UL and "Latvijas Finieris" have Launched an Extensive Study on The Development of The Forestry Sector

Author
University of Latvia

January 28, 2025

In order to analyze the economic, social, and ecological sustainability of Latvia’s forestry sector, the University of Latvia (UL), in cooperation with the concern “Latvijas Finieris” has begun a major research project. The aim is to develop balanced development scenarios that promote the sustainable growth of the sector and enhance its competitiveness at both the national and international levels.

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Photo: Thilo Becker, Pixabay.

Latvia's forests cover more than half of the country's territory, and the sector accounts for 4-6% of the gross domestic product. Around 40,000 people are employed in the industry. At the same time, forests are a crucial resource for preserving biodiversity and achieving climate goals.

"This study is a significant step towards the sustainable development of the forestry sector, where economic growth is combined with ecological balance and the promotion of societal welfare," emphasizes the scientific leader of the project, Mārtiņš Danusēvičs, lecturer at the Faculty of Economics and Social Sciences at the UL.

The importance of the study is further enhanced by its interdisciplinary approach, supported by UL's diverse academic and research activities, as well as its broad range of study programs. UL brings together expertise and knowledge in the areas of ecology, sustainability, economics, and law, providing a comprehensive view of the sector's development. This approach allows for the analysis of the impact of forestry on the economy and ecosystem services, as well as the development of solutions that comply with legal regulations, ensuring Latvia's long-term growth and societal welfare.

"Modern economic development can no longer be imagined without a data-driven approach, which allows for strategically sound and long-term effective decision-making. This comprehensive study presents a unique opportunity to strengthen the future competitiveness of Latvia's forestry sector while ensuring the sustainable management of natural resources. The collaboration with the University of Latvia will not only combine theoretical knowledge and practical experience but will also create opportunities to develop solutions that contribute to transforming Latvia’s economic development, promoting the overall sustainable growth of Latvia’s economy," says Māris Būmanis, a member of the board at "Latvijas Finieris".

The project "Economic Assessment of the Balanced Development Potential of the Latvian Forestry Sector and Development Scenarios" aims to analyze the current regulatory framework and its impact on the economy and ecosystem services, explore foreign experiences in sustainable forestry, and adapt them to the Latvian context. The project will also model development scenarios that balance economic, ecological, and social aspects, ensuring long-term welfare and resource preservation for future generations.

As a result of the project, detailed development scenarios will be created, covering various approaches, from intensive economic growth to conservation strategies. Specific recommendations will also be provided for policymakers to improve the regulatory framework and develop the sector’s strategy.

The results of the research are planned to be presented in the summer of 2025, involving industry experts, policymakers, and representatives of society. A scientific publication will also be prepared, and an international conference will be held to strengthen Latvia’s position in the global sustainable forestry discussion.

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