Hiilipörssi and Peatland Restoration Briefly in English

Intorduction: What are peatlands and why are they vital for our planet?

In Finland, peatlands are defined as ecosystems with a peat layer exceeding 30 cm in thickness. Peat forms as plant material decomposes slowly in waterlogged, low-oxygen conditions. Peatlands typically feature soft, water-saturated ground and distinctive plant life adapted to wet environments, such as sphagnum mosses. Peat in Finnish peatlands has been accumulating since the Ice Age, resulting in an average peat layer thickness of 1.5 meters.

Finnish peatlands are classified into various types based on water balance, nutrient levels, and vegetation. Common types include aapa mires (receiving water from surrounding areas), raised bogs (fed primarily by rainwater), and palsa mires (characterized by frost-formed mounds). This classification highlights the rich diversity of peatland types in Finland.

Peatlands are biodiversity hotspots, with nearly each of Finland’s one hundred peatland types supporting its own specialized flora and fauna. They are also immense carbon reservoirs: approximately 70% of Finland’s national carbon storage is held in peat. Moreover, peatlands store more soil carbon than any other terrestrial ecosystem, including tropical forests, while globally, peatlands store almost as much carbon as Earth’s entire atmosphere (2). Additionally, peatlands filter water from catchment areas and play a vital role in flood control.

Historically, peatlands covered nearly one-third of Finland’s land area. However, more than half of these peatlands have been drained, and in southern Finland, as much as three-quarters are impacted by drainage. The draining has been done to boost forestgrowth. Drainage disrupts peatland ecosystems, reducing biodiversity, increasing water pollution, and exacerbating flooding. Furthermore, draining peatlands accelerates climate change by releasing stored peat carbon into the atmosphere.

Peatlands have been heavily drained in the 1960's and 1970's to boost forestgrowth. However, in many areas, drainage has not achieved the desired results.

Hiilipörssi Restores Peatlands

At Hiilipörssi, we restore drained peatlands as an environmental service that benefits the climate, biodiversity, and water quality. Supporting peatland restoration through Hiilipörssi is an effective and reliable way for companies and individuals to make a lasting positive impact on the environment. Additionally, your investment helps preserve the unique natural heritage peatlands provide, promoting their recreational value for future generations to enjoy.

Piitsonsuo is a 350 ha peatland restored by Hiilipörssi in Eastern Finland.

Peatland restoration involves filling and damming the ditches that drain the peatland ecosystem. In some cases, excess trees are removed to reduce water evaporation and to help restore the original vegetation structure of the area. Once restored, the site is designated as a conservation area to ensure the permanence of the restoration.

Hiilipörssi customers can directly finance the restoration of peatlands by purchasing shares in our various projects, presented here on our website. Customers can purchase shares measured either by restored land area (acres) or by the positive climate impact (CO₂ tons) of the restoration project. Purchasing, however, requires Finnish bank credentials. Currently, the online service is available only in Finnish, but you can contact us via email for service in English—we can provide documentation and certificates in Finnish, Swedish, or English. To ensure transparency, all purchases will be displayed (anonymously upon request) in our publicly accessible registry, Suorekisteri.

More Information about Peatland Restoration's Environmental Impacts

Climate

Protecting peatlands’ immense carbon stores is essential for combating climate change. Drainage lowers the water table in peatlands, exposing the peat layer to oxygen and causing it to decompose and release stored carbon. Restoration halts this process by reestablishing the ecosystem’s natural hydrology(3).

By supporting peatland restoration, you help prevent carbon emissions from drained peatlands. Financing the restoration of one hectare of peatland equals 41.67 tons of CO₂ prevented from entering the atmosphere. In other words, the climate impact of your purchase is proportional to your selected product size.

While peat decomposition rates vary by peatland type and climate conditions (3, 6, 7), the average annual carbon loss from drained peatlands is estimated at 1.5 tons of carbon per hectare—equivalent to 5.5 tons of CO₂ per year. This provides a reliable estimate of carbon loss from typical drained peatlands in central Finland(8). The cumulative carbon benefit of restoration over 15 years, using a conservative multiplier, is approximately 41.67 tons of CO₂ per hectare. Although restoration may produce some methane emissions, the long-term climate benefits are positive(5). As sphagnum moss and other peatland vegetation return, restored peatlands will also begin to sequester new carbon(3).

