Proposal for the updated Strategy for sustainable development of forestry in the Republic of North Macedonia (2006 - 2026)

Framework Contract SIEA 2018 Lot 1 – Sustainable Management of Natural Resources and Resilience
Delegation of the European Union to the Republic of North Macedonia
“SUPPORTING THE REFORMS IN POLICY AND
LEGISLATION IN FORESTRY IN NORTH MACEDONIA”
Contract N° 300023717
ANNEX 2A:
PROPOSAL OF THE UPDATED STRATEGY
FOR SUSTAINABLE DEVELOPMENT OF FORESTRY
IN THE REPUBLIC OF NORTH MACEDONIA (2006 – 2026)
English version
August 2022
This project is funded by te European
Union
‘This publication was funded by the European Union. Its contents are the sole responsibility of EURATA
Consortium and do not necessarily reflect the views of the European Union.’
This project is implemented by EURATA Consortium

Proposal for the updated Strategy for Sustainable Development of Forestry in the Republic
of North Macedonia
1
DELEGATION of the EUROPEAN UNION
of the Republic of North Macedonia
Project:
“SUPPORTING THE REFORMS IN POLICY AND
LEGISLATION IN FORESTRY IN NORTH MACEDONIA”
Output 1:
Proposal of the updated Strategy for
Sustainable Development of Forestry in the
Republic of North Macedonia (2006 – 2026)
(Final version, 24. 8. 2022)
Project team:
MSC. FRANC FERLIN, FORESTRY EXPERT AND TEAM LEADER
MSC. SASHO PETROVSKI, FORESTRY EXPERT
Project implemented by:
EURATA Consortium – AESA Hungary
‘This publication was funded by the European Union. Its contents are the sole responsibility of
EURATA Consortium and do not necessarily reflect the views of the European Union.’

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Contents
2. ANALYSIS OF THE STRATEGY IMPLEMENTATION ..................................... 6
3. NEED FOR THE STRATEGY REVISION ...................................................... 11
4. VISION, GENERAL OBJECTIVES AND DIRECTIONS .................................. 12
4.1. Vision........................................................................................................ 12
4.2. Aim ........................................................................................................... 13
4.3. General objectives .................................................................................... 14
4.4. General directions for fulfilling the objectives ........................................... 14
5. FORESTRY SECTOR, FOREST RESOURCES AND THEIR FUNCTIONS ...... 15
5.1. Forest resources....................................................................................... 15
5.2. Forest and game ....................................................................................... 17
5.3. Other forest products................................................................................ 17
5.4. Other forest functions or ecosystem services ........................................... 18
5.5. Products from wood.................................................................................. 19
6. ROLE OF THE STATE IN THE DEVELOPMENT OF THE FORESTRY
SECTOR.................................................................................................... 20
6.1. Improvement of institutional setup and functioning of the state forestry
sector institutions/organisations and their role and capacities.................. 20
6.1.1. Separation of the function of administration of forests on behalf of the
State from the commercial forest management function ......................... 22
6.1.2. Establishing the Forest Agency .............................................................. 22
6.1.3. Upgrading the Forestry and Hunting Sector of MAFWE to the
Directorate.............................................................................................. 23
6.1.4. Transformation of the existent Public Enterprise “National Forests” to
the State Forest Company....................................................................... 24
6.1.5. Establishing the new Forestry Institute................................................... 25
6.1.6. Strengthening the capacities of the forestry institutions/organizations... 25
6.2. Improvement of the role and capacities of the nature protection sector
institutions related to forest ecosystem management within the
protected areas ......................................................................................... 25
6.3. Management of the state forests ............................................................... 27
6.4. Combating illegal forestry activities .......................................................... 27
6.5. Forest inventory, planning, monitoring and information system................ 28
6.6. Public financing of forestry activities and measures ................................. 29
6.7. Forest land information and consolidation ................................................ 32
6.8. Support to the management of private forests........................................... 32
6.9. Public participation and awareness raising ............................................... 32

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6.10.Forestry education, specialization and qualification.................................. 33
6.11.Forestry research...................................................................................... 34
6.12.Inter-sectorial and international cooperation............................................. 34
7. FORESTRY AND THE ENVIRONMENT........................................................ 35
7.1. Protective forest functions ........................................................................ 35
7.2. Forest biodiversity conservation and restoration ...................................... 36
7.3. Sustainable and close-to-nature management of forests within national
parks and other protected areas................................................................ 37
7.4. Forests and climate change mitigation and adaptation.............................. 38
8. FORESTRY, RURAL AND SOCIAL DEVELOPMENT.................................... 39
9. IMPLEMENTATION OF THE FORESTRY STRATEGY .................................. 40
9.1. Forestry and forest-related legislation....................................................... 40
9.1.1. New Forest Law ...................................................................................... 40
9.1.2. New Forest Agency Law ......................................................................... 42
9.1.3. New State Forest Company Law ............................................................. 42
9.1.4. Nature Protection Law ............................................................................ 43
9.1.5. Agriculture and Rural Development Law................................................. 43
9.2. Strategic planning documents................................................................... 43
9.2.1. National Forestry Programme with Action Plan....................................... 43
9.2.2. Forest-related measures as part of the National Rural Development
Programme............................................................................................. 44
9.2.3. Forest-related measures as part of the National Biodiversity Strategy
and Action Plan ...................................................................................... 45
9.3. Supporting the reforms, financing and development of the Sector ............ 45
9.4. Co-ordination, monitoring and evaluation of the Strategy implementation 46

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1. INTRODUCTION
According to the traditional understanding, forests are a resource that produces
wood and non-wood forest products. Besides, forests offer many other benefits
to society, such as the possibility for relaxation and recreation; various protection
functions and biodiversity conservation; mitigation of climate extremes and water
protection; oxygen production, absorption of carbon dioxide and consequent
climate change mitigation; and improvement of environmental quality. Currently,
the contributions of forests to climate change mitigation and adaptation are
recognised globally and nationally. All these very important forest functions or
ecosystem services are in close correlation with the forest quantity and quality
structure which should be provided through sustainable forest management. The
forests thus fulfil the production, ecological and social functions of significant
importance for the national economy and society, especially in rural and mountain
areas.
Based on these numerous forest functions or ecosystem services, the Republic
of North Macedonia perceives forests as part of its national treasure and heritage.
The Constitution of the Republic of North Macedonia affirms this: "All the natural
resources of the Republic of Macedonia, the flora and fauna, amenities in
common use, as well as the objects and buildings of particular cultural and
historical value determined by law, are amenities of common interest for the
Republic and enjoy particular protection"1.
During the initial years of independence, the Republic of North Macedonia got
into a difficult time of transition when the economic and political system had to be
reconstructed quickly. The period of transition was additionally burdened by the
complex social and economic situation.
Several changes in the development of society and the economy have led to a
negative impact on the forestry sector. During this period, many problems and
circumstances brought forestry into a worrying financial situation that resulted in
stagnation and backtracking of the forestry sector. After 16 years, the situation
has even worsened, among others, due to the consequences of the Covid-19
pandemic in the last two years.
Recently, some strategic national documents related to forests had been adopted
in North Macedonia - following international environmental commitments - such
as the National Strategy for Biodiversity (2018), the National Strategy for Nature
Protection (2017) and the Strategy for Environment and Climate Change (2014).
The new National Strategy for Agriculture and Rural Development (2021) has
also been adopted, which provides the possibility for financial support to forest
and forestry-related measures in the context of rural development.
At the same time, the Republic of North Macedonia is a signatory of several
international agreements on forests and environmental protection, which
influence the forestry sector. The newest ones are the UN Sustainable
Development Goals (especially target 15.2 related to the promotion of the
sustainable management of all types of forests, halt deforestation, return
1 The Constitution of the Republic of Macedonia - Article 56, paragraph 1

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degraded forests to their original condition and significantly increase the
restoration of degraded forests and afforestation globally), the UN Decade on
Ecosystem Restoration (2021 – 2030), as a rallying call for the protection and
revival of ecosystems all around the world and the Bonn Challenge (2011), as a
global goal to restore 350 million hectares of the degraded and deforested
landscape by 2030. In relation to this goal, North Macedonia is already committed
to restoring and afforesting about 15.000 hectares of forest and non-forest land,
which is considered in this updated Strategy for Sustainable Development of
Forestry in the Republic of North Macedonia (SSDF).
The accession process of the Republic of North Macedonia to the EU implies
harmonisation of national policies, strategies and legislation with the EU policies,
strategies and acquis related to forests and forestry, such as the EU Forest
Strategy for 2030, the EU Biodiversity Strategy for 2030, the EU Timber
Regulation (EUTR, 2010), the EU FLEGT Regulation (2005), the new EU
Taxonomy Regulation (2020) and the EU Directive on Renewable energy (2018).
In the EU context, also the EU Green Agreement for the Western Balkans (Green
Agenda for Western Balkan) is of particular importance for North Macedonia.
The objective conditions now impose the necessity for creating an effective
system for multifunctional forest management, efficient forest administration,
governance, and sustainable development of the forestry sector, based on
European standards.
This updated Strategy should thus reflect contemporary policies and trends
related to forests and forestry in the international and European context. At the
same time, it should provide ways to solve the key challenges and needs of the
North Macedonian forestry sector related the sustainable forest administration,
management, and development, in line with the intention of the Republic of North
Macedonia to become a full member of the European Union.
In response to that need, in November 2021, the process of revising the Strategy
began within the EU-funded project “Support to reforms in forestry policy and
legislation in North Macedonia” based on technical background documents
prepared within a previous EU-funded project. The process was facilitated by two
experienced forestry experts, and supported by inputs from the technical and
strategic working group members, based on contemporary principles of
participative strategy development, stakeholder consultations, and wider public
participation. The process of updating the Strategy was thus open and
transparent, involving all key forest stakeholders in the Republic of North
Macedonia. All working versions and supporting documents were continuously
made available (through OneDrive platform) to the working group members.
Before the end of the process, five regional public consultations were organised,
in cooperation with the Forestry Sector of the Ministry of Agriculture, Forestry and
Water Economy, where the key forestry strategic issues were considered
together with the new Forest Law and the National Forestry Programme. These
consultations were carried out in July 2022 and proved the commitment of all key
stakeholders to the proposed strategic solutions.
The updated SSDF is valid until 2026 – in line with the validity of the original
Strategy adopted in 2006 – although the majority of objectives and directions

