Opinion of the Committee of the Regions on 'Management, use and protection of forests in the EU` (98/C 64/04)

THE COMMITTEE OF THE REGIONS,

having regard to its decision taken on 15 January 1997, under the fourth paragraph of Article 198c of the Treaty establishing the European Community, to deliver an opinion on management, use and protection of forests in the EU and to instruct Commission 2 (Spatial Planning, Agriculture, Hunting, Fisheries, Forestry, Marine Environment and Upland Areas) to draw up the opinion;

having regard to the draft opinion (CdR 268/97 rev.) adopted by Commission 2 on 15 October 1997 (rapporteur: Mrs Perkkiö),

adopted the following opinion at its 20th plenary session on 19 and 20 November 1997 (meeting of 19 November).

1. Introduction

1.1. Forests are one of the EU's key renewable natural resources. For many reasons, patterns of forest use vary from country to country and from region to region, but, in general, it can be said that the principle of multiple-use forestry is respected.

1.2. Multiple use refers to the utilization of forests for commercial, recreational and protection purposes. Commercial exploitation of forests ensures that forests remain a source of economic wealth and employment in Europe. Economic wealth, in turn, allows more scope for implementing conservation programmes and funding recreational services.

1.3. Forest management and use must be based on respect for the principle of sustainability. This should include ecological, economic and social sustainability.

1.4. As the importance and circumstances of the forestry sector, i.e. forestry and the forest industry, and the weight attached to the various functions of forests vary between Member States, and even between regions, it is sensible to apply the subsidiarity principle in all decision-making relating to the sector; that is, each Member State should formulate its own forestry policy. There are, however, certain areas such as pollution control, research and training, and international activities where EU forestry policy can bring added value.

1.5. The Committee of the Regions has decided to draw up an own-initiative opinion on the management, use and protection of forests in order to highlight the importance of forests for regional development and welfare. An opinion on this subject is judged to be particularly important at this juncture given that on 18 December 1996 the European Parliament adopted a resolution on the European Union's forestry strategy setting out recommendations for proposals for action to be put forward by the European Commission. Similarly, the reform of the Structural Funds now underway will also have a bearing on the opportunities for developing the forestry sector in the future.

2. Background

2.1. The current situation of the forestry sector in Member States

2.1.1. The main economic function of forests is to supply wood as a raw material for the mechanical and chemical forest industries and for use in energy production. Forests are also a source of berries, mushrooms, cork and game. In some regions, forest-related tourism and hunting are an important source of income.

2.1.2. Forests also protect land against erosion, provide protection against avalanches and damage caused by storms and floods, filter water and act as a carbon reservoir and hence a buffer against the greenhouse effect. Unlike the commercial uses of forests, these functions cannot be quantified in terms of money but their economic significance may be considerable.

2.1.3. According to FAO statistics, the value of forest industry production in the Member States totalled over USD 70 billion in 1991. Germany was the largest producer at USD 17 billion. In Sweden, France and Finland the value of production amounted to some USD 10 billion. The forest industry accounts for 2,4 % of the EU's aggregate gross domestic product, with the proportion of GDP for individual Member States ranging from 6 % in Finland to 1,2 % in Luxembourg.

2.1.4. Forest-based products are an important source of export revenue for some Member States. In 1993, EU exports of forest industry products totalled USD 37 billion and exports of raw wood USD 1 billion. The proportion of forestry exports to total exports varies greatly from country to country, ranging from 0,4 % to 31,5 %. It is high in Austria, Sweden and Finland, which are major producers but have relatively low consumption levels. Germany and France are also leading exporters of forest industry products, despite having high levels of consumption.

2.1.5. With the accession of the new Member States, the EU's degree of self-sufficiency in forest industry products increased substantially. For example, the degree of self-sufficiency rose from 56 % to 89 % for sawnwood, from 47 % to 82 % for woodpulp and from

76 % to 106 % for paper and paperboard. Self-sufficiency ratios vary greatly from country to country, which is partly due to the volume of the growing stock and the degree of utilization. This is an example of the natural division of labour between Member States.

2.1.6. Forests are an important source of employment in the EU. Some four million people are employed directly by the forest industry alone. No statistics are available on the numbers employed in forestry, i.e. silviculture and logging, but, as a labour-intensive activity, it provides jobs for many people. The EU's 12 million small forest owners perform much of the silvicultural and logging work themselves, in addition to which forest companies employ considerable numbers of people as forest workers and operators of forest machinery.

2.1.7. The forestry sector also employs large numbers of people indirectly in construction, the metal and engineering industries, the chemical industry, the transport sector, etc.

2.1.8. The employment impact of the forestry sector is becoming increasingly important in rural and upland districts. Silviculture, logging and related transport activities provide work for people in remote regions. Small-scale establishments in the mechanical wood-processing industry are also a potentially important source of jobs in these areas.

2.1.9. Growing conditions for forests in the EU vary greatly for climatic, ecological and biological reasons. For example, viewed in terms of vegetation zones, the Mediterranean countries belong to the Sub-Mediterranean zone while the Nordic countries belong to the Arctic-Alpine zone. Forests in southern Europe are predominantly deciduous while those in northern Europe and in upland districts are predominantly coniferous. Forests in the EU's upland districts reflect the special conditions prevailing in these areas, in addition to geographical factors.

