Approved by MTK’s Forest Commission, 21 Nov. 2003

MTK’s Basic Programme / Volition 2010:

The use of wood as a raw material in energy production has multiplied ten times by reference to the year 2000. The principles of the forest energy strategy are intended to promote the operations of the forest owners’ organization in increasing the use of wood as energy.

Goal

The goal for the forest energy strategy of the Central Union of Agricultural Producers and Forest Owners (MTK) has been set as the annual usage of five million solid cubic metres (approx. 12 million i-m3) of energy wood by the year 2010. The amount is one third of the annual technically harvestable amount of forest energy. In addition to this, the use of traditional firewood and processed products such as pellets shall have to be increased.

Forest owners require from these developing markets that forest energy as a distinct timber assortment is priced according to its functional value. With respect to forest energy accessibility, corresponding demand and surety of delivery are regarded as self-evident in energy policy-based decision-making.

As it grows, a forest stand binds carbon, and it is a renewable resource which emphasizes the environmental attributes of forest energy. Raising its share in proportion to fossil fuels reduces energy production-related greenhouse emissions. Particularly positive climatic impact is derived from the energy use of wood, which emerges clearly in the international climate agreement and emissions trading.

Realization of goal

Energy wood represents its own timber assortment and its unit price is composed in the manner of pulpwood and logs. For forest energy, wood is obtained which is best suited for this processing application. MTK is involved in developing a pricing system which ensures compensation to forest owners in keeping with its functional value. Pricing is being developed in accordance with the market conditions and economic competitive capability of forest energy utilization, with respect to which it is necessary to give up gratuitous transfer completely. Viable pricing exerts a positive impact on forest energy-based commerce. MTK is giving emphasis in the general media to the development of markets.

Societal measures

Forest energy strategy also comprises the development of modes of support and terms of financing by the community. Various community interests have been actively involved in promoting the energy-related use of wood. In Finland’s energy supply, decisive additional use of wood takes place in large thermal centres, in addition to power plants producing heat and electricity. In these, peat as a combination fuel is assuring fuel acquisition.

From the perspective of both forest owners and society, ecological and social sustainability has its own importance. These values include the foundations of silviculture and the elevation of domestic content in energy supply. In addition, the preservation of jobs amongst the rural population is highlighted, and by creating new ones it is possible to assure the vitality of the countryside. On their part, rural jobs guarantee sustainable wood production.

Energy wood harvesting operations have been brought to a profitable level by means of public incentives. This necessitates, however, the adequacy of funds in the years to come in accordance with the Act on the Financing of Sustainable Forestry. The balanced development of energy supply by subsidizing renewable energy sources requires added State investment as well as collaboration amongst the administrative fields.

Effective instruments to promote the utilization of forest energy rest in the handling of forest tax, support for the acquisition chain and energy utility investments, provision for research and development activities in the field, and inquiry into energy-related taxation.