The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.
Background: In 2018, the European Union (EU) adopted Regulation 2018/841, which sets the accounting rules for the land use, land use change and forestry (LULUCF) sector for the period 2021-2030. This regulation is part of the EU's commitments to comply with the Paris Agreement. According to the new regulation, emissions and removals for managed forest land are to be accounted against a projected forest reference level (FRL) that is estimated by each EU Member State based on the continuation of forest management practices of the reference period 2000-2009. The aim of this study is to assess how different modelling assumptions possible under the regulation may influence the FRL estimates. Applying the interlinked G4M and WoodCarbonMonitor modelling frameworks, we estimate potential FRLs for each individual EU Member State following a set of conceptual scenarios, each reflecting different modelling assumptions that are consistent with the regulation and the technical guidance document published by the European Commission.
Results:The simulations of the conceptual scenarios show that differences in the underlying modelling assumptions may have a large impact on the projected FRL. Depending on the assumptions taken, the projected annual carbon sink on managed forest land in the EU varies from −319 MtCO 2 to −397 MtCO 2 during the first compliance period (2021-2025) and from −296 MtCO 2 to −376 MtCO 2 during the second compliance period (i.e. 2026-2030). These estimates can be compared with the 2017 national GHG inventories which estimated that the forest carbon sink for managed forest land was −373 MtCO 2 in 2015. On an aggregated EU level, the assumptions related to climate change and the allocation of forest management practices have the largest impacts on the FRL estimates. On the other hand, assumptions concerning the starting year of the projection, stratification of managed forest land, and timing of individual management activities are found to have relatively small impacts on the FRL estimates.
Conclusions:We provide a first assessment of the level of uncertainty associated with the different assumptions discussed in the technical guidance document and the LULUCF regulation, and the impact of these assumptions on the country-specific FRL. The results highlight the importance of transparent documentation by the EU Member States on how their FRL has been calculated, and on the underlying assumptions.
The European Union (EU) set clear climate change mitigation targets to reach climate neutrality, accounting for forests and their woody biomass resources. We investigated the consequences of increased harvest demands resulting from EU climate targets. We analysed the impacts on national policy objectives for forest ecosystem services and biodiversity through empirical forest simulation and multi-objective optimization methods. We show that key European timber-producing countries – Finland, Sweden, Germany (Bavaria) – cannot fulfil the increased harvest demands linked to the ambitious 1.5°C target. Potentials for harvest increase only exists in the studied region Norway. However, focusing on EU climate targets conflicts with several national policies and causes adverse effects on multiple ecosystem services and biodiversity. We argue that the role of forests and their timber resources in achieving climate targets and societal decarbonization should not be overstated. Our study provides insight for other European countries challenged by conflicting policies and supports policymakers.
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