OP-ED: Meg Pirie - Carbon-offset Schemes Pricing Welsh Farmers Out

By Meg Pirie

Carbon-offset schemes pricing Welsh farmers out

In a new report, the Welsh Affairs Committee has warned that greater transparency and information is needed around the purchase of viable farmland in Wales by corporations utilising carbon-offset schemes. The report comes after concerns were raised that companies may be attempting to ‘game the system’ by investing in farmland to offset carbon emissions which are then lost to agriculture in Wales. 

Welsh farming is unique compared to other UK nations as it has deep cultural and economic significance, also housing a role in safeguarding the Welsh language. The report found that agriculture, forestry and fishing sectors in Wales represent around 43% of Welsh speakers and workers. However, with many younger generations leaving due to a lack of work, there are concerns that the language could be eroded further. Offering the view that the future of Welsh farming is imperative to Welsh identity.

The report shows the significance of agriculture within the Welsh economy which employs a far higher percentage of workers in Wales, than in any other part of the UK and worth £1.7 billion to Wales’ economy. Further, the agricultural sector in Wales is characterised by smaller farm holdings, many of which are family farms who have been farming for generations. Cumulatively this offers the view that Welsh farms are less resilient economically. 

To this point director of NFU Cymru, John Mercer says:

“The burden of decarbonisation mustn’t fall squarely on the shoulders of rural Wales. 

The farming industry recognises that climate change is the defining issue of our time and we fully recognise the role that trees have in mitigating its impacts but planting needs to be done sensitively and alongside our primary function of food production. 

This means incentivising planting for farmers, and offering the right support and advice in planting the right trees in the right environments. What we don’t want to see is the whole farm scale planting on our productive land and a reduction in our ability to produce food.

The carbon trading market is fairly immature at this point and this credit needs to remain in Wales to bolster our economic resilience. While important, carbon offsetting shouldn’t be used as a method of greenwashing by larger companies who aren’t looking at the bigger picture.”

Adequate safeguards needed 

The Welsh Government was the first to declare a climate emergency in 2019, and the need to plant 86 million trees by the end of this decade as part of its plan for its net zero by 2050 goal. While this is a fundamental step in bolstering our climate change resiliency, the Welsh Government must get a handle on whether farmers could be priced out of good-quality farming land if they have to compete with wealthier companies or policies that drive tree planting where funding exceeds levels of support for agricultural land, risking tenancies. To this point, the Welsh Affairs Committee suggests that the Welsh Government create a register of carbon-offset schemes so that any potential issues can be monitored.

Rt Hon Stephen Crabb MP, Chairman of the Welsh Affairs Committee, said:

 “Welsh farming is facing a challenging time in a number of different areas. We heard that a significant amount of farming land is being lost to carbon offset projects which is being sold at such a high price to wealthy companies that farmers, many of whom are already struggling financially, cannot compete with. While offsets could be a useful tool in meeting net zero, there must be adequate safeguards in place to avoid greenwashing by companies relying on offsets to avoid difficult decisions to tackle emissions at source.” 

 The report also expressed concerns that not enough thought has been given to Welsh farmers in relation to the Free Trade Agreement (FTA) negotiations with Australia. As Wales has a far greater reliance on agriculture, subverting the interests and protections on agricultural and food production sectors in order to secure preferential access for the Australian market, for example, could have a detrimental effect. 

John Mercer adds:

“We need to work on our self-sufficiency levels here in Wales, and to support an FTA which doesn’t match our impeccable welfare standards is very short-sighted. We have the highest welfare standards in the world and this deserves recognition.”

Finally, what this suggests is that cumulatively Wales houses a massive potential to harness its rich resources but this mustn't come at the expense of its farming community. While the Welsh Government’s goal remains to develop symbiotic and circular economy approaches within their current and future supply chains - this must come with adequate protection and safeguarding, to ensure future economic resilience within Wales.