Land use, land-use change and forestry is becoming increasingly important when it comes to climate change, but what is it, and how does it impact your organisation? Orlaith Delargy dives in.

It might be strange to think of Ireland’s land and forestry as a ‘sector’, but under Ireland’s Climate Bill 2021, emissions from this sector will need to reach net zero by 2050. Land use, land-use change and forestry (LULUCF) is a vital part of Ireland’s climate challenge – and solution.

What is LULUCF?

LULUCF is one of the categories in the UN’s greenhouse gas accounting framework. Emissions from forests, grasslands, croplands, wetlands and land-use change are reported under this category.

We often think that areas such as forests and wetlands absorb carbon, but the LULUCF sector in Ireland has been a net source of GHG emissions in all years from 1990 to 2019.

In 2018, for example, the LULUCF sector emitted 4.8 megatonnes of CO₂ equivalent (MtCO₂e). That’s on par with total emissions from combustion in the manufacturing industry. In particular, grasslands and wetlands are considerable sources of emissions due to the drainage of organic soils and peatlands, which releases carbon and increases emissions.

LULUCF in the Climate Action Plan 2021

Under the new Climate Action Plan 2021, the LULUCF sector will have to cut two to three Metric tons of carbon dioxide equivalent (MtCO₂e) by 2030. The challenge could be even greater if Ireland’s forest sink continues to decline – cuts of 4.6 MtCO₂e may be required. 

How does the Climate Action Plan 2021 propose to meet this challenge? Rapidly increasing afforestation and rehabilitating and restoring peatlands are key pillars of the proposed actions. We will see the publication of the National Land Cover Map and the National Land Use Review, which will support decision making around Ireland’s land use.

A new Forestry Strategy and Programme will be launched in 2023, along with agri-environmental schemes encouraging farmers to establish and maintain forests on their land. The Government will support the development and use of timber and harvested wood products, with knock-on effects for the construction industry.

The role of agriculture

A range of agricultural measures will be introduced to increase carbon sequestration, and a National Agricultural Soil Carbon Observatory will be established. Measures to increase carbon sequestration include incorporating straw and cover crops in tillage, using multi-species swards on Ireland’s grasslands, and increasing the number of hedgerows and trees on farms.

The next National Biodiversity Action Plan is under development and will include a range of measures to support the delivery of the Climate Action Plan 2021.

The role of oceans

The role of the oceans in carbon sequestration will also be reviewed, with efforts to increase public and scientific understanding of the effects of climate change on the sea.

What’s the takeaway for businesses?

Businesses in all sectors depend directly or indirectly on natural capital (the land, the sea and everything in between) for essential goods and services such as clean air, clean water, food, timber, and well-being. Climate change and biodiversity loss seriously threaten these goods and services.

According to the Global Reporting Initiative (GRI), less than 25 percent of large companies at risk of biodiversity loss disclose their impacts. This year, GRI and CDP are ramping up their expectations for corporate reporting on biodiversity.

The Taskforce for Nature-related Financial Disclosures (a global initiative to provide organisations with a framework to address environmental risks) will publish the first draft of its recommendations.

To keep pace, businesses need to begin mapping their dependencies and impacts on natural capital to ensure that everyone can continue to benefit from ecosystem goods and services into the future.

Businesses should assess and disclose nature-related financial risks and incorporate these factors into their risk management and investment decision-making. Companies with land holdings of any size should consider what they can do – and who they can partner with – to improve carbon sequestration and biodiversity and support Ireland’s LULUCF targets.

Orlaith Delargy is Associate Director at KPMG Sustainable Futures.