The European Union is promoting the transition to a bio-based and circular economy to reduce dependence on fossil fuels and achieve climate neutrality. But all these goals require a resource that is renewable, available in the long term, extractable, and sustainable. Wood is one of the few materials that meets all these criteria. It is, therefore, no exaggeration to say that there is now a struggle for the wood resources of the future. While Europe wants to use wood more and more in construction, packaging, energy, chemicals and other industries, various constraints on land use and economic activity are also increasing. This raises the question: will we be able to provide sufficient resources at a time when demand continues to grow?

Latvia has a long tradition of forestry, a high forest cover that has almost doubled in the last century, and a strong timber industry. But in Latvia, too, the availability of wood resources can no longer be taken for granted. Climate policy objectives, conservation demands, public expectations, and competition for land use are putting more and more pressure on the resource base. At the same time, it should be remembered that the forest sector is one of the mainstay sectors of the Latvian economy. It provides around 40 000 direct jobs, or 4.5% of the total number of jobs in the country. This means thousands of families whose daily lives, prosperity, and well-being are closely linked to the development of the sector. The forest sector generates a significant share of export earnings and contributes significantly to the national budget. This is why it is important to maintain a balance between environmental, social, and economic objectives when discussing the future of forests.

It is particularly vital to understand that sustainable forestry and nature conservation are not mutually exclusive. On the contrary, responsible, productive, and intelligent management allows one to achieve more results from smaller areas, while at the same time setting aside areas where nature conservation can be strengthened in a targeted way. This is the balance that will be needed in the future if we are to maintain both biodiversity and economic development opportunities.

Meanwhile, in Latvia, significant uncertainty remains for land and forest owners. Discussions on land stratification, the dynamic designation of conservation areas, fair compensation mechanisms, and voluntary conservation instruments have been ongoing for several years, but so far, no clear and predictable long-term solutions have been found. As a result, owners do not know what restrictions may be imposed on their land in five, ten or twenty years’ time, which inevitably reduces their willingness to invest in reforestation, selection, and productivity improvements. If we want to maintain a competitive forest sector while achieving our conservation objectives, we need more clarity, fair compensation, and trust for owners.

For us, Latvijas Finieris, the availability of wood resources is a strategic priority that determines our ability to develop in the long term. The timber industry is a long-term business, where decisions on investment, development, and job creation are made decades in advance. That’s why we have been building a diversified wood sourcing model for several years. Latvia remains and will remain our most important source of resources. But the geopolitical situation and market volatility have made it clear that it is not possible to rely on a single market in the long term. The company is therefore gradually expanding its geography of resource extraction and strengthening its cooperation in other countries of the Baltic Sea region. Our goal is to source up to 50% of the wood used by the company outside Latvia in the future. This does not mean giving up a local resource – quite the opposite, in fact. It is an approach that mitigates risks, balances supplies, and strengthens the company’s resilience in different market conditions.

Take Sweden, for example. It is one of Europe’s forestry powers with a long track record of sustainable forest management, high productivity, and a stable regulatory environment. In Sweden, for example, there is an increasing search for solutions to create productive mixed forests by combining conifers with birch to increase the resilience of forest stands to climate change while maintaining their economic value. However, the development of such approaches is driven not only by the science of forestry but also by market perspectives. So, it is important that there is a long-term demand for quality birch in Latvia and northern Europe – this gives forest owners the confidence that investments in birch will be economically viable and create added value in the future. We see significant potential for long-term cooperation in Sweden. This diversification of resource extraction is not only important for the company. It reflects a broader trend in Europe, where more and more companies are reviewing their sourcing strategies in search of greater resilience to geopolitical and economic shocks. Experience in recent years shows that security of supply is becoming as important as price or quality.

In Europe, the need to strengthen strategic autonomy and reduce dependence on external resources is often discussed. But these goals cannot be achieved without the smart use of local renewable resources. Wood is one of the key resources for Europe’s future competitiveness and must be treated as such. It is, therefore, important that decisions on the future of forestry are based on science, data, and a long-term view. Emotional discussions and simplistic solutions in this area can have consequences that will be felt for decades to come.

A forest is not just a natural asset or an object of economic activity. It is a resource that helps meet climate targets, creates jobs, provides exports, and strengthens Europe’s economic resilience. The sooner we realise this, the better we will be able to seize the opportunities offered by the transition to a bio-based economy and sustainable development. Access to wood resources, however, is not just a matter for the timber industry. It is a discussion about Latvia’s and Europe’s future competitiveness, economic security, and resilience in natural resource supply chains, as well as about the ability to shape our own development in a world where each country’s unique resources are increasingly valuable. For Latvia, such strategic resources are undoubtedly fertile land and forests.