Mr. Alan W. WilliamsTo ask the Secretary of State for the Environment, Transport and the Regions if he will assess the possibility of establishing an intermediary organisation to administer and encourage farm woodland management as a carbon sink to offset the climate change levy for energy-intensive manufacturing companies. [131272]
§ Mr. MeacherThe Government are already committed to the establishment and sustainable management of woodland for a wide range of public benefits. Advice and grant aid is provided through the Forestry Commission's Woodland Grant Scheme and the Agriculture Department's Farm Woodland Premium Scheme.
Government have already stated that—subject to certain restrictions—companies with emission targets under the climate change levy agreements will be able to use traded emission credits to meet their obligations. This is likely to work through the wider UK Emissions Trading Scheme, under which trades are expected to take place from April next year, alongside the launch of the levy. Under the trading scheme there will be scope for creation of emission credits by projects which reduce greenhouse gas emissions. However, the Government are taking a cautious view on the inclusion of forestry projects in the scheme. There are concerns about the security and permanence of carbon fixed in this way, as well as monitoring and verification issues, that will need to be addressed before such projects can be permitted.
775WThe climate change levy is designed to be revenue neutral for the private sector and, moreover, expected to be broadly neutral between manufacturing and services.