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Die Bedeutung von CSRD für Ihr Unternehmen ab 2024

 Serious sustainability within companies is a key factor in the battle for our climate. There are significant changes in corporate reporting on sustainability efforts. As of mid-2024, the new EU directive on corporate sustainability reporting (Corporate Sustainability Reporting Directive, [CSRD](https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company-reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en)), which came into effect at the beginning of 2023, must be implemented by member states. In this post, we aim to provide practical clarity on this matter.

### Am I affected?

For large EU companies of public interest, there have been reporting obligations for sustainability under the Non-Financial Reporting Directive ([NFRD](https://eur-lex.europa.eu/legal-content/DE/TXT/?uri=uriserv%3AOJ.L_.2022.322.01.0015.01.DEU&toc=OJ%3AL%3A2022%3A322%3ATOC)) for some time. This is now being significantly expanded, affecting around 50,000 companies in the EU. 

*Who is specifically affected?*
- All organizations with a net turnover of 40 million euros, total assets of 20 million euros, and more than 250 employees. There will be further adjustments in 2026.
- Non-EU companies with a turnover of 150 million euros and a subsidiary within the EU with 40 million euros. Micro-enterprises are initially exempt (there will likely be deeper thresholds by 2026).

### Why CSRD?

The purpose of the CSRD directive is to steer the path to Net-Zero by 2050, specifically the flow of funds and capital within companies. This means that investments will flow into initiatives and companies that provide sustainable solutions and contribute to the reduction of CO₂ equivalent emissions.

### What are the requirements?
The major change that will also require a significant shift in mindset is the obligation to include "non-financial" information in the annual report, which must also be externally audited. Furthermore, there are standards (templates), and for the first time, this must be done in a digital format.

### What does this specifically mean?

The aim is to examine and assess companies from the perspective of genuine sustainability. This includes:
- Business model, strategy, and policies.
- Governance structure and transparency of the organization.
- Corporate and sustainability leadership, sustainability experts in management.
- Double materiality assessment - how it affects the environment, but also how the environment affects the company (for example, a fisherman harvesting fish from the sea, fewer fish affecting the fisherman).
- Risk and opportunity management, such as climate and financial risks and opportunities.

The range of topics is broad and aligned with the UN's SDGs (Sustainable Development Goals). These include environmental goals (climate protection, water conservation, circular economy), ESRS (environmental and social risks and opportunities), social aspects (workforce, affected communities, end consumers), and the governance of all these aspects (43 sector-specific standards under development, such as governance, risk).

### Why act now?
To be best prepared, companies should have already started or should immediately start their individual "Net-Zero journey." On one hand, this is to gain a competitive advantage and generate long-term value as a forward-looking company. It's essentially about achieving a rapid "license" to operate the company in a future-proof manner. There's a significant shift in that companies are no longer judged solely based on financial metrics, but also on their environmental and sustainability impact.

### What happens if you don't act?
To show results before the first EU-set deadlines, steps should be taken now. Once these deadlines expire, rigid and unresponsive companies will be exposed as non-sustainable entities and will face disadvantages in the market. It's wiser to act now, to stay ahead of the competition, reap the benefits of your efforts, and establish a long-term competitive advantage.
Tree.ly is positioned as an impact company, meaning we've put a lot of thought into our impact, our impact model, and the impact ladder. We've defined inputs, outputs, and outcomes and have a strategic plan for how we can contribute to Net-Zero as a small but impactful organization.
We invite you not just to meet the minimum requirements to avoid fines and reduce the risk of regulatory consequences. Instead, be one step ahead in this important change for all humanity. Sustainability transformation is a long-term investment and a change in operations, not a quick overnight action.

### How can Tree.ly assist you?
On the path to Net-Zero, the first step is analyzing the carbon footprint and climate balance (we can connect you with professional partners for this). Then comes a plan to reduce emissions (e.g., renewable energy, electric fleet, and specific measures). IN PARALLEL, you should already be making financial contributions to permanent CO₂ reduction, such as through domestic forest climate protection projects.

Tree.ly: 4 building blocks on the way to Net-Zero
![Frame 30.png](https://cdn.tree.ly/strapi/Frame_30_e17ebd9b91.png)

The difference of immediately supporting meaningful, certified, regional projects (such as domestic forest climate protection projects) or waiting until later (e.g., only after the reduction path) is very apparent here:

![Frame 10.png](https://cdn.tree.ly/strapi/Frame_10_21a3318145.png)

The impacts are reflected in the 'compensation gap' and illustrate why it is important to support meaningful, certified, and regional projects (such as [regional forest carbon projects](https://tree.ly/portfolio)) now rather than waiting until a later date.

We're here to assist you on your individual journey to Net-Zero 🌲😀! Explore our Austrian [forest climate protection projects](https://tree.ly/portfolio) now. Approximately 25 more projects in Germany, Italy, the Netherlands, and the Czech Republic are already in development and will follow immediately after certification.

Invest in climate protection projects for regional forests, support the work of forest owners and contribute to achieving your climate goals.

Our climate protection offer

We carry out only high-quality projects in European forests. Our methodology currently covers the project types "stock building", "stock preservation", or a combination thereof and also "forest reserves" and "reforestation".

The Importance of CSRD for your Company from 2024

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Tree.ly: Den Wert der Ökosystemleistungen des Waldes anerkennen

Broadly speaking, ecosystem services encompass everything from soil fertility to pollination to recreation. Together, they make human life possible. These services are being increasingly appreciated, but as the [FAO](https://www.fao.org/ecosystem-services-biodiversity/en/) states, “despite an estimated value of $125 trillion, these assets are not adequately accounted for in political and economic policy.” 

A big part of Tree.ly’s mission is finally compensating forests (and by extension forest owners) for the valuable ecosystem services they provide. What are these “services”, and how are they compensated?

### What exactly are the ecosystem services of a forest?

Forests do far more than just provide humans with raw materials. A forest’s ecosystem services include among other things: 

-	preserving [biodiversity](https://tree.ly/glossary#biodiversity) as home to numerous species;
-	[sequestering carbon](https://tree.ly/glossary#carbon-sequestration) and mitigating climate change;
-	conserving soil and preventing land degradation;
-	acting as water filters and preventing floods;
-	serving as places of recreation and leisure.

![ecosystem_services.png](https://cdn.tree.ly/strapi/ecosystem_services_379175bb34.png)

_Source:_ [Earth Observation Based Monitoring of Forests in Germany: A Review](https://www.researchgate.net/figure/Ecosystem-services-of-forests-subdivided-into-provisioning-services-supporting_fig1_345716175)

In mountainous areas, so-called [protective forests](https://info.bml.gv.at/en/topics/forests/austrias-forests/protective-forests.html) serve a further crucial role: protecting human infrastructure. Indeed, [BOKU](https://boku.ac.at/en/) research shows that 1 euro invested in a forest has the same protection quality as 150 euros of technical solutions (avalanche protection, concrete reinforcement, etc). In Austria, this is divided into _Objektschutzwald_ (human infrastructure protection) and _Standortschutzwald_ (protecting the location’s soil habitat from erosion and degrading). 

But it’s not enough to simply recognise ecosystem services as such. To make a real difference, these need to be quantified and measured. This is where Tree.ly really comes into its own. 

### How we're quantifying Europe’s forests

Tree.ly is merging the finest age-old nature-based solution with the very latest technology to build the most accurate models ever constructed of Europe’s forests. Our technical team uses science-based technological solutions - drone imaging, lidar, satellite imaging, ortho-photography and more – to reach these exact measurements of a forest’s ecosystem services. This is ultimately monetized and matched with partners on the carbon markets willing to pay. 

At present this consists primarily of evaluating the photosynthetic value of a forest – the process by which carbon is stored. In tropical forests, similar instruments have existed since 2008, but European forests owners have not been compensated for this valuable ecosystem service – until now. 

A forest stock is analysed, taking into account factors such as tree species, altitude, tree age, and more, to reach an accurate estimation of its carbon capture capabilities over time. For example, the largest forest owner in Vorarlberg (Austria) includes 6,470 ha, an analysis foresees a creditable carbon sink performance of ~353,000 tonnes of CO₂ in 30 years, or ~11,000 tonnes of CO₂ per year for 30 years.

Once quantified, the concept of [additionality](https://tree.ly/glossary#additionality) is crucial in turning this into a carbon market asset. This way, foresters are finally recognized for the valuable work they have done for centuries. What’s more, as part of their agreements with Tree.ly the forest owner agrees to reinvest all profits back into the forest, ensuring its ecosystem services continue far into the future.

### CO₂ and beyond

As well as forests’ carbon capture potential, Tree.ly’s technical team is actively working on solutions to measure and quantify other vital factors such as water filtration and biodiversity, bird species etc. In the coming years, this will make our platform the most comprehensive compendium of European forests ever created. 

Find out more and explore our ever-growing portfolio here: https://tree.ly/portfolio


Tree.ly: Recognizing the value of forest ecosystem services

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Welche Funktionen erfüllt der Wald?

With climate change mitigation now a hot topic, there is a renewed focus on the importance of maintaining woodland and tree stocks around the world and their role as [carbon sinks](https://tree.ly/glossary#carbon-sink). Rainforests rightly get ample coverage due to immediate existential deforestation threats. However, forests and trees of all kinds play absolutely essential roles in maintaining life – human and otherwise - on planet earth, of which [carbon sequestration](https://tree.ly/glossary#carbon-sequestration) is just one aspect.

### Infrastructure protection

If you look at the outskirts of many towns and cities – especially those in hilly or mountainous regions – you will undoubtedly find protective forests. These unsung heroes of urban life play a crucial and often under-appreciated role in minimizing damage to infrastructure in the face of avalanches, erosion, rockfall or flooding. Without them, many towns and cities would suffer exponential increases in natural disasters.

### CO₂ storage and raw materials

The recent IPCC report highlighted the role forests can play as carbon sinks – often many times more than any technology we have yet invented ([see our analysis here](https://tree.ly/blog/ipcc-report)). Meanwhile, sustainably managed forest stock is a vital source of wood, which when turned into houses or objects can store this carbon indefinitely and play a key role in a new circular economy.

### Water storage and flood prevention

The role of trees in carbon sequestration is thankfully now common knowledge; what’s less well known is its role in storing water, maintaining lands, and preventing floods. Forests serve a filtration role, filtering sediment and pollutants before water reaches streams or rivers. Forests also act as a giant sponge, soaking up rainfall for slow release - without them there would be huge increases in flooding. 

### Biodiversity preservation 

Of course, forests are not only there to serve us – they’re home to most land-based life on earth. Indeed, [the UNEP reports](https://www.unep-wcmc.org/en/news/earths-biodiversity-depends-on-the-worlds-forests) that the planet’s forests contain more than 60,000 tree species, 80% of amphibians, 75% of bird species, and 68% of mammalian life. Put simply, take away the forests and we take away the foundations for much of the planet’s [biodiverse](https://tree.ly/glossary#biodiversity) life. 

### Air purification and a place of leisure

As evidenced by the recent “forest bathing” trend, there’s been a new-found appreciation of woodland as places of relaxation away from city life. But this purification role of the forest stretches way beyond human existence – possibly right back to the start of complex life. This is, of course, due to the simple fact that trees absorb [CO₂](https://tree.ly/glossary#carbon-dioxide) and release oxygen, without which life (as we know it) on Earth would never even have developed. 

With all these factors considered, it’s abundantly clear that the more forest we lose, the more planetary life is endangered. On the flipside: the more we nurture our forests and regenerate tree stocks, the more we’re breathing life back into the very systems which sustain life on this planet. 


What functions does a forest perform? 

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Was macht Tree.ly?

We work hand in hand with forest owners, combining deep knowledge and climate awareness with the very latest tech, to create a future worth living in.

**Would you like to generate additional capital with your forest?**

**Do you want to play your part in a sustainable future?**


The great CO₂ storage potential of forests is widely known. Less well-known is that this may also be a source of income to make forestry more profitable in today's world. We help bring additional money into your forest while realizing valuable climate protection services.


### Regional and climate friendly

Carbon certifications are associated with high initial costs for forest owners and can be a complex maze to navigate. This is where Tree.ly steps in for forest owners as a reliable and experienced partner. As well as this, our technology makes it possible for forest owners to manage and easily maintain their forest as a [CO₂ sink](https://tree.ly/glossary#carbon-sink) without high investment costs. We design climate protection projects that aim to optimize CO₂ storage potential and thus increase the removal of [greenhouse gas](https://tree.ly/glossary#greenhouse-gas) [emissions](https://tree.ly/glossary#emissions). The additional revenues generated by our carbon credits help forest owners ensure the ongoing sustainable management of their forest. To contribute to climate protection, additional annual revenue is to be used exclusively for forestry measures related to the forest area covered by the project.

### High-tech solution for the climate

As a technology company, Tree.ly creates accurate biomass surveys via remote sensing with their proprietary machine learning models. This creates digital twins of forests using satellite imagery, LIDAR data, elevation level maps and tree species distribution maps. With Tree.ly's digital platform, you can access relevant key figures about your forest at all times. This technological solution can also be applied to very small areas and is scalable to the whole of Europe. This is a breakthrough climate tech which paves the way for an automated EU-wide forest inventory with multiple fields of application.

### Tree.ly offers you:

- Feasibility studies for specific implementation
- Calculation of the CO₂ storage potential
- Calculation of the ideal overall forest stock 
- Provision of relevant key figures for forest management
- Tips for forest management optimized for carbon certification
- Access to Tree.ly’s digital forest management platform
- Organization and administration of the certification process
- Organization of monitoring and auditing activities
- Creation of a risk pool for damaging events 

### Increased income through climate protection services

In the first step, Tree.ly is serving forestry operations with an inventoried forest area above 500 hectares. However, in the near future, Tree.ly’s platform will enable whole forest inventory, thus opening up the possibility to small forest owners too. We are currently in contact with a large number of forest owners of all sizes. To date, we have already carried out feasibility studies for around 15,000 hectares of forest. 

