Fifth Report - Seeing the wood for the trees: the contribution of the forestry and timber sectors to biodiversity and net zero goals

There are currently multiple overlapping strategies which purport to articulate the UK Government’s ambitions, actions, and objectives for woodland creation. Stakeholders are concerned that it is unclear how the Government’s policy objectives for forestry and the timber sector align with its land use and decarbonisation policies. Furthermore, it is not clear what will replace the England Trees Action Plan when it lapses in 2024 to give long term direction for Government’s goals for woodlands.

Although it has some references to the timber sector, the England Trees Action Plan, intended to be the ‘strategic framework’ for treescapes in England, did not comprehensively articulate a vision for timber production. It has not provided an adequate framework for the forestry sector.

We therefore welcome Defra’s engagement with the forestry, timber and construction sectors in relation to the industry-led National Wood Strategy and through the Timber in Construction working group. It is important that the proposed Timber in Construction Roadmap is published as soon as possible and provides clarity on how the growth of timber, and its use in domestic construction, will be encouraged.

To give the sector greater clarity, we recommend that future strategies for forestry should be fully integrated so as to establish a clear and holistic long-term vision for all woodland creation types. The Government should clearly set out how forestry in England will contribute to the delivery of its policy objectives for timber as well as for nature recovery and climate.

We further recommend that the Timber in Construction roadmap should be closely related to, and developed in conjunction with, the Government’s vision for the forestry sector as a whole. As we recommended in our recent report, Building to net zero: costing carbon in construction, this roadmap must address the afforestation commitments made in the England Trees Action Plan, and the need to demonstrate how timber supply in future decades will help to meet growing demand for timber construction products, in a comprehensive, integrated and strategic way.

Tree planting and woodland creation are vital for delivering many of the Government’s environmental targets and commitments, as well as providing a domestic source of timber. We therefore support the tree planting targets set by the UK Government and welcome the commitments to increase woodland cover in England made in the Environmental Improvement Plan.

We are concerned about the current rate of tree planting. In 2022–23, tree planting rates across the UK were at similar levels to the previous four years and remained below half the rate required to meet the overall target of 30,000 hectares per year by March 2025. At this rate it is extremely unlikely that current tree planting targets for England or the UK will be met. (Paragraph 50) 76 Seeing the wood for the trees: the contribution of the forestry and timber sectors to biodiversity and net zero goals

We recommend that in its response to this report the Government provide an assessment of the progress of tree planting in (a) England and (b) the UK against the targets set by Ministers; set out its latest and most realistic estimate of the numbers of trees likely to have been planted by March 2025, and indicate whether it plans to adopt policies to accelerate the current rate of planting.

To ensure that the nation’s woodlands help to deliver the Government’s ambitions for nature, carbon storage and timber production, several stakeholders have called on the Government to apportion tree-planting targets in line with desired outcomes, to ensure that the right balance of outcomes is achieved from woodland creation. We agree. This initiative could also give the forestry sector and investors clearer direction as to the sort of woodlands which ought to be created under the policy.

In order to give the forestry sector greater clarity, we recommend that following the development of the Land Use Framework, the Government divide its overall tree planting targets into sub-categories for the types of woodland needed to achieve different goals. These targets should be underpinned by the clear, holistic long-term vision common to the timber and forestry sectors which we recommend above. (Paragraph 53) Delivery of tree planting

Forestry England has planted only 303 hectares against its target of 2,000 hectares of new planting between 2021 and 2026. Despite pursing leasehold partnership arrangements, in recent years Forestry England has planted virtually no new woodlands on leasehold land.

Decisive action and a clear delivery plan are required for Forestry England to meet its target of planting 2,000 hectares of new woodland by 2026. We recommend that a plan be prepared by the end of October 2023 and published for transparency, to demonstrate to the public and the private sector that Forestry England is playing its part in meeting the national tree planting targets and in contributing to future timber supply.

The private sector is concerned about the implications of delays to Forestry England restocking on future timber supply. Forestry England is responsible for a significant proportion of domestic timber production and should be appropriately resourced to carry out timely restocking.

In addition to planting new woodland where possible and using good forestry practice to do so, we recommend that Ministers ensure that Forestry England has sufficient resources to restock cleared forest areas as soon as possible, to ensure that Forestry England at least maintains its contribution to future timber supply.

