European Forestry Pulse #37 🌲

Hello,

This week, the European Parliament votes on EUDR amendments. The Council already adopted its position November 19: delay large operator deadline to December 2026. Small operators get until June 2027. No grace period. Clean extension.

The vote happens while you read this. By Thursday, we'll know if Parliament agrees or forces negotiations into December. Meanwhile, forest professionals face impossible planning conditions. Invest in compliance now? Wait for final clarity? The regulatory chaos continues.

But markets keep moving: Kronospan preserved 500 Romanian sawmill jobs through acquisition. Koskisen invests in 15% sawmill capacity expansion. Germany's lumber exports fell another million cubic meters. And ESA's revolutionary Biomass satellite now measures forest carbon from space.

Here's what's moving European forestry this week:

The Council of the European Union officially adopted its negotiating mandate November 19 for targeted EUDR revision. The position is clear: postpone implementation by exactly one year. No enforcement grace periods. Clean extension.

The Council's timeline:

The simplification mandate: The Commission must complete comprehensive EUDR review by April 30, 2026. The review could lead to legislative proposals further streamlining requirements. Micro operators in "no-risk" countries might provide traceability via postal codes instead of precise GPS coordinates.

This week's Parliament vote: The European Parliament votes on its position during the November 26 plenary session in Strasbourg. The Parliament's centrist majority split over delays. The European People's Party pushes for postponement. Other groups resist weakening the regulation. The vote determines whether Council and Parliament enter fast-track negotiations or prolonged trilogue.

Member state divisions: A majority of EU countries support the delay. But France and Spain oppose postponement. Germany remains internally divided. The December 30, 2025 deadline stays legally binding until Parliament and Council formally adopt amendments and publish them in the Official Journal.

Why this matters: Forest professionals gained clarity on the Council position but still face uncertainty about final implementation. The current deadline remains law. The delay proposals are not yet binding. Companies investing early in compliance systems now compete against those betting on further postponement. The regulatory uncertainty penalizes preparedness.

What this means for you: Continue preparing for December 30, 2025 compliance until legally binding changes are published. The grace period is gone. The delay is not yet law. The existing deadline is still the only legal requirement. Hoping for delays is not a compliance strategy. Plan as if December 30, 2025 is real. Adjust only when final legal texts are official.

The broader signal: When EU institutions take a year to agree on implementation timing for their own regulation after it was already adopted, it reveals deeper problems. The EUDR was supposed to create legal certainty. Instead, it created regulatory uncertainty. Forest professionals remain caught in the middle. Sources: Daily Coffee News | Koltiva | ESG Today | Euractiv

Kronospan announced November 24 it acquired ZG Timber Sebeș sawmill in Romania. The transaction preserves over 500 jobs at the facility. Financial terms were not disclosed.

The acquisition adds sawn timber production to Kronospan's existing particleboard and MDF operations at its Romanian manufacturing complex. ZG Timber Sebeș processes softwood logs into dimensional lumber for construction and industrial applications.

Kronospan operates multiple wood-based panel facilities across Central and Eastern Europe. The company ranks among Europe's largest manufacturers of engineered wood products. Adding sawmill capacity strengthens vertical integration and secures raw material supply for panel production.

Romanian forestry employs over 30,000 people in processing and manufacturing. Major sawmill acquisitions signal continued consolidation in the Central European timber industry despite weak construction demand.

The takeaway: Major Central European consolidation continues as large players acquire sawmill capacity to secure fiber supply and strengthen vertical integration. Source: Kronospan press release

Finnish forest industry company Koskisen is investing in new channel dryers at its Järvelä sawmill to expand drying capacity by approximately 15%. The investment will raise annual production from 400,000 cubic meters to 450,000 cubic meters of sawn timber.

The expansion addresses production bottlenecks in the final processing stage. Foundation work is currently underway with equipment installations scheduled to begin after the turn of the year. The new capacity is scheduled for commissioning during Q3/2026.

The company reported improved profitability in its sawn timber segment during the January-September 2025 period, driven by enhanced productivity. The existing drying capacity at the Järvelä sawmill currently limits sawing volumes, making this expansion critical for achieving production targets.

