Valuing Forest Ecosystem Services

Practical experience from theWoodland Carbon Code

Dr. Pat SnowdonForestry CommissionEdinburgh, UK

forestry.gov.uk/carboncode

Outline

• Background

• The Code

• Applying - Practicalities

• Examples

• Future developments

forestry.gov.uk/carboncode

Objectives

• Ensure high standards in UK forest carbon market

• Clarity and transparency to bolster market confidence

• Rigorous scientific basis

• increase private investment in woodland creation

• similar principles to VCS, GS…

forestry.gov.uk/carboncode

•Set framework that could support mandatory market in future

forestry.gov.uk/carboncode

Governance

UKWASUK Woodland Assurance Standard

WCC Advisory Board

WCC Executive Board

iemaInstitute of Environmental

Management & Assessment

forestry.gov.uk/carboncode

Development

Design

Pilot

Launch group certification

Launch carbon registry @ Markit

2007 - 2011

2010 -2011

July 2011

2013

Launch Woodland Carbon Code

2013

Still developing…

Units available for sale

2014

forestry.gov.uk/carboncode

UK as of 30 June 2014:

• >200 Projects registered

• 14,400 ha woodland

• 5.7 MtCO2 over lifetime

• 87 projects validated

• 3,100 ha woodland

• 1.5MtCO2 over lifetime

Wales

• 7 projects registered

• 3 projects validated

Verified credits available from 2016

WCC awards:

2013: Climate Week Awards: Finalist

2014: Environmental Finance Survey:

3rd voluntary standard globally

forestry.gov.uk/carboncode

How it fits in

Environmental Reporting Guidelines:Including mandatory greenhouse gas emissionsreporting guidanceJune 2013

• All UK woodland creation contributes to the UK’s emissions reduction target (Kyoto Protocol)

• Mandatory GHG emissions reporting for companies listed on stock exchange

• Verified WCC Units can be used within the UK:

• To compensate for organisation’s emissions

• In claims of carbon neutrality of an organisation / product/ event

• Verified WCC Units CAN’T be:• Traded internationally• Used in EUETS• Used in the CRC Energy Efficiency

Scheme

forestry.gov.uk/carboncode

The Code - Scope

Includes:

• Woodland creation

• Carbon sequestration and emissions within a woodland

Doesn’t include:

• Changes to management of existing woodlands

• Carbon stored in forest products

• Substitution effects (wood products or fuel)

• Avoided emissions from previous landuse

forestry.gov.uk/carboncode

Requirements

• UK Forestry Standard +

• Additionality

• Legal : Financial : Barrier

• Permanence

• Forestry Act, Buffer (15-40% of project carbon)

• Predict and monitor carbon sequestration

• Baseline : Leakage : Project benefit

• Certification

• Validation

• Verification + 5 and then every 10 years

forestry.gov.uk/carboncode

UK Woodland Carbon Registry

forestry.gov.uk/carboncode

Applying

1. Employ a project developer or DIY?

2. Register your project / group (..within 2 yrs planting)

3. Design your project / group

PDD: Carbon calculation : Finances : Risk : Other evidence

4. Get certified (=‘Validated’ .. Within 3 yrs registering)

5. Stay certified (=‘Verified’ .. + 5 and every 10 years)

Applying

forestry.gov.uk/carboncode

forestry.gov.uk/carboncode

Income & Use

• Carbon income in advance = a one off payment at outset.

+ Helps landowner with establishment cost

+ Traditional forestry products as future income.

- Carbon Buyer has to wait to ‘use’ credits

• Invest for the future = sell carbon as its sequestered at each verification.

+ Regular future income from carbon as well as forestry products

? Carbon price could be higher in future

+ Carbon Buyer can ‘use’ credits immediately

forestry.gov.uk/carboncode

How much carbon and £ ?

Scenario Saleable/Claimable Carbon Sequestration by year 50

Saleable/Claimable Carbon Sequestration by year 100

Sitka Spruce, 2.0m spacing, Yield Class 16, mounding on organo-mineral soil. Thinned to standard regimes, but no clearfell. 15% risk of non-permanence buffer.

340 tCO2/ha. 470 tCO2/ha.

Sitka Spruce, 2.0m spacing, Yield Class 16, mounding on organo-mineral soil. No thinning. Clearfell at 40 years. 15% risk of non-permanence buffer.

135 tCO2/ha. This would be achieved by year 40, but no further carbon can be claimed.

135 tCO2/ha. This would be achieved by year 40, but no further carbon can be claimed.

Mixed native woodland, 2.5m spacing, Yield Class 4-8, mounding on organo-mineral soil. No thin or clearfell. 20% risk of non-permanence buffer.

375 tCO2/ha. 470 tCO2/ha.

Current UK prices: £ 3-15 / tCO2

Global Average ‘forestry’ price: £ 6 / tCO2

forestry.gov.uk/carboncode

Cwm Fagor

• 29ha mixed woodland (native & productive conifer)

• Planted on ex-grazing land in Monmouthshire

• Connects isolated areas of ASNW

• Project Developer: Pryor & Rickett Silviculture

• Will sequester 18,102 tCO2 over 100 years

• 15,387 tCO2 for sale

• 2,715 tCO2 to buffer

Thorlux Lighting:

Own & customer

emissions

forestry.gov.uk/carboncode

Yorks Dales Millennium Trust

• YDMT Group: 5 projects, 2-13 hectares

• Project Developer: YDMT

• Will sequester 15,000 tCO2 over 100 years

• 13,000 tCO2 for sale

• 2,000 tCO2 to buffer

• Comply Direct marketing/selling carbon units

Lamberts Wood Storthwaite

Warcop, Cumbria –160 has, varied objectives!

forestry.gov.uk/carboncode

How to sell carbon

• Via Markit Environmental Registry

• Request for Information Platform:

• ‘Gumtree’ for Selling Carbon

• markit.com

• Via ‘broker’

• forestry.gov.uk/carboncompanies

• UK Carbon Reporting Framework

• Advertise your project ukcarbonreporting.org

• Find a local business

forestry.gov.uk/carboncode

WCC developments

• Monitoring & Verification

• Social and environmental benefits

• Streamlined process for very small projects?

• Scope• Changes to management of existing woodlands? • Harvested wood products?

• International reporting arrangements• Review + Options?

forestry.gov.uk/carboncode

Other developments

Next steps to zero carbon homes

- Allowable Solutions

Consultation

August 2013

Department for Communities and Local Government

Conclusions

Make the case• Sound evidence (science)• Measures/ accounting (natural capital)• Business & economic case• Promotion

Careful design• Supporting infrastructure (metrics, verification etc)• Develop networks • Engage ‘new’ expertise

Carry out pilots• Partnerships• Evaluate

Develop and adapt• Market developments and trends• Best practice

forestry.gov.uk/carboncode

Thankyou

www.forestry.gov.uk/carboncode

LinkedIn: ‘Woodland Carbon’ group

WCC Mailing List

pat.snowdon@forestry.gsi.gov.uk