Irish Wildlife Trust, People Before Profit criticise Coillte for selling land to UK investment fund

The Irish Wildlife Trust, a charity organisation that aims to conserve and encourage Irish wildlife, habitats, and biodiversity, has expressed distress at the partnership behind the Irish Strategic Forestry Fund.

Coillte, Ireland's largest producer of certified wood, also cultivates a multitude of recreational forests and nature trails. The semi-State company announced the fund on January 6th, with the group aiming to plant around 247,000 acres of new forests by 2050, an area larger than Dublin county.

Half of that land will be purchased through a not-for-profit vehicle, with the remaining 123,000 acres coming through a partnership with investment company Gresham House, a UK-based specialist asset manager and investment fund. The move has sparked criticism from rural Ireland, farmers and politicians alike.

Senior officials from Coillte confirmed to the Oireachtas Agriculture Committee last month that it would need access to capital from the private sector to be able to meet their 2050 green target.

"We want to create a sustainable future from our forests and land," Coillte state on their website.

Coillte's previous attempts over the past two decades to acquire lands for forestry projects were obstructed by strict EU rules regarding State aid funding. The partnership with Gresham House allows Coillte to navigate around this financial barrier.

"The 'Irish Strategic Forestry Fund' will provide up to €200m capital needed to create new forests, making a significant contribution to Ireland’s Climate Action Plan," Coillte remarked. "The fund will also acquire existing forest assets and when fully deployed, will represent a portfolio of approximately 12,000 hectares of new and existing forests."

"The fund will be managed from Gresham House’s Dublin office, with Joe O’Carroll acting as Investment Director."

The Ireland Strategic Investment Fund (ISIF) has also invested an initial €25m. ISIF invests in commercial businesses to "support economic activity and employment in Ireland" - controlled by the National Treasury Management Agency (NTMA). Critics are claiming that Coillte are handing over 123,000 hectares of land to investment funds.

Courtesy of Coillte

Coillte hosted a public consultation survey assessing public views on their "new vision," aiming to benefit the four objectives of climate, nature, wood, and people. The survey closed July 5th, 2022.

The body's vision "positions Coillte as playing a leading role in the delivery of solutions to the climate emergency and biodiversity crisis while also ensuring a strong supply of sustainably produced timber."

The Irish Wildlife Trust's campaign officer, Padraig Fogarty, has publicly voiced fears of Coillte planting only the "most commercially viable" trees for the project. The risk of a mono-culture composed of imported non-native tree species poses the possibility of a harmful impact on local ecosystems.

"Our fear is that they're just going to plaster it with more plantations of Sitka spruce."

While Gresham House acknowledges that there will be a high percentage of Sitka spruce, their desired diversified portfolio would involve an "absolute minimum" of 20% broad leaf tree species.

The decision to foster the partnership with Gresham House is not just criticised by forestry organisations but farm organisations as well. The Irish Farmers Association (IFA) expressed concern over Coillte's plans to buy up possible farmland for forestry.

A range of forestry groups has come out against the decision of @coilltenews to join forces with a foreign investment house to buy up land for forestry. Read the statement in full 👇https://t.co/16Pa5tTtnR

— Irish Farmers' Association (@IFAmedia) January 13, 2023

The IFA's website delves into their more nuanced issues with the project.

"This will not add to the local community or the local economy. Furthermore, this will have a negative social impact through rural depopulation by encouraging investment funds to compete for land, thus disadvantaging existing local, new entrant and young farmers."

There are calls for Agriculture Minister, Charlie McConalogue, to meet with Coillte and Gresham House. He claims that the deal was not something that required his approval.

People Before Profit TD Richard Boyd Barrett has also weighed in, lambasting the selling of land to investment funds and further privatisation of Coillte.

Coillte planning to hand over 123k acres of land to investment fund. In 2012 the FG/Lab gov tried to sell off our forests. @pb4p @woodlandleague and others organised major protests to stop this. Looks like we’ll have to do that again. pic.twitter.com/PXLjDOwT8k

— Richard Boyd Barrett (@RBoydBarrett) January 12, 2023