2.1.10. The EU has a total forest area of 130 million hectares, of which 87 million hectares consists of commercial forests. The largest tracts of woodland are to be found in the Nordic countries, France and Germany. The proportion of commercial forest to total surface area is highest in Finland (58 %) and lowest in Ireland (6 %); the EU average is 27 %.

2.1.11. Over the past four decades, the growth of forests in the EU has exceeded fellings by a clear margin. As a result, the aggregate growing stock of the 15 Member States has increased by 4,1 billion m3 to 11,5 billion m3 during this period. Germany, Sweden, France and Finland have the largest timber resources and the highest annual increment in the growing stock. Together, these four countries account for 73 % of the EU's total annual increment and 75 % of the EU's total annual cut. In 1990, fellings in the 15 Member States amounted to 70 % of the EU's total annual increment; the proportion was highest in Portugal (96 %) and lowest in Italy (45 %).

2.1.12. The increase in the annual increment is due to a number of factors, including large-scale afforestation, other silvicultural measures such as improved drainage, fertilization and tending of seedling stands, and withdrawal of land from cultivation. Other factors, with adverse consequences in the long run, are nitrogen deposition and the increased concentration of carbon dioxide, which have contributed to the fertilization and growth of part of Europe's forests.

2.1.13. The variation in growing conditions across Member States is evident from the figures for per hectare growth. Growth is highest in Ireland (8,4 m3/ha/yr) and Denmark (7,5 m3/ha/yr) and lowest in Greece (1,5 m3/ha/yr) and Finland (3,6 m3/ha/yr).

2.1.14. Wastepaper has emerged alongside virgin fibre as an important raw material for the forest industry. The average recovery rate for the Member States is 40 %, with values ranging from 7 % in Ireland to 66 % in Austria. It is only natural that countries in which wastepaper is available in large quantities should also manufacture products based on recycled fibre. No attempt should be made to change this situation by imposing artificial legal impediments, providing that the transparency of this market is ensured.

2.1.15. Two-thirds of the EU's total forest area is privately owned. Only in Ireland and Greece does the State own more than half of the total forest area. All in all, there are some 12 million private forest owners, most of whom are families. Companies are important forest owners in a few countries, e.g. Sweden, Spain and Portugal. Ownership patterns may also vary within the same country. The large number of forest owners means that the average size of forest holdings is small. The variation in ownership and economic structures affects the forest strategy of each Member State, or region in accordance with the principle of subsidiarity.

2.1.16. The well-being and health of forests is crucial given the role forests play in generating economic wealth and preserving biodiversity. Forests are also an important carbon sink and reservoir (85-120 million tonnes of carbon fixed per year) and the amount of carbon locked up in trees is growing continually as the growing stock increases. If silvicultural measures and logging are not carried out in good time and steps taken to prevent pollution of woodland areas, carbon will gradually start to be released into the atmosphere as the growing stock ages and decays. Forests will then no longer be able to act as effectively as they do now as a counterweight to the greenhouse effect.

2.1.17. Pollution is carried from country to country regardless of national boundaries. Emissions of sulphurous and nitrous oxides and ammonia cause acidification of soils, especially in densely populated industrial areas. But forests in northern and southern Europe and upland districts, which are sensitive to acidification, are also at risk.

2.1.18. Europe's forests are also plagued by storms, insects and fungal diseases. Forest fires are a serious problem in some Member States. Between 300 000 and 500 000 hectares of forest are swept by fire in the EU every year. Spain, France, Italy, Greece and Portugal account for some 97 % of the total forest area destroyed by fire and these areas are classified as high-risk areas by the EU.

2.1.19. Over the past ten years, both the area destroyed by fire and the duration of forest fires have been reduced as a result of implementing fire-prevention and monitoring projects of various kinds. By contrast, there has been a marked increase in the number of fires. Investigation into the causes of forest fires and fire prevention are therefore of the utmost importance. In this connection, it should also be pointed out that some countries use planned, controlled burning to ensure biodiversity.

2.2. The legal basis for forestry measures

2.2.1. Neither the Treaty of Rome nor the Treaty of Maastricht make any provision for a forestry policy. Forest-related issues are, however, dealt with in conjunction with several other Community policy areas and decisions are taken pursuant to the following legal bases:

- agricultural policy (Article 43);

- competition policy (Article 92);

- harmonization (Article 100);

- commercial policy (Article 113);

- environment policy (Articles 130r and 130s);

- Article 235.

2.2.2. The Forestry Action Programme was adopted by the Council in 1989 and improved and expanded in 1992. The programme consists of measures for supporting forestry in various areas of action, each of which is briefly described below.

2.2.3. Regulation on the protection of the Community's forests from atmospheric pollution [(EC) Nos 2157/92 and 307/97]. Under this regulation, support was provided for the establishment in 1992-1996 of a European-wide system for monitoring the general condition of forests and a network of plots for monitoring forest ecosystems. Community assistance has also been granted to pilot projects studying the functioning of forest ecosystems and restoration of damaged forests. Under a new regulation which came into force in February 1997, the implementation of the scheme was extended for the five-year period 1997-2001, with a budget of ECU 40 million (ECU 29,4 million in 1992-1996).

