What are the economic and environmental advantages of the Baltic region?

  • 2025-01-17
  • Jānis Ruks, Forestry Expert of Climate technology start-up Arbonics

With climate change reshaping Europe and large companies striving to reduce their environmental footprints, the Baltic region is uniquely positioned to strengthen new economic and environmental advantages by becoming a leader in sustainable forestry and decarbonisation. Our region has significant forest cover, relatively lower land costs and the ability to adapt quickly to new technologies. By combining these factors, we can not only become a model for other countries and regions in sustainable forestry, but also boost economic growth and improve environmental sustainability.

Now that it is evident that forests must be part of the European and Baltic climate neutrality strategy, the only question is how quickly and effectively can they be integrated into the process? The sooner we find an answer to this question, the sooner we will be able to reap the benefits of our region. Cooperation between public institutions, private investors and local communities is key to unlocking this potential, promoting a situation where forests are fully used for both economic growth and environmental conservation.

Decarbonisation is now a key economic and environmental priority and the role of forests in mitigating climate change is critical. Although the financial sector traditionally prioritizes assets like stocks and bonds, the potential of forests is shifting from value based solely on timber prices to ecological and economic contributions. Forests are now seen as a strategic asset that, if properly managed, can deliver long-term economic returns while contributing to climate change mitigation. Moreover, experts predict that the value of forest land capable of generating carbon income could double by 2030. 

Transforming Challenges into Opportunities

Achieving the EU's climate neutrality targets requires not only increasing forest cover through afforestation, but also significantly improving the carbon storage capacity of existing forests through more efficient management practices, such as impact forestry, which focuses on increasing carbon sequestration potential. 

But regulations and restrictions are not enough to engage land and forest owners in achieving these goals. Financial incentives are needed to make carbon sequestration an attractive and sustainable business model. Such an approach would not only promote sustainable forest management, but also make an important contribution to local economic development.

The Baltic region's economic and environmental advantage lies in its ability to balance sustainable development with climate goals. With the region's vast forest cover, relatively low costs and openness to new technologies, the Baltics can become a leading example of how to combine economic growth with environmental preservation. By supporting landowners, promoting investment and collaboration between the public and private sectors, our region can become a leader in decarbonisation and sustainable forestry, creating long-term benefits for the economy and the planet.