Wedoany.com Report on Mar 19th, Two major Swedish forestry giants, SCA and Holmen, recently jointly called on the European Union to revise its bioeconomy strategy, emphasizing the need to strengthen commitments to the growth of sustainable timber supply. They warned that the current policy direction could undermine Europe's green transition process.

In their latest statement, the CEOs of both companies pointed out that the European Commission's updated bioeconomy strategy in November last year underestimated the economic impact of the timber industry. Wood-based value chains account for approximately 7% of the EU's total economic value and support around 17 million jobs, but the strategy overlooked these figures due to its focus on upstream production.

The executives stated that the official EU data showing €240 billion in added value and less than 3 million jobs represent only a fraction of the industry's actual contribution. They questioned the strategy's approach of reducing reliance on primary biomass in favor of recycling and secondary raw materials.

While supporting the principles of a circular economy, the two executives argued that relying solely on secondary materials would struggle to meet the growing demand for renewable alternatives to fossil-based products. They advocated for allowing and encouraging sustainably managed forests to increase their output.

SCA and Holmen also suggested reviewing existing EU regulations, including provisions related to land use change and nature restoration, stating that these rules could restrict supply and impact the EU's competitiveness and climate goals.

The two companies cited the Nordic forestry model as an example, demonstrating that active forest management, conservation measures, and increased harvesting can proceed in parallel. Sweden and its neighboring countries have doubled their sustainable timber production over the past few decades while simultaneously increasing forest carbon stocks.

The executives concluded that without a science-based commitment to expanding timber supply, the EU's bioeconomy goals would be difficult to achieve. Headquartered in Sundsvall, SCA is Europe's largest private forest owner, with net sales of SEK 20 billion in 2025; Holmen, listed on Nasdaq Stockholm, reported net sales of SEK 22 billion for the same period.