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Poland’s Timber Industry Faces Crisis as Government Plans Threaten Thousands of Jobs

Poland’s economy has long relied on the timber industry, but now this vital sector is facing a potential collapse. Representatives of the industry, united under the Coalition for Polish Timber, warn that government policies could devastate the sector, putting up to 70,000 jobs at risk and costing the state budget an estimated PLN 4.5 billion.

The crisis stems from a proposal by the Ministry of Climate and Environment to exclude 20% of Poland’s forests from commercial forestry operations. According to industry representatives, led by Deputy Minister Mikołaj Dorożała, this decision is not justified by ecological necessity.

“The area of Poland’s forests has been steadily increasing, unlike in many parts of the world where deforestation is rampant. Over the past eight years, Poland has gained 269,300 hectares of new forests,” states a report from B+R Studio, created in collaboration with scientists from Warsaw University of Life Sciences (SGGW). “Currently, forests cover 30% of the country’s land (over 9.5 million hectares), and under the National Afforestation Program, this figure is expected to reach 33% by 2050. Experts emphasize that this growth in forest area has gone hand in hand with an increasing volume of timber resources, indicating a well-managed, sustainable forestry sector,” industry representatives argue, citing Newseria agency.

The Polish forestry and timber sector is a significant economic force, comprising over 74,600 businesses that employ 439,000 people. The industry’s annual sales revenue reaches PLN 210.8 billion, contributing approximately 6.8% to the national GDP. The proposed restrictions on sustainable forest management could, therefore, have severe economic repercussions.

The Coalition for Polish Timber estimates that lost revenue from corporate income tax (CIT), personal income tax (PIT), and social security contributions (ZUS) would amount to 4.5 billion PLN. Additionally, investment spending could fall by PLN 7.8 billion, and Poland’s GDP could shrink by approximately 0.3% (PLN 8.75 billion). The impact on foreign trade would also be significant, with a projected PLN 8.4 billion decline in Poland’s trade balance.

Representatives of the forestry and furniture industries warn that if these restrictions are implemented, timber may be replaced by non-renewable raw materials with a significantly larger carbon footprint. Timber is one of the few widely available renewable resources, and limiting its use could inadvertently benefit foreign timber industries at Poland’s expense.

The Coalition for Polish Timber demands that the government provide a justification for its policy, including a cost-benefit analysis and details on financing the forced downsizing of the sector. The industry is also calling for state support in promoting Polish wooden products as environmentally friendly and effective in reducing CO₂ emissions.

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