Finland’s Forest Industry Takes a Hit: How to Boost Value Added with Innovation and Sustainable Practices

A recent study by the Forestry Panel has highlighted ways to improve the collapsed value added of Finland’s forest industry. Currently, Finnish forests are receiving about half less money per cubic meter of wood compared to the late 1990s and early 2000s. The decline in value added is primarily due to decreasing demand for paper products.

The report emphasizes the need to shift towards higher value-added products derived from forests such as nanocellulose, wood construction, new types of packaging, and textiles. These products have the potential to generate more revenue while also benefiting the economy, forest nature, and carbon storage efforts.

The Forestry Panel’s report titled “From a drop to medicine,” highlights the potential of nanocellulose in pharmaceutical applications. It projects that by 2035, Finland’s forests could contribute up to 15.6 billion euros in value added, representing an 80 percent increase from 2019 levels.

To increase value added, the panel recommends updating current solutions such as wood construction, packaging, and textiles while promoting new innovations like cross-laminated timber (CLT) in construction and shifting towards fiber-based packaging. Innovations in utilizing lignin, a biopolymer produced by trees also hold promise for applications in batteries, adhesives, and coatings.

However, new innovations require substantial funding which the panel recommends allocating resources to support bio-based development projects. By embracing these recommendations and focusing on sustainable practices, Finland can revitalize its forest industry and extract greater value from its valuable natural resources.

The Forestry Panel’s report sheds light on how Finland’s forest industry can recover from its current slump by exploring new opportunities in high-value products derived from forests. The study suggests that by focusing on sustainable practices and investing in innovation through funding bio-based development projects, Finland can turn around its fortunes and secure a prosperous future for its forest industry.