Central government is a major landowner. The Greening Government Commitments commit the Government to identify opportunities to contribute to nature recovery on the Government estate. Woodland creation can be a significant contributor to nature recovery. (Paragraph 70) Seeing the wood for the trees: the contribution of the forestry and timber sectors to biodiversity and net zero goals 77

We recommend that Ministers commission work to identify opportunities for woodland creation on the Government estate, to advance nature recovery further and increase timber production.

Public annual reporting on progress towards the Greening Government Commitments apparently ceased in 2019–20. We recommend that annual reporting of this nature should be re-established as soon as possible, to give assurance to Parliament and the public that the Government is contributing to nature recovery to the fullest extent possible.

The Government is relying on third parties to plant the lion’s share of the trees required to meet its tree planting targets and thus deliver timber production as well as a suite of climate and environmental objectives. It is therefore crucial that the Government is clear on what it requires prospective planters to do, and that it provides competitive and targeted incentives to encourage this. Given that the timber sector is a for-profit sector, it is appropriate that the England Woodland Creation Offer pays public money to incentivise the provision of public goods in the form of ecosystem services and nature restoration. We are nevertheless concerned that prospective planters seeking to plant productive woodlands are deterred from applying for the scheme because of a perception that it does not support productive forestry. The Government must therefore communicate as clearly as possible the fact that the England Woodland Creation Offer—the main grant to incentivise tree planting—can be used to support mixed forests which are commercially productive as well as benefiting nature recovery.

We recommend that in all its forestry and timber strategies the Government must ensure that it is clear to private landowners and the commercial forestry sector that grant schemes are intended to support planting for domestic timber production through the establishment of mixed woodlands planted to the UK Forestry Standard, as well as the establishment of majority native broadleaf woodlands.

To realise the benefits of tree planting, and to avoid detrimental outcomes, it is essential that the ‘right tree in the right place’ principle is followed. The ‘presumption to plant’ principle being developed by the Forestry Commission could be a useful tool to enable ecologically sensitive tree planting and faster approvals, and is likely to reduce the administrative burden entailed in woodland creation so as to encourage private landowners to apply for woodland creation grants.

The reliance on the UK Forestry Standard to ensure the sustainability of planting in areas identified as ‘low risk’ could provide a proportionate risk-mitigation mechanism. For this to operate effectively it is important that Forestry England maintain its monitoring of the compliance of new woodland with the UKFS beyond the establishment stage. We discuss this issue in further detail below.

For transparency, we recommend that the Forestry Commission publish a summary of the analysis underpinning the ‘presumption to plant’ system when details of how the system will work are announced. (Paragraph 97) 78 Seeing the wood for the trees: the contribution of the forestry and timber sectors to biodiversity and net zero goals Sustainable timber production

Against a backdrop of increasing demand, the UK’s softwood timber production is set to peak in the late 2030s before falling back to current levels in the 2040s. Given the UK’s heavy reliance on timber imports and the potential negative impacts that increased UK and global demand could have on the planet’s most ecologically sensitive and biodiverse forests, it is right that the UK should do more to meet a higher proportion of its timber consumption through domestically grown timber. It is unlikely that the UK will be able to fully supply all its timber needs domestically, especially against a backdrop of increasing demand and limited land availability. There is nevertheless scope to increase domestic timber production.

We recommend that the Government set a realistic long-term target for the amount of timber to be produced domestically. This target should be informed by: • the analysis being undertaken to produce Defra’s Land Use Framework; • a comprehensive analysis of the commercial species which need to be planted, and over what area, and • the context of the global timber market, including a realistic assessment of the level of imports still required to meet both the quality and quantity requirements of the UK market.

In tandem with this target, and in line with our earlier recommendations, we recommend that the Government determine the proportion of new woodland to be established under current targets which is to contribute to timber production.

Delivery of the Government’s net zero and nature recovery targets depends on wide- scale woodland creation. The amount of CO absorbed, the levels of biodiversity 2 supported and other benefits or negative effects of woodland creation are all highly variable, depending on where and how woodland is established, the tree species present, site conditions and management.

Planting more conifer trees is needed if domestic softwood production levels are to be maintained or increased. However, a policy to grow productive woodlands to achieve future timber supply and other benefits for nature and climate, are dependent on forests surviving in the medium to long term. Such policies should therefore be developed within an overall strategy which prioritises species diversity and resilience.

