917 acres with a potential carbon offset value of €58,000 per annum
Comprising forestry land of 917 acres (371 hectares), the nationwide spread of 20 holdings has a potential carbon offset value of €58,000 per annum, says Collette Mulroy of DTZ Sherry FitzGerald. The portfolio is being sold by Third Forestry Investment Plan, and offers new owners the opportunity to store 2,900 tonnes of carbon, based on current carbon tax values of €20 per tonne — which gives a carbon credit value of €58,000.
This end of the investment market is growing, says Mulroy; it could save the Government €220m, by reducing its need to buy carbon credits on the international market.
Because of this, timber output from private forestry sources is expected to grow threefold by the end of this decade, according to the Irish Timber Growers Association.
According to DTZ, Ireland is one of the best locations in Europe for the production of soft wood, but has only 11% cover, a low figure compared to other European countries.
Research has demonstrated Ireland’s climate and soil give it a unique advantage.
“It is anticipated that the portfolio will be of interest to investment funds, private individuals and as well as timber producers,” says Fintan Tierney, managing director, DTZ Sherry FitzGerald.
