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Finland’s economy has long been rooted in its forests, but in 2026, the sector sits at the intersection of energy transition, environmental regulation, and global market uncertainty. Source: ResourceWise A glance at Finland’s real-time energy production reveals a system increasingly diversified across nuclear, hydro, and renewables. Yet beneath this transition lies a quieter but equally critical story: the evolving role of forestry in powering both industry and energy systems. Finland’s energy picture depends heavily on whether we look at electricity output or total primary energy consumption. In electricity, nuclear power provides a stable base of about 4,200 MW, while hydropower has around 3,200 MW of capacity but often produces closer to 1,500 MW, depending on rainfall and snowmelt. Wind capacity has grown rapidly to about 8,000 MW, but actual output varies sharply, creating grid-balancing challenges during swings between over- and undercapacity. The broader energy balance tells a different story. When heat, fuels, and industrial energy are included, bioenergy remains Finland’s largest energy source, at roughly 135 TWh, ahead of nuclear energy at about 105 TWh. Oil remains significant at around 70 TWh, while hydro and wind contribute roughly 25 TWh and 20 TWh, respectively. This matters for forestry because forest-based energy, wood fuels, black liquor, and residues, remains central to Finland’s energy system, even as its role is slowly declining due to electrification, electric boilers, heat pumps, and growth in wind and nuclear power. The Finnish forestry industry is currently navigating a cyclical downturn: Industrial roundwood purchases are down roughly 20% year-on-year Pulpwood prices have fallen sharply—by up to 39% over eight months Sawn timber production dropped 20% in early 2026 due to weak demand and weather disruptions   This correction follows a period of overheated markets and is now compounded by subdued global demand particularly in Europe and China. Pulp markets remain soft, with producers curtailing output and delaying investments in new capacity. At the same time, logistics challenges such as rising fuel costs and disruptions to global shipping routes are increasing costs for Finland’s export-heavy forest industry. With freight prices surging and supply chains strained, margins across the value chain are under pressure. Environmental regulation is becoming a defining force in Finnish forestry. A new government proposal would restrict logging during birds’ nesting seasons, introducing legally binding requirements for biodiversity protection. Logging could be limited for several months annually in sensitive habitats, potentially tightening timber supply. At the same time: Environmental support funding is being reduced and more narrowly targeted Over 1 million hectares of private forest are under “silent conservation,” reflecting voluntary biodiversity protection by landowners   These developments highlight a structural shift: forestry is no longer judged solely on output, but increasingly on ecological impact, carbon balance, and amenity values. Despite headwinds, the Finnish forestry sector continues to demonstrate resilience and adaptability: Companies like Westas have improved profitability through operational efficiency and targeted investments. Many private sawmill companies have modernized their facilities and increased capacity simultaneously. AI and digital tools are transforming forest management, enabling more precise planning and damage detection Meanwhile, state forestry operator Metsähallitus reported record financial performance in 2025 while expanding conservation efforts and renewable energy development. This reflects a broader trend: integrating commercial forestry with sustainability and land-use diversification. Finland’s forestry industry is entering a new phase less defined by volume growth and more by efficiency, sustainability, and integration into the broader bioeconomy. Key trends to watch include: Continued pressure on pulp markets and short fiber pulp producers and limited new capacity investments amid increasing costs Increasing regulatory constraints tied to biodiversity and climate goals Declining role of wood-based fuels in energy production Growing importance of technology and data in forest management   In many ways, Finland’s forests remain as vital as ever, but their role is changing. No longer just a source of raw materials, they are becoming a strategic asset in climate policy, energy systems, and sustainable land use.

