In a rare joint move, Finland and Sweden have written to European Commission President Ursula von der Leyen urging greater flexibility in EU climate legislation governing land use and forestry. The letter, signed by Finnish Prime Minister Petteri Orpo and Swedish Prime Minister Ulf Kristersson, highlights what the leaders call “dire consequences” for their economies if current obligations under the EU’s Land Use, Land-Use Change and Forestry (LULUCF) Regulation are not adjusted.
Forestry is an economic cornerstone for both Nordic countries, accounting for nearly 20 percent of Finland’s exports and more than 10 percent of Sweden’s. The sector supports over 200,000 jobs across the two countries. Beyond economics, the letter stresses the climate role of forests, from absorbing carbon dioxide to providing renewable alternatives to fossil-based products.
Yet shifting forest age structures, climate-driven disruptions such as droughts and pests, and surging demand for domestic wood after Russia’s invasion of Ukraine have eroded growth. As a result, both governments admit they are on track to miss their commitments under the first two LULUCF compliance periods.
“A much decreased harvest would entail dire consequences for our economies as well as labour markets,” the letter warns, adding that it would disrupt timber and biomass supplies across the EU. Stockholm and Helsinki call for more realistic accounting, including recognition of substitution effects when forest products replace fossil-based materials, and greater use of flexibilities in the regulation.
Looking ahead, the Nordic leaders reaffirm support for a 90 percent EU-wide emissions reduction target by 2040, provided uncertainties in land use and new technologies are adequately factored in. “Climate action and competitiveness are not opposing goals – they are complementary,” Orpo and Kristersson write, framing forestry as a pillar of Europe’s green transition and bioeconomy.
The intervention signals growing pressure within the EU to recalibrate climate rules in sectors heavily exposed to natural variability and geopolitics, as Brussels prepares to finalize its 2040 targets.
Source: Government of Finland & Government of Sweden, Letter from Sweden and Finland to President von der Leyen, 15 Sept 2025
