European Landowners Keen on Carbon Credits, But Upfront Costs Remain a Major Barrier

By Agroempresario.com

A recent survey by carbon removal project developer Arbonics reveals that a majority of European landowners are open to participating in afforestation projects—but only if key financial barriers are addressed. The Tallinn-based company found that 80% of landowners across Ireland, France, Lithuania, Sweden, Austria, and Poland would consider planting trees on previously unforested land to earn income from carbon credits.

Afforestation, the process of creating forests on land without previous tree cover, is gaining traction as a vital tool in the fight against climate change. However, the high upfront costs associated with buying and planting saplings, along with forest management, remain a significant obstacle. According to Arbonics, these costs start at €2,000 per hectare and can climb higher, making it inaccessible for many landowners.

“Afforestation comes with high upfront costs that many landowners simply can’t cover on their own,” said Lisett Luik, cofounder of Arbonics. She emphasized that carbon income—the revenue from selling carbon credits—could help bridge the financing gap and incentivize more sustainable land use practices.

As a platform connecting landowners with carbon credit buyers, Arbonics is well-positioned to understand the market dynamics. But it’s not alone in recognizing both the opportunities and the challenges. SLM Partners' Paul McMahon recently told AgFunderNews that demand for forest carbon credits is growing in Europe, though the market is still in early stages.

Similarly, the European Forest Institute has pointed out that better incentives are needed to help forest owners shift toward long-term sustainability. Introducing carbon credits could be the key to moving away from short-term, environmentally harmful land use.

Financial motivation was cited as the top reason for joining carbon projects by 67% of landowners surveyed, followed by environmental benefits (24%) and community impact (9%). However, Arbonics also highlighted that a lack of knowledge is a major hurdle: 84% of respondents had not contacted any solution providers or assessed their land's carbon potential.

To close this knowledge gap, Arbonics urges increased education and awareness around carbon markets. As the EU targets planting 3 billion new trees by 2030, expanding landowner participation will be crucial in meeting climate and biodiversity goals.