Koskisen's counter-cyclical investment signals confidence in Nordic sawmill recovery and positions the company to capture market share when demand rebounds.

The takeaway: Major Finnish sawmill invests in expansion despite weak market conditions, signaling confidence in 2026 recovery and positioning for increased market share. Sources: Koskisen Corporation | Global Wood Markets Info

German softwood lumber exports fell approximately 1 million cubic meters in 2025 through October compared to the same period in 2024. The decline reflects ongoing supply constraints and weak international demand.

Domestic German sawmills face severe spruce log shortages. Many mills reduced working hours or implemented short-time work schedules. The timber shortage stems from unusually wet, cool summer conditions in 2025 that limited bark beetle populations and reduced storm damage requiring salvage harvesting.

Export markets remain challenging. Construction demand in key European markets stays weak. Price competition from Nordic suppliers intensifies. German mills prioritize domestic sales over exports when log supply is constrained.

The Federal Association of the Wood Industry warned that without increased harvest volumes in coming weeks, the situation will "escalate into an existential crisis for the sawmill and wood industry" by early 2026.

The takeaway: German lumber export decline reflects both domestic supply constraints and weak European construction demand compounding sawmill margin pressure. Source: Timber-Online

The European Space Agency successfully launched the Biomass satellite April 29, 2025. By the end of commissioning in November 2025, Biomass moved into operational orbit and began regular data collection. The mission provides revolutionary capability for measuring forest carbon stocks from space.

Verified technical capabilities:

The measurement approach: P-band radar penetrates forest canopy and measures woody structure of trees—trunk, branches, stems. Previous spaceborne systems could not achieve this. The technology effectively "weighs forests from space" since half the woody mass is carbon.

Mission phases: Phase one creates baseline maps of forest AGB and forest height globally. Phase two uses repeated measurements over multiple years to identify forest loss, regrowth, and biomass evolution. The data feeds global climate models and informs policy frameworks including the Paris Agreement, IPCC, and REDD+ programs.

European application: The mission supports EUDR compliance by providing independent forest monitoring data. Forest professionals gain highly accurate biomass measurement essential for carbon project development and verification.

The takeaway: Revolutionary P-band radar technology from space provides verified forest biomass data supporting compliance, carbon markets, and climate policy. Sources: Max Planck Institute | DLR Germany | Airbus

Austria's softwood sawlog market continued strengthening through November 2025 with prices climbing steadily. According to the Forestry Department of LK Austria, demand for sawlogs remains "extremely brisk." Supply cannot keep pace with processor requirements.

Tyrol Non-State Forests (October 2025 actual trades):

The leading spruce-fir range currently fetches an average of €122.69 per cubic meter free at roadside. That sits only slightly below the record price from early summer 2022. Demand for larch remains particularly strong and usually cannot be met. Most sawmill companies suspended one shift due to below-average stock levels.

The takeaway: Austrian market strength contrasts sharply with Finnish price declines and German supply crisis, highlighting severe European market fragmentation. Sources: Global Wood Markets Info | Waldverband Austria

November 26, 2025: European Parliament votes on EUDR amendments in Strasbourg plenary session—decision determines whether fast-track negotiations proceed or trilogue extends into December

November 25, 2025: Stora Enso Capital Markets Day in London—company presents strategic direction following forest demerger announcement

December 2025: Final negotiations between European Parliament and Council on EUDR implementation before December 30 deadline

December 30, 2025: Current EUDR application date for large and medium operators (pending final approval of delays)

April 30, 2026: European Commission deadline to complete mandated EUDR simplification review

Map your EUDR compliance gaps before December. With Parliament voting today and final negotiations coming in December, you need a clear baseline showing where you stand right now.

Thirty minutes, critical protection:

When regulatory clarity finally arrives—whether December 2025, June 2026, or December 2026—you'll know exactly what compliance work remains. More importantly, if authorities conduct checks during any implementation period, you can demonstrate good-faith preparation efforts.

The Council adopted its position. Parliament votes today. Clarity is coming. But the current December 30, 2025 deadline remains law until amendments are officially published. Document your preparation now. That matters when enforcement begins.

Until Thursday!

Wish you all the best: Peter

P.S. What’s the biggest challenge you’re facing in forestry right now?
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