2.2.4. Regulation on the protection of the Community's forests against fire [(EC) Nos 2158/92 and 308/97]. Under this regulation, the Community provided funding in the period 1992 -1996 for fire-prevention and monitoring projects, including the building of forest paths, forestbreaks, water supply points and the procurement of clearing equipment and monitoring facilities. Assistance was also granted for projects analysing the causes of forest fires, information campaigns and information-system projects. The Commission has adopted a regulation providing for the extension of the programme for a further five years from 1997 to 2001, with a budget of ECU 70 million (ECU 70 million in 1992-1996).

2.2.5. Regulation on forest enhancement in the context of rural development [(EC) No 1610/89 in connection with (EC) No 4256/88]. This regulation provides for measures to support forestry-related activities in rural areas and less-developed regions and nowadays also in sparsely populated regions (Objective 1, 5b and 6 areas). Activities eligible for support include afforestation, upgrading of woodlands and the development of forest infrastructure. Priority is given to areas in which forests can help boost the economy and create jobs, and areas in which such measures are needed to combat erosion and protect soil and water. Assistance may also be granted if tourism and recreation are of major importance for the area concerned.

2.2.6. Regulation on improving the processing and marketing conditions for forestry products [(EC) No 867/90]. The purpose of this regulation is to grant assistance for the development of forestry operations occurring upstream from the initial processing (sawing) of wood, e.g. felling, stripping, cutting up and storage in Objective 1, 5b and 6 areas. Processing further downstream (e.g. sawing) is no longer eligible for assistance.

2.2.7. Regulation instituting a Community aid scheme for forestry measures in agriculture [(EC) No 2080/92]. Assistance is provided under this regulation for the afforestation of agricultural land and other silvicultural measures such as tending of seedling stands, harvesting of short-rotation coppices for energy use and construction of forest roads, as well as other timber-harvesting facilities (e.g. skyline cranes). This aid scheme is one of the accompanying measures under the CAP reform. The total budget for the period 1993-1997 is ECU 1,2 billion.

2.2.8. Regulation establishing a European Forestry Information and Communication System (Efics) [(EC) Nos 1615/89 and 400/94]. This regulation provides for the collection of comparable and objective information on forest resources, forest products, the structural organization of forestry, Community action and national forestry policies. The budget for the period 1993-1997 is ECU 3,9 million.

2.2.9. In 1994, the EU adopted a regulation on the conservation, characterization, collection and utilization of genetic resources in agriculture and forestry [(EC) No 1467/94]. As yet, no projects on the genetic resources of forests have been funded under this scheme.

2.2.10. Forestry-related research is funded as part of the EU's R& TD framework programmes. As forests were of relatively minor significance before the accession of the new Member States, appropriations for forest-related research have been small and financing has been provided mainly through projects in the specific programmes for agriculture, the environment, biotechnology and energy; for example, forest projects have been financed under the FAIR research programme of the fourth framework programme. The fifth framework programme is scheduled to start in 1998.

2.3. Other legal provisions

2.3.1. Structural Fund assistance is available for development projects in the forestry sector in Objective 1, 5b and 6 areas and to some extent in Objective 2 areas as well. The EAGGF grants financing to micro enterprises in rural districts for product development, market studies and logistical optimization projects. These measures help to generate jobs in the countryside and boost the level of income that remains there by raising the value-added of products. Similarly, ERDF aid is used to promote the development of forest enterprises in the SME sector. The ESF finances training projects on the management, use and protection of forests.

2.3.2. The Leader II Community initiative provides assistance under the B3 funding category ('Increasing the value-added of agricultural, forestry and fishing products`) for launching projects involving small-scale downstream processing operations which are innovative and have a demonstration value.

2.3.3. Trade in seeds and seedlings is governed by the directive on the marketing of forest reproductive material (66/404/EEC) and the directive on external standards for forest reproductive material marketed within the Community(71/161/EEC). The former includes provisions on the classification of forest reproductive material marketed within the Community and information to be provided in connection with such trade. The latter lays down compulsory quality requirements for trade in seeds and for seedlings which are sold according to the EEC's standard nomenclature.

2.3.4. Provisions on measurement of wood and quality standards are set out in the directive on the classification of wood in the rough (68/89/EEC), which is currently being amended.

2.4. Administration of forestry matters in the EU

2.4.1. The Commission does not have a separate directorate-general for forestry. Rather, the responsibility for forestry affairs is shared by several DGs. The most important unit is the unit for specific measures in rural areas (the forestry unit) in DG VI (Agriculture). Forestry matters are also dealt with by DG III (Internal market and industrial), DG IV (Competition), DG XI (Environment), DG VIII (Development), DG XII (Science, research, development), DG I (External relations) and DG XVII (Energy). A separate forestry industry unit has been set up in DG III, which has led to greater attention being paid to the interests of the forest industry in decision-making.

2.4.2. DG III also has a Standing Forestry Committee, which acts as a forum for discussion by representatives of Member States on e.g. positions on international forestry issues. This body also functions as an administrative committee when decisions are taken on e.g. the funding of projects for monitoring the health of forests.

