Forestry owners will legally contest any attempt by the State to lay claim to the carbon credits arising from private plantations.

The Irish Forest Owners (IFO) rounded on the Minister for Agriculture Charlie McConalogue over his recent assertion that the carbon credits from Irish forests were the property of the State.

IFO chair Nicholas Sweetman stated in a letter in this week’s Irish Farmers Journal that any move by the State to take ownership of the carbon sequestration rights of private woodland owners would be “challenged vigorously”.

The Limerick farmer maintained that Minister McConalogue was mistaken in his assertion that carbon credits were owned by the State

His comments were echoed by Limerick farmer John Hourigan, who described as “completely incorrect” Minister McConalogue’s insistence that farmers who planted forestry with State funding did not own the carbon credits that accrued from that woodland, and therefore could not trade them.

Hourigan, who is a dairy farmer and forestry owner, secured close to €9,000 for 2021 by leasing 300t of carbon credits from 100ac of semi-mature woodland.

The Limerick farmer maintained that Minister McConalogue was mistaken in his assertion that carbon credits were owned by the State.

“Property rights are not subject to the whim of a Government minister. They are a constitutional right,” Hourigan said.

He said a grouping of forestry owners and farmers was currently being established to legally challenge any Government attempt to prevent farmers leasing or trading their carbon credits.

The Limerick farmer pointed out that there was no mention of carbon credits in the forestry contracts that landowners signed when planting their lands 20 and 30 years ago.

The IFO, which represents over 1,400 private forest growers through their producer groups, reacted angrily

In an exclusive interview with the Irish Farmers Journal last week, Minister McConalogue, also cast doubt on the ownership of carbon credits from forestry which had not received State funding.

He said the ownership of the carbon sequestration rights from such plantations would have to be discussed as “the situation emerges and evolves”.

The IFO, which represents over 1,400 private forest growers through their producer groups, reacted angrily and labelled the minister’s comments as a “knockout punch to Irish forestry”.

IFO chair Nicholas Sweetman said that to suggest that farmer’s carbon credits can be hijacked by the State “adds insult to injury and is simply intolerable”.

Meanwhile, the IFA’s forestry chair Vincent Nally said it had sought legal advice on the ownership of the carbon rights and would challenge any attempt by the Government to interfere with a farmer’s rights to sell carbon removals and reductions from their forest to a voluntary carbon market.

“There is no reference in the terms and conditions of the afforestation scheme that gives the State the right to claim ownership of the carbon sequestered in our forests,” he said.

He said forest premium is paid to compensate farmers for the income foregone while the trees are growing.

Tom Hickey – Waterford Forest Owners’ Group

David Connors, chairperson, and Tom Hickey, secretary, Waterford Forest Owners Group, which is a member of the IFO.

“Why can’t I balance the carbon removals of my 40ac of forestry against the emissions from my cows? I am a dairy farmer and forestry owner from near Stradbally.

“A group of us have been looking at the question of carbon credits from forestry for a good few years. If my forests are soaking up carbon, then I deserve to be paid for it.

“If the Government wants trees to be planted, then they have to reward the people who grow them.

“When I decided to plant forestry in 1997 it was a big decision. But it was the best thing I did; financially, health-wise, in every way. And I’d love to see other people enjoy planting like I have, but this decision on the carbon credits could prevent that happening.”

Olive Leavy – Westmeath Farm Forestry Group and secretary of IFO

Olive Leavy, secretary, IFO.

“Forestry growers need to be able to trade carbon. Take broadleaves, for example. We need to plant more broadleaves, but to justify the investment the grower needs to be able to trade the carbon credits.

“The other option is for the Government to change the premium structure and extend the payments to 30 years. That’s the only way broadleaves will be any way viable.

“The minister’s remarks also fly in the face of a key objective of the EU New Forest Strategy 2030, the Carbon Farming Initiative. It states remuneration of mitigation efforts through incentive payments or the generation of tradable carbon certificates will create a new business model and provide a new source of income for farmers and foresters who implement sustainable activities leading to carbon removals and storage.”

Nicholas Sweetman – Wexford farmer, Irish Wood Producers member and IFO chair

Nicholas Sweetman.

“I would like to challenge Minister McConalogue to set out the legal basis for his claim that the State owns the carbon credits arising from private woodland? I have been growing trees for over 50 years and the notion that I don’t own the carbon that those trees sequester is totally preposterous.

“It just beggars belief that the minister would come out with such a statement. Does he not know that planting levels are at their lowest since 1949?

“Farmers own the trees they plant on their land, whether they receive grant aid or not. They own the carbon sequestered by those trees, and they own any carbon credits arising from that sequestration.

“If the minister has any legal basis for his assertion of State ownership let him produce it. It will be challenged vigorously.”

Sean Eustace Wicklow Private Woodland Owners

“I hope that Minister McConalogue is not legally correct in his assertion regarding State ownership of the carbon credits from private forestry, and that his claim is without foundation.

“I am very disappointed that he came out with a statement that will have a negative impact on private forestry owners who have done an enormous amount of work to promote forestry for the last 30 years.

Private forestry owners have been champions and advocates for the benefits of planting.

“The minister is also supposed to be an advocate for the forestry industry.

“But, by claiming ownership of the carbon credits from forestry, Minister McConalogue in my opinion is damaging the sector’s reputation, and is promoting a strategy that runs counter to the EU’s Climate Action Plan.”