Tree.ly was founded with the aim of combining state-of-the-art technology, full transparency, and forest conservation, putting climate protection into practice through regional cooperation and financial viability. 

It’s time for forest resources and good forestry practice to be truly valued and appreciated. You too can help drive climate protection and sustainable development in Europe. Let the forest work for you.


[Claim your forest now.](https://tree.ly/sign-up/step-1)



What does Tree.ly do?

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Wälder und Kohlenstoffbindung: das Fazit des neuesten IPCC-Berichts

As if we needed any further reminders of the seriousness of the climate emergency, the IPCC have released the [final part of its Sixth Assessment Report](https://report.ipcc.ch/ar6wg3/pdf/IPCC_AR6_WGIII_FinalDraft_FullReport.pdf). While it lays out in no uncertain terms the extent of the challenge, there is cause for optimism as the focus is on “the linkages between climate change mitigation, adaptation and development”.

Firstly, the bad news: clearly the window of opportunity to limit serious temperature rises is fast closing. Not only have[ emissions](https://tree.ly/glossary#emissions) not reduced, they continue to rise. 

But this report was less about the bad news, and more about what we can do to fix this. Alongside a recommendation for “rapid and deep” emissions reductions to limit global warming to less than 1.5 or 2°C, there was a new focus given to carbon dioxide removal ([CDR](https://tree.ly/glossary#carbon-removal)) in all its forms: “The deployment of CDR to counterbalance residual emissions is unavoidable if net zero CO₂ or [GHG](https://tree.ly/glossary#greenhouse-gas) emissions are to be achieved.” (Section C.3)

This insightful table essentially puts man-made solutions side by side with [nature-based solutions](https://tree.ly/glossary#nbs) in the clearest way ever:

![IPPC_Report_Graph.png](https://cdn.tree.ly/strapi/IPPC_Report_Graph_a30729effe.png)
*Source: IPCC, Figure SPM.7: Overview of mitigation options and their estimated ranges of costs and potentials in 2030.

Here it’s clear that, for now, carbon capture and storage (CCS) technology is both inefficient at cutting carbon and incredibly costly. Thankfully a technology exists which is cost-effective, efficient, readily available, and whose impact literally grows over time. 

#### Yes, we’re talking about trees.  

In fact, when combined, forest-based solutions represent the biggest climate mitigation options of all, taking into account reduced [deforestation](https://tree.ly/glossary#deforestration), afforestation, and sustainable forest management. 

Let’s take a look at the IPCC report’s main findings regarding the role of forests in climate change mitigation. 


### Cost-effective solution

It’s important to note that the “net lifetime cost” of tree-based solutions in the above table is also comparatively low. On this economic mitigation, the report states that the largest share comes from the “conservation, improved management, and restoration of forests and other ecosystems.” Clearly, we all have a huge incentive to maintain existing forest stocks. 

### Climatic impacts on trees

The changing climate is a double-edged sword for forests themselves – on the one hand, higher CO₂ levels may “enhance tree growth rates, [carbon sequestration](https://tree.ly/glossary#carbon-sequestration), and timber and biomass production” but on the other, climate change could lead to “greater frequency and intensity of disturbance events in forests”. However, the net effect remains to be seen. 

### Sustainable forestry 

The report clearly recognizes the role of “Indigenous Peoples, private forest owners, local farmers and communities manage a significant share of global forests and agricultural land and play a central role in land-based mitigation options.” At the same time, there is a role too for sustainably sourced wood products and the locked-in carbon storage this entails: “When done in a sustainable way, more regrowth will occur and is stimulated by management, resulting in a net sink.”

### Urban expansion

The report states that urban land may well triple between now and 2050, and that given past trends, this expansion “is expected to take place on agricultural lands and forests, with implications for the loss of carbon stocks.” But at the same time, a ‘greening’ of urban areas (including urban forestry) could both help cooling effects and play a carbon capture role, seeing as urban trees currently store 7.4 billion tonnes of carbon, and sequester approximately 217 million tonnes of carbon annually.

### Zero deforestation

It goes without saying that the report recommends redoubling efforts to end deforestation at all levels. This includes a “High Carbon Stock (HCS) approach” that combines carbon stock values with the protection of HCS areas. They call, however, for greater degrees of transparency and legislative powers to “improve the enforcement of forest laws and regulations”.

### Forest financing

As the costs of delivering the proposed forest-related [carbon sequestration](https://tree.ly/glossary#carbon-sequestration) and emission reduction may reach $400 billion a year by 2050, the IPCC recommend maximizing the horizontal engagement between business, NGOs, and communities to meet the financing needs. Furthermore, they state that “enhanced monitoring, reporting and verification capacity” play a crucial role in establishing trust across this “wide array of actors”.

–––––––––

Overall, the report is positive on the effect sustainable forestry can have on mitigating climate change, with the potential to deliver 5-6 gigatons of CO₂ per year in sequestration and emission reduction. Moreover, they spell out the clear interrelation between sustainable forest management and the path of sustainable development – and the clear benefit not only to the planet but to society and human advancement at all levels. 


Forests and carbon capture: the verdict from the latest IPCC report

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Wir stellen vor: Boemly, unsere Komponenten- bibliothek für React

I’m very happy to introduce our brand new component library for React - Boemly. Boemly is based on the widely known open-source component library [ChakraUI](https://chakra-ui.com/), which is focused on accessibility and speed. Boemly focuses on the same values and enriches ChakraUI with some neat components conceptualised and built by the Tree.ly team. Boemly offers a very limited amount of customizations to keep it simple, only core tokens like fonts, colours, border radii, … can be customised.

## How to use Boemly?

Boemly tries to be as easy to use as possible. It’s based on the widely known [provider pattern](https://reactjs.org/docs/context.html) in React. You have to wrap the whole app in the BoemlyThemeProvider and then use the components of the library. A little example:

```js
import { Button, BoemlyThemeProvider } from 'boemly';

function App() {
  return (
    <BoemlyThemeProvider>
      <Button>Button</Button>
    </BoemlyThemeProvider>
  );
}

export default App;
```

### Useful links:

- Full documentation → https://boemly.tree.ly 
- GitHub → https://github.com/treely/boemly (Don’t forget to star!)
- NPM → https://www.npmjs.com/package/boemly 

### Technical details

Boemly is 100 % written in Typescript and follows the high coding standards at Tree.ly. Same as ChakraUI, Boemly uses [Emotion](https://emotion.sh/) for styling and [Framer Motion](https://www.framer.com/docs/) for smooth animations. To ensure code quality an automated linting, testing, and publishing pipeline is set up. Deploy early, fail fast!

### Open source

Boemly is an open-source project and has already found some contributors. We at Tree.ly believe in the valuability of an engaged developer community. That’s why we want to open-source as much as possible and encourage employees to contribute to open-source projects whenever they want. Boemly is the first open-source project of our young company - contributions are highly appreciated - don’t be afraid of being wrong.


Introducing Boemly, our component library for React

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Wie wirkt sich der Klimawandel auf die europäischen Wälder aus?

Most of the talk around forests and climate change revolves around their potential to capture carbon and [offset](https://tree.ly/glossary#offsetting) [emissions](https://tree.ly/glossary#emissions). Indeed, this is at the core of our own company’s mission. But the fact is these same trees are themselves under threat from climatic transformations already under way. Let’s look at how forests in Europe are changing – and what we can do about it.
 
### New tree species

One sure sign of change is the planting of wholly new types of trees, in anticipation of a warmer climate. Caring for forests is a generational game; in the words of an old Greek proverb, “A society grows great when old men [plant trees](https://tree.ly/glossary#tree-planting) whose shade they know they shall never sit in.” This has never been more true, and now these ‘old men’ need to give more consideration than ever as to exactly which trees are planted. For example, several Austrian forestry companies are already experimenting with warmer climate species such as Douglas (pseudotsuga spp.), Robinia pseudoacacia, Paulownia spp. etc.
 
### Older trees more vulnerable

Younger trees may benefit from the foresight of their planters, but those already in the ground have no such luck and are the most vulnerable to climatic extremes. “Their water transportation system has to work under greater stress to transport water,” comments a [Max Planck Institute report](https://www.mpg.de/16501852/climate-change-threatens-european-forests). “As a result, large trees suffer more from drought and are then more susceptible to disease.” Not only this, due to their size older trees are most vulnerable to both storm damage and insect attacks. So while we most often hear about tree planting and reforestation, proforestation – the protection of older growth – has a crucial role to play in [carbon sequestration](https://tree.ly/glossary#carbon-sequestration) efforts.

### Dry periods and fires

When hearing of forest fires, we generally think of far-flung California or Australia. Yet the truth is they’re becoming increasingly common in Europe, as those in Southern Europe can attest to. 2021 was [the second-worst year on record](https://joint-research-centre.ec.europa.eu/jrc-news/eu-2021-wildfire-season-was-second-worst-record-finds-new-commission-report-2022-03-21_en), with 1 113 464 ha burning across 39 countries thanks to a lethal combination of drought and high temperatures. If we’re to take full advantage of trees’ CO₂ capture potential, we need to mitigate the risk of fires which undermine such efforts.
 
### Pests

Higher temperatures and droughts in forests create a perfect storm for harmful bark beetle infestations, on the one hand weakening trees’ defences and on the other accelerating the beetles’ breeding cycles. They are multiplying in such exponential numbers that Central Europe’s backbone of spruce forests are under threat; the Czech Republic alone lost the equivalent of 100,000 football fields in 2018.
 
Thankfully, technologies such as drones and [remote sensing](https://www.mdpi.com/2072-4292/12/21/3634/pdf?version=1604586979) are helping foresters prevent and mitigate damage, by detecting the early signs of infestation. But there’s a long way to go in overcoming this tiny yet lethal menace.
 
### Windstorms

Windstorms and all the other mentioned calamities are natural occurrences in forest dynamics and can help [regenerate forests and increase [biodiversity](https://tree.ly/glossary#biodiversity)](https://www.sciencedirect.com/science/article/pii/S0048969721070480). However, extreme weather events and more exposed forests increase the risk of serious damage. It is not just the wind itself; [studies in Switzerland](https://www.sciencedirect.com/science/article/pii/S0048969721070480#bb0525) suggested warmer soil temperatures play a part. Wind damage can be mitigated through adaptation strategies and risk minimization, such as forest planning to take into account the most vulnerable trees or stocks.

### Conclusion: 

If we are to make the most of trees' vast carbon storage potential - which is ultimately our mission at Tree.ly - a timely adaptation and mitigation is essential. As we've explored, many of these changes are part of a forest's natural fluctuations and processes, but they're happening faster than ever before. Thankfully, all the above can be mitigated or prepared for in good time with good forest management and by harnessing the potential of new technologies.

How is climate change affecting European forests?

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Der Tree.ly Climate Project Codex: Sicherstellung der höchsten Qualität von Emissionsgutschriften

Inevitably as [carbon neutrality](https://tree.ly/glossary#carbon-neutral) and [net zero](https://tree.ly/glossary#net-zero) hit the headlines, scrutiny of such claims is increasing. Bold claims are all well and good, but only if backed up by tangible measurable action. With this in mind, we feel it’s important to lay out precisely how Tree.ly’s projects resolve several of the carbon market’s wicked problems. 

### Solving “double counting”

The issue of [double counting](https://tree.ly/glossary#double-counting) has plagued carbon markets for years. Simply put, this refers to the need to ensure 1 tonne of CO₂ is counted only once, and though the [Paris Agreement](https://tree.ly/glossary#paris-agreement) made some progress, the issue remains. Tree.ly solves this on two fronts: on the one hand by using the latest technology (t, blockchain, etc.), and on the other hand thanks to an emphasis on regional projects, keeping trading within borders using the so-called “Swiss solution” put forward by the [Swiss federal forest division (BAFU)](https://www.bafu.admin.ch/bafu/en/home/office/divisions-sections/forest-division.html). Which brings us to our next point:  

### High-quality regional projects

Only European projects with the strongest forestry laws on the planet are selected by Tree.ly. Quality is guaranteed and vetted through this selection process, after which we work closely with forest owners. Together we generate detailed information using precise measurements such as lidar, science-based stock keeping and vegetation types and harvesting data and forest management science. Last but not least, any income generated must be reinvested into the forest to further boost the robustness of these valuable assets.

### Vulnerability buffers

The commitments forest owners make to Tree.ly also offer our projects a large degree of risk protection. The way projects are distributed also inherently spreads the risk: fast-growing and strong Alpine forests buffer more vulnerable forests in other regions of Europe. The buffer percentages of a high-risk forest project are adapted and higher than for a very safe project. In the recent US forest fires, these buffers literally went up in flames, but in Europe such large forest fires cannot occur due to the shape and size and infrastructure capabilities.

### Ultimate additionality

Standards stipulate that climate protection measures from offset projects must be of an additional nature, meaning they come from projects that would not have been initiated otherwise. We engage in two types of projects ([Carbon Removal](https://tree.ly/glossary#carbon-removal) & Carbon Conservation), each of which address this “[additionality](https://tree.ly/glossary#additionality)”. With carbon removal projects this is clear, literally adding trees to a forest stock. With carbon conservation, even if conditions and wood prices lead to a lowering of stock, forest owners commit to not going below their agreed-upon lower boundary. (Find out more in our [blogpost](https://tree.ly/blog/treely-project-types)).

### Longest time spans

Permanence is another aspect which sets Tree.ly apart: there are no other similar projects on the planet with 30-year permanence. Coupled with our science-based measurements, this increases reliability and can ensure more of an impact, locking in the forest’s CO₂-capturing capabilities for three decades. Moreover, if long-lasting wood products are subsequently produced (e.g. houses) this is sequestered indefinitely. These factors give Tree.ly’s nature-based climate projects the greatest possible permanence.

