How to cope with changing demand conditions - The Swedish forest sector as a case study: an analysis of major drivers of change in the use of wood resources

Promotion of renewable energy sources in Europe is foreseen to result in a dramatic increase in the demand for woody biomass. This paper assesses whether wood resources in the European Union (EU) will support future demand. Possible implications for countries with ample forest resources and a well-developed forest industry, such as Sweden, of an expected mounting demand pressure are discussed. Other drivers of change in global wood product markets posing challenges for the forest sector in general are also addressed. These drivers are reviewed and, together with the results from the EUwood project and econometric wood market models, analyzed as to their impacts on the Swedish forest sector. Demand is foreseen to vastly exceed the potential supply of woody biomass in Europe, putting a tremendous pressure on the Swedish forest resource and necessitating trade-offs between different ecosystem services. Further, projections suggest that Sweden will decrease in importance in production as well as consumption terms for all wood products.