Forest EcoValue

Project focus and objectives

The Forest EcoValue project moves from some matters of fact:

• Ecosystem Services are the direct and indirect benefits that people receive from the ecosystem. With this respect, forests play a key role for climate change mitigation and resilience in the Alpine region, by offering multiple ecosystem services and environmental social benefits, such as Carbon sequestration, air pollution reduction, increase of biodiversity, resilience to natural risks and many others.

• Forests of the Alpine space are threatened by abandonment, climate change and territorial degradation that progressively lead to a pauperization of natural resources and to a decrease in the provision of forest ecosystem services.

• Forest maintenance costs are high and often cannot generate a sufficient economic income for the public and private owners: public funds and the revenues from the traditional wood value chains are no longer sufficient and the attraction of additional resources becomes an evident need.

The project developed sustainable business models based on circular, green and bio-based value chains, exploring opportunities in sectors such as energy, construction, food, chemistry and recreation. By bringing together public and private stakeholders and citizens, Forest EcoValue explored ways to recognise, value and generate economic benefits from Forest Ecosystem Services. The project developed approaches for economic valuation, sustainable business models, payment schemes and market-based mechanisms, while also examining the policy frameworks and forms of public-private cooperation needed to support their implementation. These approaches can help create new opportunities for green businesses, investment and employment, while contributing to the long-term sustainable management of Alpine forests. All the project deliverables and results are available here.

Although the project officially ended in April 2026, its knowledge and resources remain available online. These include the Alpine Winter School training modules, covering Forest Ecosystem Services from biophysical assessment to economic valuation, business model development, payment schemes, market approaches, policy frameworks and public-private cooperation. The resources provide practical knowledge for forest owners, public authorities, businesses, researchers and other organisations working on forests, ecosystem services and green finance.

Austrian Living Lab

In the Austrian Living Lab, together with partners from WoodCluster Styria, we tested a reverse auction approach designed to incentivise private forest owners to implement biodiversity- and climate-related forest management measures.

The Living Lab focused on two key Forest Ecosystem Services: 

• Biodiversity and habitat conservation: This ecosystem service is of crucial importance for the Living Lab in Styria, especially in view of the loss of biodiversity – one of the greatest challenges facing humanity. The health and resilience of our forests are closely linked to their biodiversity. With climate change bringing more extreme weather events and increased pest infestations, ensuring the resilience of our forests is becoming a crucial factor, not only for the wood processing industry, but also for local communities. Furthermore, with the recent passing of the EU Nature Restoration Act, there is a growing awareness and demand from the public to conserve biodiversity, further increasing the importance of habitat conservation initiatives in the region.
   
• Carbon stability and sequestration: Improving the provision of this ecosystem service is of great importance in the context of climate change. The importance of carbon sequestration and storage cannot be overstated, especially considering the need to reduce greenhouse gas emissions globally. Unfortunately, common forest management practices such as clear-cutting and monocultures disrupt the delicate carbon balance of forests. By prioritizing carbon stability, the region is helping to mitigate climate change while promoting sustainable management practices for ecosystems.

Through economic valuation and innovative market-based financing mechanisms, the pilot explored how these regulating ecosystem services can be better recognised and supported, while creating incentives for forest owners to contribute to their provision.

A strong participatory process was at the heart of the Living Lab. More than 160 stakeholders from 15 target groups, including the Styrian Forest Owners’ Association (Waldverband Steiermark), financial institutions (RaiffeisenLandesbank Steiermark) and private forest owners were involved. 41 forest owners applied for the reverse auction, with the five best applications selected for funding. In total, 16 measures were supported: 15 focusing on biodiversity and habitat provision and one on carbon stabulity and sequestration. More than 140 private forest owners participated in workshops, public events, consultations and other Living Lab activities.

Forest EcoValue and the macro-regional strategy for the Alpine Area

The Forest EcoValue project supports the Macroregional Strategy for the Alpine area EUSALP and aims to collaborate with its Action Groups on key domains related to sustainable forest management and ecosystem services valuation. Also, the Forest EcoValue project supports the objectives of the Alpine Convention, particularly on mountain forestry, climate change adaptation and biodiversity protection.