Scottish environment minister Michael Russell has announced a consultation on proposals for the private sector to lease and manage publicly owned forests in order to fund new planting schemes.

The money raised by the leases would be used to fund new planting, helping lock up carbon in standing timber and maximise the use of carbon-lean wood products in the future.

Mr Russell’s scheme also includes plans for Forestry Commission Scotland to enter joint ventures on renewable energy products.

“We continue to lose significant areas of productive forestry every year through various mechanisms including the restructuring of first rotation plantations and clearance for wind farms,” said Stuart Goodall, chief executive of the Confederation of Forest Industries.

“We need to significantly increase planting levels simply to maintain the productive forest area. Given the twin challenges of climate change and securing sustainable economic growth, Scotland has to look to industries like forestry and wood processing to help secure a low carbon future.”

Mr Goodall added there is “capacity for the private sector to do much more” to ensure the replenishment of productive forests and enhance the forestry and wood products sectors role in the fight against climate change.