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Report from
Europe
Forests at centre of new UK approach with Africa
Investment in protection for Congo Basin forests is among
the focuses of the UK’s ‘New Approach to Africa’, the
details of which were published in December 2025. The
goal of the New Approach, the summary document says, is
to further UK partnerships with African States for ‘mutual
long-term benefits’.
Announcing the new policy direction, the Minister for
Africa, Baroness Chapman, said that the UK would be a
“partner, investor and most of all “reformer” and that
“African leadership” will be at the New Approach’s “very
centre”.
Speaking to African Ambassadors and High
Commissioners to the UK, she said: “It’s about unlocking
new growth opportunities, leading climate action, driving
innovation and pushing for reform of the international
system. It is an approach shaped by African leadership, by
African ideas and by African energy, bringing this
together with UK strengths across seven distinct principles
to advance shared interests.”
The seven priorities, she added, include reorientating the
UK’s aid relationship with African countries from ‘donor
to investor’, collaboration on migration and climate
change, supporting peace and stability, investing in health,
promoting African voices in global forums and cultural
partnerships.
“We want to champion trade for growth, whether by
supporting the African Continental Free Trade Area, or
strengthening UK-Africa trade through the Developing
Countries Trading Scheme and our network of Economic
Partnership Agreements,” said Baroness Chapman. “The
UK’s investment vehicles – from British International
Investment to FSD Africa Investments and UK Export
Finance - will continue to drive this innovative agenda.”
Specifically, it focuses on ‘protecting the world’s largest
forest carbon stores in the Congo Basin through
collaboration between UK and African scientists and
mobilising finance through the Belem Call to Action made
at COP30 in Brazil.
“Under the Call to Action donors have pledged to raise
more than US$2.5 billion over the next five years to
protect the Congo basin and Central African States will
mobilise domestic resources as well,” says the New
framework summary.
See: https://commonslibrary.parliament.uk/research-
briefings/cbp-10444/
and
https://www.gov.uk/government/speeches/launch-of-the-uks-
africa-approach-baroness-chapmans-
speech?utm_medium=email&utm_campaign=govuk-
notifications-topic&utm_source=dca08900-65bc-4ff1-afb2-
f944642045de&utm_content=daily
and
https://iati.fcdo.gov.uk/iati_documents/S30132115.odt
UK economic outlook low and slow
Predictions vary for UK GDP growth in 2026 but the
consensus is that it will be lower than the 1.5% predicted
for 2025 by the country’s official independent economic
and fiscal watchdog the Office for Budget Responsibility
(OBR).
Forecasting group EY Item predicts just 0.8% growth,
while auditor RSM and auditors and analysts PwC
forecast 1.2%. Goldman Sachs, the National Institute of
Economic and Social Research, the OBR itself and other
bodies are predicting a faster rate of expansion of 1.4%.
Even this higher figure, is described by commentators as
‘subdued’, with economic performance adversely
impacted by persistent global uncertainty.
Goldman Sachs predicts that the labour market will keep
weakening, with the unemployment rate rising to 5.3% in
March 2026. But the rate is expected to stabilize as
growth picks up and will also be offset by ‘significant
cooling of inflation and further rate cuts from the Bank of
England’.
“Private sector investment is expected to contract this
year, keeping UK growth subdued,” it says. “However, a
further reduction in interest rates should bring down the
cost of finance and support a rebound in business spending
next year. In the meantime, businesses will be looking to
policymakers to further embed stability into the UK
economy to support longer term planning and investment
decisions.”
The OBR predicted in November 2026 that UK GDP
growth would be 1.5% per annum over the next five years.
This is a downgrade of 0.3 percentage points on its
prediction for the period made in March 2025.
See - https://www.goldmansachs.com/insights/articles/uk-gdp-is-
expected-to-grow-1-point-4-percent-this-year-despite-weaker-
employment
and
https://www.ey.com/en_uk/newsroom/2026/02/uk-economy-set-
for-modest-gdp-growth-in-2026
and
https://view.rsmuk.com/real-economy/uk-2026-economic-
outlook/?utm_source=rsmuk&utm_medium=website&utm_camp
aign=uk-economic-outlook
and
https://niesr.ac.uk/reports/economic-outlook-winter-2026
Multiple issues slow UK housebuilding
According to Euroconstruct, UK housebuilding is some
way off the government’s target of building 1.5 million
new homes in its current five-year term.
