Innovations for securing forest ecosystem service provision in Europe-A systematic literature review

Forest ecosystems provide a range of goods and services that are essential to human well-being. Yet global environmental problems, increasing urbanization, industrialization pressures, and dominant market mechanisms put into jeopardy the long term sustainable provision of forest ecosystem services (FES). Markets tend to favor private goods, such as timber, and are typically less able to provide sustainable financing mechanisms for public goods and services, such as carbon storage, biodiversity conservation or recreational value. European forest owners and policy makers alike are looking for governance innovations that generate economic opportunity while ensuring the future provision of FES. This systematic literature review aims to consolidate existing academic empirical research on local or regional level governance innovations in Europe concerned with generating forest-based revenue through FES provision. Thus, it complements conceptual literature dealing with challenges and opportunities of financing the provision of FES. When conducting the review we followed the process guidelines developed by 'Collaboration for Environmental Evidence' (Collaboration for Environmental Evidence, 2018). Out of a total of 3962 scanned papers, 23 papers containing 48 case studies were identified and analyzed in detail, to address the following guiding questions: (1) What types of FES related (governance) innovations for forest-based revenue generation exist and which FES do they address? (2) What are the motivations driving innovation development? (3) What are the implications for forest management? We found four types of governance innovations: forest product and organizational innovations which largely relate to provisioning FES; service innovations, which generally relate to cultural FES; and financial incentive systems or payment schemes targeting mostly regulating services. We identify potential synergies between two high-priority EU policy objectives: rural economic development and securing future FES provision. Currently, governance innovations' forest management implications and associated impact on (future) FES provision are rarely addressed in this literature. We recommend future policy and research to give greater consideration to the interdependencies between securing a range of FES, (rural) economic development, and forest management, to realize potential synergies.