Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
Link to this: Individually | In context | Oireachtas source

281. To ask the Minister for Agriculture, Food and the Marine if he will provide details of how he will approve grants for any State-backed forestry investment fund, given the clear judgment of the European Court in 2003 that legal persons owned and controlled by the State are eligible for aid to cover the costs of afforestation and maintenance of forests in the same way as any other natural or legal person, but that they are not, however, eligible for aid to compensate for a loss of income from agriculture; and if he will make a statement on the matter. [9319/23]

Charlie McConalogue (Donegal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Historically afforestation premia were provided for under European Council regulation 2080/92 and were available to both farmers and non-farmers. Lower maximum rates applied in the case of non-farmers. Within this regulation, non-farmers were defined as any other private, natural or legal person. I would draw your attention to the landmark 2003 ECJ judgement for case No. 339-00 where it was held that, “as a public undertaking Coillte Teoranta was not eligible to receive aid to compensate for a loss of income arising from forestation”. This has resulted in the fact that Coillte to date, has not been eligible to receive aid to compensate for a loss of income arising from afforestation from my Department.

Ireland’s current afforestation premia are offered under the guidelines for State aid in the agricultural and forestry sectors and in rural areas. These guidelines were revised last year and the updated guidelines have now come into effect from the 1st January 2023. The revised guidelines, under Section 2.1.1 (Aid for afforestation and creation of woodland) and Section 2.3 (Aid for forest-environment and climate services and forest conservation) now include the possibility of public landowners to avail as beneficiaries without restrictions. My Department is currently seeking legal advice on the matter and due consideration will then be given to its application under the next Forestry Programme.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
Link to this: Individually | In context | Oireachtas source

282. To ask the Minister for Agriculture, Food and the Marine if he will provide the cost-benefit analysis for Irish forestry provided as part of Ireland’s current application for State aid; if he can assure this Deputy that the criticism of the Comptroller and Auditor General in 2018 that the previous cost benefit analysis for State Aid 2014 - 2021 failed to account for a number of factors, including the tax free status treatment of forestry, the cost of agricultural supports, and the displacement of other activities, have been fully and entirely addressed in the new cost-benefit analysis (details supplied); and if he will make a statement on the matter. [9320/23]

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
Link to this: Individually | In context | Oireachtas source

292. To ask the Minister for Agriculture, Food and the Marine the reason the Government did not conduct an up-to-date cost benefit analysis based on the social, environmental and economic pillars of sustainable forest management of the new Forestry Strategy/Programme that included water and soil damage to decide public good value for money, given the huge expenditure of €1.3 billion announced for the next five years for forestry for public good value for money (details supplied); and if he will make a statement on the matter. [9330/23]

Charlie McConalogue (Donegal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 282 and 292 together.

The Deputy will be aware that Forestry in Ireland has undergone several significant changes in focus in recent decades and that the Shared National Vision for Forests and Trees launched by my Department early last year is built on the principle of the right trees in the right places for the right reasons with the right management. The Forest Strategy anticipates that by 2050 Ireland's forests will be a cornerstone in an inclusive and sustainable rural economy while assisting in achieving climate and biodiversity goals as well as being a major contributor to people’s health and well-being. The Forestry Programme 2023-2027 is an important first element in implementing this vision and strategy after extensive public consultation and stakeholder engagement.

It was within this framework that my Department commissioned an economic analysis which included an examination of the Internal Rate of Return (IRR) and Net present Value (NPV) for farmers and non-farmers under the proposed programme in addition to a cost benefit analysis of the Afforestation and Roads measures of the proposed new programme.

CBA is an analytical tool used in the appraisal of major capital projects, providing decision makers with important information and insights in considering investment options and the commissioned economic analysis was considered in securing the €1.3 billion funding for our ambitious forestry programme. The CBA will also be submitted to the EU Commission as part of Ireland's formal state aid application in respect of the new Forestry Programme.

The Deputy will appreciate that CBA is not all-embracing as not all costs or benefits can be quantified or monetised and economic analysis of forestry presents particular challenges, not least due to the very long-term nature of the investment. This type of economic analysis of forestry has, however, advanced considerably in the last two decades.

• Water quality and regulation
• Recreation and leisure
• Landscape
• Biodiversity
• Cultural heritage
• Reduced agricultural emissions by displacement
• Employment.

The analysis had regard to significant non-monetary elements including positive and negative externalities and a comparison of proposed forestry measures with the opportunity costs of other farm enterprise types including displacement of agricultural activity.

The protection of water forms a key component of my Departments assessment of all applications for forestry licences and grants. My Department takes a preventative approach and have been very mindful of this in designing the new forest strategy and programme for 2023-2027. Likewise in designing the new programme my Department has ensured that peat soils and land formally designated as unenclosed will no longer be eligible for forestry. The general thrust of the new programme is towards planting on mineral soils.

