Outlines for ownership policy concerning Metsähallitus – new objectives related to promotion of renewable energy, restoration of flowing waters and recognition of revenue
On 9 October 2024, the Ministerial Committee on Economic Policy discussed and supported the new outlines for the ownership policy concerning Metsähallitus for 2024–2027. Besides the reconciliation of different needs, new objectives have also been included. Among the topics concerned are the economic benefit from the operations of Metsähallitus to the State and promotion of biodiversity and renewable energy.
Ownership policy until 2027 is based on the core tasks of Metsähallitus and on the objectives that in part were agreed on during the ownership policy period that is now coming to an end. The main focus in the operations of Metsähallitus is still on the management, protection and sustainable use of state-owned lands and waters. These are ensured through extensive participation of stakeholders and by effective coordination of different kinds of needs and targets.
The key themes in the ownership policy objectives of Metsähallitus are biodiversity and climate change mitigation and adaptation. Besides these, the policy will focus on the economic benefits from the operations of Metsähallitus to the State and, during this ownership policy period, especially on ways to enable the production of renewable energy in state-owned areas. Among the new means for this period are substantial investments in the restoration of flowing waters.
“Besides the increasingly diverse operational targets, the responsible and profitable business activities of Metsähallitus in state-owned land and water areas that effectively coordinate the different objectives, combined with the development of new activities, make it possible to also raise the level of revenue from Metsähallitus to the State,” Minister of Agriculture and Forestry Sari Essayah says.
As part of the ownership policy concerning Metsähallitus, a decision was made to start the systematic restoration of brooks and small water bodies in state-owned multi-purpose forests.
“The priorities of the ownership policy concerning Metsähallitus combine in an important way the sustainable use of our forests, restoration of habitats, transition from fossil to clean energy and responsible management of central government finances. In particular, the development of offshore wind power in Finland’s territorial waters is an important element in our new industrial policy,” Minister of Climate and the Environment Kai Mykkänen says.
Metsähallitus promotes biodiversity in commercial forests through active nature management measures and by participating in the implementation of the Helmi Habitats Programme. The new objectives for Metsähallitus Forestry Ltd include restoring about 200 kilometres of brooks by 2030.
The criteria for old-growth forests were circulated for comments in summer 2024 and they will soon be submitted to the Government for adoption. Metsähallitus will conduct a survey of old-growth and primary forests during the field seasons 2024–2025. A proposal concerning the designation of 31,000 hectares of areas located on state-owned lands for permanent protection will be submitted to Parliament in connection with the third supplementary budget.
Carbon sequestration and stocks in commercial forests will be increased. Continuous-cover forestry will be used in areas reserved for recreational use and in wood harvesting carried out as regeneration felling when this is justified from the perspective of forest management and site conditions. In addition, the growth of forests and increase in carbon sinks will be strengthened through fertilisation.
Recognition of revenue raised without increasing felling volumes
During the ownership policy period that is now getting started, the funds from Metsähallitus recognised annually as revenue to the State will be higher than ever. In the beginning of the period the level of the funds to be recognised as revenue will be about EUR 125 million and at the end of the period this will be about EUR 140 million. This will not require higher felling targets for state-owned forests because the good price level for wood and revenue from promoting the production of renewable energy will enable a higher level of funds to be recognised as revenue.
Metsähallitus will continue the development of renewable energy projects in state-owned land and marine areas. Metsähallitus will lease the areas to companies that produce energy and can also participate in the development of projects together with other operators. The role of Metsähallitus is to promote the green transition, not to produce energy. Metsähallitus will continue the project development concerning five offshore wind power areas in public waters off the west coast in accordance with the steps and phasing adopted by the Government in November 2022.
Ownership policy concerning Metsähallitus is outlined for each Government term, which as a rule means for four years at a time. The process is led by the Ministry of Agriculture and Forestry and Ministry of the Environment, which are responsible for the ownership steering of Metsähallitus. The purpose of ownership policy is to set the main principles and objectives for Metsähallitus from the policy perspective for a period that is longer than in the annual performance guidance.
Inquiries:
Tapio Luoma-aho
Special Adviser to Minister of Agriculture and Forestry Sari Essayah
[email protected]
+358 295 162 340
Erno Järvinen
Senior Ministerial Adviser, Head of Forests and Bioenergy Unit
[email protected]
+358 295 162 150
Leena Arpiainen
Ministerial Adviser, Ministry of Agriculture and Forestry
[email protected]
+358 295 16 2238
Lyydia Ylönen
Special Adviser to Minister of Climate and the Environment Kai Mykkänen
[email protected]
+358 295 250 402
Päivi Gummerus-Rautiainen
Senior Ministerial Adviser, Ministry of the Environment
[email protected]
+358 295 250 240
Mikko Kuusinen
Senior Ministerial Adviser, Ministry of the Environment
[email protected]
+358 295 250 144