Forest Products Industry

Furniture and wood-based articles placed on the EU market will have to meet a formaldehyde emission limit of 0.062 mg/m³ after 6 August 2026 under Commission Regulation (EU) 2023/1464. Source: Fordaq The regulation amends Annex XVII of REACH by adding Entry 77 for formaldehyde and formaldehyde-releasing substances. Under the new entry, articles may not be placed on the EU market after 6 August 2026 if, under the specified test conditions, the concentration of formaldehyde released from those articles exceeds 0.062 mg/m³ for furniture and wood-based articles. For articles other than furniture and wood-based articles, the limit is 0.080 mg/m³. The European Commission states that formaldehyde-based resins are used in the production of a wide variety of articles and that their primary use is in wood-based panels, where they act as a bonding agent for wood particles. The regulation also refers to other wood-based products, including furniture and flooring. In the regulation, the Commission says wood-based panels, articles made of wood-based panels or other wood-based articles, and furniture containing wood or other materials are among the main sources of formaldehyde emissions in indoor air where formaldehyde other than naturally occurring formaldehyde is used during production. Appendix 14 sets the reference conditions for measuring formaldehyde released into indoor air from covered articles. The regulation specifies test chamber conditions including a temperature of 23 ± 0.5°C, relative humidity of 45 ± 3%, a loading factor of 1 ± 0.02 m²/m³ and an air exchange rate of 1 ± 0.05 h-1. The steady-state concentration measured in the test chamber is used to verify compliance with the formaldehyde limit. The restriction does not apply to articles in which formaldehyde or formaldehyde-releasing substances are exclusively naturally present in the materials from which the articles are produced. The regulation also lists exemptions for articles exclusively for outdoor use, certain construction articles used outside the building shell and vapour barrier, articles exclusively for industrial or professional use unless they lead to exposure of the general public, food-contact articles, and second-hand articles.

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Metsa has opened a new packaging design studio in Milan, Italy to accelerate packaging development especially in its key European markets. The new studio enables earlier and closer collaboration between Metsä Board and its customers, allowing joint testing and refinement to bring real-world-ready packaging solutions faster. Source: Timberbiz Packaging is no longer just about protection and logistics. Brands are under increasing pressure to reduce material use, replace fossil-based materials, meet tightening regulations and still deliver strong shelf impact. At the same time, expectations for speed have fundamentally changed: solutions must be developed faster, with greater certainty around performance, recyclability and compliance. Metsä Board is addressing this shift with this new design studio in Milan bringing together design, material expertise and data-driven insights. It enables customers to develop packaging solutions that are more efficient and fit to their requirements. “Milan offers a unique combination of a strong packaging ecosystem and a world-class design environment. Being there allows us to work more closely with our customers and strengthen collaboration across key European markets,” said Erja Hyrsky, SVP Commercial Operations. By combining AI-supported design, simulation possibilities and material expertise, solutions can be explored and tested much earlier in the process, reducing uncertainty, accelerating decision-making and shortening development cycles. “Our customers don’t just need new packaging ideas – they need solutions that are validated for actual use conditions, and they need them faster than ever. By combining design, materials and data, we can move from concept to validated solution much earlier, with greater confidence,” said Erja Hyrsky. The Milan studio is built for a new way of working. Instead of sequential development, design, materials and performance are advanced in parallel, making it possible to improve material efficiency while maintaining performance requirements. “Instead of developing solutions in isolation, we can test and refine them together, making sure they are ready for market introduction much earlier,” said Ilkka Harju, Packaging Services Director. “For brands in segments such as food, pharma and beauty, where packaging plays a critical role both functionally and commercially, this integrated approach is becoming essential.”

