German Emissions Trading Authority (DEHSt) at the German Environment Agency

Forests

Last update 21/08/2025

Forests play an important role in climate protection because they can store large amounts of greenhouse gases. You can find out exactly what role the forest plays in climate protection and how the climate change mitigation successes are certified here.

Source: © doris oberfrank-list – Fotolia

Forest ecosystems

The forest is one of the most important ecosystems when it comes to climate protection. This is because forests are a natural carbon sink as trees convert CO2 into oxygen via photosynthesis and incorporate the carbon into their biomass. Almost one third of the Earth's land area, more than four billion hectares, is covered by forests (FAO 2020). Germany would fit into this area over 100 times. Almost half of the forests are in the tropics, followed by the boreal, temperate and subtropical latitudes. Forests are particularly important for regulating the climate. In the EU alone, it stored an amount of carbon equivalent to almost 440 million tonnes of CO2 per year between 2010 and 2020. That is about ten percent of Europe's gross greenhouse gas emissions in this period (Forest Europe 2020).

However, there are indications that this sink capacity is declining not only in Europe but also worldwide. There are two reasons for this: Firstly, the forest area is shrinking due to deforestation, and secondly, existing forests can store less carbon. On the one hand, this is due to natural disturbances such as storms and drought, the frequency and intensity of which will increase due to climate change. On the other hand, the increasing ageing of forests in Europe is causing higher harvest rates.

Treetops photographed from below with blue sky
Source: © satori13 – istock.com

Research projects and studies

  • „The State of the World’s Forests“ (SOFO) examines the contribution of forests and the people who use and manage them to the conservation and sustainable use of biological diversity.

    The State of the World’s Forests 2020 (FAO)

    The report “The State of Europe's Forests 2020” (SoEF 2020) is based on the best available information and the work of over a hundred national correspondents, scientists, and experts.

    State of Europe’s Forests 2020

  • The guideline describes the role of the land use sector (LULUCF sector) for climate protection and identifies requirements for designing and using market approaches to achieve the Paris Agreement goals. The guideline aims to provide a basic understanding of the challenges of integrating the LULUCF sector into international climate policy. With this understanding, mitigation potentials in the land use sector and their upliftment through market-based incentives can be developed on a sound footing.

    Aerial view of a hilly forest landscape
    Source: William Rother

    Landnutzung und Klimaschutz: Wie wir mit Landnutzung Klimaschutzziele erreichen können

    (in German only)

  • The forest sector contributes to high emissions worldwide through the loss of historically built-up carbon stocks, mainly from deforestation and forest degradation. The REDD+ approach aims at compensating developing countries for efforts to reduce emissions from deforestation and forest degradation, to maintain and increase forest carbon stocks or to manage forests sustainably. This report examines how, and under which circumstances, different forms of results-based financing are suitable for reducing emissions and enhancing removals in the forest sector in the context of different countries and mitigation measures.

    Climate Change 12/2023: Potentials for “results-based payments” in the forest sector under the Paris Agreement

  • The land use sector plays a critical role in achieving the Paris Agreement goals of limiting the increase in global average temperature to well below 2° celsius and achieving a balance between greenhouse gas emissions from sources and carbon uptake by sinks in the second half of this century. This report discusses the key environmental integrity challenges of using carbon market mechanisms to implement mitigation actions in the land use sector.

    Climate Change 49/2022: Land use as a sector for market mechanisms under Article 6 of the Paris Agreement

  • In the project “Climate Neutrality – Analysis and Evaluation of the Voluntary Carbon Market in the Forest Sector (KliKoWald)”, the Global Nature Fund (GNF) and OroVerde discuss and analyse the possibilities for small and medium-sized enterprises (SMEs) to engage in climate protection and biodiversity conservation.

    SMEs without reduction commitments have a high need for information on issues relating to the climate-friendly design of their economic activities. The project provides information on emission reduction and compensation options. Particular attention is paid to the risks involved in using emission reduction credits from forest climate protection projects to offset unavoidable emissions.

    Guide to forest-based emission credits

    The guide provides a comprehensive overview of the voluntary carbon market, the role of forest projects in climate protection, and quality criteria for credible emission credits. It addresses current scientific and political developments as well as the discussion on how companies can meaningfully integrate forest climate protection projects into their climate strategy—without replacing the necessary decarbonization. The guide offers companies a comprehensive overview – from the basics of forest ecosystems and the relevance of forest projects to practical tips for purchasing high-quality emission credits from forest projects. At the same time, the guide addresses the debate on credible climate protection and shows how companies can act responsibly in this area.

    Leitfaden zu Emissionsgutschriften aus dem Wald

    (in German only)

    Unavoidable emissions: What SMEs need to know

    Many companies set reduction targets—but what does reduction actually mean when it comes to “unavoidable” emissions? This guide provides guidance on how SMEs can systematically and structurally address emissions that are not (yet) avoidable.

    Unvermeidbare Emissionen

    (in German only)

    Quick info: Emission reduction for SMEs

    A concise introduction for companies that want to take their first steps toward reducing emissions. This quick info sheet shows how SMEs can develop ideas for reducing emissions, set realistic goals, and derive appropriate measures—taking into account the EU taxonomy and the EU taxonomy compass.

    Kurzinfo: Emissionsreduktion für KMU

    (in German only)