The recommendations are:

• Shaping market frameworks and putting in place regulatory steps.
• New models of governance and leadership to realise the opportunities for participation and engagement.
• Using fiscal and tax policy to influence behaviour within the markets.

Chief executive of the Scottish Land Commission, Hamish Trench said: “Scotland has an opportunity to attract significant investment into its land and natural capital. Doing this in a fair and effective way is key to making a just transition to net zero.

“Carbon and natural capital are shining a fresh spotlight on Scotland’s land but the issues are not wholly new.”

The recommendations to the Scottish Government address Scotland’s longstanding pattern of concentrated land ownership and include a public interest test at the point of significant land transactions.

Against a trend of increasing off-market sales, the commission also proposes that the intention to sell large landholdings should be publicly advertised ahead of time to improve market participation.

The commission proposes stronger leadership across public, private and voluntary sectors to introduce new forms of collaborative governance and ownership to increase community participation and build on the strengths of each sector to share risk and benefit.

Mr Trench added: “The commission’s recommendations set out practical steps that can be taken to shape these markets and realise the opportunities on the ground. They help deliver on the Scottish Government’s land reform programme and its commitment to establishing high integrity, values-led natural capital markets.

“We are addressing not just the risks and opportunities of immediate changes associated with carbon but how the ways we own and manage Scotland’s land can adapt to other new influences, investment and value in future.

“Our advice is for all parties involved in the land sector, who together can shape a responsible approach to Scotland’s land to benefit all.”

The commission will also be publishing a protocol on responsible practice for investment, alongside further work looking at ways to secure community benefit from natural capital.

The Scottish Land Commission provides advice and recommendations for law and policy as well as leadership for change in culture and practice and works to create a Scotland where everybody can benefit from the ownership and use of the nation’s land and buildings.