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The Forest Stewardship Council (FSC) has secured substantial EU LIFE funding for a €6.7 million project, including €4 million from the EU LIFE program, together with a broad range of project partners. Source: Timberbiz The FSC EU LIFE FIBRA project will explore more efficient and responsible use of fibre-based materials in Europe, building on the credibility and robustness of FSC’s certification system. It will look at how FSC can strengthen its existing recycling solutions, support potential circular business models such as reuse, repair, and take-back, examine how agricultural waste streams may play a role in the FSC system, and support companies and public buyers in making more responsible material choices. Building on FSC’s existing systems, standards and core mission of promoting responsible forest stewardship, the project will strengthen FSC’s role in a changing market. “As the way we use materials changes, FSC is evolving with it,” said Subhra Bhattacharjee, Director General of FSC. “This project will define our role in a future market; from the way materials are sourced to the way they are kept in circulation over time.” FSC has been championing forest regeneration for over 30 years and with the introduction of the FSC RECYCLED label 15 years ago FSC has been directly supporting recycling too. But recycling and renewable fibres aren’t enough. As demand for renewable materials grows across Europe, industries in packaging, construction, furniture, and other sectors are turning to forest-based fibres instead of fossil-based resources to cut carbon emissions and support climate objectives. However, relying solely on virgin forest resources is not a sustainable long-term solution. In parallel, companies are facing increasing regulatory requirements under EU sustainability legislation, including expectations around resource efficiency, circularity, and traceability. Thanks to the EU LIFE program, FSC can now scale its work on exploring solutions in a broad and structured way. The FSC EU LIFE FIBRA project FSC’s existing systems are designed for linear supply chains and do not adequately capture circular flows. The project will develop and pilot tools, guidance, and verification approaches for how to enable circularity in FSC and focus on exploring four key areas: potential circular business models in FSC Chain of Custody, including piloting a Circular Economy reporting module support increased uptake of recycled materials including market guidance and public procurement support explore how to potentially integrate alternative fibre sources such as agricultural residues from certified sources into FSC certified supply chains exploring potential approaches to cascading use of fibres supported by improved traceability and digital integration.   Together, these activities are designed to be fit for FSC’s existing certification system and provide practical, scalable support for companies adapting to evolving market and regulatory requirements. “This funding allows us to scale work that we have been laying the groundwork for over the past three years,” said Loa Dalgaard Worm, Global Lead of the FSC Circularity Hub. “It is important to me that we develop solutions that are fit for market demand and deliver real impact on the ground, without reinventing what FSC stands for: ensuring that the true value of forests for nature, the economy, and society is recognized.” The project will be implemented across eight European countries – Denmark, Sweden, Finland, Germany, Austria, the Netherlands, Italy, and France – with partners from industry, academia, and civil society. The project consortium behind the project consists of FSC International, FSC Denmark, FSC Sweden, FSC Finland, FSC Germany, FSC Netherlands, FSC Italy, FSC France, Aarhus University, University of Southern Denmark, Circle Economy, ECOS, World Business Council for Sustainable Development, and Ellen MacArthur Foundation.

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Australian Forest Products Association (AFPA) welcomed the new Private Members’ Bill, introduced by Federal Member for Lyne Alison Penfold MP, aimed at safeguarding the integrity and transparency of Australia’s carbon credit scheme. Source: Timberbiz AFPA acting CEO Richard Hyett said maintaining confidence and credibility in the ACCU scheme was essential for supporting investment in genuine emissions reduction projects and Australia’s transition to net zero. Ms Penfold’s proposed Carbon Credits (Carbon Farming Initiative) Amendment Bill 2026 proposes simple changes to improve transparency and integrity. This includes requiring the Federal Minister to only make an ACCU method if it’s fully consistent with the Objects of the Act, and if all relevant science and information to develop the method is released for public consultation to allow proper scrutiny. “Our ACCU scheme was designed to encourage real carbon abatement and high-integrity environmental outcomes, and it’s important the scheme remains focused on delivering genuine emissions reductions rather than being used to retrospectively fund government policy decisions,” Mr Hyett said. The proposal follows the NSW Government’s plan to develop an Improved Native Forest Management Method (INFM), which is currently being considered by the Commonwealth’s Emissions Reduction Assurance Committee. “In a recent submission, we have advocated for strong governance, transparency and safeguards across Australia’s carbon credit framework and have previously raised concerns about maintaining public confidence in the scheme,” Mr Hyett said. “Industry applauds and welcomes Ms Penfold’s Private Members’ Bill. Carbon credit methodologies must be evidence-based, transparent and support practical emissions reduction opportunities across productive industries, including sustainable forestry. It’s also essential to drive opportunities to expand the ACCU scheme’s participation through productive abatement methods including through the built environment. “We look forward to continuing to work with governments and industry stakeholders to ensure the ACCU scheme remains credible, supports regional Australia and delivers lasting environmental outcomes.”

