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Problem
The conventional, linear approach to Christmas tree consumption contributes to considerable land use – often on plantations with little diversity and weak ecosystem values. Although they take several years to reach the ideal size, conventionally cultivated Christmas trees are grown for just one use, after which they are incinerated.
Solution
Vuokrapuu’s solution redefines the traditional Christmas tree experience by offering recurring rentals of potted Christmas trees. The company buys commercially grown trees and plants its own. After use, these trees return to the company to continue their growth. Trees that have either been damaged or are at the end of their life cycle are repurposed into biochar instead of being incinerated. Biochar is a soil enhancer that the company can use for planting the trees. By combining rented trees with biochar, Vuokrapuu can create a closed-loop system.
Many people – even circular economy experts – think that as-a-service models only apply to technical materials such as electronics or plastics. This example shows that these business models also have considerable untapped potential for natural materials.
Riku Sinervo and Tim Forslund, Sitra
Biodiversity impacts
The solution reduces the need for cutting down trees for single-use purposes, reducing the need for additional land use and plantations with low biodiversity values. The production of biochar can also store a large amount of carbon dioxide that the wood itself accumulates. Biochar is porous, so it can absorb nutrients and water, making it a good substrate for planting spruce trees.
Benefits for the company
Recurring tree rentals create a steady revenue stream, tapping into the growing market solutions for nature. While it takes a conventionally grown Christmas tree 5-12 years to mature and the return on investment is only realised once, rentals make it possible to generate revenues every year and to rent out smaller, younger trees as well. Vuokrapuu’s biochar also provides an additional revenue stream.
