoor Activities Juha Korkeaoja, Ministry of Agriculture and Forestry, chair until Pirkko Isoviita, Ministry of the Environment 4/07 Simo Jaakkola, Trade Association of Finnish Forestry and Earth Sirkka-Liisa Anttila, Ministry of Agriculture and Forestry, chair Moving Contractors from 4/07 Antti Koskimäki, Regional Forestry Centre of Häme-Uusimaa, Aarne Reunala, Ministry of Agriculture and Forestry, deputy from 10/07 chair Jouko Kostamo, Forestry Development Centre Tapio, from 03/07 Ilpo Kuronen, Finnish Association for Nature Conservation Lauri Ainasto, Wood and Allied Workers’ Union (Sakari Lepola) Timo Nyrhinen, Central Union of Agricultural Producers and Forest Leena Finér, Finnish Forest Research Institute (Hannu Raitio) Owners Ilkka Heikkinen, Ministry of the Environment (Pirkko Isoviita) Kaarlo Ouni, Regional Forestry Centre of Pirkanmaa, until 9/07 Jaana Heinisaari-Säteri, Finnish Sawmills (Jukka-Pekka Ranta) Kari Pelkonen, Metsähallitus, until 10/06 Silja Hiironniemi, Ministry of the Interior (Veijo Kavonius)) Pasi Puttonen, Finnish Forest Research Institute Harri Hölttä, Finnish Association for Nature Conservation (Sini Hark- Reima Sutinen, Ministry of Trade and Industry ki until 5/06, Ilpo Kuronen, from 6/06) Jouni Väkevä, Finnish Forest Industries Federation Hannu Jokinen, Metsähallitus (Jan Heino until 6/06, Jyrki Kangas, from 1/07) Working Group 1. Economic sustainability of forest sector Annu Jylhä-Pyykönen, Ministry of Education (Seppo Niinivaara) Kaija Kivinen, Ministry of Social Affairs and Health (Hannu Joki- Pentti Lähteenoja, Ministry of Agriculture and Forestry, chair luoma) Reima Sutinen, Ministry of Trade and Industry, deputy chair Seija Kivinen, Ministry of Finance (Petri Syrjänen) Sauli Kovanen, Finnish Paper Workers’ Union (Petri Vanhala) Heikki Granholm, Ministry of Agriculture and Forestry, from 4/07 Paula Nybergh, Ministry of Trade and Industry (Reima Sutinen) Antti Halkka, Finnish Association for Nature Conservation Håkan Nystrand, METO – Forestry Experts’ Association (Tapio Tapio Hankala, Society of Finnish Professional Foresters Hankala Society of Finnish Professional Foresters) Marja Hilska-Aaltonen, Ministry of Agriculture and Forestry Tauno Partanen, Hunters’ Central Organisation (Jari Pigg) Antti Koskimäki, Regional Forestry Centre of Häme-Uusimaa Matti Peltola, Trade Association of Finnish Forestry and Earth Mo- Simo Jaakkola, Trade Association of Finnish Forestry and Earth ving Contractors (Simo Jaakkola) Moving Contractors Antti Sahi, Central Union of Agricultural Producers and Forest Teppo Lehtinen, Ministry of the Environment Owners (Timo Nyrhinen) Marko Mäki-Hakola, Central Union of Agricultural Producers and Liisa Sahi, Guides and Scouts of Finland (Tuomo Jantunen, Finnish Forest Owners Central Association for Recreational Sports and Outdoor Acti- Timo Määttä, Motiva, from 4/07 vities) Seppo Niinivaara, Ministry of Education Timo Tanninen, WWF Finland (Harri Karjalainen) Håkan Nystrand, METO – Forestry Experts’ Association Hannu Valtanen, Finnish Forest Industries Federation, until 6/06, Ville Ovaskainen, Finnish Forest Research Institute Anne Brunila 7–11/06, Anders Portin, from 12/06 (Pekka Kallio- Olli Puukko, Metsähallitus Mannila until 12/05, Jouni Väkevä, 1-11/06, Antti Otsamo, from Jukka-Pekka Ranta, Finnish Sawmills 12/06) Juha Vaajoensuu, National Technology Agency of Finland Karen Wik-Portin, Regional Forestry Centre of the Coast (Markku Jouni Väkevä, Finnish Forest Industries Federation Heikkinen, Regional Forest Councils) Harri Hänninen, Finnish Forest Research Institute, secretary Marja Kokkonen, Ministry of Agriculture and Forestry, secretary Hannu Niemelä, Forestry Development Centre Tapio, secretary Secretariat Working Group 2. Ecological sustainability of forests Aarne Reunala, Ministry of Agriculture and Forestry, chair Marjukka Mähönen, Ministry of Agriculture and Forestry, chair Marja Kokkonen, Ministry of Agriculture and Forestry, deputy Mikko Kuusinen, Ministry of the Environment, deputy chair chair, secretary Hannu Ilvesniemi, Finnish Forest Research Institute Eero Autere, Forestry