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related to forests defined below are of long-term nature and should stay relevant
also in future after 2026.
2. ANALYSIS OF THE STRATEGY IMPLEMENTATION
The Strategy sets long-term objectives and directions to fulfil them. The updated
Strategy is based on the assessment of implementation success considering the
objectives and directions defined.
The objective of the Government was to increase the contribution of the
forestry sector, through sustainable forest management, to the national
economy and rural development, providing renewable resources and
protecting the local and global environment, which will improve the quality
of life of all citizens. To maintain and enhance the economic efficiency of
forestry for the needs of overall national development, the Government was
committed to (a) providing a legal, institutional, and economic framework for the
implementation of sustainable forest management and (b) providing a permanent
financial mechanism that will improve the situation with forests and the
development of forestry.
The vision, the general objective and the development directions of the Strategy
are still relevant, both in a national and European context. However, most
elements of the vision have not been materialised, such as the competitive
forestry sector that has been facing a decline in its contribution to GDP from 2014
onwards, the untended and unprotected forest plantations, not improved forest
quality, the degraded forests have not been converted to high forests and illegal
forest activities have not been eradicated. Also, the economic benefits of non-
wood forest products has remained insignificant for the forestry sector, the
general benefits of forests have not been recognized by society and also not
considered in forestry planning and implementation. Among other vision
statements, the forestry sector did not provide higher wages for forest workers
and employees. According to the vision, only a system for early warning and
prevention of forest fires has been established and materialised since the
adoption of the Strategy.
Objective: To increase the area under forest and improve the composition
and quality of forests based on management according to the principles of
sustainability.
Most envisaged directions have not been fully implemented in relation to this
objective. The conversion of poorly productive agricultural land and bare land into
forest land has not been fully implemented by the Agency for Real Estate
Cadastre (AREC) and the planned 2,500 hectares have been realized to 50%
only. It must be noted that the most important measures, such as thinning in
young forests, restoration and reconstruction of degraded forests and conversion
of low-stemmed to high-stemmed forests have been carried out to a very low
extent - primarily due to the need to invest significant funds in their
implementation. Thus, the large-scale clear-cut system in low-stemmed forests –
based on forest regeneration from coppice – continues in the majority of forests,

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causing further degradation of forests, while reducing their resilience to climate
change. One of the future priorities for forestry should be to ensure the fulfilment
of this objective. The construction of forest roads and skidding ways have not
been considered environmentally friendly ways and have been constructed
without the application of detailed project documentation. Regarding the
preservation of the natural forest gene pool, the direction was implemented
according to the Strategy. Since 2006, a total of 46 seed stands have been
registered on an area of 75 hectares. To strengthen the physical protection of the
forests against negative factors, a step has been made in equipping the Forest
Police, but on the other hand, the capacity of the State Inspectorate for Forestry
and Hunting has been even weakened. The ICP (International Cooperative
Programme) Forest network has been restored, but its maintenance remains
insufficient, while the DFR Service submits reports to the MAFWE on a regular,
annual basis. Licensing has been introduced for forest operation providers.
Protective equipment, training, and instructions for safety at work have been
provided for full-time employees of the Public Enterprise National Forests
(PENF). Electronic tracing of the timber masses has been introduced as a system
for the prevention of illegal activities and corruption, but it is not fully functional
yet.
Objective: Achieving a normal number of game in the hunting grounds of
the Republic of Macedonia, as well as the formation and permanent
maintenance of game populations that with their age and sex structure will
ensure the reproduction of quality individuals, sustainable management
and development of hunting tourism.
Regarding the realization of this objective, it was concluded that most of the
directions have been implemented. The hunting ground managers developed
corresponding capacities and the native game species are in regular condition.
Reproduction was performed with ordinary deer on 5 hunting grounds. The
Hunting Federation has been reaffirmed as an association of hunters, conducts
the evaluation of trophies as a revenue activity, and is also active in international
cooperation. The establishment of a database on the number of game by hunting
grounds, hunting districts and hunting regions have been introduced but not yet
completed.
Objective: Encourage the use of other forest products through integrated
forest management based on a sustainable economic, socio-economic and
environmental approach and provide conditions for sustainable use and
additional income for the local population.
Generally, this objective has been poorly implemented. No inventory of non-wood
forest products has been conducted. The regulation of (normative, institutional,
and economic framework) the use of these products has not been realized, while
only a part of the promotion of environmental practices for collection has beeb
realized. Accompanying materials and a Rulebook for the collection of non-wood
products have been prepared. There was no support for small and medium
enterprises that purchase and process other forest products.

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Objective: To create the necessary organizational structures with adequate
capacity to ensure integrated management, to protect and manage forest
resources sustainably, taking into account the impacts on the environment,
social status, culture and economy.
The directions related to this goal have not been implemented. Reorganization of
the Forestry Sector in the MAFWE and establishment of an Agency for Forests
and Hunting with sectors and creation of an adequate governing structure for
forest resources and wildlife have not been realised. The reorganisation and
transformation and the PENF, although planned as a fast process, have not been
carried out. The establishment of a governmental institution and/or licensed
independent institutions for management planning in forestry and hunting
grounds has not been implemented. Thus, the institutional/organisational reform
of the forestry sector has not been implemented yet.
The SIFH as an independent body within the MAFWE and the Inspection Council
reduced its human (forestry inspectors) and technical capacity (equipment). The
Forest Police however increased its human, and currently also technical capacity
(equipment). The introduction of criteria for expert planning for special purpose
forests is in the initial phase. There was no financial support for the formation of
the forestry associations.
Purpose: Promotion of consistent implementation of the Law on Forests in
the management and protection of forests and forest resources in general.
Raising public awareness aimed at protecting forests from all negative
impacts.
Legal provisions for forest protection against illegal harvesting have led to
meeting the majority of the requirements of EUTR. However, the Study on
forestry sector development and institutions under the EU-funded project “Review
of forestry sector in North Macedonia and preparation of 2019 IPA project for
forestry” concluded that there is still a large amount of non-registered, illegal
harvesting. It further concluded that the efficiency of the State forestry Institutions
and/or Services, which control and supervise forest management is weak. The
cooperation with other institutions has been improved, especially with the Ministry
of Interior. Since 2006, the number of Forest Police officers has increased, but
on the other hand, the capacity of SIFH has been weakened, as mentioned
earlier. A Committee for Prevention of Corruption in Forestry has been
established, and the increase in the fines for the misdemeanour provisions has
been realized, but the results are not at an enviable level. The cooperation with
Public Prosecution and Courts, as well as with Academy for Judges and
Prosecution was weak. There is room for improvement in terms of transparency
in forest management.
Objectives: The planning of all economic activities in forestry should be
based on the principle of sustainable development. The state, the private
sector, the public, non-governmental organizations, and international
institutions, are to be provided with accurate and timely information on the
condition of forests, forest management and forest products. Efficient
exchange of information within the forestry sector and among other sectors

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and raising public awareness of the importance of forests and forestry to
society, with the active participation of all stakeholders.
The directions leading to the fulfilment of these objectives have been partially
implemented. A methodology for national forest inventory was developed with the
support of FAO, but it has not been used and an inventory has not been
implemented. Regular monitoring of forest health conditions according to
international methodology has been introduced, but not regularly implemented.
The DFR service was also introduced and regularly implemented. Planning by
licensed independent entities has not been introduced. The Commission for
reviewing the plans is functional, however. The forestry administration has
technical support, but the information system has not been introduced at the
national level. An electronic system for tracing the wood mass has been
introduced but is not functional on the whole territory and is not used by all
entities. GIS technology as a modern tool is used in forestry planning, but the
foundations for multifunctional planning have not yet been introduced. An
integrated forest information system has also not yet been introduced to support
sustainable forest management.
Objective: To ensure adequate public funding for activities related to
sustainable forest management, maintenance of forest protection and other
public functions, conservation, control, conservation, improvement, and
enhancement of biodiversity.
The public funding has been ensured to a minimum extent through the extended
forest reproduction fund. The PENF, however, did not provide payments to the
extended reproduction fund, and neither the two National parks did. The
construction of forest roads which are in the public interest has not been financed
by the Public Road Fund. Valorisation of forests has been introduced through
compensation for the conversion of forests into another type of land only. Support
from international donors was not sufficient.
Objective: To update the cadastral records of forests and other forest land
and to complete the demarcation of the state from private property.
Consolidation of state or private forests.
The demarcation between agricultural and forest land and the updating of these
data remains a constant task for the forestry sector, given the natural expansion
of forests and the changes that occur due to the implementation of projects of
public interest (highways, reservoirs, lines, etc.). Since 2006, AREC has
introduced digital data that is available and is the basis for the demarcation of
property of different ownership in the field, as well as the basis for mapping in
forestry planning. Consolidation of fragmented forest properties is not yet
implemented.
Objective: To create an effective system of support for private owners to
meet personal and general interests and to achieve the goals of sustainable
management, using the experiences of European Union member states.