The organisation’s latest report says the UK construction
sector, which accounts for over 70% of the country’s
timber consumption, is facing weak property market
activity, rising operational costs and subdued buyer
demand. The result is ‘one of the most challenging
environments for housebuilders in over a decade’.
“At the current pace, the wider 2025-26 net additional
dwellings are unlikely to surpass the 2023–24 level of
221,000, well below the government’s implied 300,000
home benchmark toward its overall target,” states
Euroconstruct.
It also reports that the government’s budget in November,
when it laid out spending and tax plans, delivered little
support to the house building sector. In particular, the
sector reports little progress in government plans to ease
the planning process.
“Without decisive government intervention, streamlined
planning, meaningful fiscal incentives, and stronger
support for first-time buyers, the sector will struggle to
break out of stagnation,” concludes Euroconstruct . “For
now, the 1.5 million homes target looks less like a
roadmap and more like a distant aspiration.”
See: https://www.euroconstruct.org/news/uk-housebuilding-hits-
a-wall/
Countdown to new EU wood formaldehyde restrictions
Suppliers of wood-based articles and furniture to the EU
market have until August to meet strict new rules on
formaldehyde emissions.
These products were brought under the remit of the
REACH Regulation (Registration, Evaluation,
Authorisation and Restriction of Chemicals), the central
pillar of EU Chemicals legislation, in 2023 under
Regulation (EU) 2023/1464. Enforcement of the new rules
starts on August 6, 2026, for wood-based article and
furniture makers, while vehicle interiors product suppliers
have until August 6, 2027.
The new limit is 0.062 mg/m3 for these product
categories. That is exactly half the value of 0.124 mg/m3
as recommended by the World Health Organisation, on
which the established European E1 classification is based.
Although it is stressed that the new rules do not apply to
formaldehyde-containing products or materials, notably
virgin wood, that release the substance into the atmosphere
naturally.
According to international testing services provider
Mesurlabs, a range of other goods and items are also
exempt. These include second-hand articles, products used
exclusively outdoors and products for exclusively
industrial or professional use.
To support compliance, the European Commission
Chemicals Agency (ECHA) in November 2025 published
guidelines on appropriate emission testing methods under
the new rules. This clarifies reference conditions in
Appendix 14 of the REACH Regulation and explains how
to handle results obtained from tests under different
conditions.
See: https://catas.com/en/news/webinar-ready-for-change-
everything-you-need-to-know-about-the-formaldehyde-
restriction-in-2026/
and
https://measurlabs.com/blog/formaldehyde-testing-and-
regulations-in-the-eu/
and
https://www.fedustria.be/en
and
https://echa.europa.eu/documents/10162/17233/rest_formaldehyd
e_guideline_en.pdf/35000cf2-5c37-e96e-52f7-
367b41172915?t=1747203191545
and
https://measurlabs.com/products/en-717-1-formaldehyde-
emissions-from-construction-materials/
and
https://www.geomechanics.io/news/article/eu-mdf-
formaldehyde-limits-postbrexit-key-compliance-notes-for-
specifiers?category=policy
Amsterdam makes landmark pledge to timber building
Amsterdam authorities and businesses have jointly
committed to building of at least 20% of the metropolitan
area’s new housing in timber and bio-based materials.
More than 100 public bodies and private sector enterprises
made this pledge on November 20, 2025, by signing the
Timber Construction Pact (Houtbouw Pact 2026-2030).
Signatories included representatives of municipal
authorities, developers, housing associations, investors,
contractors, banks, and architects.
According the Amsterdam Institute for Advanced
Metropolitan Solutions (AMS), the development is
inspired by a ‘bold vision cementing the city’s
commitment to innovating the construction industry’.
According to the Amsterdam Metropolitan Region (MRA)
the pact is a response to societal challenges that require a
‘structural transition’ in the construction sector.
“The pact focuses on combating climate change,
addressing the housing shortage, and alleviating the
shortage of raw materials,” it says. “use of timber
construction and other biobased building methods reduces
CO₂ emissions and even sequesters it. Industrial timber
construction enables faster, cleaner, and more labour-
efficient construction. Furthermore, the use of renewable
materials contributes to a circular economy.”
