FARMERS are encouraged to make most of a government scheme offering an opportunity to sell the carbon trees in their land capture.
The Woodland Carbon Guarantee is a new scheme which incentivises tree planting by ‘selling’ the carbon dioxide they capture in the form of ‘carbon credits’.
£50 million incentive scheme to help accelerate woodland planting rates across
England to mitigate for the effects of climate change.
The Guarantee could provide landusers with a regular long-term income to help them manage their new woodland.
The credits’ price is guaranteed once it’s been initially agreed, and the government will buy them every five or 10 years up to 2055/56; providing regular long-term income for those who plant trees.
The scheme is open to land managers who are owner occupiers, tenants, landlords and licensors, as long as they have control of the land.
To apply, you must register for the ‘Woodland Carbon Code’ – which measures how much carbon your trees will capture.
In order to bid in the auction you will need to calculate how much money you need (per tonne of CO2) in order to make your project financially viable and worthwhile.
If you are successful in the auction, the government will buy the CO2 for the price that you bid – which is protected against inflation for the life of the contract.
If you prefer, you can still choose to sell your CO2 on the open market rather than to the government.
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