European Forestry Pulse #58 🌲

Hello,

The EU just opened a door to 2 billion people.

On January 27, the European Union and India concluded their Free Trade Agreement. This is the biggest trade deal the EU has ever signed. It covers 25% of global GDP.

For European timber exporters, the numbers matter. India will eliminate tariffs on 96.6% of EU goods. That includes wood products. A market that was hard to enter just got easier.

India builds fast. Its construction sector grows 6-8% yearly. That growth needs wood. European suppliers now have better access than ever before.

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

The European Union and India concluded Free Trade Agreement negotiations on January 27, 2026. This creates the largest trade partnership by population in history.

The scale: The deal covers 2 billion people. Combined GDP exceeds 25% of global output. Annual EU-India trade already reaches €124 billion. This deal aims to double it.

The tariff cuts: India will eliminate duties on 96.6% of EU goods by value. The EU eliminates tariffs on nearly all Indian goods. Most cuts happen immediately. Some phase in over seven years.

Wood products included: The agreement covers processed wood, furniture, and paper products. European exporters gain price advantages over competitors still paying tariffs.

India's construction boom: India builds more than almost any country. The construction sector grows 6-8% annually. Housing demand drives timber imports. Infrastructure projects need wood for formwork, scaffolding, and finishing.

Current trade barriers: Before this deal, Indian import duties on wood products ranged from 10-25%. Those costs made European wood uncompetitive against Asian suppliers. The FTA changes that math.

The certification angle: India increasingly demands sustainable sourcing. European certified wood meets those requirements. FSC and PEFC labels open doors that uncertified suppliers can't enter.

Competition concerns: Some European industries worry about Indian imports. But forestry faces less risk. India exports little processed wood to Europe. The trade flows mostly one direction.

Implementation timeline: The agreement needs ratification by both sides. The European Parliament must approve it. India's parliament does the same. Full implementation likely takes 12-18 months.

What this means for you: If you export wood products, start researching Indian buyers now. The tariff advantage won't last forever. First movers build relationships while competitors wait.

For sawmills and processors, India represents growth when European demand stays weak. Diversifying export markets reduces dependence on struggling domestic construction.

The bigger picture: This deal signals EU trade policy is working. After years of negotiation, major agreements are closing. The EU-Mercosur deal awaits ratification. Others are in progress. European exporters gain market access worldwide. Source: European Commission Trade | Wikipedia - EU-India FTA

New research shows the EU Deforestation Regulation is working before it even starts. Chinese suppliers are cleaning up their sourcing.

What Fern found: Environmental group Fern reports that Chinese wood product manufacturers are already adjusting. They're dropping risky suppliers. They're improving traceability. They want to keep European market access.

Why before the deadline: Smart companies don't wait for enforcement. They know December 2026 is coming. Building compliant supply chains takes time. Starting now makes sense.

The ripple effect: When Chinese factories demand better sourcing, pressure reaches forests in Southeast Asia and Africa. EUDR's impact extends far beyond EU borders.

The skeptic's view: Some industry voices doubt these changes are real. They want to see data, not press releases. Verification matters more than announcements.

The takeaway: EUDR is already reshaping global wood trade. European importers should ask Chinese suppliers about their compliance progress now. Source: Fern - EUDR Requirements for China Trade Flows

PEFC published a new standard on January 30 for sourcing from multiple forest projects. This helps companies working with smallholders and community forests.

What it does: The Project Sourcing Standard lets companies aggregate wood from many small sources. Each source gets verified. The combined volume carries PEFC claims.

Who benefits: Companies buying from smallholders faced a problem. Individual farmers couldn't afford certification. Aggregating their wood was complicated. This standard simplifies it.

The SME angle: Small and medium enterprises can now form groups for certification. They share costs. They share expertise. They gain market access together.

Applicant projects: Forest areas working toward full certification can participate. They don't need to wait years for the full process. Interim sourcing becomes possible.

The takeaway: PEFC is making certification more accessible. If you source from small forest owners, this standard deserves a look. Source: PEFC - Project Sourcing Standard

Carbon certification company Equitable Earth closed a funding round of €12.6 million. Total investment now exceeds €25 million.

What they do: Equitable Earth certifies nature-based carbon projects. They focus on quality and transparency. Their credits target buyers who want verified impact.

The investors: The round attracted climate-focused funds and impact investors. Names weren't disclosed. But the amount signals serious confidence.

