InnoForESt · Project

New Revenue Streams and Payment Models for Forest Ecosystem Services

environmentPilotedTRL 6

Forests do a lot more than produce timber — they clean air, store carbon, protect against floods, and support biodiversity. But nobody pays forest owners for these invisible benefits, so there's no business incentive to maintain them. InnoForESt ran 6 real-world pilots across Europe to test new ways of turning these "free" forest benefits into actual income streams — think subscription models, certificates, or public-private deals. The result is a practical toolbox of business models and governance approaches that forest owners and regional authorities can use to get paid for keeping forests healthy.

By the numbers

Real-world pilot regions tested across Europe

Consortium partners involved

European countries covered

Project deliverables produced

The business problem

What needed solving

Forest owners across Europe are stuck with timber as their only income source, while the valuable services their forests provide — carbon storage, flood prevention, clean water, biodiversity — generate zero revenue. Municipalities and businesses benefit from these services for free, but there is no established mechanism to pay for them. This means forests are undervalued, underfunded, and increasingly at risk from climate change pressures.

The solution

What was built

The project produced governance prototypes for ecosystem service payments tested across 6 pilot regions, a knowledge exchange toolbox with digital and face-to-face cooperation tools, CTA workshop methodology and findings reports from all case study regions, and a European-level roadmap for scaling forest ecosystem service payment bundles. A total of 18 deliverables were produced.

Audience

Who needs this

Forest owner cooperatives and private forest managers seeking income diversificationEnvironmental consultancies structuring carbon offset and ecosystem service dealsRegional development agencies designing nature-based climate adaptation programsTourism operators in forested regions who benefit from maintained landscapesWater utilities dependent on forested catchments for water quality

Business applications

Who can put this to work

Forestry & Land Management

any

Target: Forest owners, timber companies, and land management cooperatives

If you are a forest owner or cooperative struggling with declining timber prices and looking for diversified income — this project developed and piloted 6 different business models for monetizing ecosystem services like carbon storage, water purification, and biodiversity. The tested governance prototypes show how to structure payments from municipalities, tourism operators, and carbon markets to create reliable alternative revenue.

Environmental Consulting & Carbon Markets

SME

Target: Environmental consulting firms and carbon credit intermediaries

If you are a consultancy helping clients meet sustainability targets or trade carbon credits — this project created a tested toolbox of coordination approaches for ecosystem service payments across 9 European countries. The 6 pilot regions provide replicable templates for structuring deals between forest managers and buyers of ecosystem services like carbon sequestration and flood protection.

Municipal & Regional Government

enterprise

Target: Regional development agencies and municipal planning authorities

If you are a regional authority responsible for land use planning and climate adaptation — this project demonstrated governance innovations that align forest management with public goals like flood prevention and recreation. The CTA workshop methodology and digital innovation platforms tested across 6 pilot regions offer ready-to-adapt models for structuring public payments for forest services.

Frequently asked

Quick answers

What would it cost to implement these payment models in our region?

The project does not publish specific implementation costs. However, the 6 pilot regions each adapted the models to local conditions, suggesting the approach is designed to be scalable. Contact the coordination team at Eberswalde University for cost estimates based on your region's characteristics.

Can these models work at industrial scale across large forest areas?

The project was designed specifically for scale-up. It ran pilots across 9 countries (AT, BE, CZ, DE, FI, IT, NL, SE, SK) covering a variety of biophysical conditions and institutional settings. The final roadmap addresses European-level scaling of forest ecosystem service payment bundles.

Who owns the intellectual property — can we license the toolbox?

As an EU-funded Innovation Action, the results are generally available for broader use. The toolbox for knowledge exchange and governance prototypes were co-designed with practice partners. Contact the coordinator at Hochschule für nachhaltige Entwicklung Eberswalde for specific licensing or reuse terms.

Does this comply with EU forest and environmental regulations?

The project explicitly aimed to feed lessons into national and EU forest policy making. It was funded under the RUR-05-2017 topic focused on rural innovation. The governance models were designed to work within existing European regulatory settings across 9 different national contexts.

How long would it take to set up a payment mechanism in our area?

Based on available project data, the 6 pilots ran over approximately 3 years (2017-2020). However, the resulting toolbox and prototype documentation are designed to accelerate replication. The CTA workshop methodology provides a structured process for adapting models to new regions.

What digital tools were developed?

The project built digital and physical innovation platforms that function as hubs for exchange and learning. A knowledge exchange toolbox including new media and cooperation tools was co-designed with practice partners. Specific platform details are available in the 18 project deliverables.

Consortium

Who built it

The 17-partner consortium spans 9 European countries, giving broad geographic coverage but a notably low industry ratio at just 6% (1 industry partner, 2 SMEs). The heavy academic presence — 6 universities and 5 research organizations — means the outputs are well-validated scientifically but may need commercial translation. The 5 "other" partners likely include NGOs and public bodies, which is typical for governance-focused projects. For a business looking to adopt these models, the academic depth is an asset for credibility, but you would want to work with the practice partners who were involved in the 6 pilots for practical implementation guidance.

HOCHSCHULE FUR NACHHALTIGE ENTWICKLUNG EBERSWALDECoordinator · DE
LUNDS UNIVERSITETparticipant · SE
SUOMEN YMPARISTOKESKUSparticipant · FI
SUOMEN METSAKESKUS-FINLANDS SKOGSCENTRALparticipant · FI
UNIVERSEUM ABparticipant · SE
UNIVERSITEIT TWENTEparticipant · NL
FORSTLICHE VERSUCHS- UND FORSCHUNGSANSTALT BADEN-WUERTTEMBERGparticipant · DE
EUROPEAN LANDOWNERS ORGANIZATIONparticipant · BE
UNIVERSITA DEGLI STUDI DI TRENTOparticipant · IT
UNIVERSITAET KLAGENFURTparticipant · AT
UNIVERSITAET INNSBRUCKparticipant · AT
PROVINCIA AUTONOMA DI TRENTOparticipant · IT
LEIBNIZ-ZENTRUM FUER AGRARLANDSCHAFTSFORSCHUNG (ZALF) e.V.participant · DE

How to reach the team

Hochschule für nachhaltige Entwicklung Eberswalde (Germany) — use Google Scholar or ResearchGate to find the PI's contact, or reach out via the project website

Order a report on this consortium See HOCHSCHULE FUR NACHHALTIGE ENTWICKLUNG EBERSWALDE profile →

Next steps

Talk to the team behind this work.

Want to explore how forest ecosystem service payment models could create new revenue for your organization? SciTransfer can connect you with the InnoForESt team and help translate their piloted approaches to your specific region and business context.

Order a report on this topic More in Environment & Climate