FORESTS BIOECONOMY.BOOSTING COMPETITIVNESS, INNOVATION & THEIR MULTIFUNCTIONAL ROLE

Marios Trigkas

Assistant Professor

Forest Economics & Innovation A.U.TH.

mtrigkas@for.auth.gr

2310-992697, 6974287874

FORESTS – A RENEWABLE NATURAL RESOURCE

Background

• According to European Commission, Europe must move to a sustainable economy with efficient use of resources.

• For a more innovative economy, with

➢ low GHG emissions,

➢bringing together the needs for sustainable agriculture, aquaculture, forestry, food security and

➢sustainable utilization of renewable biological resources for industrial purposes.

Focus on Forestry

• Europe’s strategy for forests (COM(2013) 659 final/2 –8/4/2014)

• A new framework is required to:

• Meet the growing demand for raw materials and new products (e.g. ecological chemicals, textiles etc.) and renewable energy sources.

• This demand offers the opportunity for differentiation of markets, but also stand as a major challenge for sustainable management of forests.

• The demand for new uses of forests in the bioeconomycontext and bioenergy must be coordinating with traditional demands respecting the sustainability

boundaries.

Focus on Forestry

• The aims for forests must deal with the establishment of the basis that will allow forestry and it’s whole value chain to become competitive and sustainable elements of bioeconomy…

• Member states have to give priority in investments for the maximization of forestry contribution to the bioeceonomy…

• Advanced materials and chemicals based on wood, is anticipated to play a fundamental role in EU’s bioeconomy…

Multifunctional forestry

• timber

• energy,

• fuels and chemicals,

• plastics,

• construction,

• furniture,

• non wood forest products

• landscape,

• recreational activities

• hunting

• carbon storage

• climate change

• water quality

• biodiversity protection

• soil protection

• and other ecosystem services.

Sectors of bioeconomy

in the EU

• Forestry and it’s value chain related sectors, play a fundamental role in EU’s bioeconomy

(source: EU’s bioeconomy strategy)

Forestry value chain

• Business-as-usual: in the near future competition over the use of forest resources will increase

• One reason the forest sector lacks innovation is that it is a mature industry.

• A growing bioeconomy means the opportunity for numerous types and forms of innovations.

• Complex and interdependent challenges.

• Multifunctional forestry has been embedded into business models and rural development pathways

• Forestry and forest based industries to retain an equitable share of added value and contribute to the diversification of rural economies.

• Alternative uses of forestry resources will shift the focus towards innovative models of forestry

MORE ABOUT FORESTS

• The EU has a total forest area of approximately 177 million ha (around 40% of the EU territory).

• The forest-based industries are a very important EU economic sector (woodworking industries, pulp and paper, printing industries), with a production value of € 365 billion, and an added value of around € 120 billion created by more than 3 million jobs.

• Forests in the EU increase up to 0,4% on average during the last decades.

• However, only a 60-70% of the annual grow is harvested, thus wood-stock is increasing.

MORE ABOUT FORESTS• Forest biomass is the most significant

renewable energy source and corresponds to the 50% of the total renewable energy consumption in EU.

• Non Wood Forest Products (NWFP) markets globally, reached a $90billion annual turnover(2010).

• Forests play a crucial role in the global carbon cycle and the fight against climate change. They act as carbon sinks (161,8 tn/ha in 2010)

WOOD IS GOOD

• Wood is the main source of income by forests.

• A fundamental source of raw materials for bio-based industries.

• 58% of wood production of forests in the EU is processed by forest industries (7% of the total GDP in manufacturing)

• The rest 42% is consumed for energy reasons (5% of the total energy consumption of the EU)

FUTURE TRENDS

• The demand for wood, and for wood fuel in the context of increasing renewable energy demand, is a strong stimulus for increasing forest growth and productivity and for improving management practices.

• More wood and residues could be harvested and mobilized while demand for forest products is growing for material and energy uses as a way to reduce carbon emissions by substituting products that cause higher emissions.

• However, increased harvest reduces carbon sinks. There is a need for speeding up production rates and developing forest raw materials with new properties.

• Forests of the future will be increasingly dedicated to producing fibres, timber, energy or customized needs, which will have considerable impacts on the provisioning of a broad range of public goods.

FOREST RELATED TOPICS IN THE EU BIOECONOMY

STRATEGY

(Source: EFI 2016. Forest bioeconomy - a new scope for sustainability indicators. From science to policy 4)

DESIGN AND IMPLEMENTATION OF A VOLUNTEER CARBON OFSETTING MARKET IN GREECE

• The project was financed through the NATIONAL STRATEGIC REFERENCE FRAMEWORK NSRF 2007-2013.

• 310,000.00 €

• Completed on October 2015

• The suitable land for implementing forestry projects in Greece, mainly marginal land, was located.

