Meeting CO₂ reduction targets is much discussed here in Latvia too, and there are companies devoting a great deal of attention to achieving those targets. What experience is there in this respect in the United Kingdom, where great emphasis is placed on meeting national targets in the context of climate issues?

In Scotland, roughly half of the applications for the creation of new woodland areas have been submitted for projects covering no more than 20 hectares. Many have been submitted by landowners whose main occupation is farming. Interest in integrating wooded areas into farm businesses is to be encouraged, as it brings many benefits, such as providing shelter for livestock, potential income from timber, a supply of fuel and, of course, increasing biodiversity on the holding and mitigating climate change. Landowners have one further opportunity that can provide additional income – registering the new stand under the United Kingdom's woodland carbon code (UK Woodlands Carbon Code).

The code is an internationally approved standard that builds confidence among buyers of carbon credits, farmers, buyers of landholdings and other interested parties, demonstrating that the carbon credits obtained by planting woodland are genuine and permanent. They also make a further contribution towards meeting CO₂ emission reduction targets. In essence, it is a way for landowners to obtain carbon credits while being confident that what they are doing is sound.

Landowners can register their woodlands under the woodland carbon code. This allows them to generate carbon units that they can sell to companies wishing to offset CO₂ emissions, or use against the emissions of their own property or business.

Projects must meet a number of criteria (known as eligibility criteria) in order to satisfy carbon market participants that they will produce high-quality carbon credits. One of the most important rules is that the land must not have been classed as woodland for at least 25 years. This points to the importance of carbon credit revenue in the decision to plant trees.

The additional income from carbon credits can convince landowners that creating a new woodland area is a financially worthwhile undertaking. It is part of an effort to work with farmers to promote the benefits of establishing woodland on farms (relevant in Latvia too, since we encounter a certain amount of negative sentiment towards proposals to afforest lower-fertility land in order to improve CO₂ sequestration). In the United Kingdom the process has been furthered by the Integrating Trees Network (Integrating Trees Network). Growing trees on farmland is an excellent way to secure benefits for livestock farming, thereby raising productivity levels and improving the environment while helping to address climate problems – as is emphasised, for example, by those delivering the Scottish initiative of the United Kingdom's woodland carbon code.

Establishing a mixed stand of native tree species can generate 400 or more carbon credits per hectare over 50 years. At current prices of around 20 pounds sterling per credit, planting 10 hectares of woodland could give a farmer an income of up to 80,000 pounds sterling (9,300 euros per hectare). The credits can be sold as soon as the project is approved, and they can also be sold over time to provide more regular income.

Under the woodland carbon code, more than 5,000 hectares of new woodland were approved in Scotland in 2022/23, which is 33% more than in the previous year. The number of projects registered and ready for approval rose by more than 10% in 2022/23. Scotland currently has more than 500 such projects, which shows active participation by landowners. Creating new woodland areas is the principal aim of Scottish forestry. Scottish Forestry is working very actively in this respect. In 2023, for example, applications to the Forestry Grant Scheme were approved covering almost 12,000 hectares, which is a very good figure.

To sum up the above – what is the United Kingdom's woodland carbon code (UK Woodland Carbon Code)?

The woodland carbon code is the main mechanism for creating new woodland areas. Does the code stimulate the creation of new woodland? Yes, definitely! The aim of the carbon market is to encourage the creation of woodland that would not otherwise be created. The additional income from carbon credits is the deciding factor in whether a farmer or landowner chooses to establish a new stand.

Over the past five years, roughly 20-25% of new planting in Scotland has been carried out under the woodland carbon code. For example, one of the Scottish forestry companies – Scottish Woodlands – has been involved in Woodland Carbon Code projects since 2014. It has gained experience in providing clients with investment opportunities under the Woodland Carbon Code. The company has successfully delivered schemes covering anything from a few hectares to several hundred hectares, as well as native woodlands and commercial conifer stands. Scottish Woodlands Ltd currently holds a portfolio of more than 200 carbon projects intended to sequester 2.5 million tonnes of carbon dioxide equivalent. The company's "carbon team" is involved in a variety of carbon projects, from the creation of new woodland to peatland restoration schemes.

Woodland and peatland carbon is tradable and has value

1. Carbon dioxide sold through tree planting or peatland restoration can provide additional income to give a new project a financial lift.

2. Verified carbon can be used to offset carbon emissions generated in the United Kingdom.

For example, the company offers a wide range of services, from project delivery, the design of new woodland areas, woodland establishment and planting, through to long-term peatland and woodland management and timber harvesting. The company's "carbon team" has the skills and knowledge needed to ensure that an investment's carbon opportunities are developed and its potential is used to the full.

* The woodland carbon code (UK Woodland Carbon Code) is the United Kingdom's standard for afforestation projects aimed at mitigating climate change. It provides independent validation and verification, as well as confidence in the levels of carbon sequestration in woodland restoration projects and their contribution to mitigating climate change. The code, which sets out the requirements for project development and management, was created in 2011 to promote best-practice procedures for organisations wishing to establish woodland in order to reduce carbon emissions. Compliance with the code means that woodland carbon projects are managed responsibly and sustainably in line with national standards, that they have credible calculations of the amount of carbon that will be or has been sequestered as a result of tree planting, that they are publicly registered and independently verified, and that they meet clear criteria and standards to ensure real carbon sequestration.

Every woodland carbon code project is included in the United Kingdom's register of woodland carbon projects; the register services are provided by Markit. All project developers and carbon buyers have an account in the register, which also holds project information and documentation, together with the facility to record carbon units, track their ownership and retire them. Projects and their documentation are initially validated by a third party accredited by the United Kingdom Accreditation Service (UKAS). During validation, agreement is also reached on a programme of ongoing monitoring of the woodland. Projects are verified at regular intervals by an accredited third party.
Woodland carbon code projects generate woodland carbon units which, once verified, can be used by United Kingdom companies to offset their gross emissions.

Requirements of the code

1. register the project in the United Kingdom's land carbon registry, stating the location and enclosing a map and a carbon calculation

2. comply with national forestry standards to ensure that the woodland is managed sustainably and responsibly

3. have a long-term management plan

4. use standard methods to estimate the amount of carbon to be sequestered

5. demonstrate that the project delivers carbon dioxide benefits over and above what would otherwise have occurred