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Land Use · EU Taxonomy Activity Guide

Forestry under the EU Taxonomy

Forestry qualifies through four activities: afforestation, rehabilitation and restoration, forest management, and conservation. The common architecture is documentary: a forest management plan covering the required content, a climate benefit analysis demonstrating net GHG benefit over the required horizon, and a commitment that the forest’s status is maintained. For forest funds and timberland investors, the criteria formalise practices good managers already run.

Activity ID
CCM 1.1 – 1.4
NACE code
A2
Objective
Climate change mitigation
Sector
Forestry
01

Why this activity matters

Forests are Europe’s principal carbon sink, and forestry was among the first sectors written into the Taxonomy. The criteria are plan-led rather than threshold-led: each activity requires a management plan (or equivalent instrument) with the specified content, a quantified climate benefit analysis, typically demonstrated over decades and verifiable at group or holding level, and an audit trail that survives ownership changes.

The commercial users are forest funds, timberland managers and corporates with land holdings, classifying assets for fund labels and green financing. Group-level assessment matters: smaller holdings can demonstrate the climate benefit through group schemes rather than parcel-by-parcel modelling. DNSH leans on biodiversity, as expected: deadwood, habitat trees, protected species and soil disturbance limits recur.

02

What alignment requires

Plan-led criteria with a quantified climate benefit at their core. In summary:

AreaWhat is required (summarised)
Forest management planA management plan or equivalent covering the required content (harvesting, growth, biodiversity measures, soil, risks), kept current and applicable to the holding.
Climate benefit analysisA quantified demonstration of net GHG benefit over the required horizon against the applicable baseline, using recognised methodologies; group-level demonstration is permitted for smaller holdings.
Permanence & auditCommitment that the qualifying status is maintained, with periodic verification, surviving transactions in the holding.

Summarised for orientation; the assessment itself applies the full criteria text of the Delegated Acts as amended.

03

Where DNSH scrutiny falls

Biodiversity

The centre of gravity: habitat and species protection measures, deadwood and habitat-tree retention, no conversion of high-biodiversity land.

Water

Buffer zones, drainage limits and protection of water bodies within the holding.

Circular economy

Cascading use of harvested wood, favouring long-lived products.

Pollution

Restrictions on fertiliser and pesticide use within the management plan.

04

Documentation that typically supports the assessment

05

How Censatim assesses it

Forestry assessments are documentary reviews of the plan and the climate analysis: our questioning checks the plan’s content against the required elements, probes the climate benefit methodology and baseline, and covers the biodiversity DNSH set. Group-scheme evidence is handled naturally, which suits fund portfolios of smaller holdings.

Censatim is an expert-built EU Taxonomy assessment tool: describe the asset or activity in plain language, upload supporting documents, and answer a short set of targeted questions. The result is a criterion-by-criterion view with an In-line / Partial / Not aligned / Undetermined rating and a confidence level for each dimension. See the full methodology.

06

Frequently asked questions

What does forestry need to qualify under the EU Taxonomy?

The core package: a forest management plan (or equivalent) with the required content, a quantified climate benefit analysis demonstrating net GHG benefit over the required horizon, and maintained qualifying status with periodic verification. FSC or PEFC certification supports but does not substitute these.

Can small forest holdings meet the climate benefit requirement?

Yes, the criteria allow group-level demonstration: smaller holdings can evidence the climate benefit through group schemes rather than parcel-level modelling, which is how fund portfolios of family-scale forests typically comply.

Does FSC or PEFC certification make a forest Taxonomy aligned?

Not by itself. Certification overlaps with and supports several requirements, but the Taxonomy’s specific elements, notably the climate benefit analysis and the plan content list, must be evidenced in their own right.

Which forestry activities are covered?

Four: afforestation (1.1), rehabilitation and restoration including reforestation (1.2), forest management (1.3) and conservation forestry (1.4), sharing the plan-led architecture with activity-specific nuances.

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