### Transparency and high standards

Trust and transparency are indispensable in carbon markets, especially with increasing scrutiny and anti-[greenwashing](https://tree.ly/glossary#greenwashing) movements. With this in mind, [Tree.ly’s registry](https://tree.ly/portfolio) can be seen at any time by all parties (credit purchasers, forest owners, etc.) – it is transparent by design, and based on [ISO 14064-2 norms](https://www.iso.org/standard/66454.html). On the purchasing side, we only sell to hard-to-avoid emitters: buyers need to show their carbon balance, and prove they’ve done everything to reduce and [avoid Scope 1,2 & 3 emissions](https://tree.ly/blog/intro-carbon-markets). Only then can they be accepted to buy carbon credits from Tree.ly. 

Ultimately, such transparency and high standards underly everything we do, meaning forest owners and carbon purchasers alike can rest assured that projects with Tree.ly offer maximal trust, reliability and quality.

### Read more:

[Check out](https://tree.ly/blog/intro-carbon-markets) our concise summary of carbon markets as of 2022.

- [Treely for Forest Owner sign up](https://tree.ly/sign-up/step-1)
- [Treely for Carbon Buyers](https://tree.ly/for-companies)


The Tree.ly Climate Project Codex: Ensuring the highest quality carbon credits

Forest_From_Above.jpg

Waldkohlenstoffmanagement: Grundsätze für den Verkauf von CO₂ Gutschriften

The Austrian Chamber of Agriculture has finalized the position paper on carbon management in forests with the principles for the sale of CO₂ credits. In addition to some wording changes, the earmarking of the proceeds was neglected in this final version. Thus, reinvesting the profits generated from the sale of CO₂ credits in silvicultural measures is no longer a principle. The final document can be found here: 

**[Download: Position paper of the Austrian Chamber of Agriculture](https://cdn.tree.ly/strapi/CO_2_Gutschriften_Grundsaetze_Juli22_ce6df83c4b.pdf?updated_at=2022-09-15T12:39:25.315Z&utm_source=website_co2_lk&utm_medium=pdf&utm_campaign=carbon_credits)**

## Carbon management in forests

As one of the greatest challenges of the next decades, the climate crisis defines our time. The European Union's goal is to stop releasing net [greenhouse gas](https://tree.ly/glossary#greenhouse-gas) emissions by 2050. To achieve this goal, the use of fossil raw materials must be reduced immediately and unavoidable CO₂ [emissions](https://tree.ly/glossary#emissions) must be compensated for in sinks. In this development, biogenic climate protection projects are becoming increasingly important. 

In the wake of the Land Use, Land Use Change and Forestry (LULUCF) Regulation or the Taxonomy Regulation, agriculture and forestry are increasingly becoming the focus of [carbon sequestration](https://tree.ly/glossary#carbon-sequestration). As a result, the Austrian Chamber of Agriculture has formulated a set of principles for the sale of carbon credits. 

### General principles

The priority is to phase out fossil fuels and increase raw material and energy efficiency. It is significant that [CO₂ compensation](https://tree.ly/glossary#carbon-compensation) is accompanied by [CO₂ reduction](https://tree.ly/glossary#carbon-reduction). Avoiding emissions comes before reducing and [offsetting](https://tree.ly/glossary#offsetting). Offsetting companies should therefore demonstrate a fossil CO₂ emissions reduction plan. In addition, sound business practices, through, for example, measurability, no double-billing, as well as transparency, should be followed. The latter can be ensured by documentation in a publicly accessible register. 

In principle, carbon storage in biomass is a climate protection service. According to the European Union, land managers should sell carbon credits in the same way as their traditional products. This trade takes place voluntarily between two contracting parties, and the state can also act as such. Credits are traded specifically, this trade is different from the emission certificate sector. 

The contract period between the two partners should be between 20 and 30 years, thus guaranteeing independence for the future generation. With regard to the remuneration of the climate protection services, market-based mechanisms are used. It is particularly important that no [double counting](https://tree.ly/glossary#double-counting) takes place, therefore the trade is limited so far to the national borders. 

Accredited certification is an important prerequisite here. This should, for example, also enable small structures to participate. In Europe, the ISO 14064-1 to 3 series of standards are suitable for this purpose. Outside Europe, the [GOLD standard](https://tree.ly/glossary#gold-standard) and VERRA in particular have become established.

### Special aspects of forest management

The current marketing of carbon sequestered in wood is limited to sawmill, industrial or energy wood products. As an additional product, CO₂ credits open up new opportunities for forestry. 

In the carbon management of forestry, only the wood stock has been considered so far. Compared to carbon in the forest soil, this is easy to measure and can be developed more quickly. The wood stock is regulated by law, thus preventing drastic deforestation and safeguarding the functions of the forest. A [baseline](https://tree.ly/glossary#baseline-and-credit-systems) can be set above which deliberate non-use constitutes a climate protection service.

The long-term storage effect of the forest should also be secured. In the wake of the climate crisis, the calamity risk for forest stands increases significantly. Increasing the number of participants and thus the size of the area reduces the risk. Annual payments can be stopped immediately in case of calamity and it is possible to create reserves for such a case. 

The CO₂ products of forestry are stock building and stock preservation, rewetting of peatlands, and building with wood. Regarding timber stock, it should also be possible for operations that have built up a high stock in recent years and are now facing the regeneration phase to participate in the trade. In addition, participation in timber certification schemes should be considered and can increase the value of credits.

### Basic differences from agriculture

Unlike forestry, where the focus is on above-ground biomass, agriculture looks at humus buildup in the soil. Likewise, there are hardly any approaches to stronger carbon sequestration in forestry. Whereas in agriculture, targeted measures already exist within the framework of ÖPUL. 

Read here the entire [document](https://cdn.tree.ly/strapi/CO_2_Gutschriften_Grundsaetze_Juli22_ce6df83c4b.pdf?updated_at=2022-09-15T12:39:25.315Z&utm_source=website_co2_lk&utm_medium=pdf&utm_campaign=carbon_credits) of the working group "Carbon Management in Forests" of the Austrian Chamber of Agriculture, of which Tree.ly CEO Jodok Batlogg is a member.

Learn more about buying carbon credits from verified forestry projects right here in Europe, enabling sustainable action in your own backyard:
[Tree.ly for Business](https://tree.ly/for-companies)


Forest carbon management: principles for selling carbon credits

People-working-in-the-forest.webp

Was für Waldklimaschutzprojekte macht Tree.ly? 

As you probably know by now, Tree.ly is a climate tech startup which helps forest owners get compensated for the [ecosystem services](https://en.wikipedia.org/wiki/Ecosystem_service) they provide. But how do we go about this? Here we take the chance to explain what kind of forests are benefiting, how they are categorised and – most importantly – how we arrive at our [carbon sequestration](https://tree.ly/glossary#carbon-sequestration) potential with which forest owners are compensated.

### First things first: Initial analysis

At present, we’re working with those who own upwards of 500 ha and maintain a forest inventory and management protocols. The first step is for current forest inventory to be determined, so our tech team can work out projected carbon estimations. The optimal stock range is then modeled, based on techniques established by [BOKU](https://boku.ac.at/en/) and [ETH Zürich](https://ethz.ch/). This analysis considers factors such as tree species, vegetation altitude, growth potential, and more. Based on these values, upper and lower boundaries are established, which are key for setting the framework and benchmarks for projects.

Once each project has been assessed, it is assigned into one of two categories: [Carbon Removal](https://tree.ly/glossary#carbon-removal) or Carbon Conservation [as defined by the IPCC](https://www.ipcc.ch/sr15/faq/faq-chapter-4/). Let’s look deeper at these two. 

### Project Type: Carbon Removal (increase of stock)

This is the ‘classic’ afforestation model, which mostly concerns adding to existing tree stock through measures such as forest management and planting activities. 
![increase_of_stock.png](https://cdn.tree.ly/strapi/increase_of_stock_f8bf0117f6.png)

The key here is maintaining (and growing) the current stock, using sustainable forestry management to care for and reach the chosen stock commitment. This number is chosen by the owner and agreed with Tree.ly as a realistic goal for the lifetime of the project; the duration can be set between 1 – 30 years. 

In the above example, the commitment is to increase the stock by **50 m³ / ha in 30 years**. In a project area of 1000 ha this would mean 50 m³/ha over the project lifetime – equal to an estimated **2100 tonnes of CO₂** per year.


### Project Type: Carbon Conservation (preservation of stock)

For this project type, we lend kudos to the slightly ‘unsexier’ side of forestry – rather than headline-grabbing [tree planting](https://tree.ly/glossary#tree-planting) ventures, this is all about maintaining existing stocks so that they continue to capture carbon for another generation or more. 

Crucially, older trees are jam-packed with [biodiversity](https://tree.ly/glossary#biodiversity) and provide habitats to a huge array of wildlife. “Forests create an enabling environment for life to flourish,” writes Cambridge sustainability expert [Wayne Visser](https://www.waynevisser.com/). “This is why planting trees is not enough we need to protect and expand forest ecosystems.”

Even with strong forestry laws we have in Central Europe, it is an achievement to keep up a certain amount of stock - an ecosystem service which should be recognised. Thanks to Tree.ly, forest owners finally have a way of monetising the [ecosystem value](https://tree.ly/glossary#ecosystem-value) of their forests. They are thereby rewarded for guaranteeing a certain stockage – instead of cutting down for wood, for example, they are incentivised to commit to a certain stock in the forest.

Here the lower and upper boundaries are key. Let’s say a total project area is 1454 ha, with a current stock of 390 m³/ha.  The forest owner commits to not go under 370 m³/ha and maintain this for 30 years – the default project length. In carbon terms, this commitment is equal to **89 tCO₂/ha**, adding up to **129 406 tCO₂** over 30 years ([contact us](https://tree.ly/) to find out the financial and earning implications).
![preservation_of_stock.png](https://cdn.tree.ly/strapi/preservation_of_stock_fc7cc547ef.png)

### Project Type: Removal & Conservation (combined project)

As well as the main two types, forest owners also have the option to combine the above two. 

### What happens next?

An annual report is carried out, on the basis of which the forest owner is paid. The report includes information on activities as well as any calamities which may have occurred. The certification body then issues carbon credits based on this report, which Tree.ly then sells on the [voluntary carbon market](https://tree.ly/glossary#vcm).  

Contact our forestry expert [Alexander Vilsmeier](mailto:alexander@tree.ly) to find out more about our project types, and how to get involved. 

**Typical project timeline:**
![treely project timeline.png](https://cdn.tree.ly/strapi/treely_project_timeline_fac4dbdd4c.png)

Explainer: What types of projects does Tree.ly deal with? 

Why_Treely_Visual@2x.webp

Warum Tree.ly?

The forest and its CO₂ storage potential together with its protection, utility and recreational capabilities is a valuable resource and the basis for many people’s livelihood. We ensure the preservation of the forest by using state-of-the-art technologies and through the execution of regional CO₂ projects with forest owners. These projects lead to a better forest structure, increase the climate resilience of the forest and optimize the CO₂ storage potential.

**Tree.ly stands for**
- preservation of forests
- modern technologies
- regional cooperation
- climate protection
- transparency and fairness
- reliable partnerships with forest owners

## And why do we need Tree.ly?

In Europe, forests have an immense, untapped climate protection potential. They compensate for about seven percent of [emissions](https://tree.ly/glossary#emissions) in Germany.  Tree.ly stands up for forest – our basis for life – and create opportunities for everyone to participate in climate protection by supporting forest owners in the sustainable management of their forests. We ensure that this valuable resource is preserved for us as well as future generations.
We use state-of-the-art technologies to create incentives for modern and sustainable forest management. Tree.ly, allows regional forest owners to receive fair compensation for their positive contribution to the environment in the form of CO₂ credits. With regional projects, we ensure that emissions are compensated right where they occur, contributing to the consistent, sustainable management of forests. This way, we can have the biggest impact on stopping climate change. For a sustainable, livable and just world. 

Why Tree.ly?

CO2_on_a_tree.png

Einführung in die CO₂-Märkte in 2022

Phrases like [net zero](https://tree.ly/glossary#net-zero) plans and emissions [offsetting](https://tree.ly/glossary#offsetting) are becoming increasingly part of the corporate lexicon. Nevertheless, the practical means for doing so remain difficult jungles to navigate, are subject to change, and often misunderstood. Given the importance of carbon markets to both Tree.ly’s mission and the future of the planet, here we offer the reader a (relatively) short introduction to the topic as of 2022.

### First step: recording GHG emissions

While the focus of carbon markets is on [offsetting](https://tree.ly/glossary#offsetting) – and offsetting is often the cheapest and most appealing option - it’s important to state that the initial focus of any net zero strategy should be avoiding and reducing greenhouse gas ([GHG](https://tree.ly/glossary#greenhouse-gas)) emissions in the first place. A company’s unavoidable emissions can then be offset in an ever-growing number of ways (CDU, DAC, Tree.ly). But the first step in any carbon[ compensation](https://tree.ly/glossary#carbon-compensation) strategy is to systematically record emissions (CO₂ and others) along the value chain. 

The [GHG Protocol](https://tree.ly/glossary#ghg-protocol) is the most widely used methodological framework for GHG accounting. Coordinated and developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), it defines three areas – Scope [1](https://tree.ly/glossary#scope-1),[2](https://tree.ly/glossary#scope-2),[3](https://tree.ly/glossary#scope-3) - to which GHG emissions are assigned: 

![scope_1-3.png](https://cdn.tree.ly/strapi/scope_1_3_89c32a3042.png)
_Source: [www.greenelement.co.uk](https://www.greenelement.co.uk)_

Once the GHG balance is established as a starting point, a company can set long-term reduction targets, target paths and timelines as part of a climate protection strategy. But for these to be meaningful, they must be science-based.

### Science-based targets

The Science Based Targets initiative ([SBTi](https://tree.ly/glossary#sbti)) serves as an excellent guide, showing companies how to set reduction targets for achieving the Paris climate targets. These should include at least 95% of Scope 1 and 2 emissions. If more than 40 per cent of GHG emissions are in Scope 3, the SBTi recommends setting ambitious, measurable Scope 3 targets. Since double counting can occur when recording CO₂ emissions in the supply chain, double offsetting by several actors can also arise (more on this below). As there are currently no international regulations in this area, it is recommended to proceed carefully when selecting the recording and target-setting method.

