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Forestry

Forestry is at the heart of our efforts to support sustainable landscapes, foster rural economic growth and employment, and strengthen the availability of a range of key renewable resources.

EU forests cover 155 million ha and wooded land covers 21 million ha, together accounting for more than 42% of EU land area. Forestry contributes to a range of EU policies, including rural development, renewable energy, development cooperation, biodiversity protection and climate change mitigation. Moreover, forests play an important role in maintaining soil health, reducing soil erosion and mitigating flood risks. They are also important carbon sinks, sequestering additional carbon as they grow.

Approach

Our activities support the full forest value chain including afforestation, reforestation, forest rehabilitation and protection, wood processing, timberland funds, and REDD+ (Reducing Emissions from Deforestation and Forest Degradation). We support the EU Forestry Strategy and the EU Forest Action Plan, which frame EU forestry policy, and the Timber Regulation and Forest Law Enforcement, Governance and Trade Initiative for tackling illegal logging and improving traceability. We are not involved in converting natural forest to plantation or commercial logging in primary tropical and subtropical forests.

Sustainable forestry: a profitable investment

In 2009, we made our first ever investment in a private equity fund targeting sustainable forestry. Based in Luxembourg and supported by an EIB EUR 20m loan, Dasos Timberland Funds has today committed more than EUR 100m in timberland assets based for the most part in Europe.

Seeing the wood for the trees in Slovakia

A EUR 120m loan in support of the Slovak Ministry of Agriculture and Rural Development will contribute to afforestation projects, improved forest protection and management and the upgrading of agricultural Infrastructure.




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