The User’s Guide to The Woodland Carbon Market

01786 649387 www.carbonstoreuk.com01 Table of Contents Introduction

Introduction 3 With the market for WCUs and PIUs still in its relative infancy, CarbonStore is particularly keen to support its healthy evolution by providing a service that is 4 knowledgeable, honest, trustworthy and transparent. The Basics One important element of that is developing a better understanding of the A Carbon Source, Sink and Store Woodland Carbon Code, its practices, and its principles, among both the companies buying PIUs and WCUs and the landowners selling them. It is for Explaining Soil Carbon these reasons that we have produced this User Guide, so all parties have a clear The Wider Benefits of Woodland Creation 6 understanding of the terminology and the processes involved in the selling and purchasing of woodland generated carbon units. So What Exactly is CO2e? 6 It is essential that companies buying PIUs and/or WCUs can trust the implicit claim that a WCU represents one tonne of sequestered carbon dioxide equivalent. The UK Government’s Targets for Woodland Creation 7 In order to maintain this confidence, all schemes wishing to generate legally A New Incentive to Plant recognisable and saleable PIUs and WCUs must follow a series of complex and detailed checks and inspections. CarbonStore guides you through the process. The Woodland Carbon Code: An Introduction 9 For the environmental and sustainability managers reading this User Guide, I hope Outlining the Code’s Credentials it gives you confidence and reassurance about the integrity of the PIUs and WCUs The Purpose of the Woodland Carbon Code which you are contemplating buying. The Principles Underpinning the Woodland Carbon Code For the farmers and landowners, I hope it offers a useful explanation about the whys and wherefores of the various steps needed to generate saleable and increasingly The Woodland Carbon Code: A Step-by-Step Guide 11 valuable PIUs and WCUs. Important Terms and Definitions While pursuing our quantitative targets, it is equally important that we maintain Registering a Project on the UK Land Carbon Registry our qualitative standards. We must design, plant, and manage our prospective woodlands to the highest levels. Whether you are a landowner or a company, by Validating a Project under the Woodland Carbon Code working with CarbonStore you can rest assured that we will be guiding you with Verifying a Project under the Woodland Carbon Code your best interests at the forefront of our service offering. CarbonStore: Supporting the Woodland Carbon Market 19 Our Services Cover All Aspects of the Woodland Carbon Market Some Background Context to CarbonStore’s Approach Gavin Adkins Managing Director CarbonStore’s Approach to Selling PIUs and WCUs Tilhill and CarbonStore Helping Landowners Register, Validate and Verify Projects Helping Landowners to Sell and Companies to Buy PIUs and WCUs Glossary of Terms 24

02 www.carbonstoreuk.com 01786 649387 03 Carbon Sequestration A Carbon Source, Sink and Store There is a lot of confusion surrounding terms such as carbon source, due to the ground disturbance, the ‘carbon sink’, ‘carbon store’ and ‘carbon source’. use of guards, the fencing etc. Thereafter, as In a nutshell: the trees grow, it becomes a (significant) carbon sink The Basics • A carbon source releases more carbon than it absorbs. before, as chart 1 shows, maturing into a carbon store. Depending on the species choice, the soil type and • A carbon sink is any reservoir that absorbs more other factors, the time between these stages varies Carbon sequestration describes the process in One often forgotten caveat is that trees not only carbon than it releases. which carbon dioxide (CO ) is removed from the photosynthesise but respire also. Through this considerably but, generally speaking, the woodland 2 • A carbon store/stock maintains a constant amount atmosphere and subsequently stored through process, trees convert some of these carbohydrates is a source in years 0-5, a sink in years 5-100, and of carbon. beyond that they act as stores. biological, chemical, or physical processes. In the and oxygen back into CO2, water, and energy. As trees case of woodland creation, trees use solar energy to grow, the process of photosynthesis dominates that These three terms are neatly illustrated during a woodland’s life cycle. Initially, a planting project is a convert CO2 and water into carbohydrates and oxygen of respiration, sequestering carbon. Once they reach through photosynthesis. These carbohydrates form maturity, however, these processes are pretty much in the building blocks for the of the tree and, equilibrium. Subsequently, the trees are emitting as therefore, the storage of carbon. much CO2 as they are sequestering.

Chart 1: Chronology of Sequestration Volumes on a Standard Woodland Scheme.

Volume of Sequestered CO2 (tons) 4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0 Years Years Years Years Years Years Years Years Years Years Years 0-5 6-15 16-25 26-35 36-45 46-55 56-65 66-75 76-85 86-95 96-100

This balance between photosynthesis and respiration above) shows that CO2 removals peak between years’ is embedded in the Woodland Carbon Code’s carbon 16 and 25 of a tree’s life. Thereafter, they gradually calculator. It’s forecast for a standard woodland’s decline so that, by year 100, they are approaching sequestration schedule over 100 years (see chart 1 equilibrium. Image 1: The Carbon Cycle of a Single Tree.

Explaining Soil Carbon

An important but often overlooked store of carbon Even though the soil disturbance from ground is the soil. On average, the top 1m of soils in UK preparation for will release carbon dioxide woodlands contain three quarters of the ‘in-’ back into the atmosphere (primarily through microbial carbon stock (see image 1). This ‘in-forest’ stock respiration), over the lifetime of the woodland the accounts for the timber of the tree itself, all biomass in increase in biomass, improved soil stability and the the leaf litter, other vegetation and the soil. mitigation of flooding means that the amount of carbon stored in the soil can increase dramatically.

04 www.carbonstoreuk.com 01786 649387 05 The Wider Benefits of Woodland Creation The UK Government’s Targets for

