Carbon binding of forests: some remarks on classification
and valuation
13th London Group Meeting 29.9.-3.10.2008
Jukka Muukkonen
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The main frameworks for classifications
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SNA93 and revision
SEEA2003
UN climate convention and the Kyoto protocol;
Annual reporting and calculation of greenhouse gas emissions,
sources and sinks based on internationally agreed guidelines and
good practise guidance
Global Forest Resources Assessment (FRA) by the UN FAO;
periodic assessments of the world forest resources
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Forest categories in GHG inventory and FRA
GHG inventory
Forest Resources Assessment
Forest land remaining forest land
Forests and other wooded land
Managed (intensively/extensively)
Planted forests
Natural, undisturbed
Naturally regenerated forests
Land converted to forest land
Managed (intensively/extensively)
Natural, undisturbed
Primary forests
Other forests (with sign of human impact)
Other wooded land
Trees outside forests
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Forest categories in SEEA2003 and FRA
SEEA
Forest Resources Assessment
EA.141 Timber resources
EA.1411 Cultivated
EA.1412 Non-cultivated
EA.23 Wooded land and associated surface water
EA.231 Forested land
EA.2311 Available for wood supply
EA.2322 Not available for wood supply
Forests and other wooded land
Planted forests
Naturally regenerated forests
Primary forests
Other forests (with sign of human impact)
EA.232 Other wooded land
Other wooded land
EA.313 Forest ecosystems
Trees outside forests
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For the revision of SEEA…
• In the FRA, availability for wood supply is no longer a classification criteria
• But according to forest designation, the FRA includes
• production
• protection of soil and water
• conservation of biodiversity
• social services
• multiple use of forests
• Would this designation –based division of forested land be more usefull for the
SEEA2012 ’Forested land’ category than availability/non availability for wood
supply?
• Anyway, the division ’natural / semi-natural / plantations’ of forests used as an
alternative hierarchy of forests in the SEEA2003 seems to be out of date. In the
FRA and the GHG inventory, forests are either primary, natural, undisturbed
forests or managed forests with sign of human impact.
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Valuation of forest assets
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Monetary valuation of timber assets is an area where SEEA2012 standard can
be reached. Valuation methods, such as net present valuation, stumpage value
method and methods based on harvesting scenarios are available and/or can
be developed.
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In practise, any method of monetary valuation of timber is not applicable for all
countries. Depending on national circumstances on e.g. regional, ecological,
economic and data availability (both physical and monetary) reasons, some or
one of ‘standard methods’ methods will be relatively applicable at national level.
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Timber values are relevant only for ‘cultivated timber resources’, ‘managed
forests’, and ‘forests available for wood supply’. If other monetary values are
not known and presented in environmental accounting, integrated balanced
environmental-economic information on these forests is not reached.
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Valuation of forest assets

For primary, natural, undisturbed forests not available for wood supply timber
and forest value can only be based on other dimensions than wood as a raw
material for industrial purposes.
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Valuation of carbon binding expands information on monetary value of forest
assets, because valuation reaches also forest assets for which calculation of
timber values is not relevant. It also offers information for the decision making
on optional uses of forests, such as e.g. intensive timber production or
protection of forests to prevent climate change.
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Direct economic importance of forests as a sink (or source) of greenhouse
gases is increasing due to e.g. emission trade arrangements. Emission trade
gives basis for estimation of monetary value of forests as carbon binding
natural resource and environmental asset.
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Due to international agreements on climate protection and the GHG inventory,
data availability and quality on physical carbon balances of both trees and
forest soils is improving.
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SEEA and GHG inventory: changes in stocks
SEEA2003:
A generic asset account for a physical asset
Greenhouse gas inventory for
forest land
Opening stock levels
Increases in stock
Due to economic activity
Due to regular natural process
Decrease in stock
Due to economic activity
Due to regular natural process
Due to natural disaster (net decrease)
Changes due to economic classifications
Closing stock levels
Changes in environmental quality
Due to natural processes
Due to economic activity
Annual change in carbon stocks =
+ Annual change in carbon stocks in living biomass =
+ Increase due to biomass growth
Above ground biomass increment
Below ground biomass increment
- Decrease due to biomass lost
Loss due to commercial fellings
Loss due to fuelwood gathering
Other losses (due to disturbances)
+ Ann. change in carbon stocks in dead organic matter
Change in carbon stock in dead wood
Change in carbon stock in litter
+ Annual change in carbon stocks in soils
Change in carbon stock of mineral soil
Change in carbon stock of organic soil
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