This paper offers a comprehensive overview of how UK and global carbon markets create new opportunities and challenges for British agriculture, forestry, and the valuation industry. It aims to raise awareness of diverse soil carbon sequestration projects (SCSPs) and their potential to incentivise landowners to engage in carbon sequestration. By examining pathways to connect SCSPs with the finance sector and exploring stakeholders' perspectives, the paper outlines potential valuation methods for rural assets with carbon projects. Using examples such as the Woodland Carbon Code, it highlights the complexities of carbon markets and encourages a collaborative approach to valuing natural resources in the UK.
Rather than prescribing a fixed method for incorporating carbon credits into valuations, this paper initiates a discussion around the challenges and opportunities in this evolving field. By presenting perspectives from landowners, the finance sector, and the valuation industry, it proposes avenues to further this critical dialogue and foster a more informed approach to sustainable valuation practices.
Published date: 31 October 2024