The Forest Stewardship Council is developing a royalty system to pay forest owners each time their fibers are reused, aiming to promote a circular bioeconomy and reduce deforestation pressure. Loa Dalgaard Worm, leader of the FSC's Circularity Hub launched in 2023, discussed these initiatives in a recent podcast. The approach seeks to update the organization's 30-year-old certification standards for sustainable material flows.
Forests cover about 4.14 billion hectares, or roughly a third of the world's land, storing 714 gigatons of carbon and supporting 80% of land-based biodiversity. However, 11 million hectares are lost annually to deforestation, with the World Bank projecting a 400% rise in demand for forest-based products by 2050 as industries shift from fossil-based materials. A 2023 Circularity Gap Report indicates that over 90% of materials entering the global economy are virgin and end up in landfills, underscoring the need for reuse.
Loa Dalgaard Worm, who has worked with the FSC for over 18 years and leads its Circularity Hub, explained in the Sustainability In Your Ear podcast how the organization is evolving its chain-of-custody standard, which covers 70,000 companies worldwide and FSC-certified forests spanning 171 million hectares in nearly 90 countries. The hub, started in 2023, focuses on post-harvest fiber management to keep materials in use longer.
Key proposals include integrating circular models like take-back, repair, and leasing into standards, set for implementation by year's end. Another initiative certifies agricultural residues—such as wheat straw, rice husks, and coffee chaff—as alternative fibers to lessen virgin wood demand. The royalty system, Worm's ambitious concept, would compensate forest owners for ongoing ecosystem protection each time their fibers are recycled or reused, funded by companies paying for verified origin data to comply with regulations like the EU Deforestation Regulation.
FSC employs tools like the blockchain-based FSC Trace, isotope testing via World Forest ID (pinpointing origins within 15 kilometers), and Esri partnerships for earth observation. Worm noted, “We used to be able to do this,” recalling past repair practices. Plans involve piloting the royalty system within two years and presenting it to the FSC General Assembly by 2029.
Challenges include ensuring benefits reach Global South forests and indigenous communities, where most fibers stay local amid geopolitical shifts. Worm emphasized automating data collection and using mobile tools to avoid burdens on smaller operations, while upholding free, prior, and informed consent. These efforts aim to sustain forests amid rising demand, preventing ecosystem vulnerability to climate threats like fires and droughts.