Scotland’s peatlands: Restoring a carbon-rich legacy for a net-zero future

Jason Stewart
Product and Proposition Manager
Barclays

Scotland’s peatlands are more than just a scenic backdrop; they are a powerful ally in the global battle against climate change.

The UKs peatlands are an incredible carbon sink, sequestering more carbon than all of our forests combined(4)! Scotland’s peatlands cover 20% of Scotland's land, but 90% of them are damaged or degraded, turning them from one of the most efficient carbon sinks into a dirty carbon source(2). If we do not restore our peatlands the carbon they leak will negate all of the progress we make in transitioning in other industries. The restoration and maintenance of Scotland’s peatlands will play a crucial role in the UK’s journey to Net Zero.

Peatlands are formed in waterlogged areas where plant material, such as moss and reeds, accumulates faster than it can decompose(11). Peatlands' acidic, wet, and low-oxygen conditions prevent plant material from naturally decomposing. Over centuries, layers of the partially decomposed plant material build-up, forming a deep, spongy substance known as peat.

These remarkable ecosystems form over millennia, with a mere metre of peat taking a thousand years to accumulate. Scotland is home to 66% of the UK’s peatland, including the renowned Flow Country in Caithness and Sutherland, which is over 9000 years old(12)! The Flow Country was recently made a UNESCO World Heritage Site as it contains over 5% of the world's blanket bog peatland. 

Peatlands have played an important role in Scotland's history, particularly as a fuel source. Peat was widely used for heating homes and cooking food, as well as for drying grain and making lime(3). Moreover, peat has a unique connection to Scotland's iconic whisky industry. Some distilleries use peat to dry malted barley, imparting a distinctive smoky flavour to their whiskies. Unfortunately, many of Scotland's peatlands have suffered significant degradation due to human activities such as drainage for agriculture and forestry. When peatlands are damaged they become sources of greenhouse gas emissions, releasing carbon dioxide and methane into the atmosphere(1).

Peatlands are one of the most carbon-rich ecosystems on Earth, storing twice as much carbon as the world’s forests, however the degraded condition of Scotland’s peatlands are hindering their impact. Peatlands are one of Scotland’s most degraded ecosystems, with nearly 90% of Scotland’s peatlands damaged to some degree. Not only is peatland degradation bad for greenhouse emissions, as previously discussed, but it is also increases the risk of floods, decreases water quality, and reduces biodiversity. If we continue to let them degrade and stay damaged they will continue to leak emissions into the atmosphere, negating the progress we make in transitioning to net zero in other industries. 

Scottish Peatlands currently store 1.7 billion tonnes of carbon, equivalent to 140 years’ worth of Scotland's annual greenhouse gas emissions. By conserving, protecting and restoring peatlands we can revitalise these degraded ecosystems, allowing them to capture more carbon and provide a host of other environmental benefits(9). 

Beyond their role as a carbon sink, peatlands provide a range of other essential ecosystem services. Peatlands play a crucial role in regulating water flow, helping to prevent floods and droughts, and act as natural water filters, improving water quality by removing pollutants(10). Peatlands also support biodiversity and contribute to the beauty of Scotland's landscapes.

Restoring Scotland's peatlands involves a combination of techniques aimed at stabilising the peat and restoring its natural water level. This often requires a collaborative effort between landowners, land managers, and experts to implement effective restoration strategies. One common approach involves blocking drainage ditches with peat dams. These dams raise water levels, creating the wet conditions necessary for the growth of sphagnum moss, a key component of healthy peatlands. 

The Scottish Government has recognised the significant role of peatlands in the journey to net zero, committing over £250 million to peatland restoration between 2020 and 2030(6). Peatland Action, a publicly funded peatland restoration program working with landowners across Scotland, has been making massive strides to restore Scottish peatlands. Peatland Action has restored over 51,000 hectares of peatland since 2012(5). In the past year over 10,360 hectares were restored across 100 projects, the highest amount ever achieved in a single year(7)! Peatland Action has done incredible work, but more needs to be done to support and empower landowners to not only restore peatlands but maintain them over long periods of time!

The Scottish financial services industry, with its deep roots and influence, has a unique opportunity to play a pivotal role in the restoration and conservation of peatlands. By leveraging our expertise and resources, we can help move Scotland further along its journey to net zero and safeguard its natural heritage.

A fundamental step is to inform people about peatland’s ecological significance and their role in climate regulation. Financial institutions can organise workshops, seminars, and online resources to educate their employees, clients, and the public about the value of peatlands. Peatland Action has some great resources to learn more about peatland restoration and how to support landowners. By raising awareness, the industry can help drive public support for legislation that can support landowners, from croft farmers to corporate developers, to restore peatland.

To encourage long-term peatland conservation, financial institutions can partner with landowners to develop sustainable land management plans. These plans can include measures to improve peatland health, such as rewetting, replanting, and grazing management. By providing flexible financing options, such as long-term loans or grants, financial institutions can enable landowners to invest in peatland restoration without compromising their livelihoods. Additionally, they can support the development of innovative payment schemes that reward landowners for the carbon their peatlands capture. 

The journey towards net-zero emissions is a complex and multifaceted challenge. By embracing nature-based solutions such as peatland restoration, we can reduce greenhouse gas emissions and build a more sustainable future. By recognising the value of our peatlands and taking action to protect and restore them, we can ensure that these vital ecosystems continue to play a crucial role in mitigating climate change and safeguarding our planet for generations to come.