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This support for private forest owners (PFO) is partially implemented. In 2011,
the provision of professional and technical services by licensed entities was
introduced, but in 2014 it was abolished due to some corruptive practices. In
terms of planning, there is a legal possibility for PFO to associate and develop a
Special Forest Management Plan, but in practice, this was not implemented.
Since 2009, the PFO have more access to the funds for extended reproduction
of forests through measures of thinning in young plantations and afforestation,
but the possibilities for the use of the funds by the PFO are still not proportional
to the amount of funds allocated by the PFO. This is mainly because the financial
support to PFO for the preparation of the programmes for use of the funds has
not been assured.
Objective: To ensure transparency in the process of forest management
and to increase the presence of the forestry sector in the public.
Some of the public promotion of the importance of forest ecosystems was
regularly realized through the non-governmental sector as a project activity
supported by various donors, mostly in cooperation with relevant institutions. Part
of the promotion was realized also by the institutions themselves as part of the
regular reporting. However, there is no strategic media approach to emphasize
the importance of the sector and the complexity of the day-to-day responsibilities
of employees in forestry to achieve sustainable forest management and thus
ensure ecosystem services benefitting the wider public interest.
Objective: To modernize and support the education and training system, in
accordance with sustainable forestry, to improve the economic
development of the forestry sector and the quality of the environment.
There is still a lot of room for improvement in this area. Existing education
programs are not at the level of world practice, such as emphasizing the
multifunctionality of forests in a modern context. This is especially true for high
school education. There was a lack of cooperation with the Forestry Faculty on
these important matters.
Objective: Acquisition of new knowledge and development of technologies
in forestry by improving the capacities of research institutions.
In this part, the acquisition of new knowledge is mostly realized through various
international cooperation programs (Erasmus, Horizon) and the realization of
projects financed by international or bilateral donors (FAO, UNEP, SNV, DBU,
SDC and others). There are no regular sources of funding for forestry research
nationally.
Objective: Establishment of appropriate cross-sectorial cooperation that
will enable an uninterrupted flow of information and joint activities at all
levels. At the same time, to ensure participation and connection with all
international institutions and associations in the field of forestry.
Regular communication with other institutions is realized, but not all institutions
have reached the same understanding related to forest management and

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conservation, due to which cross-sectorial conflicts arise. Furthermore, National
Forestry Council, as defined by the Forest Law, has never been formed. MAFWE
regularly monitors Forest Europe processes as a basis for sectorial coordination
with modern European trends. A declaration for the cooperation of the main
actors in forestry was signed: MAFWE, PE National Forests and NGO Private
Forests.
3. NEED FOR THE STRATEGY REVISION
Based on the conclusions of the assessment of the Strategy implementation in
the last 16 years, considering that:
• the forest area and the growing stock slightly increased, while the forest
quality decreased due to a large amount of illegal harvesting, extensive
forest fires and further implementation of the coppice forest management;
• the illegal harvesting and other illegal forest activities, including corruption,
were not reduced;
• the State Forestry Administration and the Public Enterprise “National
Forests” (PENF) had not been reorganised and consequently the new
Forest Agency was not established;
• the forestry administration procedures were not deregulated accordingly
and the efficiency of the forest and forestry sector’s administration was not
improved;
• the management of coppice forests, predominantly based on clear-cuts
and repeated coppicing, remained ecologically unsustainable;
• the management of state-owned forests continued to be economically
non-efficient, the forestry enterprises non-competitive, while the PENF’s
financial trends declined,
• the forestry sector’s contribution to GDP decreased and the socio-
economic situation of rural people not improved,
the key elements of the Strategy have not been, or have been limitedly
implemented, and the urgent need for the Strategy revision arose. The revision
is needed also due to harmonization with the new EU strategic documents related
to forests, such as the Biodiversity Strategy for 2030 and the Forest Strategy for
2030, based on the Green Deal. To that end, the following Strategy (sub)chapters
should be revised:
• General and specific objectives and directions related to the forests and
forest management;
• Administration and management of the state-owned forests under the
sector’s responsibility, including sectorial institutional set-up, forest law
enforcement and safeguarding, forestry planning and information
management, and forestry financing;
• Management of private forests;
• Forestry and environment, with particular need to add the (sub)chapters
related to the higher ecological standard of forest management within
protected areas, and the forests and climate change mitigation and
adaptation;

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• Forestry and rural development;
• Transformation of the Forestry Strategy into action, in particular the
adaptation of forest and related legislation and its harmonisation with EU
requirements, elaboration of the strategic planning documents such as the
National Forestry Programme, harmonisation with forest-related national
strategies and programmes, as well as harmonisation of the strategies with
the Forestry Strategy update.
4. VISION, GENERAL OBJECTIVES AND DIRECTIONS
4.1. Vision
Driven by the economic importance of forests, the activities of the forestry sector
will provide conditions for competitiveness and adaptiveness of the forestry sector
to the ever-changing market demands. In accordance with its capacities, forestry
will provide conditions and resources for sustainable economic growth of the
sector.
Forest areas will continue to increase through the afforestation of bare lands with
quality plant material, mainly of domestic species. Tending and protection of
forest stands will be timely and appropriate providing biologically stable and
economically viable forests and respecting the natural processes. Degraded
forests and shrubs will be gradually transformed into high forests based on
adequate financial support. Illegal felling and other harmful activities will be
eradicated by strengthening forest law enforcement, forest governance and
control. These activities will contribute to the increase of total growing stock and
improve the quality of forests.
Non-wood forest product management will create significant economic benefits
for the forestry sector and the State, and will be appropriately legislated.
Contemporary infrastructure and facilities for collecting, processing, and
packaging will secure the competitiveness of the products in European markets.
Biological capacities will be respected, restricting over-exploitation, therefore
protecting economically and environmentally important species and biodiversity.
The state will recognize the multi-beneficial functions or ecosystem services of
forests and establish legal, institutional, and economical frameworks, enhancing
and stabilizing forestry’s position in society.
Special attention will be given to the protection and conservation of forests as a
dominant terrestrial ecosystem. This is of importance to biodiversity in general,
but also to secure social, economic, and cultural benefits to all citizens.
North Macedonian forest landscapes will be a popular destination for recreation,
sport, eco-tourism and commercial hunting tourism, enabling significant foreign
currency income. Besides the renowned tourist centres, a large portion of
activities and destinations will be directed to the most attractive forest
landscapes.

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The system for early warning and suppression of forest fires will be further
maintained and enhanced, while the state will secure efficient preventive
protection from pests and pathogens through an advanced quarantine service. In
cases of overpopulation of pests and pathogens, responsible institutions will act
promptly and accordingly, applying environmentally acceptable control methods.
Management and employees in forestry will utilize state-of-the-art technologies
and will be up to date with scientific and technological achievements. There will
be tight cooperation with scientific and educational institutions for training,
specialization, and research activities. Through qualified representatives from
state and non-governmental bodies, forestry sector representatives will be
members of relevant international organizations and will actively participate in the
exchange of knowledge and experience.
The forestry sector will employ qualified professional personnel, providing
prominent salaries, social and pension security, and social, cultural, and
recreational benefits.
Administration and management in the state forestry sector will be transparent,
while decisions will be based on professional foundations. Competent
management of the institutions and organisations will fulfil social, cultural,
institutional, environmental, and economic expectations toward sustainable forest
management and development.
United by a common vision, all forest-related stakeholders will participate in the
fulfilment of these Strategy objectives and implementation of its directions. The
Strategy will provide directions and guidelines for implementation of this vision
based on sustainability as the highest leading principle while meeting the needs
of present and future generations.
4.2. Aim
The Government aims to increase the contribution of the forestry sector to the
national economy and rural development through sustainable forest
management2, ensuring renewable resources and protection of the local and
global environment, and providing products and services for improving the quality
of life of all citizens.
To maintain and enhance the economic viability of the forestry sector in favour of
overall national development, the Government will:
• Provide a favourable legal, institutional, and economic environment for the
implementation of sustainable forest management.
2 The sustainable forest management means: “the stewardship and use of forests and other forest
land in a way, and at a rate, that maintains their biodiversity, productivity, regeneration capacity,
vitality and their potential to fulfil, now and in the future, relevant ecological, economic and social
functions, and that does not cause damage to other ecosystems”.

