Published by Global Banking & Finance Review®
Posted on September 16, 2025
3 min readLast updated: January 21, 2026
Add as preferred source on GoogleSweden and Finland urge the EU to revise forestry climate targets, citing economic risks and unrealistic CO2 uptake goals.
STOCKHOLM (Reuters) -
Sweden and Finland could suffer "dire" economic consequences if they are forced to harvest less forest for wood products in order to meet their EU-mandated climate targets, the two countries said this week.
As part of the European Union's plans to reach net zero emissions by 2050, Sweden and Finland have been tasked with increasing the amount of CO2 bound up by forests.
But both countries say they are on track to miss the EU's Land Use, Land-Use Change and Forestry (LULUCF) targets for the period 2021-2025 and 2026-30, blaming climate change for slower tree growth and the war in Ukraine for increased demand.
"The EU's current framework for forest use ... is a major problem and, if not revised, would lead to unreasonable and unjustified restrictions on Swedish forestry," Swedish Prime Minister Ulf Kristersson said on X late on Monday.
"To in practice severely restrict large parts of Nordic forestry is the wrong path to take."
Finland and Sweden urged the EU to take a "flexible" approach to assessing compliance with LULUCF targets.
Industry and environmental groups both see forests a key part in fighting climate change. Forestry firms stress the economic benefits, sustainable management and the role of biofuels and wood in replacing fossil fuels, plastic and concrete.
But scientists have warned that over-logging, monoculture and other industry practices are reducing the ability of forests to absorb carbon dioxide, and put Europe's climate goals at risk.
In a joint letter to European Commission President Ursula von der Leyen, Sweden and Finland said their targets - an increase in CO2 uptake of around 4 million tonnes annually by 2030 for Sweden and 3 million tonnes for Finland - were unrealistic.
Reduced logging would "entail dire consequences for our economies as well as labour markets", the two countries said in the letter.
Forests cover around 70% of Finland and Sweden. Wood products make up more than 10% of Sweden's exports and almost a fifth for Finland. More than 200,000 people work in the sector.
EU governments are currently negotiating the 2040 climate target and the role of forests a key question.
Sweden and Finland said they supported an EU-wide net emission reduction target of 90% for 2040 covering both emissions and removals, but that targets must be realistic.
"A successful future for Europe relies on a successful clean transition, combining growth, jobs and decreased emissions," they said.
(Reporting by Simon Johnson)
Sustainability refers to the ability to meet present needs without compromising the ability of future generations to meet their own needs, particularly in environmental, economic, and social contexts.
Logging is the process of cutting down trees for timber and other wood products. It plays a significant role in forestry management and can impact environmental sustainability.
CO2 uptake refers to the process by which trees and plants absorb carbon dioxide from the atmosphere, helping to mitigate climate change by reducing greenhouse gas levels.
Economic consequences are the financial impacts resulting from specific actions or policies, such as reduced logging affecting jobs, exports, and overall economic growth in a region.
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