Tackling climate risk with sustainable forestry
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Recap of the event
The Context
To stay within the 1.5° or 2°C climate targets, the world needs to remove 9 billion tonnes of CO₂ annually by 2050. Forests are natural carbon sinks—but they’re under pressure. Germany alone lost 3% of its forest carbon stock between 2017–2022. While technical carbon removals are still costly and limited, nature-based solutions like forest preservation and reforestation are affordable and ready now.
Tobias Grimm (Chief Climate Scientist, Munich Re)
Tobias brought the reinsurer’s perspective: climate-related losses are increasing—not just because of climate change, but due to greater human exposure in high-risk zones. Munich Re tracks extreme weather trends and quantifies growing hazards like droughts, wildfires, and storms. Forests, he emphasized, play a dual role: they store carbon and protect urban areas from climate impacts. But their vulnerability depends heavily on species mix, age structure, and management—factors that can be improved with smart forestry.
Sebastian Seidel (Forester & Co-founder, Climate Forest)
Sebastian made it clear: monocultures are high-risk. They’re more vulnerable to pests, storms, drought, and economic shocks. In contrast, mixed forests (3+ species) offer greater climate resilience, biodiversity, and carbon storage. His message: forests should be managed like ecosystems, not timber factories. Mixed-age, mixed-species forests with selective harvesting techniques (not clear cuts) are the way forward—for climate, biodiversity, and long-term value.
Kurt Krapfel (Forestry Director, ACR)
Kurt dove into the carbon market mechanics. ACR supports landowners through various project types like improved forest management, reforestation, and wetland restoration. He explained how carbon credits are only issued for actions that go beyond “business as usual”—backed by field data and verified by third parties. The growing carbon market offers landowners a financial incentive to grow carbon-rich, climate-resilient forests, with buffer pools protecting against unforeseen losses like fires. Expect the market to 5x by 2030 and 30x by 2050.
Key Takeaways:
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Science-Based Methodologies – Ensuring carbon sequestration strategies are backed by rigorous, data-driven approaches.
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Long-Term Commitment – Sustainable forestry requires policies and investments that prioritize long-term carbon storage and biodiversity.
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Diverse Forests for Greater Resilience – Optimizing forest age structure and species mix enhances both carbon sequestration and ecosystem stability.
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Integration of Adaptation & Mitigation – Forests play a dual role in reducing emissions and enhancing resilience to climate impacts.
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Transparency & Credibility – Strengthening carbon markets with robust verification, additionality criteria, and stakeholder trust.
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Interdisciplinary Collaboration – Bringing together experts in forestry, finance, and policy to drive impactful climate solutions.
Questions were lively, covering everything from forest age structure to biodiversity badges and buffer pool safety. The final consensus? We need both natural and technical sinks—but forests are ready today.
Q&A
Answer (Tobias Grimm):
Forests play a key role in mitigating both climate change and its impacts. Globally, forests absorb roughly 10–20% of greenhouse gas emissions, acting as massive carbon sinks. Another 25% is absorbed by oceans, meaning only half of all emissions reach the atmosphere. Forests also help regulate microclimates, reduce flood risks, and protect against erosion – making them essential for climate adaptation, especially in urban areas. However, to maintain this value, we need robust carbon accounting, certification, and long-term forest management.
Answer (Sebastian Seidel):
Trees are most productive in terms of CO₂ uptake between 20 and 60 years. After that, growth slows—like humans aging. But in well-managed mixed forests, old trees can remain stable and resilient. The key isn’t just age, but the right species mix. Some species don’t live long, while others like oaks can be 200+ years old and still strong. So, the mix of species and ages is what truly reduces risk and increases resilience.
Answer (Kurt Krapfel):
Yes, ACR already has several biodiversity safeguards in place:
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No exotic species allowed
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Natural forest management required
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Species diversity is encouraged
We also offer biodiversity tags tied to the UN Sustainable Development Goals. While we don’t currently issue biodiversity-specific badges, it's definitely on our radar, and something we’re looking into for the future.
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Answer (Sebastian Seidel):
At Climate Forest, we manage properties ranging from a few hundred hectares up to 15,000 hectares.
