Events of the past decade have significantly reshaped perceptions of resource availability in Europe. The supply-chain disruptions experienced during the pandemic, Russia's aggressive and brutal invasion of Ukraine, the energy crisis, growing global competition for raw materials and increasingly ambitious climate policy targets have all created a new reality. Within it, it is becoming ever clearer that access to strategic resources is turning into one of the key preconditions for economic development and competitiveness.

The European Union is promoting the shift towards a bioeconomy and a circular economy in order to reduce dependence on fossil resources and meet its climate-neutrality targets. But achieving all these goals requires a resource that is renewable, available in the long term, and that can be sourced and used sustainably. Wood is one of the few materials that meets all these criteria. It is therefore no exaggeration to say that a battle for future wood resources is now under way. While Europe wants to use ever more wood in construction, packaging, energy, the chemical industry and other sectors, various restrictions on land use and economic activity are growing at the same time. That raises the question — will we be able to secure a sufficient volume of resources at a time when demand keeps rising?

Latvia has long-standing forestry traditions, a high proportion of forest cover that has nearly doubled over the past century, and a strong wood-processing industry. But even in Latvia, the availability of wood resources can no longer be taken for granted. Climate policy targets, nature-protection requirements, public expectations and competition for land use are all placing growing pressure on the resource base. At the same time, it should be remembered that the forest sector is one of the pillar industries of Latvia's economy. It provides around 40,000 direct jobs, or 4.5% of all jobs in the country. That means thousands of families whose everyday lives, prosperity and wellbeing are closely tied to the sector's development. The forest sector generates a significant share of export revenue and makes a substantial contribution to the state budget. That is why, in discussions about the future of forests, it is important to maintain a balance between environmental, social and economic goals.

It is especially important to understand that sustainable forestry and nature protection are not opposites. On the contrary — responsible, productive and well-considered management makes it possible to get a greater result from smaller areas, while setting aside territories where the protection of natural values can be purposefully strengthened. Exactly this kind of balance will continue to be needed if we want to preserve both biodiversity and opportunities for economic development.

Meanwhile, significant uncertainty still remains in Latvia for land and forest owners. Discussions have been going on for several years now about land stratification, the dynamic designation of nature-protection areas, fair compensation mechanisms and voluntary nature-conservation instruments, yet clear, long-term predictable solutions have still not been found. As a result, owners do not know what restrictions may be imposed on their land in five, ten or twenty years, and that inevitably dampens their willingness to invest in forest regeneration, breeding and improving productivity. If we want to keep the forest sector competitive while also meeting nature-protection goals, owners need greater clarity, fair compensation and a principle of trust.

For us at Latvijas Finieris too, the availability of wood resources is a strategic priority that determines our ability to develop in the long term. Wood processing is a long-term business, in which decisions on investment, development and the creation of new jobs are made with a view several decades ahead. That is why, for several years now, we have been purposefully building a diversified model for securing wood resources. Latvia remains, and will continue to remain, our most important source of resources. But the geopolitical situation and market fluctuations have clearly shown that it is not possible to rely on a single market in the long run. That is why the company is gradually expanding the geography of its resource sourcing and strengthening cooperation with other countries in the Baltic Sea region. Our goal is that, in future, up to 50% of the wood resources the company uses will be sourced from outside Latvia. That does not mean abandoning the local resource — quite the opposite. It is an approach that helps reduce risk, balance supply and strengthen the company's resilience under varying market conditions.

I would like to cite Sweden as an example. It is one of Europe's forestry powerhouses, with long-standing experience in sustainable forest management, high productivity and a stable regulatory environment. In Sweden, for instance, solutions for creating productive mixed stands are being pursued ever more actively, combining conifers with birch to both increase forest stands' resilience to climate change and preserve economic value. However, the development of such approaches is shaped not only by forestry science but also by market perspective. That is why it matters that long-term demand for quality birch exists in Latvia and Northern Europe — it gives forest owners confidence that investment in growing birch will, in future, be economically justified and generate added value. We see significant potential in Sweden for developing long-term cooperation. This kind of diversification in resource sourcing is not just in the company's interest. It reflects a broader trend across Europe, where more and more companies are reviewing their supply strategies in search of greater resilience to geopolitical and economic shocks. The experience of recent years confirms that supply security is becoming just as important as price or quality.

In Europe, there is frequent talk of the need to strengthen strategic autonomy and reduce dependence on external resources. But these goals cannot be achieved without the wise use of local renewable resources. Wood is one of the most important resources for Europe's future competitiveness, and it needs to be treated accordingly. That is why it matters that decisions about the future of forestry are made on the basis of science, data and a long-term outlook. Emotional debates and oversimplified solutions in this field can produce consequences that will be felt for decades to come.

A forest is not just a natural asset or an object of economic activity. It is a resource that helps meet climate targets, creates jobs, generates exports and strengthens Europe's economic resilience. The sooner we recognise this, the more successfully we will be able to seize the opportunities offered by the shift to a bioeconomy and sustainable development. The availability of wood resources, in turn, is not merely a question for the wood-processing industry. It is a discussion about the future competitiveness of Latvia and Europe, about economic security and resilience in natural-resource supply chains, and about the ability to shape our own development in a world where each country's unique resources are becoming ever more valuable. For Latvia, such strategic resources are, without doubt, fertile land and forests.