Project ÖSL-NRW

Management and financing of forest ecosystem services in North Rhine-Westphalia (ÖSL-NRW) 

Brief description of Project: 
 

© Professur FE

Initial situation
The German forestry sector is in a critical situation due to climate change and site drift. Storm events, periods of drought and, in particular, bark beetle calamities have caused massive damage between 2018 and 2021: over 500,000 hectares of damaged areas. 255 million cubic meters of damaged wood caused in monetary losses of 15 billion euros.

Regional focus
The western and central areas of Germany, especially North Rhine-Westphalia (NRW), are particularly affected. Within the south-eastern part of NRW the bark beetle calamity led to a complete loss of 136,000 hectares of spruce trees - a loss of up to 30 percent.

Financial consequences
Forestry companies are facing enormous economic challenges:

• Uncertain sale opportunities for damaged timber
• Loss of timber production on areas of disturbance 
• High costs for reforestation and forest adaptation
• Long-term decline in sales due to limited usage potential

Funding and its limitations
Although state funding programs exist (Bund: GAK and EAFRD with €1.5 billion by 2023; Länder: NRW with over €200 million), those are finally not sufficient. Funding consists usually of single payments and is limited to specific management practices, while long-term forest management, especially in younger age classes, within the silvicultural tending phases, are difficult to finance.

Social change
Society’s expectations of forests have expanded beyond timber production to include additional ecosystem services (ES) such as biodiversity, climate protection and recreation. This shift increases conflicts within society, politics, and forestry. The recent circumstances represent a turning point for forestry, as the diverse range of ES can often no longer be financed solely through timber revenues.

Conclusion
The dramatic damage to forests in recent years and changing social expectations require a fundamental reorientation in forest management and financing in order to preserve and further develop climate-resilient and multifunctional forest ecosystems.