Report

The role of forestry and timber in a modern, green society

10.6.24 2024

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The UK has a productivity problem. One overlooked solution lies in the forestry sector. A strategic approach to increasing our domestic timber production and use could not only help decarbonize the construction sector but also provide a significant productivity boost to the UK.

Growing the domestic forestry and timber sectors, which contribute over £2 billion to the UK economy, can create new jobs, especially in rural areas. Demand is set to climb as the government backs timber construction in its Net Zero Strategy. But meeting this demand requires decisive action now.

It’s not just about planting more trees. We need a holistic, strategic approach to regulation that considers the entire supply chain and the complex trade-offs in land use, encompassing everything from the types of trees we plant and where we plant them to the development of our domestic timber processing capabilities and the sustainable policies we put in place. It all matters.

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Reducing reliance on imports

The UK’s reliance on imported timber, especially engineered wood, is staggering. In 2021, over 80% of our wood and wood products were imported, leaving us vulnerable to global market volatility and supply chain disruptions. And we miss out on the economic benefits a thriving homegrown forestry sector could deliver.

Greater self-sufficiency demands investment in domestic facilities and expertise to produce value-added products like CLT and glulam. These engineered wood products are crucial for using timber in larger and taller structures, yet we do not currently produce them domestically. Capturing more value from our forestry would support jobs and communities, especially important in the context of the UK’s post-Brexit economy.

Strategic land use

Forestry land use must be strategic to optimize productivity. While planting trees on our most productive agricultural land is not sensible due to food security concerns, there are significant opportunities to expand woodland cover on less productive land, particularly in the North and West of Britain. The UK government has a target to increase woodland cover from 14.5% to at least 16.5% by 2050. This will require significant new planting.

We need to consider the right species for the right locations, balancing commercial considerations with environmental and social factors. It’s important to note that these new forests should not be limited to a single species. We need a mix of native broadleaf woodlands to promote biodiversity and carbon sequestration, along with faster-growing conifer plantations for timber production and helping to decarbonize the UK’s construction sector. Around 40% of UK carbon emissions are linked to the built environment, which includes emissions from heating buildings, energy consumption for operations, and construction activity.

The climate change mitigation value of commercial forestry is often overlooked in favor of native woodlands. A well-managed Sitka spruce plantation sequesters almost 10 times more carbon than even high-density oak over 50 years. When that timber is harvested and used to replace carbon-intensive materials like concrete and steel in buildings, the carbon savings are multiplied.

Policies and benefits

Implementing land use change at this scale will not be easy. Forestry must be at the forefront of our climate policies. It will require more than money; strong political will and significantly improved civil service skills, experience, and capacity to support woodland creation applications, especially in England and Wales. We need policies and support systems that encourage landowners to plant trees and manage forests sustainably while ensuring local communities are engaged and supportive.

The Government’s ‘Growing the Future: 2021-26’ document outlines Forestry England’s five-year plan and priorities for sustainably managing the nation’s forests. It includes financial incentives for woodland creation, streamlined planning processes, and technical support for landowners for sustainable woodland creation and management to boost productivity. So far, however, all countries across the UK are behind their stated planting targets, especially in England and Wales, where figures are not just well behind—they have planted virtually no meaningful areas of productive commercial forestry, which our nation so desperately requires.

But we also need to invest in skills and training to build a workforce capable of managing and processing this increased timber supply. Crucially, these policies must be long-term and stable, providing the certainty needed for businesses to invest and for forests, which are inherently long-term projects, to be planted and managed sustainably.

If we get this right, the benefits for UK productivity are substantial. We can store millions of tonnes of carbon in new forests, create thousands of green jobs in the forestry sector, and produce the sustainable, low-carbon building materials needed for the next generation of high-quality, affordable homes in the UK.

The foregoing simply considers the benefits of forestry and timber to the future green economy; however, the UK’s woodlands, both commercial and native, provide a myriad of wider societal benefits—from biodiversity to flood attenuation and public access—making it truly sustainable.

We have a once-in-a-generation opportunity to reshape our landscapes for the better, creating a more sustainable, productive economy in the process. The potential is there. Realizing it depends on the choices we make now.

Contact our team

Tim Barratt

Tim Barratt

Partner, Head of Forestry

Tim leads our specialist forestry team, covering strategic asset management, valuations, sales, acquisitions as well as EIA and professional contracts.

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The Productivity Engine

The Productivity Engine is our latest groundbreaking report that addresses the UK's stagnating productivity. What powers economic productivity? An easier question to answer may be what doesn’t. 

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