The 'green lairds'
How carbon and natural capital investors are driving demand for land
Carbon markets are beginning to have impacts across other asset markets, some not with entirely good consequences.
In an earlier article I highlighted how high carbon prices in Europe are beginning to be felt in the price of steel (see Europe's steel industry yet to feel the full force of the carbon market). Now, strong demand for carbon offsets in order to meet net-zero commitments is starting to have an impact on land values - and potentially, the area available for agriculture.
To begin we need to visit Scotland, where carbon credits and government targets are driving a new investment boom. It involves investors purchasing thousands of acres of land with the intention of planting tree plantations, and then harvesting carbon credits.
The investors and businesses operating in these markets are known as ‘green lairds’.