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• Ensure the permanent financing of planned forestry activities and measures
to maintain and enhance the forest resources and boost the development of
the forestry sector.
4.3. General objectives
The general objectives of the forestry sector are the following:
1. To ensure that the forest area coverage and the forest production potential
are increased, the stability and the quality of the forests are improved, the
accessibility of forests is increased, and the forest ecosystem health and
vitality are enhanced;
2. To ensure that the forest production functions (wood and non-wood) are
enhanced in a sustainable way, including economic efficiency;
3. To ensure that ecological and social forest functions or ecosystem services,
including conservation of forest biodiversity and landscape diversity, are
maintained and enhanced;
4. To contribute to climate change mitigation through adaptation of forests
composition and structure, increasing their resilience to climate change.
4.4. General directions for fulfilling the objectives
To achieve the aim and general objectives of the Strategy, the forestry sector
should:
1. Introduce multifunctional3, closer-to-nature4 and economically viable forest
management systems to all forests;
2. Intensify sustainable forest management, based on significantly increased
investments into forests as well as the increased harvesting level, along with
simultaneous reduction of illegal harvesting and trade in wood;
3. Introduce simultaneous maintenance and enhancement of forest functions or
ecosystem services through sustainable forest management and strive for
their comprehensive valuation;
4. Gradually shift from short to long-term use of forest wood products;
5. Adapt and improve the organizational set-up and functioning of the State
forestry institutions/organizations, based on separation of the State
administrative and commercial functions, and improve the efficiency in the
management of State forests;
6. Introduce and develop the system of State/public financing of forest activities
and measures in the public interest and ensure the purposed use of the funds;
7. Raise political and public awareness on the crucial roles of forests and their
ecosystem services, including conservation of biodiversity and climate
change mitigation;
8. Attract national and international funding for protection, conservation,
restoration and close-to-nature development of forests and sustainable
development of the forestry sector;
3 Means sustainable forest management system which respects various forest functions.
4 Means the forest management system which strives to mimic the natural forest composition,
structures and processes and to conserve biodiversity.

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9. Harmonize the forestry legislation with the national needs and international
and EU commitments.
5. FORESTRY SECTOR, FOREST RESOURCES AND THEIR
FUNCTIONS
5.1. Forest resources
The forests and other forest land in the Republic of North Macedonia amounted
to 1.122.753 hectares or 43.7% in 2018, out of which forests amounted to
1.007.095 hectares5 or 39.2%. The area of forests has increased by 4.9% from
2010, while the forests and other forest land by 6.2%. The total growing stock,
based on forest management plans, amounted to 93.081.000 m3 or 105 m3 per
hectare in 2016, which presents only an 8% increase in the last 27 years, while
the total annual increment is estimated to be 1.830.000 m3 or 2.02 m3 per hectare.
With the help of the Afforestation Fund, which was active until 1990, more than
140,000 ha of bare lands were afforested.
In 2018, 882.471 hectares or 88.70%6 of the total area was state-owned forest,
while their share in the total wood mass was 93.7%. Private-owned forests
comprise 11.30% (112.659 ha) of the total forest area, while their portion of the
total wood mass is 6.3% only.
Out of the total forest land area, 8% is not covered by forest management plans.
Forestry in North Macedonia is a branch of the economy that participates in the
Gross National Product with 0.4 - 0.5%, but if the multifunctional benefits are
valorised, the contribution is much bigger. The contribution of the forestry and
wood industry, including primary and secondary wood processing, furniture,
cellulose and paper, amounts to 0.9 - 1%. The trend is decreasing.
The planned annual available cut7 in the Republic of North Macedonia in the last
10 years is about 1.400.000 m3, out of which only around 60% is the registered
use. From all production, 80% to 85% is fuelwood.
Forests in the Republic of North Macedonia are characterized by very rich
biodiversity. North Macedonia has significant non-timber forest resources:
medicinal plants, mushrooms, forest fruits etc. and a relatively diverse game. The
importance of forests is further emphasized by the fact that the dominant part of
the protected areas are forests.
Some of the main threats and problems in forest management and governance
are illegal logging that takes huge proportions and other illegal activities, forest
5 https://www.stat.gov.mk/IndikatoriTS.aspx?id=18, Key indicators on forestry, Statistical office
of the Republic of North Macedonia, 2018.
6 http://makstat.stat.gov.mk/PXWeb/pxweb/mk/MakStat/MakStat, State Statistical Office of the
Republic of Macedonia, 2018.
7 Annual available cut - the planned and allowable amount of timber harvest on a specified area
of forest in accordance to the forest management plans.

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fires which have affected nearly 63 000 hectares of forests in the last 10 years
(2011 - 2020), climate change through the forest decline process, calamities8 of
insect and diseases. All these lead to enormous economic and environmental
losses to the sector.
Specific objectives:
The objectives related to the enhancement of the forest resources are:
1. To gradually increase the forest coverage by afforestation of non-forest land,
including natural expansion, to the minimum extent of 0.05% of the existent
forest area per year;
2. To gradually increase the forest growing stock towards their optimum
functional condition in the minimum extent of 0.5% per year;
3. To gradually improve the stability and quality structure of forests through
sustainable forest management (SFM), particularly by conversion of low
forests to high forests, in the minimum extent of 2% of treated coppice forest
area per year;
4. To gradually increase the openness of forests by new forest roads in the
minimum extent of 4% of existent total forest roads’ length, as well as;
5. To maintain and enhance the forest ecosystem’s health and vitality through
the sustainable forest management (SFM) measures.
Directions:
1. Identify and map the low productive and abandoned agricultural land, bare
land within the forest complexes and land that is in the process of natural
forest expansion, in State property that would be available and convenient for
afforestation, considering the ecological, economic, and social aspects,
including the ownership of the land.
2. Encourage the afforestation and reforestation of non-forest land based on
corresponding programmes or plans, using quality reproduction material and
an appropriate mixture of site-adapted tree species, taking into account global
climate change trends and local / site conditions;
3. Enforce the tending and thinning activities, especially in young forests, as well
as restoration of degraded and damaged forests, speeding up the conversion
of coppice forests into high forests, while reducing the extent of coppice forest
management and the associated clearcuts;
4. Increase the access to forests through (re)construction and maintenance of
roads, using environmentally acceptable methods;
5. Implement the measures for protection and conservation of the natural forest
genetic resources including:
• Further identification and conservation of the forest gene-fund9;
• Establishing a Forest Gene Bank;
• Establishing seed orchards from the seeds of "plus trees" of economically
valuable and rare forest tree species;
6. Ensure provision of the Diagnostic-Forecasting-Reporting (DFR) Service;
7. Implement the necessary preventive forest protection measures and sanitary
fellings;
8 calamities – damages due to overpopulated insects
9 gene-fund - all inherited material in a specific population.

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8. Implement the national criteria and guidelines for SFM in forest management
practices.
5.2. Forest and game
Objective:
To contribute to the improvement of game populations i.e. their sex and age
structure that enables their qualitative reproduction, sustainable use and hunting
tourism.
Directions:
1. Implement measures and activities for increasing the game population density
to a normal level;
2. Develop conditions for improvement of the situation of the domestic game,
reintroduction10 of the extinct domestic species and introduction of other game
species;
3. Increase investments for improvement of the trophy value of the game;
4. Improve coordination between the State and NGOs, esp. Hunting
associations;
5. Maintain a database for the game stocks in hunting grounds, by regions and
hunting management areas, and its continuous updating;
6. Implement scientific methods for sustainable game management and hunting
based on commercial principles.
5.3. Other forest products
The collection of other forest products (OFP) or non-wood forest products
(NWFPs) has a long history in North Macedonia. Forests and forest land are
reach on OFP, such as medical plants, forest fruits and mushrooms. However,
no inventory of the OFP’s potential and value, nor of collected and/or sold
quantities and values were conducted yet. Certain sorts of OFP are part of
affected and protected wild species of plants, fungi, and animals for which the
permissions for collection are already (partly) regulated by the Nature Protection
Law. Currently, about 40 small and medium enterprises (SMEs) are active in the
OFP sub-sector and are mainly export-oriented. The number of collectors of OFP
is not known but estimated to reach several thousand. The utilization of OFP is
an additional activity of the PENF, which as forest owner on behalf of the State,
sells the permissions for collectors. The sub-sector employs a significant number
of local citizens part-time and informally.
Objective:
To encourage the utilization of non-wood forest products in a sustainable way to
increase the revenues of the forestry sector and the incomes of the local
population.
10 reintroduction - introduction of a certain species in a certain area for the second time.

