In the European context Latvia along with the other Nordic countries has the largest forest area - 52% of its total territory. The contribution of forestry to Latvian GDP amounts to ca 5%. With the development of green economy and growing use of renewable resources the demand for timber and timber products is expected to grow even further. As a timber exporter, Latvia is set to gain importance due to the demand for renewable resources, which will be directly affected by the renewable energy objectives laid out in the EU strategy "Europe 20". In March 2012 the European Commission published a declaration titled „Inclusion of Land Use, Land Use Change and Forestry (LULUCF) sector in the Union’s climate change commitments”. The declaration deals with the latest issues related to the LULUCF and proposes their gradual adjustment – harmonisation of the LULUCF sector’s accountancy requirements at the EU level and inclusion of the LULUCF sector into the EU reduction objectives of greenhouse gas emissions. Considering the importance of forest industry in Latvia, synergy in the application of different policies both on the national and regional level is of vital importance because according to the subsidiarity principle forest policy remains within the competence of each EU member state, which must be taken into account when assigning LULUCF activities for each member country. Agriculture too is bound to be heavily challenged in relation to the climate policy – the growing world population will require more extensive production of food, which at the same time would have to be sustainable, contributing to proper and safe exploitation of agricultural land and not causing the greenhouse gas emissions to rise. Lest the LULUCF forestry requirements should clash with the Latvian forestry development objectives, strengthening harmonisation among various EU policies is vital.
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