Farmers and landowners urged to take part in "pioneering scheme" to increase tree planting and profit from selling 'carbon units'

The £50m scheme which aims to encourage the rate of woodland planting and combat carbon emissions can provide a new income stream for land businesses.

Sir William Worsley, chair of the Forestry Commission and owner of Hovingham Hall in North Yorkshire, described it as a “pioneering scheme” which he said, could be “the perfect fit” for many farmers and land managers looking to help tackle the climate and nature crisis.

New tree planting projects are eligible for long-term payments for the amount of carbon a new woodland will store.

Following an online auction process, successful bidders will be offered the option to sell woodland carbon in the form of Woodland Carbon Units – a financial value given to each tonne of carbon stored – to the government over 35 years at a guaranteed price protected against inflation.

The announcement a third auction will be taking place online between October 26 and November 1 comes after the success of the second round which closed in June and saw 27 contracts offered by the Forestry Commission. These will help create 1,517 hectares of new woodland specifically to help combat climate change.

“Results from the second auction show the scheme is growing in its success, providing more land managers with long-term income support for creating new woodland,” Sir William said.

Anyone wanting to join the third auction is encouraged to apply for the Woodland Carbon Guarantee scheme by October 11. “I strongly encourage anyone thinking about planting to sign up ahead of the next auction in October,” Sir William added.

Encouraging diverse woodland types and tree species is a key factor in the Forestry Commission’s efforts to increase tree planting rates in England. This scheme aims to achieve a varied range of projects across different locations and scales.

The Forestry Commission said the scheme reflects the Government’s confidence in the continued growth of markets for woodland carbon, as landowners will have a revenue stream in future from selling carbon on the domestic market.

The average price of bids accepted in the second auction was £19.71 per woodland carbon unit and the commission said the outcome of the second auction, along with the first, showed positive signs of encouraging projects in parts of the country where tree planting has been lower in recent years.

Forestry Minister Lord Goldsmith said the scheme provided landowners with the long-term certainty of a guaranteed payment rate for carbon which their trees lock up and store.

“From helping to reduce carbon emissions, encouraging biodiversity and nature recovery, and improving people’s health and wellbeing, the benefits of trees are undeniable,” he said.

“I urge all land managers to consider planting roots and to sign up to the Woodland Carbon Guarantee as we rebuild our country to ensure a greener and more resilient future.”

Before applying for the guarantee, land managers will need to have registered with the Woodland Carbon Code which provides information on verifying and recording carbon capture.