9165 - BM Outlook 2022 R6 - Flipbook - Page 14
Look for new revenue streams
– but be careful
There are a number of alternative revenue
streams for timber, ranging from the
traditional to more recent opportunities
such as carbon sequestration, but they
need to be considered carefully.
There is the opportunity to set up a
partnership to supply woodchip from
thinnings, or from trees that don’t make
the grade, to a local school or estate
with a biomass boiler, although a change
in government policy around carbon
neutrality may affect the use of wood
as an energy source.
With trees acting as an important carbon
‘sink’, there is clearly an opportunity to
benefit from selling carbon credits, though
the unregulated state of the market means
they come with a warning.
Only those with a crystal ball will know
whether or not they might need their own
carbon or biodiversity credits in the future.
Reports of carbon credits being traded
at between £7 and £50 a tonne highlight
the market’s instability. Once the market
has settled and the rules are clearer, this
should be an option.
Biodiversity is set to be another valuable
commodity, with developers now having
to show a 10 per cent improvement in
biodiversity – a figure that is likely to
increase – as part of any scheme.
Where that ‘biodiversity net gain’ cannot
be achieved on site, developers can do
deals to achieve it elsewhere, something
that has obvious potential benefits for
landowners with carbon-absorbing trees.
There is still plenty to consider, such as
the chance that selling carbon credits or
biodiversity could limit the future use of
the land, perhaps if there is a mediumterm plan to apply for planning permission.
Selling credits could also affect the
value of the land if sold in the future as a
potential new owner may not want to be
bound into a scheme they did not agree to.
Demand seems inevitable to increase as
these emerging markets mature, and so
selling credits now might be a cause for
regret if values double or triple in time.
Soil Carbon Code
With the increasing focus on soil health and carbon markets
(given that the estimated market for soil carbon sequestration
per year is in the region of £200 million to £750 million) the
Sustainable Soils Alliance is working with experts to develop
the UK Farm Soil Carbon Code.
To help farmers better understand and adopt sustainable
farming practices, the Soil Carbon Code will include a set of
formal protocols that will allow them to measure, value and
verify reduced greenhouse gas emissions and their soil carbon
capture, as well as promoting soil health.
The Soil Carbon Code will be free to use and accessible to all
farmers in the UK. The aim is that the code will be applicable
for different ‘carbon accounting’ purposes and engage farmers
in carbon markets and additional income streams.
12 | Outlook
New woodlands
Those thinking of planting should
consider grants such as the English
Woodland Creation offer from the Forestry
Commission, which offers payment for
establishment and maintenance as well as
the potential for further capital payments
if additional public benefits, such as
enhanced water quality, are delivered.
Landowners can even get help planning
a scheme by applying for a woodland
creation planning grant.
While details are still thin on the ground,
the incoming ELMS will also provide
grant support for landscape-scale tree
planting schemes, particularly those
that see a joined-up approach from
neighbouring landowners.
Now is the time to work out how best
to manage your forestry or woodland
to maximise its potential, usually
by enhancing biodiversity and the
environment while growing a successful
and resilient crop of good quality timber.
As the value of forestry and woodland
parcels approach that of pastureland, it is
time for trees to stand up and be counted.
Harry
Broadbent-Combe
Associate,
Pulborough
Stronger powers of entry allowing
permitted authorities to carry out
surveys ahead of an application for a
Development Consent Order (DCO)
have made it even more important
for landowners to take professional
advice when their land is affected
by a utility or Compulsory Purchase
Order (CPO) scheme.
The High Court’s decision in the case of
Sawkill v Highways England Company Ltd
has given ‘acquiring authorities’ significant
new powers to enter land with just 14
days’ notice and with no need to seek
authorisation from the Secretary of State.
Act in haste, repent at leisure
“The new powers make it more important
than ever for landowners to ask for advice
when they find themselves approached by
an official body that wants to come on to
their land,” said Harry Broadbent-Combe of
Batcheller Monkhouse’s Pulborough office.
“The important thing to bear in mind from
the outset is that the advice will be paid for
by the other party – and the second thing
to note is that when dealing with these
approaches our experience shows that
those who are professionally represented
inevitably end up with better terms and
compensation than those who go it alone.
“A professional adviser will make sure you
understand your rights, do not feel bullied
by the acquiring authority and receive the
compensation to which you are entitled.
“It’s also important to make contact as
soon as that first request for access to
carry out a survey drops through your
door. If it relates to something like a new
road, then the earlier you make your
representations, about for instance the
route, the more likely you are to be able
to get changes made.”
New powers make it more
important than ever for
landowners to ask for advice
when they find themselves
approached by an official
body that wants to come
on to their land.
Harry is currently acting for around 20
clients with land along the route of Esso’s
95km underground pipeline that will be
taking aviation fuel from Fawley, near
Southampton, to Heathrow, negotiating
the most landowner-friendly access
arrangements, mitigating disruption and
achieving the best possible compensation.
“Esso tends to prefer negotiation to using
compulsory purchase powers and in this
case they have been making a reasonable
offer to landowners, but it takes professional
involvement to check that an offer is a good
one and make sure that the terms are clear
and reasonable,” he commented.
Estate Management | 13