The German Wood Industry: Expectations of the legislator and society

Excerpt from the speech by Wolfgang Beck, SVP Global Wood Procurement, at the 74th Annual Conference of the Council of the German Wood Industry 2024 (Part 2 of 4)

The wood industry faces economic challenges and high expectations from legislators and society regarding sustainability and climate protection. The European Green Deal sets ambitious targets for reducing greenhouse gas emissions and achieving climate neutrality. These targets directly impact the timber industry and require a fundamental sector transformation.

The Green Deal: ambitious targets for climate protection and sustainability

The European Union’s Green Deal is a comprehensive package of measures to make Europe the first climate-neutral continent by 2050. This includes, among other things, reducing greenhouse gas emissions by at least 55 percent by 2030 compared to 1990, promoting renewable energies, increasing energy efficiency and promoting a sustainable circular economy.

Impact on the timber industry

The timber industry plays a central role in achieving these goals. On the one hand, wood is a renewable raw material that binds CO2 and can thus contribute to climate protection. On the other hand, wood processing is often energy-intensive and associated with emissions.

Pressure to transform

The Green Deal is increasing pressure on the timber industry to make its production processes more sustainable and to reduce its carbon footprint. Companies must invest in new technologies, increase energy efficiency, and rely more on renewable energy. Developing innovative products and business models geared towards sustainability and the circular economy is also becoming increasingly important.

Sustainability as a competitive advantage

Legislators’ and society’s high expectations are challenging, but they also offer opportunities for the timber industry. Companies that focus on sustainability at an early stage and develop innovative solutions can gain a competitive advantage and tap into new markets. Consumers and companies increasingly focus on sustainable products and are willing to pay a higher price.

Conclusion

The timber industry is facing a profound transformation. Sustainability and climate protection are no longer just buzzwords but central requirements that will shape the entire industry. Companies that actively shape this transformation can emerge stronger and make an important contribution to climate protection.