Response to the Climate Change Committee: progress reducing emissions – report to Parliament 2021

7. Agriculture and land use, land use change and forestry

7.1 Ensure options for future agriculture and land use support through the proposed Bill to replace the current Common Agricultural Policy in 2023 provide a framework to deliver climate mitigation and adaptation as well as wider environmental objectives. This should cover support for measures to reduce on-farm emissions and strategic land use change away from traditional agriculture to reduce and sequester carbon.

Timing: 2023

Primary responsibility: Scottish Government

Scottish Government response: accept

Our Vision for Agriculture was published on 2 March 2022 and outlines our aim to transform how we support farming and food production in Scotland to become a global leader in sustainable and regenerative agriculture. We will support farmers and land managers who produce more of our own food needs and manage our land sustainably with nature and for the climate. A new Scottish Agriculture Bill will be brought forward in 2023 to replace the Common Agricultural Policy (CAP) and deliver on the vision, with a consultation in 2022 to inform its introduction.

7.2 Plans for Environmental Conditionality should clearly set out milestones and timelines for full implementation that align with the emissions path set out.

Timing: 2022/23

Primary responsibility: Scottish Government

Scottish Government response: partially accept

We will support the essential role of farmers and crofters to contribute towards national climate change targets, recognising the vital role they play in managing Scotland's landscapes for the future as we transition to net zero. By 2025 we will shift half of all funding for farming and crofting from unconditional to conditional support, with targeted outcomes for biodiversity gain and a drive towards low carbon approaches which improve resilience, efficiency and profitability. The first element of the £51m National Test Programme 'Preparing for Sustainable Farming' was launched on 29 April 2022 and will build on a range of support, including grants, advice, and research, to support our farmers and crofters to learn how their work impacts on climate and nature, and will create a robust understanding of how new conditions or activities could be applied to future support, and ensure delivery of environmental outcomes in a way that supports sustainable businesses to allow it to be rolled out following the introduction of the Agriculture Bill in 2023, and subsequent secondary legislation.

7.3 Legislate and strengthen the regulatory baseline to promote take up of low-cost, low-regret options. This should include:

• Deliver the commitment under National Planning Framework 4 not to support applications for planning permission for new commercial peat extraction for horticultural use. Strengthen controls to restrict development on peat and support its restoration.

Timing: Now & ongoing

Primary responsibility: Scottish Government

Scottish Government response: partially accept

The draft NPF4 is clear that we want to protect carbon rich soils and preserve and restore peat. It also sets out to ensure that development proposals for new commercial peat extraction, including extensions to existing sites, should not be supported except in limited circumstances. The draft policy sets out that development proposals on peatland, carbon rich soils and priority peatland habitat should not be supported unless essential in a limited range of circumstances. Such proposals will then be subject to further assessment. Consultation on the draft NPF4 closed on the 31 March. We are considering all responses to the consultation, including those from the CCC and will lay a finalised NPF4 for approval by the Scottish Parliament before it is adopted by Ministers. Following its adoption, NPF4 will form part of the statutory development plan, the primary basis for decisions made through Scotland's planning system.

We are committed to significantly increasing the rate of peatland restoration in Scotland to meet the target set out in the Climate Change Plan update to restore 250,000 hectares of degraded peatland by 2030. In 2022-23, our peatland restoration budget has increased by around 8% to a record £23.7 million as part of our spending package of £250 million over ten years. This will enable multi-year, large scale projects to be planned and delivered, boosting restoration rates and increasing the confidence of contractors to invest in machinery, jobs, training and skills. We are also working with our delivery partners and stakeholders to establish a new peatland programme that will take a holistic view of how we look after our peatlands going forward. It will catalyse action and address barriers to better protecting, restoring and managing Scottish peatlands.

• Retain designations of Nitrate Vulnerable Zones and extend these where needed to protect water quality.

Timing: 2022

Primary responsibility: Scottish Government

Scottish Government response: accept

The Protection of Water Against Agricultural Nitrate Pollution (Scotland) Regulations 1996 aims to protect the water environment against pollution caused by nitrates from agricultural sources. Regulation 3 places a duty to designate nitrate vulnerable zones, to review them at least every 4 years and to revise or add zones as necessary.

• Enact in law a 'Nitrogen Balance Sheet'.

