Forest management in Finland

Forest management in FinlandForest management in Finland

Marko Mäki-Hakola Research manager

Central union of agricultural producers and forest owners (MTK)

[email protected], +358 40 5026810

Slovakia 7.11.2006

2

This presentationThis presentation

1. Finnish forest sector and family forestry in Finland

2. Forest legislation and forest policy

3. Nature protection

4. Everyman’s right

5. Something to remember

1. Finnish forest sector1. Finnish forest sector

4Source: Pellervo Economic Research Institute (PTT), Statistics Finland, 2005

Publishing and printing are incorporated in the pulp and paper industry because in some provinces separating these would endanger information security. The contribution of these towards the GNP of the whole country’s forest sector is approximately 15 percent.

Well-being from Forests Is Spread Far and WideWell-being from Forests Is Spread Far and Wide

In 2003 the forest sector was responsible for 7,3 % of the country’s GNP.

In monetary terms this came to over 9 billion euros.

The highest

The second highest

In terms of primaryproduction and industrial branches theforest sector’s GNP is

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6

FINLANDA Land of 188 000 LakesFINLANDA Land of 188 000 Lakes

Forest area (FAO): 22 million hectares 73 % of land area (EU-25: 36 % of land area)

Utilized agricultural area: 2.2 million hectares 6 % of land area (EU-25: 42 % of land area)

Water area: 3.4 million hectares 10 % of total area

TOTAL AREA 33. 8 million hectares

Population density (land area): 17 persons/km2 (EU-25: 117/km2)

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1955 60 65 70 75 80 85 90 95 00 050

10

20

30

40

50

60

70

80

90

100mill.m3

0

10

20

30

40

50

60

70

80

90

100mill.m3

Total drain Growth, 5-yr. average

TOTAL DRAIN

GROWTH

Source: Finnish Forest Research Institute

Wood Production Is the Backbone of Sustainable Forestry

Wood Production Is the Backbone of Sustainable Forestry

*Logging + Natural*Logging + Natural

**

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* = according to an inventory of 2004-2005Source: Finnish Forest Research Institute

Forest Ownership Structure in Finland(according to an inventory of 1996-2003)Forest Ownership Structure in Finland(according to an inventory of 1996-2003)

86

68 6760

9

17 2026

510 8 95 5 5

COMMERCIALFELLINGS/year

54 MILL. M3

* ANNUALINCREMENT97 MILJ. M3

* VOLUME OFGROWING STOCK

2176 MILJ. M3

* PRODUCTIONFOREST AREA

20 MILJ. HA

0%

20%

40%

60%

80%

100%

Private

State

ForestIndustry

Others

2. Family forestry2. Family forestry

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Average size of private forest holdings (ha)Average size of private forest holdings (ha)

Average size in Finland 31,4 ha

21

22

27

25

27 25

26 33

34

3332

4738

64

Entrepreneurs 3,7 %

Pensioners 19,8%

Wage & Salary earners 15,5 %

Others4,9%

State 24,4 %

Forest Industry 8,9 %

Farmers 20,4 %

Entrepreneurs 3,7 %Entrepreneurs 3,7 %

Pensioners 19,8%Pensioners 19,8%

Wage & Salary earners 15,5 %Wage & Salary earners 15,5 %

Others4,9%

State 24,4 %State 24,4 %

Forest Industry 8,9 %Forest Industry 8,9 %

Farmers 20,4 %Farmers 20,4 %

Forest ownership:

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Family Forestry is characterised byFamily Forestry is characterised by

Multiobjectivity family forestry incorporates multiple values

and functions

Over-generational thinking the needs of future generations are

constantly borne in mind and the forest holding is handed down to the next generation in a further improved condition

Various benefits and services provided to the society

e.g. Everyman's Right - the forests and waters are free for everyone to visit and enjoy

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MTK promotes sustainable family forestry in accordance with the following principles:

Landowners’ constitutional rights are respected Forest owners have the right and the opportunity

to manage and use their forests in compliance with their objectives

Forestry is economically profitable Forests are managed in compliance with the

principles of sustainable forestry.

Family Forest Owners' PrioritiesFamily Forest Owners' Priorities

Sustainable Forest

Management SFM

EcologicalDimension

SocialDimension

EconomicDimension

CulturalDimension

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In Finland the Forest Management Association is forest owners’ own association

In Finland the Forest Management Association is forest owners’ own association

There are 154 Forest Management

Associations in Finland

more than 300 offices, i.e. one in everymunicipality

more than 1100 forestry professionals and 750 forest workers, additional contractors and entrepreneurs employed by the associations

FMA serves the forest owners in all matters relating to forest: e.g. planting, harvesting, ownership issues

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Forest Management Association at forest owners serviceForest Management Association at forest owners service

FMAs are members of regional Forest Owners’ Unions

The Unions are members of the Central Union of Agricultural Producers and Forest Owners (MTK).