### Compensating based on SBTi

Although offsetting does not help reduce a company's own emissions, it does contribute to achieving net zero emissions outside the company's value chain. Because of this beneficial effect, SBTi calls this approach "[climate positive](https://tree.ly/glossary#climate-positive)". There are two options here: full offsetting or partial offsetting. 

**Full offsetting:** Companies pursue their target path by avoiding and reducing emissions. In this way, companies achieve net zero emissions in the target year, i.e. all emissions along the path are offset by the target year. 

**Partial offsetting:** Here only the difference (the delta) between the actual and the target emissions is offset. The residual emissions of the target path are not offset.

![sbti_graph.png](https://cdn.tree.ly/strapi/sbti_graph_7b4655fecb.png)


### On Additionality, Vulnerability and Permanence

Let’s break down three important terms when it comes to implementing meaningful compensation strategies: **_Additionality:_** Climate protection measures from offset projects must be of an additional nature, meaning they come from projects that would not have been initiated without the offset funding. **_Vulnerability:_** The oversupply of certificates and the question of which of the already running projects are dependent on the income from the sale of certificates raises the question of vulnerability. Vulnerable climate protection projects run the risk of not being able to continue emission reductions if the income from the certificates is lost (see more in the research from [DEHSt](https://www.dehst.de/SharedDocs/downloads/EN/project-mechanisms/vulnerability-of-CDM.pdf?__blob=publicationFile&v=3)). **_Permanence:_** Emission savings through climate protection projects must be permanent - the greenhouse gases saved must not be released back into the atmosphere. 

### Project quality and requirements

The quality of climate protection projects is crucial. High-quality and costly projects with high benefits are more likely to be transferred to the new Article G regime under the [Paris Agreement](https://tree.ly/glossary#paris-agreement). It should be noted that there are many cheap certificates on the market. Low-cost certificates can originate from projects carried out even without the additional income from the sale of the certificates, hence not actually helping to reduce emissions. Such measures therefore do not compensate for emissions caused by a company. 

Project quality is therefore paramount. This is where Tree.ly’s high-quality projects in European forests really stand out, with every element and stage of a project mapped out in detail – check out our [portfolio](https://tree.ly/portfolio).

### Double counting
[Double counting](https://tree.ly/glossary#double-counting) of a unit of saved CO₂ occurs when two actors count the same tonne of CO₂ saved. Example: in a project in India, 1 tonne of CO₂ is avoided; this tonne of CO₂ could now compensate for the emissions of a German company. But India as a country could also claim the saving for its [NDC](https://tree.ly/glossary#ndc). There is not only a theoretical conflict here, because two parties - the German company and India - claim the same physical tonne of CO₂ reduction.

The Paris Agreement has laid out rules to deal with [double counting](https://tree.ly/glossary#double-counting), which are currently being negotiated. 

For carbon certificates issued for Tree.ly projects, this issue of double counting is fundamentally avoided.

### Carbon markets: Pitfalls to avoid

Whichever approach companies choose, there are a few common pitfalls to avoid. This includes purchasing certificates from projects of poor quality, such as lack of additionality or permanence (see above definitions). Such allowances cannot be used for offsetting, even if the associated emission reductions were achieved before the end of 2020. 

Certificates from unidentifiable projects should also be avoided - companies should ensure they have direct access to all primary project information. Lastly, it should be clear to a company how funds are used and what their money is spent on. 

For each of these pitfalls, Tree.ly projects offer significant advantages, with complete transparency and accuracy, coupled with the fact that any money generated is transparently reinvested back into forest projects.

_Find out more about purchasing carbon credits from verified forest projects right here in Europe, enabling sustainable action in your own backyard: [https://tree.ly/carbon-buyers](https://tree.ly/for-companies)_




An Introduction to Carbon Markets in 2022

Treetops.jpg

Was sind Carbon Removals und warum brauchen wir sie?

As the term suggests, [carbon removals](https://tree.ly/glossary#carbon-removal), also known as carbon dioxide removals ([CDR](https://tree.ly/glossary#cdr)), are nature-based or technological methods of removing carbon dioxide from the atmosphere and result in negative CO₂ [emissions](https://tree.ly/glossary#emissions).

The[ Paris Climate Agreement](https://tree.ly/glossary#paris-agreement) calls for limiting man-made global warming to well below 2 degrees Celsius, or even 1.5 degrees Celsius if possible, compared to pre-industrial levels.

### Why exactly 1.5 °C?

According to climate scientists, a global warming of 1.5 degrees Celsius is the limit to avoid the worst consequences of climate change. The Intergovernmental Panel on Climate Change (IPCC) finds that the atmosphere can only absorb 313 gigatons (Gt) of CO₂ to stay below the 1.5 degree limit. In 2020, about 36 gigatons of CO₂ were emitted globally. If we assume that the world will continue to emit this much CO₂, the CO₂ budget will be used up in less than nine years. Therefore, reducing our CO₂ emissions alone is not enough to achieve the climate targets.

![1.5C.png](https://cdn.tree.ly/strapi/1_5_C_ff18b64c69.png)

As you can see from the graph, we cannot reduce our [carbon footprint](https://tree.ly/glossary#carbon-footprint) fast enough through conventional methods, such as renewable energy, to reach "net zero" by 2050. Carbon removals are needed to [offset](https://tree.ly/glossary#offsetting) the unavoidable emissions.

Carbon removal varies depending on how the CO₂ is removed from the air and for how long it is then stored. Often these two characteristics are related. A distinction can be made between nature-based methods, such as forestry projects, and machine-based methods, such as direct air capture (DAC). Nature-based methods store CO₂ for a shorter period of time than machine-based methods. However, they are more efficient and scalable. Machine-based methods such as DAC are still in the early stages of development, have low CO₂ storage volumes, and have extremely high development and construction costs.

[Tree.ly](https://tree.ly/blog/why-treely) focuses on forest projects. As trees grow, they convert CO₂ to biomass through photosynthesis. A mature tree can absorb up to 22 kilograms of carbon from the atmosphere per year and at the same time producing enough oxygen for four people per day. Furthermore, [CO₂ projects with forest owners](https://tree.ly/blog/what-does-treely-do) have additional environmental benefits, such as purifying drinking water and protecting the livelihoods of a wide range of animal and plant species.

[IPCC - Why exactly 1.5 °C?](https://www.ipcc.ch/sr15/)

 What are carbon removals and why do we need them to reach our climate goals?

News-from-Treely-EN@2x.png

Neuigkeiten von Tree.ly

## We are on the Austrian Forestry Days in Taggenbrunn from 9th to 10th of June 2022!

Tree.ly has been invited to this year's forestry days and the subsequent excursion of [Eckart Senitza](https://www.linkedin.com/in/senitza-eckart-010a9878/), founder of [ProSilva](https://www.prosilva.org/). The excursion will take place on Friday 10th of June in the forests of [Gut Poitschach](http://www.senitza.at/).

[Alexander](mailto:alexander@tree.ly) would be happy to meet you in person on 9th or 10th of June to introduce and share further details on Tree.ly with you.

If you spontaneously decide to participate, please [contact Alexander directly](mailto:alexander@tree.ly).

### Other news from Tree.ly

With [Roman](https://www.linkedin.com/in/roman-breitfuss-schiffer-594518175/) and [Alexander](https://www.linkedin.com/in/alexandervilsmeier/), we have two new employees on board and continue with reinforcement to further develop our platform.

Two short films were shot with existing project partners - have fun!

Our CEO Jodok Batlogg had a longer interview with [futurezone.at](https://futurezone.at/start-ups/start-up-treely-co2-handel-wald-klimawandel-emissionen-co2-zertifikate/402011454)

### What does Tree.ly do?

Tree.ly is your **regional partner** that provides you with a transparent and **measurable climate protection value of your local forest**.

With **Tree.ly's digital platform**, forest owners have relevant key figures of their forest available at all times.

Currently, we are still focused on inventoried forest areas of more than 500 ha, but **this technological solution will be applicable to smallest areas** and subsequently scaled to the whole of Europe.

### How does a forest project with Tree.ly work?

In a first step, the scope and type of the project is determined with the forest owner in a feasibility study.

The following types are possible with the Tree.ly methodology:
  - [CO₂ conservation](https://tree.ly/glossary#carbon-conservation) (commitment of 30 years)
  - [CO₂ removal](https://tree.ly/glossary#carbon-removal) (commitment of 1 – 30 years)
  - Or a combination of the two

After the conclusion out of the feasibility study, a contract is signed between the forest owner and Tree.ly

In a further step, Tree.ly submits the project to TÜV Nord, which validates it and subsequently verifies and issues the tCO₂ certificates annually. There are **no costs** for the forest owner in this state of the project.

Tree.ly manages the certificate register and takes care of the sales of the certificates at the best possible price.

After Tree.ly has received the payment, the amount is immediately forwarded to the forest owner - the money transferred **must be invested in the management of the forest** (forestry management measures, forest personnel costs, etc.).

News from Tree.ly

IMG_0281.jpg

Kaum Kompensation durch Waldschutz?

## OR: The chance for high-quality, regional projects!

The world's greatest challenge is climate change with its threatening consequences. **Central to this is the reduction and removal of carbon**. By 2040, humanity will have to dramatically reduce carbon, and lower what unfortunately still remains naturally (forests) or technically (minerals), i.e. store it in other forms. Natural carbon uptake by forests reduces the rate at which carbon accumulates in the atmosphere, thus reducing the rate at which climate change occurs. The urgency is high and a long-term solution to the problem is ecologically and also socially important. 

Currently, the media ([Der Spiegel](https://www.spiegel.de/wissenschaft/co2-zertifikate-aus-waldschutzprojekten-laut-einer-studie-meist-wirkungslos-a-b2384b3a-ddfe-4910-bfbf-b1262a04bb7e), [ORF](https://science.orf.at/stories/3220924/)) report that the contribution of forests is sometimes massively overestimated and that 70% of the certificates (mainly certified by VERRA) do not provide the promised compensation (source: Der Spiegel).

- Of the 89 million carbon credits likely generated by the REDD+ sites studied in 2020, the study found that about 68 percent - more than 60 million allowances - came from projects that did little or nothing to reduce deforestation.
- The remaining 32 percent of carbon credits also came from projects that did not conserve forest to the extent claimed, according to the study.
- The researchers estimate that of the 89 million credits from these offset programs, 5.4 million - six percent - would be associated with additional carbon reductions from preserved forests.

These are not news anymore. Similar findings were already made by "[The Guardian](https://www.theguardian.com/environment/2023/jan/18/revealed-forest-carbon-offsets-biggest-provider-worthless-verra-aoe)" in the spring. We also published our [criteria for high-quality projects](https://tree.ly/de/blog/quality-carbon-credits) as a response.

These scandals are detrimental to the entire global movement of expanding our natural sinks (forests). At the same time, they present a significant opportunity to get things right and shape new thought patterns.

### Credible Corporate Strategies

![Screenshot 2023-08-29 at 11.25.48.png](https://cdn.tree.ly/strapi/Screenshot_2023_08_29_at_11_25_48_5264b8fa78.png)

1. Transparent Reporting of All GHG Emissions: Scope 1, 2, and 3.
2. Emission Reduction Initiatives.
3. Taking Responsibility by Pricing Emissions and Supporting Climate Protection and Sustainability Projects.
4. Advocacy for Climate Action.

### Transition to the Contribution Model
In the new model, "taking responsibility" no longer involves merely purchasing inexpensive certificates for one ton of emissions. Instead, it entails supporting high-quality climate protection and sustainability projects through financial contributions. All of this is in **addition** to our reduction efforts.

### Climate Neutrality? Offsetting? - The Shift in Mindset

The articles mentioned at the beginning highlight the issues with the old mindset. The good news is that here at Tree.ly, we embrace the new mindset and are excited to embark on a journey with companies where the climate protection and biodiversity contribution of our local forests plays a significant role and is also financially recognized.

![Compensation-Alone-Not-Enough-White-EN.jpg](https://cdn.tree.ly/strapi/Compensation_Alone_Not_Enough_White_EN_f9c84a59c3.jpg)

![Compensation-Gap EN.jpg](https://cdn.tree.ly/strapi/Compensation_Gap_EN_1028f00fa9.jpg)

### Facts about European Forests

We have come to realize that there is insufficient awareness about facts concerning European forests, and that there is an urgent need for action in this regard. The scientific paper "[The role of forests in the EU climate policy: are we on the right track?](https://cbmjournal.biomedcentral.com/articles/10.1186/s13021-023-00234-0)" states in its summary:

"Regarding the trend, the latest EU greenhouse gas inventory for 2021 reports that the overall reported LULUCF net sink is 46 Mt CO₂/year weaker than the 2016-2018 average. All of these net losses occurred in forest land and the wood product sector, with their combined net sink decreasing by 48 Mt CO₂e between the 2016-2018 period and 2021. In contrast, other LULUCF categories reduced their aggregated net emissions by 2 Mt CO₂e/year during the same period.
This trend indicates that while net emissions in non-forest categories are gradually moving in the right direction – that is, reducing emissions – the sink in forests and HWP is rapidly moving in the opposite direction."

![Screenshot 2023-08-28 at 14.54.59.png](https://cdn.tree.ly/strapi/Screenshot_2023_08_28_at_14_54_59_0b7e6f92b6.png)
Quelle: [biomedcentral](https://cbmjournal.biomedcentral.com/articles/10.1186/s13021-023-00234-0)

European forests hold tremendous potential to counteract climate change. Let's support this effort with high-quality projects. 

To become a climate leader is to use these recommendations for implementing the contribution approach into your company’s climate strategy.

4 Steps to Become a Climate Change Leader

If you're interested in becoming a climate change leader,  read more.

Hardly any compensation through forest protection?

holding baby trees

Teil 2: Ein neuer Ansatz für den Klimaschutz 

# Current status: 
Right now, the policies that countries around the world have in place are expected to cause Earth’s temperature to rise about 2.7°C by 2100 compared to pre-industrial levels. The current [net-zero](https://tree.ly/glossary#net-zero) policies that 140 countries are following will only bring us to 2.0°C which is not meeting the goals of the [Paris Agreement](https://tree.ly/glossary#paris-agreement), aiming to go well below 2.0°C and ideally to 1.5°C. 

