It is important to note that Coillte has experience of delivering afforestation at scale. Since being established in 1989, Coillte has enabled the creation of approximately 100,000 ha of new forests. However, since 2003 Coillte has not been involved in afforestation at scale because it was precluded from directly receiving afforestation premiums due to EU state aid rules.
As a result, it has not been economically feasible for Coillte to buy land directly for afforestation since 2003.
Our preferred option is always to do direct afforestation ourselves. In order to address this, we made a submission to the European Commission in 2019 in respect of changing the state aid rules that preclude public bodies from receiving afforestation premiums. It was clear that any changes to state aid guidelines would involve a lengthy process, with no certainty of outcome. As a consequence, in the near term we had to explore options other than directly buying land ourselves. As such, we were looking to address the two main challenges to Coillte carrying out afforestation, namely, accessing the premiums to which we have referred and securing the necessary capital.
Those options are based on working with public bodies to identify publicly owned land suitable for afforestation and accessing investment from private sources. As I said, however, many different initiatives will be needed to deliver on our target of 100,000 ha in the long term. The first of our current initiatives is therefore the use of public lands for afforestation. As a first important step, we are working with Bord na Móna to enable the natural regeneration of native woodland on cutaway bog, which, if successful, could extend to approximately 1,500 ha of new forests. Our second initiative is the creation of new native woodlands. Those are being realised by the Nature Trust, which, as the committee will know, is a not-for-profit entity which works with organisations that want to deliver social good by providing funding for new native woodlands. The Nature Trust was set up in 2021. To date, it has raised funds that, when deployed, would be capable of creating 625 ha of new native woodlands. Third, we are looking at the creation of mixed woodlands, which is being realised by the Irish strategic forestry fund. Those forests will be a mixture of productive conifers and native broadleaves, which is fully in line with our ambition to deliver the multiple benefits of forestry.
The Irish strategic forestry fund is a collaboration between Coillte, the Ireland Strategic Investment Fund, ISIF, which is State-owned and part of the National Treasury Management Agency, NTMA, and Gresham House. ISIF is the cornerstone investor, with a €25 million investment. It is important to note that it is the investors, through the fund, that own the land. ISIF's capital will complement other Irish and international capital. The Irish strategic forestry fund is just one of many initiatives that will be required to deliver on our afforestation ambitions. The concept of forestry funds in Ireland is not new, with forestry funds actively operating in Ireland for the past 30 years. To put this in perspective, the total area of new forest planted through the Irish strategic forestry fund will be approximately 3,500 ha, with a target deployment period of five years. That equates to less than 1% of the State's overall long-term target of 450,000 ha.
As previously mentioned, there will be many different initiatives required to deliver on our target. As part of considering further initiatives, the Government has asked Coillte to examine how it can work more closely with farmers as well as potentially acquiring land directly, subject to state aid rules. In this regard, we are aware of recent changes to state aid guidelines and are reviewing these new guidelines and engaging with the Department of Agriculture, Food and the Marine on the potential for public bodies to be able to access afforestation premiums. These new rules could potentially deal with the current state aid challenge. It is important to note, however, that if the new guidelines mean Coillte will be able to access premiums, there remains the challenge of the scale of capital required.
The extent of the challenge for Ireland to deliver an additional 450,000 ha of new forests is immense. It clearly needs much more discussion and debate among all the key stakeholders to determine how best it can be achieved. It will require clear policies and tough decisions. It has to be clear to everybody that it will not be easy. One of the key challenges is the availability of land, which will be a critical enabler. Coillte's objective is to be a helpful player in the country's efforts to realise the ambitious but necessary targets. We are committed to working collaboratively with all the key stakeholders, and in that regard we will not be found wanting.
Against this backdrop, it is important to reflect on not only the scale of the challenge but also the significant opportunity for the forestry and wood products sector to deliver solutions to the climate emergency. We have developed a comprehensive strategic vision that, among other things, will see us managing our forests for greater carbon capture, delivering valuable wood products that will decarbonise the built environment, enhancing biodiversity and creating more recreational spaces for people to enjoy.
I thank the Chairman. We look forward to engaging with the committee.