The overall objective of the new Forestry Programme 2023-2027 is to provide support for Sustainable Forest Management with the potential to deliver ecosystem services and environmental and climate benefits with the underpinning principle for the intervention being “the right trees, in the right places, for the right reasons and with the right management” in order to ensure effective targeting of SFM measure to deliver biodiversity and climate action benefits.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
Link to this: Individually | In context | Oireachtas source

283. To ask the Minister for Agriculture, Food and the Marine given the advances in scientific knowledge about the emissions caused by forestry activities on organic soils summarised by the Environmental Protection Agency in July 2022, if the Government has revised the value of forestry sequestration from that used in the State aid application 2014 to 2021, when 39% of the benefit was calculated to come from carbon sequestration based on an assumed value of €39 per tonne of carbon dioxide; and if he will make a statement on the matter. [9321/23]

Charlie McConalogue (Donegal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

A significant amount of organic soils in Ireland were afforested during the second half of the 20^thcentury. These areas were initially planted to create rural employment at a time when the importance of other functions, such as carbon storage, was not well understood.

When assessing the benefits of growing forests on organic soils, it is very important to consider the losses of carbon from organic soils as the removals from the growing forests may not offset the emissions from the drained organic soil.

A 2005 study of forests on blanket peats found that these areas emitted 0.59 tonnes of carbon per hectare per year. More recent research from 2021 funded by my Department has shown that forested blanket peatlands are emitting 1.68 tonnes of carbon per hectare. This new research has shown that emissions from forested peatlands are three times higher than previously estimated.

The significantly increased new emission factor for organic soils has been incorporated into the national inventory reporting to the United Nations Framework Convention on Climate Change.

The Department is currently finalising a new Forest Strategy 2023-2030 and associated implementation plan. As part of this process a cost-benefit analysis was undertaken which included an assessment of the benefits in terms of carbon removals by the proposed new forests.

Afforestation is now predominantly occurring on mineral soil types and the level of afforestation on organic soils is continuing to decrease. This trend is expected to increase in the next Forestry Programme 2023-2027.

When assessing the annual carbon sequestration rate of the proposed new forests during the cost-benefit analysis it is was assumed that all afforestation was on mineral soil. Therefore, the new emission factor for organic soils were not required to be incorporated into the analysis.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
Link to this: Individually | In context | Oireachtas source

284. To ask the Minister for Agriculture, Food and the Marine if he, as a golden shareholder, will call an EGM to amend the principal objects of the State forestry board of Coillte Teoranta from its sole definition as ‘commercial’ to include ‘environmental’ and ‘social’ factors, as is required under the definition of ‘sustainable development’, to which Ireland is committed; if he will indicate whether it is his intention to change Coillte’s mandate along these lines; and if he will make a statement on the matter. [9322/23]

Charlie McConalogue (Donegal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The Code of Practice for the Governance of State Bodies requires that Government Departments should ensure that they have written oversight agreements with State bodies under their aegis which clearly define the terms of the State body’s relationship with the relevant Minister/parent Department.

For commercial State bodies the oversight agreement between the relevant Minister/parent Department and the State body is the Shareholder Expectation Letter.

A Shareholder letter of Expectation issued to Coillte on 2nd June 2022. It is published on my Department's website and available at the following link gov.ie - Forestry policy and strategy (www.gov.ie). This letter clearly outlines my Department's requirements from Coillte in relation to environmental and social policies.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
Link to this: Individually | In context | Oireachtas source

285. To ask the Minister for Agriculture, Food and the Marine if he will instruct the State forestry board of Coillte Teoranta to use the same metrics as the EPA and LULUCF carbon accounting and stop its practice of including carbon embedded in manufactured wood products and saved through product substitution, which is misleading the public as to their forestry’s contribution to Ireland’s carbon budget; and if he will make a statement on the matter. [9323/23]

Charlie McConalogue (Donegal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Forests and wood products provide significant climate change mitigation benefits, including the carbon storage in harvested wood products and substitution benefits associated with the use of wood instead of more fossil fuel intensive materials such as concrete and steel.

In August 2022, Coillte published Forests for Climate - Report on Carbon Modelling of the Coillte Estate. This report details an assessment undertaken to determine the current Greenhouse Gas (GHG) profile of Coillte’s existing managed forest estate and to identify and assess the GHG mitigation potential of silvicultural management options based on a number of assumptions set out in the report.

The report clearly sets out the system boundaries of the modelling work that was undertaken. The product substitution category is based on the allocation of harvested timber to harvested wood products including energy and the potential emissions avoided through the displacement of fossil fuel intensive materials.

The EPA and LULUCF reporting process includes harvested wood products but does not include the emission reductions associated with the displacement of fossil fuel intensive materials.

The modelling work undertaken by Coillte is not bound by the EPA and LULUCF reporting requirements. This approach is valid and provides another approach to assessing the contribution that forests and wood products provide in mitigating climate change. Importantly, the approach used by Coillte ensures that the displacement is additional mitigation and therefor valid for inclusion.