Third Woodland Carbon Guarantee auction set for autumn

Land managers such as water companies and farmers will be able to secure guaranteed revenue for tree planting under a new Woodland Carbon Guarantee auction just announced by Defra and the Forestry Commission.

Under the scheme, which has already run two previous auctions, successful bidders can 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. Defra 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.”

£10m has been made available from the scheme’s £50m pot for the next auction. Interested parties need to apply by 11 October at ahead of the next auction which will take place online between 26 October and 1 November.

In the second auction, which closed in June 2020, the Forestry Commission offered 27 contracts to help stimulate the creation of 1,517 hectares of new woodland specifically to help tackle

combat climate change. The average price of bids accepted in the second auction was £19.71 per woodland carbon unit.