Aside from the previously discussed benefits of trees rain and weaken their strength while roots hold the Woodland Creation as the most effective (and wholly natural) carbon sink soil together and protect it from the effects of wind. available, woodland creation generates a multitude • Health Benefits: According to Forest Research: In January 2020, the Committee for Climate Change Indeed, and agro- would play of other ecological, environmental, social and “Woodlands provide an opportunity to exercise in a (CCC) released its 123-page report: “Land Use: a central role in these land use related emissions economic benefits: calm and restful environment. Exercise in woodlands Policies for a Net Zero UK,” in which it explained that: reductions. By increasing UK woodland cover from • Improve Biodiversity: Woodlands provide essential relieves physical symptoms such as high blood 13% to at least 17%, through planting 30,000 hectares “Sustainably managed are important for habitats to a wealth of wildlife, including nesting pressure and obesity, as well as mental symptoms each year until 2050, our newly planted forests and reducing emissions across the economy. They provide birds, shade-loving plants (known as sciophytes), of stress and depression.” woodlands would be sequestering 14 Mt CO e by 2050. a store of carbon in the landscape and harvested 2 and fungi. Tree planting has a central role in our • Timber’s Sustainability Benefits: Timber has the can be used sustainably for combustion and With the government legally committed to efforts to tackle our biodiversity crisis. lowest embodied energy (i.e. energy used in its carbon sequestration in the energy sector (e.g. achieving net zero emissions in the UK by 2050 • Flood Mitigation: A mature tree captures over processing, production, and transport, from tree to when used with Carbon Capture and Storage (CCS) and simultaneously conscious of the wider societal 700 gallons of water per year. A recent survey consumer use) of any mainstream building material, technology) and as wood in construction, creating an challenges, its 2019 manifesto also committed it to estimated that carefully planted patches of and significantly less than for steel, concrete, or additional stock of carbon in the built environment.” planting 30,000 hectares across the UK by 2025. woodland across a river basin can stem the flow aluminium. Within this target, 10,000 hectares would be planted The report noted that, in 2017, the total emissions velocity in the neighbouring river, when rainfall is in England, 15,000 in Scotland, 2,000 in Wales and These wide-ranging advantages of trees means that from agriculture, land use and peatlands across the high, by almost 50%. 3,000 in Northern Ireland. woodland creation can provide an entirely natural UK was 58 million tonnes of CO e (carbon dioxide • Water Filter: Flood water often contains high levels 2 but almost perfectly designed antidote to many of equivalent). However, the CCC argued that, ‘with of phosphorus pollutants and nitrogen. Without trees, our most serious challenges. We are suffering an ambitious steps,’ these emissions could be reduced by that flood water would flow directly into rivers and unprecedented loss to our biodiversity in the UK. 64% to 21 Mt CO2e by 2050. lakes without being filtered. Trees break the rainfall Extreme hydrological events are rising. allowing soil microbes to transform the pollutants. According to the Environment Secretary, we are • Reducing Soil Erosion: Wind and rain are the two “30-40 years from a complete eradication of soil largest natural forces eroding our soils. Raindrops fertility in parts of the UK”. Finally, we are increasingly have the power and momentum to penetrate soil in need of a home-grown timber resource to meet the when they hit the ground. If the land is dry, wind can government’s target for new homes. do significant damage. Trees break up droplets of

What Exactly is CO2e?

We talk about trees sequestering carbon and helping GWP is a measure of how much energy the emissions to mitigate climate change. But how does this tie up of one tonne of a gas will absorb over a given period,

with the CO2e (Carbon Dioxide Equivalent) which we relative to the emissions of one tonne of CO2. refer to elsewhere? The UK government estimates the GWP of Methane In practice, there are seven greenhouse gases (GHG) and Nitrous Oxide to be 25 and 298 respectively. This which the Kyoto Protocol identified as contributing standardised metric then provides an easy benchmark

to global warming. Carbon Dioxide (CO2) is the most for companies and offsetting projects alike who are prevalent, accounting for 80% of GHG emissions. attempting to balance emissions and suppressions. A company emitting four tonnes of Methane must This is followed by Methane (CH ), which comprises 4 sequester (4 x 25) 100 tonnes of CO e to neutralise its 10%, and Nitrous Oxide (N O) which makes up 7% of 2 2 impact on the earth’s warming. all GHG emissions. The remaining 3% is accounted for

by the fluorinated gases, such as Hydrofluorocarbon, By using one tonne of CO2e as a benchmark used in refrigerants and aerosol propellants. against which we can measure the impact on global warming of other GHG emissions, companies and Each of these GHGs absorb different levels of energy offsetting projects are able to work on the same, so have different effects on the earth’s warming. easily understood and readily exchangeable unit of Scientists have therefore developed Global Warming offsetting currency. Potential (GWP) to enable comparisons between the global warming impacts of different GHGs. Specifically,

06 www.carbonstoreuk.com 01786 649387 07 The Woodland Carbon Code: An Introduction

Outlining the Code’s Credentials

The Woodland Carbon Code (WCC) is that standard The Woodland Carbon Code has also been granted and, reflecting the value of its work, it enjoys international endorsement by ICROA, the International strong credentials. It was launched by the Forestry Carbon Reduction and Offset Alliance. Companies, Commission in 2011, it is operated by Scottish which have bought carbon units issued and authorised Forestry, the science underpinning its calculations has by the WCC can therefore take confidence that their been developed by Forest Research and it is backed carbon credits meet all the standards required of by the UK government. international offsetting schemes.

A New Incentive to Plant Trees The Woodland Carbon Code Enjoys High Level Support. As chart 2 illustrates, these are ambitious targets. The UK government has developed a standard which, Within 5 years, we must increase the area of annual tree by quantifying these benefits (it calculates the tons planting across the UK by x2.2 back to a level that we of CO2e sequestered per hectare of woodland) and have achieved just once (in 1989) in the past 45 years. regulating the issuance of woodland-related carbon We must then maintain this level for the next 25 years. credits, creates a valuable, credible and saleable product (used by carbon-emitting organisations to Realising these goals requires the development of an offset their emissions) and an incentive for landowners entirely new market for the valuable services which to plant more trees. woodlands provide. As we have seen, trees are one of the best natural carbon sinks available and therefore play a central role in helping us to reduce our carbon in the atmosphere and combat climate change.

Chart 2: Area of New Woodland Creation in the UK, 1976-2030e (‘000 hectares). 35 The Purpose of the Woodland Carbon Code

As we explained earlier, landowners need an incentive regulatory oversight is necessary. Companies need to 30 to plant trees. They enjoy various potential uses for trust the sequestration claims of woodland-generated their land, such as livestock, dairy or arable farming carbon credits i.e. that they represent the permanent and, being understandably keen to maximise the removal of one tonne of CO e. Landowners also need 25 2 income generated from that land, need a convincing clear, standardised guidance when calculating the financial incentive to deploy it as woodland. number of units which they are allowed to sell to companies. 20 In the meantime, with technology still insufficient for companies to run their operations free of carbon The Woodland Carbon Code provides this oversight. emissions and many announcing net zero targets, By outlining a consistent, uniform and rigorous set 15 there is a strong demand for “carbon credits” which of procedures, inspections and practices which allow companies to offset the unavoidable emissions landowners must follow when applying for woodland

10 which are generated by their factories, offices, carbon-related funding, it ensures companies can company cars etc. have confidence in the veracity and credibility of the woodland carbon credits they are buying. Between companies looking to buy and landowners 5 seeking to sell woodland carbon credits, robust

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1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021e 2022e 2023e 2024e 2025e 2026e 2027e 2028e 2029e 2030e