• Some optimal forest management practices and suitable forest and range species were suggested for adjusting better with the ecology of the project’s area and be able to sequester more carbon.

• The willingness of Greek companies for purchasing carbon offsets and reducing their carbon footprint was researched.

• Using their answers, carbon offsets prices were estimated and the possible annual turnover of the company supplying the market with this product.

Establishment of a Supporting Mechanism for the Development and Promotion of Social Entrepreneurship in Mountainous Areas

• 198.000€

• Development of a mechanism for the provision of "combinatorial support" in mountainous areas.

• Specialized and general business support, to cover the needs of local communities for new job opportunities and the maintenance of the existing ones.

• Focus on social economy

Development of a Funding Guide, for implementation and certification of Forest Projects for CO2 capture.

Research and training at the Laboratory of Forest Economics

• From 2015 the Laboratory has coordinated research over 600.000€ at National, European and International Research Projects and participated to numerous others as partner.

• Economic assessment Management of Forest Resources

• Development of bio-based wood products

• Entrepreneurship and Natural Environment

• Climate Change and Carbon offsetting

• Utilization of forest and wood industries residues

• Funding of R&D and the environment

SUSTAINABLE FOREST MANAGEMENT AND CERTIFICATION – THE BASIS

• Ecological

• Economic

• Social

• Policy

• Clear message

• Market access

• New markets

• Traceability

• Risk management

• Competitiveness

WHAT ELSE NEEDS TO BE DONE – BUT IS ALREADY ONGOING

➢Differentiation and Innovation

➢Cascading use of resources

➢Circularity and industrial symbiosis

➢ Interdisciplinary approach

➢Knowledge and skills

➢New business models

➢Funding

NEW INNOVATIVE WOOD PRODUCTS• WPC

• LVL

• CLT

• TMT

• SUSTAINABLE BUILDING

BIOREFINERIES OF FOREST BIOMASS

Investments on forests bioeconomy industries in Finland (Mils-biorefineries)

WOOD BASED BIOPLASTICS

WOOD FIBERS AND TEXTILES

• BABY TREE-SHIRT

SUSTAINABLE BUILDING

INDUSTRIAL SYMBIOSIS

• Forests can play fundamental role in industrial symbiosis and circular economy models

CASCADING USE OF FOREST BIOMASS

SUMMARIZING

• New business model is required for supporting the role of forests in bioeconomy

• Which are the key partners and the key resources of this model?

• Value propositions of the model

• Design policies for a cross-sectorial and regionally diverse industry based on sustainability and resource-efficiency

• Cross-cutting issues

Key partners and resources

• Primary production and yields and forest service: New forest management and technology practices to support multifunctional forestry, mitigation of climate change and carbon storage, effects of chemical, food, energy and other industries in forestry.

• Forest based Industries/enterprises: Eco -design and sustainable production of products and services , development of eco innovations in products and processes, cascading and circularity to extent products life cycle, certification and eco labeling of products, waste generation and management techniques, more extensive and effective utilization of used wood.

• Forest based bio and energy industries: Creation of industrial symbiosis to create an inter-linked and cross-sector industry (energy, chemicals, textiles, food), high quality biomass, operation of high value utilization modes, biotechnological conversions, utilization of biomass for energy (e.g. pyrolysis, gasification, hydrolysis)

KEY PARTNERS AND RESOURCES

• the impacts of international trade

• the basic market and price mechanism

• technological advances in biomass conversion, bioenergy production and biomass harvesting

• new and increased competition for non-forest biomass sources

• the changing global competitive advantages in product value chains.

VALUE PROPOSITIONS

• The bioeconomy approach must become more attractive for Greek SME’s in order to make the most of their innovation potential to find outlets for bio products, which in turn enables them to be more competitive, and to generate growth in rural areas contributing to environmental protection and forest resource efficiency.

• Furthermore, has to support wellbeing for local communities.

• Establish win-win synergies and end users relations

DESIGN POLICIES

Setting the context for the Greek forest based sector in a bio based

society

Creation of a competitive operating environment for the bioeconomy in

forestry value chain

Supporting of responsible management

of forest resources

Diversification and innovation

Generating new business from the bioeconomy, a strong domestic market

and the crossing of sectoral boundaries

Developing the bioeconomy competence

base by upgrading education, training and

research

Fulfilling consumer needsSetting measurable targets and review

CROSS CUTTING ISSUES• FUNDING

• LEGISLATION

• COMMUNICATION OF THE STRATEGY

Peter Drucker

“The best way to predict the future is to create it”

FORESTS BIOECONOMY.BOOSTING COMPETITIVNESS, INNOVATION & THEIR MULTIFUNCTIONAL ROLE

THANK YOU FOR YOUR ATTENTION!