The Scottish Parliament and Scottish Parliament Infor mation C entre l ogos. SPICe Briefing Scottish Forestry 21 November 2016 16/93 Morgan Tatchell-Evans This briefing provides an overview of the forestry sector in Scotland. A Forestry Bill is expected to be introduced in the Scottish Parliament in 2017 alongside procedures in the UK Parliament to fully devolve responsibility for forestry. This briefing describes: the current and proposed governance arrangements around Scottish forestry, the physical extent of Scotland's woodland resource, the associated jobs and economic activity, the key environmental considerations, and the relevant legislative environment. CONTENTS EXECUTIVE SUMMARY .............................................................................................................................................. 4 SCOTLAND’S WOODLAND RESOURCE .................................................................................................................. 5 THE TOTAL AREA OF WOODLAND ....................................................................................................................... 5 SPECIES COMPOSITION ....................................................................................................................................... 7 WOODLAND OWNERSHIP ..................................................................................................................................... 8 NEW PLANTING .................................................................................................................................................... 10 RESTOCKING ........................................................................................................................................................ 11 JOBS AND ECONOMIC CONTRIBUTION ................................................................................................................ 11 JOBS SUPPORTED BY FORESTRY .................................................................................................................... 11 FORESTRY’S CONTRIBUTION TO THE ECONOMY .......................................................................................... 13 ENVIRONMENTAL AND SOCIAL IMPACTS ............................................................................................................ 14 GREENHOUSE GAS EMISSIONS ........................................................................................................................ 14 BIOENERGY .......................................................................................................................................................... 16 BIODIVERSITY ...................................................................................................................................................... 18 FLOOD PREVENTION ........................................................................................................................................... 18 HEALTH AND WELL-BEING ................................................................................................................................. 19 BALANCING ENVIRONMENTAL AND SOCIAL IMPACTS .................................................................................. 19 COMMUNITY OWNERSHIP AND ENVIRONMENTAL AND SOCIAL OUTCOMES ............................................ 20 RETRACTED SALE AND LEASE PLANS IN ENGLAND AND SCOTLAND ......................................................... 20 THE POLICY ENVIRONMENT ................................................................................................................................... 21 THE SCOTTISH FORESTRY STRATEGY ............................................................................................................ 21 Outcome 1: Improved health and well-being of people and their communities ................................................. 22 Outcome 2: Competitive and innovative businesses contributing to the growth of the Scottish economy ........ 23 Outcome 3: High quality, robust and adaptable environment ............................................................................ 23 THE LAND USE STRATEGY ................................................................................................................................. 24 RENEWABLE ENERGY POLICY .......................................................................................................................... 25 BIODIVERSITY POLICY ........................................................................................................................................ 25 PHYSICAL & MENTAL HEALTH POLICY ............................................................................................................. 25 INTERNATIONAL CONVENTIONS AND GUIDELINES ........................................................................................ 25 FORESTRY STANDARDS AND AGREEMENTS ..................................................................................................... 26 INTERNATIONAL FORESTRY STANDARDS AND AGREEMENTS .................................................................... 26 UK FORESTRY STANDARDS AND AGREEMENTS ............................................................................................ 26 RELEVANT LEGISLATION ....................................................................................................................................... 27 ACTS OF PARLIAMENT ........................................................................................................................................ 27 EU LEGISLATION & STRATEGIES....................................................................................................................... 29 FINANCIAL SUPPORT FOR FORESTRY ................................................................................................................. 30 FORESTRY GRANT SCHEME .............................................................................................................................. 30 BARRIERS TO UPTAKE OF FORESTRY GRANT SCHEME ............................................................................... 31 TAX EXEMPTIONS ................................................................................................................................................ 32 GOVERNANCE STRUCTURE OF SCOTTISH FORESTRY ..................................................................................... 32 THE FORESTRY COMMISSION AND ITS SUBSIDIARIES ................................................................................. 33 DEVOLUTION OF FORESTRY IN SCOTLAND .................................................................................................... 35 STAKEHOLDER REACTIONS TO PROPOSED NEW GOVERNANCE ARRANGEMENTS ............................... 37 DEVOLUTION OF FORESTRY IN WALES ........................................................................................................... 39 ANNEX 1: GLOSSARY .............................................................................................................................................. 40 ANNEX 2: SFS INDICATORS CURRENTLY IN USE ............................................................................................... 41 2 CLIMATE CHANGE................................................................................................................................................ 41 TIMBER .................................................................................................................................................................. 41 COMMUNITY DEVELOPMENT ............................................................................................................................. 41 ACCESS AND HEALTH ......................................................................................................................................... 41 ENVIRONMENT QUALITY .................................................................................................................................... 41 BIODIVERSITY ...................................................................................................................................................... 42 BIBLIOGRAPHY ........................................................................................................................................................ 43 RELATED BRIEFINGS .............................................................................................................................................. 52 3 EXECUTIVE SUMMARY Scotland has a total of 1.44 million hectares of woodland, 33% of which is owned and managed by the Forestry Commission. 74% of this woodland is populated with conifers, the remainder with broadleaves. The forestry sector (including associated wood processing, supply chains and forest- related tourism) has recently been estimated to support around 26,000 jobs, and £954m of gross value added. The sector is particularly important to the rural economy. Woodland creation and management can contribute to climate change mitigation, biodiversity, flood management, and health and well-being. Forestry can also have negative environmental impacts under some circumstances. The forestry sector is affected directly and indirectly by a number of domestic policy frameworks, such as the Scottish Forestry Strategy (which is due for review), the Land Use Strategy and the Biodiversity Strategy. Delivery of Scottish forestry policy is currently the responsibility