In July 2026, a new European Union regulation on forest reproductive material entered into force. It covers the seeds, seedlings and other planting material used to establish and regenerate future forests.
The new requirements will apply after a five-year transition period, but the direction is already clear: Europe is placing greater emphasis on the quality, origin, traceability and site suitability of planting material.
The principle is straightforward: the right tree should be planted in the right place and for the right purpose.
In Latvia, this approach is not new.
Forest regeneration and afforestation already require the use of forest reproductive material with an origin suitable for the specific site. Conditions are set for the use of key tree species, while the State Forest Service maintains registers, certifies forest reproductive material and supervises its use.
Forest regeneration after harvesting is also not optional. Harvested areas must be regenerated within the required timeframe, the result must meet defined criteria, and information about the completed work is submitted to the State Forest Service.
This means the question is not simply whether trees are growing again after harvesting. What also matters is which trees are growing, whether they are suitable for the site and whether the forest has been regenerated in accordance with the applicable requirements.
What does this mean for investors?
Forest investment discussions often focus on land and timber value, biological growth and professional asset management.
In Latvia, there is another important element — external state oversight.
The long-term quality of a forest is not determined solely by the decisions of the owner or asset manager. Regulation sets requirements for the choice of planting material, forest regeneration and the subsequent management of young stands.
This does not remove natural or market risks, but it adds another layer of discipline to the long-term management of the asset.
What does this look like in LFDF practice?
LFDF’s forest portfolio is managed within Latvia’s forestry regulatory framework and under the supervision of the State Forest Service.
This year, LFDF has planted more than 150,000 birch and spruce seedlings across newly afforested areas, selecting suitable growing conditions for each tree species and establishing mixed stands.
“In Latvia, many of the principles now being reinforced at EU level are already part of everyday forestry practice. A forest owner cannot simply choose any planting material or decide not to regenerate a forest after harvesting — the process is supervised by the State Forest Service. This year, LFDF has planted more than 150,000 birch and spruce seedlings, selecting the most suitable sites for each species.”
— Edgars Birks, CEO, LFDF
This is a practical example of how regulatory principles translate into management decisions — not simply planting trees, but selecting the species and planting material suited to each site with the forest’s development over the coming decades in mind.
What does the new regulation mean in the Latvian context?
The new EU regulation does not represent an entirely new approach for Latvian forest owners.
Many of the principles it emphasises — suitable planting material, tree species appropriate to the site, mandatory forest regeneration and state oversight — are already part of Latvia’s forestry regulation and practice.
The new framework brings these principles into a more consistent European regulatory structure. For investors, the important point is that Latvian forests are already managed within a clearly regulated and supervised system.
The value of a forest is not determined only by how much timber it contains today. It is also shaped by how the forest is managed and regenerated for the decades ahead.
Sources:
European Commission — EU Regulation on the production and marketing of Forest Reproductive Material
Valsts meža dienests — Meža reproduktīvais materiāls
Valsts meža dienests — Meža atjaunošana
Regulation (EU) 2026/1392 on the production and marketing of forest reproductive material
