How Vestman Group integrates carbon into its business

At a glance

With a long-term view to forestry that has guided their work since 1995, Vestman Group today manages a 22,000-hectare Estonian forest portfolio, including 14,000 hectares of commercial timberland. Grounded in the belief that a healthy forest is a valuable one, they first partnered with Ecobase on afforestation (ARR) projects. Now, building on that relationship, Vestman is about to enroll its entire 14,000-hectare commercial forest portfolio in Estonia into our Improved Forest Management (IFM) project, creating a new revenue stream that works in parallel with their timber business, putting a tangible value on the climate benefits generated by their advanced forestry practices.

A strategic approach to forest value

Vestman’s forestry arm, Metsamaahalduse, takes an end-to-end approach to managing its 22,000-hectare forest portfolio in Estonia. A significant portion, 14,000 hectares, is commercial forestland primarily composed of pine, spruce, and birch, growing on some of Estonia’s most fertile soils. Their philosophy is that a professional and long-term take on forest management creates multiple layers of value, improving the entire forest ecosystem beyond just the production of high-quality timber.

We don’t just harvest timber. We manage land to be productive, resilient, and ecologically functional.

Martin Tammejuur
Member of the Board of Metsamaahalduse

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This is put into practice across their operations:

• Maximizing land use: They take care to plant all available areas, including the sides of ditches and old, unused farmlands, putting all available land to productive use.
• Bridging science and practice: They collaborate with the Estonian University of Life Sciences by providing land for long-term experiments, including a continuous cover forestry test site and areas for studying how different species, for example European larch and spruce, grow together.
• Raising awareness: They actively work with schools and companies, organizing tree planting days and forest excursions to explain the forest lifecycle and the principles of modern, sustainable forestry.
• Investing in Innovation: They invest in technology like remote sensing to increase the effectiveness of their lean team in managing their large portfolio. They are also actively exploring new opportunities, such as carbon credits and providing input on developing biodiversity crediting mechanisms.
  
  

Vestman’s work is not just about doing forestry differently—it’s about making forestry fit for the future. As the global economy shifts to a "circular bioeconomy" that relies on renewable resources, the need to balance productivity with resilience is critical. Vestman's approach stands out because it is both commercially viable and ecologically grounded. It provides a real-world answer to the challenge highlighted in reports like BCG's 2020 "The Staggering Value of Forests—and How to Save Them", which calls for a massive scale-up in sustainable management from just 40% of forests to 100%. For this global shift to happen, the economic logic must work—and that is the role of new income streams designed to reward better forest management.

A practical path to carbon finance

For a company like Vestman that is always looking ahead, the idea of forest carbon wasn't new. They were exploring the concept and even running their own calculations on their forests' carbon stock long before any real projects existed in Estonia. At the time, the idea seemed more theoretical than practical. As Martin Tammejuur recalls, the thought that someone would actually pay for carbon credits felt a bit abstract at the time. Without a clear path to market or certainty about buyers, and recognizing it wasn't their core business, they put the idea on hold.

What changed was the emergence of a partner that understood the realities of modern forestry. When Vestman began talking with Ecobase, the conversation was different. It wasn't just about carbon; it was about forests. This shared language was the foundation of the partnership, a point Martin Tammejuur emphasizes:

How easy is it to talk about forestry with Ecobase? Very easy. And does that make a difference? Yes, it makes all the difference.

For Vestman, this wasn't a minor detail; it was the key that allowed them to think beyond a few scattered pilots and consider a portfolio-wide strategy. This deep understanding of forestry is evident in every aspect of Ecobase's approach. The team was fast and competent—after sharing their data, Vestman had a full analysis of their portfolio with different carbon scenarios modeled out in just weeks time. More importantly, the project is built around the landowner's reality. Martin notes how much forestry has changed in the last 25 years, making long-term, rigid contracts a non-starter for any modern forestry business. For Vestman, the flexibility and unprecedented control offered by Ecobase were essential. Knowing they could retain full control over their land and decisions, coupled with a team that was always just "a phone call away," gave them the confidence to move forward. This combination of deep expertise and a flexible model built the trust that led them to first join Ecobase’s ARR project while adding more land over time, and now commit their entire 14,000-hectare commercial portfolio to the IFM project.

Real results and the road ahead

The work between Vestman and Ecobase has moved from planning to reality. Vestman received their first carbon credits from our first-ever issuance in December 2024, with another round of credits on the way at the end of this year. The next big step is the IFM project, with the first credits expected in 2026. For a company like Vestman, whose vision is to "grow a species-rich and biodiverse forest based on good forestry practices," carbon credits are more than just an additional income stream. It’s about seeing their long-held belief—that a healthy, well-managed forest creates more value—validated in a new and meaningful way.

Partner with Ecobase

If you are interested in unlocking the full environmental and economic potential of your land and forests through carbon finance, Ecobase is here to guide you through the complexities. With deep experience in both forestry and carbon markets, we take a transparent, partnership-based approach with landowners. We handle the carbon project side, so you can focus on managing your land for long-term sustainable environmental and economic value.

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