2.4.3. The way the administration of forestry affairs is organized in Member States varies considerably, depending on the relative importance of forestry matters for the economy, the main role of forests or the ecological, social or cultural significance of forests in the country concerned. The ministry responsible for administration may be the ministry for agriculture and forestry, the ministry for the environment or the ministry for industry. There are also differences in the way matters are delegated for decision-making at regional level.

2.4.4. The use and protection of the forest resources of Member States and regions are regulated by laws, standards and institutional instruments. Policy on support for the forestry sector varies greatly, as do forest taxation and the organization of research, training, advisory services and information. For example, forest taxation may take the form of a capital tax, based on either taxation of income from real estate or sales proceeds, or an income tax. The objectives of forest policy in individual Member States are determined by the same factors which govern administrative arrangements.

2.5. International forestry policy

2.5.1. The Member States always act independently as treaty partners at international level, particularly as the EU has no representative powers, but they usually coordinate their actions by taking common stands. Thus, at the UN Conference on Environment and Development, held in Rio de Janeiro in June 1992, the participating countries signed the General Convention on Biological Diversity and the UN Framework Convention on Climate Change. In addition, Chapter 11 of the Agenda 21 action programme on the prevention of the destruction of forests was adopted.

2.5.2. At the Second Ministerial Conference on the Protection of Forests in Europe, held in Helsinki in 1993, the European countries and the EU agreed to implement the forest principles adopted at the Rio summit. The Helsinki Conference also adopted resolutions on the sustainable management and use of European forests and the preservation of their biological diversity. Member States should take account of these agreements in formulating forest strategies at both national and EU level whilst seeking to work for a more precise specification of the contents of the agreements at, for example, the follow-up meeting to be held in Portugal in 1998.

2.5.3. The present opinion focuses on the development of the forestry sector within the EU and international development aid is not therefore discussed at any length. The development of the countries bordering on the EU is nevertheless an important consideration as EU action can help to promote the adjustment of prospective Member States to the demands of membership. Environmental problems, especially air pollution, transcend national borders and so cooperation is needed to resolve them. At the Helsinki Conference the signatory states adopted a resolution on the sustainable management and use of forest resources. Cooperation may take the form of transfer of knowledge and bilateral and multilateral projects, with the emphasis on technical, scientific, institutional and legal issues.

2.5.4. Financial assistance for cooperation with countries in central and eastern Europe is available under the Phare and Tacis programmes and the Interreg Community Initiative. Non-member countries receive financing under the first two programmes whilst measures in Member States are financed under Interreg.

2.6. Criteria for sustainable forestry

2.6.1. The sustainable management and use of forests has been adopted as a general principle in Europe. Sustainability means the use of forests and woodlands in a way that maintains their biodiversity, productivity, capacity for regeneration and vitality, as well as their potential to fulfil, both now and in the future, relevant ecological, economic and social functions, at local, national and global level, without causing damage to other ecosystems. Thus ecological, economic and social sustainability must be taken into account in the management and use of forests.

2.6.2. There are several criteria for sustainable forestry - the first follow-up meeting to the Helsinki conference divided the criteria into six categories:

1) forest resources and the carbon cycle;

2) productive functions of forests;

3) socio-economic functions of forests;

4) biodiversity;

5) protective functions of forests;

6) health of forests.

A set of descriptive and quantitative indicators was drawn up for each category; consideration should be given to actively involving the regions in drawing up their own indicators.

2.6.3. Whereas, formerly, considerations related to timber production were paramount in forest management, the situation has changed given the increased importance attached to the biological diversity (biodiversity) of forests. Biodiversity is construed to mean diversity within species, between species and of ecosystems.

2.6.4. In the management of commercial forests, biodiversity can be taken into account by applying silvicultural practices at the individual forest stand level and by emulating nature's own regenerative cycle. However, this must be complemented by specific conservation measures for the protection of threatened species, such as the establishment of conservation areas or restrictions on forest use. In some cases, it may be necessary to protect ecosystems by creating conservation areas which are wholly or partly outside the scope of commercial use.

2.6.5. At present, the EU supports the protection and enhancement of biodiversity by means of two directives: the Wild Birds directive (79/409/EEC) and the Habitats directive (92/43/EEC). On the basis of the latter, preparations are currently under way for the creation of Natura 2000, a Europe-wide network of conservation areas comprising the natural habitats designated in the directive.

2.6.6. Factors affecting the health of forests, such as acid deposition and damage of various kinds, were discussed in point 2.1. Other criteria for measuring the health of forests include the nutrient balance of the soil and growing stock and crown defoliation. The proportion of forests exhibiting defoliation ranges from 6 % of forest area in Portugal to 37 % in Denmark. Defoliation is caused by, inter alia, adverse climatic conditions, the ageing of the growing stock, insects and fungal diseases and air pollution.

2.6.7. Forests protect the soil against erosion and desiccation; in mountainous areas they provide protection against avalanches. They provide for the steady replenishment of sources of drinking water. However, forests cannot indefinitely continue to absorb acids and nutrients which exceed the natural buffer capacity of forest ecosystems.

