Response to interpellation 2025/26:191 on the forest's processing value
Translated from Swedish by AI; the translation may contain errors. The Swedish text is the original.
Summary AI, written in advance
KD shares the concern over the forestry industry's vulnerable position as it is an export-intensive basic industry of great importance for employment and regional development 1. KD argues that the industry is affected by weaker demand, rising raw material prices, international competition, tariffs, and a stronger krona 1. KD works to strengthen competitiveness through proposals from a forestry policy inquiry and investments in research within bioeconomy 1. S considers that the forestry industry is significant for the state treasury and welfare 2. S argues that the government is responsible for investments in biofuels being stopped or put on hold due to the government's and SD's policy 2.
Written by AI in advance and may contain errors. The numbers lead to the speech a statement builds on; check against the text below.
Landsbygdsministern Peter Kullgren (KD)
Madam Speaker! Isak From has asked the Minister for Finance if she has made any analysis of how the decline in the Swedish forest industry affects the Swedish economy and if she can, in that case, account for that analysis. Isak From has further asked the Minister for Finance if she is considering taking any measures within her area of responsibility to support the forest industry and, if so, which ones.
Madam Speaker! The work within the government is so distributed that it is I who shall answer the interpellation.
I share the concern over the vulnerable situation of the Swedish forest industry. The forest industry is one of Sweden's most export-intensive basic industries and is of great importance for employment, regional development, and the green transition. When the industry is subjected to great pressures, it has consequences for both the companies, their suppliers, and the rural economy.
The government has received analyses from Konjunkturinstitutet and Tillväxtanalys showing that industrial production within the forestry sector has decreased by approximately 4 percent over the last year. Even though the effect on Sweden's GDP is limited, the regional impact can be significant, especially for municipalities where the forestry sector accounts for a significant part of the employment.
The forest industry has in recent years been affected by weaker demand, rising raw material prices, increased international competition, American tariffs, as well as a stronger krona. These factors have collectively resulted in several companies within the industry issuing layoff notices during the past year.
Since the government took office, the focus has been on strengthening competitiveness and creating long-term conditions for the forest industry. As part of this work, the proposals from the 2024 forestry policy inquiry, which submitted its final report in August 2025 (SOU 2025:93), are now being prepared. The inquiry's analyses and proposals provide a basis for how we can develop forestry policy so that climate benefits, biodiversity, and competitiveness are strengthened while ownership rights are protected. It is an important step to ensure long-term and stable conditions for forestry and the industry.
Against the background of an uncertain global situation with increased trade barriers and tariffs, there is a clear need to strengthen Swedish competitiveness and at the same time meet our climate commitments. Therefore, significant resources are being invested in research and innovation within bioeconomy to develop climate-smart materials and new products.
The Government prioritizes that Swedish forestry is not restricted but can fully contribute to achieving the climate goals as well as contribute to jobs and growth throughout the country. The direction for continued work is to promote a long-term sustainable active Swedish forestry and a growing circular bioeconomy with competitive industries.
Isak From (S)
Madam Speaker! Thank you, Minister for Rural Affairs, for the answer!
I submitted this interpellation to the Minister for Finance based on the fact that the forest industry and the forestry sector are and have been very significant for the Swedish treasury and for the possibility of financing our common welfare. The question was redirected to the Minister for Rural Affairs, which I can understand to some extent.
Some were however redirected to go to Minister for Employment Johan Britz. We had a debate last week here in the chamber where we discussed, among other things, the conditions for short-term layoffs. I must say that the Minister for Employment was very clear that they do not intend to proceed with the proposal that the parties in that investigation have jointly submitted and which has been on the government's table since 2023. It was a clear position. We naturally do not think it is good, but it was still a clear answer that in any case, that is not the path that applies.
Let us enter into this and look at the reasons why we now have a situation in Sweden where the forestry companies from Karlsborg up to Kalix in Norrbotten down to Hylte in Halland have issued notices and carried out layoffs. It has also been announced that a part of the pulp and paper industry's operations will simply be shut down. At the current situation, it concerns approximately 1,400 jobs.
It is naturally 1,400 people who are affected by unemployment, and that is bad enough. The sector also further processes and creates a large trade surplus in the Swedish economy that has come to Sweden's benefit. That was the reason why I wanted to discuss this with the Minister for Finance, i.e., to ask how this will affect our opportunities to finance the welfare.
It is clear that, just as the Minister for Rural Affairs says in his response, there are several different parts. We cannot blame the government for Trump's various statements regarding trade tariffs and so on. In this case, it has directly affected two operations in Västerbotten and Norrbotten that have focused on selling a specific "board" to the USA. This naturally affects them particularly much.
When I have met the forest industry, it has been pointed out that in a worst-case scenario, they see that they will be forced to cease harvesting up to 50 percent in their previous core areas. This has enormous consequences.
This is not just a consequence of ambiguities in the division of responsibility regarding species protection and so on. It also has to do with the fact that the certification bodies that the large forestry industries are linked to have great problems reaching an agreement with the indigenous people and the Sami villages and are completely excluded from consultations.
It is also very clear that the investments that the forest industry had signaled regarding biofuels, due to the government's and the Sweden Democrats' policy, have either been stopped or put on ice. When it comes to this, the responsibility lies directly with the government.
Source: The Swedish Parliament. The speeches come from the open data of the Riksdag, translated into English by AI, which may contain errors.