An expanding carbon credit market gives forest owners access to a new source of income
- EKEN offers forest owners a new source of income from their forests. Carbon credits complement the forest owners’ revenue from pulpwood and sawlogs.
- Through a partnership with Anew Climate EKEN has access to the largest carbon credit buyers on the international market. In the Swedish market, EKEN sells directly to customers such as Axfood AB.
- EKEN leases forest land through agreements lasting 15–35 years, where forest owners are compensated for extending the rotation periods on parts of their forest and allowing the trees to stand longer than the minimum legal final felling age. This leads to increased carbon storage, a higher proportion of timber, and enhanced biodiversity.
- EKEN’s carbon credits are certified under VM0045, the latest and most reliable international methodology. Unlike older methodologies that rely on a static baseline – comparing against historical and often outdated reference data – VM0045 uses a dynamic baseline. This means that the carbon storage in our projects is continuously compared with real, up-to-date data from the National Forest Inventory. The result is a much more accurate and transparent method that minimizes the risk of greenwashing and ensures that each credit represents real climate benefits.
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Compensation to forest owners consists of:
An annual lease payment throughout the duration of the agreement.
A share of future revenues from the verified carbon credits.
- Current and upcoming EU legislation is driving growing demand for carbon credits, leading to increasing compensation levels for forest owners. In other words, carbon credits are an attractive commercial complement to timber revenues.
- Revenue from carbon credits enables forest owners to let the forest stand instead of harvesting it. This creates an opportunity to transition to more sustainable forestry while also benefiting from the rapid technological development within the forest sector. AI and data on the growth and health of individual trees lay the foundation for a new paradigm in forestry.