Timing: 2022

Primary responsibility: Scottish Government

Scottish Government response: accept

Following agreement by the Scottish Parliament, the Climate Change (Nitrogen Balance Sheet) (Scotland) Regulations 2022 came into force on 11 March 2022. The baseline version of the Scottish Nitrogen Balance Sheet (SNBS) dataset was published at the same time as the Regulations coming into force. The SNBS will now be reviewed and updated on an annual basis from 2023 onwards – helping us keep track of progress in improving the use of nitrogen. After each such round of review, an updated version of the Balance Sheet dataset will be published, with an accompanying report setting out assessments of progress towards relevant on-the-ground actions to improve the use of nitrogen and identification of opportunities for further improvements in future.

• State clear timeframes to end domestic peat extraction and the phasing out of its use in horticulture and as a fuel, and end burning management of peatlands.

Timing: 2022

Primary responsibility: Scottish Government

Scottish Government response: partially accept

Our plans for preventing future expansion of peat extraction through NPF4 are described earlier. We currently have no plans to directly ban commercial extraction at currently licenced sites. However, in our 2021-22 PfG, we pledged to take forward work to develop and consult on a ban on the sale of peat related gardening products as part of our wider commitment to phase out the use of peat in horticulture, and this will indirectly impact levels of extraction. In the coming months, we will launch a consultation on retail peat (for horticulture and other uses, such as fuel) which will inform our direction and speed of travel, setting a date to ban the sale of peat related gardening products that is both realistic and ambitious. However, the UK Internal Market (UKIM) Act undermines Scotland's ability to implement effective policy to ban the sale of peat related gardening products. As it stands, peat extracted in, or imported into, other parts of the UK and legally sold there could legally be sold in Scotland, regardless of any ban. Hence, we are working closely with UKG and devolved administrations to resolve this issue, ideally through achieving exemption from the UKIM Act.

We understand the urgent need for tighter regulation and oversight of muirburn, and that's why we set out our commitment to deliver this as part of our 2021-22 Programme for Government. We will also introduce a ban on burning of muirburn on peatland, expect in very limited cases as part of an approved habitat restoration programme, and we will review the current definition of peatland, taking expert advice on whether it should be revised and a stricter definition imposed. We will bring forward the legislation in the current parliamentary term alongside the other recommendations of the Werritty review

7.4 Raise ambition and introduce measures to deliver increased tree planting in the next decade, building towards at least 18,000 hectares of trees planted per year per year by 2024-25. Identify and address financial and non-financial barriers to implementation.

Timing: Now & ongoing

Primary responsibility: Scottish Government

Scottish Government response: accept

This recommendation is in line with objectives set out in the Scotland Climate Change Plan. One measure is that Scotland's planning legislation and draft NPF4 strengthens the role of the planning system in supporting the delivery of Scottish Government's forestry commitments, and the contribution the sector and the country's expanding woodland area plays in achieving net zero, reversing the decline in biodiversity and supporting a growing economy. Consultation on the draft NPF4 closed 31 March. We are considering all responses to the consultation, including those from the CCC and will lay a finalised NPF4 for approval by the Scottish Parliament before it is adopted by Ministers.

7.5 Raise ambition and introduce measures to restore peatlands in the next decade, building towards at least 20,000 hectares of peatland restored per year by 2024-25. Identify and address financial and non-financial barriers to implementation.

Timing: Now & ongoing

Primary responsibility: Scottish Government

Scottish Government response: accept

Current forecasts from our peatland restoration delivery partners are to collectively pass 20,000 ha restored annually by 2024-25 and to increase further thereafter. New peatland restoration targets will emerge from the process of preparing the next full Climate Change Plan which has recently commenced.

In 2021 we commissioned NatureScot to prepare a report making recommendations for addressing the financial and non-financial barriers to upscaling peatland restoration across Scotland on two tracks - accelerating and transforming - towards any new targets that may emerge. NatureScot presented its report to the Scottish Government before Christmas 2021 and we are currently building on its findings to prepare a twin-track action plan for consideration by Ministers which will subsequently inform the development of peatland restoration policies and proposals in the next Climate Change Plan.

7.6 Set out a pathway and implement policies to address on-farm emissions (e.g. through the Sustainable Agriculture Capital Grant Scheme and Agricultural Transformation Programme). Ensure there is a robust monitoring and verification system in place to track progress on:

• Delivering a high take-up of low-carbon farming practices covering soils, livestock and manure management.

Timing: 2022/23

• Decarbonising energy use in farm buildings and machinery.

Timing: 2022/23

• Measures to encourage on-farm sequestration e.g. through agro-forestry and hedges, which deliver wider benefits such as improved biodiversity.

Timing: 2022/23

• Planting biomass crops where appropriate.

Timing: 2022/23

• Fully implement regional land use partnerships to identify where resources have most positive climate impact.

