Södra and our role in the circular bioeconomy
Södra is Sweden’s largest forest owners’ association, with more than 50,000 members. Since 1938, we have developed a world-leading industry that refines forest raw material into renewable products such as pulp, sawn timber, building systems, bio-based chemicals and energy. Our operations are built on sustainable forestry and innovation, where we see circularity and resource efficiency as essential for the future of society and the climate.
Södra views the Circular Economy Act as an opportunity to strengthen Europe’s leadership in sustainable materials and the circular bioeconomy. We want to contribute to a framework that:
- Promotes innovation and investment in new technologies and business models
- Recognises and integrates both renewable and secondary materials
- Simplifies and harmonises rules for waste, by-products and recycling
- Creates economic incentives for renewable and circular solutions
- Strengthens collaboration between actors across the entire value chain
- We are ready to continue the dialogue with the EU and other stakeholders to jointly create a circular and sustainable future.
Circular Economy Act and the EU’s ambitions
The EU’s Circular Economy Act is a key initiative to accelerate the transition to a circular economy within the Union. Its purpose is to create better conditions for recycling, increase the availability of secondary raw materials and contribute to greater resource efficiency while reducing dependence on fossil resources. The legislation addresses barriers such as low demand for recycled material, fragmented regulations and insufficient incentives for circular business models.
Södra has actively participated in the EU’s public consultation and contributed our experience and views, particularly focusing on textile recycling and forest-based materials.
How will forest estates be affected?
- Increased demand for sustainably produced forest raw material: When legislation favours renewable and bio-based circular materials, the value of raw material from sustainably managed forests rises. This can strengthen profitability for forest owners and create new market opportunities.
- Stimulus for innovation and diversification: New business models and value chains may emerge, where by-products and side streams from forestry gain value and can be used in new products, such as bio-based chemicals or textile fibres.
- Requirements for traceability and certification: With greater focus on circularity and sustainability, demands for documentation, certification and traceability may increase, bringing both opportunities and administrative challenges for forest owners.
- Contribution to climate benefits: By supplying raw material to an industry that replaces fossil materials and enables circular bioflows, forest estates contribute to society’s climate transition.
How will Södra’s industries be affected?
- Greater opportunities to develop circular processes: Legislation can facilitate investments in new technologies for recycling and resource efficiency, for example by enabling the handling of both primary and secondary raw materials in the same processes.
- Strengthened competitiveness for bio-based products: When renewable materials are treated on par with recycled materials in legislation, Södra’s position in the market for sustainable products such as sawn timber, pulp and biochemicals is reinforced.
- Challenges around regulations and administration: If regulations become too complex or if End-of-Waste criteria are set too late in the process, this can create obstacles for innovation and efficiency. Södra therefore works actively to influence the design of legislation so that it is innovation-friendly and practically applicable.
- New business opportunities: By participating in the development of circular value chains within the bioeconomy, for example in textile recycling, Södra can create new products and services that meet future demands for sustainability and circularity.
Södra’s views
In our response to the EU consultation, we highlighted several key barriers and opportunities:
- Economic incentives: More economic instruments are needed, such as producer responsibility, tax incentives and targeted support for circular business models.
- Standardisation and quality: The lack of standardised certification and quality requirements for secondary raw materials hampers market development.
- Infrastructure and collaboration: Insufficient infrastructure for collection, sorting and transport of waste, as well as inadequate cooperation between actors in the value chain, are obstacles to increased circularity.
- Consumer acceptance: Low awareness and acceptance of products made from recycled material is a challenge that requires information efforts and labelling.
- Regulations for waste and by-products: Fragmented and unclear rules for when waste becomes a resource create uncertainty and hinder investment.