Today, I’m joined by Peter Holmgren, Founder and Senior Advisor at FutureVistas, former Head of Climate Change at the FAO, and former Director General of CIFOR. In this conversation, Peter unpacks the growing debate surrounding the EU’s Land Use, Land Use Change and Forestry (LULUCF) regulation and its implications for forest management, timber production, and climate policy. We discuss the scientific controversies behind forest carbon accounting, the risks of short-term climate targets, and why reducing timber harvests may not deliver the climate benefits policymakers expect. Peter explains concepts such as leakage, substitution, and additionality, and shares his perspective on how current policy frameworks could affect forest owners, processors, and investors. We also explore the role of wood-based products in reducing society’s dependence on fossil-based materials and why production forestry remains central to Europe’s long-term sustainability and competitiveness.

Quote 1: "We need to move the forest out of the environment corner and put it as an asset for society as a whole, and raise the issues to that level."

Quote 2: "If we talk about investments and value adding to the produce of the forests, then it's interesting that only less than five percent of the value is realized when the wood is harvested and put by roadside, and only ten percent is realized after the primary forest industry. Ninety percent of the value added is happening after that when a myriad of different products are being produced, marketed, sold and used by Europeans... One way to put it is that every European uses forest products every day throughout their lives, and that's where the real economic importance of the forest is visible."

0:12 Introduction and guest welcome
1:08 Peter Holmgren's forestry career and current work
2:18 What LULUCF means and why it matters
3:47 Is LULUCF a European or global issue?
5:40 Where policymakers have gone wrong
7:45 Scientific controversies around forest harvest and carbon neutrality
11:04 Short-term climate targets versus long-term forest management
13:10 Swedish example of reduced harvest and alternative management
16:06 Overview of the EU climate law and LULUCF regulation
20:57 Why reducing harvest is seen as the main tool to meet targets
22:04 Climate goals versus conservation goals
23:41 Which EU member states are struggling with LULUCF targets
25:25 Impacts on private forest landowners
29:36 Leakage, processing facilities, and competitiveness
30:42 What the regulation means for forest investors
33:05 Which countries are pushing for production forestry
34:46 How stakeholders can influence policy
36:43 Forests as a broader economic asset
38:24 Peter's current work with industry and policy
40:41 Do we have a sustainability problem in European forestry?
42:43 Substitution and reducing fossil dependence
44:48 Packaging, paper products, and climate benefits
46:06 Using every part of the tree and integrated value chains
48:01 Bio-based fuels and climate policy incentives
50:15 Advice for new forest investors
51:44 Where to learn more and closing remarks

Founding Director and Host: Shauna Matkovich - The ForestLink

Producer and Editor: Magdalena Laas - Unscripted Creatives

Nature by MaxKoMusic/Soundcloud

Sopwell Woodlands and Scohaboy Bog SAC, Cloughjordan, Co Tipperary, IRELAND by wild_rumpus/Soundcloud

Ambient Documentary by Sound Guru (Pixabay)

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