Development Centre Tapio, until 2/07 Harri Karjalainen, WWF Finland Petri Heinonen, Metsähallitus, from 11/06 Jyrki Ketola, METO – Forestry Experts’ Association 45 Jouko Kostamo, Forestry Development Centre Tapio Jouni Suoheimo, Ministry of Education, until 12/06 Panu Kuokkanen, Metsähallitus Jorma Tolonen, Regional Forestry Centre of Kainuu Ilpo Kuronen, Finnish Association for Nature Conservation Aki Tuominen, Guides and Scouts of Finland Kari Nieminen, Regional Forestry Centre of Southwest Finland Liisa Tyrväinen, Finnish Forest Research Institute Timo Nyrhinen, Central Union of Agricultural Producers and Forest Kati Vierikko, Finnish Association for Nature Conservation, from Owners 1/07 Suvi Raivio, Finnish Forest Industries Federation Paula Viertola-Jern, Central Union of Agricultural Producers and Anna Rakemaa, Ministry of Agriculture and Forestry, until 7/07 Forest Owners Niina Riissanen, Ministry of Agriculture and Forestry, from 8/07 Pertti Viik, Reindeer Herders’ Association, until 12/06 Jukka Sippola, Society of Finnish Professional Foresters, from Kirsi Viljanen, Ministry of Agriculture and Forestry 3/07 Leena Petäjistö, Finnish Forest Research Institute, secretary until Aarne Wahlgren, Regional Environment Centre of North Karelia 3/07 Paula Horne, Finnish Forest Research Institute, secretary. Kaisa Pirkola, MMM, secretary from 5/07 Harri Tukia, Finnish Environment Institute, secretary Juha Rutanen, University of Helsinki, secretary from 4/07 Permanent expert members: Liisa Siipilehto, Viikki Science Library Working Group 3. Social and cultural sustainability of the forest sector Pekka Virtanen, University of Helsinki Liisa Saarenmaa, Ministry of Agriculture and Forestry, chair Working Group 4. Advisory board on international Pauli Wallenius, Metsähallitus, deputy chair forest policy Pekka Aikio, Sámi Parliament, from 1/07 Anders Portin, Ministry of Agriculture and Forestry, chair until Lauri Ainasto, Wood and Allied Workers’ Union 11/06, Aulikki Kauppila 12/06–5/07, Heikki Granholm from Sini Harkki, Finnish Association for Nature Conservation, until 6/07 5/06 Olavi Luukkanen, University of Helsinki, deputy chair Matti Heikurainen, Ministry of Agriculture and Forestry, until 1/07 Mika Aho, Metsähallitus, from 3/07 Matti Hirvonen, Finnish Central Association for Recreational Markku Aho, Ministry for Foreign Affairs Sports and Outdoor Activities Lauri Ainasto, Wood and Allied Workers’ Union, from 7/07 Mikko Härö, National Board of Antiquities, from 1/07 Erja Fagerlund, Ministry of Trade and Industry Mikko Häyrynen, Metsälehti journal Björn Finne, Metsähallitus, until 7/06 Harri Karjalainen, WWF Finland Tapio Hankala, Society of Finnish Professional Foresters, from Juha Knuuti, Reindeer Herders’ Association, from 1/07 7/07 Aapo Koukku, National Board of Education, from 1/07 Harri Hölttä, Finnish Association for Nature Conservation, from Simo Kyllönen, University of Helsinki 1/07 Sirpa Kärkkäinen, Finnish Forest Association Simo Jaakkola, Trade Association of Finnish Forestry and Earth Kaisa-Leena Lintilä, Ministry of the Interior Moving Contractors, from 7/07 Päivi Luoma, Finnish Forest Industries Federation, from 1/07 Lea Jylhä, Central Union of Agricultural Producers and Forest Ow- Ristenrauna Magga, Sámi Parliament, until 12/06 ners Matti Malkamäki, METO – Forestry Experts’ Association, from Harri Karjalainen, WWF Finland 1/07 Leena Karjalainen-Balk, Ministry of the Environment Paula Nybergh, Ministry of Trade and Industry Ilmo Kolehmainen, Forestry Development Centre Tapio, until Tauno Partanen, Regional Forestry Centre of North Savo 9/07 Paavo Pelkonen, University of Joensuu Pirjetta Laine, Forestry Development Centre Tapio, from 7/07 Risto Päivinen, EFI Elina Nikkola, Ministry of Agriculture and Forestry Pekka Ripatti, Work Efficiency Institute, from 1/07 Håkan Nystrand, METO – Forestry Experts’ Association Juha Rutanen, University of Helsinki Antti Otsamo, Finnish Forest Industries Federation, from 12/06 Pekka Salminen, Ministry of the Environment Leena Paavilainen, Finnish Forest Research Institute, from 7/07 Tomi Salo, Trade Association