Farming in the Uplands - ARCHIVE: Defra

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Farming in the Uplands 27
nonetheless payments for ecosystem services represent an opportunity...However,
viable mechanisms must first be developed that are capable of gaining industry
confidence. 141
The CLA was also highly supportive of the development of new environmental markets:
Climate and water regulation are two areas that offer the greatest prospect of
encouraging private finance into upland areas and would help to reduce the
dependence on public supports. 142
64. However, the CRC also recognised that the transition from farming to providing public
goods could be problematic:
Many farmers are finding the transition from being food producers to stewards of
the land and deliverers of public goods difficult. They understand farming in terms
of production and experience considerable stress and low self-esteem when
confronted with the prospect of being, as some see it, reduced to “park keepers” 143
The CRC was particularly enthusiastic about the opportunities that might flow from
developing markets for water and carbon, although their report provided little detail of
how such development would be achieved . 144
Carbon Markets
65. In the UK the mandatory, or compliance, carbon market is the European Union
Emissions Trading Scheme (EU ETS). The EU ETS is a cap and trade scheme whereby
companies are allocated a carbon allowance (a cap) and can either reduce their own carbon
emissions, purchase allowances from elsewhere, or invest in emission reduction projects in
developing countries. 145 The voluntary carbon market has developed independently of the
compliance market. It enables companies, NGOs or individuals to ‘offset’ carbon emissions
to generate ‘offset credits’. In an ‘offset’ scheme there is no overall cap on emissions;
participants in the scheme can receive offset credits in return for making an investment in
carbon emission reduction projects. Offset credits may contribute towards formal carbon
reduction obligations, including cap and trade scheme obligations, or be part of voluntary
schemes. 146
66. In High ground, high potential the CRC recommended that the Department for Energy
and Climate Change work to “develop effective carbon markets and ensure that future
reward for land carbon management comes through that market”. 147 Professor Buckwell,
director of policy at the CLA, told us that uplands land managers could contribute to
141 Ev 63
142 Ev 59
143 High ground, high potential p 93
144 High ground, high potential, p 15, see Qq 47–48
145 See The European Union Emissions Trading Scheme, A review by the National Audit Office, March 2009
146 See Environmental Audit Committee, Carbon budgets, Third Report of Session 2009–10, HC 228-I, 11 January 2010.
147 High ground, high potential, p 89