08 www.carbonstoreuk.com 01786 649387 09 The Principles Underpinning the Woodland Carbon Code The Woodland Carbon Code: How does the Code protect trust in their woodland- iv) Additional: The project must demonstrate that, generated carbon units? It upholds the key principles of without carbon funding, the project would not A Step-by-Step Guide carbon offsetting which all ICROA-endorsed schemes have been developed i.e. it must be additional to obey. In practice, this involves respecting six basic rules that which would have occurred anyway. (The WCC Important Terms and Definitions to confirm that their emissions reductions are: supplies the additionality spreadsheet to test this iii) Real: All emission reductions and removals must be issue). The Woodland Carbon Code has its own unique set ii) Woodland Carbon Units proved to have genuinely taken place. (In the case iv) Independently Verified: All emission reductions of terms and definitions. Any basic understanding of A Woodland Carbon Unit, often referred to as a of woodland, this test is straightforward; are the and removals shall be verified to a reasonable level the WCC requires some familiarity with these phrases WCU, represents one tonne of sequestered CO2e. trees standing and alive?). of assurance by an independent third party. (The and vocabulary. The glossary (at the back of this Throughout a WCC-registered woodland’s life (or iii) Measurable: All emission reductions and removals WCC have currently appointed the Soil Association brochure) provides a comprehensive list of definitions its duration), it is subject to a series of inspections shall be quantifiable. (The WCC has developed and Organic Farmers and Growers to undertake however, the following outlines the most important by a third-party auditor, and these are known as its carbon calculator to measure a woodland’s this audit). and frequently used terms: verifications. sequestration capacity). vi) Unique: Only one carbon credit can be associated i) Pending Issuance Units Verification occurs initially five years after planting iii) Permanent: Carbon credits shall represent permanent with a single emission reduction or removal as one Trees take many years to sequester carbon dioxide. and thereafter (at least) every ten years. At each

emission reductions and removals. (With woodlands tonne of CO2e. (This explains the WCC’s rigid rules In contrast, landowners planting those trees require verification, the auditor checks that the trees have liable to storms, fire, and disease, the WCC has on permissible claims). a more immediate income from their land. The WCC grown as expected and sequestered the predicted developed its own solution to this test – we explain therefore issues landowners with Pending Issuance volume of carbon dioxide. Assuming it has, the more below). Units, known as PIUs, soon after the trees are planted. relevant number of PIUs (i.e. promises to deliver) are Because these can be sold to companies, they offer commuted into WCUs (i.e. promises delivered upon). landowners the opportunity to generate income from Thus, all of the units generated will initially be classed their woodland creation. as PIUs. As the woodland grows and sequesters Comparing the WCC to other carbon offsetting platforms for investors A PIU represents a promise, by a landowner, to deliver carbon dioxide, a growing proportion of these PIUs

The voluntary carbon offsetting market can be rather overwhelming with countless projects on many different one tonne of CO2e once the trees have matured. are then converted into WCU’s. Chart 3 illustrates the platforms. From solar panels in India to cook stoves in Africa, from Gold Standard to the Verra registry. With so Moreover, because a PIU is a ‘future’ carbon credit, conversion of PIUs into WCUs on a standard woodland much choice available, deciding on what is right for you and your company can be quite a challenge. The good companies cannot use them to offset their current project with a duration of 100 years. news is, you don’t have to pick one alone. Selecting a variety of carbon projects to help offset your residual emissions. Instead, PIUs allow them to say they are ‘on carbon emissions is often the best way to suit the needs of your organisation, balancing costs, location, the path to’ or ‘en route to’ carbon neutrality. project type and all other associated benefits effectively. This blended approach helps you to maximise

your Environmental and Social Governance objectives, and your decision can help to support your wider Chart 3: Timeline of Conversion from PIUs into WCUs on a 100-Year Project. organisational goals. 4,000 We firmly believe that carbon units purchased through the UK Woodland Carbon Code are the best of the best. For UK based organisations, investing in local, tangible woodland creation projects offers a host of benefits, 3,500 making these projects incredibly popular. One special aspect of working with CarbonStore is the ability to become involved in the woodland creation project before it is planted. This means that you can not only help 3,000 design the project, but also have employees and customers get involved and plant some of the trees and visit 2,500 the woodland as it grows! 2,000

As we shall see, the Woodland Carbon Code requires It is therefore important to understand that this time- 1,500 many spreadsheets to be completed, forms to be consuming paperwork meets an important need – by 1,000 filled out and evidence of claims to be provided. rigidly upholding ICROA’s principles, it maintains As the annotations (in italics above) explain, these the credibility of the units which are authorised by 500 are essential steps in complying with ICROA’s basic the Woodland Carbon Code and, in so doing, also principles. protects their value. 0 2021 2026 2036 2046 2056 2066 2076 2086 2096 2106 2116 2121 PIUs to Project WCUs generated from Project WCUs to Project

10 www.carbonstoreuk.com 01786 649387 11 iii) The Land Carbon Registry Registering a Project on the UK Land Carbon Registry The UK Land Carbon Registry is the database that • EITHER open your own account. This means that stores and publicly displays data about the status you are the Project Developer (see glossary) and will The registration of a project is similar to opening a new bank account. Although it holds nothing in it at this stage, of Woodland Carbon Code (and Peatland Code) submit the carbon calculator, file the registration it establishes a depository where they can be safely held once the project is validated or verified, and PIUs or projects, their ownership and the use of carbon units. details and, in time, complete the validation and WCUs are issued. Registration requires two basic documents and project details: Managed by IHS Markit, it records transactions and verification processes (see more below). • The Woodland Carbon Code’s carbon calculator provides a public and transparent picture of UK-based • OR you can register your project under • A map of the project, showing details of the project’s purpose, its location and its duration. Woodland (and Peatland) Carbon Units. CarbonStore/Tilhill’s master account. This carries no i) The Woodland Carbon Code’s carbon calculator All Projects and Carbon Units must be recorded on greater commitments for you but allows us to help The carbon calculator allows us to predict the volume of CO e which a woodland, of any size, species mix and the UK Land Carbon Registry. In order to register a register the project, complete the carbon calculator, 2 duration, planted in any place, will sequester. The science underpinning this calculator was developed by Forest project on the registry, you must: finalise the validation and manage your project’s Research, the Forestry Commission’s world-leading silvicultural research department, and it is the recognised PIUs and WCUs, on your behalf, on the registry. template for such predictions.

The UK Land Carbon Registry. It comprises four basic sections: • Project Basics: This illustrates the key details of any project: when planting was completed (the project start date), how long it will operate under the Woodland Carbon Code (the duration) and the net planting area. These provide the key parameters for the following sections.

Example project used for illustrative purposes.

Project Basics Project start date 01 April 2021 Project duration (years) 100 Total net planting area – excluding open space (ha) 10.00 Country Scotland If in England, are you applying for the Woodland Carbon Guarantee? N/A If applying for the Woodland Carbon Guarantee, 10-yearly or 5-yearly verifications? N/A

• Emissions from Establishment: As we explained earlier, the creation of a woodland generates carbon emissions.

This section quantifies the volume of CO2e emitted from fencing, spraying, tree shelters and any road building and subtracts these emissions from the volumes sequestered by the woodland. • Species, Spacing and Yield Class: Each compartment of the woodland has its own species, its own yield class, it may have different dates, and it will most likely be in different sizes. This section allows you to input each

compartment’s individual features so that the calculator can assess the volume of CO2e to be sequestered based on specific parameters.