The background to the pact is that, to meet housing need,
Amsterdam must build 30,000 new homes a year, while it
is committed to achieving carbon neutrality by 2050.
The Timber Construction Pact has five ‘workstreams’
Designating sites for timber construction
Knowledge development and sharing
Making timber economically competitive
Adapting building codes to facilitate timber
innovation
Building public understanding and support.
See - https://www.metropoolregioamsterdam.nl/nieuws/meer-
dan-100-handtekeningen-onder-houtbouw-pact-mra/
https://www.ams-institute.org/news/how-the-dutch-capital-is-
building-a-carbon-neutral-future-with-mass-timber/
and
https://www.vvnh.nl/
Success of Dutch civil engineering tropical timber
‘accelerator’
Given its success so far, it’s been decided to continue the
role of a knowledge accelerator to promote use of tropical
wood in Dutch civil engineering.
Deployment of a knowledge accelerator has been an
integral part of the Action Plan Wood in civil engineering
and infrastructure projects (GWW) . A number of
Netherlands Timber Trade Association (NTTA) members
are involved in the initiative aimed encouraging use of
timber from sustainably managed tropical forests.
Brydis Perdijk of Kern Hout has taken the role since 2024.
Her work has included running lunch meetings for
engineering consultancies, municipalities and contracting
authorities.
“These activities have led to a more positive attitude to use
of wood and, in some cases, to project specifications being
revised in favour of timber,” said the NTTA. “In light of
these results, it has been decided to extend the role of
Knowledge Accelerator Wood in GWW.”
See - www.houtindegww.nl
and
https://www.vvnh.nl/
Global Gateway Investment Hub - opportunities for
forestry and tropical timber private sector financing
The Global Gateway Investment Hub is an initiative
designed to streamline and amplify private sector
involvement in the EU’s Global Gateway investment
strategy. This new platform aims to facilitate investment
projects by EU companies across partner countries in Sub-
Saharan Africa, Asia and the Pacific, and Latin America
and the Caribbean, covering key sectors including climate
and energy, digital, education and research, health, and
transport.
Commissioner for International Partnerships Jozef Síkela
said: “One of the key priorities of my mandate is to
enhance the involvement of the private sector in Global
Gateway projects, as their expertise, innovation, and
investment are crucial to our success.
The launch of the Global Gateway Investment Hub marks
a major step forward in making EU support more
accessible and effective for companies eager to engage in
sustainable and strategic investments globally.
By providing a clear and coordinated pathway for private
sector participation, we are creating win-win partnerships
that advance global development while opening new
markets and opportunities for European businesses.”
The Global Gateway Investment Hub will provide a
central framework for receiving and assessing EU private
sector investment projects and connecting them with a
broad array of financial and non-financial EU support,
including funding from the European Commission,
European Investment Bank (EIB), development financial
institutions (DFIs), export-credit agencies, and national
governments.
By offering a clear, coordinated, and agile entry point for
investment proposals, the Hub will foster impactful
projects that promote sustainable development abroad
while opening new opportunities for EU businesses.
See: https://global-gateway-forum.ec.europa.eu/news/launch-
global-gateway-investment-hub-empowering-eu-private-sector-
engagement-worldwide-2025-10-08_en
and
https://international-partnerships.ec.europa.eu/investment-
hub_en
European wood floor market stabilises
The European Parquet Federation (FEP) says that the
European wood flooring market stabilised in 2025 after
reaching its lowest point in 2024
“After a sharp drop in consumption in 2023, the parquet
market bottomed out in 2024,
showing only a slight additional decrease,” says FEP. “In
2025, it appeared to stabilise, though at a low level. The
year started relatively well, but activity slowed after the
summer. Certain costs – such as timber and energy –
remain elevated.”
The positive effects for the European timber flooring
business of the definitive anti-dumping measures on
multilayer wood flooring from China, introduced mid-
July 2025,– are expected by FEP.
“However, market developments such as lower prices of
Chinese imports compared to the [dumping] pre-
investigation period and a growing influx of parquet
products from a number of other countries that until
recently supplied only small volumes to the EU suggest a
weakening of these protective measures.
We are closely monitoring the situation and considering
raising the issue with the European Commission to request
further assessment of these import developments through
new investigations” said the FEP.
See: https://www.parquet.net/2026/02/european-parquet-market-
2025-stable.html
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