Answer (Kurt Krapfel):
For Improved Forest Management (IFM), we’ve seen projects as small as 2,000 acres (~800 ha), though monitoring and verification costs mean scale helps.
For smaller landowners, we offer aggregation options, combining multiple properties into one project.
Some project types (like wetlands or avoided conversion) work on smaller plots due to high carbon impact.
Reforestation, on the other hand, usually needs larger areas and long timelines but offers big climate benefits.
Answer (Kurt Krapfel):
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Harvesting: Not all carbon from harvested trees is immediately released. ACR uses storage factors for different wood products based on peer-reviewed science. Some carbon remains stored for decades.
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Leakage: We apply a 30% deduction from credits to account for the risk of emissions shifting outside the project area (based on the latest literature). We also require projects to follow sustainable forest certification or a long-term forest plan.
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Avoidance vs. Removals:Avoidance credits = emissions prevented (e.g. stopping deforestation)
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Removals = carbon actually drawn down from the atmosphere (e.g. forest growth)
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We need both to meet Paris Agreement goals. Think of it like a flooding sink: first you turn off the tap (avoidance), then you bail out the water (removals).
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Answer (Kurt Krapfel):
We recognize all three:
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FSC and SFI are common for larger, industrial landowners
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Tree Farm is often used by smaller landowners
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ACR doesn’t prefer one over the other, but if you are doing commercial harvesting, one of these certifications is required.
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Answer (Kurt Krapfel):
ACR has a robust buffer pool to cover unintentional events (like wildfires, storms, etc.):
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A deduction is made from each issuance to contribute to the pool
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Projects with higher risk contribute more
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Intentional actions (like overharvesting) are legally enforced—project owners are on the hook
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We recently updated our buffer pool methodology using GIS, peer-reviewed data, and risk models. We also offer a potential insurance-based option, though it hasn’t been used yet.
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Answer (Tobias Grimm):
We need both. Natural sinks are available now, while technical ones are expensive and still scaling.
From an insurance point of view, we’re open to backing tools like carbon buffer pools, especially for natural catastrophe risks (storms, droughts, fires).
As long as there is transparency and data, we’re ready to support and insure both natural and engineered solutions.
Our speakers
How sustainable forestry tackles climate risks—by reducing emissions, protecting ecosystems, and unlocking new revenue streams.
Three expert voices explore the intersection of climate risks, sustainable forest management, and carbon markets.
The world in a changing climate
– A Munich Re perspective
Tobias Grimm
Chief Climate Scientist
Tobias Grimm has been the Chief Climate Scientist of Munich Re since 2025 and Head of Climate Advisory and Natcat Data since 2023. His team is responsible for climate-related solutions and the NatCatSERVICE database, one of the world’s largest for natural disaster damages. Tobias has a long career as a climate expert at Munich Re since he joined in 2005. Before his current role, he led various projects related to natural hazards, climate change and the energy transition, including a multi-year delegation to Sydney for Munich Re of Australasia.
Sustainable Forestry: Creating Impact and Measuring Carbon Sinks
Sebastian Seidel
Founder of Climate Forest
Sebastian Seidel has worked in forestry since 2004, starting with hands-on roles in harvesting and logistics before moving into forestry investment and co-founding the Waldholz Group. A clearcut in 2022 inspired him to rethink forestry’s role in addressing climate and biodiversity crises. He co-founded 44moles, advancing forest data with LiDAR technology, and Climate Forest, focused on carbon and biodiversity projects. Sebastian is dedicated to innovation and creating measurable impact.
Trust and Impact: A Quality Perspective on Forest Carbon Credits
Kurt Krapfl, PhD
Director of Forestry
Kurt Krapfl, Forestry Director at ACR since 2016, has contributed to the registration, verification, and issuance of 150M+ tonnes of forest carbon credits. He has led methodology development for improved forest management, reforestation, avoided conversion, and ecosystem restoration, and supported ACR program updates. With expertise in forest carbon quantification, management, and silviculture, Kurt holds a PhD in Forest Management and has worked with the U.S. Forest Service, NPS, and ecological consulting firms.
Moderator:
Dr. Jochen Gassner
CEO of Climate Forest