Opinion of the European Economic and Social Committee on ‘Towards a comprehensive strategy for the EU wood industry’ (own-initiative opinion)
Date: 2024-02-14
Institutions: European Economic and Social Committee
Subjects: EU strategy, circular economy, competitiveness, illegal logging, reduction of gas emissions, sustainable forest management, sustainable product, waste recycling, wood industry, wood production








C_202402480EN.000101.fmx.xml












Official Journal of the European Union


EN
C series













C/2024/2480


23.4.2024






Opinion of the European Economic and Social Committee on ‘Towards a comprehensive strategy for the EU wood industry’
         
(own-initiative opinion)
(C/2024/2480)







Rapporteur:



Anastasis YIAPANIS





Co-rapporteur:



Rolf GEHRING











Plenary Assembly decision


25.1.2023




Legal basis


Rule 52(2) of the Rules of Procedure




 


Own-initiative opinion




Section responsible


Consultative Commission on Industrial Change




Adopted in section


22.1.2024




Adopted at plenary


14.2.2024




Plenary session No


585




Outcome of vote
(for/against/abstentions)


156/0/1




1.   Conclusions and recommendations









1.1.


The EU wood industry competes with cheaper wood products from other regions, and its competitiveness hinges on advancing processes, productivity, efficiency and quality. Dedicated research and development (R & D) support is needed at both EU and national levels to develop engineered wood products, biocomposites, and other value-added solutions that offer improved performance and environmental benefits. The European Economic and Social Committee (EESC) calls on EU and national public authorities to prioritise the international competitiveness of the European wood industry by ensuring market access and addressing cost challenges and unfair trade practices, while securing a level playing field in the market.












1.2.


To advance sustainable business models in the wood industry, it is essential to secure primary raw materials and establish a functioning secondary raw material market. The EESC calls for supply chain enforcement and the resolution of technical obstacles that impede complete wood waste recycling, and urges the enforcement of a wood landfill disposal ban. Improved infrastructure is urgently needed, encompassing transportation, storage and processing capabilities, to ensure efficient supply chains and product delivery.












1.3.


As projections show 75 % of the global population moving to urban areas by 2050, the imperative for sustainable urban development underscores the importance of using eco-friendly, renewable wood materials in construction to reduce the carbon footprint and promote bioeconomic growth in the EU. The EESC advocates prioritising natural materials such as wood, paper, and fibre-based products over those originating from fossil fuels. It calls upon all EU institutions to duly acknowledge the contribution of renewable materials to sustainability, circular economy and climate neutrality, while recognising wood as a precious circular resource and raw material. Improved communication is essential to educate consumers about the environmental benefits of choosing sustainably sourced wood products.












1.4.


The wood industry must engage in minimising waste, encourage recycling and reuse of wood products, and adopt a robust maintenance concept from the design phase in order to align with sustainability goals, efficient use of resources and extending the product’s lifecycle.












1.5.


The EESC emphasises the complexity and cost of compliance with environmental, sourcing and quality standards, especially for small businesses, and calls for the EU to ensure coordinated legislation across Member States along with financial and non-financial support for small and medium-sized enterprises (SMEs) in the sector.












1.6.


The EESC underscores the need to set minimum standards for lifecycle carbon emissions in construction and the requirement for carbon reporting within the industry. It is essential for all construction professionals, including planners, architects, engineers, technicians, IT experts and construction workers, to receive adequate training and develop the required skills in sustainable construction techniques and materials.












1.7.


Illegal logging poses a critical threat to the sector, while the existing certification schemes are inadequate in addressing corruption, and the detection of fraudulent activities is insufficient. Thus, the EESC calls for stronger, proactive measures to combat illegal logging, deforestation, and the unlawful timber trade.












1.8.


The Committee acknowledges the imbalance between penalties for illegal logging and the value of timber products, calling for Member States to enhance penalties, bolster enforcement with technology, and communicate the importance of combating illegal logging through public awareness campaigns and reporting mechanisms for citizens.












1.9.


The wood industry faces a workforce gap due to the aging skilled labour force and the perception of working in the sector as being physically demanding. The EESC urges the development of an EU strategy to attract and retain younger talent in the sector, making it more appealing to young people and women, and ensuring the availability of skilled workers. Furthermore, Member States should allocate funding and provide incentives to educational institutions to develop wood industry-focused programmes, encourage partnerships with academic institutions to integrate wood-related courses, and promote collaboration among industry, academia and public authorities.












1.10.