![climateactiontracker.png](https://cdn.tree.ly/strapi/climateactiontracker_fc78c3f53b.png)
Image from [climate action tracker](https://climateactiontracker.org/global/temperatures/).

The outcome of global warming depends on how effective and efficient countries implement policies to mitigate climate change. In order to ensure that countries and companies are making the impact needed we should rethink our current way of compensating emissions. We encourage a new approach that makes a real climate impact…the contribution model. 

# The successor to the compensation model: contributing to climate protection projects
Contributing to climate projects actively supports and participates in initiatives aimed at mitigating climate change. This involvement goes beyond the simple carbon [offsetting](https://tree.ly/glossary#offsetting) and involves engaging in projects that directly address the consequences of climate change.

## The old approach: Compensation
The compensation model uses the "Ton for Ton" thinking. Balancing out emissions through the purchase of carbon credits for a company's remaining annual [GHG emissions](https://tree.ly/glossary#greenhouse-gas). In this approach, the emphasis is on the physical quantity of emissions. The idea is to essentially achieve a net-zero company carbon footprint by offsetting the emissions produced that year. The benefits of this approach include a clear reference to a company's climate [footprint](https://tree.ly/glossary#carbon-footprint) and a clear CO₂ metric impact measurement. 

However, the pure focus regarding the CO₂ metrics does not allow the systemic transformation needed. The current model implements the focus on X tons of carbon a company emits. The company can then seek out carbon credits to reduce X amount of CO₂ they have emitted to reach “net zero” (race to the bottom). This cycle creates a lack of concern around climate impact and a prominent concern about being deemed “carbon neutral” through the purchase of carbon credits. Often optimizing the price of carbon credits at expense of quality with no link between climate damage costs of remaining emissions. Learn more about why the compensation model is not moving us forward [here](https://tree.ly/blog/compensation-model).

## The new approach: Contribution
Contribution follows a more holistic approach than the compensation model by measuring not only CO₂ emissions but also social and environmental aspects. Corporations allocate a budget towards long-term climate protection projects with the expectation of receiving a partial offset of emissions and the ability to publicize their climate contributions. Contribution holds high promise for the future of our planet, giving the flexibility to contribute towards projects that make a real impact rather than claiming false impact. So, how does this approach differ from the “Ton for Ton” approach?

**Money for ton:** Instead of looking for the cheapest credits to neutralize emissions, the contribution approach encourages companies to first define a CO₂-price for the remaining non-avoidable emissions. This then serves as the basis for financing high-quality – ideally transformative – climate protection projects outside the company's own value chain.  

**Collective effort:** The contribution approach is not about individual claims (“We’re climate neutral”). It’s about the idea of collectively steering climate change towards the global net-zero goal. Global climate protection is a systemic challenge which companies cannot escape. The contribution approach recognizes this and thus supports the systemic transformation needed. In terms of communication, a company cannot cover such a contribution with “climate neutrality” claims, but it certainly can by using an alternative “impact” or “contribution” claim, i.e. by communicating a measurable contribution to global climate protection and other sustainable development goals. Taken together, it can be said that the objective is a **global** one, and the perspective is **collective** and **systemic**.

A definition for the contribution approach that we like: 
The Contribution Claim approach enables companies and other organizations to align their activities with the goals of the Paris Agreement and to contribute responsibly to the achievement of the global net zero target. The first prerequisite for this is ambitious measures to avoid and reduce their own emissions. Non-avoidable residual emissions are assigned an internal CO₂ price. On this basis, high-quality - ideally transformative - climate protection measures are financed outside the company's own value chain.

Source: Stiftung Allianz für Entwicklung und Klima, [Grundprinzipien eines Contribution Claim-Ansatzes](https://allianz-entwicklung-klima.de/standards_studien/konzeptpapier-grundprinzipien-eines-contribution-claim-ansatzes/)

![Screenshot 2023-07-10 at 15.30.39.png](https://cdn.tree.ly/strapi/Screenshot_2023_07_10_at_15_30_39_0daab08b46.png)
The main differences between the compensation and contribution model
Source: [WWF](https://drive.google.com/file/d/1Ye99kYzbeFBwuLcz2cl7tw3DkJ9KjKSi/view)

## Contribute to Tree.ly projects
If choosing a project to invest in, it’s wise to pick forest and biodiversity conservation in the geographies in which you operate– it’s visible to your employees, customers, and community members. Tree.lys project portfolio offers high-quality projects to choose from. 100% of the payments are designated to the forest owners to promote sustainable forestry practices, biodiversity, and the regional economy. Each climate project is annually being visited and validated by TÜV AUSTRIA to guarantee a real climate impact. View some of our climate protection projects by visiting our [portfolio page](https://tree.ly/portfolio). 

### What now? Summary and outlook: 
- The current policies in place are not enough to meet the 1.5°C goal
- “Ton for Ton” is the old way of thinking; based on offsetting emissions which is heavily focused on the “race to the bottom” mindset and claiming to be carbon neutral 
- The contribution model follows a holistic approach where the focus is on optimizing climate impact of your sustainability investments 

In our next blog post of our four part mini series, we discuss the benefits of the contribution model for the climate and companies. 

To stay up to date on our mini series, Tree.ly news, and more sign up for our newsletter.




Part 2: A New Approach to Climate Protection

2022-05-04-Treely-PiaPiaPia-94.jpg

Teil 3: Die Vorteile eines Beitrags zu Klimaschutzprojekten

#So far
In our last two blog posts we discussed the flaws within the [compensation model](https://tree.ly/blog/compensation-model) and introduced a new type of approach “[the contribution model](https://tree.ly/blog/new-approach-climate)” 

Compensation often leads to…
- [Greenwashing](https://tree.ly/glossary#greenwashing) claims: leads to customer distrust 
- [Offsetting](https://tree.ly/glossary#offsetting) CO2 emissions with low quality credits: ineffective climate action 
- Unclear [carbon counting](https://tree.ly/glossary#carbon-accounting): inaccurate calculation of [greenhouse gasses](https://tree.ly/glossary#greenhouse-gas) 

In this post, we will explain the benefits of the contribution model and how this methodology offers solutions to solve these current problems and how it serves a greater impact towards our climate.

#Here are the benefits:
If you are considering using the contribution model to improve the state of our climate then here are a couple benefits to sway you out of the outdated compensation model. 

##Transparency
One of the greatest things you can do as a company is to be transparent, especially when it comes to carbon counting and the climate projects you contribute towards. Companies using the compensation model often end up miscounting emissions and then compensating the incorrect amount of emissions with projects that don't make any real impact - causing them to be at risk of greenwashing. 

Companies using the contribution model report their support to the climate protection project separately from their own value chain with avoidance and [reduction](https://tree.ly/glossary#carbon-reduction) plans set in place. Allowing companies to remain away from these accusations of greenwashing along with enhanced customer trust and real climate impact. 

##Putting the Environment First
If we can admit that we are facing a global problem and collectively put forth effort to help then real climate impact can be made. It’s important to emphasize the importance of avoidance and reduction practices, this should always come first (after a detailed and accurate GHG calculation). Climate contributions complement reduction/avoidance actions in order to accelerate efforts of accomplishing the United Nations goal to be within 1.5°C global warming. 

Contributing has countless benefits for our climate, there are several kinds of projects your company can choose to invest in. Depending on what kind of project you decide to contribute towards determines the climate impact it will serve. For example, forest projects sequester carbon to mitigate climate change, preserve biodiversity, prevent flooding and land degradation, conserve soil, all while being a place for recreation and leisure.

##Social Impacts
It is a crucial time to start implementing climate action plans to save the state of our planet. It’s especially important that we make systemic change in the way greenhouse gas emissions are currently being compensated for. The [United Nations](https://unstats.un.org/sdgs/report/2023/) has called for powerful action to reach the SDGs and deliver meaningful progress for the planet by 2030.

“Unless we act now, the 2030 Agenda will become an epitaph for a world that might have been”
**– António Guterres, Secretary-General, United Nations**

When more companies make it known that they are making a positive climate impact by contributing to high quality climate protection projects it influences other companies to do the same. Being educated about the state of our climate and how to take action will get us to a thriving and habitable planet in the future, creating awareness inside and outside of the company. 

#Tree.lys Benefits
With Tree.ly, your company is choosing to unlock the full potential of European forests, not only buying credits to get your company to “[Net Zero](https://tree.ly/glossary#net-zero)”. Contributing to Tree.ly’s forests means you create a significant and measurable climate impact, but again, it’s best to avoid and reduce emissions first. Tree.ly is aware of the constant greenwashing therefore we avoid this at all costs. The project methodology (SILVACONSULT® Forest Carbon Standard) is based on ISO 14064:2. The projects are then certified by TÜV and visited annually to ensure that real climate action is happening. 

#What now? Summary and Outlook
- Transparency leads to enhanced customer trust while remaining away from greenwashing accusations 
- Instead of focussing only on getting your company to “[carbon neutral](https://tree.ly/glossary#carbon-neutral)” admit that we’re dealing with a global problem. 
- Becoming educated yourself is the first step – once you are aware of the problem you can encourage others to become aware of the global problems we face and then take action 

In the final part of our miniseries we discuss how your company can implement this contribution approach. Focusing on the four pillars to get your company to a climate industry leader: reporting, reduction, taking financial responsibility, advocacy and engagement. 


Part 3: The Benefits of the Contribution Model

2022-05-04_forest

Der CO₂-Fußabdruck - Berechnung und Bedeutung 

## The CO₂ footprint

In times of climate change, the[ CO₂-footprint](https://tree.ly/glossary#carbon-footprint) is a much discussed topic. The amount of [greenhouse gases](https://tree.ly/glossary#greenhouse-gas) we produce has a direct impact on global warming (1). Therefore, it is important to become aware of the impact that our own lifestyle and the activity of companies contribute to the emission of greenhouse gases.

### What is the CO₂ footprint?

The CO₂ footprint describes the amount of greenhouse gas emissions caused by certain activities of a product, a person, a company or an entire nation (2). The focus is on greenhouse gas emissions of carbon dioxide, but other greenhouse gases such as methane and nitrous oxide are also important (6). [Direct](https://tree.ly/glossary#direct-emissions) and [indirect emissions](https://tree.ly/glossary#indirect-emissions) are included in the CO₂ footprint (2). A direct emission describes the release of greenhouse gases through the final consumption of goods, such as the fuel consumption of the chainsaw (3). Indirect emissions, on the other hand, describe all emissions that occur for the production of a good, for example, the total emissions that occurred to produce the chainsaw (3).

**The CO₂ footprint is therefor the result of the [CO₂ balance](https://tree.ly/glossary#carbon-accounting), in which the total emissions of an activity are converted into [carbon dioxide equivalents](https://tree.ly/glossary#co2e) (4).**

### Where, why and for whom is the CO₂ footprint calculated? 

The CO₂ footprint calculation can be performed on an individual level as well as on a corporate and national level. Likewise, a calculation for a single product is possible. For individuals, there are online calculators such as the[ Global Footprint Network](https://www.footprintcalculator.org/home/en) that can be used to calculate your own CO₂ footprint.

![CO2_Footprint_Austria@2x.jpg](https://cdn.tree.ly/strapi/CO_2_Footprint_Austria_2x_b764d6f1de.jpg)

When calculating the CO₂ footprint of companies, it is important to ensure that this is done on the basis of Scopes [1](https://tree.ly/glossary#scope-1), [2](https://tree.ly/glossary#scope-2) and [3](https://tree.ly/glossary#scope-3). Green Tech Valley Cluster GmbH has compiled a very clear [collection](https://www.greentech.at/wp-content/uploads/2023/01/Liste_CO2_Tool-Kit_230126.pdf) of various calculators on its website.


In general, it can be said about the CO₂ footprint calculation that there is no obligation to apply a uniform calculation method. This affects the comparability of the results. Nevertheless, the calculations help to understand the extent of our impact on climate change in order to ultimately reduce it by avoiding, [reducing](https://tree.ly/glossary#emission-reduction) and [offsetting](https://tree.ly/glossary#offsetting) emissions. 

### Forest climate protection projects and the CO₂ footprint

Sustainable forestry helps to reduce the CO₂ footprint of our society and thus makes an important contribution to climate protection. On the one hand, forest climate protection projects with Tree.ly preserve and increase the regional CO₂ reservoir forest, while on the other hand ensuring the possibility of sustainable forestry. Thus, by investing in regional forest climate protection projects and purchasing CO₂ credits, companies can support the CO₂ storage forest and the continued existence of a stable and resilient forest, with all its ecosystem services. If companies are aware of their CO₂ footprint, they can initiate appropriate measures and reductions and therefore contribute to climate protection. 

Together, we want to value the ecosystem services of the native forest and thus guarantee their continued existence for future generations. 

For more information visit our [forest owner](https://tree.ly) or [companies](https://tree.ly/for-companies) page.






Sources:
1. Eric Wolff et. All: [Climate Change: Evidence & Causes 2020](https://royalsociety.org/~/media/royal_society_content/policy/projects/climate-evidence-causes/climate-change-evidence-causes.pdf)
2. Andrew John: [What is a Carbon Footprint? An overview of definitions and methodologies](http://www.vegetableclimate.com/wp-content/uploads/2013/11/Discussion-Paper-1_What-is-a-carbon-footprint.pdf)
3. Statistisches Bundesamt: [Umweltökonomische Gesamtrechnungen - Direkte und indirekte Energieflüsse und CO2-Emisisonen](https://www.destatis.de/DE/Themen/Gesellschaft-Umwelt/Umwelt/UGR/energiefluesse-emissionen/Publikationen/Downloads/direkte-und-indirekte-energiefluesse-emissionen-pdf-5859006.pdf?__blob=publicationFile)
4. Green Tech Valley Cluster GmbH: [CO₂ Tool-Kit für Klimapioniere](https://www.greentech.at/tools/co2-tool-kit-fuer-klimapioniere/)
5. Statista: [CO₂-Ausstoß pro Kopf weltweit nach Ländern | Statista](https://de.statista.com/statistik/daten/studie/167877/umfrage/co-emissionen-nach-laendern-je-einwohner/) 
6. Selin, Noelle Eckley. "carbon footprint". Encyclopedia Britannica, 14 Sep. 2022, [Carbon footprint | Definition, Examples, Calculation, Effects, & Facts | Britannica](https://www.britannica.com/science/carbon-footprint). Accessed 8 March 2023.

