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Every five to seven years, Skogforsk, the Swedish forestry research institute, carries out its comprehensive Timber Value Test – the forest industry’s most established and independent assessment of how well harvesters preserve timber value. Source: Timberbiz In the 2025 test, several leading machine manufacturers took part, including Komatsu Forest with a brand new 951 equipped with the C144 harvesting head. The test focuses exclusively on timber value, not on productivity or fuel consumption. Evaluated areas include positioning accuracy, measurement accuracy, cross-cut quality, and functions for value and assortment optimisation. A new parameter in this year’s test was the accuracy of stem and log positioning. Here, Komatsu demonstrated very strong results. Stem positioning showed an average deviation of 16 cm; the highest precision recorded in the test. Log positioning also showed high accuracy, although in that test Komatsu Forest was the only participating manufacturer. The results reflect Komatsu’s long-term commitment to precision within Smart Forestry, where reliable positioning data is becoming increasingly important for the future of digital forestry. Measurement accuracy is a key factor in preserving timber value. In the test, the Komatsu harvester measured diameter with 83% of logs within ±4 mm, placing it among the top performers. Length measurement was also at a high level, with particularly strong accuracy for saw logs. This, in turn, provides solid conditions for consistent bucking and stable value recovery over time. The Timber Value Test provides the industry with an objective and comparable picture of how different solutions contribute to preserving timber value. For Komatsu Forest, the results show strong performance in several key areas, not least precision and measurement accuracy. At the same time, the test offers valuable guidance for continued development, with a focus on long-term, value-driven harvesting.

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Indonesia is opening its forestry carbon market to communities and private players under a new regulation designed to accelerate emissions trading and unlock the economic value of its vast tropical forests. Source: Jackarta Globe The government has officially launched a new rule governing carbon trading in the forestry sector, allowing companies to offset emissions by funding forest conservation, while enabling local communities to earn income from protecting ecosystems. Forestry Minister Raja Juli Antoni said the regulation marks a shift toward a more inclusive and transparent carbon market after years of slow progress. “This regulation is a concrete step to strengthen governance in forestry carbon trading, so it becomes more credible, transparent, and inclusive. We want to ensure that the economic benefits of carbon are felt by communities while supporting national emissions reduction targets,” he said at the launch in Jakarta. The rule, Forestry Ministry Regulation (Permenhut) No 6/2026, sets out the mechanism for carbon trading through an offset scheme, allowing emitters to compensate for greenhouse gas output by investing in sustainable forest management and protection. Beyond market development, the policy is aimed at reshaping who benefits from conservation. The government said communities living around forests will no longer be passive observers, but active participants in carbon management. Raja Juli said that the forestry carbon market must not become exclusive to large corporations, highlighting expanded access through social forestry and customary forest schemes. “Indigenous communities and forest farmers who protect forests, maintain forest cover, and preserve ecosystems will now have the opportunity to gain economic benefits from carbon,” he said. “This is a form of state recognition for frontline forest guardians and a tangible expression of social justice in the transition toward a green economy.” Presidential envoy for energy and climate Hashim Djojohadikusumo said the policy reflects Indonesia’s growing role in global climate action. According to Hashim, Indonesia’s carbon pricing framework has been presented at international climate forums, including in Brazil, and received positive responses, signaling rising confidence in the country’s potential as a carbon market player. “This is a concrete demonstration of Indonesia’s commitment to balancing economic development with environmental protection. The international community sees strong potential in Indonesia’s forestry-based carbon trade,” he said. The government expects the regulation to accelerate the formation of a transparent and accountable carbon market, while helping meet Indonesia’s Nationally Determined Contribution (NDC) targets.

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Forestry has long sat at the margins of the insurance market, often folded into broader property portfolios and lightly scrutinised. That position is becoming harder to sustain. The class now requires a level of focus and expertise the market has not always applied, said Daniel Longden, head of forestry at Orvia Underwriting. Source: Insurance Business The sector differs from traditional property risks in one fundamental way: it is constantly changing. Trees grow, are harvested and replanted, altering the risk profile year by year. That dynamic sits alongside an exposure to catastrophe events that can erase entire areas in a single incident. “When you look at a forest fire or a hurricane, for example, they can just flatten entire areas or burn entire areas of forestry,” Mr Longden said. “It’s a truly cat-exposed business.” Even neighbouring forests can behave very differently. Variations in species, management practices and geography mean that no two risks are alike. “One of my favourite things that I always say about forestry insurance is that no two submissions are the same. Everything is entirely different.” This variability complicates underwriting and limits the development of standardised data sets, helping explain why the class has remained relatively niche despite growing investor interest. The way forestry risk is assessed has shifted markedly in recent years. Where underwriters once relied heavily on historical loss data and third-party reporting, satellite technology now offers a more direct view of exposure. “We review a 25-year history of what’s called burn scar data: the scar map of a burn over 25 years around the plantation and the surrounding areas,” Mr Longden said. “That has been a huge influence on the way we price, because we can see the data without relying on the client to tell the truth, or on fire associations to provide meaningful, accurate data.” Yet improved data has not removed uncertainty. Climate change is reshaping loss patterns, rendering long-term historical data less reliable. “Traditional pricing is backward-looking,” he said. “The issue with climate change is that it’s forward-looking and getting worse.” The response has been to shorten data windows and apply additional catastrophe loadings, particularly in regions already experiencing heightened fire and wind activity. Events once considered rare are occurring with increasing frequency. “One of the biggest things we’ve seen in recent years is that the one-in-250-year events are becoming one-in-100-year events, or even one-in-50-year events,” he said. Despite advances in modelling, underwriting retains a strong human element. “We’ll have all the data in front of us, we’ll have looked through everything, but it comes back to the team to sit down and work out what we know about that region, what we know about the risk, and what we’re comfortable with,” Mr Longden said. Interest in forestry as an asset class has expanded rapidly, driven in part by carbon markets and the search for long-term, stable returns. Investors range from small landowners to large timber investment management organisations overseeing millions of acres. “It’s an area that is drawing investment from the biggest investors around the world,” Mr Longden said. Forestry’s appeal lies partly in its insulation from geopolitical and financial volatility. “Trees don’t fight with people. Trees don’t make people angry. People don’t want to invade someone for their trees,” he said. “It’s a very safe asset class.” Yet insurance capacity has not kept pace. A history of poorly understood risks, often written within property treaties, has left some reinsurers wary. This retrenchment has contributed to a supply imbalance. Many forest owners remain uninsured, with self-insurance acting as the market’s primary competitor. High-risk regions dominate the insured pool, reinforcing elevated pricing and limiting broader uptake. Advances in technology are reshaping how forestry risks are analysed and priced. Satellite data, global weather models and internal pricing tools now allow underwriters to assess risks in regions that were previously difficult to evaluate. Artificial intelligence has also begun to play a role, particularly in assessing unfamiliar markets and geographical locations. “AI gives you the ability to go in and really dig deep into what the actual feelings on the ground are about forestry, what regulations they have, what management practices they tend to observe, and how it behaves as an area from a forestry perspective,” he said. Even so, he remained clear about its limits. “That final sit-down and discussion will never be replaced by technology, as it does not see the full picture,” he said. The challenge now is less about access to better tools than the ability to use them well. Without that depth of expertise, forestry risks will continue to be misjudged or sidestepped, even as climate volatility makes them harder to ignore.

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