Standards and ObligationsELIGIBILITY CRITERIA FOR ACCESS TO PUBLIC LAND
Lever last updated: 14 September 2026
A condition on public-land leases requiring the tenant to deliver or fund carbon removal.
Cost
Very low to Low
The public owner pays for drafting lease conditions, assessing applicants' commitments, checking carbon evidence and enforcing agreements. Existing leasing staff can handle a small programme; a larger estate needs specialist support. Tenants pay for required practices or removal purchases. Any additional rent discount would also carry a fiscal cost.
Complexity
Low to High
Existing leasing powers and accepted removal evidence allow relatively simple contract amendments for new leases. Wider requirements can need legislation, new monitoring capability, resolution of existing rights and coordination over land use, carbon claims and obligations that continue after the lease.
Timeline
Very short to Medium
An authority using existing powers can cause a new tenant to commission removals or change planned land management within a year. New legislation, lease negotiations and the need to wait for renewals can extend that first practical change to two to five years.
Integrity, Transparency & MRV
Innovation & Cost Reduction
Social & Environmental Safeguards
Energy, Transport & Storage Infrastructure
Inputs & Capacity
Demand Formation
Bankability and Cost of Capital
Policy Architecture & Coordination
Overview
A public landowner can require a company to undertake or pay for carbon removal as a condition of leasing its land. The condition applies to the tenant's right to use a public asset, whether the main activity is farming, industrial production or property development. The lease might require specified carbon-removal practices on the site, or require the tenant to buy verified removals to balance an agreed share of the activity's remaining emissions. The landowner must state which duty applies before selecting a tenant. Access to a commercially useful site gives the tenant a reason to meet that duty, with continued compliance written into the lease.
Key Considerations
The landowner must establish whether its leasing powers allow the proposed climate condition and whether it can apply to a new lease, a renewal or a negotiated amendment. Existing tenants cannot simply be given new duties outside the agreement and applicable law. Terms should specify the required activity or removal quantity, deadlines, eligible methods and evidence. Where purchases balance site emissions, the lease must define those emissions and preserve a separate duty to reduce them. On-site work needs suitable land, protected existing rights and clear responsibilities for monitoring and reversals. Transfer, expiry and insolvency clauses must identify who fulfils outstanding commitments.
Opportunities
Public ownership gives an authority influence over businesses that want to farm, build or operate on its land. Adding a removal condition can turn a lease that would otherwise earn rent alone into a continuing commitment to climate action. Suitable holdings can support verified changes in land management; other tenants can pay specialist suppliers to provide removals elsewhere. Applying clear conditions across successive leases can create recurring demand while allowing tenants to choose how to fulfil a defined obligation. Longer agreements can support practices that require sustained management, provided performance is checked throughout.
Risks
Conditions may exceed the owner's powers, conflict with existing tenure or be weakened once a tenant occupies the site. Applicants can promise removals without arranging delivery. Demanding terms can deter bidders, reduce rental offers or shift activity to other land. Unsuitable planting or other on-site practices may displace existing users, reduce food production or damage ecosystems. A tenant may sell the same carbon benefit it has promised to the landowner. Lease expiry or business failure can leave removals undelivered or stored carbon without an accountable manager.
Monitoring and Evaluation
The owner should compare each tenant's lease commitments with completed practices, verified removals and any units cancelled for purchased removals. Site inspections and registry records should test the evidence and prevent conflicting claims. Bid participation, rental offers and tenant costs show whether conditions deter suitable users. Missed milestones, poor carbon outcomes or unresolved rights should inform enforcement, renewal and the terms offered in later leases.
Stakeholder Engagement
Public landowners and legal advisers should settle which conditions can be included and how they will be enforced. Prospective tenants and removal suppliers should test the cost and practicality of both on-site work and purchased removals. Existing users, Indigenous rights-holders and affected communities should shape any changes to land management. Carbon specialists should define credible evidence, while environmental regulators identify approvals needed for the proposed activity.
Governance Levels
National, regional, state and municipal authorities can set lease conditions where they own or administer public land and the law permits those conditions. The landowner selects the tenant, agrees the required carbon-removal performance and enforces the lease. Higher-level legislation may restrict lease terms or protect existing users. Environmental regulators still decide whether an activity may operate, even when the public owner has agreed to lease the site.
Implementation Strategies
Public owners should identify upcoming leases and renewals where they can lawfully require a removal contribution. They should decide whether tenants must carry out specified work on the site, purchase verified removals elsewhere or choose between the two.
Published lease conditions should define the quantity or practice required, delivery dates, carbon evidence and consequences of failure. Market consultation should test whether prospective tenants can meet the requirement at the proposed rent.
The agreement should specify who claims the carbon benefit and who pays for monitoring, replacement removals and restoration. Transfers, insolvency and expiry should leave an identified party responsible for outstanding commitments, with proportionate remedies for non-compliance.
Owners should check performance during the lease and before renewal. Evidence of unmet obligations, ecological harm or persistent bidder withdrawal should inform enforcement and future terms. On-site activities should obtain the required consent and operating approvals before work starts.
Case Studies
Helsinki's carbon-performance conditions in plot allocation
Helsinki can attach a building's lifecycle carbon-footprint limit to the conditions under which a developer receives a city-owned plot. Its current guidance applies the limit to relevant building-permit applications from June 2023 where the city plan or plot-allocation terms require it. The developer must calculate the footprint when seeking permission and update the calculation when the completed building is accepted. Plot-allocation conditions therefore provide a contractual route for influencing a developer's design, alongside the city's planning powers. The requirement concerns emissions performance, not a CDR purchase duty. A removal condition would need to specify the additional quantity or activity required and how the tenant proves delivery.
York Community Woodland
City of York Council acquired roughly 80 hectares for community woodland and arranged a 120-year lease to Forestry England, the public body managing England's national forests. Under the arrangement, Forestry England would establish and manage the woodland and pay rent, while the council would claim verified units under the Woodland Carbon Code. A 2026 council report recorded that the woodland opened in 2024, with nearly 200,000 trees planted and 18,500 credits expected over 50 years. The lease identifies the tenant's land-management task and who receives the carbon benefit. It demonstrates an on-site removal activity secured through a public-land agreement; planting and projected credits are not evidence of verified removals already delivered.
The Crown Estate's Environmental Farm Business Tenancies
The Crown Estate, which manages land held by the Crown, developed Environmental Farm Business Tenancies with the Tenant Farmers Association. Its June 2026 account reported 17 agreements covering more than 4,444 hectares. Each 15-year tenancy includes a field-by-field Nature Action Plan, with lower rent for areas dedicated to nature recovery. The agreements make environmental management part of how a farm occupies and pays for the land, supported by a longer lease. They demonstrate how an owner can negotiate practical management commitments with ordinary tenants. The reported activities concern nature recovery and climate resilience; the account does not establish a quantified CDR obligation or verified removals.
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2–3©2026 Alexander Mäkelä and Carbon Gap.
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