The greatest challenge for the forestry sector, as for many other fields, is global climate change – the forest may become vulnerable to various climatic conditions, meaning it will not only grow less effectively but also sequester less CO2, leading to a smaller economic contribution from the forest. With regard to the forestry sector, global political developments also play a major role, particularly in recent times. "The Russian invasion of Ukraine and its consequences also affect forestry. Until now, imports from Belarus and Russia amounted to approximately one million cubic metres of various timber products per year. Wood was imported into Latvia for processing, and some of it was woodchips used for heating. As is known, providing heating for the population will be a major problem in Latvia this winter. Wood accounts for about 30% of the country's total energy balance. We need to think about how to compensate for the drop in imports and, additionally, potentially replace some gas as well. Of course, Latvia also produces woodchips domestically and exports some of them. However, we must understand that we are free-market participants and economic viability is important. In Scandinavia, where Latvia exports these woodchips, people have higher purchasing power and, consequently, prices are higher. It is important to ensure that the rise in heating prices in our country is not excessively sharp, and the more different products there are on the market, the more moderate the prices will be," explains Aigars Dudelis, Head of Forest Planning at A/S Latvijas valsts meži.