The Committee emphasises the importance of upholding the European Pillar of Social Rights (EPSR) within the EU wood industry in order to ensure a fair and inclusive environment that values employee well-being and dignity. Monitoring mechanisms must be put in place to report on working conditions, rights, and social inclusion, as well as regular audits to ensure compliance with EPSR principles.












1.11.


The EESC recommends supporting forest owners with financial aid, training, workshops, tax incentives, and other measures to enhance their capacity for effective and sustainable forest management. The social partners and civil society should be engaged in monitoring deforestation reduction effectively, with the EESC and the European Committee of the Regions (CoR) joining the European Commission multi-stakeholder platform. The EESC calls on the EU to provide financing for national organisations involved in the reforestation of public areas that have been burnt or areas with low vegetation.












1.12.


The EESC urges the consistent implementation of the Ecodesign for Sustainable Products Regulation (ESPR) to make sustainable products the norm and maintain fair competition with imports. Additionally, the EU wood sector’s social partners should be invited to participate in the Ecodesign Consultation Forum.




2.   Background and introductory comments









2.1.


The EU wood industry comprises distinct subsectors within the NACE 16 category, including sawmilling, wood veneer and panel manufacturing, parquet floor assembly, carpentry and joinery, wooden container production, and other wood-based products. These subsectors have varying requirements and interests, often complementing each other, but occasionally competing. Due to length constraints, this opinion will concentrate on commonalities among these subsectors and will not delve into the specific details of each one.












2.2.


Approximately 45 % of the EU’s territory is covered by forests and other wooded areas, totalling around 180 million hectares. Of these, roughly 60 % are under private ownership, with the majority belonging to small-scale family-run holdings, constituting approximately 15 million forest owners in the EU. The remaining 40 % are publicly owned and are managed on a larger scale (1). Europe’s forest area is growing, but it has very few primary forests.












2.3.


Forests play a crucial role in the environment, economy, and social well-being of both local communities and the global population. They contribute to biodiversity and soil conservation, climate change mitigation, CO2 absorption, water cycle management, erosion control, air quality etc. and offer numerous ecological, economic and cultural benefits to both local communities and the global population. The EESC calls on the EU to provide financing for national organisations involved in the reforestation of public areas that have been burnt or areas with low vegetation.












2.4.


Wood is a quintessential circular material, energy-efficient and eco-friendly, with a long-live cycle and high potential for reuse, remanufacturing and recycling. When managed with precision, wood holds the potential to make substantial contributions to Europe’s climate policy objectives. Firstly, it facilitates added carbon retention within wooden structures, thereby extending the carbon sink provided by forests. Secondly, by replacing partial energy-intensive materials like steel, concrete, gypsum or plastic, wood helps reduce greenhouse gas emissions in the construction industry.












2.5.


As projections indicate that 75 % of the global population will reside in urban regions by 2050 (2), the urgent need for cities to embrace sustainability becomes undeniable. This necessitates a shift towards the adoption of building materials sourced from sustainable wood. Amplifying the incorporation of renewable and recyclable materials, especially in the EU construction sector, will play a pivotal role in reducing the carbon footprint of urban infrastructure, while fostering the growth of the bioeconomy.




3.   General comments









3.1.


In November 2021, EU Member States highlighted the importance of achieving equilibrium among the ecological, societal and economic dimensions of sustainable forest management (3). They emphasised the importance of preserving the variety of forests and fostering diverse and sustainable forest management approaches across various regions, with full respect for national competences and authority in the domain.












3.2.


The EU wood industries have advocated for greater acknowledgment of their capacity to facilitate sustainability across significant EU policies, such as the EU Industrial Strategy, the EU Green Deal and the EU Chemicals Strategy. Moreover, equipping Europe’s workforce with the requisite training and upskilling to effectively engage in developing bio-based value chains, while maintaining job quality, is pivotal for fostering a just transformation of the sector. However, responding to the demands of environmental sustainability through diversified bio-based value chains necessitates a more comprehensive policy approach within industries, as outlined in the 2022 EU Bioeconomy Strategy Progress Report (4).












3.3.


The EU wood industry requires better and more advanced infrastructure, including the transportation network, storage facilities and processing capabilities, to ensure efficient supply chains and timely delivery of products. Traditionally, the forest-based industries have been highly innovative. However, in a more complex and diversified economic world, the industry needs better support for research and innovation processes, especially from EU-wide coordinated programmes such as Horizon Europe.












3.4.


The wood industry is subject to various regulations and standards related to environmental protection, legality of sourcing and product quality. Compliance with these regulations can be complex and expensive, particularly for smaller businesses which often lack resources to navigate the regulatory landscape effectively. In such a complex regulatory environment, the EU must ensure the implementation of coordinated and efficient legislation in all Member States, while guaranteeing financial and non-financial support for the SMEs in the sector.












