Insights into the development and key factors of five European governance innovations for forest ecosystem service provision

Abstract

Climate change and biodiversity loss necessitate the forestry sector to adapt its management practices to provide forest ecosystem services (FES) sustainably. However, there is a limited understanding of influences that foster novel governance approaches in forest management systems. This research applied the SETFIS analytical framework to examine governance innovations in five European case studies at local, regional, and national levels, analysing forests as socio-ecological-technical-innovation-systems. Examples include novel compensation schemes for carbon sequestration and biodiversity restoration, tourism offsetting activities, and new alliances linking FES users and providers. The study revealed critical success factors of innovation emergence and development across all cases: initial funding, understanding local context and history, integrating local and global knowledge, incorporating related innovations for knowledge sharing and collaborative learning, building capacity, mobilising flexible and stable funding with compensation for participation to secure diverse networks, and minimising risks by preparing for disruptive events. While these commonalities emerged, specific conditions for governance design and operation varied by context, highlighting the importance of place-based bottom-up approaches. The research demonstrates that governance innovations extend beyond technological change to encompass social, ecological, economic, and institutional dimensions, requiring multi-actor partnerships and adaptive governance structures. Supporting the emergence of governance innovation and ongoing reflection is essential for sustainable forest management, expanding from focusing mainly on single provisioning services, such as timber, to comprehensive FES bundles, including biodiversity, recreation, climate adaptation, and cultural values. These findings provide a foundation for developing effective forest governance and policy responses that address key challenges in European forests.