Emissions from Establishment Spacing (m) Area (ha) tCO2e/ha tCO2e Seedlings Please select 0.00 Please select 0.0 Ground Preparation (Fuel) 0.00 -0.06 0.0 Tree Shelters 0.00 -0.82 0.0 Fencing 0.00 -1.64 0.0 Herbicide 0.00 -0.001 0.0

Road Building km tCO2e/km tCO2e Roads 0.00 -43.13 0.0 Emissions from removal of trees or other vegetation at the start of the project

12 www.carbonstoreuk.com 01786 649387 13 • Pending Issuance Units by Vintage: The final section maps out the timing when PIUs will be commuted to Validating a Project under the Woodland Carbon Code WCUs during a project’s duration. A vintage represents the period between each verification and theTotal PIUs to Project are the total volume of PIUs which a landowner is able to sell to a company once the project has been A key criterion for all ICROA-endorsed offsetting The Independent Auditors: Organic Farmers and validated and the PIUs issued however this figure requires a more detailed explanation. standards, such as the Woodland Carbon Code, Growers and the Soil Association requires that: Verification: Total PIUs years since Vintage Vintage in vintage PIUs to PIUs to “…offset projects and carbon reduction claims are start date start date end date to be listed Buffer Project independently validated and verified. Validation and 5 01 April 2021 31 March 2026 32 6 26 verification must be carried out by a suitably qualified, 15 01 April 2026 31 March 2036 508 102 406 independent organisation.” 25 01 April 2036 31 March 2046 2159 432 1727 In line with this mandate, the Woodland Carbon Code 35 01 April 2046 31 March 2056 1211 242 969 outlines the protocols and procedures for validating 45 01 April 2056 31 March 2066 885 177 708 woodland projects and two independently appointed bodies, Organic Farmers and Growers, and The Soil 55 01 April 2066 31 March 2076 380 76 304 Association, validate the projects. 65 01 April 2076 31 March 2086 250 50 200 75 01 April 2086 31 March 2096 180 36 144 i) The Simple Steps to Validation These costs exclude validation, verification, land 85 01 April 2096 31 March 2106 151 30 121 In practice, validation is a desk-based exercise when acquisition and income foregone. 95 01 April 2106 31 March 2116 145 29 116 the auditor reviews the 28-page Project Design • Test 3 – Investment: The purpose of this test is to 100 01 April 2116 31 March 2121 49 10 39 Document (see more below) and the additionality demonstrate that, without carbon finance, woodland spreadsheet (mentioned earlier), among other things, creation is either: (a) not the most economically or Total 5950 1190 4760 to ensure that the scheme complies with ICROA’s financially attractive option for that area of land The Discounts Applied to the Total PIUs to Project principles of carbon offsetting. (i.e. woodland creation is profitable, but less so than grazing or other likely non-woodland uses) or (b) is Total PIUs to Project account for just 64% of the total volume of CO e which the carbon calculator expects According to the Code, a project must be validated 2 not economically or financially viable on that land at the project to sequester over its duration. Conscious that PIUs only represent a promise to deliver, cautious of within three years of it being registered and cannot be all (i.e. woodland creation is not profitable). any undue optimism in its underlying scientific assumptions and recognising that natural capital assets, such as validated until the planting has been completed. Most woodlands, are susceptible to natural disasters, the Woodland Carbon Code has applied two discounts before projects are validated within 2-3 months of planting. • Test 4 – Barrier: If the investment test is not passed, reaching the 4,760 PIUs available for sale in the example above. Soon after validation, the project’s account on the there may be cases where other barriers prevent a woodland creation project from taking place that the The First 20% Discount Land Carbon Registry is issued with legally recognised PIUs which the woodland owner can sell to whomever, WCC could help overcome. These barriers could be This is applied before any figures are displayed on the carbon calculator and is, effectively, an insurance policy by whenever they choose. economic, social, or environmental. Realistically, this the Woodland Carbon Code, to minimise the risk that its underlying assumptions on tree growth are too optimistic option is rarely considered. and an unrealistically large number of PIUs are sold (or promises are made) before the trees mature. ii) The Documents and the Tests Needed for Validation The Additionality Spreadsheet To illustrate this using the example above, the 20% discount has already been subtracted from the 5,950 total Proving the Project is Additional PIUs in vintage to be listed. This means that the Woodland Carbon Code actually expects this project to sequester The Additionality Spreadsheet has been devised by We explained earlier that all ICROA-endorsed (120% x 5,950) 7,140 tons CO e i.e. 1,190 tonnes more than are available to be sold when the scheme is validated. the Woodland Carbon Code to assess tests 2 and 3. 2 standards require their offsetting schemes to prove It therefore seeks to answer three questions: It is important to note that this initial discount is returned to the woodland owner when the PIUs are verified and that, without carbon funding, the project would not • Does carbon-related income account for a commuted to WCUs. Indeed, receipt of this rebate simply requires the trees to ‘have grown as they normally would’. have proceeded i.e. the project is additional to that meaningful portion of a project’s costs? If this is the case, woodland owners can expect to receive 20% more WCUs than the PIUs listed in each vintage. which would have occurred anyway. • Would the land have been planted with trees anyway? The Buffer – the Second 20% Discount The Woodland Carbon Code has therefore devised • Does carbon funding make woodland creation a As ICROA’s key principles outline, all verified carbon units must represent a permanent emissions removal. For the four tests to establish whether a project is additional. viable use of the land? Woodland Carbon Code, whose projects are inherently susceptible to natural disasters, such as storms, disease All projects must pass tests 1 and 2. They must also and fire, this guarantee of permanence represents a challenge; If the woodland were to burn down, any verified pass either test 3 or test 4 to be validated: It answers these questions by considering all incoming WCUs would, quite literally, go up in smoke. • Test 1 – Legal: This is simply asking whether there and outgoing cashflows both through years 1-10 (test 2) The Woodland Carbon Code therefore requires all schemes to contribute 20% of their total verified WCUs to is any legal obligation to plant the land already. and over the project’s lifetime (test 3). All relevant a centralised ‘buffer’ account which provides a pot from which the WCC can draw unused WCUs if the trees in a For example, compensatory planting for woodland costs, including the ground preparation, the young verified scheme are damaged and the guarantee of permanence is jeopardised. clearance from a housing development would not trees, trees guards, and labour costs are calculated. Opportunity costs, such as foregone farming income, ii) A Map of the Project pass this test. are also considered. The registration process also requires projects to submit a map of the scheme detailing the site boundary and a plan • Test 2 – Contribution of Carbon Finance: Carbon of the planting. This map, like the carbon calculator, will be publicly accessible so the WCC has strict requirements finance must equate to at least 15% of the project’s regarding the content, the scale, and the inclusion of a grid reference. Further details are available under ‘mapping planting and establishment costs up to year 10. guidance’ on the Woodland Carbon Code’s website.

