Spring 2020 marked a significant step forward in Finland's environmental protection field when Coal Exchange Ltd started its operations. The company, a continuation of a project by the Finnish League for Nature Conservation, has since been working to boost peatland restoration projects across the country. Going forward to March 2023, Carbon Exchange started making payments to private landowners who commit to restore peatlands to their natural state. This will contribute significantly to carbon sequestration and biodiversity conservation, while bringing economic benefits to landowners.
The conservation payments offered by the Carbon Exchange vary between 70-150 € per hectare of heathland and 200-350 € per hectare of wooded peatland. This pricing makes peatland restoration work an attractive economic option for landowners considering how to use their land in a sustainable way. Heikki Susiluoma, CEO of the Coal Exchange, stresses that, especially in old peatlands that have been economically weakened by timber production, a conservation fee can be a significant financial relief.
Susiluoma cites the example of Kuusamo, where many drained bogs have been left in a weak economic position. Drainage caused by ditches has affected tree growth, and forest management has required large investments with no clear economic return. In such areas, the Carbon Exchange's conservation payments offer a competitive alternative to continue managing the land in a sustainable way without significant additional costs.
In addition, Susiluoma stresses that energy wood production in these drained peatlands is often a poor solution from a sustainability point of view. The compensation offered by the carbon exchange can encourage landowners to redirect their resources towards better environmental and economic alternatives. This not only ensures high quality environmental management, but also diversifies economic opportunities for landowners.
The attractiveness of the Carbon Exchange's conservation payments cannot be overemphasised, as the support provided by the company creates a sustainable basis for restoration work, encouraging more extensive peatland restoration in the longer term. This in turn supports wider objectives such as improving biodiversity and mitigating climate change.
The conservation compensation scheme is not just a concept to be tested over time, but a permanent part of the Coal Exchange business model. The company aims to make a lasting contribution to peatland restoration, providing long-term solutions to environmental and economic challenges. For landowners considering the fate of their land, this managed and predictable system is an important opportunity to actively participate in sustainable development, while bringing stability and prosperity to their economies.
