Today, Commissioner for Climate, Net Zero and Clean Growth, Wopke Hoekstra brought together representatives of forest owners and the pulp and paper sector for a high-level policy dialogue on Europe’s forest-based value chains. Representatives for the Commissioner for the Environment, Water Resilience and a Competitive Circular Economy, Jessika Roswall, and the Commissioner for Agriculture and Food, Christophe Hansen, also took part in the discussions.
The meeting focused on the timely question of how to enable much-needed investments to promote the long-term resilience and competitiveness of this important sector for the European bioeconomy, and how to maximise the sector’s contribution to Europe’s climate neutrality, competitiveness, and strategic autonomy goals.
Talks kicked off with a discussion about the new business opportunities created by the Carbon Removal and Carbon Farming certification framework (CRCF) and by the proposed integration of permanent carbon removals (bio-CCS and Direct Air Capture) into the EU Emissions Trading System (EU ETS), as per the Commission’s ETS review from July. Participants explored how these instruments could unlock investment into both climate-smart forest management and biogenic carbon, creating a new strategic asset. The discussion also delved into how the upcoming proposal on national climate targets and flexibilities for the post-2030 period could support these business opportunities.
Across the board, the participants reaffirmed their commitment to scaling up the EU’s circular bioeconomy and thus supporting Europe’s transition away from fossil fuel-based materials and feedstocks.
In his closing remarks, Commissioner Hoekstra emphasised the vital role played by forests and forest-based value chains in the EU’s climate transition. Furthermore, he said that policy initiatives to promote the vitality and resilience of the sector will be prioritised in the proposals ahead, including in the upcoming legislative proposal for national climate targets and flexibilities in the EU climate policy framework after 2030.
Today’s policy dialogue complements the Commission’s ongoing sectoral engagement with other key industries to discuss the challenges and opportunities in the transition to a climate-neutral and competitive economy. These discussions will inform the upcoming proposals contributing to the delivery of the 2040 climate target to reduce net greenhouse gas emissions by 90% compared to 1990 levels.
The high-level policy dialogue yielded key takeaways aimed at strengthening climate action across the value chain, investing in healthy and resilient forests, and building a post-2030 climate framework that supports forests.
Stronger climate action across the value chain
As fossil fuels are phased out of our economy, bio-based feedstocks will become increasingly important. Making the best use of biomass and the biogenic carbon it contains should be a guiding principle of EU climate policy.
This includes supporting the industry to improve resource efficiency and extending the traditional value chain with innovative applications. Biogenic carbon capture and storage is one example of this.
Participants therefore welcomed the proposed integration of permanent removals into the EU ETS as well as certification under the CRCF as an important step towards building a European market for carbon removals.
Like other sectors, foresters and the pulp and paper industry also require a predictable and coherent policy framework that supports their investments and provides the enabling conditions for a successful transition.
This includes a strong carbon price on fossil emissions, plentiful and affordable clean energy, and robust CO2 infrastructure and grid capacity. It also requires accelerated permitting procedures and commercial deployment and scaling-up of products and services based on renewable feedstocks, such as bio-based chemicals.
Investing in healthy and resilient forests
Participants further explained how active forest management contributes to better forest health and resilience, while increasing carbon removals, delivering co-benefits for biodiversity, and broadening access to renewable feedstocks.
Climate change is already affecting European forests with more unpredictable growth and natural disturbances, such as increasing wildfires and pests. Investing in climate resilient management practices is therefore key to ensuring the long-term viability of the entire forest-based sector. Additional capital for foresters and forest managers can be mobilised with new financing instruments such as the carbon removal credits issued under the CRCF.
Measures to increase carbon removals and long-term resilience include maintaining a mix of tree ages, ensuring the right species are planted in the right location, and optimising thinning procedures. On this point, participants emphasised that the upcoming certification methodology for forest management under the CRCF must reflect the diversity of forests and forestry practices across Europe.
A climate framework supporting forests
The participants welcomed the Commission’s intention to update the climate framework for the Land Use, Land Use Change and Forestry (LULUCF) sector for the post-2030 period and ensure that it better responds to the sector’s needs.
The upcoming evaluation of the LULUCF Regulation, scheduled for adoption at the end of 2026, will be an important starting point for implementing the lessons learned so far.
The policy dialogue explored aspects of the framework that could be further improved, such as stronger incentives for long-term resilience and recognition of forestry’s long planning cycles, as well as updated rules to address the impact of natural disturbances.
Participating Organisations
Billerud
Confederation of European Forest Owners (CEPF)
Confederation of European Paper Industries (CEPI)
European State Forest Association (EUSTAFOR)
Heinzel
Holmen
Metsä Group
Metsähallitus
Svenska Cellulosa Aktiebolaget (SCA)
Stora Enso
Sveaskog
Södra
Wallenberg Investments
