Israeli firm faced enforcement action over peat extraction in Scotland

Peat excavation on Skye island, Scotland

An Israeli company linked to a major Conservative Party donor faced enforcement action over its peat extraction operations in Scotland, The Ferret can reveal.

The multinational Israel Chemicals Limited (ICL) mined peat for compost until recently at Nutberry Moss, in Dumfries and Galloway.

The firm was supposed to restore the site after its work finished but Dumfries and Galloway Council issued an enforcement notice against ICL because of its “failure” to put in place funding to do so.

Peatlands have been described as “Scotland’s rainforests” because of the large quantities of carbon stored and they are important in the fight against climate change.

In Scotland, they store 1.7 billion tonnes of carbon, equivalent to 140 years’ worth of our total annual greenhouse gas emissions. But when peat is extracted carbon is released into the atmosphere, contributing to global warming.

Documents obtained by The Ferret show the council issued an enforcement notice against ICL in February 2024, in response to its “breach of planning control.”

Specifically, the council said ICL had “fail[ed] to comply” with requirements in the planning application to provide a financial guarantee to cover the cost of restoring the site, estimated at £1,000 per hectare, and submit full details of it to the council for approval.

Planning officers deserve credit for their dogged determination in pursuing ICL but you can’t ‘put right’ the loss of one of the world’s most precious habitats and a valuable carbon store.

Laura Moodie, a spokesperson for the Scottish Greens in Dumfries and Galloway.

This, the council said, was necessary “to ensure financial viability for the post-extraction restoration and aftercare of the site.”

A deadline of 16 May 2024 was set for compliance. However, in response to a freedom of information request by The Ferret, the council said “the enforcement notice has not yet been complied with by the developer” – more than seven months after the deadline.

Peat extraction at the site has now stopped, and “the operators are working with our council to get the site restored,” the local authority added.

However, at time of writing, the council had not confirmed whether ICL had provided evidence that financing for the restoration had been put in place.

When contacted by The Ferret, ICL confirmed that peat extraction has ended at Nutberry Moss, but declined to comment further.

ICL’s largest shareholder is Israel Corporation Limited, 51 per cent of which is owned by billionaire Conservative donor, Idan Ofer.

One of Ofer’s companies, Quantum Pacific UK Corporation, reportedly made a £10,000 donation to the Tories in 2019, as well as two £35,000 donations to Robert Jenrick’s bid to lead the party in 2024.

The Ferret first reported on alleged breaches of planning permission at Nutberry Moss in October 2022. However, the council did not take enforcement action against ICL until last year.

ICL’s permission to extract peat from the site expired in November 2024.

Peat extraction plans for Nutberry Moss rejected by Dumfries and Galloway Council
An attempt by a fertiliser multinational to extend peat extraction in south-west Scotland has been unanimously rejected by a council on grounds it would contribute to climate change. Chemicals company ICL had applied to continue extracting peat, which it uses in the production of compost, from a site called Nutberry

A spokesperson for Dumfries and Galloway Council told The Ferret: “We are currently working directly with the site operators. This is ongoing work, but we are making positive progress. Peat extraction has now ceased and the operators are working with our council to get the site restored.”

Alistair Whyte, head of the campaign group Plantlife Scotland, said he welcomed the council’s “determination to hold ICL to account” in restoring the peatland at Nutberry Moss. Calling on the Scottish Government to end peat extraction, he added: “But this is another case of closing the stable door after the horse has bolted – it’s time to call a halt to the damage and destruction caused by peat extraction in the first place.”

Peatland campaigner Dr Janet Moxley said it was “concerning” if ICL had not complied with the planning condition, claiming this would leave the council “at risk of having to pay for site remediation if the contractor runs into financial difficulties”.

She added that restoration bonds are intended to ensure that any damage caused by minerals extraction is minimised, and to “protect the public from having to pick up large bills” if the site operators go bankrupt.

“There needs to be clarity on whether or not a restoration bond has now been lodged and certainty that this site will be fully restored as soon as possible,” Moxley continued.

Laura Moodie, a spokesperson for the Scottish Greens in Dumfries and Galloway, criticised ICL’s failure to meet the planning requirements and said it must provide the “financial security and long-term plan for restoration” they are required to do.

She added: “Planning officers deserve credit for their dogged determination in pursuing ICL but you can’t ‘put right’ the loss of one of the world’s most precious habitats and a valuable carbon store.”

Featured photo credit: iStock and longtaildog

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