14 www.carbonstoreuk.com 01786 649387 15 The spreadsheet then tallies up the various sources 2. Project governance iii) The Cost of Validation of income from the proposed woodland, such as that The WCC wants confirmation that the landowner will The expense of taking a project through to validation Landowners should be aware of the other costs. The from , letting sporting rights, grant funding abide by the rules of the Woodland Carbon Code, is mainly comprised of fixed costs and CarbonStore Code’s appointed validation bodies (see earlier) charge and timber. A discount factor is also applied to that a long-term management plan is in place for the can help with this at every step. For services related approximately £1,200 to validate a project. The UK these various costs and incomes to reflect both the woodland, that the local community and interested to project development, we charge an hourly rate and Land Carbon Registry also charges £0.06 per PIU for time value of money and the risks associated with parties have been consulted, that risks have been the time taken to register a project and prepare the the administrative costs processing their issuance. woodland creation. considered and that an agreement is in place to Project Design Document change little, whether the In total, a landowner should expect fixed costs of With this information gathered, estimated carbon monitor and maintain verification of the project. project is 10 hectares or 100 hectares. roughly £1,800 for validating an individual scheme. income is compared to the project’s costs in its first 3. Carbon sequestration ten years. If it exceeds 15%, test 2 is passed. The Fixed Costs Associated with Validating a Project. Although a carbon calculator was submitted when the spreadsheet then considers the net present value project was registered, the WCC requires projects to (NPV) of the project both with and without carbon Fixed Costs £ consider the baseline carbon sequestered in the previous income. If the NPV is either very low or negative land use and any potential carbon leakage because of Cost of Validation Standard charge levied by auditor -1,200 without carbon funding but highly positive with the project. This allows a more accurate assessment of Markit Registry Fees for Establishing PIUs in Account 10,000 PIU’s at £0.06 per PIU -600 carbon funding, the project also passes test 3. the net carbon sequestration from the project. Total Costs -1,800 The Project Design Document (PDD) 4. Environmental quality The PDD is a 28-page report that must be completed Projects need to demonstrate that they have considered by the project developer and describes how the iv) Group Projects the environmental aspects of sustainable forest project will meet the various requirements of a project It is possible to group projects together to reduce We would require the landowner to sign up to the management when designing the woodland. They should operating under the WCC. There are five principal the fees paid to the auditors for validating (and group agreement, provide information promptly therefore provide an Environmental Impact Assessment, sections, each of which require supporting evidence: verifying) projects. For example, each project in a and accurately and inform us of significant changes if required or, if not, evidence that environmental impacts group containing 5 schemes will pay approximately to the woodland. 1. Eligibility of the project are likely to be positive. £650 for validation (as opposed to £1,200 as an The code needs to establish that the project is eligible Each of these projects must pass its own additionality 5. Social responsibility individual project). for carbon funding. The project developer therefore tests (see above) before being validated (and verified) Both the WCC and companies buying PIUs and WCUs needs to supply the key project dates, show that the Each group requires a group manager, similar to a in the same way as individual projects. You can group care strongly about the social impact of potential land hasn’t previously been woodland (for at least 25 project developer, who coordinates interactions with schemes together from different areas or owners and projects. Any benefits to the local economy, the years), provide evidence of ownership (or a tenancy the auditors during validation and verification, and each group has a maximum of 15 standard-sized neighbouring community, the local wildlife or the local agreement) as well as confirmation that the landowner CarbonStore is able to undertake this role. (i.e. larger than 5 hectares) projects. water resources should all be highlighted. will comply with the law and conform with the UK Forestry Standard.

16 www.carbonstoreuk.com 01786 649387 17 Verifying a Project under the Woodland Carbon Code CarbonStore: Verification represents the second stage of the third- Organic Farmers and Growers and The Soil party audits and, according to the Woodland Carbon Association to verify projects. The process can take up Supporting the Woodland Carbon Market Code, it is: to 6 months so, given the deadlines mentioned above, it is important to book an appointment and arrange “…the ongoing evaluation of the project against Our Services Cover All Aspects of the Woodland Carbon Market the paperwork (see below) well in advance. the requirements of the Woodland Carbon Code. Verification will assess the carbon sequestration ii) The Cost of Verification The Woodland Carbon Code is complicated. It ii) Act as Project Developer for Schemes Registered uses many acronyms and much jargon. It requires a under the Woodland Carbon Code that has actually occurred as well as continuing As with validation, the costs of verification are broadly large volume of paperwork and two quite detailed management to the UK Forestry Standard.” fixed. The time taken to prepare the Project Progress This is a more involved relationship. We help gather spreadsheets to be completed. There are (at least) and complete the documents but we also undertake As we explained earlier, being the point when Report (see below) varies little, irrespective of the three legal agreements to be signed, relating to the the commitments relating to those of a Project sequestration is confirmed, it is also the time when project’s size. A mensuration survey is required to Code, the group agreement (see above) and the Developer, such as maintaining verification. It also a portion of the PIUs get commuted into WCUs. assess the volume of standing timber. corporate buying the carbon units. Finally, the UK involves representing the landowner’s interests on the i) Explaining the Process of Verification The auditors’ fees are approximately £1,100 per Land Carbon Registry can seem puzzling. Land Carbon Registry. project though, like validation, grouped projects The first verification takes place 5 years after the The development of the woodland carbon market incur approximately half the audit fees. Finally, iii) Co-ordinate Group Schemes and Act as Group project’s start date, the second must be within also represents the evolution of a new and significant Markit also charges £0.03 per converted PIU for Project Manager 15 years of the start date and thereafter, verification trend. Until now, there has been little overlap between administrative and handling costs associated with As we have seen, group schemes represent an occurs (at least) every 10 years. As with validation, the rural and urban economies; the two sectors have the UK Land Carbon Registry. opportunity for landowners to significantly reduce their the Woodland Carbon Code has currently appointed operated in broadly separate spheres. costs of validation and verification. Our knowledge However, the woodland carbon market, by facilitating of the Code, our experienced team and the volume Fixed Costs Associated with Verifying a Standard Project. the flow of money from mainly urban-based companies of projects which we handle enables us to provide an into the rural economy, with the former securing efficient and effective Group Manager service. Years from Validation 5 15 25 35 Total the services of the latter, represents a growing iv) Arranging the Sale and Purchase of PIUs and interconnection between these two disparate sectors. Cost of Verification Standard auditors fee -1,100 -1,100 -1,100 -1,100 -4,400 WCUs by Landowners and Companies Cost of mensuration report Assume £300 per report -300 -300 -300 -300 -1,200 At CarbonStore, we have designed our services CarbonStore has strong connections in both the rural specifically to meet these various requirements: Markit Registry Fees £0.03 per WCU 34 113 206 22 375 and corporate sectors. With feet firmly established in i) Advice related to the Woodland Carbon Code both camps, we are ideally placed to help landowners Total Costs £ -1,434 -1,513 -1,606 -1,422 -5,975 sell their PIUs or WCUs and companies to buy them. We can help landowners gather and complete the lengthy and complicated documents and spreadsheets The variety of schemes available means we have a iii) The Documents and Reports Needed for iv) Converting the PIUs into Verified WCUs necessary to register, validate and verify a project strong offering for companies seeking to buy carbon Verification The final stage involves securing receipt of the WCUs under the Woodland Carbon Code. credits. That, in turn generates more interest from The Project Progress Report on the Land Carbon registry. The project developer companies who have confidence in our ability to help will receive an automated email providing instructions them fulfil their offsetting requirements. This 19-page document is an important element of the to the account holder to confirm the number of units verification process. It is, in effect, a ‘mini-PDD-update’ being verified. They will then submit a request for which details and confirms the project’s ongoing the corresponding number of WCUs to be issued to compliance with the Woodland Carbon Code. the project. The Monitoring Report This involves an on-site survey of the woodland by an accredited practitioner, such as Tilhill. The Woodland Carbon Code has published detailed guidelines for the first verification in year 5 and will soon publish guidelines for appropriate methodologies for subsequent verifications.

