Petri Lehtonen

Value creation from forests

• Actual trade
value
• Most income
and job
creation
➢ 90% wood
products

Adapted from: Boston Consulting

Group: The Straggering Value of
Forests 2020

Climate value Commercial value Environmental value Social value

(carbon sink) (traded products) (biodiversity) (subsistence)
What defines sustainable forest-based value chains?
• Forest producers produce raw materials from forests
• Companies transform them into products and sell to final consumers
• Different actors contribute to value addition

Leading to:
• Profitable, inclusive economic growth
• Without depletion of natural capital
• Increasing carbon sinks and conserving biodiversity

Global value: EUR 1,300 billion

Formal jobs: 33 million

Mostly smallholders, communities and

SMEs in rural areas
 Universe of forest products and services
FORESTS ECOSYSTEM
TREES
SERVICES
WOOD
PRODUCTS NON-WOOD
FOREST
PRODUCTS
SOLID WOOD
PRODUCTS
PULP
WOOD ENGINEERED CHEMICALS
SAWNWOOD
PANELS WOOD

ENERGY WOOD BIOPLASTICS Edible plants Biodiversity

Construction: PRODUCTS COMPOSITES Mushrooms Water, soil and
Cross- air quality
beams, Nano- Wild meat
laminated Cooling
Veneer trusses, Paper cellulose Honey, bee wax
timber (CLT) Carbon storage
Plywood frames, Packaging Betulin Aromatic plants
(masswood)
Oriented strand windows, board Tall oil, Essential oils
board (OSB), doors, flooring Textiles Utensils tannins, resins Gums, resins
Laminated Fuelwood 3D printing
Medium- Decking Costruction Materials
veneer Chips materials
density and Furniture: Fencing insulation Liquid Rattan, bamboo,
lumber (LVL Charcoal Packaging
hard-density chairs, tables, Packaging biofuels:
fibre boards cabinetry Pellets Boxes, Bags ethanol,
Glulam Small objects
(MDF, HDF) Packaging: Briquettes Plastic films naphtha
Finger-
pallets, crates,
jointing
barrels,

Adapted from FAO: Forest products In the global bioeconomy 2022

Global forest area (1990- 2020) million ha
Loss of natural forests
300 million ha (7%)
Even greater loss of
biodiversity due to
degradation

290 million ha of planted

forests supply 30 to 40% of
global industrial wood

and about 60 to 70% of

global industrial wood in
the tropical and sub-topical
areas

Data FRA 2020

 Production of roundwood and consumption of
wood products (1961-2020)
Global production of roundwood by region, million m3 Global consumption of wood products, RWE million m3

Data: FAOSTAT Forest product statistics 2022

Regional differences in consumption of wood
products

Data: FAOSTAT
Forest product statistics 2022
Major Urbanisation
drivers of
future Housing shortage
demand in
partner
countries Decarbonising economies
Africa: Consumption of solid wood products
(1961-2020) and forecast (2021-2050)

Data: FAOSTAT Forest product statistics 2022 and estimations based on forecasted urbanization
 Wood-based value chain for solid wood products
Clustering wood
processing

ROUND WOOD
Further
Harvesting, processing
Nurseries transport SAWN WOOD ENGINEERED WOOD HOUSING CONSTRUCTION
WOOD MANUFACTURERS
Primary
processing
SUSTAINABLE MANAGEMENT
OF NATURAL FORESTS
WOOD PANELS FURNITURE,
WOOD RESIDUES DECKING, ETC
VENEER AND
PLYWOOD
DEVELOPMENT OF Service
PLANTATIONS Traders ENERGY Consumers
providers
 Opportunities for an EU role
Governance and Investments in
enabling physical and Skills, capacities
business social development
environment infrastructure

Sustainable Forest Plantations, Product Green

Management agroforestry SME support development procurement
 Forest products are a significant part of global renewable natural
resources

Sustainable use of forests and wood products contribute to

carbon-neutral and circular economies

Highlights Forest-based value chains generate jobs and better livelihoods

and contribute to inclusive economic growth

EU support can be a game changer for developing sustainable

forest-based value chains, if it helps reduce risks and accelerate
the urgently needed investments.
 Thank you

© European Union 2022

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