Forests are more than just trees. They are a kind of climate engine for Europe. They are also a critical resource for the economy of the future. Yet current policy frameworks only capture part of the picture when it comes to forests’ climate contribution. In 2026, EU rules are set to be revised, and it’s high time that forests and the forest sector are recognized for their full value in climate action.
What is LULUCF – and why does it matter?
LULUCF stands for Land Use, Land Use Change and Forestry and refers to the EU framework that governs how emissions and removals from land use and forestry are counted toward climate targets. It forms part of the EU’s broader climate architecture, alongside emissions trading and sector-specific targets for transport and industry – all designed to help the EU achieve net-zero carbon emissions by 2050.
So far, the LULUCF debate has focused mainly on how to increase the carbon sink provided by forests. But the conversation must also include how Europe’s forests are used, managed and developed, and how policy can strengthen the long-term conditions for sustainable and active forestry.
Forests deliver more than carbon sinks
With the right policy in place, forests can continue to store carbon, while also supplying industry with renewable raw materials.
Focusing solely on forests as carbon sinks is too narrow a view. Real climate benefit also comes through the substitution effect – that is, when wood-based materials are used in place of fossil-based alternatives. This is a key element of long-term climate strategy, yet it is often overlooked in current LULUCF debates.
”We need to see forests in their full dimension: as carbon sinks, as sources of renewable raw materials, and as the foundation of a competitive bioeconomy that also strengthens energy and resource security for Europe.
Forests and the future
While forests grow slowly, their importance for both climate action and global competitiveness is increasing rapidly. At a time when Europe is working toward climate neutrality and greater self-sufficiency, the LULUCF framework must be part of the solution, not a barrier.
We need to see forests in their full dimension: as carbon sinks, as sources of renewable raw materials, and as the foundation of a competitive bioeconomy that also strengthens energy and resource security for Europe.