The CO₂ Footprint - calculation and meaning

2022-05-04_Drone_shot

Umgang mit CO₂-Emissionen und freiwilligen Klimaschutzleistungen

# CO₂ Compensation by Companies

In a world increasingly affected by climate change and pollution, [CO₂ compensation](https://tree.ly/glossary#carbon-compensation) is becoming more and more important. In this blog post, we will take a closer look at the concept of CO₂ compensation and explain how companies can contribute to it. 

## Green Deal of the European Union
The [European Union's Green Deal](https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal_en) aims to limit emissions of climate-damaging [greenhouse gases](https://tree.ly/glossary#greenhouse-gas) within the EU to [net zero](https://tree.ly/glossary#net-zero) by 2050. Emissions need to be cut by more than half by 2030 compared with 1990. Companies have to record their emissions according to internationally recognized standards and reduce and avoid them step by step along an individual roadmap. Unavoidable emissions can be offset by means of compensation. A guideline for companies for sensible offsetting in accordance with the internationally applicable regulations is provided by the guideline, which was developed by atmosfair gGmbH and expanded by Tree.ly GmbH.

![Page_8_EN@4x.jpg](https://cdn.tree.ly/strapi/Page_8_EN_4x_bf12692e05.jpg)

The original idea of CO₂ compensation goes back to the [Kyoto Protocol](https://tree.ly/glossary#kyoto-protocol). Only industrialised countries were given legally binding obligations to limit and reduce GHG emissions.
To enable them to achieve their reduction targets, mechanisms were set up in the Kyoto Protocol. 

Companies can contribute to climate protection by means of CO₂ compensation.
The question now is where and how these greenhouse gas emissions can be most sensibly offset.

# Download our guide to find out how sensible CO₂ offsetting works for companies. 

How does the correct handling of CO₂ emissions work ?

What solutions are available to companies?

Thank you for your interest in our E-book on CO₂ compensation by companies. If you have any further questions, please feel free to contact us directly.

Dealing with CO₂ emissions and voluntary climate protection services

2022-05-04-Treely-DrohneStango-PiaPiaPia-5.jpg

Die Diskussion der Transparenz: Wie funktioniert eine ehrliche CO₂-Kompensation mit europäischen Wäldern?

Forest owners play an important role in the fight against climate change by implementing projects that help preserve forests. Tree.ly supports European forestry projects and connects them with nearby CO₂ buyers to ensure that the credits actually help reduce emissions and protect our planet.

Recent reports about carbon credits from tropical and subtropical forests ([The Guardian](https://www.theguardian.com/environment/2023/jan/18/revealed-forest-carbon-offsets-biggest-provider-worthless-verra-aoe) and [DIE ZEIT](https://www.zeit.de/2023/04/co2-zertifikate-betrug-emissionshandel-klimaschutz/komplettansicht) published news about Verra credits) cast a poor light on CO₂ credits from forests. However, one must clearly distinguish European conditions from those in tropical and subtropical forests.

It is important to understand how forests can be used to provide transparent and high-quality [CO₂ offsets](https://tree.ly/glossary#carbon-compensation). Forest projects implemented using our methodology ensure the legitimacy of the credits through the following:

###### **1. Digital Platform**
Our platform provides accurate data collection, project forest baseline modeling, a detailed project register, a digital twin, and enables annual monitoring of projects.

###### **2. Third Party Verification**
Validation and verification of our projects is performed by an external accredited testing body, TÜV Austria or TÜV Nord in Germany, in accordance with ISO 14064-2.

###### **3. Risk Buffer**
Secure investments through risk buffers: 10 % of all certificates are set aside as a buffer in case of unexpected events and returned to forest owners when they are not needed.

Our statement on the above main criticisms is as follows:

_"94 % of projects have not reduced [deforestation](https://tree.ly/glossary#deforestration)":_ Projects are continuously monitored and verified by third parties. Certificates are issued only after the fact.

_"The threat to forests has been overestimated by 400 %":_ forestry projects must meet a certain [baseline](https://tree.ly/glossary#baseline-and-credit-systems). If a forest has a stand volume of 270 m³/ha and the lower baseline is 250 m³/ha, we only take into account the 20 m³/ha above the lower limit.

_"Companies such as ..., Shell, EasyJet, ... have bought for environmental reasons. ":_ Tree.ly believes in a world where we 1. avoid carbon, 2. reduce [emissions](https://tree.ly/glossary#emissions), and only 3. offset. For this reason, our certificates are only sold to companies that keep a carbon account and ideally already have a reduction plan in place.

_"Human Rights Issues":_ We only support European projects and link them to nearby buyers of carbon credits.

In the ORF interview, Jodok Batlogg, Founder & CEO Tree.ly, talks about how to recognize high-quality CO₂ credits and why regional distribution is the key to sustainable climate protection.

Transparent CO₂ compensation with Forest & Tree.ly

The debate on transparency: How does honest CO₂ compensation work for European forests?

Martin_Bertsch_Measuring_Tree.jpg

Stille Helden des Waldes: Ergebnisse der Bundeswaldinventur 2016–2021

**The results of the last National Forest Inventory in Austria are phenomenal! The efforts of the forestry industry are obvious and should be honoured.**

- Forest area increases to 47 %
- More and more deciduous wood in forests
- The wood stock is increasing, less harvesting than growing 
- More dead wood remains in the forest

In recent times, forests and forestry have been the subject of public discourses. During the hot periods of recent years, some forests have lost vitality and there has been an increase of media coverarge about calamities such as bark beetle invasions, forest fires and storm damage. Therefore, criticism of forestry has become louder and louder. But it is very important to differ forest regions and news about calamities, as most of the forests have a positive development.

At the same time, the performance of forestry remains unnoticed and is taken for granted. Most of the work is done behind the scenes, and the National Forest Inventory of Austria shows for example that foresters work every day to create and maintain a stock-rich, resilient and diverse forest; they act as silent heroes in the forest.

The National Forest Inventory shows that forest area in Austria is steadily increasing. There are 4.02 million hectares are covered with forests, that is 47 percent of the total state area and every day 6 hectares are added. With that Austria has one of the highest percentages of forest cover in Europe. 

The composition of the forests is also changing. Monoculture coniferous stands are continuously being converted into deciduous and mixed stands. Over the last decade, six percent of pure coniferous stands have been transformed into mixed deciduous forests. In addition, deciduous pure stands have increased by eight percent. This development is by no means natural. Conversion of forests is explicitly driven by foresters. If no actions were taken, the existing coniferous areas would be rejuvenated, and the entry of hardwoods would only be gradual. With selective use, light is created in the forest stand and the growth of mixed tree species is enabled and accelerated. 

Another reason to celebrate is the current peak of the timber stock. The Austrian Forest contains 1.1 billion cubic meters of wood and the stock is increasing, 26 million cubic meters are added every year and only 89 % of it is used annually. It can be said that one cubic meter of wood grows every second in Austria. 

At the same time, the proportion of deadwood has increased by 18 % according to the National Forest Inventory. Accordingly, old trees are more often left in the stand and transferred to the natural decay phase. This creates additional habitat for numerous species of animals, plants and fungi and benefit the forest's interior climate. This provides the forest with stability,resilience and diversity. 

The National Forest Inventory shows that forestry strives for a natural and ecologically valuable forest, expands the forest in Austria and at the same time provides the naturally renewable raw material wood for the processes in the wood value chain. This service of foresters to the forest itself and to society deserves greater attention. 

All results of the Austrian National Forest Inventory can be viewed on the website of the [Bundesforschungszentrums für Wald](https://geo.bfw.ac.at/oewi/#/).

**Read more:**
Check out [how climate change affects European forests](https://tree.ly/blog/climate-change-european-forests).
And learn more about [Tree.ly](https://tree.ly/blog/what-does-treely-do).

- [Treely for Forest Owner sign up](https://tree.ly/sign-up/step-1)
- [Treely for Carbon Buyers](https://tree.ly/for-companies)

Silent Heroes: Results of the last Austrian Forest Inventory 2016-2021

WalterAmannandLeanderlookingattreesFBGJagdberg.webp

Ein Gespräch mit Walter Amann von der FBG Jagdberg  und Jodok Batlogg

**The following text is the transcript of an interview in which Christian Lampert of WISTO Vor(w)ort with Walter Amann, managing director of the Forstbetriebsgemeinschaft Jagdberg and Tree.ly founder Jodok Batlogg, talk about their goals and plans for the future, as well as the motivations behind Tree.ly's ability to convince more and more forest owners to use the full potential of their forests.**

_Christian Lampert:_ Hello and welcome to a new edition of our Wisto Foreword Podcast format. My name is Christian Lampert and I'm pleased to have two exciting interviewees in the Postgarage. Namely, Jodok Batlogg, the founder of Tree.ly and Walter Amann from the Forstgemeinschaft Jagdberg.
Good morning. Thank you very much for the time. We're going to jump right in. Jodok, question for you, what does Tree.ly actually do? How can you describe that in simple terms to someone who's never heard of it?

_Jodok Batlogg:_ We help ensure that our forests are preserved for the future, that the CO₂ storage that takes place there is maintained and expanded. So far, timber harvesting is the only way to make money from the forest, which is of course a sad thing in the sign of climate change. Forest owners should also be compensated for other services they provide with their forest, that are, ecosystem services. For this, we need systems and tools that this value creation can take place. We are building a digital platform for this.

_Christian Lampert:_ That means it can be understood in a way that you can assess or calculate the value and performance of a forest?

_Jodok Batlogg:_ Forest owners develop their forest better, better means that more CO₂ is stored or not released. The forest owner:in gets money if he/she manages the forest accordingly. We create an additional flow of money into the forest. 
 
_Christian Lampert:_ Where does this money flow come from?

_Jodok Batlogg:_ From companies that voluntarily neutralise their CO₂ balance. That is, companies usually try to avoid emissions, reduce existing emissions, and what's left are those that are unavoidable. These unavoidable [emissions](https://tree.ly/glossary#emissions) can be offset. There are various options for this on the voluntary CO₂ market. These include, for example, cooking stoves in Africa, methane facilities in India, hydropower in China, but there are also local CO₂ projects and ground storage. We are developing a system to measure CO₂ storage in forests. Certificates can be generated for this storage. 

_Christian Lampert:_ That means it's certainly exciting for companies, but I think also for private individuals. Whereas it's actually about making a contribution in the direction of CO₂ avoidance in regional forestry.

_Jodok Batlogg:_ That is our vision, that every private forest owner who manages his forest appropriately is rewarded. At the moment, unfortunately, we can only serve larger forest owners with an area of over 500 hectares with our methodology. Later, when our digital platform is ready, we expect to be able to cover small private forest owners over the next year. We are currently talking about CO₂, but the forest performs many other services that will need to be evaluated and measured in the future.

_Christian Lampert:_ We have now heard a lot in the direction of sustainability, but also about regional value creation. Sustainability, emissions avoidance and CO₂ storage are on everyone's lips. What was one of the main motivations to start this project or what is behind it? How did you come up with the idea of doing something like this?

_Jodok Batlogg:_ I've done quite a few things in my life. The last one was an international technology company based in San Francisco. It used investor money to create new technologies for industrial data. I was thinking in September 2020, in the context of this whole Corona lockdown, it's not good going slow or going in the wrong direction with business. It can't go on like this, we have to go in a different direction. This was a breakpoint where I decided, I want to be in climate technology. I want to combine my knowledge around technology, team building and team leadership. Then I started thinking about the field. Oceans as well as permafrost soils or rainforests are not very present in Europe, but our native forests make a huge contribution. With that I realised, I want to do something with the forest, with technology and people. I started on a white sheet of paper and thought about what to do. That was totally scary because I only had two calendar items that day. A talk at the Rotary Club and oral hygiene. Those were my appointments for the whole year. With the plan to do something for the forests and save the forests, that's how it started.
 
_Christian Lampert:_ It's an exciting start, but how did you get all your knowledge? How can you think of something like that, someone like you who has done a lot, how do you start something like that?

_Jodok Batlogg:_ Fortunately, I have quite a large network. So I shimmied from person to person and got to know people from the surrounding area. In the Vorarlberg Forest Association, for example, I got to know Walter Amann. As a forest expert, he knows a lot about the forest, and as a forester, he understands the needs of the forest. There are many experts, we have met many and talked to many. That's great because it's complementary knowledge. Meanwhile, I was able to greatly expand my knowledge of the forest. I am a nature person, but I also have skills in this sector, which is underrepresented. In return, I'm not connected to a lot of interest groups, which shows that you can be much more efficient on the road with this start-up mindset. Can move things and when young foresters and technologies meet, magical things happen, it feels like.
 
_Christian Lampert:_ Not only magical things probably happen, but there are quite a few challenges to solve. What is the path? What problems did you guys face in the beginning or what were the biggest challenges to get this off the ground?

_Jodok Batlogg:_ We still face big problems, we don't know if it will finally work, but we are trying. That's a bit of the definition of entrepreneurship for me, that you see opportunities and you try to take advantage of the opportunities, regardless of what resources are available. You believe in something, I'm all alone, and think to myself, now we're going in the right direction. I'll find people to come along with me and think it's a good idea too. The big difficulty is that all this regulatory stuff is not developed yet. The EU laws are just developing, you don't know exactly what direction it's going in yet. We often work with public agencies, which often have difficulties when there is no legal basis yet. The transition from voluntary to legally bound climate protection. Still, there are quite a few opportunities for a start-up to move quickly. The risks in summary: Regulatory issues, also the whole issue of figuring out what is right, what works at all with the new crises of our time. As a result, the willingness to pay for climate protection has taken a bit of a back seat.
 
