A report from the Royal Society of Edinburgh (RSE) has called on ministers to rethink the substantial subsidies and tax breaks allocated to conifer forests, arguing that they do little to address the climate crisis. Instead, the report suggests redirecting funds towards planting longer-living native forests, which offer clearer benefits for climate and biodiversity.
According to the RSE, the Scottish and UK governments have allocated tens of millions of pounds in subsidies to the timber industry, with the majority going towards commercial conifer plantations. However, these monoculture plantations have shorter lifespans and fewer ecological benefits compared to native broadleaf trees.
The report highlights various financial incentives for forestry, including tax exemptions on timber income, capital gains, and inheritance, as well as subsidies for haulage and carbon credits. These incentives, the report argues, have contributed to soaring land prices and distorted the land market in Scotland.
Despite government policies requiring environmental impact assessments for new forest projects, the RSE found that enforcement by government agencies has been inadequate.
Prof Pat Monaghan, one of the report’s authors, emphasized the need to prioritize investments in tree planting that reduce carbon emissions while safeguarding biodiversity.
The report’s findings have raised questions about the Treasury’s lack of data on the foregone tax revenue due to these policies and the outdated notion of strategic importance in domestic timber supply.
While Scottish Forestry and the timber industry argue for the carbon-storing benefits of conifers and their economic contributions, the RSE emphasizes the importance of planting the right trees in the right places for biodiversity and carbon capture.
Moving forward, the report calls for significant changes in government strategy to ensure that public funds are used effectively for nature recovery and climate mitigation.
The Treasury acknowledged the tax relief for forestry but emphasized the simplicity of the tax system and the commitment to not introducing different tax treatments for various tree types.
Overall, the report underscores the urgent need for reevaluation and redirection of public subsidies to maximize environmental benefits in the face of climate change and biodiversity loss.