Timing: 2022/23

Primary responsibility: Scottish Government

Scottish Government response: partially accept

• Action is being taken by the SG on these issues, policy development for the new Climate Change Plan will include an assessment of emissions savings associated with each policy.
• Track 1 of the National Test Programme (NTP) is offering support to farmers and crofters to undertake carbon audits and soil testing to support them to improve their climate performance and to improve nutrient management. Track 2 will create a robust understanding of how new conditions or activities could be applied to future support, and ensure delivery of environmental outcomes in a way that supports sustainable businesses.
• On livestock management, the NTP will be providing funding to support information gathering for livestock through the Livestock Digital Data project. It will see ScotEID work with a number of beef farmers in different geographic areas, to demonstrate the impact of agri-tech and specialist advice to inform future decisions on how advisory services and capital funding can support Scottish beef farming businesses to improve productivity. In relation to manure management, the 2022 Sustainable Agriculture Capital Grant Scheme (SACGS) will focus support (£5m) on low emission slurry spreading equipment and slurry store covers that are proven to reduce harmful ammonia emissions and reduce adverse impacts on water quality resulting from the storage and spreading of livestock slurry and digestate. This is in addition to support for slurry storage that is offered through AECS in priority catchment areas.

We partially accept the recommendation on decarbonising energy use in farm buildings and machinery as work is underway to consider policies for decarbonisation of energy use in farm buildings and machinery in the development of the next Climate Change Plan.

We accept the recommendation to support biomass crops where appropriate.

The recommendation on Regional Land Use Partnerships (RLUPs) is partially accepted.

• RLUPs are being piloted across five areas of Scotland. These pilots aim to facilitate collaboration between local and national government, communities, land owners, land managers and wider stakeholders.
• They will work at a regional level to enable natural capital-led consideration of how to maximise the contribution that our land can make to addressing the climate and environmental crises, with the aim to produce their Regional Land Use Frameworks by the end of 2023. It is therefore too early to assess the pilots, but, their on-going work will inform Ministerial decision-making on the future of RLUPs.
• Should these pilots prove successful, we have committed in the 2021 PfG and Bute House Agreement to developing plans for a second phase from 2023.

We partially accept the recommendation on agroforestry and hedges.

• Support is currently available for planting or replanting of hedges under the Agri-Environment Climate Scheme and agroforestry to support creation of small scale woodlands on agricultural pasture or forage land. We will continue to develop agroforestry, building on the work of Integrating Trees on Farms Network.
• We will continue to develop the evidence base, a number of studies suggest significant carbon removal, soil health and biodiversity potential in agroforestry and hedge planting. Work by Climatexchange provides the potential carbon sequestration of agroforestry which is closely linked to the quality of the land. The ranges for these values vary from -6.2 to 45.6 t C/ha over forty years for the lowest quality rough grazing to 12.8 to 77.5 t C/ha over forty years for arable land.

7.7 Implement mechanisms for private and public financing of agricultural and land-based solutions to deliver the level of ambition set out:

• Deliver current commitments of support for levering of private finance to incentivise woodland creation and diversification of the forest estate in Scotland.

Timing: Now & ongoing

• Set out how public and private funding for peatland restoration will be aligned, how opportunities to attract increased private finance for peatland restoration will be developed, and support use of the Peatland Code as the verifiable standard.

Timing: 2022

• Define financial mechanisms to incentivise land-based approaches, such as low-carbon farm practices, agroforestry, hedgerows and energy crops, to support the scale of transition required.

Timing: 2022

• Current and future incentives for mitigation must also consider the wider co-benefits for environmental goals such as climate change adaptation and biodiversity.

Timing: 2022

Primary responsibility: Scottish Government

• We accept the recommendation to Deliver current commitments of support for levering of private finance to incentivise woodland creation and diversification of the forest estate in Scotland
• We are on track to meet the target in the 2020 Climate Change Plan Update to increase the size of the woodland carbon market by 50% by 2025 through the Woodland Carbon Code (WCC). The WCC leverages private finance to enable additional woodland creation towards targets to reduce net GHG emissions.
• Scotland is creating a range of different types and sizes of woodland. In the last two years over 22,000 hectares of new woodland has been created with 40% of that being new native woodland. Over the last four years Scottish Government has met its annual target for creating new native woodland set out under the Scottish Biodiversity Strategy.
• Under the Bute House Agreement the Scottish Government has committed to increase the annual native woodland creation target to 4,000 hectares and set evidence-based targets for both native woodlands and natural regeneration as part of the new Biodiversity Strategy.
• Scottish Government has also committed to protect and expand Scotland's rainforest over the life of this Parliament, as part of the £500 million investment in our natural economy

