Sweden, Finland Warn of “Dire Consequences” as EU Forest Rules Risk 200,000 Jobs, Timber Supplies

September 18, 2025
1 min read
Snow-covered coniferous forest landscape in winter showing dense stands of evergreen trees blanketed in white snow under overcast sky.
Climate change impacts like drought and pests are slowing forest carbon absorption rates across Nordic countries, forcing a reassessment of EU environmental targets that assume consistent forest growth patterns. Photo Source: Unsplash

Sweden and Finland have sent a joint letter to European Commission President Ursula von der Leyen asking for changes to EU climate rules that limit timber harvesting. The Nordic leaders warn that current targets could hurt their economies and disrupt timber supplies across Europe.

Under EU climate regulations known as LULUCF (Land Use, Land-Use Change and Forestry), Sweden and Finland must increase their forests’ carbon absorption by about 4 million tonnes and 3 million tonnes of CO2 annually by 2030. Both countries say they are on track to miss these targets for the periods 2021-2025 and 2026-2030.

“Significantly decreasing felling volumes is not a viable option, as this would have dire consequences for our economies,” Finnish Prime Minister Petteri Orpo said in an official statement. “Furthermore, it would severely affect the supply of timber and forest biomass throughout the EU.”

Swedish Prime Minister Ulf Kristersson was equally direct on social media platform X, warning that the EU framework would impose “unreasonable and unjustified restrictions on Swedish forestry” if not revised.

The forest sector is vital to both economies. Forests cover about 70% of Finland and Sweden. Wood products make up more than 10% of Sweden’s exports and nearly 20% of Finland’s. More than 200,000 people work directly in the forest sector across both economies.

The prime ministers point to several reasons why meeting current targets has become harder: slower forest growth linked to climate change, increasing problems with drought and pests, and market disruption following Russia’s invasion of Ukraine, which has increased demand for Nordic timber.


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Europe’s land carbon sink is already showing signs of weakening. Recent assessments indicate Europe’s forests removed roughly one-third less CO2 in 2020-2022 than in 2010-2014. Multiple factors contribute to this decline: more intensive harvesting, drought, wildfires, and forest pests.

Instead of strict harvest cuts, the Nordic leaders are asking for technical adjustments to how carbon absorption is calculated. They want updated guidance on “forest reference levels” that would account for natural variations in growth, climate-related disturbances, and emissions from organic soils.

The request comes as the EU works toward a proposed 90% net emissions reduction target by 2040. The Swedish and Finnish leaders support swift adoption of this target but stress that any framework must account for “uncertainties in the land-use sector” and maintain “technology neutrality and cost-effectiveness.”

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The forest industry argues that sustainable forest management and using wood products to replace fossil-based materials (known as the “substitution effect”) are important parts of climate action. Environmental groups counter that over-logging and single-species plantations reduce both carbon storage and biodiversity.

The European Commission is now coordinating with member states on compliance with the first period of LULUCF targets and preparing for the proposed 2040 climate framework.

Govind Tekale

Embarking on a new journey post-retirement, Govind, once a dedicated teacher, has transformed his enduring passion for current affairs and general knowledge into a conduit for expression through writing. His historical love affair with reading, which borders on addiction, has evolved into a medium to articulate his thoughts and disseminate vital information. Govind pens down his insights on a myriad of crucial topics, including the environment, wildlife, energy, sustainability, and health, weaving through every aspect that is quintessential for both our existence and that of our planet. His writings not only mirror his profound understanding and curiosity but also serve as a valuable resource, offering a deep dive into issues that are critical to our collective future and well-being.

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