Biodiversity

Peatlands are Europe’s most endangered habitat. Roughly half of Finland’s peatland types are nationally classified as threatened, and around two hundred peatland species are endangered. Drainage has been a primary driver of habitat loss and species endangerment, especially impacting peatland birds and butterflies. (3)

Restoration revives habitats for peatland species, making it a powerful way to protect and enhance biodiversity. Common peatland species, such as mosses, birds, and butterflies, quickly reestablish themselves on restored peatlands. In areas closely connected to other intact peatlands, rarer species may also return. (3)

Water Quality

The contribution of drainage to human-caused nutrient pollution is greater than previously estimated: forestry drainage accounts for up to 20% of phosphorus and 15% of nitrogen pollution in Finland. Drainage also increases the flow of humus and suspended solids, darkening water and reducing the depth of the photosynthetically active layer. This, in turn, has a significant impact on the entire ecosystem. (3)

Restoring peatlands helps mitigate these drainage-related impacts on water quality. After restoration, water quality improves swiftly, and nutrient levels drop to those typical of an intact peatland within roughly ten years, especially in nutrient-poor mires. (3)

Fun fact:

In Finnish, the word for peatland is "suo," and the Finland is called "Suomi". This is believed to reflect the importance of peatlands in the Finnish landscape!

More questions? Please don’t hesitate to contact our team!

Sources

(1) Kaakinen, E., Kokko, A., Aapala, K., Kalpio, S., Eurola, S., Haapalehto, T., Heikkilä, R., Hotanen, J.-P., Kondelin, H., Nousiainen, H., Ruuhijärvi, R., Salminen, P., Tuominen, S., Vasander, H. & Virtanen, K. 2008a. Suot. - Julkaisussa: Raunio, A., Schulman, A. & Kontula, T. (toim.). Suomen luontotyyppien uhanalaisuus. Osa 1. Tulokset ja arvioinnin perusteet. Suomen ympäristö 8/2008. S. 75–109.

(2) Page, S. E., Rieley, J. O., & Banks, C. J. (2011). Global and regional importance of the tropical peatland carbon pool. Global Change Biology 17, 798–818. https://doi.org/10.1111/j.1365-2486.2010.02279.x

(3) Kareksela, S., Ojanen, P., Aapala, K., Haapalehto, T., Ilmonen, J., Koskinen, M., Laiho, R., Laine, A., Maanavilja, L., Marttila, H., Minkkinen, K., Nieminen, M., Ronkanen, A.-K., Sallantaus, T., Sarkkola, S., Tolvanen, A., Tuittila, E.-S. & Vasander, H. 2021. Soiden ennallistamisen suoluonto-, vesistö-, ja ilmastovaikutukset. Vertaisarvioitu raportti. Suomen Luontopaneeli. https://doi.org/https://doi.org/10.17011/jyx/SLJ/2021/3b. 24.1.2022.

(4) Laine, A., Mehtätalo, L., Tolvanen, A., Frolking, S., Tuittila, E-S, 2019. Impacts of drainage, restoration and warming on boreal wetland greenhouse gas fluxes. Science of the total environment.

(5) Günther, A., Barthelmes, A., Huth, V., Joosten, H., Jurasinski, G., Koebsch, F., & Couwenberg, J. (2020). Prompt rewetting of drained peatlands reduces climate warming despite methane emissions. Nature communications, 11(1), 1644.

(6) Silvola, J., Alm,J., Ahlholm, U., Nykänen, H. & Martikainen P.J. 1996: CO2 fluxes from peat in boreal mires under varying temperature and moisture conditions. J. of Ecology 84: 219-228.

(7) Alm,J., Schulman, L., Silvola, J., Walden, J., Nykänen, H & Martikainen, P.J. 1999: Carbon balance of a boreal bog during a year with exceptionally dry summer. Ecology 80:161-174.

(8) Simola, H., Pitkänen, A., Turunen, J., 2012. Carbon loss in drained forestry peatlands in Finland, estimated by re-sampling peatlands surveyed in the 1980s. Europian Journal of Soil Science.

(9) Suomen luontotyyppien uhanalaisuus 2018: Luontotyyppien punainen kirja. Osa 1.