This ensures the protection of forest owners’ interests on all levels: national, regional and local

The certification of the Finnish family forests is organised through the FMAs

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FMA is financed and controlledby the forest ownersFMA is financed and controlledby the forest owners

Forestry management fee is statutory

Forestry management fee ensures the

possibility to all forest owners to get guidance, training and services in any matters relating to the forest

Every fee-paying forest owner is a member of the local FMA

The Council of the Association is the highest decision- making body. Members elect the Council, every member has one voice.

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Public Support to Private ForestryPublic Support to Private Forestry

Act on Financing of Sustainable Forestry sustainability of timber production and vitality of

forests maintenance of biological diversity of forests forest ecosystem management

Support to long-term investments non-productive investments environmental investments government subsidies increase also private

investments in forests

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p = preliminary data

1963

1966

1969

1972

1975

1978

1981

1984

1987

1990

1993

1996

1999

2002

2005

p

0

50

100

150

200

250Mill. euros Total costs Own input State grants State loans

Source: Finnish Forest Research Institute

Investments in Silvicultural and Forest-Improvement Works in Nonindustrial Private Forests

real prices (cost-of-living index, year 2005)

Investments in Silvicultural and Forest-Improvement Works in Nonindustrial Private Forests

real prices (cost-of-living index, year 2005)

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Ownership structure and sustainable forest managementOwnership structure and sustainable forest management

Sustainability- Long term commitments – long term property rights and secure ownership

Family forestry (private forestry) each generation hands forests to the next generation in an even better

condition that they inherited the property. Needs an effective forest owners’ organization and cooperation Economic viability is a precondition to SFM in private forests Extremely important in rural areas, incomes, employment Multi-objectivity from roundwood production to nature values Market-based action, private forestry often increases the effectivity and

productivity and expands forest resources Respects the forests and their many values

State forestry Is the over generation thinking possible? Often many pressures Suitable when the goal is primarily to produce conservation or other public

goods.

”The success and suitability of forest ownership models is largely dependant on a number of factors ranging from historical political stability, economic development, cultural traditions and other considerations which vary among countries” (R. Toivonen, PTT)

3. Forest legislation and forest policy3. Forest legislation and forest policy

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Forest Legislation in FinlandForest Legislation in Finland

framework for forest owners’ decision-making forest owners need to be involved in

development and decision-making processes The Forest Act (1997):

wood production and biodiversity have equal importance

utilisation of forest resources written in the law - important for forest owners

National Forest Programme 2010 (update 2007) economic, ecological, social sustainability goals

Has developed from sustainable wood production to sustainable forest management

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Development of Finnish Forest Policy in the 1990sDevelopment of Finnish Forest Policy in the 1990s

Environmental Programme for Forestry (1994) and its monitoring (1995-97)

Environmentally friendlier forest management recommendations (1994)

new Forest and Park Service Act (1994) National Criteria & Indicators for Sustainable Forest Management

(1995) based on the Pan- European process Old-growth Forest Protection Programme (1996) new Forest Act on Forest Centres (1996) new Forest Act (1997) new Act on the Financing of Sustainable Forest Management

(1997) new Nature Conservation Act (1997) Development of Forest Certification (1997-1998) new Act on Forest Management Associations (1999) National Forest Programme 2010 (1999)

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Act on Financing of Sustainable ForestryAct on Financing of Sustainable Forestry

sustainability of timber production andvitality of forests: forest regeneration (not following

conventional final cutting) prescribed burning tending of young forest stand harvesting of energy wood remedial forest fertilisation remedial ditching forest road construction public support 62 million euros yearly

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maintenance of biological diversity of

forests : if maintenance of biological diversity is

taken into account more extensively than what is provided in the Forest Act

if additional costs or economic losses related to the maintenance of biological diversity are significant (environmental aid)

contract between the forest owner and Forest Centre

compensation for forest owner

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Forest ecosystem management: management and restoration of the

important habitats landscape management other significant undertakings

emphasising ecosystem management, multiple use of forests, landscape, cultural and recreational values

based on contract between the forest owner and regional Forest Centre

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Family forestry manage for both wood production and biodiversityFamily forestry manage for both wood production and biodiversity

Forest owners invest 50-65 million € per year in forest environment and biodiversity.

