Woodland Carbon Code – Opportunities for Landowners

The Woodland Carbon Code (WCC) is the quality assurance standard for woodland creation projects in the UK. It is backed by the UK Government, and the UK forestry industry, to support the UK’S goal to achieve net zero by 2050.

Put simply, the WCC is designed to encourage landowners to plant trees. As each tree grows, it will naturally absorb carbon dioxide from the atmosphere over its lifetime. The WCC provides a framework for measuring the volume of carbon dioxide stored in a new woodland by giving a mechanism for calculating the total carbon sequestration a woodland can achieve over the lifetime of the trees.

That WCC calculation is then used to generate high integrity, independently verified and certified carbon units, alongside sustainable forestry and carbon management.

The process is such that once a new planting scheme is devised, the carbon sequestration potential can be calculated, and validated in terms of the WCC. Thereafter, Pending Issuance Units (PIUS) are generated. A PIU is, essentially, a promise to deliver future carbon sequestration achieved by a tree growing successfully. Once the tree has grown, and is independently verified as meeting the necessary standard, the PIU converts to a Woodland Carbon Unit (WCU). 1 WCU = 1 tonne of CO2 sequestration. WCC schemes typically last between 35 and 100 years, so do bring long term commitments.

PIUS and WCUS have a value, which a woodland owner can benefit from. That benefit may come from selling a PIU before it converts to a WCU (ie selling the promise to deliver the sequestration), or holding off, and waiting to sell a WCU (ie an already delivered unit of sequestration).

Otherwise, if an owner does not sell a WCU, they can use the units to offset their UK based carbon emissions. A WCU can only be used once, and so once a WCU is used to offset emissions, it is ‘retired’. This rigorous standard ensures there is no carbon double counting and adds to the integrity of the WCC and the UK Carbon Market in the global sphere.

For the simple reason that the WCU is a verified unit of delivered carbon sequestration, WCUS typically carry a higher value than a PIU. There are many price variables, including the design, implementation and size of a planting scheme, potential buyer association with a project, and, perhaps most importantly, the quality of the unit.

Price treads are emerging as the market develops, but the current value of a Carbon Unit is not completely clear. A very rough guide at present is £20 to £50 per Carbon Unit, and for the most part, prices are on the rise. That is particularly so with carbon emission reduction coming to the forefront of public debate (both in the UK and globally), and carbon offsetting through nature based solutions will have a part to play.

Some of the benefits for a landowner of carrying out a scheme under the WCC are that:

• Projects have recognised procedures and standards to work to, creating benefits to wildlife and biodiversity.

• Potential buyers are reassured that they are investing in a responsible scheme, backed by, and governed in accordance with, a reputable standard.

• Owners can generate some short-term income from the sale of PIUS, or longerterm income from the sale of WCUS.

CONTACT Andrew Robertson is a Senior Solicitor at Turcan Connell, Edinburgh, specialising in rural land matters, forestry, and advising landowners and businesses looking to provide nature-based solutions to climate change through the UK carbon market. If you would like to discuss any points raised in this article, the author would be happy to discuss. Tel: 0131 228 8111 www.turcanconnell.com