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Directions:
1. Conduct a nationwide survey (inventarisation) of the potential of non-wood
forest products in terms of quantity and monetary value;
2. Assess the actual quantities and monetary values of collected and/or sold non-
wood forest products, as well as of capacities for their processing;
3. Develop a mechanism for payments for the right to use the non-wood forest
products based on regional experiences, taking into account already regulated
– endangered and protected - wild species of plants and fungi according to the
Law on Nature Protection.
4. Allocate the institutional responsibility over the administration of the non-wood
forest products’ use right to the Forest Agency;
5. Promote ecologically friendly practices for the utilization of non-wood forest
products in accordance with the principles of conservation and sustainable
use.
5.4. Other forest functions or ecosystem services
Other forest functions traditionally include forest ecological functions, among
them various forest protection functions, and social functions. Amongst them,
there are also forest biodiversity conservation and climate change mitigation
functions. The traditional term “forest functions” is analogous to the “forest
ecosystem services”11. Respecting its own tradition, the forestry sector is
preserving the term "function”.
The forest management in North Macedonia is, however, not yet based on
maintenance of all the forest functions and is thus not multifunctional. Although
the forest functions provide their favourable services to society, the society is
paying nothing for these ecosystem services. However, they need various
maintenance and enhancement measures. Only the forest owners and the users
pay for the services to some extent, indirectly through their (obligatory) financial
contributions to the extended forest reproduction programme. The State Budget
does not allocate any additional funds for the necessary measures to enhance
the forest functions or ecosystem services.
Objectives:
1. To increase the capacity of forests for the provision of forest functions or
ecosystem services to satisfy the people’s needs.
2. To ensure certain public revenues for maintenance of forest functions or
ecosystem services.
11
The term arises from the environmental sector and became, two decades ago, a part of the UN
Millennium Ecosystem Assessment terminology. According to Common International
Classification of Ecosystem Services (CICES), the ecosystem services are divided into (a)
provisioning, (b) regulating and maintaining, and (c) cultural ones. The forestry classification is
compatible with it, providing that the ecological functions relate to the category (b), while the social
ones to the category (c).

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Directions:
1. Carry out mapping of forest functions or ecosystem services in the framework
of renewal of forest management plans;
2. Assess the (potential and actual) monetary value of other forest functions or
ecosystem services;
3. Introduce payments for the provision of forest functions or ecosystem
services based on expenditures needed for the maintenance of these
functions or services, taking into account some existing regional experiences;
4. Allocate the institutional responsibility over administration and use of the
funds collected from payments for maintenance of forest functions or
ecosystem services to the Forest Agency;
5. Introduce measures for the maintenance of forest functions or ecosystem
services, mainly through sustainable forest management.
5.5. Products from wood
The wood industry is not part of the forestry sector. As felled trees contain up to
85% of fuelwood in North Macedonia, the processing of technical wood is
underdeveloped. According to the data of the State Statistical Office, in 2015
there were a total of 440 SMEs registered to process wood and wood products
(excluding furniture). This sub-sector employed only around 2100 persons in
2014. Its share amounted to only 0.13% of GDP (in 2017). In total, the
contribution of the wood industry sector amounted to 0.57% of GDP.
Objectives:
1. To contribute to the sound use of wood and wood products from sustainably
managed forests and to the establishment of economically viable local wood
value chains in line with the wood supply and demand;
2. To ensure a favourable market environment for effective and competitive
wood processing.
Directions:
1. Secure continuous and stable raw wood supply by entities managing the
state-owned forests, based on public tenders and/or auctions and marked-
based contracts for selling of wood, including long-term contracts, to support
the prospective wood value chains;
2. Accelerate introduction of the international standards in the sector and
promote conditions for introduction of the forest and wood products
certification12, as well as conditions for the fulfilment of the EUTR
requirements (for the exporters to EU);
3. Strengthen cross-sectorial communication, cooperation, association (e.g.,
through wood clusters) and technological information exchange.
12
Forest certification is a market-based approach to recognize responsible or sustainable forest
management by labelling forests and the wood products from those forests as being certified.

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6. ROLE OF THE STATE IN THE DEVELOPMENT OF THE FORESTRY
SECTOR
6.1. Improvement of institutional setup and functioning of the state
forestry sector institutions/organisations and their role and
capacities
The Government of the Republic of North Macedonia administers, controls, and
supervises the forests and forest land according to the Law on Forests through
the Ministry of Agriculture, Forestry and Water Economy (MAFWE) and its
Forestry sector. The Forestry sector in a wider context is set up by (1) Forestry
and Hunting Sector (FHS), (2) the Forestry Police Sector13 (FPS) and (3) the
State Forestry and Hunting Inspectorate (SFHI) as an independent body. The
forestry sector as a whole is represented by the State Advisor for Forestry serving
for transmission of the forestry sector’s proposals and needs to the Minister of
Agriculture, Forestry and Water Economy and vice versa.
The FHS (with its 14 employees) is the highest forestry and hunting
administration authority. Apart from the administration in a narrower sense, the
FHS prepares forestry and hunting policies, programmes, and regulations. Due
to its low organizational status, limited human and technical capacity and a large
extent of administrative matters, it could not exercise its functions effectively.
Functionally, it could not represent and/or manage the whole forestry sector,
could not perform an administrational level of control of the management of state
forests, nor could have significant influence, on behalf of the state as forest
owner, on the entities managing the state forests, in particular, the Public
Enterprise “National Forests”.
The FPS (with around 400 employees, among them 85% policeman) performs
police control of forests and particularly of the transport of wood in a control-patrol
manner. The FPS has a central organizational unit and 30 regional police stations
throughout the North Macedonia. The forest police is a North Macedonian
specialty14. It performs its function independently from other forestry services.
The cooperation with the Forest Guarding Services (of the entities managing the
state forests) and the Forestry Inspection Service is weak. The FPS is recently
better equipped but it lacks its forestry-professional capacities. Many forest police
reports on violations thus fall to the courts. It lacks also contemporary technology
for performance of its function. Predominantly small cases of illegal harvesting
and transport of wood are the matter of the forest police treatment. Large, criminal
cases, however, mostly remain untreated. Efficiency of the forest police in
combating illegal harvesting and other illegal forestry activities is thus relatively
low.
13
This is actually a Service, not a Sector.
14 No other European country has established forest police now. Until 2016, Italia had the forest
police within the State Forest and Police Service, while after that the physical forest protection is
carried out by carabinieri – a military belonging to a special armed force, entrusted with the
protection of public order and judicial police, protection of forests and natural resources, public
security and military police functions in peacetime.

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The SIFHI (with 15 forestry and 2 hunting inspectors) performs the forestry and
hunting supervision based on a special Law on Forestry and Hunting Inspection.
The SFHI functions through its sectors of forestry and hunting and five regional
units. The forestry-professional capacity of the inspectors is weak. The SFHI
lacks the equipment, contemporary technology and budget for its efficient
functioning. Consequently, the SFHI is quite powerless in performing its function.
The Public Enterprise “National Forests” (PENF) manages a big majority of the
state-owned forests based on the Law on forests. The management right includes
the forests with production and protection functions. Among the production
forests, there are 31% of high-stemmed forests, while even 69 % are low-
stemmed forests, i.e., the forests with low growing stock, low yield, and low wood
quality (mainly for fuelwood). The PENF is a centralized enterprise, horizontally
organized in 9 professional and business sectors. Vertically, it has a two-level of
organization with headquarters and 30 sub-regional branch units. The branch
units are relatively independent in their functioning in practice. They employ
managerial, forestry-technical, administrative, accounting, and logistical support
services for carrying out the operational forest management. Overlapping in the
administrative and accounting functions with the headquarters is present. The
branch units also perform a smaller part of the forest operations (37% of felling,
23% of skidding and 20% of transport of wood in 2019) in their arrangement. Due
to deficient and outdated equipment, as well as due to low density and low quality
of forest roads, the efficiency in forest utilization is very low. PENF has currently
1650 standing employees related to forest management or 3.8 per 1000 m3 of
harvesting. According to analysis under the EU assistance project “Review of
forestry sector in North Macedonia and preparation of 2019 IPA project for
forestry” (2020), the comparable number of employees (in 2018) was 2.3-times
higher than in Croatian Forests d.o.o. and 1.6-times higher than in the Bulgarian
South-Western State Forest Enterprise. This indicates that PENF is severely over
employed for the realized amount of harvesting. Economic results in wood
production, as a core activity of PENF, are significantly negative for several years
and currently in particular. The enterprise has thus produced a large accumulated
loss. Despite these facts, the PENF has not been rationalized and transformed
yet into an efficient business entity, as anticipated by the Strategy, using the best
solutions from European countries. Thus, it remains over-employed, centralized,
regulated by the State (regarding the timber pricing policy), not market-operated,
too politically influenced, and inefficient economically and in its production. Such
functioning is only possible based on significant injections from the State budget
to its functioning. Consequently, corresponding rationalization, reorganization
and transformation of the PENF is urgent. Otherwise, liquidation of the enterprise
remains the last solution.
Objective:
To ensure that the organizational set-up of the forestry sector
institutions/organizations is changed and improved - based on European
experiences and national specifics and needs - and their capacity strengthened
for efficient forest and forestry administration and sustainable management of
forest resources.

