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Project 2: Finances for woodland creation

Working with investors to develop business models and other mechanisms to increase income going into woodland creation.

What do we need to change about the conditions at the moment?

We need to incentivise both potential investors and landowners to create woodland.  At present, this is mainly done via government grants and tax incentives.  More investment in woodlands is needed from the private sector, individuals and communities, whether for commercial, ethical or other reasons.  There is potential for much greater investment in the benefits of woodland creation.  These benefits include the removal of carbon dioxide from the atmosphere and other ecosystem services such as regulating water supplies, providing biodiversity and others. 

What are we doing about it with this project?

Working with potential investors to develop and communicate new business models and instruments for private investment in woodland creation.

Key Output of the project Date expected Further information
Review of current knowledge and mechanisms May 2011 Enviromarkets report
Evaluation of potential models including market segmentation September 2012  
An investment appraisal for UK woodland creation September 2012  
Outlines of new funding models and instruments for investment 2012  

Exploring the Use of Bonds to Support Woodland Creation



Pilot projects, workshops etc Further information
Workshop to explore funding models for woodland creation: March 2011 Feedback: There is a high level of interest but there appears to be substantial amounts of money potentially available to invest in green projects by, for example, investors who are seeking social and environmental, as well as financial returns. But to realise this we need to develop new financial instruments and assess whether the scale and liquidity of woodland creation projects can be made to appeal to such investors in practice.
Meeting with finance and legal experts to examine  funding models: August 2011 Feedback: Case studies will be put together that demonstrate the financial and other returns from woodland creation. Different approaches will be needed for different segments of the market; for example, institutional investors may have specific requirements that contrast with those of local communities. Expert opinion indicates that it is worth developing and testing some practical models. This will be taken forward.



Pat Snowdon
Economist and climate change Adviser
Corporate and Forestry Support, Forestry Commission

Tel: 0131 330 0303,


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