Policy coherence in climate change mitigation: An ecosystem service approach to forests as carbon sinks and bioenergy sources

Policies governing forest ecosystems can mitigate climate change in many ways, making use of various ecosystem services. Although identification of ecosystem service trade-offs has received increasing analytical attention, the policies and mixes of policies generating the trade-offs have remained outside the focus. To advance the policy relevance of ecosystem service trade-off analysis, we analyse the coherence of Finnish policies affecting forest bioenergy and carbon sequestration, two contrasting means to use forests for climate change mitigation. In particular, we focus on the interactions that different policy outputs have with respect to these two ecosystem services. The analysed policy outputs represent different foci and levels and rely on different mechanisms. We identify the direct and indirect impacts that the policy outputs have on the supply and demand of the services by utilizing natural science and policy assessment approaches. We find forest bioenergy, representing a tangible ecosystem service exchanged in the market, to be governed more positively and with more explicit instruments compared to carbon sequestration. Carbon sequestration policies remain at a higher level of abstraction, stating merely strategic objectives, possibly because these markets are only emerging and remain political and highly uncertain. Our analysis shows that trade-offs between the two ecosystem services are generated by policies supporting bioenergy, whilst general policies advance both services. The entire mix of policy outputs and its differentiated impacts on ecosystem services should be thoroughly considered when assessing the strategies for mitigating climate change and designing new policy instruments.