I am delighted to be here with you. We are relatively close to Helsinki – in the very heart of nature. I could not think of a better place to discuss the importance of forests. Every day we learn how vital these rich and complex ecological systems are, not only for human health but, of course, for the health of our planet too. Europe's 400 billion trees absorb almost 9% of our continent's greenhouse gas emissions. By retaining water, they help prevent floods and droughts, and they stabilise precipitation patterns by forming the clouds we see in the sky. Forests provide livelihoods, energy, building materials and, of course, economic growth and many important jobs. New, innovative products are being developed. Wood products have huge potential to replace fossil-based products. I am very much looking forward to learning more about all of this today at this conference. So let us look at forests. For thousands of years, forests have been an enchanting place for us, associated with both mystery and magic as well as modern science. In our oldest fairy tales and folklore – as you all know – forests are home to spirits, wise animals, wizards and healers. Today, more than 25% of our medicines still come from rainforest plants. Forests, in the broadest sense of the word, are part of who we are. They must be our shared responsibility. Because we all know that today, forests around the world are under threat.

Not far from my hometown of Hanover, in northern Germany, there is a forest I have known for decades. Every time I return home, I go there for a walk. In recent years, I have seen that this forest is dying. In our warming climate, pests are thriving. You know all the signs of these development problems. Here too, in the north, forests are changing along with the climate. This summer, forest fires in the European Union released an amount of carbon equivalent to the emissions of about five million cars in one year. We know that scientists are debating whether forests in Europe are carbon sinks or rather net carbon emitters. Whatever the outcome of this debate, there is certainly one point we can all agree on: “Healthy forests are our most powerful allies in the fight for a healthy planet.” We must do more to preserve and better manage our forests. This is precisely the issue that has brought us to this conference today.

Let me start with the global situation. Over the last three decades, deforestation has resulted in the loss of an area larger than the European Union. We are all responsible for this. For example, it is estimated that consumption in the European Union is responsible for about 10% of these losses. But now, thanks to the European Green Deal, we have decided not only to address this problem but also to play a part in solving it. For example, our regulation on deforestation-free products will be adopted next month, just in time for the COP15 conference in Montreal. Our message is very clear: Europe is cleaning up its supply chains – with regard to products that cause deforestation. This marks a turning point in the global fight against deforestation. Because the regulation applies not only to illegal deforestation but to all types of deforestation, where trees are felled without being replanted. Soon, only products whose production has not involved deforestation will be allowed to enter our single market.

However, we also know that the solution cannot be just a simple ban. Because forests are an important economic and also cultural factor. Therefore, we must provide an alternative to deforestation for those local communities whose livelihoods are so heavily dependent on forests. For example, by creating new jobs, sharing know-how on forest conservation, and supporting new sustainably sourced wood supply chains. Last year in Glasgow, I signed the European Union's global forestry pledge of 1 billion euros. And this year at COP27 in Sharm El-Sheikh, I signed five forest partnerships with five different countries to implement this commitment. And that is exactly what we are working on, to ensure these communities have an alternative to deforestation. To mention just a few examples: wood processing in Guyana, or forest products such as honey in Uganda, or sustainable tourism in the Republic of the Congo. So, we do not want to just ban deforestation or fight against deforestation, but also to create viable alternatives. In this way, local communities can earn a living while protecting and conserving their forests. This is how we are tackling the global problem of deforestation: by working closer together and offering people a sustainable alternative that is beneficial to both them and the planet.

In Europe, we have decades of experience in sustainable forestry. For example, in Finland, data on forest resources has been regularly collected since the 1920s. Using this knowledge, we can develop your expertise together and take it to the next level. That is my second point. Let us join forces to nurture the biodiversity and bioeconomy of our forests. Let us shift incentives from short-term exploitation of natural resources to long-term and circular principles. This is the goal of the European land use review. The last missing piece is the proposal for carbon removal certification. It is a quality guarantee for people and organisations who want to fund carbon removal activities. Then we will not only be able to better monitor whether our forests remain carbon sinks, but foresters and forest owners will also receive recognition and remuneration for the time and care they invest in keeping our forests healthy. And, as you, Sanna, mentioned, I believe 60% of forests in Finland are privately owned. So let us commend them for looking after and tending to their forests.

