New research: Certification can improve economic benefits of European forests

As demand for certified forest products increases alongside efforts to decarbonize the economy and mitigate climate change, understanding the economic benefits of forest certification is critical. 

A study published in Frontiers in Forests and Global Change explored this question. Researchers analyzed publicly available forest, economic, and environmental data across 28 European countries to assess how certification levels correlate with economic outcomes in the forestry sector. 

Key findings 

The research found that in Europe, forest certification increases revenue generation. While certification costs tend to rise with forest area, they often stabilize at larger scales, especially through mechanisms like group certification. The Czech Republic and the Netherlands show particularly high net economic gains from certification, suggesting effective economic exploration of forest resources. 

In practice, the researchers suggest that forest owners and managers align their strategies with broader economic trends to optimize their operations. 

Beyond economic benefits 

Beyond profit, certification reduces environmental, social, and reputational risks. Through engagement with auditors and stakeholders, forest managers can identify potential environmental and social issues, helping to manage reputational risk for the company. Evidence of this risk mitigation is particularly important for investors seeking to support positive social and environmental outcomes and responsible timber and non-timber forest product markets. 

The researchers also found evidence of other favorable social and economic outcomes: certification can connect forest managers to global, sustainability-driven markets and satisfy market demand for sustainable and responsible produced goods. 

Finally, certification aligns with key European Union strategies and policies such as the Regulation on Land Use, Land-Use Change and Forestry (LULUCF), which outlines how the land-use sector contributes to climate goals, and the Nature Restoration Law, which supports biodiversity conservation and ecosystem restoration. 

Methodology 

Researchers Sofia Corticeiro, Gonçalo Rodrigues Brás, Margarida Tomé, Ana Isabel Lillebø, Helena Vieira used 2020 as the reference year due to data availability. They drew on publicly accessible databases for information on total and certified forest areas and key economic indicators like intermediate consumption, consumption of fixed capital, gross value added, and outputs from forest-related activities. They also considered environmental metrics including biodiversity and habitat protection indicators, long-term forest management plans, and SDG 15 targets. The study included only forest management certification, not Chain of Custody certification, and used correlation analysis to identify trends and evaluate economic returns on certified forest management practices. 

Read the study here.