The first PEFC certificate for an open group in Latvia and what it means for forest owners

On April 30 of this year, SIA Palus received the first and only open-group PEFC forest management certificate in Latvia. This means that owners of small and medium-sized forest properties now have the opportunity to join an internationally recognized certification program at significantly lower costs, as audit and documentation costs are shared among all group members. At the same time, this certificate opens the door to improved forest management CO2 projects, for which the certificate is a mandatory prerequisite.

What is the PEFC certificate for open groups?

PEFC (Programme for the Endorsement of Forest Certification) is the world’s largest forest certification system, covering nearly 300 million hectares of certified forest in more than 50 countries (Source: https://pefc.org/discover-pefc/facts-and-figures). In Latvia, more than 1.71 million hectares are managed in accordance with the PEFC standard, which is more than half of the total forest area (Source: https://pefc.lv/par-pefc/).

PEFC group certification allows multiple forest owners to join together for a single joint certification audit, during which an independent auditor verifies that forest management and documentation comply with the PEFC standard. This shares the costs and administrative burden. An open group differs in that it accepts new members on a regular basis, not just at the time of the group’s formation. A forest owner who wishes to obtain PEFC certification may join at any time, provided their property meets the standard’s requirements.

Until now, no such model existed in Latvia, and for owners of small forest properties, PEFC certification was largely only achievable in theory. The first open group certificate changes this situation, as there is now a specific service that can be joined without a long wait.

A 10-year journey to this achievement

On June 1 of this year, SIA Palus celebrates its tenth anniversary. The company’s certification comes in this anniversary year as a result of its hard work and experience. Over the past ten years, the company has gained experience in forest management planning, overseeing certification processes, and implementing sustainable forest management in daily practice. The open group certificate is the next step on this path, opening up opportunities for a wider range of forest owners in Latvia.

Why is this important for forest owners?

For owners of small and medium-sized forest properties, obtaining PEFC certification on an individual basis is usually a financially unfeasible process, as the costs of the certification audit are not justified given the size of the property. Audits for small properties require roughly the same amount of time and documentation as those for large ones, but income from timber or other forest products is lower. The group model solves this problem by sharing the costs among all group members.

The open-group model adds another key element: new members are admitted on a regular basis, so forest owners do not have to wait until the group opens enrollment for the next certification phase. This is a definite improvement compared to closed groups, where the membership is fixed at the time the group is formed.

The main benefits for forest owners are as follows:

The opportunity to obtain internationally recognized certification at a lower cost
New members are accepted throughout the year, not just during specific enrollment periods
Organizing audits and documentation through the group leader
Certificate required for participation in CO2 projects
Simplified timber sales for buyers who require certified origin

Certification as a prerequisite for CO2 projects

In recent years, the carbon credit market has grown in importance, so forest owners in Latvia are increasingly seeking opportunities to join Improved Forest Management (IFM) CO2 projects. In these projects, forest owners receive carbon credits for specific activities that increase carbon sequestration; these credits can be sold on the market, generating additional income.

Possible actions include:

The establishment and management of high-quality, productive, and sustainable forest stands, promoting wood growth and additional CO2 sequestration
Postponing major logging to allow trees to continue growing and storing carbon
The use of selective cutting instead of clear-cutting, which leaves part of the stand untouched
Faster forest regeneration following windstorms, pest infestations, or other disturbances.

In the Latvian market, Improved Forest Management (IFM) CO2 projects are certified according to internationally recognized methodologies, such as the Verra Verified Carbon Standard (VCS). These standards set strict requirements for project development, monitoring, and credit issuance.

To join such a project, a forest owner must have a forest management certificate confirming that the forest is managed in accordance with recognized standards. This protects the buyer of carbon credits from the risk that the forest might be managed in a way that reduces the carbon stored within it.

It is precisely at this point that the open-group certificate becomes particularly important. Previously, participation in CO2 projects was largely off-limits to small forest owners because obtaining an individual certificate was not economically viable due to the costs involved. The open-group model removes this barrier and allows even small properties to generate CO2 revenue.

How to join the PEFC open group

The specific steps are as follows:

Please contact the PALUS group leader (arturs@palus.lv; tel. +371 2918 2981) to learn about the terms and conditions of participation.
Submit information about your forest property (cadastral data, area, proof of ownership or possession rights, updated forest inventory data, and summary data for the entire forest property—gdb. file) and economic activities (data on the actual volume of work performed in the previous year and planned economic activities for a 5-year period)
Prepare or update a forest management plan in accordance with the requirements of the PEFC standard. This is usually done together with the group leader.
Join the group. (The forest is included in the group’s PEFC certificate, and each year an auditor visits a selected group of members to verify compliance with the standard)

After joining, the forest owner retains full responsibility for managing their forest, while the group leader assumes all administrative duties and communication with the auditor. This allows the owner to focus on forestry itself rather than on paperwork.

If you would like to learn more about joining the PEFC Open Group and about opportunities for CO2 projects, find out more here.