Rare opportunity to buy timberland forest with carbon credits offers ideal natural capital investment opportunity
An exceptional commercial forest with carbon credits in Carmarthenshire has come to the market – providing a potentially “ideal scenario” for responsibility, integrity and returns, according to a leading UK forestry agent.
Banc Woodland, a 357-acre young conifer plantation, has 18,350 Pending Issuance Units (PIUs) (carbon credits given in advance of future carbon sequestration) included in the sale, making it a very unusual offering in the commercial forestry market place.
Jon Lambert, of GOLDCREST Land & Forestry Group, said: “We have seen a small number of broadleaf woodlands with carbon credits in the market place but the significant difference here is that this is a commercial conifer crop. To date, we have only seen a small number of commercial woodlands come to the market with carbon credits still attached which makes it a remarkable asset.
“This offers an extremely rare opportunity for environmentally-focussed investors. In forestry terms, I believe this kind of package is an ideal scenario for sustainable investing.”
It comes just weeks after the government launched a consultation on the principles for carbon credit integrity, Voluntary Carbon and Nature Markets – Raising Integrity*.
Mr Lambert said: “Trust and confidence in the carbon and nature trading markets will be essential for success and growth. I hope this consultation will result in a framework that will ensure the integrity of credits and give businesses a set of guiding principles that will provide true environmental benefits.
“I truly believe Banc, with its high integrity carbon credits, is an example of best practice in the industry. It is a very high calibre forest that offers an attractive and tangible investment option, combining land, an excellent timber-producing crop and green credentials in the form of carbon credits. Banc would add a powerful – and responsible – asset to the balance sheet, although potential purchasers must of course take their own investment advice.”
He advocated keeping the land, trees and carbon credits together in one package at this stage.
“While separating PIUs from forest and land assets is possible, it creates additional complexity and risk for all parties involved,” he said.
“At this point, a plan to separate carbon credits from the forestry asset once the expected carbon sequestration has been verified makes more sense. If the owner of the carbon that is due to be sequestered in the future also owns the trees, then that owner has maximum flexibility and the strongest incentive to enhance the woodland over the medium and long term and, in my opinion, that creates the most valuable asset in the current market.”
The PIUs were registered with the Woodland Carbon Code in 2022 and validated in 2023. The recently planted trees will sequester 22,020 tonnes of CO2e, the equivalent of the total CO2e produced by 1,700 people for one year over the next 100 years. After a 20% buffer is applied, this leaves 18,350 carbon credits that could be used to offset individual or business emissions once verified as Woodland Carbon Units (WCUs).
In addition to the carbon sequestration of the commercial conifers, more than 79,000 young broadleaf trees will act as a long-term carbon sink.
Established in 2022, Banc Woodland is an exceptional high-yielding, established plantation of Sitka spruce and other conifers, complimented by fast growing native broadleaves, designated open ground and 28 hectares of maturing sessile oak.
The conifer mix – improved Sitka spruce, Douglas Fir and Norway spruce – adds diversity and resilience to this commercial plantation and it is expected to yield 76,720 tonnes of timber per rotation. Newly planted broadleaves include improved Danish sycamore, improved UK birch and locally sourced sessile oak, adding to the amenity value of this forest.
Banc receives more than £37,000 in annual grant income due until 2034.
Banc Woodland is on the market with GOLDCREST Land & Forestry Group for offers over £2.2million.
