1. Metsähallitus 20061 Metsähallitus Ecosystem services in Forestry

2. Metsähallitus 20062 Metsähallitus's lands and waters State (Metsähallitus) Companies Other Private forest owners Ownership of forest land in Finland Forest land in managed forests, 3.5 million ha Poorly productive and non-productive land, 1.5 million ha (excluded from forestry) Protected areas, wilderness reserves and other areas, 4.0 million ha Water areas, 3.4 million ha Public water areas In total 12.4 million ha

3. Metsähallitus 20063 Organisation Metsähallitus operates primarily within the framework laid down by the Ministry of Agriculture and Forestry; Metsähallitus's nature conservation duties are guided by the Ministry of the Environment. Board of Directors Metsähallitus's Managing Director Business operationsPublic administration duties Forestry Forest use Deliveries to customers Wild North Laatumaa Natural Heritage Services Protected area management Game and fisheries Nature conservation Recreational use of nature Subsidiaries: Morenia Oy Forelia Oy and Siemen Forelia Oy Group units and Service Centre

4. Metsähallitus 20064 Key business figures 2006 TurnoverEUR 268 million Profit EUR 72 million Contribution to state revenueEUR 65 million Person-years2,003 Nature tours Seed and seedling cultivation Land and plot sales Sale of soil resources Forestry Distribution of turnover by business sector

5. Metsähallitus 20065 Forestry – the primary business Wood production and supplying wood to industry on a full- service basis. Customers consist of some one hundred sawmills and pulp and paper mills. Turnover approx. EUR 225 million, 85% of the Group's total turnover. The Forestry unit makes use of 38% of state lands – felling volume 4.7 million m 3 /a. Our special strength areas: – modern information systems – flexible deliveries – environmental expertise

6. Metsähallitus 20066 Ecosystem services - definition resources like – food, – wood and – other raw materials services such as – pollination of crops, – prevention of soil erosion or – water purification. “the benefits people derive from Ecosystems”

7. Metsähallitus 20067 The Concept of Sustainability in Forestry The concept of long-term sustainability was defined in forestry science over two centuries ago. This has helped the development of a broader concept. The Brundtland report 1987: Satisfying the present day needs while ensuring the needs of the future generations. UNCED 1992, Rio de Janeiro The ministerial conference in Helsinki 1993: ”biodiversity, productivity, regeneration, vitality and enable to produce significant ecological, economical and social functions on local, national and global levels now as well as in the future without endangering other ecosystems.

8. Metsähallitus 20068 The Dimensions of Sustainability Time Presence Space CommunRegionStateContinentEcozone Elements Economic Social Ecologic Social Responsibility

9. Metsähallitus 20069 The Pan-European Criteria (Helsinki Process) Forest resources + global carbon cycles Forest health and vitality Biological diversity Socio-economic aspects Productive functions of forests Protective functions of forests Sustainable Forest Managemen t

10. Metsähallitus 200610 Interpretations of Sustainability Biased interpretations weighting the views serving the interests of the respective party Economically weighted interpretation: economical sustainability enables ecological approach and is a prerequisite for social sustainability and hence of the first priority Environmentally weighted interpretation: ecological sustainability is an absolute prerequisite of both economical and social sustainability and hence of the first priority

11. Metsähallitus 200611 Sustainability as a Process The present day interpretation of sustainability is a multigenerational one: the needs of the present generation can be satisfied if the rights of the future generations are guaranteed. In practice the future generations as well as the “nature” are not present parties: the solutions must be found here and now. The sustainability in the form of ecosystem benefits and impacts materialises itself as a socio-economical process

12. Metsähallitus 200612 Ecosystem services - Metsähallitus The demand is higher than production potential. The decisions on the production, distribution and use of these resources must be made in the democratic political decision- making system of Finland. These services include among others – Timber for sawmills and pulp mills – Pure surface and ground waters – Biodiversity in general – Game – Pastures and other provisions for reindeer husbandry in Northern Finland – Scenic values for nature tourism and for recreational use – Bioenergy – Non-wood forest products – Buffer against tundra in the north The concept is ”anthropogenic”

13. Metsähallitus 200613 The Act of Metsähallitus Metsähallitus is to fulfill certain general societal obligations among its business operations. These obligations are: 1.to respect biodiversity, 2.to enhance recreational use of state forests, 3.to enhance employment, 4.to follow the obligations set in the Act on reindeer husbandry - pastures and other provisions 5.to take into account the Sámi cultural heritage.

14. Metsähallitus 200614 Biodiversity Site specific Occurences of species (threatened and other) Key biotopes: herb-rich forests, old-growth forests,… Ecological connections defined in the landscape ecological plans Biodiversity enhancement areas Operational Retention trees Buffer zones along all the watercourses Transition zones between heathlands and open mires Valuable habitats delineated in the operational planning Low productive areas Extra labour costs

15. Metsähallitus 200615 Recreational use Scenery Cultural areas Game habitats Environmental forests Hiking areas Recreational and outdoor activity areas Holiday and nature tourism areas

16. Metsähallitus 200616 Reindeer husbandry incl. Sámi homeland area Important pasture areas – no forestry (regeneration fellings) Other limitations – logging arrangements

17. Metsähallitus 200617 The Inputs - Biodiversity Area, haVolume, m 3 No Forestry149 300 ha19 207 000 m 3 Selective + other ”unconventional” fellings 13 500 ha1 531 500 m 3 Fellings for higher volumes of retention trees 20 700 ha1 759 400 m 3 TOTAL183 500 ha22 742 400 m 3 Other limitations32 600 ha1 913 700 m 3

18. Metsähallitus 200618 The Inputs – Recreational use Area, haVolume, m 3 Scenery131 500 ha11 241 600 m 3 Cultural areas17 600 ha1 532 700 m 3 Game habitats104 900 ha9 399 100 m Environmental forests6400 ha704 700 m 3 Hiking areas8000 ha1 142 400 m 3 Recreational and outdoor activity areas 50 400 ha4 481 500 m 3 Holiday and nature tourism areas 11 700 ha1 325 800 m 3 TOTAL330 500 ha29 827 800 m 3

19. Metsähallitus 200619 The Inputs – Recreational use Area, haVolume, m 3 Pastures – no loggings63 500 ha4 502 800 m 3 Other limitations – logging arrangements 16 800 ha1 248 900m 3 TOTAL80 300 ha5 751 700 m 3

20. Metsähallitus 200620 The value of the input in 2007 Site-specificExtra Planning costs Other costs TOTAL Biodiversity27,4 milj. €1,7 milj. €29,1 milj. € Recreation8,6 milj. €0,8 milj. €9,4 milj. € Reindeer husbandry incl. Sámi homeland area 1,6 milj. €0,6 milj. €1,7 milj. €3,9 milj. € TOTAL37,6 milj. €27,4 milj. €1,7 milj. €42,4 milj. €

21. Metsähallitus 200621 The benefits The threatened species of Finland 2000 The threatened species Their habitats The identified threats

22. Metsähallitus 200622 Thank you for your attention!