New woodland creation is one of the most cost-effective ways of reducing carbon emissions and offsetting our nation’s carbon footprint. The combination of an undersupply of our own timber in Wales and the ambitions of Wales and the Welsh Government to create new woodlands means that an organisation interested in creating new woodlands can play a pivoting role in combating climate change.

Woodlands have proven an attractive alternative asset for long-term investors, as they provide the opportunity to benefit from the value of a naturally growing commodity and the security of ownership of the underlying land. Woodlands have multiple benefits and these can be reaped in a way that makes a financial return for the investors.

A very new and interesting market is the trading of carbon. The sale of carbon credits allows landowners who create new woodlands to increase their financial returns by selling both timber and non-timber products. Government forecasts suggest these values could rise five-fold over a 40-year period which will have a significant impact on the profitability of a woodland creation project.

This document explores three investment options for Housing Associations

  1. Creating woodland by acquiring land.
  2. Creating new woodland through novel collaboration with the public sector e.g. NRW, Local Authorities etc.
  3. Acquiring existing woodland.