EU Taxonomy Alignment in respect to Forestry Products:

Forestry under EU Taxonomy can be broken down into four primary areas: Afforestation, Rehabilitation, Forest Management and Conservation. Whilst these projects differ the overall outcome of the production of forestry products is the same.

Afforestation:
Afforestation can be defined as a transformation for a specific piece of land from non-forestry to forestry. This development must be aligned with either the definition of a forest as set out in the national law or if not applicable in accordance with the FAO’s definition of a forest. The economic activities that may occur on this land will be associated with the NACE but will usually relate silviculture and logging.

Rehabilitation and restoration of forests, including reforestation and natural forest regeneration after an extreme event:
These relate to projects in forestry areas which are struggling environmentally and need rehabilitation to boost the overall ecosystem and meet the criteria outlined in the goal of conducting an economic activity. The land in question will need to be defined as ‘degraded land’, in that an event has caused it significant damage or the quality of forest has deterred overtime due to negligence. The economic activities that may occur on this land will be associated with the NACE but will usually relate silviculture and logging.

Forest Management:
Planned Projects that influence or contribute towards ecological, economic, or social functions of the forest. This is for projects where there is no change in land usage, and it aligns with the national law’s definition of a forest. The economic activities that may occur on this land will be associated with the NACE but will usually relate silviculture and logging.

Conservation Forestry:
Activities based on the preservation of one or more species or habitats, typically in areas that have been highlighted with an abundance of biodiversity. This is for projects where there is no change in land usage, and it aligns with the national law’s definition of a forest. The economic activities that may occur on this land will be associated with the NACE but will usually relate silviculture and logging.

Substantial Contribution Criteria:
Project Plan –
A project plan must be set in place with the main goal of outlining the environmental impacts of the project. Broadley speaking these projects are planned for a duration of no less than five years unless otherwise indicated.

These points are required to be included in the plan:

1. Description of the area the plan includes.
2. Impacts on carbon stocks within the land of the project.
3. The overall strategy in place to reach the management goals.
4. An overview of the species that already reside in the land.
5. The physical features that the land contains such as roads, public access and water sources.
6. What steps are going to be taken to ensure the preservation of the overall ecosystem.
7. Consideration of a breach in any societal rules or laws that the project my encroach on.
8. An assessment of issues that can occur within the forestry land such as disease and forest fires and the due diligence that will take place to prevent these.
9. Clarification on whether food security needs to be taken account of.
10. The DNSH criteria applicable to the project.

Climate Benefit Analysis –
If the forest management plan is satisfactory then climate benefit analysis can take place the direct impact the project will have on the climate. The overall GHG emissions (GHG emissions produced minus the removals) produced by the project’s activities do not exceed the threshold over a thirty-year period. The overall goal of the climate benefit analysis is to determine the carbon stock and sink levels. The carbon stock is in reference to quantity of carbon within the carbon pools within the area deadwood, litter, soil, above ground biomass and below ground biomass. Carbon Sinks levels can be measured by looking at the land and physical features that have the potential to absorb and intake carbon such as lakes and rivers.

Guarantee of Permanence –
Due to national law, land planned to be used in forestry projects can be broken down into three forms; permanent forest estate, protected area or contractually obligated to remain as a forest.  Due to this the operator of the project must acknowledge that all future developments to the project plan, and hence the project itself, must continue to proceed with the positive contribution to climate factors.

Audit –
Two years on from the beginning of the project there will need to be an audited by either national competent authorities or an independent third-party certifier. This process will then need to repeat every ten years on from the original audit date, not the date in which the project started. This audit is to be done in alignment with the DNSH criteria and the substantial contribution towards climate change contribution.

DNSH Criteria:
Pollution Prevention –
The project does not include the use of pesticides or fertilisers that can lead to the pollution of the area in which the project is to take place.  This ban also applies to products that contain ingredients that have been listed as highly or extremely hazardous by the WHO. If pollution to physical features such as water sources and soil plots the appropriate cleaning measures must take place.

Climate Adaptation –
A climate risk and vulnerability assessment must take place to ascertain if the project will contribute to any of the physical hazards listed below. Adaptation solutions that can reduce these hazards should also be taken into consideration.

Potential Climate Related Hazards due to a forestry project:

• Heat stress, temperature variability, drastic change in temperature, permafrost thawing, heat wave, frost, or wildfires.
• Changing wind patterns, cyclones, hurricanes, typhoons, storms, blizzards, sandstorms, and tornados.
• A change in precipitation patterns, precipitation variability, ocean acidification, water stress, sea level rises, saline intrusion, drought, heavy precipitation, flood, and glacial lake outburst.
• Coastal erosion, soil degradation, soil erosion, solifluction, avalanche, landslide, and subsidence.

Water –
If the area used in this forestry project contains a water source water quality and water stress must be taken into consideration. This is addressed by conducting an environmental impact assessment in accordance with the directive of the European Parliament. This requires technical analysis of the water to determine whether the project has reduced the quality of the water added stress.

Biodiversity –
For projects that have been identified as having protected species or habitats there will be additional conservation objectives that need to be taken into consideration. This is in the aim to promote and maintain good levels of biodiversity within the area. The following steps need to be considered to achieve this:

• An avoidance of the introduction of invasive external species
• Make sure that any species introduced do not affect the current ecosystem
• Promoting biodiversity-friendly practices that naturally encourage the areas natural processes