Canada says Canadian forestry investments in the US South should be viewed positively by US Section 232 investigation. In related news: US trade policies create uncertainty for Canada’s forest sector; amid uncertainty—BC invests $11M in four wood product manufacturers; and a webinar to help contractors manage tariff impacts. Meanwhile: a look inside Gorman’s West Kelowna mill; what the closure of IP’s Georgetown mill says about fluff pulp; and US roofing contractors say they are delaying projects.
In Forestry/Wildfire news: Canadian Forest Owners seek clarity from the political parties; firefighting drones could change the way BC fights wildfires; ENGO’s want BC to refocus on old-growth; Trump and California find common ground on forestry; New Jersey lifts its wildfire evacuation order; and the US Fix Our Forests Act called forest malpractice.
Finally, Wood Solutions Conference comes to Halifax, and the Softwood Lumber Board’s 2024 Annual Report.
Kelly McCloskey, Tree Frog News Editor
The temporary lifting of triple-digit trade levies between China and the US while trade talks get under way removes the threat of an immediate stagflationary hit to the economy. This is very good news. It goes much further than investors thought possible—the current deal reduces the extra tariffs on China to 30%, made up of the base of 10% that will be matched by China, plus a 20% duty meant to make China do more to combat fentanyl. But an even better reason for such a big bounce is that it looks like Treasury Secretary Scott Bessent is now in control of trade policy. Put simply, the grown-ups are in the room. …Don’t get your hopes too high. Tariffs are unlikely to go back to pre-Trump levels. …Bessent is after deep reform of China’s economy. [to access the full story a WSJ subscription is required]
VANCOUVER — Canfor Corporation reported its Q1, 2025 results. The Company reported an operating loss of $28.5 million for the first quarter of 2025, compared to an operating loss of $45.9 million in the fourth quarter of 2024. …These results largely reflected improved lumber segment results and, to a lesser extent, the pulp and paper segment. Canfor’s CEO, Susan Yurkovich said, “While improved lumber benchmark prices provided some relief, rising global economic and trade uncertainty, and US lumber duties, create a challenging backdrop. Through our diversified operating platform in Canada, the US South and Europe, we are positioned to mitigate these challenges, while remaining focused on what we can control. …“For our pulp business” Yurkovich added, “this was another solid quarter with improved results and a strong operational performance. However, global economic uncertainty is also putting pressure on global softwood pulp markets in the near term.”
NEW YORK, NY — Mercer International reported first quarter 2025 Operating EBITDA of $47.1 million, a decrease from $63.6 million in the same quarter of 2024 and $99.2 million in the fourth quarter of 2024. In the first quarter of 2025, net loss was $22.3 million compared to $16.7 million in the first quarter of 2024 and net income of $16.7 million in the fourth quarter of 2024. Mr. Juan Carlos Bueno, Chief Executive Officer, stated: “There was continued strength in pulp markets and an improving lumber pricing environment in the first quarter of 2025. However, our operating results in the quarter were negatively impacted by annual planned maintenance downtime at our Celgar mill and the impact of the weaker dollar against the euro.
BEIJING — China announced a barrage of measures meant to counter the blow to its economy from US President Donald Trump ’s trade war, as the two sides prepared for talks later this week. Beijing’s central bank governor and other top financial officials outlined plans Wednesday to cut interest rates and reduce bank reserve requirements to help free up more funding for lending. …Trump’s tariffs on imports from China, have begun to take a toll on its export-dependent economy at a time when it’s already under pressure from a prolonged downturn in the property sector. China has retaliated with tariff hikes of up to 125% on US goods and stopped buying most American farm products. Late Tuesday, China and the US announced plans for talks. …The agreement to talk comes at a time when both sides have remained adamant, at least in public, about not compromising on the tariffs.
The clock is ticking on trade deals that the US will need to strike with many nations, most notably China, to avoid what Trump’s Treasury Secretary has described as an “unsustainable” tariffs war. But in the U.S. farming sector, the damage has already been done and the economic crisis already begun. US agriculture exporters say the global backlash to President Trump’s tariffs is punishing them, especially a decline in Chinese buying of US farm products, leading to cancelled export orders and layoffs. Peter Friedmann, of the Agriculture Transportation Coalition …says “massive” financial losses are already being shared by its members. …A wood pulp and paperboard exporter reported to the trade group the immediate cancellation or hold of 6,400 metric tons in a warehouse and a hold of 15 railcars sitting in what is known in the supply chain as “demurrage,” when fees are charged for delayed movement of goods.