2.6.8. Forest resources affect sustainability through e.g. the volume of the growing stock and favourable developments in the forestry sector (see points 2.1.10 and 2.1.11). The age structure of the growing stock should be optimal, with trees of all age-classes adequately represented and spatially balanced so as to ensure an even cutting regime. If a large proportion of the forest consists of old or untended trees in poor condition, the carbon balance is at risk, because, as the forest decays, it emits more carbon dioxide than the rest of the growing stock is able to absorb.

2.6.9. Measures of the productive functions of forests include the ratio between growth and removals of wood and the effects of silvicultural practices and basic improvements (see points 2.1.11-2.1.14). The price of timber is largely determined by market conditions but a sufficiently high price acts as an incentive to forest owners to tend their forest and to take biodiversity into account in forestry management practices. No statistics are available on the economic value of non-wood commodities obtained from forests such as mushrooms and berries, but they can be of major significance regionally.

2.6.10. The socio-economic function of sustainable forestry has many facets. The employment potential of the forestry sector and associated industries is important given the high unemployment rates currently besetting the EU. The cultural values attached to forests, as manifested in people's attitudes towards nature and in cultural works of various kinds, are social criteria which are easy to recognize but difficult to measure. Emphasis needs to be placed on the importance of family-run forestry industries for sustainable forestry, as well as for a living rural environment.

2.6.11. Recently, the need for participation by citizens in decision-making concerning forestry has been emphasized. But consideration of what forms participation should take has demonstrated how difficult it is to find an arrangement which satisfies all the parties involved. The views of forest owners, the forest industry and conservationists are not always compatible. Planning based on participation is easier to implement in State or municipally-owned forests, which are in a sense the common property of citizens. In private forests, operations are to a large extent steered by legislation, guidelines on forestry practice, education and training, advice and the quality requirements of timber buyers.

2.6.12. Demands by industry and consumers for timber and forest products which have been produced in a sustainable way have led to the need for forest certification and eco-labelling. Certification schemes or other systems of proof for sustainable forest management are now under consideration at national, EU and global level.

3. Problems and opportunities for the forestry sector in the EU

3.1. Problems

3.1.1. The biggest problem facing forests in the long run is the damage caused to the growing stock and soil by pollution. Although pollution from industrial sources, especially SO2 emissions, have been reduced over the past two decades, traffic emissions, particularly nitrogen oxides and the increase in the ground-level ozone concentration, remain a major problem.

3.1.2. As was noted in point 2.1.18, forest fires are a serious problem in southern Europe. Many of the areas ravaged by fire are situated in rugged, sparsely-wooded and difficult terrain where both fire prevention and forest regeneration are difficult. The countries concerned feel that EU assistance for fire prevention and reafforestation of areas swept by fire is inadequate, given the scale of devastation. Fire prevention in particular is recognized as an important form of Community funding. In order for fire prevention to be more effective, there should be more investigation into the causes of fires. The causes vary from region to region: for example, climate, desiccation, rural depopulation, unsuitable grazing practices or tourism may be the initial cause.

3.1.3. People's indifference towards forests could become a problem in EU countries where woodland tracts are small or of little commercial significance, with the result that the economic and protective value of forests is underrated. Moreover, people's understanding of the importance and effects of silvicultural practices (tending, logging, protective measures) is decreasing along with urbanization.

3.1.4. Forests are also exposed to the risk of damage by insects and fungi, pollution and depletion of groundwater, abuse of the legal right of access to private land (everyman's right) in some EU countries (e.g. Sweden and Finland) and damage caused by natural hazards such as storms and snow. It should be possible to inspect timber imports from outside the EU and timber transported between Member States to ensure that they do not carry insect pests.

3.1.5. Incorrect logging and management practices can endanger the biodiversity of forests and weaken their resistance to pollution. For example, the single-species regeneration of extensive tracts of felled areas, the introduction of non-indigenous species and the planting or sowing of reproductive material which is too far from its genetic origin are a potential threat to the well-being of forests. Leaving large areas of forest outside the scope of systematic management and logging can have the same effect.

3.1.6. Environmental terminology differs considerably from one country to another, as the COR discovered when drawing up its own-initiative opinion on regional nature parks. In order to obtain comparable international data on e.g. conservation areas, a standard terminology should be developed, at least for the compiling of international statistics. Similar types of conservation area could then be included in the same category, although countries could go on using their own concepts for 'everyday` purposes.

3.1.7. Finding a balance between the various functions of forests is not easy. There has not always been enough time to consult landowners when implementing conservation programmes, and this may have delayed implementation, even in the case of common-sense projects. Forest and land-use planning which falls within the remit of local and regional authorities offers a good opportunity for reconciling conflicts involving different uses of forests and land.

3.1.8. Outside Europe, particularly in the Far East and Southeast Asia, production in the forest industry has increased and the competitiveness of forest industry products has improved in relation to European producers. Fast-growing plantation forests produce high-quality raw material, which is processed locally. The EU currently accounts for some 20 % of world pulp production and 26 % of world paper production. If EU producers are to retain their competitive position, they will have to invest heavily in product development and raising productivity. Since tariff barriers can only be used to counter dumping, the only option open to EU producers is to improve competitiveness.

