Energy Reports (Nov 2022)
Future of forest industry in carbon-neutral reality: Finnish and Swedish visions
Abstract
The forest industry is a significant emitter of CO2 and thus it needs to transform toward a more sustainable operation in order to contribute to tackling climate change. This paper looks at the progress, tools, possibilities, and barriers of Finnish and Swedish forest industries in achieving deep decarbonization. Finland and Sweden have set ambitious national targets to reach net negative greenhouse gas emissions. The role of the forest industry in reaching national targets in these countries remains unclear even if significant fossil CO2 emission reduction and efficiency improvement has occurred. If the forest industries in these countries fulfill their planned future visions, their contribution to meeting the targets will be substantial. This study identified the largest CO2 emitting sectors in the forest industry. They are for both countries, arranged by size, transport including non-road mobile machinery, on-site energy production, fossil fuel use in processes (lime kilns and dryers), and purchased electricity. Viable decarbonization measures exist for key fossil CO2 emissions sources, but several technical, economic, and political barriers are hindering their implementation. Fuel switching from fossil energy sources to bio-based alternatives is the main tool in the decarbonization of the forest sector in both countries, but also electrification of e.g. transport, provides emission reduction opportunities. The forest industry has a high and sustainable potential to become carbon-negative by investing in bioenergy with carbon capture and storage (BECCS) but achieving net-zero emissions might not be realistic without changes in policies and suitable incentives.