Climate Change Challenges to Forestry Are Increasing; New Forest Management Models Are Being Sought

With the growing challenges of climate change and increasing regulatory pressure to balance economic development with environmental objectives, European forest owners are actively seeking new management models that preserve forest ecosystems while ensuring sustainable incomes. In Sweden, where two-thirds of the country is covered by forests, a new collaboration between digital forestry platforms will enable up to 300,000 private forest owners to participate in the carbon market – opening up additional revenue opportunities and strengthening sustainable management practices.

“Forests play a crucial role in helping Europe meet its climate neutrality targets due to their ability to sequester and store carbon. However, economic pressures often push landowners toward a quicker and seemingly more straightforward source of income – the timber industry. Yet, the Latvian example demonstrates that adapting to new management practices that balance economic and environmental benefits is becoming increasingly important. Emerging industry challenges – such as unusually warm weather and poor forest road infrastructure – are making timber harvesting less predictable,” says Jānis Ruks, forestry expert at the climate technology company Arbonics.

He adds: “While governments and policymakers continue to evaluate support for carbon sequestration mechanisms, private-sector initiatives are already filling the gap. Since 2022, Arbonics has provided Latvian land and forest owners with an opportunity to participate in the voluntary carbon market. Now, through a partnership with the digital forestry marketplace Treebula, this opportunity is being extended to more forest owners in Sweden, promoting sustainable forest management approaches that allow owners to generate long-term revenues without selling or overharvesting their forests.

Preliminary expert estimates suggest that up to 2 million hectares of Swedish forests could be suitable for carbon sequestration projects. Shifting just 10% of this land from intensive logging to innovative, data-driven management could sequester and store an additional 100 million tonnes of carbon.

The number of companies willing to pay for carbon sequestration in forests and purchase high-value carbon credits from European woodlands is steadily growing. However, one of the main challenges in scaling up such solutions is ensuring the transparency, reliability, and traceability of carbon credit issuance. To address this, the two platforms will integrate AI and satellite-based forest analysis to provide the most accurate assessment of forests’ carbon sequestration potential and predict future changes in forest stands. For buyers, this approach enhances confidence in the quality of carbon credits, while for forest owners, it presents a financially viable strategy to manage and conserve forests for future generations.

Sweden’s shift toward sustainable and technology-driven forest management is part of a broader European trend that is also gaining momentum in Latvia. As more businesses and forest owners engage in the voluntary carbon market, Europe moves closer to achieving its climate goals, while also delivering long-term environmental and economic benefits at both regional and national levels.