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LVM Meets with OECD Representatives to Discuss the Contribution of Efficient Forestry and Timber Industry to International Trade

To discuss the role of sustainable forest policy in the development of global trade policy in connection with the achievement of climate neutrality goals, Edmunds Beļskis, Chairman of the Board of JSC “Latvia's State Forests” (LVM) and Toms Reiziņš, Member of the Board of LVM met with Marion Jansen, Director of the Trade and Agriculture Directorate (TAD) of the Organization for Economic Co-operation and Development (OECD). The Ambassador of the Republic of Latvia to the OECD Indulis Ābelis, Advisor to the Ministry of Agriculture of the Republic of Latvia Aivars Lapiņš and Industry Advisor to the Ministry of Environment and Regional Development of the Republic of Latvia Jānis Glazkovs also took part in the meeting.

During the meeting, LVM presented the currently implemented forestry measures, which make a significant contribution to the expansion of international trade, providing customers with predictable supply chains, as well as increasing the impact of selected tree seedlings on productivity.

“Forestry plays an important role in the development of the national economy for Latvia and other OECD member states where boreal forests are widespread. The representatives of the OECD admitted that recently the environmental ministries of the member states have been particularly active in the negotiations on forestry, agriculture, and environmental issues. However, during the conversation, we got clear confirmation that in these matters, according to the OECD strategy, it is always important to evaluate the economic benefits and losses. Currently, the implementation of sustainable forest management and, therefore, the provision of renewable energy is hindered by the comprehensive policy of the “green course”. The OECD recognizes that forest management and forest processes have been neglected, taking the forest for granted. After the implementation of the forest seed programme, which was one of the first programmes under the auspices of the OECD in the implementation of the Marshall Plan in Europe, the focus on the forest and the processes taking place in it has been lost,” LVM Board Member Toms Reiziņš talks about what was discussed during the last meeting.

Using one approach for all member states, ignoring the specific local geographical conditions, the actual state of biodiversity and the country's potential to become climate neutral, can pose a risk for the successful implementation of a sustainable forest policy. The OECD Recommendations for Policy Coherence for Sustainable Development (PCSD) also define three basic principles in sustainable policy making, which emphasize the integration of the created policy. This means finding a compromise between economic benefits, social and environmental policies.

“This year, we will purposefully continue our work on updating the company's medium-term strategy and reviewing the established long-term goals to be able to fully comply with the ESG (Environmental, Social and governance) principles and ESRS (European Sustainability Reporting Standards) approved by the European Union from 2025.

We emphasized the need to pay more attention to sustainable forestry in global trade chains, and the fact that the implementation of uncoordinated policies in the forestry sector can create significant trade barriers, which can lead to a decline in economic activity. We substantiated these concerns with tangible examples that we will encounter in the process of actualizing LVM's medium-term strategy, for example, the creation of forest melioration systems. Although in the geographical conditions of Latvia, the regulation and drainage of the amount of water is of fundamental importance, the “green course” does not support the establishment of land reclamation in forest areas – considering such an activity as unsustainable.

Reclamation of forest land is an effective way to increase the level of carbon sequestration. Studies confirm that reclamation in Latvia doubles carbon sequestration. A well-thought-out network of forest roads also plays an essential role in ensuring effective extinguishing of forest fires. During the meeting organized by the Minister of Economics of the Republic of Latvia Ilze Indriksone during the state visit with the leaders of the French forest industry and forest industry professional organizations, one of the issues discussed was the lack of forest melioration systems, which does not allow to promptly prevent the risks of forest fires in French forests,” tells Board Member Toms Reiziņš.

At the end of the meeting, Indulis Ābelis, the Ambassador of the Republic of Latvia to the OECD, called on Latvia to play a significant role in bringing up sustainable forestry issues on the OECD agenda. This initiative was also supported by Marion Jansen, OECD TAD Director, encouraging the participants to look for the most appropriate cooperation format soon, so that the OECD has the opportunity to come up with specific recommendations for national policy makers by 2025-2026.