New or restocked woodlands planted to the UK Forestry Standard (UKFS) will have lower yields of timber per area. The planting of predominantly broadleaf species in recent decades has reduced the future availability of softwood timber. To ensure the continued availability of softwoods from productive forestry, it is evident that rates of conifer planting compliant with UKFS ought to increase. But increased planting of conifers ought not to be undertaken at the expense of native broadleaf species, given the clear importance of the latter for biodiversity levels. (Paragraph 151) Seeing the wood for the trees: the contribution of the forestry and timber sectors to biodiversity and net zero goals 79

Given the different advantages of different woodland types and species mixes for biodiversity, carbon storage and timber production, to ensure that the benefits of the nation’s woodlands are fully realised, the total area of woodland managed to the UKFS must be increased. Significantly expanding the UK’s woodland cover is necessary not only to compensate for predicted shortfalls in the supply of domestically-produced softwood timber, but also to enhance the resilience of the nation’s woodlands to future pest, disease and climate challenges through increasing the diversity of trees planted.

We recommend that the project board with oversight of the current quinquennial review of the UK Forestry Standard ensure that the revised Standard not only contributes to beneficial outcomes for biodiversity and carbon storage but also supports productive forestry to the fullest extent compatible with climate and nature goals. This overall objective must be supported by the policy instruments available to the Forestry Commission in England and to Defra Ministers. The Commission and the UK Government should seek to work constructively with their counterparts in the devolved administrations and partner forestry agencies to ensure the overall growth of the forest estate managed to the UK Forestry Standard.

The UK Forestry Standard underpins regulation of the sustainability of the nation’s forests and plays an important role in ensuring that renewed efforts to increase timber supply do not repeat the mistakes of the past. Yet the existence of the standard is not proof that the nation’s forests are being managed sustainably. We are concerned by reports that compliance with this important standard is not being monitored throughout the lifetime of England’s forests and reports that Forestry England lacks labour resource to carry out routine monitoring. Without regular monitoring, Forestry England cannot be sure that forests are being managed sustainably to the UKFS beyond the establishment phase.

The Government aims to increase tree-cover expansion at rates not seen for decades in order to deliver a range of ecosystem service benefits. To ensure that these benefits are realised, and to deliver the Government’s vision for increased woodland cover, Forestry England must be resourced appropriately so as to ensure that new woodland is compliant with the UKFS at establishment stage and throughout the lifetime of the woodland.

Given the importance of the UKFS in ensuring that forests are managed sustainably, we recommend that the Forestry Commission establish a programme for the routine monitoring of woodland to ensure that the standard is being adhered to beyond establishment, adopting new technology to aid this, where feasible to do so.

We further recommend that the Forestry Commission urgently review the resources available to Forestry England so as to ensure that it has sufficient resources to ensure the compliance of woodlands with the UKFS. (Paragraph 166) 80 Seeing the wood for the trees: the contribution of the forestry and timber sectors to biodiversity and net zero goals Using domestically grown timber to contribute to reach net zero

We welcome the Government’s aims to increase the uptake of timber in construction. The long-term use of timber in construction offers longer term carbon storage potential than other uses of harvested wood products and therefore has an important role to play in helping the UK to meet its net zero targets.

It is important that domestically-grown timber resulting from the current drive to plant is available for use in construction as far as possible. While there is scope to use UK-grown timber for a wide variety of non-structural purposes, engineered solutions and potentially changes in construction practices are required to allow the use of domestically grown timber structurally. Engineered timber, for example cross-laminated timber, laminated veneer lumber and heat-treated timber, offer opportunities for domestically-grown timber to be used to create structural components and be utilised in construction. We welcome the Government’s support for the development of innovative timber products.

To support the Government’s commitments, we reiterate the recommendation made in chapter 1 that the Timber in Construction roadmap be published as soon as possible. The roadmap must comprehensively address the afforestation commitments made in the England Trees Action Plan and the need for timber construction products.

For UK-grown timber to be used in construction, the Government needs to support the sawmilling sector to transition UK production towards producing a higher percentage of construction grade timber products and engineered timber. Action to support this transition should be specifically set out in the Timber in Construction roadmap.

The Timber in Construction roadmap should consider how Government can incentivise changes in practice to allow the safe use of domestically grown timber in construction, including through the use of innovative engineered timber products.

Growing the market for hardwood in composite products—as an alternative to use for firewood—could utilise broadleaf resources in the UK, with the added benefit of incentivising more broadleaf woodlands to be brought into management. However, growing quality hardwoods remains difficult due to disease and pests, and undermanagement.