These measures help ensure sustainable timber harvesting not only in your countries but across the entire European Union. So, this covers the supply side. On the demand side, we need to do more to promote the use of long-lasting biomaterials, such as high-quality timber, in construction. This is truly the significance of the New European Bauhaus. We want to improve people's lives by designing and building sustainably. To understand what I am talking about, you only need to look at this building – the Finnish Nature Centre, which is a cross-laminated timber building. When it was built in 2013, it was the first building of its kind in Northern Europe. Currently, 3% of the total material used in European construction is wood. So I would say that it is still a niche, but with great potential for improvement. And demand is growing rapidly. And the New European Bauhaus wants to drive this change. You may know that the original Bauhaus movement, founded in 1919, explored precisely new construction methods and new materials; at that time, of course, that was concrete and steel. But even then, there was an outstanding Finnish architect who was known all over the world. His name is Alvar Aalto and he was already a pioneer at that time. Since he liked working with wood, he used wood and created icons of wooden furniture. In fact, if you look at them today, they are still extremely modern in their design – truly excellent.

Today, we are fortunate because we have a whole generation of young architects, designers and engineers who want to redefine our way of building and living. They are rediscovering natural materials, such as wood. And they have understood how cleverly nature finds solutions, and they are trying to understand these nature-based solutions and transform them, for example, into our world of construction. We all know that today, building with wood can save up to 40% in carbon emissions compared to concrete. That is a huge figure. By keeping carbon inside the wood, one day timber could transform our homes and even entire cities into carbon sinks. To some of you, this may seem like a dream. But in Finland, as well as in Estonia and Sweden, you are already showing Europe how this works, how it is possible and how it can be implemented. You have centuries of experience in building with wood. We need your experience more than ever to promote sustainable forestry and lead the next revolution in architecture.

The goal of the New European Bauhaus is to become a movement that brings together like-minded people to create new collaborations and new ideas and to introduce the wider public to the many wonderful things being done by pioneers like you.

This brings me to my third and final point: let us give people the opportunity to lead and drive these changes. The growing importance that forests and construction will have in the green transition requires new skills – or perhaps these are rediscovered old skills. We need more foresters, engineers, chemists, wood processing masters and data specialists – you name it. And we know that today these skills are in too short supply. Recently, the IFO Institute prepared a report which found that almost 35% of EU construction companies report a shortage of skilled workers. Qualifications must increase along with the changes we are striving for. The green transformation will not happen if we do not have the skills and if there are no people to drive this transformation. That is why we have proposed 2023 as the European Year of Skills. Its aim is to better match different skill-acquisition strategies with the economy's needs for specific skills in the labour market. This means bringing together industry representatives, forest owners, trade unions, universities and training providers. This is an approach we are implementing for the first time with our Pact for Skills. We have set up 12 large-scale partnerships that offer upskilling opportunities for six million people of working age in Europe. But we need much more than that.

I am pleased to announce today that we are starting the creation of the New European Bauhaus Academy. The Academy will have three main priorities. The first is related to fostering green and digital skills in construction. Over the next five years, we want to retrain and upskill at least three million workers in the construction sector, because we need them now to drive this transformation. The second priority is this: “In this important sector, we need more research and development, as well as innovation.” And for that, we need more funding. Therefore, the Horizon Europe programme – you all know our research programme, which is known worldwide – will soon launch a call for applications worth 10 million euros for demonstration projects of nature-based materials. We want to know what is out there, we want to know about innovative ideas, so that we can then develop them and bring them to market. I am grateful to John Schellnhuber for his initiative and advice on this matter. We want to learn from the New European Bauhaus how regulation can stimulate the use of high-quality nature-based solutions and biomaterials. Finally, the third priority – the new academy will have a very strong digital focus. We want to provide online courses in sustainable forestry, design and timber construction, essentially creating a true European Forest Academy. And we will do this together with you, the Nordic Bauhaus. Thank you very much for joining! The Commission will provide an additional 1 million euros for this. I want to thank you all three for your huge commitment. This is your network – of universities, architects, urban planners, construction companies. You are leaders in the field of sustainability. We need your expertise, and we need your network to bring together the best. I think we can multiply your experience and innovation throughout the European Union and the world. Because we are only a small part of the global ecosystem, but if we do this right, we can be a very big part of the solution.

Ladies and gentlemen!

You all know the old saying that people sometimes miss the obvious. We say: “You cannot see the wood for the trees.” Today, we are doing exactly the opposite. We are zooming in and want to discuss the big picture. It is about realising the importance of forests in our lives and our livelihoods. It is about forests as our homes, forests as the foundation of our economy and, of course, forests as our best allies in the fight against climate change.

Thank you very much!