Tapio Palvelut Oy, the S Group, Finsilva and LocalTapiola are launching a pilot project to develop an innovative market-based model for nature values trading. The aim is to improve the biodiversity of the area by restoring a peatland of around 12 hectares in Pielavesi, North Savo. The project will involve trading in the created nature value hectares without the aim of ecological compensation.
In the pilot project, the landowner Finsilva will produce nature values, which will be purchased by the S Group. Tapio Palvelut Oy is coordinating the project and LocalTapiola will be its development partner. The nature value hectares will be verified by the Finnish Supervisory Agency (former Centre for Economic Development, Transport and the Environment).
Current publicly-funded measures to improve the quality of the environment are not sufficient to combat the advancing loss of biodiversity. Market-based models and private funding are needed to achieve the objectives set in the EU Nature Restoration Regulation.
“This marks the beginning of testing an innovative approach and the introduction of new tools to strengthen the state of nature. The pilot results will be used to assess the functionality of the nature values production process and the profitability, viability and necessity of brokerage services,” says Hanna-Leena Tevä, Project Manager, Director of Development and Sustainability at Tapio Group.
Actions to support biodiversity are increasingly emphasised in companies’ sustainability work. Companies are searching for new ways to have a positive effect on the state of nature.
“As a buyer of nature values, it is important to us that the project is based in Finland, it has been evaluated together with the local cooperative PeeÄssä and the nature values are verified by a reliable body. We are constantly seeking new best practices and aim to represent companies in the establishment of a voluntary nature values market. Actors across sectors are needed in the fight against biodiversity loss,” says Nina Elomaa, Chief Sustainability Officer at S Group.
A new source of income for landowners?
In this project, the site of nature values trading is a drained peatland of approximately 12 hectares that contains weak trees that began to grow there following the drainage of 1960s. To restore the peatland, the ditches will be blocked up and most of the evaporative trees will be removed. As a result of water economy restoration, the peatland species will recover, and the area’s nature values will improve.
“Biodiversity is boosted by marked-based nature values trading. More landowners are needed to produce nature values – nature values trading provides a new source of income for landowners and it facilitates the joint achievement of environmental and financial objectives,” says Juha Hakkarainen, Managing Director at Finsilva.
“In order to establish a broader nature value market in Finland, more pilot projects like this with actual actors are needed to obtain truthful information about the nature values trading process,” says Marika Makkonen, Lead in Forestry Business Development at LocalTapiola.
A site suitable for nature values trading was chosen for the pilot project. It meets the criteria related to the S Group’s restoration objectives, such as mitigation of eutrophication and forest restoration. When restored, the peatland will retain nutrient and solids runoffs, potentially generating favourable effects on the state of aquatic life in the water system below the project site.
When selecting the site, the project participants wanted to ensure that the state of nature could be improved without compromising other values in the area. The site’s forestry value is low due to the weak tree growth. The restoration measures will generate biodiversity benefits without significantly undermining the economic values.
Nature values production without the aim of ecological compensation
The pilot project does not involve an aspect of ecological compensation. This means that the state of nature is improved, and nature values are produced at the project site without the intention of compensating for nature values worsened or environmental damage identified elsewhere. It is a market-led way to finance measures to improve the state of nature. Nature values are expressed as nature value hectares to allow environmental actions to be translated into objectives, compared and verified. The exact amount of nature values as nature value hectares will be determined as the project progresses.
Further information
For more information: website on Nature values trading pilot project in Pielavesi
(published at Tapio.fi on Jan 8, 2026 at 8:00, currently in Finnish)
Contact information
Hanna-Leena Tevä, Director of Development and Sustainability, Tapio Palvelut Oy, tel. 029 432 6020
Nina Elomaa, Chief Sustainability Officer, SOK, tel. 045 354 8611
Juha Hakkarainen, Managing Director, Finsilva, tel. 040 087 0867
Marika Makkonen, Lead in Forestry Business Development, LocalTapiola, tel. 041 469 5998
Part of the Tapio Group, Tapio Palvelut Oy provides unbiased information and effective solutions as well as practical tools for sustainable forest management, climate change mitigation and climate resilience, promotion of biodiversity, and reinforcing forest growth and vitality. Our objective is to promote cooperation and partnerships in forestry as well as generate successful results, competitiveness and well-being from forests and nature together with our clients.
The S Group is a retailing cooperative organisation owned by Finnish households. The S Group consists of 19 regional cooperatives, SOK and their subsidiaries. We provide everyday services through our groceries, hotels and restaurants, department stores, service stations, hardware stores and our own bank. The S Group is the largest private sector employer in Finland – we employ approximately 40,000 people. We promote equality and respect natural resources vigorously. The S Group is the largest retailer of Finnish and local food in Finland. Our tax footprint is nearly EUR 1.7 million, and we invest around EUR 500 million in Finland annually. #abetterplacetolive
Forest and natural capital company Finsilva plc is one of Europe’s largest private and independent forest owners. We own roughly 137,000 hectares of well-managed forest in Finland. We combine environmental values and market economy by generating sustainable and profitable results from natural capital. The core of our business is forestry, renewable energy, and real estate development. We develop new ways to use forests and land based on the everchanging needs of people and society. In 2024, Finsilva’s turnover and other operating income were EUR 36.2 million. Finsilva is owned by funds managed by CapMan Natural Capital and Metsärahasto II Ky (Ilmarinen).
LocalTapiola is a customer-owned group of companies that serves personal customers, farms, entrepreneurs, corporate customers, and institutional customers across Finland. The products and services of the LocalTapiola Group include indemnity, life and pension insurance, investment services and savings services. LocalTapiola is a development partner in the pilot, establishing a voluntary nature value market in Finland: our aim is to produce added value for landowners and companies, while supporting the local vitality of the area.
