This week, representatives of the peat extraction, processing and forestry sectors met with Edmunds Beļskis, Chairman of the Board of Latvijas valsts meži (LVM), and company representatives at the peat extraction company SIA “Laflora” in the Jelgava region.

During the meeting, the current situation in the peat extraction and processing sector, as well as in forestry, was discussed. The participants also addressed shared challenges related to the European Green Deal and regulations, acknowledging the necessity for particularly close cooperation between state-owned enterprises and the private sector. The aim is to find a common strategy for implementing the Green Deal in Latvia in a way that does not threaten sectors crucial to the Latvian economy.

SIA “Laflora” provided an insight into its experience with sustainable peatland management and offered proposals for the joint development of the sectors, including the implementation of wind farm and green industrial zone plans, in the context of adapting European Union (EU) Green Deal objectives to Latvia's national sustainability.

During the meeting, the participants agreed on a shared vision for future cooperation, acknowledging common risks and threats, as well as how to find solutions for the implementation of a balanced green policy. They identified a need for more accurate, science-based accounting for both wood and peat products, as well as the necessity to explain the situation in Latvia to EU institutions to ensure that the availability of resources is not threatened in the future. As is known, LVM manages more than 6,000 peatlands, which account for 58% of all peatlands in Latvia, and is the largest forest territory manager with 1.4 million hectares. Strategic issues regarding peatland post-use options were also discussed, which would contribute to sustainable peatland management, including the possible development of renewable energy sources on harvested peatland areas.

Edijs Ločmels, Chairman of the Council of the Latvian Peat Association, expressed his appreciation for the organized meeting: “During the discussions, current issues in the peat sector related to the EU Green Deal and the resulting challenges for the Latvian economy were addressed, as well as ways in which, by pooling strengths and resources, we can make some of the Green Deal targets more favourable to Latvia.”

Māris Liopa, Chairman of the Forest Certification Council of Latvia, emphasized that the meeting participants agreed to promote sustainable land resource management that is environmentally appropriate, socially responsible, and economically justified for Latvia, preserving both its ecological value and highlighting the importance of socio-economic issues for strengthening our country's prosperity: “It is essential that we agreed on defending the interests of Latvian entrepreneurs and formulating a unified opinion during the implementation process of the new European environmental policy, which is decisive for implementing fair decisions appropriate to the situation in Latvia, without restricting the rights of land managers.”

LVM Board Chairman Edmunds Beļskis emphasized that outdated stereotypes often prevail in the public sphere regarding the peat sector, which is why work must continue on public education: “The public must understand that in Latvia, peat is extracted for forestry and horticultural needs, where there are currently no suitable alternatives for seedling cultivation – neither in terms of quality nor in terms of meeting climate goals. It is also necessary to explain the importance of the socio-economic factors of the peat and related sectors, and the consequences that could arise if this is not taken into account. I am prepared to go to Brussels to explain the impact of new EU initiatives on the forestry and peat sectors.”

Uldis Ameriks, Chairman of the Board of SIA “Laflora”, highlighted the jurisdiction of peat extraction as one of the most significant issues when discussing the development of the peat sector and, consequently, forestry: “We have long argued that the extraction industry, which is a part of Latvia's economy and production, and the fact that LVM is the largest peatland manager in Latvia, should fall under the authority of the ministry that supports, promotes and fights for the support and development of strategically significant and traditional Latvian sectors – and that is the Ministry of Agriculture.” Furthermore, U. Ameriks emphasized the geopolitical situation, which dictates a special approach to the use of peat and forest resources in the Latgale region, promoting social peace and security specifically through the development of peat extraction and processing, and creating new, well-paid jobs. He also pointed out that the meeting identified common positive scenarios for future work – both in relation to regulations affecting the sectors and marketing campaigns regarding the importance of peat in forestry and joint cooperation at the Brussels level.

FOR REFERENCE

• 54% of Latvia's territory is covered by forests
  
• 10% of Latvia's territory is peatland
  
• Forestry accounts for around 20% of Latvia's export value
  
• Peat extraction and processing reached 230 million euros in 2021
  
• Each year, at least 60 million forest seedlings are available for sale by LVM, using 40,000 m3 of peat products
• 93% of Latvian peatlands are owned by the Latvian state – including those owned by LVM and local governments

* The European Union (EU) growth strategy – the “European Green Deal” was created with the aim of transforming the EU into a fair and prosperous society with a modern, resource-efficient and competitive economy. Within the framework of the Green Deal, the European Commission (hereinafter – EC) published a proposal setting out that climate neutrality must be achieved by 2035 in land use, forestry and the agricultural sector (LULUCF), which has its own separate regulation aimed at halting the decline of carbon sequestration in the land sector, based on the rising level of logging associated with wood demand and forest ageing, as well as continued emissions from organic soils (peatlands). Other new environmental policy regulations also foresee various restrictions in both sectors, such as threats to both peat extraction and peat product consumers (1).
1. https://www.zemeunvalsts.lv/mezu-iznemsana-no-saimnieciskas-aprites-biede-nozari-un-cilvekus