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6.1.1. Separation of the function of administration of forests on behalf
of the State from the commercial forest management function
Directions for Public Enterprise National Forests:
1. Separate correspondingly the current function of administration for forests on
behalf of the State from its economic/commercial function – as a precondition
for the reorganization of the enterprise to a commercial company. The
separation should include particularly the following activities:
- the forest administrative procedures and tasks on behalf of the State in
case of the state and the private forests;
- the forest management planning, and
- the professionally-technical services for private forest owners.
2. Carry out the commercialization of the state forest management in a
sustainable way – through the transformation of the enterprise to a
commercially efficient and ecologically and socially responsible company for
the management of state-owned forests.
3. Adapt the state forest management function, as well as the forest guarding
function to the commercial requirements of the future company.
6.1.2. Establishing the Forest Agency
Directions:
1. The Forest Agency should be established as an independent public institution
with the status of a legal person under administrational supervision of the
MAFWE in accordance with the Forest Law and based on a special Law - the
Forest Agency Law.
2. Corresponding forestry staff of the PENF that was engaged in the separated
activities of the state administration of forests, forest management planning
and the service for private forests, including related means, should be taken
over, if available, and transferred to the Forest Agency, based on the
corresponding programme15.
3. Corresponding staff and related means of the Forest Police of the MAFWE
should also be transferred to, and taken over by the Forest Agency, based on
the corresponding programme16. The Forest Agency should thus also execute
the forest police function in accordance with the Forest Agency Law.
4. Function of the public administration and service for forests of the Forest
Agency should include the following duties, tasks, and services:
15
Preliminary, up to 120 of forestry professionals. Final number should be determined by the
programme, based on agreed organisational and functional structure of the agency and norms
for its technical staff.
16 Currently, there is up to 400, of that up to 330 policeman employed in the Forest Police Sector.
The transferred number should depend on agreed standards and norms.

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• performing administrative procedures and tasks related to all forests,
other forest land and other land, except for urban areas;
• granting the rights for collecting and/or processing of non-wood forest
products on behalf of the Government in state and private forests,
except the forests within the national parks;
• operational controlling of the fulfilment of the State Forest Company’s
management agreements on behalf of the State as forest owner;
• performing national forest inventory and all kinds of systematic
monitoring tasks in all forests;
• ensuring forest development planning, including the elaboration of the
national forest development plan;
• provisioning of the forest management planning services to private forest
owners and users;
• establishing and maintaining the integrated forest information system,
including its wood tracing and other system components;
• performing of professionally-technical tasks related to planning and
programming of afforestation, silviculture, forest protection, forest
conservation, forest utilisation, forest infrastructure and maintenance of
forest functions;
• provisioning of professionally-technical services to private forest owners
and owners of other land in private ownership;
• ensuring forestry extension for forest owners, users and other
stakeholders;
• performing of forest management range-manner control of private forests
and the state-owned forest not under management by the entities
managing the state forests;
• management of a special agency’s account for the collection of forestry
financing sources;
• transferring of state financial support to private forest owners and users
from the special account and State budget sources according to the
procedures prescribed by Law;
• other tasks defined by Law.
5. The Forest Agency should also execute a part of the wildlife service function,
including the provision of hunting management planning services to hunting
ground managers, coordination of wildlife monitoring and management of
wildlife information system in accordance with the Hunting Law, which should
be adapted accordingly.
6. The Forest Agency should operate on central and local levels using
particularly the existent facilities of the Forest Police stations.
6.1.3. Upgrading the Forestry and Hunting Sector of MAFWE to the
Directorate
Directions:
1. Due to the increased ecological, economic, and social importance of forests
and their ecosystem services and the consequent need for increasing the

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importance of the forest policy and enforcement of its implementation, as well
as to empower the role of the State in circumstances of commercialized
forestry, the current Forestry and Hunting Sector within the MAFWE should
be functionally adapted and upgraded to a Directorate, based on experiences
of several EU Member States.
2. The Directorate should be responsible for formulation of the forestry policies,
strategies, programmes and legislation, for monitoring and reporting on their
implementation, for the highest-level of forestry administrative tasks, including
administrative supervision of sub-ordinated State bodies, institutions and
Services, as well as for the forestry sector management including control of
the implementation of the State forest management agreements on behalf of
the State as forest owner, in accordance with Law.
6.1.4. Transformation of the existent Public Enterprise “National
Forests” to the State Forest Company
Directions:
1. The PENF should be transformed into a commercial company in 100% state
ownership for the management of the state-owned forests i.e., the State
Forest Company (SFC) according to a special Law - the SFC Law.
2. The SFC should perform the following main activities:
• professionally-technical activities as part of Public Service for the State
Forests under its management right;
• commercial management of state-owned forests for production, protection
and special purposes, including forests in the protected areas, except
forests which are under the management by other entities;
• guarding of State forests in the framework of forest guarding ranges under
its management and protecting the property of the company;
• production and selling of seed and planting material;
• management of hunting grounds in accordance with Law;
• processing and selling of non-wood forest products;
• management of forest-dominated protected areas in accordance with
Law.
3. The venture form and vertical structure of SFC should be defined by the SFC
Law, based on the previous feasibility study and a strategic plan.
4. A corresponding social programme for resolving, including re-deployment and
re-training of a determined number of redundant PENF employees should be
adopted and corresponding financial means of the PENF and the State
Budget to be ensured for its implementation.

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6.1.5. Establishing the new Forestry Institute
Directions:
1. A new Forestry institute for forest and forestry-related research &
development work should be established as a public institution of the national
interest,
2. The development work of the Institute should support the implementation of
activities of the Forest Agency and the body of state administration competent
for forestry, such as inventorying and monitoring of forest resources,
identification, and mapping of forest vegetation types and forest functions,
methodologies for forest planning and monitoring, as well as the development
of forest management systems and norms for forestry activities and
operations.
3. The forestry developmental work of the Institute should be financed from the
special account of the Forest Agency based on corresponding programmes
to be adopted by the Minister responsible for forestry.
4. The research work and basic infrastructure of the Forestry Institute should be
financed from the Budget of the Republic of North Macedonia in accordance
with Law.
6.1.6. Strengthening the capacities of the forestry
institutions/organizations
Directions:
1. Provide (international) expert support to the preparation of the plan for
establishing and functioning of the new Forest agency;
2. Establish and strengthen the human and technical capacities of the new
Forest Agency, including the Forest Police;
3. Provide the (international) expert support to PENF for the preparation of the
strategic plan for its rationalization and reorganization into the SFC;
4. Provide technical support for efficient management and use of the integrated
forest information system (to be managed by the Forest Agency and used by
the entities managing state forests and the wood traders) and its modules, in
particular, the wood tracing module;
5. Strengthen the human and technical capacities of the State Inspectorate for
Forestry and Hunting.
6. Support to establishment of associations of foresters.
6.2. Improvement of the role and capacities of the nature protection
sector institutions related to forest ecosystem management within
the protected areas
The Law on Forests regulates the protection, conservation, restoration, and
management of forests also within national parks (NPs) and other protected
areas (PAs). Similarly, the Forestry Strategy determines certain objectives and
directions also for forests within PAs. According to the Law on organization and
work of the State administration bodies, the Ministry of Environment and Physical
Planning (MEPP) performs the activities related to the protection of biodiversity,
NPs and other PAs. These activities are directed by the Sector for Nature

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Protection Administration, and implemented by the National Parks Public
Institutions (NPPI) and the entities for management of PAs, according to the Law
on Nature Protection. A system of integrated management of PAs, which includes
also the forest ecosystem management, i.e., protection, conservation and
sustainable use of forest functions or ecosystem services, is currently in use,
based on the Law on Nature Protection. However, implementation of this system
in practice brings certain dualism and consequent conflicts between forestry and
nature conservation sectors, particularly related to competencies in forest
management planning. This needs to be resolved accordingly, based on common
principles of simultaneous conservation and sustainable use of the forests (within
the zone of PAs where sustainable use is allowed).
In terms of human capacity, the Sector for Nature Protection critically lacks
forestry professionals, and results in that, it alone has no sufficient capacity for
the creation and implementation of a corresponding concept of forest ecosystem
management within the PAs. On the other side, also the PA’s management
entities lack professional and technical capacities for the implementation of such
a concept.
There are three old NPPIs: Mavrovo, Pelister and Galichica. Currently, a new NP
Shara Mountain has been proclaimed by a special Law (2021) and is managed
entrusted to a new NPPI of the same name. As the management of forests within
the NP is concerned, it was legally taken away from the existing PENF’s
management right, while the PENF’s branch unit Gostivar remained without
around 50% of its forest area and income from that title, but with all former
employees. The Law on Shara NP, as its proclamation act, did not resolve this
problem. Currently, also two new, larger PAs (Maleshevo and Osogovo) have
been proclaimed, based on the Law on Nature Protection. The management of
the PAs was, however, allocated to the PENF, which also included the
management of forests. In this way, the state forest management right was
granted back to the PENF. The practice, based on the deprivation of the right of
the PENF to manage the forests within a new PA, instead of preserving the right,
although there is a legal possibility to return it to PENF through management of
the PA, is not acceptable in the context of the biodiversity integration and
corresponding cooperation among the state institutions/organizations of one and
another sector.
Objectives:
1. To ensure sustainable forest administration and management within the PAs
based on sustainable development principles and best European practices.
2. To ensure that the management of the state forests within future PAs is
retained under the management of the PENF and/or future SFC - under
obligation for PENF/SFC to respect the prescribed protection regimes for PAs.
Directions:
1. Harmonize the role of the forestry and the nature protection
institutions/organizations related to forests within the PAs based on principles
of simultaneous conservation and sustainable use;

