Ikea’s Race for the Last of Europe’s Old-Growth Forest. The furniture giant is hungry for Romania’s famed trees. Little stands in its way.
Logging season in Romania runs seven months, from mid-September through April, a frenzy of chain saws chewing through millions of spruce, pine, oak, maple, beech, fir. Some of the wood is cut legally; most of it is not, and violence between the logging industry and its opponents breaks out often. Early this season, two Bucharest-based documentary filmmakers, working on a project about the illicit wood trade, set out to find a large, treacherous-looking clear-cut in Suceava, a northern county where some of the country’s largest sawmills are based and where Ikea owns thousands of hectares.
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In an accident of geography and history, Romania is home to one of the largest and most important old-growth forests left in the world. Its Carpathian mountain chain, which wraps like a seat belt across the country’s middle and upper shoulder, hosts at least half of Europe’s remaining old growth outside Scandinavia and around 70 percent of the continent’s virgin forest. It’s been referred to as the Amazon of Europe, a comparison apt and ominous in equal measure, because of the speed at which it, like the Amazon itself, is disappearing.
Most of Europe was rapidly deforested during the industrial era; less than 4 percent of EU forestland remains intact. Romania, far enough from the continent’s industrial centers and long a closed-off member of the Soviet bloc, remained a shining exception. During the country’s communist period, the government converted the forests to public ownership and kept them off global export markets, enshrining the forest management trends of an ancien regime. The result is that Romania retains some of the rare spruce, beech, and oak forests that qualify as old- or primary-growth, having never been excessively logged, altered by human activity, or artificially replanted.
But the fall of communism in 1989 dissolved one layer of protection for those forests, and the subsequent wave of privatization inaugurated widespread corruption. In 2007, Romania’s entry to the European Union created a massive, liberated market for the country’s cheap, abundant timber and the inexpensive labor required to extract it, conditions that encouraged Austrian timber companies and Swedish furniture firms to set up shop. Succeeding fractious, ineffectual regimes enacted further pro-market reforms and did little to curb corruption; in the final months of 2021, the country’s prime minister designate found himself unable to form a government at all. Add to that the astronomical growth of the fast furniture industry, which particularly relies on the spruce and beech that populate these forests, and the result has been a delirium of deforestation.
There’s one obvious, notable beneficiary of this situation: Ikea. The company is now the largest individual consumer of wood in the world, its appetite growing by two million trees a year. According to some estimates, it sources up to 10 percent of its wood from the relatively small country of Romania, and has long enjoyed relationships with mills and manufacturers in the region. In 2015, it began buying up forestland in bulk; within months it became, and remains, Romania’s largest private landowner.
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As is often the case in trades dominated by illegality, violence is never far behind, and around the time of Ikea’s purchases, a wave of high-profile, logging-related attacks commenced. In 2015, Romanian environmentalist Gabriel Paun was beaten unconscious by loggers in an ambush caught on camera; he eventually fled the country and has spent years living in hiding. Doina Pana, the former minister of waters and forests, announced that she had been poisoned with mercury in 2017 after attempting to crack down on illegal logging. In late 2019, two forest rangers, Raducu Gorcioaia and Liviu Pop, were murdered in separate attacks in the span of just a handful of weeks.
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With so little formal law enforcement—Romania’s Forest Guard was chartered in 2015 as a 617-person unit that doesn’t work nights or weekends—the task of protecting the forests has often fallen to activists and volunteers, a responsibility that has proved treacherous. All told, at least six patrolmen have been killed in recent years; in another 650 registered incidents, people have been beaten, shot at, or otherwise attacked in relation to illegal logging. Neither 2019 case went to trial; Paun’s attackers, caught on film, remain free.
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One might think the [European Commission] infringement proceeding would slow deforestation; if anything, the opposite has been true. The threat of new legislation that would protect both privately and publicly owned old-growth forests has sparked a race to extract timber from those areas as quickly as possible. In 2018, an infringement hearing from the commission shut down all logging in Poland’s Bialowieza forest, also an old-growth Natura 2000 site, after evidence emerged of logging 100-year-old trees. “Obviously, there is now increased pressure,” Andrei told me. “If you want to remove large volumes of wood without being asked questions, you do it now. If you wait until next year, you might not be able to do it.” Logging in a given area can degrade the surrounding forest enough to make it ineligible for protection, and this adds further motivation.
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That reality is critical for the furniture industry, which is forecast to grow from $564 billion in 2020 to $850 billion by 2025. It’s especially important for Ikea, which is not only the largest furniture company in the world, but the largest buyer and retailer of wood. Having doubled its consumption in the last 10 years, it now devours 1 percent of the world’s timber annually, with a particular regional reliance on Romania and its surrounds. “Ikea’s growth goes really hand in glove with the forestry sector in Eastern Europe and Russia,” said Tara Ganesh, head of timber investigations at the U.K.-based NGO Earthsight. Ganesh has worked on multiple investigations of the company, whose presence in the region, she said, is “massive.”
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The company’s reliance on FSC certification as a working synonym for sustainability helps explain. A small international NGO, the FSC sets a standard based on its 10 principles—for example, compliance with national laws, a commitment to enhancing the well-being of workers, an updated forest management plan—that is then conferred upon forestry operations by smaller, independent auditors, who are contracted by the logging and manufacturing companies to perform preannounced, scheduled reviews. If those groups refuse to grant certification, logging operations can simply shop around until they find an auditor willing to take the check and confer the stamp. Perhaps it goes without saying that such a system initiates a race to the bottom. Ever since the FSC came into being in 1993, it has provoked criticism among environmentalists; in 2018, Greenpeace called the organization “a tool for forestry and timber extraction.” It doesn’t help that Ikea is the largest wood consumer in the FSC network and was a founding member of the council. (Ikea “is only one of 1000+ members,” a spokesperson for FSC wrote me. “Our global standards are discussed and agreed by our members globally.”)
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Ikea bought its land from an unlikely source: the Harvard University endowment, which snatched up Romanian property after a post-communist land restitution law left an antic privatization system in its wake, handing over half of the country’s public forestland to private interests. Starting in 2004, the university, using various shells and nonprofit formations, began buying big with the help of a Romanian businessman, Dragos Lipan. A number of these holdings were fire sales of dubious restitution claims, and Harvard soon found itself in legal hot water. By 2015, Lipan had received a three-year suspended sentence for bribery and money laundering related to those deals, and Harvard was in court fighting for the legitimacy of its claims. The same year, the university, ready to wash its hands of the deal, found a willing buyer in Ikea. With an investment arm, the company purchased almost 34,000 hectares from Harvard. In 2016, it added another 12,800 hectares to its haul, bringing its holdings to 46,700 hectares in total. Today, the largest owner and operator of Ikea retail stores, Ingka Investments, has an estimated 50,000 hectares in its portfolio. As the holdings have changed hands, the stain of illegality has grown fainter and fainter. The company faces no serious risk of losing those holdings in court.
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Alexander Sammon
February 16, 2022
The New Republic