The facts
Around 32 percent of Germany’s total area – some 11.4 million hectares – is forested. Around 90 billion trees grow in German forests (source: Third Federal Forest Inventory). Forests are sites of biodiversity, bind CO2 and have a mitigating influence on the greenhouse effect. In addition, forests filter and store drinking water, filter fine dust from the air and protect against erosion (“Nature Positive” approach).
The ecosystem needs support
It is undisputed that the forest ecosystem, with its multiple positive effects on air, water, soil, biodiversity and recreational function, represents a high social value and also has the potential to compensate for many climate change problems.
However, the forest itself is already severely impacted by climate change, pollutants, and extreme weather events. At the same time, forest owners today are often no longer financially able to adapt their forest areas to the influences of climate change, to convert them through reforestation, and thus to meet their own as well as society’s demands for an intact and healthy forest. To do this, they need strong partners who appreciate and promote the long-term value of the forest ecosystem (“Nature Positive” certification).
Challenges of forest owners at a glance
- Calamities / climate change / drought / storms
- Political and social pressure
- Image of large forest owners is viewed critically by themselves and stakeholders
- Lack of investment funds - forest as a "family bank" is becoming increasingly critical with regard to profitability - forests are not / hardly "bankable".
- No stakeholder has yet been willing to pay money for their demands for services through the forest. Except for income from the sale of the timber, the forest owner has not yet received payments for ecosystem services (water filtration, particulate matter mitigation, NWFP, etc.).
- Changes in the forest need a lot of time to become visible → High uncertainties regarding timber prices (fluctuations are sometimes already considerable on a monthly basis)
- Without a management plan with additional conversion measures, one does not yet get the opportunity to participate inCO2 compensation projects. This costs time and money and is not worthwhile for many people in view of the uncertainties about future timber price developments.
- Complicated models as well as a lack of forest science fundamentals have made many previousCO2 compensation projects unattractive for forest owners
- Government funding is often associated with too many federal/state entitlements
- Forest owners who already operate in a fully sustainable manner are excluded from mostcarbon offset projects on the grounds of lack of additionality.
