Afforestation with carbon sequestration and land use policy in Northern Ireland

In addition to the recently established political stability there is an equally welcoming factor which is likely to impact positively upon the fortune of forestry sector in the province; that is carbon trading rights under the Kyoto Protocol. The use of new forests as credit towards reducing carbon dioxide emission is an important part of the Kyoto deal and quantities of sequestrated carbon can now be used to offset against emissions elsewhere and in this way they become real benefits like timber values. Therefore, the amount of carbon dioxide removed from the atmosphere by way of afforestation projects should be assessed in economic evaluation of forestry investment proposals. The main purpose of this paper is to carry out a cost-benefit analysis for an afforestation project in Northern Ireland with a view to finding out what difference carbon sequestration will make to the economic rate of return.