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2. Increase the forestry-professional capacities (in terms of quantity and quality)
of the Sector for nature protection of MEPP, as well as the forestry-
professional and technical capacities of the entities managing the PAs in
accordance with forestry standards, taking into account that this standard for
forests in PAs should be more restrictive than for forests outside of PAs;
3. Include the provision for implementation of the above objective No. 2 into the
new Forest Law.
6.3. Management of the state forests
Objective:
Тo improve the effectiveness of the management with State forests and enable
its functioning under free market conditions.
Directions:
1. The future right of the SFC for the management of State forests should include
production forests, protection forests and forests of special purpose, including
forests in protected areas, except for the forests which are already under the
management by other entities;
2. A standing forest range management system combining the professionally-
technical and forest guarding tasks should be (re)introduced to State forests.
3. Market barriers in the management of state-owned forests should be removed
and corresponding market mechanisms introduced: in particular, replacement
of the maximum price list of wood assortments with a minimum price list;
4. Current monopolistic position of the PENF - in terms of trade (selling) in forest
wood assortments - should be avoided in the case of the new SFC - in a way
that it would not have more than 50% share in the wood trade value in the
North Macedonia in accordance with the EU Competition law.
6.4. Combating illegal forestry activities
Although the existent provisions of the Law on Forests on protection against
illegal harvesting lead towards meeting a majority of requirements of the EUTR,
illegal harvesting remains as the most serious and long-term problem,
jeopardizing sustainable forest management as well as forest value in a broader
perspective. Apart from this, the illegal harvesting and sale of timber create
economic and fiscal losses to the forestry sector and the State Budget. According
to the study on forestry sector development and institutions under the EU
assistance project “Review of forestry sector in North Macedonia and preparation
of 2019 IPA project for forestry” (2020), there is a large amount of non-registered
illegal harvesting. The figures for illegal harvesting of fuelwood range from 55%
to 106% of its legally harvested/registered volume. Apart from the economic and
fiscal losses, illegal harvesting is causing degradation or destruction of forest
stands, disturbance in natural regeneration and endangers forest functions or
ecosystem services. The ecological consequences of illegal harvesting are
reflected also in the erosion of forest -and other land increased risk of forest fires,
forest diseases and pest calamities, disturbances to the water regime etc.

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Objectives:
1. To reduce the extent of illegal harvesting to the level of incidental occurrence,
by creating and/or adapting corresponding legal and institutional mechanisms, by
strengthening the forest law enforcement, governance and control and by
adapting and enhancing the implementation of the sanctions.
2. To raise public awareness of the importance of the protection of forests against
all violations.
Directions:
1. Harmonize additionally the forestry legislation with the appropriate
regulations of the EU, particularly EUTR;
2. Introduce a forest management range-based system of forest guarding of
state-owned forests by the enterprises managing the state-owned forest, as
well as the forest management range-based monitoring of private forests by
the Forest Agency;
3. Apply contemporary technologies and tools, by the Forest Agency, for regular
monitoring and early detection of illegal harvesting;
4. Ensure traceability of wood masses by the electronic system from the forests,
including the phase of marking of trees for felling, to the users of the forest
wood products;
5. Introduce and apply the electronic tracing of wood masses by all the entities
managing the state-owned forests and other entities placing forest wood
products on the market, and the Forest Agency;
6. Adopt and implement the action plan for combating illegal activities;
7. Strengthen sectorial and cross-sectorial cooperation, i.e., between forest
guarding, forest police and forestry inspection services on one side and
general police, prosecution and judiciary Services on the other side, to
combat illegal forestry activities more efficiently;
8. Adapt the level of sanctions related to illegal forest activities and increase the
efficiency in their implementation;
9. Ensure transparency in the state forest management and the management of
the state enterprises, enable participation of stakeholders in planning,
decision making, implementation and monitoring of forest activities.
6.5. Forest inventory, planning, monitoring and information system
Objectives:
1. To ensure qualitative and reliable data and information on all forests,
regarding their ownership and purpose, regular monitoring of the forest
condition and the forest management practices, and digital tracing of all wood
masses from the forests (harvesting sites) to the final users.
2. To ensure upgrading and integration of all relevant components of the forest
information system, establish the integrated forest information system (IFIS)
and its centralized management by the Forestry Agency, based on inputs
provided by the users of the system.

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3. To ensure that the State and private forestry sector, the non-governmental
and international institutions and the interested public are timely updated with
accurate information on forests, forest management and forest products.
4. To contribute to the efficient exchange of information within the forestry sector
and across the forest-related sectors to facilitate cooperation and raise public
awareness of the value and importance of forests and forestry.
Directions:
1. Conduct a National Forest Inventory based on 5-year cycles;
2. Conduct ICP17 monitoring of the forest health condition at level one (according
to the methodology of ICP Forests) and regular annual monitoring (by entities
managing the state forests) of forest health and vitality;
3. Introduce and carry out regular assessment of the sustainability of forest
management at the forest management unit level, based on national criteria
and indicators for SFM;
4. Improve the quality of the methodology for GIS-based inventory of the forest
stands that includes also a category of the middle-stemmed forests, as well
as the methodology for elaboration of the forest management plans and
methodology for mapping of forest functions or ecosystem services, based on
principles of multifunctionality;
5. Elaborate forest management planning guidelines related to the optimum
functional condition of forest stands by forest management classes;
6. Transfer the Forest Management Planning Service (FMPS) from the PENF to
the Forest Agency;
7. Improve the technical quality (composition) and efficiency of the supervisory
commission for the adoption of the special forest management plans and
special hunting management plans;
8. Provide technical and technological support to the Forest Agency and the
users of the IFIS for its effective management and use.
9. Strengthen the professional and technical capacities for forestry and hunting
planning and monitoring;
10.Support the development, establishing and functioning of the IFIS at the
central and the user’s levels.
6.6. Public financing of forestry activities and measures
The forest management activities are mainly financed through the sale of timber.
The incomes from these sales are around 90% of the total annual income of the
forestry enterprises. The forestry sector does not get any additional funding from
the State budget, which would be independent from the collected budget sources
from forestry, as a support to the sustainable forest management or enhancement
of forest functions. In that sense, the forestry sector lacks support from the State
budget and cannot be consolidated on its financial resources.
17
ICP Forests – International Cooperative Programme on Forests under Convention on Long-
Range Trans boundary Air Pollution (1979).

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Objective:
To secure adequate funding for the activities and measures for forest
reproduction and maintenance of forest functions or ecosystem services
including forest biodiversity conservation and climate change mitigation and other
activities and measures that contribute to the protection, conservation and closer-
to-nature forest development.
Directions:
1. Continue with the existing, and introduce new mechanisms for (public)
financing of forest activities and measures, such as:
a. Allocations for simple forest reproduction (in the amount of 10% of the
market value of forest wood assortments on forest track roadside) - to be
transferred by the Forest Company in accordance with the special Law;
b. Continuation with the existent payment obligations for extended forest
reproduction – to be paid by entities managing the state-owned forests
and the private forest owners (in the amount of 3% of the market value of
wood production on forest truck roadside);
c. Continuation with the existent compensation payment obligations for
clearing and permanent conversion, the introduction of payments for
easement of the state forest land, as well as payments for damage caused
to forest land due to detailed geological research and utilization (mining)
of minerals - to be paid by the investors or concession holders;
d. Continuation with the existent payment obligation for damaging the state
forests due to unlawful activities - to be paid by the causers;
e. Introduction of financial compensations for provision of professionally-
technical services to the forest owners (in the amount of 10% of standing
timber value) - to be paid by the owners after the services are provided;
f. Introduction of financial compensations for provision of forest
management planning services i.e. elaboration of the forest management
and the forest conservation and management plans - to be paid by the
entities for managing the state-owned forests and the bigger forest owners
(in the amount of 1 - 15 EUR/ha/10 years);
g. Introduction of payments for the right to use of non-wood forest products
- to be paid by the collectors and/or processors of the products based on
the use contracts (in the extent of 10% of the market value of the
products);
h. Introduction of payments for maintenance of forest functions or ecosystem
services in the extent of 0.05% of gross annual income - to be paid by all
legal entities that perform their commercial activities on the territory of the
Republic of North Macedonia;
i. Introduction of financing of forest activities and measures from other
sources, particularly of EU and international donors.
j. Introduction of financing of forest and forestry-related measures from the
national rural development programmes;
k. Introduction of financing of certain forest and forest-related measures
from the national environmental programmes;
l. Introduction of the State budget financing of forest activities and measures
determined by the new Forest Law.

