Green transition of forest industry in Finland

Summary: The work presents a case study of the Finnish forest industry and its transition towards circular economy. An assessment framework is developed to map the optimal transition pathway considering interest-related stakeholders and accounting for regional challenges. The assessment tool is based on life cycle thinking and evaluates the potential impacts of the chosen pathway. Lignin valorisation was chosen as the transition pathway for the forest sector in Finland. Sustainability benefits of lignin valorisation pathways have been quantified to give recommendations to policymakers.

Introduction and Aim: The forest industry in Finland is partly circular, but there is scope for improvement in utilising the side-streams. The chemical pulping industry is a significant sector of Finland's economy, exporting 15 billion euros annually. The energy produced from black liquor accounts for 46 TWh annually. This study aims to show the potential of how lignin can be converted into high-value products instead of being used for low-value energy purposes. Further
valorisation of lignin extracted from black liquor provides pathways towards green transition. The impact of green transition is evaluated using the assessment package developed in the project.

Methodology: In the first step, detailed background research was done to map the Finnish forest sector's secondary streams, challenges and barriers. In the second step, workshops with stakeholders were carried out to select the transition pathways for valorising side-streams. Once the pathways were decided, the assessment tool was used to assess the potential impacts of the
transition. A set of environmental and socio-economic indicators was used for the evaluation. The value of indicators was used to decide the most effective way of using lignin to replace fossil-based material. This study is part of the BIOTRANSFORM project evaluating six case studies in Europe.