We accept the recommendation on public and private funding for peatland restoration:

• We are committed to increasing the flow of private finance into peatland restoration to support our ambitious targets. This goal is nested within our work to develop a values-led, high-integrity market to encourage responsible private investment in natural capital in Scotland.
• The Peatland Code is the main existing mechanism to attract private investment into peatland restoration. It provides assurance that the carbon benefits being sold are real, quantifiable, additional and permanent.
• By using the Peatland Code, a landowner can receive private financial investment through the sale of carbon units which can be used flexibly to help with capital costs or long-term management costs.
• The Peatland Code allows the blending of public (max 85% of total costs) and private (min 15% of total costs) finance for the costs of restoration and the ongoing management.
• The money from the sale of carbon units can be used alongside public funding streams like agri-environment grants. Projects under the Peatland Code must run for a minimum of 30 years, to ensure the benefits of the restoration works are realised, maintained, and protected through sustainable management.
• There is a significant appetite in the hundreds of £millions from private investors to fund peatland restoration in return for carbon credits but there are barriers to be overcome to scale up restoration in a sustainable way in respect of the just transition principles.
• On our behalf, NatureScot (Peatland Action) is working with and supporting IUCN and others to develop and promote the Peatland Code in Scotland , to make it more attractive to landowners and private investors as the benefits of the Code are not well known or clear enough to landowners yet.
• NatureScot examined options to increase private investment in peatland restoration in the report to Scottish Government referred at recommendation 52 which will informing further actions to overcome barriers.

We partially accept the recommendation on low-carbon farming practices

• Action is being taken by the SG on these issues through grants, research and advice and support to farmers through the Farm Advisory Service and Farming for a Better Climate.
• Track 1 of the National Test Programme (NTP) is offering support to farmers and crofters to undertake carbon audits and soil testing to support them to improve their climate performance and to improve nutrient management. Track 2 will create a robust understanding of how new conditions or activities could be applied to future support, and ensure delivery of environmental outcomes in a way that supports sustainable businesses.
• The Agri-Environment Climate Scheme (AECS) reopened to applications in January which will underpin the ambition of doubling the amount of land under organic management as set out in the Programme for Government 2021-22 alongside a suite of other measures aimed at promoting low carbon farming and protecting the environment.
• The 2022 Sustainable Agriculture Capital Grant Scheme (SACGS) will focus support (£5m) on low emission slurry spreading equipment and slurry store covers that are proven to reduce harmful ammonia emissions and reduce adverse impacts on water quality resulting from the storage and spreading of livestock slurry and digestate. This is in addition to support for slurry storage that is offered through AECS in priority catchment areas.
• Support is currently available for planting or replanting of hedges under the Agri-Environment Climate Scheme and agroforestry to support creation of small scale woodlands on agricultural pasture or forage land. We will continue to develop agroforestry, building on the work of Integrating Trees on Farms Network.
• Agriculture, forestry and other land uses (AFOLU) accounts for about 40% of Scotland's greenhouse gas inventory. For land use, it is not possible to disentangle mitigation from adaptation and state of nature. The transition to net zero will require transformative change in the way we use the land, to ensure land use is a net sink overall and has the capacity to remove unavoidable emissions from other sectors of the inventory. This must be done so as to simultaneously meet SG emission reduction targets and the lower end of the Paris target range (1.5C) whilst building diversity and resilience for a 3C world (post COP-26) and becoming nature positive (SBS targets). Farming alone covers 70% of Scotland. Meeting the 2030 emission target will require 10% reductions a year from now on, compared to an average of 2-3% a year over the last 30 years. Early action is key to ensure that enhancing nature in all uses of the land and sea maximises its potential to remove emissions and has the diversity and resilience to buffer change.

7.8 Identify and address the non-financial barriers that prevent changes to land use and management, including.

• Maintain and enhance programmes and initiatives for advice and knowledge exchange for Scotland's farmers, crofters and land managers.

Timing: Now & ongoing

• Support tenant farmers in making the long-term commitment and investment required to reduce emissions and sequester carbon on the land they manage.

Timing: 2022 onwards

• Continue to raise awareness and promote the development of skills in sustainable agriculture, alongside those needed at scale for restoration of semi-natural habitats such as peatlands and woodlands.

Timing: 2022

• Address tax treatment of woodlands where they are acting as a barrier to change.

Timing: 2022

• Explore the need to reform legislation to support woodland creation on agricultural holdings and publish recommendations.

