“Natural capital” – Abrdn is shifting its approach while still trying to profit from Far Ralia

December 10, 2024 Nick Kempe 3 comments
Photo used in Scotsman article, credit Abrdn. Visible in the shadow behind the new bothy is the track cut through the peat heading towards the hill behind, Glas Meall Mor, by the previous owners. Note the curved drainage ditches through the bog to the left

Two days ago there was an article in the Scotsman (see here) about the “mass tree planting” at Far Ralia in which Fraser Green, head of Natural Capital Investment at Abrdn, admitted mistakes had been made:

“We have learned a lot and there are things that we have done with Far Ralia that we wouldn’t do again, including basic things around designing woodlands and certain processes.”

That is a very welcome admission.  It something that neither the Scottish Government nor Scottish Forestry nor the Cairngorms National Park Authority has ever admitted to about the disastrous native woodland carbon offsetting schemes in the National Park, including Far Ralia, BrewDog’s Lost Forest (see here) and Muckrach (see here).

Unfortunately, Fraser Green  did not explain what Abrdn thought those mistakes were.  Had he done so, it might have forced the Scottish Government to reform the Forestry Grants Scheme.

Perhaps Abrdn will do so in future?  However at present Abrdn is trying to wind up their Property Income Trust and sell Far Ralia for £12m, £4.5m more than what they purchased it for three years ago (see here). It is not in their interests to identify the mistakes which should – if carbon markets were rational and not about financial speculation – affect the value of the land.  Hence why Mr Green was quoted in the Scotsman as saying:

“the rise in value for Far Ralia was due to the first phase of tree planting being finished, which came at a “very hefty capital cost”. He said: “That is obviously capital that a buyer doesn’t have to spend themselves and if they were acquiring Far Ralia as we did, they would be anticipating to do so”.

Fraser Green also claimed “We have put our money where our mouth is” without saying how much the Abrdn Property Income Trust spent on the estate in the last three years.

One can dispute whether the capital cost was “hefty” – its small beer in city terms – but it is an indisputable fact that the public was originally paying for most of it,  £2,559,303.91 to be precise, through the Forestry Grants Scheme (see here) with additional peatland action funds also apparently promised.  While Abrdn did initially fund some things which were ineligible for grant support, like the “bothy” in the photo above, this appears to have been relatively little.

As a result of the botched tree planting by Akre (see here), which resulted in trees from the wrong seed zones being planted and the importation of sycame, someone will have had to pay for the remedial works.  If Abrdn got their contract right, it should have been Akre trees.  However, if they have been forced to put their hands in their pockets, they should not be expecting to recoup that money through the inflated sale price.  It was ultimately their mistake and they should pay for it.

As an aside, while the Scotsman article states the remedial works ordered are now complete neither  Scottish Forestry nor any prospective buyer will be able to tell whether the sycamore have been removed until the spring when they come into leaf.

Any investment whether by Scottish Forestry or Abrdn, however, needs to be set against the longer-term benefits or in this case the damage that has been caused. The greatest single mistake was planting on peat which, by Abrdn’s own calculations, will result in carbon being emitted to the atmosphere for the next 15 years:

At best carbon credits won’t be claimable at Far Ralia for 15 years due to the carbon emissions from the planting – that minimum will have gone up due to the replacement planting

That calculation, as I explained (see here), now appears a serious underestimate, with Muckrach calculating net emissions would continue for 25 years and scientific research by Friggens et al (see here) suggesting there might not be any net carbon benefit even after 40 years.  The irony here is that while the Scottish Government is spending £250m over 10 years on restoring peatbogs, on the grounds that theyse are one of Scotland’s largest source of carbon emissions, it has been destroying peat to plant trees by hinge mounding. If Abrdn were to admit that it would sink much of the speculative woodland carbon code market.

The alleged benefits of tree planting for nature are also far from clear as I have shown in my critique of Abrdn’s use of work done by the Natural History Museum for Far Ralia (see here).  In this the NHM claimed Biodiversity Intactness at Far Ralia would improve to 94% as a result of the tree planting (apparently in an attempt to curry favour and get money from city interests (see here).  That unevidenced research is still being used by Abrdn to try and help justify their asking price of £12m.

Now Ron Summers, former scientist at the RSPB’s Abernethy reserve, and Des Thompson, former Principal Adviser on Biodiversity and Science at NatureScot, have raised further questions about the impact that the holes created by hinge mounding in an article in Scottish Birds.  They have used Far Ralia as an example of their concerns which are about the chicks of ground nesting birds falling into the holes :

The article fully acknowledges discussions with Fraser Green at Abrdn.  Note too the polluting plastic tree tubes.  Credit Scottish Birds

Ron and Des are far too good scientists to make assertions which are not backed by evidence and, as their article points out, there is no recent research on this but for most people the risks of chicks falling into holes created by hinge mounding should be obvious.   Their article does, however, suggest a precautionary approach and makes the case for screefing and slotting instead of hinge mounding, again using Far Ralia as an example:

 

Unfortunately, whatever you think of tree planting to “restore” nature, screefing and slotting was only used for a very small proportion of the trees at Far Ralia.  Had it been used at Far Ralia it might not just have saved a few birds but it would have also reduced carbon emissions considerably.  If a powerful company like Abrdn to admit the hinge mounding was a mistake, on both carbon and wildlife grounds,  it would be very difficult for Scottish Forestry to continue paying for it.