of Finnish Forestry and Earth Moving Juho Pennanen, Finnish Association for Nature Conservation, un- Contractors til 6/07 Raija Seppänen, Ministry of Agriculture and Forestry Susanna Sieppi, Finnish Forest Industries Federation, until 6/07 Susanna Sieppi, Finnish Forest Industries Federation, until 4/06 Kirsi Taipale, MMM Jukka Sippola, Society of Finnish Professional Foresters Jari Varjo, Finnish Forest Research Institute, until 6/07 46 Taina Veltheim, Ministry of Agriculture and Forestry Anniina Kostilainen, Ministry of Agriculture and Forestry, secreta- ry from 9/07 Teemu Seppä, Ministry of Agriculture and Forestry, secretary from 2/07 Anne Vehviläinen, Ministry of Agriculture and Forestry, secretary until 9/07 The Future Review for the Forest Sector and the draft versions of the NFP were also commented by the following: Eeva Hellström, Forest Academy for Decision-Makers Lauri Hetemäki, Finnish Forest Research Institute Ilmo Kolehmainen, Metsähallitus Anssi Niskanen, Future Forum on Forests Jussi Uusivuori, Finnish Forest Research Institute 47 APPENDICES

Appendix 1 Dissenting opinion To the Ministry of Agriculture and Forestry Dissenting opinion / Finland’s National Forest Programme 2015 The aim of the Finnish Association for Nature Conservation (FANC) with regard to Finland’s National Forest Programme 2015 is to create a programme that is balanced in terms of nature and environmental protection and forest management. An essential element of this pro- gramme is the METSO Forest Biodiversity Programme for Forests in Southern Finland. METSO comprises the mechanism with which fellings are prevented in forest areas of conservation value. According to available information at this time, the programme cannot be said to be balanced in the way presupposed by the FANC. No adequate measures to offset the negative environmental impacts from the massive increases in the efficiency of forest management are defined in the programme. In addition to the conservation of nature in forests, more attention should be paid to, for example, increasing the carbon stock in forests and the state of waters, and the impacts of the use of peat. The shortcomings are discussed in detail in FANC’s official statement on Finland’s National Forest Programme 2015 to the Ministry of Agriculture and Forestry (17 January 2008) and in its dis- senting opinion on the report of the METSO Committee (7 January 2008). Assessing the degree of balance of the programme is difficult, because there is at this time no clear idea about the funding or all imple- mentation measures in the programme. Programme funding is still undecided for both conservation and forestry measures. However, the means of implementation are known for conservation, but partly unclear in the case of improving the efficiency of forestry. It can be seen already at this stage, however, that many measures intended to improve the efficiency of forestry will be more efficient than those aiming at conservation. More specific decisions concerning the implementation of the programme can at a later stage clearly contribute to a more balanced implementation of the programme. Helsinki, 28 January 2008 Harri Hölttä Forestry Expert Finnish Association for Nature Conservation 48 Publications of Finland’s National Ministry of Agriculture ­Forest Programme 2015 and Forestry More Welfare from Diverse Forests - Government Resolution 1/2008 Maa- ja metsätalousministeriön tilusjärjestelystrategia 2008–2013 ISBN 978-952-453-356-0 (Printed) ISBN 978-952-453-357-7 (PDF) 2/2008 Kalastusmatkailun kehittämisen valtakunnallinen toimenpideohjelma 2008–2013 ISBN 978-952-453-368-3 (Printed) ISBN 978-952-453-369-0 (PDF) 3/2008 Kansallinen metsäohjelma 2015 ISBN 978-952-453-375-1 (Printed) ISBN 978-952-453-376-8 (PDF) 3a/2008 Finlands nationella skogsprogram 2015 ISBN 978-952-453-377-5 ISBN 978-952-453-378-2 3b/2008 Finland’s National Forest Programme 2015 ISBN 978-952-453-379-9 ISBN 978-952-453-380-5 3b 2008 ISBN 978-952-453-379-9 (Printed) ISBN978-952-453-380-5 (PDF) ISSN 1238-2531 (Printed) www.mmm.fi ISSN 1797-397X (PDF) P.O. Box 30, 00023 Government