We recommend that, as part of the Timber in Construction Roadmap, the Government consider how the future UK market can be served by a greater proportion of domestically grown hardwoods (for example, through engineered timber products).

While imported woody biomass continues to be a major bioenergy feedstock, it is important that biomass used in UK power generation, whether from the UK or overseas, is genuinely sustainably sourced in a way which minimises the impact on forest biodiversity and carbon stocks. The CCC has continually stressed that strengthened governance of bioenergy markets is needed domestically and internationally to manage the risks to sustainable low-carbon production as the global biomass market scales up. (Paragraph 216) Seeing the wood for the trees: the contribution of the forestry and timber sectors to biodiversity and net zero goals 81

The Biomass Strategy, which was promised by the end of 2022, must now be issued as soon as possible. We recommend that the Strategy take a risk-based approach to ensuring the sustainability of biomass use, managing risks on a domestic and a global scale. In preparing the Strategy we recommend that the Government consider the risks associated with life-cycle carbon emissions, land-use trade-offs, impacts on biodiversity and ecosystem service provision, and competition with other uses of biomass, and consider the merits of establishing quotas for, or a moratorium on, the use of the highest risk feedstocks.

The amount of biomass used by the UK power sector should be constrained by the supply of low-carbon sustainable feedstocks, factoring in potential domestic supply and rising trends of bioenergy use globally. The Biomass Strategy should set out and quantify the potential of different biomass sources to deliver energy and explain how sufficient sustainability sourced biomass feedstocks will be found, from where, to meet demand required by BECCS, in line with net zero pathways.

The Government needs to manage risks associated with the sustainability of feedstock supply through its governance framework for biomass, which must be strengthened. Improvements should include: • All biomass used for large-scale power generation in the UK should be required to adhere to the sustainability criteria set by the UK governance framework. The Government should include in its Biomass Strategy a thorough review of the subsidy regime for biomass. • The woody biomass land criteria should stipulate that generators and participants must demonstrate that all of their woody biomass supplied is ‘legal and sustainable.’ • As soon as robust life-cycle carbon assessment methodologies are available, biomass sustainability requirements should include the complete accounting of the life-cycle carbon emissions of using a source of woody biomass, from the carbon stored in the forest, through to the stack emissions.

We echo and endorse the recommendation of the Business, Energy and Industrial Strategy Committee, in its recent report on Decarbonisation of the power sector, that the full lifecycle emissions from BECCS facilities in the UK should be made carbon neutral within a timeframe compatible with the UK’s climate targets.

As demand for biomass feedstock grows globally, sourcing more biomass domestically could increase the security of UK biomass supply. Provided that overharvesting is avoided, bringing a higher proportion of existing forests into active management could provide a source of woody biomass for bioenergy in the UK with added benefits for biodiversity and resilience.

We recommend that the Government conduct an impact assessment of the effects on the delivery the UK’s climate and biodiversity commitments of bringing a higher proportion of existing forests into active management. (Paragraph 229) 82 Seeing the wood for the trees: the contribution of the forestry and timber sectors to biodiversity and net zero goals

Short-rotation forestry and short-rotation coppice crops are currently little used, but demand for them is likely to increase. If they are considered to be significant and necessary bioenergy feedstock sources, their planting must be scaled up sustainably, in line with best forestry practices and limited to an appropriate area of land, so as to minimise competition with food crops.

In the forthcoming Biomass Strategy and Land Use Strategy the Government must determine the capacity of the UK to supply bioenergy feedstock from its forest resources—including forest residues, short rotation forestry and coppicing—analysing the risks of drawing upon these resources and modelling land-use trade-offs, particularly in relation to security of food supply and in the context of the biodiversity crisis

We recommend that the Forestry Commission, as the Government’s experts on forestry, work with Ofgem to share best forestry practice. The objective of this collaboration ought to be to ensure that, should demand for domestic wood biomass in energy markets increase, the regulatory framework for bioenergy feedstocks derived from forestry crops and silvicultural activities is developed in line with principles of sustainable forestry. The collaboration ought to be undertaken in full recognition of the need to deliver on the UK’s commitments to halt and reverse biodiversity loss by 2030 under the Kunming-Montreal Global Diversity Framework, and on the Government’s commitments and obligations under the Environment Act 2021. (Paragraph 232) Seeing the wood for the trees: the contribution of the forestry and timber sectors to biodiversity and net zero goals 83