Farmers are being encouraged to apply for the Woodland Carbon Guarantee scheme ahead of the eighth auction, which will take place online from 23-29 September.
Administered by the Forestry Commission, the Guarantee is a £50m scheme that aims to help accelerate woodland planting rates.
It also aims to remove carbon dioxide from the atmosphere and has already resulted in nearly 3,000 hectares of new woodland across the country.
Now £20m is available as part of the eighth auction, for farmers and other land managers to create new woodlands.
Following an online auction process, successful bidders will be offered the option to sell woodland carbon in the form of Woodland Carbon Units, a financial value given to each tonne of carbon stored, to the government up to 2055 at a guaranteed price protected against inflation.
For the first time, the auction will be opened up to farmers, foresters and land mangers whose projects are not currently in receipt of government funding to allow a greater number of woodlands to benefit from the auction.
These projects will have access to a higher, undisclosed reserve price per Woodland Carbon Unit. Projects can still receive the Woodland Creation Planning Grant to support the design process and remain eligible for this new category.
Richard Stanford, chief executive of the Forestry Commission, said: "The Guarantee continues to be a huge success, providing additional financial surety for nearly 3,000 hectares of new woodland across the country.
“The eighth auction is a great opportunity for even more farmers, foresters and land managers to reap the benefits of this scheme."
Before applying for the Guarantee, land managers will need to have registered with the Woodland Carbon Code.
This provides the information required to verify and record the carbon they are capturing and can sell in future.