The one mistake that is admitted to by Abrdn in the Scotsman article is they could have got consultation with the local community better: .

“And there is an element of saying ‘we did, or we felt like we did and we are sorry that you don’t feel like you were consulted’. But we feel like we did go through a consultation process.

“There are lessons to be learned there in that community engagement is something that needs to be ongoing and we have tried to do that. Elements have been successful and others less so. We can improve the scale of it and the depth of it next time.”

What they don’t say is whether more extensive community consultation would have changed ANYTHING they did on the ground!  I am afraid when it comes to the interests of shareholders v local communities there is no competition!

Meantime the good news is that after their experience at Far Ralia:

“abrdn will now shift its focus to working in conjunction with existing landowners to create natural capital projects rather than buying land”.

That is an important recognition that “natural capital projects” should be about improving how the land is managed, not land speculation.  The shame is that Abrdn, driven by APIT’s shareholders, is itself trying to profit from its short ownership of Far Ralia and all the mistakes it has made through chasing Scottish Forestry grant funding. Whether Abrdn staff can find a new way to make carbon (and nature) markets work, while also satisfying their voracious shareholders, remains to be seen but Far Ralia could actually be a good place to start.  Why not offer the land to the Cairngorms National Park Authority at a reduced price?  They could then either start acting like a National Park and restore all the damage they have allowed to happen or they could start working with Abrdn, with Abrdn bringing the finance, to show how a “natural capital” project could work, including how to involve local communities.

3 Comments on ““Natural capital” – Abrdn is shifting its approach while still trying to profit from Far Ralia

  1. The fundamental problem which underlies all this, and which leads on to all the negative consequences, is the planting density that is being sought, either 1600 or 2500 trees per ha. When planting at this density, it doesn’t matter if the tree species are native or not, this number of trees inevitably gives you a plantation. At this density, it is back breaking work for people to screef and plant by hand, and very difficult to see progress being made. Hence, diggers and mounding. What would transform everything, at least for native woods, was if the planting density was reduced to 500 trees per ha. If trees were planted in clumps, micro-sited to suitable areas of terrain only, say at 2 m spacing, that would cover c20% of the area, creating a fairly open native woodland, but a native woodland all the same, with a mixture of woodland and open ground habitats, and creating a seed source for the future. At this lower tree density, you could then incorporate any areas of regeneration, and include these in the overall output, not just plant over them. Importantly, the lower planting density makes it possible for one person to screef/ plant about a hectare in a day, about the same as a digger could at 1600 or 2500/ ha. So, you can create woodland at the same rate, but you don’t need the same cultivations, and it is cheaper/ ha as well. That means that ScotGov can fund more hectares for the same money. And with 80% of the area unplanted, chances are you will then get some genuine carbon sequestration, as although the planted area might be losing some via respiration, the peat areas will still be fine, so any investor will be more secure in the likely outcomes, especially those who do want to stick with this for the long term, and not just sell it off at the first opportunity in case things go pop. It doesn’t take a genius to work it out. We want woodlands, not plantations. If we can achieve that change in thinking, we will make some progress.

    1. Thanks Victor, if a rich and powerful company like Abrdn were to admit what you are saying, that would make a real difference without prejudicing the debate about planting v natural regeneration

  2. The method described by Victor is precsisely how a restored woodland was created in Glen Tarbet east of Strontian, Lochaber. While teh sotyh facing slopes were planted for forestry( now felled again) The south side of this glen was neavily grazed by sheep until the 1970’s. Then sheep were removed.
    Without resort to any boundary fencing to deter deer, gradually random planting was carried out. Back-packed into place to be Micro sited on areas of suitable terrain, a variety of tree species were dug in by hand.
    It took several decades for the development of satisfactory levels of tree cover to really begin to show. Today the lower slopes south of teh river are cloaked in a natural-looking cover of various mature native tree species, with many wide open spaces.
    The location east of the A 861/A884 road junction south of the Carnock river may not look much at first sight in an aerial view , but when zoomed in, or viewed using google street view camera car shots, all can be revealed. https://www.bing.com/maps?cp=56.685233%7E-5.484486&lvl=16.1&style=h

Leave a Reply

Your email address will not be published. Required fields are marked *