Timing: 2022

Primary responsibility: Joint with UK Government

Scottish Government response: partially accept

• Through the Farm Advisory Service the Scottish Government will provide a first-rate advisory provision for farmers, land managers and crofters, providing high quality advice that will help them to ensure their businesses are ready to meet the challenges of the future.
• We support the Farming for a Better Climate programme, which focuses on sharing good practice through peer-peer learning, and testing new methods though pilots.
• Tax rules governing woodlands are reserved to UK Government.
• We support the Scottish Land Commission's work with the Tenants and Trees Group, that will lead further co-ordination and discussions involving stakeholders on this topic via the Tenant Farming Advisory Forum. We believe it right that this work should be allowed to proceed to the point where it identifies any recommendations, including any future changes to primary legislation.
• Through the Climate Change Mitigation and Adaptation Practical Training Fund, we are providing farmers, crofters, others involved in managing the land or people who want to get training with the opportunity to be fully funded to gain the right skills to help them take positive action to deliver sustainable agriculture .
• We are moving towards establishing peatland restoration pilots on Scottish Ministers' crofting estate better to understand the barriers and opportunities for interested crofting communities to engage.

7.9 Set out plans to deliver Scotland's guidelines on healthy eating, to encourage a healthy, balanced and sustainable diet. This should include measures to encourage a reduction in the consumption of meat and dairy products e.g. through better information and labelling, the public sector taking the lead and development of an evidence-based strategy on diets.

Timing: 2022

Primary responsibility: Scottish Government

Scottish Government response: partially accept

• Food Standards Scotland have published an online dietary guidance resource, EatWellYourWay.scot, which delivers evidence-based dietary advice, to help people in Scotland make healthier food and drink choices, one step at a time.
• The advice in Eat Well, Your Way is based on the Eatwell Guide. Research from The Carbon Trust has shown that if people consumed a diet more similar to the Eatwell Guide this would be a healthier and more sustainable way of eating. These effects come from a reduction in dairy, meat and discretionary foods, plus an increase in some starchy foods, fish and fruit & vegetables. Eat Well, Your Way currently includes some messaging targeted at making healthier, sustainable choices and the resource will continue to be developed in this way.
• We are reviewing our public sector food procurement guidance document Catering for Change. This updated guidance will help Scottish public sector procurement staff to make sustainable choices when procuring food and catering services.
• We have a proud record of supporting and investing in farming and food production and are wholly committed to continuing to support active farming in the future. We believe that Scotland should be a global leader in sustainable and regenerative agriculture.
• Our positive vision for Scottish food production is one in which our world-class producers, including livestock farmers and red meat producers, thrive.
• We recognise the need for consumers to have better information on the sustainability of the food they consume, and the benefit to Scottish food and drink producers in being able to demonstrate sustainable production. This is why we are undertaking scoping work to develop the Sustainably Scottish marketing scheme, which would be available to all Scottish producers who are able to meet stringent criteria on provenance and sustainable production.
• We are committed to transforming Scottish agriculture, including the meat and dairy sectors, to meet our ambitious climate targets. Continued sustainable food production is central to our policy approach and Scotland is well placed for livestock farming.

7.10 Set out a target to reduce food waste and a comprehensive plan to deliver it. This should include reporting of food waste by businesses across the food supply chain, public sector and households.

Timing: 2022

Primary responsibility: Scottish Government

Scottish Government response: partially accept

The Food Waste Reduction Action Plan (FWRAP), published in 2019, set a target for a 33% reduction in food waste by 2025. We are reviewing this plan in 2022 to both assess our progress and identify what further actions we need to take in pursuit of the target. A key area of focus for 2022 onwards will be the development and implementation of a citizen behaviour change strategy for food waste reduction to better encourage food waste reduction in households. We are not proposing mandatory reporting of food waste in the household at this time, however an updated estimate of household food waste, based on bespoke waste composition analysis, will be published as part of the 2022 FWRAP review.

When we consulted on legislative proposals for mandatory public reporting of food waste and surplus for businesses in 2019, the majority of respondents were in favour of the proposal and, on that basis, we are continuing to explore.

The Scottish Government's 2021 Programme for Government outlines our commitment to introducing a Circular Economy Bill this Parliamentary session. The Bill will put in place legislative measures to support and encourage reduction of consumption, reuse, repair and recycling so as to reduce waste. As part of the work towards that Bill, we will be consulting on a number of proposals for legislation in May. Alongside a consultation for a circular economy bill, we will publish our waste route map consultation in May, which will set out further proposals to facilitate Scotland's transition to a zero waste and circular economy, and accelerate progress to meet our waste, recycling and emissions targets.