European Foundation
for the Improvement of
Living and Working Conditions

The tripartite EU agency providing knowledge to assist
in the development of better social, employment and
work-related policies

EU PolicyWatch

Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure LU-2021-16/3443 – measures in Luxembourg

Virtuous wood circuit

Eist Holz

Country Luxembourg , applies nationwide
Time period Temporary, 16 April 2021 – 31 December 2030
Context Green Transition
Type Legislations or other statutory regulations
Category Reorientation of business activities
– Change of production/Innovation
Author Patrick Thill (LISER) and Eurofound
Measure added 01 December 2023 (updated 14 December 2023)

Background information

With a surface area of around 90,000 hectares, the forest covers more than a third of Luxembourg's territory. Every year, some 750,000 m3 of wood are produced, of which 500,000 m3 are harvested. The timber industry in Luxembourg comprises around 1,285 companies - almost 90% of which are SMEs - and represents a total of 19,500 direct and indirect job positions.

As part of the law of 18 July 2018 and the third national nature conservation plan (2022-2026), the ‘Eist Holz’ project aims to interconnect sustainable forest management with the development of economic activities based on the principles of a circular economy at regional level. The aim is to implement a circular economy based on the transformation of a linear economic system into a value chain. The transformation towards greater circularity is supported by various measures, including the ‘Klimabonus Bësch’, certification of transport emissions from wood products and the ‘e-Holzhaff’ platform

Content of measure

The aim of the ‘Klimabonus Bësch’ measure is to support private forest owners so that they can participate in measures to promote climate action by implementing close-to-nature forestry, preserving the many services provided by forest ecosystems to society, including soil protection, water and air filtration, preservation of biodiversity and an environment for recreation and even ecological tourism, carbon dioxide capture and the supply of natural products such as wood. This type of sustainable forest management also enables forests to be better adapted to the effects of climate change and contributes to the implementation of the National Integrated Energy and Climate Plan. The premium, which applies exclusively to private forests, is intended to reward private forest owners who provide vital forest services to society as a whole. Certification of transport emissions from timber products with the ‘Holz von Hier’ label offers a management system that, on the one hand, proves sustainable forest management by requiring forest management certificates in accordance with FM-FSC, FM-PEFC or equivalent standards for 100% of the round timber entering the certification process. On the other hand, ‘Holz von Hier’ is also a certificate for climate protection, as the ‘Holz von Hier¹ control system records, regulates and certifies transport distances along the entire processing chain, i.e. from the forest road to the place of use. Finally, ‘e-Holzhaff’ platform, launched by the Ministry of the Economy and the Luxembourg Wood Cluster, is dedicated to the market for raw wood (coming directly from Luxembourg's forests) and circular wood (recycled wood). Designed in close collaboration with public and private players in the field, its aim is to establish a direct link between wood supply and demand. In addition to its wood buying and selling service, the platform will enable local businesses to offer services related to wood processing (sawing, drying, transport, etc.)

Use of measure

No information available.

Target groups

Workers Businesses Citizens
Does not apply to workers Sector specific set of companies
Does not apply to citizens

Actors and funding

Actors Funding
National government
Company / Companies
Other social actors (e.g. NGOs)
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement Consulted
Form Not applicable Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: Sectoral or branch level

Involvement

The project is the fruit of a collaborative approach between the ministries and administrations concerned, coordinated by the Ministry for the Environment, Climate and Sustainable Development and the Ministry for Energy and Spatial Planning. It also includes players in the field, companies in the sector and Luxembourg Wood Cluster.

Views and reactions

The partners consulted welcomed the collective approach. They stressed the need to ensure that societal acceptance of this transition remains guaranteed in order to avoid a culture of general opposition. With this in mind, it is preferable to introduce voluntary incentive mechanisms for individuals and businesses. Rather than obligations to implement measures. It is also recommended that too many constraints should not be imposed, and that the development of jobs linked to this transition should be encouraged, as well as support for the service and industrial sectors, so that they emerge stronger from the energy transition. Lastly, it is criticised that the update contains mainly technical measures, whereas there is a consensus among scientists that climate protection is linked to cultural changes.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      A - Agriculture, Forestry And Fishing A2 Forestry and logging
      C - Manufacturing C16 Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials
    • Occupation (ISCO level 2)
      Agricultural, forestry and fishery labourers

Sources

Citation

Eurofound (2023), Virtuous wood circuit, measure LU-2021-16/3443 (measures in Luxembourg), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LU-2021-16_3443.html

Share

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.