Scottish budget to consider CELT

Scottish Government commits to “include consideration of a proposal for a Carbon Emissions Land Tax (CELT), as has been suggested by the John Muir Trust”.

Deputy First Minister and Finance Secretary Shona Robison has included our highly innovative Carbon Emissions Land Tax (CELT) proposal as part of other positive news for the environmental sector, when delivering her first budget statement to the Scottish Parliament in December. She also mentioned increasing funding for NatureScot, SEPA, the National Parks programme, and vital initiatives for peatland and woodland restoration.

The Trust's Head of Policy Mike Daniels suggests this joined-up approach will help make ecological land management work for local communities and local economies, and is a big step towards delivering the Trust’s priority for a "Just Transition in wild places".

Speaking after the Scottish Government released its full budget statement online, Mike said: “If our model for an emissions-linked land tax is implemented it will be a world first – an entirely new form of taxation designed to encourage landowners of Scotland’s biggest estates to reduce carbon emissions.” 

The tax as envisaged by the Trust would not apply to ordinary homeowners, tenants or smaller business properties, but focus solely on the very largest landholdings in the country – areas that could accommodate more than 1,500 Hampden Stadiums.  

While the tax would raise much needed new finance for local government, Mike does not see CELT as punitive: “If the final legislation aligns with the John Muir Trust proposal landowners can minimise their carbon emissions and potential land tax obligation through ecologically sound land management practices such as native tree planting, restoration of peatlands and a range of other initiatives. Our focus is to change behaviours amongst the biggest, most environmentally damaging landowners in Scotland, no matter where they reside. That’s why our model is intended to apply only to holdings over 1,000 hectares and so exempt crofters, small farmers, and other community landowners.”

Under the Trust’s proposal local authorities would have the power to introduce the tax at their own discretion, with all revenues retained by councils.  Councils could then elect to spend the money raised to foster biodiversity, protect nature, or reduce impacts on climate – like projects to extend concessionary public transport, cycling infrastructure, energy efficiency, and community nature restoration.

“That’s why we’re heartened to see the Government committing to serious consideration to our innovative model. CELT has the potential to focus and help regulate a range of initiatives to improve land management, and help Scotland fulfil its Net Zero pledges to reduce carbon emissions. And that’s good news for local government, local communities, Scotland, and the world.”

• Read about CELT on page 31 of the Scottish Budget 2024-25 document.
• Add your signature to a public petition in support of the Carbon Emissions Land Tax.