3.1.9. A more serious threat than the competitiveness of forest industry products as measured in terms of quality or cost-effectiveness could arise if consumers were to adopt a negative attitude towards forest products. The ecological competitiveness of forest products will be forgotten if people do not receive sufficient information about it.

3.1.10. The fragmentation of forest ownership in many EU countries has become a problem because very small forest holdings are of no economic significance to their owners. Moreover, reaching these owners by way of advisory services and education and training is no easy task. On the other hand, small-scale forest ownership is conducive to small-scale management practices and thus a guarantee that the biodiversity of forests is preserved.

3.1.11. The administration of forestry-related matters within the EU is dealt with by various directorates-general. It is not always necessarily recognized that a decision taken in a particular policy area has a bearing on the forestry sector. Although the role of the forestry unit and the Standing Forestry Committee has been enhanced, the coordination of forestry matters is still not adequate. The same shortcoming is also evident in the structure of framework programmes, where forestry projects are allocated to different research programmes.

3.2. Opportunities

3.2.1. The increase in EU forest resources and the long-continued low level of fellings in relation to growing stock have created scope for an expansion of capacity in the forest industry. Such an expansion would raise the EU's degree of self-sufficiency in forest industry products and improve the prospects for exports outside the EU. It would also create new jobs in both the forestry sector and associated industries.

3.2.2. Small-scale mechanical processing of wood is a potential source of new jobs in the countryside. Remote rural areas, in particular, are often in the position of raw-material producers, as timber is transported to other areas for processing. For processing operations to succeed, there must be cooperation, for example in the form of subcontracting chains headed by large companies or cooperatives made up of several small enterprises. Consideration should also be given to the training of entrepreneurs. Other priority areas include entrepreneurial skills, product development, marketing and development of product quality systems.

3.2.3. Structural Funds assistance is available for financing initiatives of this kind in Objective 1, 5b and 6 areas. In addition, Leader II offers good opportunities for implementing innovative projects with a demonstration value under the funding categories B3 (Increasing the valueadded of agricultural, forestry and fishing products) and C (Transnational cooperation projects).

3.2.4. ESR financing is available in the same Objective areas for training various interest groups in sustainable forestry management practices.

3.2.5. Other products can be made from wood besides paper, construction timber and furniture. Examples include chemicals, dyes, ornaments, smoke-curing materials and even foodstuffs. Cork obtained from the cork-oak has for long been used as a raw material. Metal and plastic articles or spare parts manufactured from non-renewable natural resources could be replaced by products manufactured from wood, provided there is adequate investment in research and product development.

3.2.6. Considerable scope exists for increasing the utilization of wood as an energy source. In many countries small-dimension and low-quality wood which is unsuitable for other industrial purposes is available in large quantities. For example, forest owners could form cooperatives to supply residential and office buildings, villages and even small municipal centres with heating. This could be combined with electricity generation. Similarly, power stations could use waste wood from sawmills, wastepaper and paperboard as fuel.

3.2.7. Utilizing wood as a fuel would yield economic benefits not only for individual regions but for the Union as a whole. It would reduce reliance on imported fossil fuels and their hazardous long-distance transportation, as well as creating job opportunities in rural areas. Wood causes a relatively low level of emissions when burned correctly and, moreover, is CO2 neutral. Developing the logistics of the use of wood-based energy still requires further work, as does the processing of chips into briquettes and the burning of chips in wet form.

3.2.8. Tax measures or action to promote investment in relatively expensive wood-burning plants could be used to favour the use of wood for energy purposes, assuming that Member States wish to exploit the benefits of this energy form to the full.

3.2.9. The use of wastepaper as a raw material constitutes both an opportunity and a problem. If paper is used again in the production process, it relieves pressure on landfill sites. Fibre cannot be recycled indefinitely, however; a certain amount of virgin fibre is always needed. Studies should be made to assess the overall economic costs and benefits of using recyclable fibre so as to avoid artificial solutions favouring recyclable fibre. Burning wastepaper as a fuel is another option which deserves to be given serious consideration.

3.2.10. There is potential for using 'non-food` agricultural crops in the manufacture of paper. Besides keeping arable land in production, the fibre obtained from these crops can be used to enhance the printing qualities of paper.

3.2.11. Forests offer increasing scope for tourism and recreation. Tour operators already organize hunting and hiking holidays in woodland areas; they could complement their product range by giving tourists the opportunity to see at first hand how forestry is practised. Assistance is available for the implementation of development projects under the EU's programmes in the Objective regions and the Leader initiative.

3.2.12. More conscious efforts could be made to use forests to combat the greenhouse effect and to prevent environmental damage caused by man and nature itself.

4. The European Parliament Resolution on the European Union's forest strategy

4.1. On 18 December 1996, the European Parliament adopted a resolution on the EU's forestry strategy. According to the resolution, the strategy should be based on the following principles:

a) it should be global and unitary in character;

b) it should encourage solidarity within the sector;

c) it should respect subsidiarity, i.e. be subordinate and complementary to national schemes.

