CapMan and Finsilva Pilot Nature Value Trading Model to Combine Biodiversity Restoration with Long Term Forest Asset Value

CapMan and Finsilva Pilot Nature Value Trading Model to Combine Biodiversity Restoration with Long Term Forest Asset Value

(IN BRIEF) CapMan, through its Natural Capital strategy, is supporting Finsilva in launching Finland’s first pilot project for nature values trading, aiming to combine ecological restoration with economic returns. The initiative allows companies to purchase verified biodiversity improvements, creating a potential new revenue stream for landowners. The pilot focuses on restoring a degraded peatland in Pielavesi, where forestry value is low but ecological benefits are high. With partners including Tapio Palvelut, S Group, and LocalTapiola, the project is testing the full lifecycle of biodiversity value creation. The initiative reflects a broader shift in forestry toward integrating sustainability, measurable environmental impact, and long-term financial performance, while exploring the development of a scalable market for nature-based value.

(PRESS RELEASE) HELSINKI, 2-Apr-2026 — /EuropaWire/ — CapMan is advancing new approaches to sustainable forestry and natural capital through a pilot initiative led by Finsilva, a company owned by funds managed by CapMan Natural Capital and Metsärahasto II Ky (Ilmarinen). Managing approximately 137,000 hectares of forest across Finland, Finsilva is exploring how environmental restoration and commercial forestry can coexist while unlocking new sources of value.

In early 2026, Finsilva introduced Finland’s first pilot project focused on trading nature values, working in partnership with Tapio Palvelut Oy, S Group, and LocalTapiola. The initiative allows companies to purchase certified biodiversity value measured in hectares, generated through targeted ecological improvements on privately owned land. This approach represents a shift in how forest assets can deliver both environmental and financial returns.

Juha Hakkarainen highlighted that the pilot demonstrates how ecological restoration can align with economic benefits, offering landowners potential new income streams while supporting biodiversity.

The project centers on a 12-hectare drained peatland located in Pielavesi in North Savo. Originally a natural bog, the site was drained in the 1960s to increase timber production, but the effort failed to deliver meaningful forest growth and resulted in ecological degradation. Rather than leaving the land underperforming, Finsilva identified it as an ideal candidate for restoration, where biodiversity gains could be maximized without sacrificing commercial forestry value.

Following preliminary approval from the Finnish Supervisory Agency during the winter of 2025–2026, restoration activities have moved forward rapidly. Work currently involves removing smaller trees that developed after drainage in order to restore the site’s natural hydrology. Some harvested material is being reused on-site for building small dams and supporting ecological management. To protect soil conditions, operational teams are reinforcing access routes by processing timber along driving tracks, minimizing disturbance to the terrain. Areas of the bog that have retained more natural characteristics are being preserved.

The pilot is also testing the full lifecycle of nature value generation, from landowner implementation through verification and eventual purchase. Activities will pause during the bird breeding season and resume later in the year to continue hydrological restoration work.

The initiative comes at a time when expectations around forestry are evolving. Investors increasingly seek measurable environmental outcomes alongside financial performance. Jyri Hietala noted that forestry is becoming more multifaceted, requiring both economic returns and tangible biodiversity improvements. He emphasized that the pilot offers a practical framework for linking these objectives.

The Pielavesi site demonstrates how this balance can be achieved. Its limited forestry productivity makes restoration economically viable, while its ecological potential is significant. Restored peatlands can enhance habitats, support specialized species, and improve water retention across landscapes.

Unlike traditional ecological compensation models, this initiative focuses on generating new biodiversity value rather than offsetting environmental damage elsewhere. The partners aim to use the findings from this pilot to inform the development of a scalable and credible market for nature values in Finland.

Finsilva views the project as part of a broader strategy where each hectare of land is utilized according to its highest potential—whether for timber production, renewable energy, recreation, or ecological restoration. The Pielavesi peatland, once an underperforming asset, is now positioned to contribute to a new model where nature itself becomes a measurable and investable source of long-term value.

Media Contact:

Charlotte Wessman
Director, Marketing and Communications
charlotte.wessman@capman.com

SOURCE: CapMan