Sustainable Forest Management — Contribution to the transition to a Circular Economy
Sector: Agriculture, forestry and fishing
Description
This activity covers the sustainable management of natural forests and plantation forests. Green investment eligibility focuses on ensuring forests are managed in a way that maintains their ecological integrity while producing timber and non-timber products.
Scope of Assets
The sustainable practices, associated eligible assets and projects are under the following scope:
- Forest planning and management (harvest and regeneration)
- Species selection and planting design
- Soil and water management
- Erosion and fire control
- Sustainable harvest and extraction practices
PSIC/ISIC code
A02 - Forestry and logging
Technical Screening Criteria
Substantial contribution criteria
The activity complies with either one of the following criteria:
- Has obtained certification at a national or international level that is aligned with internationally recognised standards
- Provides an IEMP which demonstrates ongoing adoption of all the applicable basic, intermediate and advanced practices, or as many as feasible.
Any or all of the following eligible practices can be adopted:
Basic practices
- Sustainable harvesting
- Selective harvesting involves selecting individual trees to harvest, leaving at least 50% of the original forest, including large trees that provide animal habitat.
- Involves rotating harvesting activities across different areas of a forest over time.
- This approach aims to minimise the impact of harvesting on non-timber forest product populations and promote sustainable resource management.
- Use appropriate species/provenance selection, planting density, and site preparation to reduce replanting needs and establishment losses.
- Apply controls to prevent soil degradation and sediment runoff (e.g., protection of riparian zones, basic erosion control on skid trails/roads, avoiding operations in high-risk conditions where relevant).
- Implement prevention and monitoring measures to reduce avoidable losses from fire, pests, and disease, including early detection and response actions.
- Manage harvest residues to maintain soil function (retain sufficient residues where needed for nutrient cycling, erosion control and habitat), avoiding avoidable depletion of site productivity
Intermediate practices
- Apply defined practices to minimise soil compaction, rutting, and damage (e.g., designated skid trails, controlled traffic, extraction planning, seasonal restrictions where relevant).
- Sort and segregate harvested wood by grade and intended use at landing to preserve value and avoid contamination that would downgrade reuse/reprocessing potential later.
- Where residues are removed, apply a safeguards approach (limits, site-specific assessment, retention thresholds) to prevent long-term nutrient depletion and productivity loss.
Advanced practices
- Monitoring technologies provide valuable data on forest health, changes, and disturbances.
- Satellite-based remote sensing, drones, and Geographic Information Systems (GIS), drone surveillance are key tools used to track deforestation, monitor forest health, detect illegal logging, and assess the impact of various forest management practices.
- Precision Forestry is the use of tools and technology to collect data to make decisions for site-specific management.
- It aims to improve wood quality, protect the environment, reduce waste, and increase profits.
- Precision forestry can be used in all phases of forestry, such as planning, site operations, monitoring, processing, and marketing.
Complementary measures and practices
Any of the eligible complementary measures and practices mentioned below can be applied to support transition to circularity:
- Production of fertiliser and biogas from animal manure and/or other organic waste or wastewater (WW 3- Recovery of bio-waste by anaerobic digestion or composting)
- Water management measures (WW 4: Production of alternative water resources for purposes other than human consumption) which includes Rainwater harvesting/storage
- The measures to upgrade the electrical systems with renewable energy sources and energy efficient systems to accommodate the power requirements
- Ensuring segregated collection of waste, to enable recovery, recycling and reuse (WW Activity 1. Collection and transport of non-hazardous waste and hazardous waste)
- Extend equipment lifetime through maintenance/repair; refurbish and reuse equipment; shared-use models to increase utilisation (MIS Activity 5,6 and 7)
- Research, development and innovation (RDI) programs specifically to enable circular design and production are eligible, including construction, upgradation and operation of pilot and demonstration facilities.
- Additional capacity building and training programs specifically on the following topics are eligible:
- Occupational health and safety, and use of personal protective equipment
- Technical training and capacity building to incorporate circularity practices
- Technical training to ensure segregated collection of waste
Exclusionary and ineligible practices
N/A
Do No Significant Harm (DNSH)
- Climate change mitigation Relevant: Click to view DNSH criteria
- Climate change adaptation Relevant: Click to view DNSH criteria
- Protection of healthy ecosystems and biodiversity Relevant: Click to view DNSH criteria