Climate Change (Scotland) Act 2009 (Scottish Carbon Budgets) Amendment Regulations 2025: statement

Land Use, Land Use Change and Forestry (“LULUCF”)

The LULUCF sector incorporates significant emissions sources (including degraded peatland) alongside substantial sinks (most substantially, forestry and grassland). As such, while net sector emissions in 2023 were just 0.5 MTCO2e, the overall figure disguises these significant sources and sinks. Importantly, the sector includes the largest sources of organic sequestration, which are crucial to ensure Scotland can reach net zero emissions by 2045.

Significant progress has been made in restoring degraded peat. Through our world-class peatland restoration programme, we have restored around 90,000 hectares since 1990, including 14,860 hectares in 2024-25 alone. This has led to a reduction in peatland emissions of 2.2 MtCO2e per year compared to 1990. To further enhance the contribution of peatland to carbon storage, the forthcoming CCP is likely to build on previous commitments to support an increase in the annual rate of peatland restoration and the associated emissions reductions. This will be delivered through commitments to protect, manage and restore Scotland’s peatland in a way which works for Scotland’s rural communities, and so will likely differ in some ways from the pathway set out in the CCC’s balanced pathway.

Protection of peatland will be achieved in the CCP through the new provisions for peatlands and wetlands in the Good Agricultural and Environmental Conditions, continuing progress towards banning the sale of horticultural peat, and developing guidance and tools to support decision-making around development on peat. We will work with partners and stakeholders to incentivise the management of peatlands through the new agricultural support framework and through policies on deer management. Finally, our peatland restoration ambition will be set at a realistic level supported by measures to increase delivery capacity and to focus our investment where it can achieve the greatest benefits for climate mitigation and adaptation.

Over 55,000 hectares of new woodland has been created in Scotland in the past 5 years, divided roughly 60:40 between conifer and broadleaved woodland. This represents approximately 75% of all new woodland in the UK planted in Scotland in this period. The delivery target set out in the next CCP is likely to go higher than what has already been achieved, in part through grant funded woodland creation and new planting undertaken on the public forest estate by Forestry and Land Scotland.

An integrated approach between farming and forestry will be central to achieving woodland creation targets. Woodland creation proposals are subject to a wide range of measures to ensure that the right trees are planted in the right place. Woodlands offer multiple benefits to support farm businesses. Over half of the applications to the Forestry Grant Scheme are for smaller scale woodlands under 20 hectares which are typically part of existing agricultural businesses.

Delivery of these targets will require deployment of public funds to maximise woodland creation, along with attracting private finance such as through further development of the Woodland Carbon Code. Achievement of the CCP targets will also prioritise co-benefits for nature and communities through adherence to sustainable forest management as set out in the UK Forestry Standard. Increased use of sustainably sourced wood fibre will help further reduce emissions by encouraging the construction industry to increase its use of wood products where appropriate.