Demand for timber is likely to be higher than in the old days, while supply will be lower. This is because the Green Deal fundamentally changes the structure of the national economy, envisaging that wood must be used much more as a material. At the same time, the Green Deal stipulates that more and more land must be allocated to increasing natural values, which will result in a decrease in the supply of wood products. Future prices will be lower than what we experienced this summer, but higher than they were at the beginning of 2020.

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In theory, the Green Deal is an extremely correct concept. Because climate change and the massive volumes of emissions driven by the old way of life and the economy that sustains it are real. Therefore, Europe, where a sufficiently affluent society can afford to lose money in order to develop and adapt to the challenge of climate change, has made the decision to develop technologies that we will then sell to the whole world. And in doing so, we will once again become one of the most significant places in the global economy. As far as that goes, this ideology is correct.

But real life is different. Investments are needed. This means that we take money out of our own wallets and invest it in some new process, where it is unclear when, or even if, it will pay off. Has Latvia developed a single new technology? Denmark has become an exporter of wind energy technology and is making good money. Europe as a whole is a winner there, but Latvia has only been one of those who have had to pay extra.