3.5.


Deforestation contributes to 20 % of worldwide CO2 emissions and is linked to the risk of many animal species becoming extinct due to habitat loss. Europol’s estimates suggests that environmental crime yields profits comparable to those of drug trafficking, albeit with significantly reduced chances of being detected and facing consequences (5).












3.6.


Europe is increasingly concerned about large forest fires, as their CO2 emissions undermine efforts to minimise emissions and as they may diminish wood availability. To counter this trend, there is a growing need for effective forest management and improved coordination and better equipment for European and national firefighting services. The use of modern technology (such as satellite monitoring and the use of drones) will contribute significantly to preventing future fires in the EU.












3.7.


Setting up more regional fire stations on a European and national level, as well as supplying local communities, especially those in the Mediterranean Member States, with small fire-fighting vehicles, is considered imperative.












3.8.


Illegal logging represents a serious problem in different areas in some Member States, with severe negative implications. Its impact has been particularly harmful to valuable areas like Natura 2000 sites, as well as primary and ancient forests, with the potential to drive species and habitats to extinction. In this respect, existing certification schemes do not adequately address and manage existing corruption practices, and the detection mechanism for detecting fraudulent activities remains inadequately implemented across the Union. The EESC demands stronger action and proactive measures to halt illegal logging and an effective action plan to stop the trade of unlawfully harvested timber and timber products. Promoting responsible forestry practices is vital to ensure progress on the matter.












3.9.


Furthermore, the Committee deplores that there is an imbalance between penalties for illegal logging and the value of timber products, often resulting in operators receiving minimal penalties such as warnings or low administrative fines. The EESC urges Member States to increase penalties and ensure enforcement by national forestry authorities, including a potential increase in law enforcement personnel and better use of modern technologies (such as satellite monitoring) to block these illegal activities. Furthermore, the topic must be efficiently communicated to the public at large through dedicated information campaigns, including by making available reporting mechanisms for EU citizens.












3.10.


Better communication is also needed to raise consumer awareness of the positive environmental impact of selecting wood products sourced from sustainably managed forests. The EESC therefore calls for action to encourage environmentally conscious consumer decisions and promote wood as a renewable and sustainable resource by highlighting the eco-friendliness of wood products.




4.   Specific comments









4.1.


The EU wood industry faces competition from wood products imported from other countries, including regions with lower production costs. The competitiveness of the wood industry depends on maintaining process-related technological advancements, while enhancing productivity, efficiency and quality. The EESC believes that dedicated support should be provided for R & D, including the necessary funding available both at EU and national level, to facilitate the developing of engineered wood products, biocomposites and other value-added solutions that offer improved performance and environmental benefits. SMEs need to have specific tools for better access and information purposes.












4.2.


Many skilled workers in the wood industry are approaching retirement age, leading to a gap in the available skilled workforce. Furthermore, the general perception that the wood industry is labour-intensive and physically demanding discourages individuals from pursuing careers in the field, especially the younger generation and women. The EESC calls for a clear strategy to alter this trend and ensure that a skilled workforce is available and that quality jobs in the wood industry are maintained, while also aiming to make the sector (and craftmanship in general) more attractive for young people and women.












4.3.


To ensure a fair, competitive environment in the forest-based industries, the EESC advocates establishing strong industrial relations, including widespread collective bargaining, through trade unions and employer organisations and with the goal of making the sector a more attractive place to work for both existing employees and young individuals and women seeking apprenticeships.












4.4.


The EESC emphasises the importance of establishing minimum standards for life cycle carbon emissions stemming from buildings and the associated demand for carbon reporting within the construction domain. Adequate training and skills development, via IVET (Initial Vocational Education and Training) and CVET (Continuous Vocational Education and Training) in applying novel sustainable construction techniques and materials are imperative for all stakeholders in the construction chain, including planners, architects, engineers, technicians, IT experts and construction workers.












4.5.


Increasing the use of wood in the construction sector to lower carbon emissions requires the encouragement of proactive and sustainable forest management practices within the EU. The EESC has already mentioned that ‘wood absorbs and stores CO2 from the atmosphere as it grows. Thus, when it is used for building, it becomes a green building material and contributes to the overall reduction in greenhouse gases’ (6). The EESC urges all EU institutions to give proper recognition to the role of renewable materials, including wood, in promoting sustainability, advancing the circular economy, and achieving climate neutrality.












4.6.


