Estonian climate tech startup Arbonics launched a new product, Impact Forestry. The solution offers landowners the opportunity to earn up to €15,000 per hectare by extending forest harvesting cycles or opting out of clear-cutting harvest-ready forests, contributing to carbon storage and removal, and enhancing biodiversity.

“Forests are one of the most effective solutions for carbon removal, yet landowners are not rewarded for this value they create,” says Kristjan Lepik, CEO of Arbonics. He adds that Arbonics’ Impact Forestry product provides a new revenue stream without imposing harsh restrictions on forest owners.

Impact Forestry offers landowners a 40-year contract, with first income starting as early as 3 to 5 years into the agreement. This solution allows landowners to maintain and protect their forests while generating significant financial returns through carbon credits in the voluntary carbon market.

Arbonics solution developed in close collaboration with the landowners

While the European Union’s goal of achieving climate neutrality by 2050 is clear, many countries still lack clear pathways for achieving their national targets. Forests play a critical role in this process, and without clear solutions, landowners may face increasing regulations and hastily designated protected areas, limiting their flexibility and freedom. The private market can offer solutions to ensure landowners are compensated for their role in managing forests.

Impact Forestry aims to increase forests’ carbon storage and sequestration capacity through longer harvesting cycles and conservation measures. The solution was created in collaboration with landowners, giving them an opportunity to profit from delaying or avoiding clear-cutting while their forests store carbon and support biodiversity.

GOOD TO KNOW
Arbonics connects landowners and credit buyers at scale to remove carbon and protect biodiversity through data-backed forestry solutions. The company’s data-driven tech identifies the best strategies to maximise carbon removal through various data layers and scientific models. This leads to efficient and natural CO2 removal and more forests for us all.

“Landowners have the knowledge and willingness to maintain their forests beyond legal harvesting age, but right now they have no motivation to do so. Impact Forestry provides a new option for forest management, contrasting the current situation filled with restrictions and economic risks,” comments Taavi Ehrpais, Chairman of the Board of Vardi Forest Association and client of Arbonics.

Arbonics measures and verifies the carbon benefit together with Verra, the leading carbon project registry, and ensures that landowners get financially rewarded for the benefits that their forests create.

Data-driven, scientific approach to the carbon market

The other side of Impact Forestry involves carbon credit buyers – large corporations seeking to invest in nature-based carbon credits in Europe.

“We are actively expanding and are in the final stages of discussions with several major potential credit buyers. Our biggest advantage is our systematic, scientific, and transparent approach, ensuring the highest quality of carbon credits while respecting landowners’ rights,” explains Kristjan Lepik.

To ensure the highest quality of carbon credits, Arbonics uses the globally recognized Verra Standard, the largest and most trusted standard in the carbon market. For accurate carbon storage and removal calculations, data from the Estonian Forest Registry and other local sources were used, making sure that local climate conditions are fully considered.

“We’ve created a solution that enables every Estonian landowner to easily discover the carbon income potential of their forest. By submitting their land id-s, we are able to check their eligibility and generate a carbon income report within minutes,” says Ingeborg Mägi, Head of Product for Impact Forestry.

“Landowners maintain complete control over their land while earning carbon revenue over the next 20 years. Although this approach may not be suitable for all forest types, we believe it presents a valuable opportunity for many,” adds Mägi with over 10 years of experience in the sustainability sector, including most recently at the World Wide Fund for Nature (WWF).

Initially, Impact Forestry is available in Estonia with plans to expand across Europe.

With their previous afforestation product, Arbonics is already active in four countries and has over 200 landowners involved. Last year, the company raised €5.5 million in funding. Taavet Hinrikus with Plural is the lead investor, alongside Nordic Ninja and Tilia Impact Ventures, a Central European impact fund.

Are you interested in trading with Estonia? Enterprise Estonia is providing sourcing service for foreign enterprises. Contact Estonian export advisors or use our free e-consulting service to start trade with Estonia.