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For New Zealand brokers placing forestry, logging and heavy plant risks, the most important test of specialist cover is not just what is on the slip. It is also the one that arrives months later, when a harvester burns out on a remote skid site or a crane topples on a steep East Coast forestry road and the client discovers what their policy is actually worth. Source: Insurance Business That distinction between capacity that looks strong at placement and capacity that performs at claim time is where specialist insurance either proves itself or quietly fails. The point has been sharpened across the Tasman by ARTes Specialty, a London-based managing general agent that has spent the past two years building a plant and equipment book in the Australian market. ARTes has launched three products into Australia – commercial loggers, plant and equipment, and, most recently, an integrated crane and rigging policy – all backed by Lloyd’s capacity, distributed locally and with claims handled in-country. Chris Thomas CEO of ARTes Specialty, has been unusually blunt about the limits of the paper itself. “Capacity on its own isn’t enough,” he said of the insurer’s Australian expansion. It is a striking admission from a business that sells capacity, but it speaks to a scepticism many brokers carry quietly. Two markets can offer near-identical security, wording and price, and none of that paperwork reveals whether anyone in the country understands a rigging contract, can inspect a damaged crawler crane, or can move a claim along before a contractor’s cash flow collapses. “Brokers and clients need confidence that there are experienced people on the ground who understand the local market, can respond quickly and will be there when a claim occurs,” Thomas said. For New Zealand, the argument lands squarely on forestry. Forestry and wood products remain among the country’s largest export earners, with revenue forecast to rise about 2% to NZ$6.3 billion in the year to 30 June 2026, according to the Ministry for Primary Industries forestry and wood-processing data. The sector supports a workforce of more than 42,000 people, on Treasury’s medium-term outlook for forestry exports, and runs on high-value, hard-to-replace machinery operating on unsealed, steep terrain in regions such as Gisborne, Northland and Southland – exactly the conditions where a single loss can sideline a contractor and where recovery is slow, costly and specialised. The gap between cover on paper and cover in practice is not hypothetical here. A North Island forestry business was left NZ$85,000 out of pocket after an insurer declined a Cyclone Gabrielle–related claim, in a dispute that turned on recovery wording, machinery access and a requirement for written consent before equipment was moved, as detailed in this recent ruling on a declined Cyclone Gabrielle forestry claim. For brokers with rural and forestry portfolios, the case is a reminder that the decisive questions are often buried in how a policy responds after the event, not in the headline limit. That points to a sharper set of questions at placement. Where does claims adjusting actually happen, and who does it? Does the person assessing the loss understand the equipment and the contractual obligations the client operates under? Can the insurer respond inside the client’s operating timeframe, or will a remote loss sit in a queue while the business haemorrhages money? New Zealand underwriters working in the space make much the same point. Matt Ziegler, head of pacific agencies at Underwriting Agencies of New Zealand (UANZ), whose Auckland-based firm covers cranes, excavators and forestry equipment, argues that service – not price – is now the differentiator in a softening market. “It’s 100% the service game at the moment,” he said when speaking to a panel of specialist underwriters on soft-market pressures, advising brokers to compete on claims handling, wording and value. The context matters because capacity itself is no longer scarce. Specialist underwriting agencies have proliferated in New Zealand, holding appetite for precisely the harder-to-place risks that mainstream insurers approach cautiously. As the New Zealand Underwriting Agencies Council set out at its recent Christchurch expo on the evolving risk market, the real challenge for brokers is no longer finding capacity but knowing where to look and, by extension, which providers will still be answering the phone when a complex loss lands. For a generalist risk, these distinctions may be marginal. For a logging contractor or crane operator whose entire business rests on a handful of high-value machines, they are the difference between a claim that gets paid and a claim that gets argued. As more overseas and Lloyd’s-backed capacity targets Australasia’s underserved specialist sectors, the temptation is to treat capacity as a commodity and place on price and security alone. The uncomfortable takeaway for brokers is the same on both sides of the Tasman: The time to test whether specialist capacity is real is before the loss, not after.

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