To elevate the importance of sustainably sourced wood in construction, it is vital to underline the requirement for sustainable forest management as a foundational resource. The EESC urges support for forest owners in the form of financial assistance, training programmes, workshops and seminars to equip forest owners with the skills and knowledge needed to manage their forests effectively and sustainably, initiatives to strengthen their administrative and organisational skills, incentives such as tax breaks or financial rewards for adopting and maintaining sustainable forest management practices, targeted programmes to support young and new forest owners, etc. The Committee has already mentioned that ‘social partners and civil society should play a tangible role in monitoring the effectiveness of reducing deforestation’ and ‘the EESC and the CoR should become members of the EU Commission multi-stakeholder platform’ (7).












4.7.


Education, training and continuous upskilling opportunities must be made more accessible and effective for EU citizens interested in working in the wood industry. Member States have to provide funding and incentives for educational institutions to develop and offer wood industry-focused programmes, encouraging students to pursue careers in the wood sector. The EESC also advises that partnerships with schools, colleges, and universities must be developed to integrate wood industry-related courses into their curricula. Additionally, collaboration between industry stakeholders, academia, and government bodies is crucial to successfully implement these strategies and build a competitive wood industry in the EU.












4.8.


Regarding the existing workforce in the sector, the Committee highlights the need to offer upskilling programmes, via IVET and CVET, to help them adapt to new technologies and changing demands. Furthermore, close collaboration with wood industry businesses and social partner associations is needed to design training programmes that are aligned with the industry’s evolving needs.












4.9.


The Committee underlines the role of the EPSR in order to create a fair, just, and inclusive environment within the EU wood industry, which values the well-being and dignity of all employees. Since working conditions in the woodworking sectors are often perceived as risky, prioritising general working conditions, occupational safety and health becomes crucial to enhance the sector’s attractiveness. Furthermore, promoting participation and well-defined career paths has become increasingly important in making a sector or workplace appealing. More specifically, it is paramount to establish mechanisms to monitor compliance with EPSR principles, including regular audits and reporting on working conditions, employee rights and social inclusion indicators.












4.10.


The EESC notes a growing emphasis on the circular economy and the need to reduce waste in the sector. The wood industry must find ways to minimise waste and promote recycling, reuse and repurposing of wood products to align with sustainability goals, extending the lifecycle of wood materials and respecting the ‘cascade’ principle for efficient use of resources. In this context, a robust maintenance concept plays a pivotal role and should be implemented from the beginning of the design phase.












4.11.


In order to promote sustainable business models in the wood industry, it is vital to ensure the availability of primary raw materials and develop a well-functioning market for secondary raw material, encompassing materials recovered from waste but requiring recycling. The EESC demands enforcement at all levels of the supply chain (sorting, collection and recycling) while concurrently addressing technical hurdles and standards that hinder complete wood waste recycling. EU legislation targeting the wood industry should support measures to achieve a fully functional EU internal market for wood products, including paper and cardboard, by supporting effective and efficient collection and sorting systems for recycling at scale. Furthermore, the Committee calls for action to enforce a prohibition on the disposal of wood in landfills in all Member States.












4.12.


European industry must focus on its competitive advantages and be supported to prevail in a very competitive international market, especially since the costs for material, energy and labour are significantly higher compared to many international competitors. Therefore, efforts must be enhanced to promote and secure market access for EU wood products in international markets, while ensuring a level playing field in the internal market.












4.13.


The EESC calls for consistent implementation of the Ecodesign for Sustainable Products Regulation by establishing sustainable products as the standard and ensuring equitable competition with imported goods. Furthermore, the relevant social partners from the EU wood sector should be actively engaged via the Ecodesign Consultation Forum in the deliberations on the adoption of Delegated Acts.






Brussels, 14 February 2024.


The President of the European Economic and Social Committee

Oliver RÖPKE
            





(1)  CEPI — Circular Choices for a competitive EU bioeconomy.

(2)  Hannah Ritchie and Max Roser, ‘Urbanization’, 2018.

(3)  Council conclusions on the EU forest strategy for 2030.

(4)  EU Bioeconomy Strategy Progress Report — European Bioeconomy policy: stocktaking and future developments COM(2022) 283 final. l

(5)  Europol — Environmental Crime.

(6)  EESC opinion on Wooden construction for CO2 reduction in the building sector (OJ C 184, 25.5.2023, p. 18).

(7)  EESC Opinion on Minimising the risk of deforestation and forest degradation associated with products placed on the EU market (OJ C 275, 18.7.2022, p. 88).


ELI: http://data.europa.eu/eli/C/2024/2480/oj
ISSN 1977-091X (electronic edition)