The Xunta de Galicia announced a significant increase in funding for the forestry and timber industry, as well as a specific timber construction target for the public sector, on 20 October 2026. The 2027 budget for the Axencia Galega da Industria Forestal (Galician Forestry Industry Agency, XERA) is to increase by more than 35 per cent to around 33 million euros. At the same time, the regional government aims for timber to be used as a structurally significant material in the frameworks of 20 per cent of new public buildings belonging to the autonomous administration, over time.
The announcement was presented by Alfonso Rueda, President of the Xunta de Galicia. According to him, the budget increase is intended to support the entire value chain, from forest management and industrial processing to construction projects. The government links the 20 per cent target to efforts to connect housing projects and other public schemes with demand for regional timber production.
The Xunta did not specify any legal instruments, funding rules or implementation deadlines in its announcement. It refers to forthcoming budgetary and administrative procedures, in which funding schemes, tendering arrangements and skills programmes for workers are to be set out in more detail. The impact of the announced spending and targets therefore remains dependent for now on the 2027 budget and subsequent regulations.
As economic context, the regional government says that the forestry-based sector in Galicia is an “essential economic engine”. According to the government, the sector generates more than 2.5 billion euros a year and provides income for over 20,000 families. This context is intended to underpin the planned expansion of timber construction in the public sector, including in terms of shorter supply chains and climate targets that are to be addressed through the use of renewable raw materials.
Following the announcement, calls from officials and politicians for clear timetables and measurable interim targets are growing. The key question is whether the 20 per cent target for new public buildings will lead to specific tenders, and whether the increase in the XERA budget will actually address planning obstacles, supply-chain capacity constraints and skills needs. A sound assessment will therefore only be possible once the final 2027 budget and the planned implementation measures are available.
Editor: Daniel Mayer (Article created with AI assistance).