18 www.carbonstoreuk.com 01786 649387 19 Some Background Context to the Woodland Carbon Market Helping Landowners Register, Validate and Verify Projects

Until now, global voluntary carbon markets have The Conventional Approach to Selling PIUs and WCUs We recognise that many landowners will need support ii) iValidating the Project developed their own unique and slightly opaque and advice when undertaking the various steps This ‘blurring’ is neatly illustrated by the conventional Validation starts by ensuring your scheme passes the modus operandi. This is as true for cooking stove necessary to generate PIUs and WCUs from their approach used to sell woodland carbon in the additionality test and this requires completing the offsetting projects in Sudan and solar energy projects woodland projects. As we have previously explained, UK. Until now, intermediary-type companies have Code’s cashflow spreadsheet. Assuming this proves in India as it is for woodland-based offsetting schemes CarbonStore offers these services in two distinct formats: purchased carbon units directly from landowners. They the additionality of carbon funding, we then book a in the UK. then hold them on their balance sheet before selling a) Woodland Carbon Advisory Service validation slot with the auditors. The main elements matching these offsetting projects them onto companies in a separate transaction (see For landowners acting as their own Project Developers With a slot reserved and a schedule set, we can help and their carbon credits with their end-users, the diagram below). with their own account on the Land Carbon Registry, gather the documents necessary for the Project companies wishing to offset their carbon emissions, Design Document (PDD). These include Environmental Although such companies often undertake the we help them compile the documents necessary for have been intermediary organisations. Although such Impact Assessments, soil surveys, grant funding validation and verification for landowners, their profits registering, validating, and verifying their schemes intermediaries fulfil an important role, akin to a broker, contracts, land registry records and management are ultimately influenced by the price difference with the Woodland Carbon Code. they have blurred the market. planning documents and are necessary to provide between their purchase cost from the landowner and b) Project Developer Service proof of the claims made regarding ownership, land their sales price to the corporate. As a result, the true The main elements matching these offsetting projects use or environmental impact, in the PDD. value of PIUs and WCUs has become blurred. and their carbon credits with their end-users, the These documents are then submitted to the auditors companies wishing to offset their carbon emissions, who usually have various queries requiring clarification have been intermediary organisations. Although such The Traditional Approach to Selling PIUs/WCUs vs CarbonStore Approach or changes. If these are satisfactorily rectified, the intermediaries fulfil an important role, akin to a broker, auditor issues a validation statement which they they have blurred the market. upload to the Registry who we then liaise with to Buys PIUs/WCUs Current Role of Sells PIUs/WCUs Landowner Corporate Outlining the Project Developer’s Service ensure the PIUs are issued. Intermediary As landowner’s using our carbon advisory services can iii) Verifying the Project CarbonStore Matches Sellers with Buyers pick and choose the tasks which they would like us to As we mentioned earlier, verification must be complete for them, our services are best explained undertaken five years after planting is completed and by outlining the full scope of our Project Developer thereafter at least every 10 years. These deadlines service so that those seeking our advice or help can are strict so we need to start the process in good understand where they might need it. time. We can help with the mensuration survey and to complete the 14-page Project Progress Report and we i) iiRegistering the Project CarbonStore’s Approach to Selling PIUs and WCUs will help arrange any onsite visits. Registration requires three forms: a map of the project Assuming these are properly completed, the auditors CarbonStore adopts a wholly different approach Developing a More Informed and Engaged (compliant with the Code’s requirements), the carbon issue a verification statement which permits the transfer which, by matching landowners wanting to sell PIUs Landowning Base calculator and certain key details about the scheme’s and WCUs directly with companies wanting to buy of PIUs into WCUs on the Land Carbon Registry. Again, With prices for PIUs and WCUs rising, carbon funding is duration, start date, location and purpose which we them, ensures complete transparency in the prices we will complete these final tasks so that you (or the becoming an increasingly significant source of income have aggregated into an easily completed table. paid to or by each party in the transaction. company to which you’ve sold the PIUs) become the from woodland creation. However, for landowners We will help you draw up the carbon calculator so that owner of verified Woodland Carbon Units. Moreover, CarbonStore, by charging a percentage- to access this revenue properly, it is important you maximise the WCUs generated by the project. based commission fee for arranging the transaction they understand the Woodland Carbon Code, the We then register your scheme onto the Land Carbon ensures that the rewards and costs of woodland-based commitments it asks of landowners and the various Registry under Tilhill’s master account, liaising with the carbon offsetting services are equitably distributed forms, spreadsheets, and inspections which it entails. Woodland Carbon Code to ensure they are satisfied between the two most important parties in the with all the details provided. We, at CarbonStore, hope this brochure, by explaining transaction. the key principles underpinning the Woodland Carbon Code and the main steps involved, helps to achieve that goal. However, it would require intensive tuition to explain every aspect of the Code.

