GovWire

How woodland creation can help

Creating new woodlands is a proven way to help tackle the effects of climate change they act as a natural carbon sink. Trees do this through the process of photosynthesis, in which leaves absorb atmospheric carbon dioxide and release oxygen whilst locking up carbon. Some carbon enters the woodland soil through fallen leaves and is stored in the long-term, helping to form the trees roots, trunk, branches and leaves this process is known as carbon sequestration. However, planting a new woodland isnt just good for the planet it could help your business too.

Growing a woodland could make you an income from selling official carbon units, or, with increasing demand for net zero supply chains, by helping to offset your own business emissions. To sell carbon units, you must register and validate your woodland and its potential carbon capture with the Woodland Carbon Code before you have planted it.

Trees sequester carbon at different rates

Conifer trees normally grow faster in their early life and therefore absorb more carbon dioxide earlier, when compared to native broadleaf woodlands. However, broadleaf woodland can store larger amounts of carbon in the long run. The same can be said when managing a woodland to provide continuous canopy cover whereby the forest canopy is maintained without clear felling resulting in larger amounts of carbon storage. Young, fast-growing trees will capture carbon dioxide at a quicker rate, while mature trees can act as carbon stores for hundreds of years. Appropriate tree species and woodland management techniques are needed to realise these carbon benefits.

Woodland Carbon Code

The Woodland Carbon Code (WCC) is the quality assurance standard for UK-based woodland creation projects hoping to create carbon offsets and is internationally recognised for its high values for sustainable forestry and carbon management. The WCC generates independently verified carbon units, backed by the Government and experts within forestry and the carbon market. More information can be found on the WCC website: www.woodlandcarboncode.org.uk

Its important to note that the WCC is not a grant and allows woodland creation projects to benefit from blended finance models, which can help to pay for the associated costs of tree planting.

You must register your woodland creation project with the WCC before planting trees. For a new woodland creation project to be validated with the WCC, it must pass associated additionality tests to ensure the project would not have gone ahead without funding from carbon offsetting, or the desire to make income from that source. More information can be found on additionality by visiting: Woodland Carbon Code page.

Why act now?

Never has there been a more important time to plant new woodland to help tackle the climate emergency. By planting more trees, and protecting existing woodland, together, we can help counteract some of the harmful effects of greenhouse gas emissions. Financial support and expert advice are available now to support your woodland creation goals.

For guidance on woodland creation and information on grants and available support, visit: woodland creation overview.

How the Woodland Carbon Code can benefit you

New woodland creation projects which meet WCC standards could provide an alternative income stream in two ways:

• through the sale of Pending Issuance Units (PIUs) an estimate of the future carbon dioxide the woodland will capture once the trees have grown. This can generate upfront income to help with the establishment of woodland. Farmers and landowners can sell PIUs to companies as soon as their woodland creation project is validated. This would enable companies purchasing woodland carbon PIUs to state they are working towards becoming carbon neutral as they are a promise of future carbon sequestration.

• alternatively, farmers and landowners can wait until the woodland has sequestered carbon to sell as verified Woodland Carbon Units (WCUs), the value of which is likely to be higher compared to PIUs as they allow companies to state their carbon neutrality.

PIUs convert into WCUs at a certain point in time, once the promise of future carbon has been verified as converted into actual carbon storage.

Depending on your wider woodland objectives, timber for production and woodfuel can generate additional income if woodlands are actively managed.

Further savings can be gained from commercial forestry as it is not subject to Income or Corporation Tax, and the sale of voluntary carbon credits is outside the scope of VAT. We would recommend that you seek professional independent tax advice before making any long-term decisions.

A woodland creation project validated and verified by the WCC reassures companies buying carbon units that the project is credible. The WCC is also endorsed by the International Carbon Reduction & Offset Alliance, providing greater market trust which can result in companies paying higher prices for both PIUs and WCUs.

How much income can be generated from selling carbon units?

Woodland creation projects can generate a healthy return with carbon prices ranging from 10 to 30+ per unit. Projects can produce anywhere from 100 units/ha to over 500 units/ha over 100 years, which can generate 1,000/ha to 15,000+/ha through the sale of carbon units via the WCC over the same time period. There are costs associated with using a broker or project developer to manage your woodland project. Find out how to sell your carbon units by visiting UK Woodland Carbon Code page.

Factors that can affect carbon unit prices include:

• the vintage of a carbon offset can influence how much companies are willing to pay for carbon units. Each PIU has a serial number attributed to it, to refer to the year in which that PIU will convert or is predicted to convert to a WCU. A WC

  

  View the original news story