_Christian Lampert:_ You have also participated in the Innovation Call of the state of Vorarlberg, where completely new innovative ideas are sought or also awarded. To what extent did it help you or your company Tree.ly, how did it help you?  Are these relevant parameters for you to participate in such things?


_Jodok Batlogg:_ Yes, that has been extremely important, without that impetus at the beginning, we would have had greater difficulties getting started. We are defining a new way of how this company is financed and how it grows. There are advisory boards, board of directors that are trying to steer this company. What the experience and previous companies bring was that I really didn't want to do that anymore. But rather a company that has healthy growth, that is of course profitable, and of course promotes sustainable development. Which is also people-centric. All these financing possibilities, how such a company is built up, are different. This initial spark has been helped a lot by the Innovation Call. But other partners such as the Chamber of Commerce and the “Austria Wirtschafts Service”, which provide funding in this green preseed area, have also helped us massively to get on our feet.

_Christian Lampert:_ Exciting approach and exciting how it is starting.
We have Walter Amann with us as our second interviewee. Walter, you are the managing director of the Forstbetriebsgemeinschaft Jagdberg. What does the Forstbetriebsgemeinschaft actually do and what are your tasks? 

_Walter Amann:_ The Forstbetriebsgemeinschaft is now an association of 12 forest owners. We consist of six communities and six agricultural communities. It is the first forest management association that exists in Vorarlberg, the FBG Jagdberg started in 2001. The areas are located in the Walgau, south side, but in the meantime we have also expanded towards Brandnertal. We also serve the community of Bürserberg. What does a forestry company do, what does a forester do? We try to manage the forests that are entrusted to us, but of course also to maintain them. As should be known, the forest has a lot of functions to fulfill. It is not only about harvesting the wood and trying to sell it as lucratively as possible. We have many other extensive tasks to fulfill.

_Christian Lampert:_ In the meantime, the sustainability issue, global warming, the whole range of topics, is very much discussed.what demands are made on the forest nowadays? What is its benefit and how can man support it?

_Walter Amann:_ It is certainly a very exciting time that is accompanying us at the moment. On the subject of climate change, especially in the forest, we have a major challenge. As previously stated, the forest fulfills many functions. Especially in Vorarlberg, it is not only the utility and recreational function, but also the protective function such as air pollution control, protection against erosion, avalanches, etc.. These functions must also be fulfilled in the future. We are all aware of how fast climate change is happening. We know how fast average temperatures change and the forest is an inert instrument in this respect. Because we know ourselves, a tree becomes 100 to 300 years old and is now confronted with change in its lifetime. I always have a little example: a tree cannot migrate compared to animals. If an animal gets too cold or too warm, it can change its location. It is the same with humans. But the tree stands at its location and has to cope with this situation and that is a challenge for the forest. Not for the forest really, but for us because we depend on the forest, the forest doesn't need us, we need it. At some point, the forest would naturally adapt to these new challenges, different temperatures and precipitation situations, etc. However, this takes many decades and during this time the forest then cannot fulfill the function we expect from it. Now we are challenged to maintain and shape this forest so that it can fulfill its functions despite climate change. We promote tree species that can better cope with the expected and already existing situations. The tree species that are already on this frontier now will undergo some transformation. We hope that we make the right decisions so that we all still have the opportunity to experience the forest.
 
_Christian Lampert:_ So we're already hearing, the resources in the forest have very many functions or very many applications. We've already heard from Jodok, with Tree.ly they want to make the whole thing attractive for forest owners as well. Also to keep the forest fresh and young, so to speak, and also to make it operational. How is that from your point of view from a forest management community? How do you benefit from this project, from the cooperation, what does Tree.ly bring you?

_Walter Amann:_ This is a very exciting approach that Jodok Batlogg has developed with Tree.ly. I'm always up for innovation, and I think this is a very good way for forest owners to get additional funding. Forest conversion costs a lot of money and is partly done with tax money. Nevertheless, it is necessary to invest extremely much and maximally in the forest. An alternative to the forest in our situation is: avalanche barriers, concrete, etc. Of course we don't want that and of course it would cost X times more than a healthy forest. Now, this opportunity allows us to use the forest as a CO₂ reservoir in a certain way. The possibility of additional financial resources to lure, which are ultimately also invested in the forest. This gives us greater scope to be able to concern ourselves even more intensively with the care, future and development of forests -actually for our descendants. After all, this is necessary and important. Probably at some point the state, federal government or even the EU will have to react, they will realise that the forest is in a difficult situation. Tax resources will then be made available, for example through grants, but with the cooperation with Tree.ly, the support and money really comes from the business community. After all, this has contributed to and is still partly responsible for the fact that CO₂ pollution in the air is too high. We try to manage the forest so that the raw material wood can be produced. By providing the raw material, we can substitute other energy-intensive raw materials, and at the same time we provide a CO₂ store in the forest. It is the eierlegende Wollmilchsau that we need. On the one hand, we need the CO₂ reservoir to store CO₂ from the air. On the other hand, we also need the forest as a substituting factor in wood utilisation, by using wood more and as optimally as possible.

_Christian Lampert:_ You can actually already hear out, the forest is perhaps, even if it has this image, nothing inert or there is a lot of work, care and money behind it. Tree.ly is in that case another very good instrument, which can support you to provide also these necessary financial resources. From their experience, you are so to say pilot or part of the pilots at Tree.ly. What are your experiences, what can you already give to other forest owners in this respect and what are your advices?

_Walter Amann:_ Of course, we're still at the very beginning. At the moment, the certification phase has to run positively. First via TÜV Nord and then these credits and certifications will be sold on the market. We have not yet earned a single euro with Tree.ly, but we expect to receive money in 2023 and to be able to reinvest it in the forest. It would be great if this opportunity was also offered to small forest owners. Tree.ly is working to make it possible for small forest owners to participate as well. This is especially important because we have a lot of private forest and small structured forests in Vorarlberg. Many feel that the forest functions like a piggy bank, one that sits around and stands on its side, one that you don't touch. The additional source of income motivates forest owners to be involved with the forest. It's not that you can get extremely rich, but it's definitely possible to farm. This management, as we have it in Vorarlberg in particular, is in my opinion very exemplary for other countries. We are very small-scale, extremely close to nature, and we can prove this on the basis of various studies. Our type of forest management should actually have been lived in Vorarlberg for decades, centuries. It is very positive that we not only produce wood, but can also prove very good references from the biodiversity side in an ecological way.

_Christian Lampert:_ Thank you Walter for the exciting insight, really important how this is to the view of the forest enterprise and forest owner. Jodok vlt. briefly back to you for the conclusion for our podcast. You have your location in the Postgarage in Dornbirn, which is also a kind of Innovation Hub that we have in Vorarlberg. How important is it for you to have this environment or to be in Vorarlberg in general? Is this the right location decision to be able to implement something like this?

_Jodok Batlogg:_ For me, the decision was made several years ago. I want to be able to get to work on foot or by bike and still experience mutual exchange, social contacts and working together. With various companies, the campus area is always a magnet, an exciting point where many things happen.

_Christian Lampert:_ Something I haven't asked yet, but which probably interests many of our listeners, is how many people actually work at Tree.ly? How many heads are involved in developing it?

_Jodok Batlogg:_ There are about eleven people in our company now. What's exciting is where people are at the moment, it's constantly changing. Lukas is currently in Andelsbuch in the Guten Stube, so he doesn't have to drive to Dornbirn every day. Tobias is in Valencia right now because the fall is a bit too humid for him. Then we have Marie, who is in Tarifa right now and will go back to Northern Germany later. Matthias is in Boston. Isa is getting her kids used to the new rhythm at school right now and is working from home a lot. Stefanie, Fiona and Alexander are in Dornbirn and not to forget Roman, because he is based in Carinthia. So everyone can work with us, no matter where he/she is and how he/she travels. That's super fun, because people are in all kinds of places and we still meet somewhere together at regular intervals.

_Christian Lampert:_ That sounds like a very broad, internationally positioned young start-up actually with headquarters in Vorarlberg. Where is the journey going, what are your plans, maybe even dreams, where should Tree.ly be in a few years? 

_Jodok Batlogg:_ That's exactly what I enjoy, working with a young, old, totally diverse group. For people who want to make a difference, rallying people like that around me and spending time with them is just insanely fun. The question that drives us is, what does a world that works for everyone look like? That's actually the question where I think everyone can start. I'm looking at, what does my world that I live in look like that works for everyone. How do I conduct myself and how do we build our business? Then also very concretely, what do I do myself so that this vision is also visible. We ask ourselves this question again and again, and when we work together in a setting like this and this question comes up again in between, you always meet more people who think this way. That's totally fun to be a part of such a new upcoming community, it's like a secret handshake of people being in a club.

_Christian Lampert:_ That's perfect, that's the best closing we can have here. I say, thank you very much for the interview, thank you very much for the exciting insights. All the best and good luck. We are looking forward to hearing from you and your project in the coming years.

Special thanks to WISTO for the interview.

You can just listen to the [podcast](https://open.spotify.com/episode/4SzcicKQA79ePfRiOcyQmG) or read the [article](https://www.wisto.at/wp-content/uploads/2022/10/VN_221015_Regionaler-Klimaschutz-mit-digitalem-Support.pdf).

Read more: Check out [how climate change affects European forests](https://tre
e.ly/blog/climate-change-european-forests). And learn more about Tree.ly [here.](https://tree.ly/blog/what-does-treely-do)

* [Treely for Forest Owner sign up](https://tree.ly/sign-up/step-1)
* [Treely for Carbon Buyers](https://tree.ly/for-companies)






A conversation with Walter Amann from the FBG Jagdberg and Jodok Batlogg

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Teil 1: Warum uns das derzeitige Kompensationsmodell im Stich lässt

#Cranking up the Heat

More than ten millions acres of land have been burned in [Canada from recent wildfires](https://www.washingtonpost.com/weather/2023/06/15/canada-wildfires-smoke-forecast-united-states/)  
which even United States residents felt first hand. As the global temperatures rise and climate change intensifies droughts, reduces mountain top snow, increases lightning, the longer and angrier these wildfires become. A direct cause of our warming climate is from the [greenhouse gasses](https://tree.ly/glossary#greenhouse-gas) trapped in our atmosphere. 

The [Paris Agreement](https://unfccc.int/process-and-meetings/the-paris-agreement) states how we can slow global warming to 1.5 degrees and remove the amount of man-made greenhouse gasses. However, the lack of monitoring, accounting, and reporting of these greenhouse gasses leads to an unclear path of action. When we take responsibility for these emissions the right way (not just being carbon neutral) we can make a real contribution to protecting our planet, but the first step is learning why "Carbon Neutral” is not making the climate impact needed. 

#Why Compensation Only Is Not Moving Us Forwards
In 1997, the [Kyoto Protocol](https://unfccc.int/kyoto_protocol#:~:text=In%20short%2C%20the%20Kyoto%20Protocol,accordance%20with%20agreed%20individual%20targets) was introduced to cut greenhouse gas emissions and this is where the idea of offsetting through compensation began. The Kyoto Protocol raised concern of how much emissions were being released into our atmosphere, but it implemented a ''Ton for Ton'' mindset for companies, which isn't aligning with the sustainability goals of the Paris Agreement. If we are able to shift from this current thinking of compensating to supporting climate projects that have real impact then we can reach the full potential of climate action. 

#The Track to “Carbon Neutral” Isn't Enough 
The problem with Carbon Neutrality is that this very “neutrality” is hard to define, measure, and prove. This causes delays in climate action and emissions to a truthful “Carbon Neutral” through compensation.  

##Greenwashing Claims
In the race to [“Net Zero”](https://tree.ly/glossary#net-zero) it was more important to claim being Carbon Neutral – turning compensation costs into a PR win. Companies that already describe themselves or their products and services as climate-neutral are increasingly being accused of greenwashing. Greenwashing is the act of companies claiming positive environmental impact on products and/or services, but oftentimes these are empty claims without any credible proof of environmental responsibility. This tactic creates a false impression of sustainability without any substantial commitment to eco-friendly practices. Actions like this are misleading to the companies consumers and are turning back on companies and organizations as they face accusations of “greenwashing” causing customer distrust (eg. [FIFA in 2022](https://www.techtarget.com/sustainability/feature/Examples-of-greenwashing-claims)). The EU is in the process of setting laws to restrict companies from making green claims. The objective of this proposal is to protect customers from greenwashing, establish a level playing field relating to environmental performance of products, making green claims reliable, and enabling consumers to make informed purchasing decisions. 

##Viewing Carbon Credits as Commodities  
A result of the Kyoto Agreement is that instead of making real reductions it was argued that it didn't matter where in the world these emissions were being reduced since everyone emits into the same atmosphere. **When companies “outsource” their climate action and don’t take responsibility, but just buy the cheapest credits available - and suppliers also create vast amounts of credits (so they can provide these low prices) - credits can be viewed as commodities (“Race to the bottom”).**

What these companies should ask themselves before offsetting emissions: How long will the carbon be sequestered for in this particular project? Does this project enhance [biodiversity](https://tree.ly/glossary#biodiversity)? Did the credits already “happen”, or is the [sequestration](https://tree.ly/glossary#carbon-sequestration) happening in future? So, these credits all come with fluctuating prices and levels of quality and climate action. Yet, almost all credits can be accounted for as eligible even if the credit's validity isn't clear. Creating a lack of concern around the quality of the credits. 

##Carbon Counting is Unclear 
Being “Carbon Neutral” is a claim that many companies like to use. Increased labels claiming neutrality on the tags of the clothes we buy or the labels of our food at the supermarket. How do these companies know if their products really are carbon neutral and how do they determine this number to compensate for? 

