Business Models for Forest Carbon Sinks

Abstract

Nature-based solutions, such as forest carbon sinks, have been intensively studied and debated.  As part of the EU Green Deal, the aspiration of creating the first climate neutral continent by 2050 has been put forward with the land-based sector playing an important role.  While integrated assessment models, as used by the IPCC, highlight the role of permanent and temporary carbon removals in the pursuit of country-specific and world-wide GHG net zero emissions, they do not pay attention to the incentive structure to create carbon removals. I will fill the void by presenting a business model canvas for forest carbon removals from the perspective of EU forest owners.  To this effect, I will review numerical predictions of the remuneration of German forest carbon and for climate-resilient forests as well as forest nature conservation by BMEL, discuss the various standards presently used to “certify” forest carbon removals and their pitfalls (which led to a range of scandals in verification), and outline all parts of a comprehensive model canvas, incl. the value proposition, customer relationships, channels, partners, key activities and key resources needed.  This comprehensive approach situates the business model canvas in the regulatory context and the incentive structures for forest owners to actively contribute to the provision of forest carbon removals.