UK Government announce next auction for Woodland Carbon Guarantee initiative

Land managers offered guaranteed income for tree planting after third auction of Woodland Carbon Guarantee is announced by the UK Government.

Farmers and land managers across England are encouraged to apply for the Woodland Carbon Guarantee scheme by 11 October, ahead of the next auction which will take place online between 26 October to 1 November.

The Woodland Carbon Guarantee is a Forestry Commission administered £50 million scheme that aims to help accelerate woodland planting rates and permanently remove carbon dioxide from the atmosphere.

The scheme gives land managers the option to sell Woodland Carbon Units to the government at a guaranteed price protected against inflation.

New tree planting projects are eligible for long-term payments for the amount of carbon a new woodland will store, providing new income for farmers and land managers.

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 current government manifesto commits to increase planting across the UK to 30,000 hectares per year by 2025.

This announcement follows the success of the second auction which closed in June 2020 and saw 27 contracts offered by the Forestry Commission to help stimulate the creation of 1,517 hectares of new woodland specifically to help combat climate change.

Sir William Worsley, Chair of the Forestry Commission, said: “This pioneering scheme could be the perfect fit for many farmers and land managers looking to help tackle the climate and nature crises now upon us.”

“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. I strongly encourage anyone thinking about planting to sign up ahead of the next auction in October.”

The government say encouraging diverse woodland types and tree species is a key factor in the Forestry Commission’s efforts to increase tree planting rates in England.

Forestry Minister Lord Goldsmith said: “This scheme provides 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.”

Find out more about the scheme and how you can apply here.