Legal frameworks and policy approaches differ to an extent between Sweden, Finland, and the Baltic countries. Even though Sweden changed its building code from material-based to function-based standards, in line with EU’s guidelines, the EU rules leave much room for implementation to individual member states. Therefore, Finland took more gradual steps and eventually adopted a more hybrid approach. Baltic states have moved even more cautiously, however multi-story-building in timber is not restricted. So far, there are a few pilot projects, but a mix between fear from private actors and other related regulatory barriers still make development slow. Estonia has already standards for up to eight story timber buildings and is to encourage market creation by using timber in 50% of all new public buildings in coming years. Similarly, Lithuania aims at imposing a minimum quota of 50% of all public buildings being built of biological resources.  

There are pros and cons to the different approaches. Removing technical specifications to building regulations makes the use of timber possible, though it does not automatically incentivise its use. Indeed, requiring the use of timber, or any other material, in public procurement in Sweden is not permitted. Instead, the Lithuanian approach of requiring the use of bio-resources would more directly steer the industry to adapt. These approaches may be more or less effective in different countries. Rather than hard policies, Sweden has put emphasis on research and triple-helix cooperation and in that way generating knowledge, awareness, and trust amongst stakeholders. However, this might also relate to the specific idiosyncrasies of different cultures and policy traditions. Finland’s policy efforts have mainly focused on solving technical issues and in the Baltics, multi-storey timber construction efforts have mainly taken the form of pilot projects. All these have helped push ahead the development of the market niche. On their own, however, they are not enough to secure long-term development.  

Today, regulations are tightening up as the deadline for meeting the carbon neutrality goals is nearly at the doorstep. In 2022, Sweden and Finland adopted the requirement for climate declarations on all new buildings and will start setting up limit values for carbon emissions in upcoming years (expected by 2025). Baltic countries are expected to take a similar path as well as the EU, which is expected to make standard expectations for the whole union. In Estonia climate declarations will be required from 2025. Regardless of countries’ regulatory frameworks, limitations on carbon emissions will automatically incentivise the use of timber.  

Despite differences in policies and regulations, however, all countries struggle with similar challenges, which go beyond regulatory bottlenecks.