The European forest-based sector is championing a ‘bio-based carbon economy’, highlighting how responsibly managed forests and circular, value chains can support the EU’s climate goals and industrial competitiveness, all at the same time.
At the “Forest-Based Bioeconomy in Action” event, a partner event of the EU Green Week, industry leaders and EU officials convened to discuss circular forest-based value chains, from wood in construction, to green alternatives to chemicals, and the paper-based packaging that nowadays in Europe is mostly made of recycled material.
Speakers all stressed one point: the potential of sustainably harvested wood, and its many recycled streams, to replace the major source of greenhouse gas emissions that are fossil-based materials, which EU countries mostly source through increasingly unreliable trade routes.
The business-case for this to happen, however, is currently less straightforward than one may think. Sustainable forest management, biomass sourcing, energy and carbon costs for industrial processing, carbon capture opportunities, and trade sit at the intersection of several policy areas and initiatives, where there is potential to further align incentives and ambitions across EU policy. With upcoming initiatives on the agenda of climate, circular economy and competitiveness, there is an opportunity to bring it all into a cohesive system, that maximises value while minimising environmental impact.
The event built on a Dialogue between DG CLIMA and other directorates, Cepi – the EU confederation of pulp and paper industries, and partners representing circular and forest-based sectors. Initiated at the beginning of the year, these discussions aim to exchange on insights to inform the development of a post-2030 climate framework that supports these industries’ capacity to deliver on some of the EU’s key priorities: meeting ambitious climate targets, keeping Europe’s industry competitive and achieving ‘European independence’.
Key priorities from the sector having emerged from these dialogues include effective carbon leakage protection under the EU ETS, access to competitively priced fossil-free energy, a secure and sustainable biomass supply, and the deployment of bio-based carbon capture solutions. Together, these elements are critical to strengthening Europe’s competitiveness while advancing climate neutrality.
Quote by Christian Holzleitner, Head of Unit Land Economy & Carbon Removals, DG CLIMA
“The bioeconomy value-chains are key enablers of our green and circular transition offering several new business opportunities in an economy based on biogenic carbon. From climate-smart managed and healthy resilient forests we can continue to provide products that remove and store carbon from the atmosphere and help us replace fossil-based materials and feedstocks, supported through voluntary certification under the Carbon Removals Certification Framework. The upcoming post-2030 climate policy architecture should aim to support investments in this sector and realise its full potential.â€
Quote by Jori Ringman, Cepi Director General
“How to channel investments to green industries if fossil-intensive sectors are the ones continue being championed by policy? Would LULUCF find the right balance to optimise carbon sink and biomass for the many products of the bioeconomy? And can we fully acknowledge the formidable amounts of carbon stocked in circular flows of material? If we can answer these questions, we could see emerge in Europe a new bio-based carbon economy which the world will envy.â€
Download the press release: Europe’s Circular Forest-Based Sector Calls for a Coherent Post-2030 Climate Framework’.