How to generate carbon units if you are a tenant farmer
Published 22 July 2024
Applies to England
© Crown copyright 2024
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If you’re a tenant farmer on land suitable for woodland creation, learn how to generate carbon units and help tackle climate change through woodland creation.
You can follow this process if you or the landowner do not have a legal obligation to create woodland on the site.
You must ensure the landowner is in agreement and able to commit to the Woodland Carbon Code terms for the duration of the project.
Step 1: Landowner negotiation
Negotiate with the landowner to agree on carbon unit ownership and/or allocation.
You can work with a project developer to help with your woodland carbon project and prepare the required documents. Here’s how to find a project developer.
Step 2: Is the woodland creation project eligible for grant support?
Yes: Contact your local Woodland Creation team about funding options, such as the England Woodland Creation Offer.
You should also develop a UK Forestry Standard compliant woodland creation plan(s) following Environmental Impact Assessment regulations. Go to Step 3.
No: Develop a UK Forestry Standard compliant woodland creation plan(s) following Environmental Impact Assessment regulations. Go to Step 3.
Step 3: Check your eligibility for the Woodland Carbon Code
See if you’re eligible for the Woodland Carbon Code investment additionality test (with/without grant support).
Step 4: Is the project likely to pass the investment additionality test? (checked at validation)
No: Consider reducing the grant support (if relevant), or varying the woodland creation proposal, for example, species composition, woodland design etc.
Yes: Register your project and/or group with the Woodland Carbon Code before any woodland creation activity takes place. Go to Step 5.
Step 5: Do you want to sell your units to the government?
No: Your woodland creation activity can now begin on site, providing grant agreements are in place or Environmental Impact Assessment consent is given.
Yes: The government will buy your carbon units for a guaranteed index-linked price. Visit Woodland Carbon Guarantee to find out when the next auction takes place and how to take part. If you are successful in the auction you will receive a conditional offer.
Your woodland creation activity can now begin on site, providing grant agreements are in place or Environmental Impact Assessment consent is given. Go to Step 6.
Step 6: Validate your project
Once planting is complete, validate your project with an accredited organisation within 3 years of your Woodland Carbon Code project registration date.
Choose how you will manage your units
Your options for managing your units include:
- sell as Pending Issuance Units (PIUs): an estimate of future carbon capture
- sell as Woodland Carbon Units (WCUs): your woodland’s actual carbon storage, which can be sold privately on the open market or to the government through the Woodland Carbon Guarantee, once your project is verified at year 5 and then every 10 years
- offset against your own emissions by ‘growing your own’ carbon units
You can combine these options to suit your business needs.
Learn more about selling your units.
If this route doesn’t work for you, take a look at our other carbon routes to see if you are eligible.
The order of steps on this page vary from the PDF version. This is to ensure the context is retained without the visual elements.