Calculating a [carbon footprint](https://tree.ly/glossary#carbon-footprint) is a highly intricate and often challenging task, especially when it comes to evaluating the environmental impact of various products. Factors such as production methods, transportation, and geographical origin all play a role in determining the overall carbon emissions associated with a product. However, it's important to recognize that these services typically focus on Scopes [1](https://tree.ly/glossary#scope-1) and [2](https://tree.ly/glossary#scope-2) of the [Greenhouse Gas Protocol](https://tree.ly/glossary#ghg-protocol), which primarily consider emissions generated within the company's premises. Other crucial elements like cultivation, fertilization, land use change, transportation, and upstream/downstream emissions (Scope [3](https://tree.ly/glossary#scope-3)) may not be accounted for in these calculations. When failing to account for total greenhouse gasses across all scopes it can result in compensating less emissions then a company is actually releasing into our atmosphere. 

#What Now? Summary and Outlook
- Making false claims about “Carbon Neutrality” often leads to customer distrust 
- Companies need to research where their credits are coming from and not just invest in the cheapest credits available - these credits can make insufficient environmental impact 
- Carbon counting is unclear and is leading to offsetting the incorrect amount of gasses a company is really emitting

In our next blog post we discuss the new approach of a contribution model. Contributing to climate action is focusing on the future, ensuring our planet will thrive  and making up for what has already been lost. The contribution model is concerned with advancing climate action with high-quality projects whereas compensation is focused on claiming climate impact like “carbon neutral”.




Part 1: Why the Current Compensation Model is Failing Us

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Wald-Klimaschutzprojekte mit Garantie: Die Rolle des TÜV Austria 

Director of Environmental Protection Business Unit

Dipl.-Ing. Thomas Fleischanderl 

Forests play a crucial role in climate protection efforts, acting as significant carbon sinks in both their timber stocks and soil. They make a substantial contribution to reducing CO₂ emissions. At Tree.ly, this valuable CO₂ sequestration performance is rewarded through regional forest climate protection projects. The funds generated enable forest owners to actively promote the transformation of their forests in the context of climate change.
The impacts of climate change can pose threats to forests, such as high levels of damaged wood or calamities that endanger natural or artificially induced forest rejuvenation. This underscores the importance of such projects to give forests long-term resilience and strengthen their role as climate protectors. Only through targeted measures and investments in climate protection can we protect the valuable ecosystems of our forests and preserve them for future generations.
To ensure transparency of the forest climate protection projects in the Tree.ly portfolio, the projects are audited and certified annually by TÜV Austria.

To ensure transparency of the forest climate protection projects in the Tree.ly portfolio, the projects are audited and certified annually by TÜV Austria.
For an insight into this process, the latest TÜV audit was documented with a camera. In this exciting round, Walter Amann from FBG Jagdberg, Christian Lutz & Jodok Batlogg from Tree.ly, and, of course, TÜV Austria take us along and share what happens during an audit. Join us as we explore the forest together:


Are you interested in a forest climate protection project? Feel free to contact us!

TÜV AUSTRIA #wedo verifies the CO₂ sink performance with Tree.ly

# TÜV Certification Process for CO₂ Sequestration Performance
## 1. Theoretical examination of the project area:
The TÜV certification process begins with the written part of the audit to ensure a successful project. Relevant information about the timber stock on the area, forest inventories, forest management plans, and action plans are collected. Subsequently, using the "SILVACONSULT® Forest Carbon Standard" methodology based on ISO 14064-2:2019, the CO₂ sequestration performance and a project scenario for the next 30 years are determined.

The audit process lays the foundation for a successful project implementation by identifying potential risks and supporting sustainable goal achievement.

## 2. Verification of the actual forest area:
During the further course of the audit, a thorough inspection of the existing stands covering all stages of forest development takes place. Different aspects are carefully considered, including tree species compositions, rejuvenation situations, and wildlife populations for the coming years, as well as potential risk potentials. The comprehensive evaluation allows for a comprehensive picture of the project area and identifies potential courses of action.

After successful TÜV certification, Tree.ly sells the climate protection contributions (CO₂ credits/VERs) to the forest owners. This gives forest owners the opportunity to generate additional income and manage their forests in a climate-friendly manner in the future. At the same time, environmentally conscious companies have the chance to purchase "Verified Emission Reductions" (VERs) and actively contribute to climate protection. This creates a mutually beneficial partnership that benefits both forests and the climate.

Curious to know how high the CO₂ sequestration performance is in your forest? Contact us at hello@tree.ly or register your plots [here](https://tree.ly/sign-up/step-1).


Forest Climate Protection Projects with Guarantee: The Role of TÜV Austria

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Teil 4: 4 Schritte auf dem Weg zum Vorreiter in Sachen Klimawandel 

#What we know now…
The state of our climate is not improving with the [current compensation model](https://tree.ly/blog/compensation-model). In order to limit global warming  to 1.5°C, effective climate action measures need to be put in place. If you can align your company’s values with the [contribution model](https://tree.ly/blog/new-approach-climate) and take action, this will help us reach the goal of 1.5°C. The contribution model recognizes that we are dealing with a global problem and puts forth effort to make a real climate impact. 

Here are some of the [benefits of the contribution approach](https://tree.ly/blog/benefits): 
- **Transparency:** building customer trust and avoiding [greenwashing](https://tree.ly/glossary#greenwashing) accusations
- **Flexibility:** choose what project you think best aligns with your company’s values
- **Positive social & climate impact:** Encouraging others to be aware of the global problems we face and to take action, improving biodiversity and the longevity of ecosystems  

If you like the sounds of these benefits, continue reading to learn how you can implement the contribution model into your business plan.

#4 steps to become a climate change leader: 
##1. Calculate emissions for your entire value chain
The first step: [calculate](https://tree.ly/glossary#carbon-accounting) an accurate annual report of the total greenhouse gasses your company has emitted. An accurate calculation of your company's [GHG](https://tree.ly/glossary#greenhouse-gas) emissions allows you to see where the majority of your emissions are coming from, be aware of the total impact your company has on the climate, and determine where emissions could be cut.

When calculating your emissions, you need to look at your entire [value chain](https://tree.ly/glossary#value-chain-emissions), not just your [direct emissions](https://tree.ly/glossary#direct-emissions). There is increasing regulatory pressure (to meet goals of the Paris Agreement) to take responsibility for [Scope 3](https://tree.ly/glossary#scope-3) emissions, which are the GHG emissions from your [upstream](https://tree.ly/glossary#upstream-emissions) and [downstream](https://tree.ly/glossary#downstream-emissions) value chain partners. That can be a massive cost, and you should start taking steps today to measure it and minimize it. 

##2. Reduce emissions throughout your value chain
After calculating your total [emissions](https://tree.ly/glossary#emissions) the next step is to reduce any climate-damaging emissions. In order to reach the goals of the Paris Agreement we must cut global greenhouse gas emissions in half by 2030 and reduce them to net zero by 2050 at the latest. Start with reducing [Scope 1](https://tree.ly/glossary#scope-1) and [2](https://tree.ly/glossary#scope-2) emissions to immediately lower your annual emissions. 

Next, shadow price the cost-benefit of Scope 3 and start making initiatives to reduce these emissions like picking new partners based, in part on their GHG emissions, and encouraging existing value chain partners to [reduce GHG emissions](https://tree.ly/glossary#emission-reduction).

##3. Take financial responsibility
After you have set your reduction plan in place the next step is to contribute toward climate protection projects. The long term goal is to go completely [net-zero](https://tree.ly/glossary#net-zero) by 2050, but we understand it will take time to get there. In the meantime, start financing climate protection projects to take responsibility and improve your company's [carbon footprint](https://tree.ly/glossary#carbon-footprint) (“[Money for Ton](https://tree.ly/blog/new-approach-climate)”).

Using the “phase-in” approach to take full financial responsibility for remaining GHG emissions will be the most efficient way for your company to reach the goals of the Paris Agreement. According to [WWF](https://www.wwf.ch/sites/default/files/doc-2022-11/20221116_WWF_FFP_B3_Summary%20ENG_final.pdf), start by pricing 100 € for each ton of Scope 1 and 2 CO2e for emissions. Contribute this amount to a high-quality climate protection project of your choice. 

Climate projects that address the crisis of climate change, [biodiversity](https://tree.ly/glossary#biodiversity) loss, and inequitable development are all factors that should guide you into picking the right project. The projects your company decides to invest in should include [nature based solutions](https://tree.ly/glossary#nbs) as well as technological innovations that deliver measurable climate benefits. 

##4. Advocacy and engagement  
The final step, climate advocacy. Invest in climate advocacy in order to maintain a regulatory environment that is favorable to the climate and your company. These additional investments should follow the four principles of being: globally/locally sensitive, consistently science-based, independently funded, and uncompromisingly transparent. Following these guidelines will ensure impactful climate advocacy, ability to communicate with confidence, and create climate change mitigation.

#How can we help? 
A motto at Tree.ly: “First avoid emissions, then reduce, and finally contribute to our local forest projects.” We understand that the most effective thing your company can do is reduce and avoid emissions. However, for those hard to avoid emissions you can contribute to a number of [European forest projects](https://tree.ly/portfolio). Your contribution ensures the preservation of local forests, promoting climate protection, biodiversity, and the regional economy. Your financial contribution is 100% reinvested in the forest, so the forest owner has the means to take additional measures to protect and create climate resilient forests.  

#What Now? Summary and Outlook
In conclusion, to become a climate leader is to use these recommendations for implementing the contribution approach into your company’s climate strategy. These steps lead to real climate impact along with innovations that create ambitious climate change mitigation. 

- Calculate an accurate annual report of the total greenhouse gasses for your companies entire value chain
- Identify where majority of your emissions are and set a reduction plan into place
- Take full financial responsibility for hard to remove emissions by financing nature based climate protection projects
- Invest in climate advocacy to maintain a regulatory environment 


Part 4: 4 Steps to Become a Climate Change Leader

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Let's protect our forests that protect us.


**Make your contribution now:** Simply enter the amount in euros and click on "Checkout." The CO₂ credit will be instantly delivered via email.

**Support the forests of Stand Montafon by purchasing TÜV Austria certified CO₂ credits. The financial resources are reinvested 100% directly into the forest. In this way, you make a significant and measurable contribution to climate protection.**

Our forests are threatened and at the same time one of the most important CO₂ sinks. But you can take active steps against it: A Tree.ly principle related to forest climate protection is to first avoid emissions, then reduce them, and finally contribute to our local forest projects.

**CO₂ footprint examples:**

- 1 round trip car journey from Vienna to Bregenz with a mid-sized car corresponds to approximately 441 kg of CO₂ (~€26.-)
- 1 flight from Zurich to Barcelona corresponds to 390 kg of CO₂ (~€23.-)
- 1 flight from London to New York City corresponds to approximately 1.6 tCO₂ (~€96.-)
- Natural gas bill for, e.g., a 70m² apartment consuming around 9,000 kWh per year with 200 grams of CO₂ per kWh, which amounts to 1.8 tCO₂ (~€108.-)
- Average CO₂ footprint per person in Austria per year: 14.8 tCO₂ (approx. €888.-)

[Climate Calculator by WWF](https://footprint.wwf.org.uk) - [Flight Calculator](https://co2.myclimate.org/en/flight_calculators/new)

Sustain a forest project now

Traditionally, forest owners generate their income primarily through the use of wood. At the same time, the forest provides other valuable ecosystem services.Tree.ly enables forest owners to generate additional income by increasing the forest's CO₂ storage capacity. This increases the natural CO₂ sink, promotes biodiversity, and preserves the forest for future generations. 100% of the revenue is used for regional forest climate protection projects. 


Regional Forest Climate Protection

"Additional income from the sale of CO₂ credits enables the forestry enterprise to invest in forest maintenance and, above all, to ensure "clean forestry" with sufficient skilled forestry personnel."

**Hubert Malin, Forest Operations Manager, Stand Montafon**

Stand Montafon

Thank you for getting in touch

Whether you need help with an existing project, want to get in touch with sales, or have questions about our projects and services. Let us know how we can help you by completing this form, and we'll get back to you as soon as possible.

Buy Credits

We only carry out high-quality projects in European forests. Our methodology currently supports the project types “increase of stock”, “stock preservation” or a combination of them, as well as “forest reserves” and “afforestation”.

Climate protection projects in European forests

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Climate change is the biggest challenge of our times. Believing in the untapped potential of forests, we are driven to connect companies with forest owners, facilitating vital investments in these ecosystems to ensure climate-resilient forests. Now and for the future.

Unlocking the potential of forests. For the climate. For companies.

Find out how Tree.ly came to be. How an avid tech-entrepreneur discovered his true purpose. Merging his  passion  for technology and entrepreneurship to combat climate change.

The Origins of Tree.ly

We are a remote-first team with office locations in Dornbirn and Berlin. We are an experienced team comprised of diverse people with skills in various fields like: forestry, science, design, marketing, engineering, entrepreneurship and many more. Together we're working towards a world where forests are valued and managed for their ecological benefits and where companies are able to make a meaningful and measurable contribution to the environment.

The faces behind Tree.ly

Our advisors are well-known and respected experts in their fields. Over the course of their professional journeys, they were able to stretch the limits of knowledge. With their years of expertise in forestry research, as well as their private sector background, they bring significant value to our team.

Meet our Advisors

Despite the climate challenges, there's still hope for a brighter tomorrow.
Forests are vital carbon sinks. Yet, climate change adds pressure. Foresters have long protected these lands, but they need more support.
Enter Tree.ly. We help forest owners tap into the potential of their assets.
In this green shift, impactful companies rise above the rest.
Support a Tree.ly project. Make a genuine difference.

Sustaining Forests, Protecting our Climate.

Be part of a diverse remote-first team dedicated to creating a greener future for businesses and nature with a focus on forests. All positions are available as full- or part-time employment, remote, or in our office in Dornbirn. We're interested in getting in touch with all experience levels from internships to senior leadership.

Ready to work at a company with real impact? Join Tree.ly

Thank you for your message! We look forward to working with you towards a sustainable future.

Contact us to find out how you can use CO₂ credits for your business, how our projects work or anything else about Tree.ly. 