Forest Act, §10: Habitats of special importance for biodiversity shall be preserved

100 000 sites in family forests 60 000 ha not included in the statistics on protected area

Evaluation of environmental quality of forest operation 2003: 94 % excellent or good

4. Forest protection4. Forest protection

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Three ways of forest nature protectionThree ways of forest nature protection

1. Nature conservation programs ”The old way”

2. New voluntary based conservation methods

3. ensuring the preservation of biodiversity in commercially managed forests

Some lessons learned from the NATURA process: Are the NATURA areas been chosen in right way The importance of transparency is high Even one ”wrong” species may have great

influence

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Voluntary forest protectionVoluntary forest protection

METSO, The Forest Biodiversity Programme for Southern Finland 2003-2007, is experimenting with several new methods based on voluntary action by the forest owner

forest owners can offer their forests for protection in natural value trading;

authorities can put out competitive tenders to forest owners for rare biotopes;

forest owners can create joint action networks with local stakeholders to protect biodiversity

the State supports projects financially; protected areas are returned to their natural state in order to

increase natural values by, for exampleincreasing dead woodprescribed burning of forestsblocking existing drains on mires. forest owners can offer

their forests for protection in natural value trading;

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The Forest Biodiversity Programme for Southern Finland METSO

The Forest Biodiversity Programme for Southern Finland METSO

Responds to the forest owners' values and priorities, attitudes of the Forest Owners towards Forest Conservation are positive if:

the ownership remainsvoluntaryfully compensatedno “grey areas“ are formed in commercial forests the work done is appreciated

corresponds to the MTK's Forest Biodiversity Action Plan has gained forest owners' support and active

participation, there is no way back to old methods,

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Acceptability of Conservation Important factors to acceptability of conservation contract

Acceptability of Conservation Important factors to acceptability of conservation contract

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42

47

57

62

65

69

74

78

78

80

82

92

0 20 40 60 80 100

Importance on national scale

Local employment effect

Achieve the goal of conservation

Initiator of conservation project

Distribution of compensation over time

Continuation of contract

Restrictions on forest use

Duration of contract

Form of compensation

Cancellation policy

Determination of compensation

Amount of compensation

Property rights and sovereignty

% of respondents

Source: Paula Horne/Finnish Forest Research Institute

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Agreements and laws for safeguarding biodiversity Agreements and laws for safeguarding biodiversity

Constitution: responsibility for nature and its biodiversity, the environment, and cultural heritage lies with every citizen.

Forest Act applies to managed forests, requires ecological, social and economic

sustainability and specifies especially important habitats whose natural values must not be weakened.

Nature Conservation Act applies to strictly protected areas.EU regulations Natura 2000 protected area network based on the Habitats and Birds

Directives.Natural management methods for managed forests are incorporated

in the Forest Act; recommendations for good forest practices; forest certification

95 percent of Finland’s forests have been certified; landscape ecological planning and natural resource planning in State

forests and regional multipurpose planning in forests belonging to forest companies.

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Effect of additional protection of forests in southern FinlandEffect of additional protection of forests in southern Finland

Studies reveal that forest protection reduces both harvesting and jobs. Sawlogs harvesting in general is reduced more than

pulpwood harvesting. Problems would especially increase for small and

medium sized sawmills. Because protection in practice is never dispersed

evenly over an area to be appraised, the problems are all brought to bear on certain mills.

A harvesting reduction of one million cubic metres would mean the loss of 1,600 jobs overall. If no timber is available to replace this, the loss of one forestry job due to protection would lead to the loss of three jobs in the forest industry and three other jobs elsewhere in the community.

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Voluntary forest protectionVoluntary forest protection

Voluntary protection would considerably relieve the adverse effects on the economy and employment. For example, the loss of jobs would be reduced by one

half.

The effects of voluntary protection on the economy and employment are generally less harmful than with compulsory protection.

Voluntary protection is more cost-effective.

Citizens and forest owners prefer voluntary protection.

Taxpayers are willing to pay for it.

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Public interests – common goodsPublic interests – common goods

Land Use Planning Impacts on Forest Uses

Forests Protect Water Systems Soil Protection Is Part Of Forest

Management Forests are Efficient Carbon Sinks

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Family forests are open to all – everyman’s righteFamily forests are open to all – everyman’s righte

Everyman.s rights mean that everyone is entitled to enjoy the bounties of nature, including picking of wild berries and wild mushrooms irrespective of whose land they happen to grow on.

Forest owners provide this opportunity free of charge.

There are two fundamental preconditions for making use of everyman.s rights:

– they need to be occasional or temporary – must not cause nuisance or damage.

Everyman.s rights are so-called yielding rights. – One cannot demand that a landowner should restrict

his legal operation in his forests, e.g. felling operationsand forest regeneration, for the sake everyman.s rights.

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Something to rememberSomething to remember

I would like You to remember two fine examples from Finland

1. Sustainable family forestry and the role of forest management associations

2. Voluntary based forest conservation - METSO

Thank YouThank You

Documents

Forest management in Finland