While traditional forest management systems aim at maximizing timber production, sustainable forest management focuses on the multiple benefits of entire forest landscapes. The latter is now at the top of policy agendas. This calls for learning through evaluation to support the implementation of policies aiming towards multi-functional forest landscapes. The aim of this study is to quantify the economic trade-offs among natural, current, and re-wetted peatland forests using seven indicators, viz. drainage maintenance, rewetting, water retention, wood production, and three types of carbon sequestration as economic indicators. We discuss ways to adapt to and mitigate effect of forest draining on climate change toward securing multi-functional forest landscapes. The cost benefit analysis showed that in a potential natural state, Lithuania's peatland forests would deliver an economic benefit of ∼€176.1 million annually. In contrast, compared to natural peatland forests, the drainage of peatland forests for wood production has caused a loss of ∼€309 million annually. In comparison, peatland forest rewetting is estimated to increase the economic value by ∼€170 million annually. This study shows that satisfying different ecosystem services is a balancing act, and that a focus on wood production has resulted in net losses when foregone values of water storage and carbon sequestration are considered. Valuation of different sets of ecosystems service benefits and disservices must be assessed, and can be used as a tool towards creating, implementing and monitoring consequences of policies on both sustainability and biodiversity.

Peatlands are the “kidneys” of river basins. However, intensification of agriculture and forestry in Europe has resulted in the degradation of peatlands and their biodiversity (i.e., species, habitats and processes in ecosystems), thus impairing water retention, nutrient filtration, and carbon capture. Restoration of peatlands requires assessment of patterns and processes, and spatial planning. To support strategic planning of protection, management, and restoration of peatlands, we assessed the conservation status of three peatland types within the trans-border Neman River basin. First, we compiled a spatial peatland database for the two EU and two non-EU countries involved. Second, we performed quantitative and qualitative gap analyses of fens, transitional mires, and raised bogs at national and sub-basin levels. Third, we identified priority areas for local peatland restoration using a local hotspot analysis. Nationally, the gap analysis showed that the protection of peatlands meets the Convention of Biological Diversity’s quantitative target of 17%. However, qualitative targets like representation and peatland qualities were not met in some regional sub-basins. This stresses that restoration of peatlands, especially fens, is required. This study provides an assessment methodology to support sub-basin-level spatial conservation planning that considers both quantitative and qualitative peatland properties. Finally, we highlight the need for developing and validating evidence-based performance targets for peatland patterns and processes and call for peatland restoration guided by social-ecological research and inter-sectoral collaborative governance.