A new report suggests that EU climate requirements could lead to the closure of a quarter of Sweden's sawmills.

As part of the EU's request, Sweden has committed to storing four million tons of carbon dioxide per year until 2030. This may result in reduced logging, affecting sawmills and papermills.

According to Gay Abrahamsson, CEO of Hobysågen, they hope to survive by specializing in sawing extra thick logs, a niche market.

However, concerns remain as fewer trees will be harvested to meet the carbon storage targets.