Benefits to landowners

New forests which meet the standards set out in Skógarkolefni – Forest Carbon code could provide an alternative to agricultural income, with sales of carbon units either giving:

Additional income upfront to help with the establishment of the forest through the sale of Pending Issuance Units (PIUs). The market price for PIUs is not yet available but a forest could generate several hundred units per hectare over 50 years.

Future income from the sale of Forest Carbon Units (FCUs), once the forest has actually sequestered and stored the carbon from the atmosphere. The value of FCUs is likely to be higher than that for PIUs, but there haven't yet been enough sales of FCUs to provide any price data.

Depending upon how the forest is managed, and provided the project is additional, there's also the potential of future income from timber products from saw logs to wood fuel. Recent research assesses the investment returns from timber and carbon in woodland creation projects.


However, you should always seek professional independent advice on your specific circumstances before making any long-term investment decisions.

Credibility and reassurance

Having your project independently validated and verified to the Forest Carbon Code adds credibility to your project and provides companies wishing to buy carbon units with reassurance about the amount of carbon sequestered in your project.

Social and Environmental Benefits

Forest creation projects are sustainable projects which not only sequester carbon but also provide a range of social and environmental benefits such as:

  • Benefits to wildlife and biodiversity
  • Opportunities for varied recreation
  • Enhance the local landscape or restore degraded landscapes
  • Provide shelter for animals or humans depending on location
  • Provide a source of wood fuel as an alternative to fossil fuels
  • Provide timber which can then also continue to store carbon in long-lasting timber products
  • Protect water and soils