By Published On: October 18, 2024

Sustainable Management of Alpine Forests in Austria and Italy

BIO-CAPITAL aims at transforming Alpine forest management through innovative financial tools. Project Use Case 1 focuses on promoting sustainable practices in forests, addressing biodiversity loss and climate resilience in these critical ecosystems.

What is Use Case 1 About?

Use Case 1 (UC1) of the BIO-CAPITAL project focuses on the sustainable management of Alpine forests in Austria and Italy. The primary objective of UC1 is to explore and implement financial mechanisms that promote biodiversity-friendly practices in Alpine forest management. This use case directly aligns with the EU Forest Strategy for 2030 and the EU Biodiversity Strategy for 2030, both of which emphasize the importance of preserving and restoring biodiversity in forest ecosystems.

Forests in the Alpine region face unique challenges due to their geophysical characteristics, such as limited accessibility and the harsh effects of climate change, making it difficult for forest managers to adopt sustainable practices. This use case aims to overcome these barriers by leveraging innovative financial tools like Biodiversity Certificates (BC) and Payments for Ecosystem Services (PES) to incentivize ecologically sustainable forest management (SFM) .

Where is this Use Case Being Implemented?

This use case is set within the Alpine region, spanning parts of Austria and Italy. Alpine forests are critical for biodiversity conservation but also face increasing pressures from climate change, unsustainable logging practices, and other environmental crises. The unique geographic challenges of the Alpine terrain, such as steep slopes and limited access, further complicate efforts to implement sustainable forest management practices .

When is the Project Timeline?

UC1 is part of the broader BIO-CAPITAL project, which started in June 2024 and will run for 42 months. The implementation of UC1 involves a step-by-step approach, beginning with stakeholder engagement and research on existing forest management practices. Throughout the project, multiple pilot interventions will be evaluated for their economic and ecological impact, with results expected to influence forest management policies across Europe .

Who is Involved in This Use Case?

UC1 is a collaborative effort between forest operators, conservation authorities, local communities, and private investors. Stakeholders in the forestry sector, including logging companies and wood industry associations, will be actively engaged in discussions on how to align current forest practices with sustainable management principles. Additionally, policymakers and financial institutions will contribute to the design of innovative financial solutions that can help bridge the gap between economic viability and ecological sustainability .

Why Is UC1 Important?

Alpine forests play a critical role in maintaining biodiversity, regulating water cycles, and mitigating the effects of climate change. However, current forest management practices often prioritize short-term economic gains over long-term ecological sustainability, leading to soil degradation, loss of biodiversity, and increased vulnerability to natural disturbances like pests and windthrows.

UC1 seeks to address these challenges by introducing financial mechanisms that reward forest owners for implementing biodiversity-friendly practices. By assigning a monetary value to the ecosystem services provided by forests, such as carbon sequestration and habitat preservation, UC1 aims to make sustainable forest management economically viable, and will also promote the use of Nature-based Solutions (NbS), such as deadwood management and mixed-species forests, which can enhance the resilience of forest ecosystems to environmental disturbances. These practices, combined with financial incentives like Biodiversity Certificates and PES schemes, will create a sustainable model for forest management that can be replicated across Europe.