Carbon trading is still new, but already we are seeing interest from landowners looking to plant new woodland and organisations keen to buy the carbon units to offset their environmental losses.
As the trading of carbon credits is still a relatively new concept, it is important to seek professional guidance from the outset, both from surveyors and solicitors.
The market at present is buoyant, with carbon trading in the region of £5-15/tCO2e as companies see carbon trading as a way of compensating for the environmental loss.
Davidson & Robertson now has carbon units to sell on behalf of clients. Surveyor, Emma Kerr, is a Project Developer for the Woodland Carbon Code Scheme and has a fully validated project in South Ayrshire with 10,285 Pending Issue Units of carbon to sell.
There are also several other projects in Scotland and England coming onboard very soon.
If you are interested in buying carbon units contact Emma Kerr or the Woodland Team on 01900 268 633.
What is Carbon Sequestration and what are carbon units?
Trees carry out an essential ecosystem service by locking up carbon which is referred to as carbon sequestration. Forestry and woodland creation are therefore one way of mitigating climate change and providing public good. But how is this ec
osystem service valued financially?
The Woodland Carbon Code (WCC) is the UK’s voluntary carbon standard for woodland creation projects that recognises the value of carbon sequestration. It enables landowners to trade tonnes of sequestered carbon (carbon units) locked up in newly planted woodland.
The WCC enables landowners and forest managers to register newly planted woodlands on a public Environmental Register. Once registered, the new woodland is validated by the Soil Association or Organic Farmers and Growers to validate the number of carbon units the new woodland will sequester over the lifetime of the woodland.
Carbon trading is flexible, but the application process requires varying pieces of supporting evidence to calculate the pending tonnes of carbon – such as planting plans, ground preparation records and a detailed project design document.
In November 2019 the English Government announced a £50 million scheme to incentivise woodland creation including the Woodland Carbon Code Guarantee whereby the Government would purchase Woodland Carbon Units at an agreed price. The third Government auction took place at the end of October 2020. This scheme is not yet applicable in Scotland.
Planting and registering with the Woodland Carbon Code
At present newly created woodlands can be registered within 2 years of the first planting date. However, very soon, new woodland projects will only be eligible to register under the Woodland Carbon Code within 6 months after the first planting date. Registration of the new woodland is free, but validation can cost in the region of £750 – £1,150 and can take 4-6 months.
Woodland creation appears a win-win. Not only are the UK Government incentivising woodland creation by providing grant funding for planting, but in addition, you can secure extra income from trading the carbon the trees absorb. But time is of the essence… so get planting, get applying, get trading. Find out more by calling the D&R Woodland Team on 01900 268633
