How Woodland Creation Affects Biomass Fuel Supply
The NAO’s March 2026 report on the Nature for Climate Fund raises important questions about the pace of woodland creation in England and the knock-on effects for the UK’s biomass fuel supply chain. Here’s a breakdown of the key findings and what they mean for the wood fuel sector.
What the NAO Report Reveals About UK Tree Planting
The Nature for Climate Fund was established by Defra in 2020 with a £764 million budget to boost tree planting and peatland restoration across England. The programme set a target of 28,728 hectares of new tree planting over five years.
The results fell short. By the end of the programme period, 15,268 hectares of trees had been planted, roughly 53% of the target. The NAO found that the programme had a slow start and earlier years were further away from planned levels of activity. A 24% budget underspend over the initial five years added to the concern.
However, the picture is not entirely negative. In 2024-25, the programme directly funded 6,324 hectares of tree planting, a 30% increase on the previous year. Tree planting rates in England are now at their highest level in over 20 years.
The problem, according to the NAO, is what happens next.
Why Woodland Creation Is Losing Momentum?
The report highlights several factors slowing momentum:
- Funding uncertainty beyond 2026 is making landowners and contractors reluctant to commit
- Sector capacity issues, including a shortage of qualified foresters and nursery stock
- A lack of clarity on Defra’s long-term land use objectives
- Tensions between competing policy goals, such as nature restoration versus development
Several delivery partners told the NAO that momentum was being lost because of doubts about future plans. Without clear direction, investment decisions across the forestry supply chain become harder to make.
Gareth Davies, head of the NAO, said Defra should apply what it has learned to maximise climate and biodiversity benefits, and to attract private investment going forward.
The Impact on UK Biomass Fuel Supply Chains
Woodland creation is not just about carbon sequestration and biodiversity. It is also the foundation of the UK’s domestic biomass fuel supply.
Every hectare of well-managed woodland planted today contributes to the long-term availability of sustainably sourced wood chip, wood pellets and brash. When planting rates slow down or stall, the effects ripple through supply chains years and even decades later.
The UK currently has one of the lowest woodland coverage rates in Europe, at just 14.9%. The government’s target is to reach 16.5% by 2050 under the Environment Act 2021. To get there, annual planting needs to reach at least 9,000 hectares per year, a significant step up from current levels.
For businesses and organisations that rely on biomass heating, the message is clear: supporting responsible woodland creation is not just an environmental position, it is a supply chain priority.
Government Investment in Forestry and Tree Planting
Despite the shortfall, the government has committed £1 billion to tree planting and forestry over this Parliament, the largest programme of its kind in England’s history. In 2024, 10.4 million trees were planted, a 46% increase on the previous year.
New National Forests have been announced, including the Western Forest across Bristol and the South West, and a second in the Oxford-Cambridge corridor. A competition for a third National Forest in the Midlands or North of England is expected to launch in 2026.
The UK Forestry Commission also recently approved Bagots Park Wood in Staffordshire, its largest woodland creation project in over 20 years, which will provide habitat, public access and a future sustainable timber supply.
These are positive steps. But as the NAO makes clear, maintaining momentum requires consistent funding, skilled workers and long-term certainty for everyone involved in the supply chain.
Sustainably Sourced Wood Fuel from Woodyfuel
At Woodyfuel, all our wood chip, wood pellets and briquettes are sourced from responsibly managed UK forestry in full compliance with FSC and Woodsure certification standards.
We work with landowners, estates and forestry operations to ensure that the wood we process comes from sustainable sources. Our brash removal and site clearance services also support good woodland management by turning forest residues into usable biomass fuel, rather than letting them go to waste.
If your business depends on reliable, certified biomass fuel, or if you manage woodland and want to explore supply partnerships, we would welcome the conversation.
Get in touch with Woodyfuel at 03333 447234 or email us at info@woodyfuel.co.uk to discuss your wood fuel requirements.
Source: The Nature for Climate Fund – National Audit Office (March 2026)
