Press conference of the GCC Ministers, 29 April 2003

ENHANCING ECONOMIC VIABILITY OF SUSTAINABLE FOREST MANAGEMENT IN EUROPE

Mr. Chairman.

In order not to duplicate the interventions made previously by the ministers from Austria and Poland, I would like to use this opportunity to focus on a specific issue relevant for this ministerial conference, notably the economic viability of the forest sector in Europe.

An economic viable forest sector is a prerequisite for sustainable forest management. Forests provide a broad range of benefits for society. Forests are basis for the supply of necessary and environmental friendly products. They are also essential for providing environmental, protective, social and recreational services. In order to obtain the supply of these goods and services, an economic viable sector is nesessary.

In several European countries, including Norway, the forest sector has through the recent years faced decreased profit margins from traditional forest products. At the same time we have experienced an increase in the demand for a diversified range of non-wood goods and services, both marketable as well as currently non-marketable.

This situation is likely to continue and raise a number of challenges. Several stakeholders, both private and public, within and outside the forest sector, have significant roles to play in dealing with these challenges. We policy makers should contribute through innovations in policy and legal frameworks and in the use of economic instruments.

In our efforts to enhance the economic viability, the European countries will benefit from cooperation. This ministerial process is an arena for exchange of experience and discussions on policy strategies. Here in Vienna, the forest ministers will make commitments on future actions. Among the priority areas I would highlight the following:

• Promote the use of wood.
  Wood is an environmentally friendly, renewable and reusable raw material. Increased use off wood, as alternative to non-renewable resources, will contribute to more sustainable production and consumption patterns. We should improve conditions favourable for the production and use of wood products as well as bio-energy from forest resources. (Also a significant aspect in the context of climate change)

• Improve conditions for the market-based provision of non-wood goods and services.
  I see a great potential for the forest owners to increase their revenues from non-wood products and services. For Norway, tourism, recreation, hunting and fishing represent some key areas. I would though underline that several significant public assets will remain free. Free access to all forests is an ancient public right in my country. Likewise is the right to camp, and to pick berries and mushrooms.

• Enhance the competitiveness of the forest sector.
  I see a need to promote innovation and entrepreneurship. Forestry and persons involved are rooted in long and historical traditions. There is time for new thoughts and ideas, and more focus on new and improved products. We should support research targeted at this and enhance the quality of education, training and extension. It is necessary to improve the communication along the value chain from forest to market.