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Södra is taking the next step in its innovation journey with the launch of Södra blue S – a new type of paper pulp that combines softwood fibres with oat hulls from Swedish grain processing. Source: Timberbiz The initiative is a concrete example of how Södra explores new solutions while using resources more efficiently to create value and contribute to a more circular future. Södra blue S has been developed to meet the growing demand for renewable materials and more circular use of resources. Drawing on its extensive experience in forest-based raw materials and more than 10 years of developing technologies to utilise residual streams from other value chains, Södra is now broadening its fibre base without com-promising on quality. The new process makes it possible to combine forest fibres and agrofibres directly in the pulp process, enabling Södra to increase yield and improve strength properties. Pilot trials show that blue S delivers enhanced strength properties and good runnability in paper production. Several trials have been conducted at Södra Cell Värö with very positive results. Towards the end of 2025, the conditions were established to enable campaign-based volumes. “Södra blue S demonstrates what happens when we challenge our own assumptions. By combining forest raw materials with oat hulls from a local partner such as Berte Qvarn, we increase resource efficiency and create value across two key basic industries. The results show that the technology works and that the pulp is of high quality. This is a concrete step towards the circular fibre solutions of the future,” said Annica Ahlstedt Larsson, Head of The oat hulls used to produce blue S come from the local food producer Berte Qvarn, located just south of Värö. Their local origin means shorter transport distances while making raw material flows more resilient by building on industries in the surrounding region. The collaboration also creates new value between two industries that have traditionally operated side by side – forestry and agriculture – as a by-product from oat production is now given a clear function in paper pulp. Oat hulls, which previously had limited areas of use, are thus transformed into a valuable raw material that contributes to increased re-source efficiency and opens up new possibilities for future fibre solutions. “This collaboration shows what becomes possible when we look beyond our own value chains. By combining expertise, local residual streams and a shared ambition to develop new solutions, we take important steps towards the circular systems of the future. Together with Södra, we are exploring new ways of creating value from existing resources and contributing to long-term sustainable development,” said Olof Stenström, CEO, Berte Qvarn.

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The Construction Industry Training Board (CITB) in the UK is urging more women to consider a career in construction as the latest figures reveal an increasing number of women are pursuing construction training. Source: Timberbiz Using statistics from the Department for Education, CITB has found that the number of women starting construction apprenticeships has jumped from 1,450 in 2018 to 2,410 in 2025. During the same period, the number of women completing a construction apprenticeship increased from 340 to 910. While the growing increase of women starting apprenticeships in the construction industry and completing them is a positive outlook on building the future, there is a push for the introduction of policies that are aimed at promoting gender equality to further shrink the gender and skills gap. CITB funds training and supports work placements through its Onsite Experience hubs, creating a talent pipeline to meet the needs of local construction employers and enabling construction career opportunities for people from local communities. As part of its commission, CITB works with The Skills Centre, which is running lots of activities throughout March to encourage women into the industry. As a result of CITB’s investment in The Skills Centre’s Onsite Experience hub, 182 women have been trained to secure employment in construction. Recently, The Women and Work All-Party Parliamentary Group (APPG) released the ‘Women and Work APPG Report 2025′ focusing on strategies to break down barriers that stop women from get-ting into construction. With significant demand for skilled workers in the construction industry, as shown by CITB’s Construction Workforce Outlook that highlights the need for 47,000 additional workers every year to meet demand, diversity in construction should not be viewed as a challenge to be managed, but a solution to the skills gap. “It’s really encouraging to see the continued increase of women starting and completing construction apprenticeships,” Deb Madden, Executive Director, Customer Engagement and Operations at CITB said. “It’s important that, as an industry, we retain these women and ensure their apprenticeships translate into long-term, secure job opportunities. “Across the industry, we need to establish a culture that ensures it seeks to understand and meet the needs of people of all backgrounds. We need employers to establish clear and accessible pathways for a diverse range of candidates to learn and progress, making it more attractive for them to stay in the industry, and ensure all employees have a good work-life balance.”

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Nearly $30,000 has been spent cleaning up a single illegal oil dumping incident in Tasmania’s north-west, as the state’s forestry agency warns hazardous waste is increasingly being abandoned in public production forests. Pulse Tasmania Sustainable Timber Tasmania says petrochemicals, asbestos, tyres, vehicles and clinical waste are among materials being dumped on permanent timber production zone land across the state. The recent oil dumping incident triggered a major clean-up, with crews using absorbent materials to stop the spill spreading into soils, vegetation and drainage lines. Over the past three financial years, illegal dumping has cost the agency an average of $39,000 a year to inspect, manage and remove. The single oil incident accounted for almost $30,000 of clean-up costs on its own. Suzette Weeding, general manager of conservation and land management at Sustainable Timber Tasmania, said the dumping was draining resources. “Illegal dumping places a growing strain on Tasmania’s public forests and the resources required to manage them,” Ms Weeding said. “While Sustainable Timber Tasmania already undertakes significant effort each year to respond to unlawful waste disposal, the recent oil dumping incident has materially increased that impact.” Ms Weeding said the cost was not just financial. “These incidents pose a serious risk to forest ecosystems, waterways and wildlife,” she said. The agency said each clean-up required specialist resources and pulled staff away from planned forest management work. Sustainable Timber Tasmania is working with Tasmania Police, the Environmental Protection Authority (EPA) and other agencies to investigate incidents and deter further offending.

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