Håkan Buskhe,
CEO of FAM
The forest path
Cornerstone of transition.
A good third of the EU's surface area is cloaked in forests, with private ownership accounting for about 60% of these wooded expanses. FAM, a holding company owned by the three largest Wallenberg Foundations, owns Kopparfors Skogar with 0.28 million hectares of forest and holds co-ownership of an impressive 1.4 million hectares of productive forest land in Sweden. FAM has commissioned a study from AFRY, exploring the pivotal role the EU's forest industry could play in safeguarding our climate. In this interview, Håkan Buskhe, CEO of FAM, talks about the strategic importance and climate benefits of forests.
Professionalism changes perspectives: where others usually look at outward appearances, the professional sees the background. What do you see when you walk through the forest?
Håkan Buskhe: I see many things. For one, forestry creates employment and opportunities so that all of Sweden can thrive. And forest-based materials and products are essential in our lives. It would be difficult, if not impossible, to spend a single day without using a forest product.
But the forest is also important for our understanding of ourselves and our place in the world. I basically grew up in the forest and it is there, surrounded by pines, moss, and birds, that I find peace of mind.
For us in Sweden it has been natural to see the forest both as an economic resource and an important nature resource, essential for biodiversity. For countries with scarcer forest resources, it becomes more natural to protect what forest
they have. When these different perspectives meet in Brussels, conflicts arise, because one size does not fit all.
Covering almost 70 percent of Sweden's total land area, forests play an enormous role for the country
and hold strategic importance. Could you elaborate on the extent, wide-reaching impact, and socioeconomic sectors influenced by forest-based industries?
Håkan Buskhe: Sweden is basically a forest, with some gaps here and there. This has of course influenced our way of living and thinking. The forest is part of both our soul, our culture and our economy. So, it means everything. Without the forest, Sweden would not be the same country.
There is an entire economic ecosystem built up around forests and forestry. It provides the livelihood for whole parts of the country, especially in the northern regions, where forestry also provides the economic foundation for farming.
Wood-based materials is an expanding field of research and innovation. Finding ways to replace fossil-based materials with renewable alternatives is an important priority, and something that Wallenberg Wood Science Center has promoted since 2009.
The research focuses on everything from bio-polymers, to nanotechnology and composites for electronics – all based on wood.
For Sweden as a country, forestry represents around 7% of our GDP, which is a substantial share. It is the single biggest contributor to our net export, and Sweden is the world’s third largest exporter of sawn goods and of paper and cardboard.
All this is made possible by Sweden’s more than 300, 000 forest owners. The heterogeneous ownership structure also ensures that each forest is managed in a way that is suited to each particular forest stand.
In the research you initiated, you delve into the capabilities of the EU's forestry and forest-based
sector. Could you elaborate on the contributions this sector and on whether FAM is capable of making towards broader objectives?
Håkan Buskhe: The study shows that the forest sector already today substitutes 390Mt of fossil carbon dioxide. This number can be increased even further, to approximately 500-700Mt by 2050, if forest growth is increased. This corresponds to the emissions of roughly the same number of fossil cars.
The study shows that much more can be done, however we then need to ensure that we have an increased supply of sustainable sourced European wood. There is a good potential for this, especially in central and southern Europe.
And I also think the study is immensely important in starting to shift the mindset and the focus of the debate. For a long time, everyone has been talking about the end goal of a fossil-free society, but we have to start thinking about the how of it all. How are we going to reach net zero emissions?
And I do not think that it will be possible to stop doing everything that we are doing today, in terms of housing, enabling mobility of people and goods, and providing products that people need in their everyday life. What we need to do is redesign
and reconstruct the industrial processes and remove the fossil components. And in that context forests can provide one important piece to the puzzle.
Unlike in many parts of the world where deforestation is still a major challenge, the EU is seeing growth in land area covered by forest. What conclusions do you draw from this?
Håkan Buskhe: When humans use natural resources there is always a risk of over-exploitation. This was the case in Sweden in the second half of the 1800’s. To remedy this, better economic incentives were introduced, including the possibility for forest
owners to use the forest as collateral for financing purposes.
New legislation was also introduced – such as mandatory replanting of trees. Once this was accomplished, every forest owner saw the value in growing healthy forests over time.
So, the ultimate conclusion is that the proper economic incentives, in combination with good legislation, leads to active sustainable forest management.
What hopes do you have with regard to the forest industry’s contribution to climate and biodiversity protection, and what are the most important hurdles to overcome?
Håkan Buskhe: I am convinced that we have only begun to scratch the surface of the potential for forest based fibre - but far-sighted and persistent policies are required to unleash this potential, both within the EU and in Sweden. The EU election debate will be a first test of whether this message has gotten across.
And when it comes to biodiversity, I would like to say that it is extremely important for us that our forests are managed actively and sustainably. Statistics show that biodiversity is improving, both in terms of the prevalence of dead wood, the diversity of tree species, and the average age of trees. But we can still do more to improve the situation and we are working hard to do this.
All this is necessary for our continued license to operate, but it is also important in and of itself.
Find out more:
Increasing the substitution
from fossil to fibre-based
raw materials is crucial for
the EU to reduce emissions.
Growing and actively
managed forests remove
more carbon from
the atmosphere.
Bioenergy can support
the transition to more sustainable energy systems
at the whole EU level.
Forest-based innovation
will continue to deliver
new solutions to
the climate challenge.