20 www.carbonstoreuk.com 01786 649387 21 Helping Landowners to Sell and Companies to Buy PIUs and WCUs A Healthy and Constructive Relationship between Landowners and Companies The sale of PIUs and WCUs involves five straight- v) Transferring Ownership of the PIU Understandably, both landowners and investors want to ensure that they are selling or buying units to or from forward steps (see diagram): This final task is undertaken by the Project Developer a partner that they are comfortable with. It is important to many landowners to know that the companies i) Promoting the Project on the UK Land Carbon Registry. Once the agreed buying their units are reputable, and that they are already doing everything they possibly can to reduce payment has been received, the Project Developer The first step involves promoting the scheme to their Greenhouse Gas (GHG) emissions. For investors, they want to invest in the best possible projects in the transfers the units to the corporate buyer’s account on potential buyers. CarbonStore produce a brochure market, maximising the social, environmental and ecological benefits that the woodland creation can provide. the registry. detailing the project’s key details and its benefits to Therefore, at CarbonStore, we introduce landowners to potential investors as early as we possibly can in the process, helping to develop this crucially important relationship from day one. This can even be pre-planting! the local ecology, community, and economy. This is The Five Steps to Securing the Sale of Carbon Units marketed through the ‘Carbon Opportunities’ page Of course, the objectives and needs of one company can vary enormously to those of another, and this is on our website and distributed via our social media the same for landowners. CarbonStore helps to match the most appropriate projects with the most suitable platforms as well as emailed to our corporate clients. 1. Promoting the Scheme companies, to ensure that both the landowners and investors are happy. There are a variety of wants and ii) Attracting a Buyer needs from companies that landowners should be aware of, but the landowner should feel confident that they only need to agree to those objectives that they themselves feel comfortable with. As discussed earlier, CarbonStore enjoys strong links in the corporate sector which we are actively For example, many companies are interested in bringing staff or customers to the woodland to plant some of developing. These connections ensures that your 2. Attracting a Buyer the trees themselves. This can really help to highlight how important the woodland creation is to the company, project will enjoy the widest possible awareness and and to strengthen the attachment to the woodland for the staff and customers. Although, if the landowner the maximum interest from the target audience. would prefer to keep all the woodland planting ‘in house’ then that is absolutely fine, and they are under no obligation whatsoever to allow more access than they are comfortable with. iii) Agreeing Price, Access and Signage Rights A transparent and equitable price for PIUs and WCUs 3. Agreeing Price, Access Rights is vital to the woodland carbon market’s success. Accordingly, we publish a monthly newsletter offering updates on recent pricing trends and transactions across the market. We will help both parties agree a price which fairly reflects the species mix, ecological 4. Completing Legal Contracts merits, location and accessibility of the woodland. iv) Completing the Legal Agreements We explained earlier that the sale of a PIU represents a promise, by a woodland owner, to sequester one 5. Transferring PIU Ownership tonne of CO e as their trees grow so that, in time, 2 and Payment they deliver a verified WCU. This is an important commitment which, for the sake of the wider market, must be upheld. Please note that an important obligation of both Woodlands are a natural asset and this can leave landowners and project developers, contained in them susceptible to unavoidable events, such as wind, the Landowner Commitment Statement and the disease, and fire. These are no one’s fault and it is Project Developer Agreement, is that they ensure important that their risks are reasonably apportioned in buyers of PIUs and WCUs ‘make true and accurate any agreement between the buyer and seller of a PIU. carbon statements about the project’. On the other hand, crop failure may result from poor woodland management. Unlike the force majeure circumstances previously described, poor is wholly avoidable and we believe it is important to reflect this in the legal agreements.

22 www.carbonstoreuk.com Glossary of Terms

Additionality – A project is ‘additional’ if it, and the restated by more than one party with an interest in a standards. The incidence of this can be minimised Individual Project – A project that is registered, activities supported by it, are not legally required and project. See Carbon reporting. by insisting that projects only use one registry validated and verified under the Woodland Carbon could not have taken place without carbon finance. and carbon registries ensure that a project is not Code by itself, in its own name by a Project Developer, Carbon dioxide (CO ) – A naturally occurring gas and 2 already registered on another carbon registry. in contrast to a group scheme. Area – Carbon can be claimed for the net woodland by-product of burning fossil fuels or biomass, land-use area rather than the gross area. changes and industrial processes. It is the principal • Double-monetisation – A carbon unit in an Annex Kyoto Protocol – the Kyoto Protocol is an 1 country is monetised once as a voluntary unit by • Net woodland area is the area of a project planted anthropogenic (caused by human activity) greenhouse international agreement linked to the UNFCCC. a project and a second time by the project host- with trees or allowed to regenerate naturally. It gas that affects the Earth’s climate. The major feature of the Kyoto Protocol is that it set country’s government as an allowance (Assigned binding targets for 37 industrialised countries and the excludes any designed or other open areas. Carbon offsetting – A way of compensating for Amount Unit or Removal Unit). This is an issue in EC for reducing GHG emissions in the first accounting • Gross woodland area is the area of a project by making an equivalent most Annex 1 countries. period of the Protocol (2008 and 2012). In 2012 the including any open areas. This can include carbon dioxide saving elsewhere. This currently • Double-claiming – An organisation or government Durban Agreement has set accounting rules for the designed open ground as well as other open land involves calculating emissions and then purchasing makes a claim about the same unit of carbon second accounting period (2013– 2020). See also the or water bodies. Kyoto compliant ‘credits’ from emission-reduction reduction as another organisation. It may be Paris Agreement at www.unfccc.int. projects elsewhere. Kyoto compliant woodland Assignment – Labelling/Assigning a Pending Issuance perceived as satisfactory that an organisation claim creation can currently only occur outside the UK. This Landowner Commitment Statement – This details all Unit on the UK Woodland Carbon Registry with the ‘we created a carbon neutral product’ and another will change in 2020 once the Paris Agreement comes the commitments required of the landowner in order name of the buyer. Assigned units cannot be re-sold, organisation claims ‘we sell a carbon neutral into effect. to validate their project with the Woodland Carbon but they can be used and ’retired’ once they are product’ or government claims ‘we reached our Code. Further details are available on the Code’s verified. Climate change – Change or changes in the climate emissions reduction target’. website. which can be directly or indirectly attributed to human Barrier – Any obstacle to reaching a goal that can be Environmental Impact Assessment (EIA) – These activity (UNFCCC Article 1). Land Carbon Registry – see IHS Markit Registry. overcome by a project or measure. regulations apply to forestry related projects. If the CO e (Carbon Dioxide Equivalent) - This is a standard Leakage – is GHG emissions outside the project Baseline – The projected changes to carbon on the 2 Forestry Commission/Natural Resources Wales/ unit for measuring carbon footprints. The idea is to boundary as a result of the project (e.g. displacement site if the project weren’t to go ahead (the ‘business Forest Service considers that project proposals may express the impact of all major greenhouse gases of agricultural activities might result in or as usual’ scenario). This is a reference projection to have a significant effect on the environment then the in terms of the amount of CO that would create intensification of use of non-wooded land elsewhere). which the carbon benefits of project activities can be 2 proposer must obtain consent for the work from the the same amount of warming. That way, a carbon compared over the project lifetime. relevant body and submit an Environmental Statement Long-term average carbon stock – The mean carbon footprint consisting of lots of different greenhouse as part of the application for consent. stock over the long-term in a woodland, averaged Buffer – A carbon pool of ‘unclaimed carbon’ to cover gases can be expressed as a single number. over several whole rotations, if clearfelling. For unavoidable potential losses which may occur from Forest – See ‘Woodland’. Compensatory planting – New woodland created projects where there is no clearfelling the long-term the project over time, thus ensuring the permanence Greenhouse Gases (GHGs) –The gases which are to compensate for woodland lost elsewhere which average is assumed to be no less than the carbon of verified Woodland Carbon Units. The unit type for causing the warming of the Earth’s atmosphere that provides at least the equivalent woodland-related net predicted to be sequestered by Year 100, for a given buffer credits is ‘PIU Reserve’ or ‘WCU Reserve’. is leading to climate change. The Kyoto Protocol deals public benefit embodied in the woodland which was scenario. For sites where clearfelling is proposed, then with six of these: carbon dioxide, hydrofluorocarbons, Carbon pool – A system that can store and/or removed (e.g. for development (windfarms or in urban the long-term average is calculated over several whole methane, nitrous oxide, perfluorocarbons and accumulate carbon, e.g. above-ground biomass, leaf/ areas) or where woodland is removed to restore open rotations of a given length, where the carbon stock sulphur-hexafluoride. These contribute to the needle litter, dead wood and soil organic carbon. habitats). onsite varies from zero at the start of each rotation to ‘greenhouse effect’. a maximum just prior to clearfelling. Carbon reporting – Involves a carbon owner or Deforestation – Permanent or long-term removal Group Scheme – A group of projects that work organisation reporting carbon sequestration in their of woodland; the direct, human-induced conversion Monitoring Report – A report/spreadsheet together to gain validation/verification. These projects annual environmental or greenhouse gas report. of forested land to another land use, or the long- summarising the results of monitoring by field survey will be coordinated and overseen by a group scheme This can only be done once, after the carbon is term reduction of the tree canopy cover below the carried out prior to each verification. manager. The group scheme manager is responsible sequestered, and the relevant number of units should minimum 20% threshold. Organic Soil – Soil which contains more than 50cm have been ‘retired’ from the UK Woodland Carbon for ensuring that all projects within the group conform Double-counting – There are a number of issues deep organic (or peat) surface horizon overlaying the Registry. See Carbon statement. to the Code. which might result in double-counting: mineral layer or rock. Carbon sequestration – Direct removal of carbon ICROA – The International Carbon Reduction and • Double-selling – The same carbon unit is sold Paris Agreement – the Paris Agreement, which came dioxide from the atmosphere through land-use Offset Alliance is a non-profit organisation made up of more than once to different parties. The incidence into force in 2016, is the international agreement, change, afforestation, and/or increases in the leading carbon reduction and offset providers in of this can be minimised by the use of a carbon following on from the Kyoto Protocol, in which every soil carbon. the voluntary carbon market. unit registry. country determines, plans and regularly reports its IHS Markit Registry – The online register of Carbon statement – a statement of what a project • Double certification – The same carbon project contribution to mitigate climate change. At the time of properties that have registered for the WCC is held by will sequester or has sequestered to date. It can be is validated/verified against two or more carbon writing it had been ratified by over 85% of 197 countries. a consultancy company called IHS market. See also the Kyoto Protocol at www.unfccc.int.