4.2. The Parliament identifies the following areas where action is needed at EU level, with due regard for subsidiarity:

a) protecting forest resources;

b) protection against fires;

c) preserving biodiversity;

d) measures affecting the general environment;

e) development of the recreational value of forests;

f) increasing the value of forest resources.

4.3. The proposed action points as regards protecting forest resources are:

- set guidelines for sustainable forest management;

- provide encouragement for regeneration of woodland;

- control standards of imported material (against pests, parasites, diseases);

- increase phyto-sanitary monitoring to include all aspects of forestry and increase funding as appropriate;

- encourage research and development of environmentally acceptable methods of controlling insects and diseases;

- ensure that other EU policies relating to atmospheric pollution, building development, etc. take forestry into account;

- ratify the UN Convention on climate change;

- promote the search for an integrated and sustainable human-game-forest balance corresponding to modern ecological, socio-cultural and economic requirements;

- integrate wildlife requirements when planning and managing forests;

- conduct further research into factors influencing game damage, and the participation of forestry owners, hunting rights owners and the general public.

4.4. The proposed action points as regards protection against fires are:

- the present action under Regulation (EC) No 2158/92 is insufficiently funded and additional finance should be provided for replanting burnt areas;

- the resources of the Structural Funds earmarked for protection of forests against fire should be used in a more coordinated fashion;

- further research should be undertaken into the methods of preventing, detecting and fighting fires, and help be given to specialized centres;

- introduce greater coordination with existing measures at national, regional or local level, with the participation of the competent authorities and the Standing Forestry Committee;

- develop further the database to improve the system of protecting forests against fires.

4.5. The proposed action points as regards biodiversity are:

- increase funds available for Regulation (EC) No 1467/94 so that it can be fully implemented in the forestry sector;

- set out guidelines for the protection, maintenance and enhancement of biodiversity in forests;

- promote research into afforestation, particularly into monoculture;

- promote general knowledge for increasing biodiversity;

- promote research into the measurement and cost-effective enhancement of biodiversity;

- promote research into the impact of forestry practices on biodiversity.

4.6. The proposed action points as regards measures affecting the general environment are:

- the EU should encourage research into areas of activity affecting the environment;

- grant greater aid for afforestation to individuals and appropriate local and regional authorities;

- allow the annual premium by Member States to be increased and brought more into line with real costs;

- coordinate EU policies on related matters to take account of forestry;

- increase funds for CAP accompanying measures relating to forestry.

4.7. The proposed action points as regards development of the recreational value of forests are:

- where forests cross national boundaries, cooperation should be encouraged;

- recreational role of forests to be integrated within EU rural development policy.

4.8. The proposed action points as regards increasing the value of forest resources are:

- increase available budget over five years;

- help develop appropriate type-specific management guidelines;

- promote education and training in forestry, in particular by increasing knowledge in different Member States of practices in other Member States;

- promote research and wider understanding of the public benefits of forests;

- promote research and use of improved techniques;

- develop cooperation between users and owners, and the public and private;

- promote research into opportunities for marketing of wood;

- promote research into potential of wood as a source of energy;

- promote the use of improved genetic stock to enhance quality;

- promote better information about wood resources for the wood-processing industry.

4.9. As regards institutional organization, the European Parliament calls for the expansion of the role of the Standing Forestry Committee to encompass eco-certification, phyto-sanitary measures, reproductive material and forestry research, with a view to making it the main instrument for the coordination of forestry policies. The Parliament also proposes that action be taken to speed up the development of Efics (the European system of information and communication).

4.10. If implemented, the measures proposed in the resolution would require additional EU financing of ECU 353 million/yr, or some ECU 1,765 million over a five-year period.

5. The Committee of the Regions' views on EU forestry strategy

5.1. General comments

5.1.1. The COR endorses the European Parliament's view to the extent that Community measures for sustainable forest management, control of atmospheric pollution and reduction of forest fires in line with the Rio and Helsinki conferences should be complementary to national forestry policies.

5.1.2. The COR would highlight the importance of introducing the principles of sustainable forestry in forestry management and use at EU, national and regional level. The Commission should, in all its actions, encourage the application of these principles so that all the elements of sustainability - ecological, economic and social - are given equal weight.

5.1.3. In the COR's view, the EU's role in international forestry matters is to present the Member States' coordinated positions on the issues under discussion. Among the issues which the EU should seek to promote at international level are prevention of climate change and the establishment and adoption of measures and general indicators to promote sustainable forestry and biodiversity, including preventive measures against pests carried in timber.

5.1.4. The EU can best support the forestry sector by promoting training, research, information and advisory services and by providing assistance for development initiatives in the countryside.

5.1.5. Forestry is an economic activity which is constantly evolving and it is not therefore appropriate to create a support system for it along the lines of the CAP. In the view of the COR, the current level of financial resources available for the support of forestry is adequate and will remain so in the future, especially considering the EU's budgetary situation. There could, however, be a reordering of priorities within the financial framework, providing that other needs do not preclude it, so as to make more funds available for the prevention of forest fires in southern Europe and the restoration of areas ravaged by fire.

5.1.6. The COR calls on the Commission to take urgent steps to set up an advisory committee on forests which would provide the regions and the relevant interest groups, such as forest owners, industry, workers, persons holding hunting rights and conservationists from the Member States, with a channel for making known their views to the Commission.

