BP's Failed Attempt to Go 'Beyond Petroleum'
The Woodland Carbon Guarantee provides an opportunity for farmers in England to sell promised carbon units to the government via a reverse auction. However, if at any point the farmer finds an interested buyer from the voluntary market who is willing to pay more for the units, they are able to switch to this option.
First, the project must be registered with the Woodland Carbon Code, which sets out the Forestry Commission standard and outlines how to measure carbon units. During this process, the amount of carbon the trees will capture — based on tree species and the management plan — can be calculated. This calculated amount of carbon can then be placed into the reverse auction at an advised price. Farmers can either sell Pending Issuance Units promises of carbon units to be delivered or Woodland Carbon Units once woodland and carbon units are delivered. Grants for the tree planting a minimum of 3ha required are on offer through the Forestry Commission.
Five years after the project start date, it must be verified by assessors from Organic Farmers and Growers or the Soil Association although the land does not have to be registered organic. Farmers will receive payment at each verification interval in line with how much carbon is being sequestered by the planted trees — therefore, there is a financial incentive to manage the woodland well.
The scheme certainly deserves consideration from farmers looking at their options for any marginal or non-core agricultural land, says Mike Chapman, senior forestry manager at Savills. See also: Tips on how to fill the BPS cash gap on your farm. John and Catherine Mair farm about ha of Grade land in Cambridgeshire.
A particular challenge for them is blackgrass and the cost and effectiveness of its control. The couple worked with Greg Beeton to successfully enter the first Woodland Carbon Guarantee auction and said:. Mr Beeton said the family identified the worst fields for blackgrass and have chosen those for woodland creation, leaving a still sizeable arable operation but just focusing on the best land.
For those outside England who cannot sell directly to the government via public auction, a private market is on offer.
Currently, these private buyers are bigger companies looking to offset carbon as part of their corporate responsibility and public perception goals, such as oil companies, she says. However, another difference for projects outside England is that the farmer should register with the Woodland Carbon Code after the trees have been planted. See also: Exit payments: What should farmers do to prepare for ? There may be a clause in the tenancy agreement that states the landlord reserves the ownership rights for trees — if so, as well as obtaining permission, it may also be worth requesting a variation to or removal of this.
However, advisers acknowledge it is not straightforward for a tenant to enter a long-term contract without the security of an equally long-term tenancy, meaning short farm business tenancies are a particular challenge.
Energy White Paper heralds low-carbon economy
The Peatland Code — a voluntary certification standard for UK peatland projects — launched in but has so far led to limited opportunities for farmers to benefit financially, with advisers saying the market is not yet set out. In general, the aim is for dried-out peatland to be re-wetted and for landowners to be paid for improving it, rather than just having it. All Rights Reserved.
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