Why it matters: More capital flowing to carbon verification means more capacity. More projects can get certified. More credits reach markets. The voluntary carbon market grows.

The European angle: Equitable Earth operates across Europe and globally. Their growth supports European forest carbon projects seeking credible certification.

The market signal: When investors put €25 million into carbon certification infrastructure, they're betting on long-term demand. They expect corporate buyers to keep paying for quality credits.

The takeaway: Carbon certification is becoming a real business. Forest owners developing carbon projects have more options for verification. Source: Equitable Earth

The Euroconstruct network forecasts gradual recovery for European construction. After two years of decline, growth returns.

The forecast: Construction output across 19 European countries should grow modestly in 2026. The worst is behind us. But recovery will be slow.

What drove the decline: High interest rates crushed residential building. Commercial construction followed. Two consecutive years of contraction hit the sector hard.

The 2026 outlook: Lower interest rates help. Housing demand remains strong. But the rebound won't be dramatic. Expect gradual improvement, not a boom.

Regional variation: Some markets recover faster than others. Southern Europe shows more momentum. Germany and Nordic countries lag behind.

For timber demand: Construction drives wood consumption. When building recovers, timber demand follows. This forecast suggests cautious optimism for sawmills and wood suppliers.

The takeaway: Plan for modest improvement in 2026. Don't expect a sharp rebound. But the direction is finally positive. Source: ING - Euroconstruct Outlook

A Romanian forest owner is betting on radical transparency. Vlad Chitulescu posted January 29 that his company Silvador now publishes all carbon verification data publicly.

What's public: Baseline studies. Monitoring reports. Third-party audits. Everything. No login required. No NDA to sign.

The operation: Silvador manages over 2,300 hectares in Romania. The project holds triple certification: VCS, SD VISta, and FSC. They use LiDAR, drones, and AI for monitoring.

The bet: Chitulescu believes transparency attracts better buyers than sales pitches. When buyers can verify everything themselves, trust follows.

Why it's unusual: Most carbon projects lock documentation behind access walls. Silvador breaks that norm. Anyone can inspect their claims.

The takeaway: This could be how the next generation of forest carbon projects compete. Open data instead of marketing. Inspection instead of promises. Source: LinkedIn - Vlad Chitulescu

A new platform makes planetary forest data accessible to anyone. Global Nature Watch went live with an AI-powered interface that answers questions in plain language.

What it does: Ask "What's the carbon stock in this forest?" and get maps, statistics, and satellite imagery instantly. No technical skills needed.

The data: The platform combines 80+ peer-reviewed datasets from World Resources Institute and Bezos Earth Fund's Land & Carbon Lab. It covers all ecosystems, not just forests.

The languages: The system works in 170+ languages. A forest owner in Hungary can use it the same as one in Brazil.

Real-time tracking: The platform monitors disturbances as they happen. Deforestation alerts. Fire detection. Change over time.

Why it matters: This puts professional-grade forest monitoring in everyone's hands. Small forest owners gain access to data that previously required expensive consultants.

The transparency angle: When anyone can check carbon stocks and land use change, claims become verifiable. This raises the bar for everyone making forest carbon claims.

The takeaway: Bookmark this tool. It's free and useful for anyone managing forests or evaluating carbon projects. Source: Global Nature Watch

February 9, 2026: ATIBT Timber Trade Portal Workshop – EUDR preparation

February 12-14, 2026: For Wood – Prague, Czech Republic

February 17, 2026: EFI Med Forum Webinar – Forest Therapy

February 19, 2026: EU Carbon Farming Consultation deadline

February 24-27, 2026: DACH+HOLZ International – Cologne, Germany

April 30, 2026: EUDR simplification review deadline

December 30, 2026: EUDR deadline for large and medium operators

Research one new export market. The EU-India deal shows opportunities exist beyond traditional buyers.

Twenty minutes of exploration:

European construction stays weak. Waiting for domestic recovery is one strategy. Finding new markets is another.

The EU-India FTA removes barriers to 2 billion people. Other trade deals are in progress. Companies that explore now will be ready when deals close.

You don't need to ship containers tomorrow. But knowing your options helps planning. When someone asks "why aren't we selling to India?" you'll have an answer.

Diversification takes time. Start the research now.

Until Tuesday!

Wish you all the best: Peter

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