24 www.carbonstoreuk.com 01786 649387 25 Pending Issuance Unit (PIU) – The purpose of these Reversal – A reversal is when the net greenhouse WCF – Woodland carbon fund (a separate grant units is to demonstrate the quantity of potential future gas benefit of a project, taking into account the scheme in England). sequestration. PIUs will help to keep track of up-front baseline, leakage and project carbon sequestration, is Woodland – Land under stands of trees with a canopy sales/purchases but they cannot be retired or used/ negative in a given monitoring period. The size of the cover of at least 20% (25% in Northern Ireland), or reported. reversal is the net carbon sequestration at the current having the potential to achieve this. This definition verification minus the net carbon sequestration at the Permanence – The issue of ensuring that removal of includes integral open space and felled areas that are previous verification. carbon dioxide from the atmosphere is permanent, awaiting restocking (replanting) (This definition is also and not reversed at a future point in time. Woodland ‘Small’ – Project is a single project with five hectare applicable to ‘forest’). projects carry a risk of reversibility and as such net planting area or less where the small project Woodland Carbon Unit (WCU) – When a project safeguards must be in place to minimise that risk and process is used. is verified, PIUs which have been confirmed as to guarantee replacement or alternative woodland Standard Project – Single woodland creation project sequestered will be transferred to WCUs. These should a reversal occur. which can be any size but and can constitute several units can be considered as guaranteed, delivered Project Design Document – A document created by individual blocks of woodland with planting spanning carbon ‘credits’, and as such can be retired and used/ the project developer for validation to describe how up to a five consecutive planting seasons; blocks reported. the project meets the requirements of the Code at the of woodland must be part of a contiguous land Woodland creation – The direct, human-induced outset. ownership unit or must be under the same ownership conversion to woodland of land that has not and management plan. Project Developer – The individual or company who previously been forested according to historical represents a project/group through the validation/ UK Woodland Carbon Registry – the official record records. The Code sets a threshold of a continuous verification process or in the UK Woodland Carbon of the location of projects, the predicted and actual absence of woodland over the previous 25 years. Registry. The project developer could be the carbon sequestration as well as the owners and landowner, a third party representing the landowner, retirement of carbon units. or the group manager. Validation – The initial evaluation of a project against Project Developer Agreement – The commitments the standards of the Woodland Carbon Code, undertaken by the project developer when agreeing undertaken by a certification body accredited by the to supervise a project through validation and UK Accreditation Service. verification. Validation/Verification Body – independent Project Duration – The time over which project third-party organisations accredited by the UK activities are to be monitored, verified and carbon Accreditation Service to validate or verify Woodland sequestration claims are to be made. Projects can be Carbon Code projects. up to 100 years in duration. Verification – The ongoing evaluation of a project Project End Date – The last day a project accounts for against the standards of the Woodland Carbon Code, carbon sequestration. Project end date = project start undertaken by a certification body accredited by the date + project duration. If start date = 01/04/2013 UK Accreditation Service to assess against the WCC. and project duration is 100 years, then end date is Verification assesses the carbon sequestration that 31/03/2113. has actually occurred as well as continuing sustainable . Project Implementation Date – The date when planting begins (or fencing/deer control for natural Vintage – The time period in which credits are regeneration). delivered. For the Woodland Carbon Code, the delivery of carbon is predicted and verified in five or Project Progress Report – A report created by the ten-yearly blocks (e.g. 2017–2027); each time period is project developer for verification to demonstrate how known as a vintage. the project continues to meet the requirements of the Code. Voluntary Carbon Market – The Voluntary Carbon Market (VCM) was formed with the aim of driving Project Registration Date – The date when a project finance to activities that reduce greenhouse gas (GHG) moves from ‘Draft’ to ‘Under Development’ status in emissions. the UK Woodland Carbon Registry. WCaG – Woodland carbon guarantee (the £50m fund Retire – Moving a Woodland Carbon Unit on the UK set aside by government to buy Woodland carbon Woodland Carbon Registry to a publicly available units at auction) ‘retirement’ account to show it has been taken out of circulation and cannot be used again. WCC – Woodland Carbon Code (the standard).

26 www.carbonstoreuk.com 01786 649387 27 Contact Us

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