Enhancing EverGreen.

Carbon Value of Forests in Dasos Funds Exceeds EUR 1 billion

In the context of climate-smart-forestry, Dasos forests are managed to optimize stumpage value. Due to past and ongoing silviculture efforts (e.g. afforestation, regeneration, thinnings, age structure management, etc.), the biological growth of the forests regularly exceeds sustainable harvesting. Therefore, the forests represent a valuable carbon sink, accumulating CO2 into a growing and well-managed storage, i.e. standing forest stock. In addition, the harvested timber is designated to end-uses substituting vast amounts of fossils e.g. in construction, packaging and energy sectors.

Based on a recent inventory and analysis regarding annual carbon sequestration by forests in Dasos funds, including substitution effects of wood, the net present value for the total annual carbon service is estimated at over EUR 1 billion. The value has increased at least by some 25% over the past two years resulting both from additional carbon services produced by the forests (due to afforestation, expansion of the asset plus accelerating biological growth of the existing forests) as well as higher CO2 prices in the market. It should be noted that the derived carbon value is fully additional – and indeed represents an addend – to the Timber Production Value (included in NAV) of the forests when considering the total economic value of the forests.

For further information please contact Olli Haltia, olli.haltia@dasos.fi