5.1.7. The COR supports the organization of international meetings intended to develop knowhow and exchange of experience in the forestry sector. The existing cooperation structures for the Atlantic, Baltic, North Sea, Mediterranean and other areas could be suitable fora for such exchanges.

5.2. Proposals concerning forest management measures

5.2.1. The COR agrees with the European Parliament that the EU should agree on guidelines for forest management, and general principles, such as those of sustainable forest management. It is the task of the Member States and the regions to draw up actual recommendations for forest management at national level, based on, inter alia, the ecological state of forests, the age and structure of the existing growing stock and the priority attached to each of the functions of forests. In most countries, it is necessary to complement national recommendations with regional recommendations. The Committee points out, however, that in many Member States and regions specific, binding forestry rules exist on sustainable, orderly forest management.

5.2.2. The Commission should support Member States in their efforts to draw up long-term plans for the use and management of forests, which would be subject to periodic revision, as it is only through a systematic approach that lasting positive results can be achieved.

5.2.3. The COR would underline the importance of the Commission's support measures, such as funding research, in developing ecological forest management techniques and determining their overall economic benefits. Ecological management techniques include the regeneration of forests on a small-scale basis and the use of primarily local species for the regeneration of diversified forest stands. The provenance of reproductive material should be suitable for the woodland concerned.

5.2.4. The COR proposes that, when revising the directives governing trade in seeds and seedlings, the Commission take into account the factors governing the use of reproductive material which is best suited to the area in question, such as the provenance of the reproductive material, size and type of seedlings, etc.

5.2.5. In order to provide the EU and Member States with access to reliable quantitative and qualitative data on forests, a forest inventory system, consistent with the best available common system, should be introduced.

5.3. Proposals concerning the use of forests

5.3.1. The COR welcomes the Parliament's endorsement of the multiple-function role of forests. In most woodland areas, the commercial and recreational functions of forests can be combined by applying the principles of sustainable use.

5.3.2. In the view of the COR, the Commission should support research into the development of new, highly-processed products so as to preserve the relative competitiveness of EU forest products.

5.3.3. The COR supports the Commission's proposal for streamlining the structure of research activities under the fifth framework programme. The programmes in the proposed priority areas 'promoting competitive and sustainable growth` and 'unlocking the resources of the living world and the ecosystem` should include specific financial allocations for the development of forestry and the downstream processing of forest products, taking account of the long implementation periods for such projects.

5.3.4. The COR endorses the Parliament's proposals on promoting the use of wood as an energy source.

5.3.5. It is vitally important in connection with the reform of the Structural Funds to ensure that resources are made available for supporting the development of micro and small enterprises engaged in wood processing. This also includes promoting cooperation between enterprises and encouraging the development of regional quality labels.

5.3.6. In the view of the COR, it is important to finance research projects and pilot schemes looking into the use of virgin fibre, recycled fibre and fibre from 'non-food` agricultural crops in the manufacture of forest industry products. Research should focus on determining the economic lifetime of fibre as well as finding good combinations of fibres and other uses for recycled fibre, e.g. in energy production.

5.3.7. The quantities of virgin and recycled fibre used should not be regulated by artificial constraints, financial support or taxation measures.

5.3.8. The COR warmly welcomes the Parliament's proposal for a training and information campaign on the importance of forests and forest products. The campaign should emphasize the properties of wood as an environmentally-friendly raw material and should target consumers, school children and students, in addition to industry and civil servants.

5.4. Proposals concerning conservation measures

5.4.1. The COR believes that it is the EU's task to establish recommendations on the biodiversity of forests which each Member State can then adjust in line with regional considerations.

5.4.2. The COR would stress the importance of protecting private ownership of forests and the contribution private ownership makes in forest conservation and development of sustainable forestry.

5.4.3. The COR supports initiatives for the protection of valuable natural areas and landscapes. The Natura 2000 programme is important in this respect. However, conservation measures must be implemented with due regard for subsidiarity; that is, local people, and especially forest owners, must be consulted. Similarly, conservation programmes must be in correct proportion to available appropriations. The COR would also stress that land-use planning which falls within the remit of local and regional authorities offers good opportunities for defining conservation areas and settling conflicts of interests. For example, the establishment of regional and national parks is in keeping with these objectives.

5.4.4. The COR would underline that, when defining recommendations and general criteria for a forest certification system, the EU must take into account the fact that each Member State and region should be allowed to adapt the system to its particular circumstances. The system should be voluntary and reflect forest ownership patterns, timber trade practices and natural conditions. The system should be cost-effective so that no party incurs unreasonable costs as a result of the implementation or monitoring of certification.

5.4.5. When planning the contents of the EU's fifth R& TD framework programme, it is essential that funding be made available for research into the effects of environmental damage on forests, on the one hand, and the impact on the environment of forests and forest management practices on the other.

5.4.6. In the view of the COR, implementation of Regulation (EC) No 307/86 is especially important in that it will allow the monitoring network for measuring the state of forests to become fully operational and enable the completion of the Efics forest information system.

Brussels, 19 November 1997.

The Chairman of the Committee of the Regions

Pasqual MARAGALL i MIRA