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Climate-smart forestry (CSF) is considered a promising approach for climate change adaptation and mitigation strategies, as highlighted in several European policy documents. This paper describes a prospective approach to introducing an incentive-based scheme to facilitate the implementation of CSF through a case study in Iceland. It is argued that the payments for ecosystem services (PES) scheme allows for effective CSF management and long-term sustainability if introduced in compliance with local, cultural, and social values. In a case study of an Icelandic afforestation programme, we conducted an institutional analysis of the PES scheme and assessed its effect on the sustainable provision of forest ecosystem services for the long term. We provide preliminary findings on the application of CSF in the 30-year-old Icelandic afforestation programme scheme. The perspectives of forest and policy experts, as well as local farmers participating in the scheme, were crucial for assessing the effectiveness of PES scheme performance in Iceland. [ABSTRACT FROM AUTHOR]

Social innovation is perceived as a collaborative response from civic society actors to societal challenges and as such is increasingly being recognised as a driver for sustainable development. Social innovation promotes civic values, particularly in marginalised rural areas that are often struggling with biophysical and market limits, as well as shortages of public funding. In order to identify diverging development paths (DDPs) for social innovation, in this article, we use two large sets of empirical material from the SIMRA research project. First, for meta‐analyses of social innovation in diverse situations and contexts, we use 211 validated social innovation examples. Second, we rely on 11 in‐depth cases to reflect on the contexts and dimensions of social innovation. The elaboration of conceptualisation and deductive analyses result in the creation of a typology of social innovation DDPs, with four DDPs identified and explained. The article provides an improved understanding of how social innovation emerges and develops and how to capture processes and resulting changes in marginalised rural areas in order to turn such areas' diversity into strengths. An important conclusion is that social innovation involves both local and external actors, yet cannot develop without specific internal local activity and local knowledge. [ABSTRACT FROM AUTHOR]