The John Muir Trust shares new version of a Carbon Emissions Land Tax (CELT) proposal, following initial meetings with Scottish Government officials during the winter of 2023.
Revenue projections show that a Carbon Emissions Land Tax (CELT) could initially raise between £81 million and £163 million a year for rural councils. These revenues would diminish over time as large landowners take action to manage the land to soak up carbon, boost biodiversity and strengthen communities.
In an updated version of our CELT proposal, the Trust suggests that a fixed rate of tax be assigned to different land types according to their potential for carbon sequestration and nature restoration. Landowners then have the opportunity to apply for rebates that reward good land use.
For example, a parcel of land could be eligible for rebates if the landowner protects and restores certain critical habitats like peatlands, riverwoods (riparian woodland) or rainforests. If a landowner is a custodian of a protected area such as a SSSI, they could claim a rebate for maintaining the area in favourable condition.
Using a rebate system, the Scottish Government would be able to encourage management that delivers for the climate, nature, and people. Importantly, legislative mechanisms could also be built into legislation to give CELT greater flexibility in the future. For example, the Scottish Government could have powers to change the rate of rebates or add new rebate conditions as the situation on the ground develops.
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Posted On: 28/03/2024