European forests and the battle against climate change

Charles Darwin, father of the theory of evolution, described the discovery of fire as: "probably the greatest ever made by man, excepting language." Even today, our control of fire is often seen as the origin of technological progress.

But was Darwin right? Was the campsite fire really the beginning? What about the wood for the fire, and the forest it came from? Forests were always a source of food, shelter, medicine, and tools - and therefore of innovation and technological progress. And although forests are seldom seen as areas of technological development, in fact, today's forestry industry is a high-tech leader.

Forests capture carbon

Referencing the European Environment Agency's March 2024 Climate Risk Assessment, Cedric Baur, Equity Analyst, LGT Private Banking, wrote, "if greenhouse gas emissions remain at high levels, the European continent could experience a warming of +3 °C by 2050, while the Earth as a whole is likely to warm by +1.5 °C by then. By the end of the century, Europe could even see +7 °C, if greenhouse gas emissions are not significantly reduced."

Immediate action is required, and in this battle to reduce emissions, forests play a key role as the largest storehouses of carbon after the oceans, absorbing and locking in greenhouse gases. Indeed, the forestry industry is forging ahead with reforestation efforts and high-tech innovations, including remote sensing and drones, creating new ways to manage forests, and reduce and capture carbon emissions.

Collaborating with nature 

Forests are the lungs of our planet, at the forefront of the battle to reduce greenhouse gases. So it's vital to ensure existing forests are conserved and kept healthy, and that new forests are permitted to grow. But it takes years for forests to grow; investments by the forestry industry have a time  span of decades; and climate change is already affecting harvests and making it harder to predict what kinds of trees will grow (and where) in the future.

"We are living in a time when the climate is changing quickly," says Oliver Hilpold, CEO of LIECO Group, a leading producer of forest seedlings in German-speaking Europe that focuses on sustainable forest management practices and innovation to enhance the health and productivity of forests. "A higher frequency of extreme weather conditions means not every year produces a good harvest."

The current pace of climate change means that nature is unable to adapt on its own. It needs targeted reforestation and afforestation (establishing forests in areas without previous tree cover) to achieve the optimal mix of tree species and enhance the ecosystem's resilience to cope with future environmental challenges. 

"In Europe, spruce is unlikely to be the prominent tree forever, at least for lower altitudes and dry regions, and beech is dying in some areas of Germany because it's too dry," says Hilpold. "We need a mixture of trees with the best-fitting provenances, but if the climate changes, then we have to adapt."

The Foundation Prince Liechtenstein set up LIECO, based in Kalwang, Austria, in 1985 as a joint venture with a Swedish partner, taking it over 100 per cent in 1991. Now with four nurseries in Germany and two in Austria, LIECO sells over 30 million seedlings annually.

But battling climate change cannot be left to the forest companies alone. "As managers of nurseries our powers are limited, we are dependent on what the market is requesting," says Hilpold. "Therefore, stakeholders across the entire value chain have to work together."

For example, as climate change speeds up, researchers need support to study and forecast how forests are impacted by climate change; and regulators have to continue to work with companies to implement legislation that safeguards the environment while allowing owners to make the best commercial use of their forests.

Digitalisation supports sustainable forest growth

As in many sectors, digitalisation is increasingly important in the forestry industry. At the cutting edge is Forest Mapping Management (FMM) with their Palos Platform, which develops software solutions and mapping tools for monitoring and managing forestry operations. Based in Salzburg, Austria, FMM, part of the LIECO Group, has provided digital solutions and aerial photography to the forestry industry for over 25 years.

The Palos Platform offers live tracking and management of forest holdings and logistics via aerial drone surveys and digitalised maps. Using aeroplanes with high-resolution cameras, and increasingly satellites, the Palos Platform can identify tree species, sizes, and heights. This information, aided by artificial intelligence, lets forest owners manage their forests optimally from plant to sawmill, and plan effectively for the future.

The urgency of climate change calls for tools that deliver accurate data and support adaptation to change. So while forestry tech is still a niche market, there is growing demand for the services that forest tech companies provide. 

Answering the call for immediate action

In the fight to contain global warming, the European Union launched its Biodiversity Strategy in 2020 to improve ecosystem restoration and biodiversity, and increase resilience against droughts, pests, diseases, and other climate change threats. The strategy is in line with the UN Sustainable Development Goals (SDGs) and the Paris climate agreement. Healthy and sustainably managed forests offer a form of defence against climate change, so the goal of the strategy is to plant three billion new trees across Europe by 2030.

Currently, LIECO is supplying almost a tenth of the EU's annual tree-planting goal, and significant areas of European woodland are managed using FMM technology. Both companies are long-term holdings of the Liechtenstein Group, showing that the Princely Family of Liechtenstein both firmly believes in their economic viability as well as is committed to ensuring that European forests continue to thrive and contribute to a healthy environment.