Point of view | Ville Hulkkonen: International climate policy framework under scrutiny – forest industry holds the keys to a solution
The past year has tested international climate policy. The United States’ withdrawal from key climate agreements, rising geopolitical competition over energy and critical raw materials, and increased focus on security and self-sufficiency have weakened global climate cooperation. Meanwhile, the EU faces economic recession and declining competitiveness.
The Paris Agreement was a historic achievement. Its implementation has required a vast, global administrative effort. Yet, beyond declarations and rhetoric, the true impact of climate action is investment. While emerging economies still rely on fossil resources, it is encouraging to see fossil-free energy production expanding rapidly worldwide.
The UN COP30 climate conference, held in Belém, Brazil, in November, confirmed that international climate policy is shifting from grand statements to practical, implementable solutions. Europe cannot expect to maintain climate leadership through regulation and tightening targets alone, especially when the ability to combine economic strength with the green transition is lacking.
In this context, the forestry industry and forest-based bioeconomy offer Europe a unique opportunity. Sustainable forestry is not merely about carbon sinks – it is part of a solution that combines climate mitigation, industrial value creation, and strategic self-sufficiency. Wood-based products store carbon for the long term and replace fossil-based materials in construction, packaging, textiles, and energy production. In raw material production, there is scope to continue developing measures that enhance biodiversity.
Recent EU strategies, such as bioeconomy guidelines and discussions on the 2040 climate targets, already reflect this shift. The next decisive step is implementation. Climate policy must recognise not only carbon sinks but also the substitution effects of materials and energy and provide a predictable framework for investment.
As climate policy increasingly focuses on cost-effectiveness and impact, the forestry industry can become a strategic strength for Europe. Now is the time to move from words to action: invest in sustainable forestry, maintain forest vitality, and develop wood-based products that simultaneously support climate goals and Europe’s economic success.
The risk of carbon and harvest leakage from Europe to other regions is real. From a climate and environmental perspective, the goal is clear: strengthen the conditions for sustainable forestry and wood processing on our own continent, rather than shifting benefits and responsibilities beyond Europe’s borders.
A positive signal from COP30 for the Finnish and European forestry sector was the inclusion in EU negotiating positions of references to sustainable, renewable bioeconomy. Sustainable Forest Management was also reflected in UN texts in a more favourable way than before. Forestry is increasingly seen as part of the climate solution – not the problem.