The Woodland Carbon Guarantee is a £50 million government scheme designed to stimulate woodland creation in England. It was introduced in November 2019 and is launching at the start of 2020.
What is the Woodland Carbon Guarantee (WCaG)?
- Contracts will be awarded through sealed bid reverse auctions every six months. The first auction closes on February 14th.
- Winning a contract under the Woodland Carbon Guarantee will give sellers the option to sell carbon credits to the government at a guaranteed price every 5 or 10 years until 2055/56.
- To apply, projects must be registered for, and managed in accordance with, the Woodland Carbon Code (WCC), and sellers are responsible for all ongoing costs, including registration, validation, monitoring, and verification.
Full details are available on the government website.
Is my project eligible for carbon finance?
To be eligible for carbon finance a new woodland must meet some basic criteria:
- It cannot be a legal requirement, and the planted land must have been unwooded for the last 25 years
- Carbon finance provided must make up at least 15% of the overall cost of establishment up to and including year 10
- Without funding via carbon finance the project is not the most economically attractive use of the land or not economically or financially viable at all
Is my project eligible for the Woodland Carbon Guarantee?
- A project is eligible if it meets the above criteria for carbon finance, and the land intended for planting is privately owned, located in England, and planting has not yet begun.
How is the Woodland Carbon Guarantee different to selling carbon credits via e.g. Forest Carbon?
||Woodland Carbon Guarantee
||Pending Issuance Units
(not yet verified carbon credits)
|Woodland Carbon Units
(verified under the WCC)
||Payment is made at the outset of the project
||Payment is made following successful verification for the carbon credits generated
|Validation and verification
||Forest Carbon undertakes validation and ongoing verifications in accordance with the WCC, at no cost to the landowner.
||Sellers (e.g. the landowner) are responsible for ongoing costs, including registration, validation, monitoring, and verification.
A timeline of the WCaG:
- Projects must be registered with the Woodland Carbon Code to be eligible to apply
- February 14th
- Applicants may submit bids to the auction (in the unit £/tCO2)
|Subsequent auctions held every 6 months
|~2025 (and every 5 or 10 years thereafter)
||Verifications and subsequent sales of WCUs
||Final verifications and WCU sales