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2. Opening of a special account of the Forest Agency to which all current and
the new public financial sources related to forests and forestry under the
above points (a) to (i) should be channeled.
3. The use of funds from the special account of the Forest Agency should be
enabled for the following purposes:
a. Simple forest reproduction measures for which the funds should be
transferred by the Forest Agency and used by the Forest Company;
b. Extended forest reproduction measures for which the funds should be
transferred by the Forest Agency and used by the entities managing the
state-owned forests and the private forest owners;
c. Forest-related environmental measures, including biodiversity
conservation for which the funds should be transferred by the Forest
Agency and used by the entities managing the state forests, the private
forest owners and other interested stakeholders;
d. Measures for maintenance of other forest functions or ecosystem services
for which the funds should be transferred by the Forest Agency and used
by the entities managing the state-owned forests, the private forest
owners and other interested stakeholders;
e. Other forest measures and activities planned under the National Forestry
Programme supporting the implementation of the Forestry Strategy for
which the funds should be transferred by the Forest Agency to the eligible
users;
f. Professionally-technical services to private forest owners for which the
funds should be used by the Forest Agency itself;
g. Forest management planning services to the entities managing the state-
owned forests and the bigger private forest owners for which the funds
should be used by the Forest Agency itself;
h. Applied research and developmental work needed in support of the
activities of state forestry institutions;
i. Promotional activities, training and education for SFM.
The use of funds from the special account of the Forest Agency should be -
as a rule - proportional to the funding sources and forest ownership or
management categories, as applicable. The funds should be distributed
according to procedures prescribed by Law.
4. The forest measures which could be funded or co-funded from the special
account of the Forest Agency and/or other budget sources should satisfy
minimum sustainability criteria18 which should be defined by the new Forest
law.
18
The requirement on sustainability criteria is a standard requirement for EU-financed measures,
such as through IPARD programme. The EU Taxonomy Regulation (2020) brings such criteria.
These criteria shall be fully implemented after the accession to EU, while until the accession only
general objective of the Regulation should be respected (similarly to the EU Timber Regulation)
and included in the new Law on Forests. This means that some minimum sustainability criteria
should be respected in terms of assessment of the measures already before accession - when
financing of the measures comes into question.

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6.7. Forest land information and consolidation
Objectives:
1. To ensure the forest land use database is established and regularly updated
with information on forest land use change as part of the IFIS and a basis for
forest planning, administration, management and decision making.
2. To increase the share of consolidated forest land.
Directions:
1. Establish and regularly update the database on forests and other forest
land use according to the latest situation in the field, particularly due to
natural expansion of forests and other changes in the forest cover, based
on the existing cadaster (of AREC) and other databases (of LPIS, etc.).
2. Initiate and facilitate (by entities managing the state forests) the processes
for consolidation of State and private forest land where feasible.
6.8. Support to the management of private forests
Objective:
To create an efficient system of support to private forest owners, based on
experiences of some EU countries, to meet both the personal and the public
interests in the context of SFM.
Directions:
1. Establish the forestry advisory sector within the new Forestry Agency to
ensure, on a free-of-charge basis, the performance of good forestry practices
and the management of private forests in a sustainable way.
2. Support associating the forest owners for joint management of their forests to
improve the economic viability of small-scale forest holdings;
3. Provide financial support to private forest owners' organizations, based on
corresponding programmes, to strengthen the forest owners’ capacities for
implementation of sustainable forest management and use of public funds
(subsidies);
4. Provide financial support to private forest owners for activities concerning
afforestation, forest regeneration, forest protection, forest restoration,
rehabilitation of damaged forests, indirect conversion of law forests into high
forests and forest certification.
6.9. Public participation and awareness raising
Objectives:
1. To enable and promote the participation of stakeholders and the wider pubic
in the development of the forest management and forest conservation and
management planes.

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2. To ensure transparency in the management process in state forests and to
increase the visibility of the forestry sector in society.
3. To increase public awareness of the value and importance of forests and their
ecosystem services to society.
Measures:
1. Introduce public consultations (to be enabled by the Forest Agency) on the
adoption of the forest management and the forest conservation and
management plans for state forests, including the forests within protected
areas, as required by the corresponding EU Directive;
2. Carry out information campaigns on the main issues concerning the
management of the North Macedonian forests;
3. Develop and adopt standard procedures for involving stakeholders in different
consultative processes;
4. Introduce a system of regular dissemination of information on forest
management and development issues to the public.
6.10. Forestry education, specialization and qualification
Objective:
To enhance and support education and training related to sustainable and close-
to-nature management of forests including forest biodiversity conservation and
climate change mitigation, improvement of quality of the environment,
economically sound and socially responsible forest management, and
development of the forestry sector.
Directions:
1. Adapt the existing programs for high school and higher education in
correlation with the contemporary international programs and incorporate
modalities for education, specialization, and qualification in forestry. The
system should be flexible and adaptable to changing needs of the sector;
2. Create suitable conditions for education and training of the necessary number
of qualified employees with skills for contemporary forest management;
3. Strengthen the capacity of institutions concerned with education and
research, thus contributing to the future availability of a highly qualified
forestry staff and workforce;
4. Promote the multifunctional importance of forests in the education programs
of the young generations.
5. Adapt and/or extend the existing programmes of the forestry faculty education
with contemporary topics related, in particular, to multifunctional forestry,
forest biodiversity conservation, forest functions or ecosystem services, close-
to-nature forest management, climate change mitigation and adaptation,
multifunctional forest valuation, ecological economics and commercialisation
of forestry activities in a sustainable way.
6. Introduce forestry doctoral studies.

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6.11. Forestry research
Objective:
To strengthen human and technical capacities for forestry research.
Directions:
1. Encourage and support interdisciplinary research to promote knowledge-
based decisions;
2. Strengthen the existing research capacity in forestry, wood industry and
nature protection;
3. Support the applied research for the needs of the sector, private forest
owners, SMEs and local communities;
4. Strengthen international cooperation in research and capacity building in the
forestry and wood industry;
5. Encourage multi-disciplinary research on social and cultural aspects of
sustainable forest management within sustainable development;
6. Support research and analysis of current and potential extent of CO2
sequestration in forests and of carbon-storing in forest products;
7. Support research to better understand the impact of climate change on forests
and their capacity to mitigate the impact of extreme weather events;
8. Undertake research & development of appropriate forest management
techniques in conditions of global climate change.
6.12. Inter-sectorial and international cooperation
Objective:
To contribute to the establishment of appropriate cross-sectorial cooperation that
will enable the smooth flow of information and coordination at all levels while
securing the linkages with international institutions and associations in the field
of forestry.
Directions:
1. Ensure the country’s active participation in key bodies and structures of
international organisations and processes related to the forest sector;
2. Establish a dialogue with other interrelated sectors to seek joint solutions on
cross-sectoral issues important for forestry;
3. Develop and strengthen partnerships between governmental institutions, non-
governmental organizations and the private sector;
4. Establish and strengthen international cooperation in forestry and ensure
conditions for the implementation of international conventions and resolutions
on forests and related fields that the Republic of North Macedonia signed;
5. Attract external donor funding for forestry projects and measures, especially
in the fields of climate change, forest protection and biodiversity.

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7. FORESTRY AND THE ENVIRONMENT
7.1. Protective forest functions
Forests play a special role in overall environmental protection, as the largest
terrestrial ecosystem capable of significantly improving the general living
conditions. Forests also plays a key role in carbon sequestration from the
atmosphere, now particularly important in the context of international and EU
climate change mitigation and adaptation commitments. Therefore, forests
deserve appropriate ways of protection, conservation and use in line with
sustainable development principles. Protective forest functions are characterized
by the protection of soil and regulating the water regime and quality, by mitigation
or prevention of natural hazards - such as erosion, torrents, landslides, and
avalanches - to people and infrastructures, as well as by prevention of land
degradation and desertification.
Objective:
To maintain and enhance the protective forest functions through adaptive and
sustainable forest management concepts and corresponding forestry protection
measures to ensure and/or increase the contribution of forests to overall
environmental protection and carbon sequestration.
Directions:
1. Formulate specific criteria for mapping of protective forest functions, as part
of general criteria for forest functions mapping, as well as for designation of
protective forests and certain forest protection zones (by the Forest Agency);
2. Conduct the mapping under the above criteria and prepare forests for
designation (by the Forest Agency);
3. Formulate the guidelines for maintenance of the forests with emphasized
protection functions and protective forests;
4. Exclude the clearcut from forests with emphasized protection functions and in
protective forests.
5. Implement simple forestry measures for the protection of forest soils and
waters, through and along the sustainable forest management practices, as
well as measures for prevention of adverse impacts, all of them related to
forests with emphasized protection functions and the protective forests,
expected to be supported also by Rural Development Programme19 funds.
6. Carry out the rehabilitation of degraded and eroded protection forests and
other forest land as a priority, to the extent possible;
7. Maintain traditional, environmentally-friendly means of forest utilisation and
introduce contemporary environmentally-friendly forestry technologies and
forest utilization methods to minimize damages to the environment;
8. Introduce adapted SFM systems and appropriate sylvicultural measures that
increase carbon sequestration.
19 The Strategy for agriculture and rural development (2021-2027) includes certain activities /
measures related to protection of (forest) land.

Proposal for the updated Strategy for sustainable development of forestry in the Republic of North Macedonia (2006 - 2026)

Proposal for the updated Strategy for sustainable development of forestry in the Republic of North Macedonia (2006 - 2026)

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