Drax Group plc on May 1 
UK — Housing starts in the UK have lagged behind completions for the sixth successive quarter, including to the latest official data. Around 32,000 homes were started in the last quarter of 2024, compared to just over 49,000 completed during the same period, according to the Office for National Statistics. The number of starts is down from 37,000 in the preceding quarter and well below the average of 42,000 homes which have been started per quarter since the ONS resumed gathering the data after the pandemic in April 2022. Completions have remained more stable, rising in the last quarter of 2024 from 41,500 in the third quarter, with an average of just over 49,000 completions a year since the pandemic. Pocket Living chief executive Paul Rickard said: “By any measure these are a disappointing set of figures and continue to highlight the massive challenge the government has.”
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Agriculture and Forestry Minister Todd McClay has confirmed that restrictions on full farm-to-forest conversions on LUC 1-6 farmland will be in place this year, and reaffirmed that they will take effect from 4 December 2024 – the date of the original announcement. Enabling legislation will be introduced to Parliament during Q2 of this year. “The Government is focused on maintaining strong food and fibre production while supporting sustainable land use. We remain concerned about the effect that farm conversions are having on highly productive land — particularly sheep and beef farms in Northland, the East Coast and parts of Otago and Southland,” Mr McClay says. The new rules, now progressing through Cabinet, will ensure balance and recognise the value of both forestry and farming, while providing certainty for our food producers.
BRUSSELS – For fashion companies grappling with the EU’s ambitious anti-deforestation law, a recent tweak from the European Commission may appear to offer some relief. As the December deadline looms for the landmark EU Deforestation Regulation (EUDR), Brussels has eased what some companies claimed were daunting reporting requirements. Instead of the initially mandated declaration for every shipment of goods linked to forest destruction, companies now only need to submit a single annual due diligence statement. …The Commission hopes this new simplification – which also includes allowing authorised representatives to file for company groups and enabling reuse of statements for re-imported goods – will shave off a significant 30% in reporting burdens and associated costs for affected businesses. However, the EU Commission’s simplification is being met with concern by environmental campaigners. As Reuters reported, the streamlining of paperwork has sparked fears that the teeth of the EUDR might be blunted.
Representing 27% of all forests worldwide, boreal forests are the planet’s terrestrial “second lung” after tropical forests. Encircling the North Pole, they span North America, Europe, and Asia, playing a vital role in global carbon sequestration and storage, biodiversity, and supporting societies and economies. Despite their importance, boreal forests do not receive the same visibility and attention among policymakers and the public as their tropical forest counterparts. A new study published by the United Nations Economic Commission for Europe (UNECE), presented today at the United Nations Forum on Forests in New York, highlights the urgent need to increase the understanding of this global “treasure trove” and to safeguard its important contributions… Boreal forests, like other forest biomes, are important to global goals such as the Sustainable Development Goals (SDGs) 8, 12, 13 and 15, the six Global Forest Goals and the Targets of the United Nations Strategic Plan for Forests 2030.
The United Nations Forum on Forests commenced its twentieth session today, as speakers spotlighted the connection between healthy forests and a sustainable future, the increasing threats to this important global resource and the subsequent need to invest in its protection despite a shrinking fiscal space. The Forum will hold its twentieth session from 5 to 9 May in New York. Established in 2000 by the Economic and Social Council, the Forum has universal membership and is tasked with reviewing progress in the implementation of sustainable forest management. This session — a technical one — will focus on Global Forest Goals 1 (reversing forest loss), 3 (protecting forests and using sustainable forest products) and 5 (promoting inclusive forest governance). “This Forum is unique,” observed Ismail Belen (Türkiye), Chair of the Forum’s twentieth session — noting that “it is the only global intergovernmental platform with universal membership that focuses on all forest-related issues”.
The Sustainable Biomass Program (SPB) published its Annual Review 2024, capturing a year of growth, strategic progress, and continued delivery as the biomass certification scheme of choice. With 2024 marking the second year of its current three-year strategy, SBP has consolidated its position in a rapidly evolving sustainability landscape, while laying firm foundations for the years ahead. “2024 outcomes reflect a busy and productive year for SBP. We saw significant growth in certified biomass volumes and certificate holder numbers, but equally important we took proactive steps to define our contribution to global challenges, from carbon and climate to regulatory compliance and sustainability governance. With growth comes an increased responsibility to ensure that assurance and oversight of compliance are rigorously maintained,”stated Carsten Huljus, CEO of SBP.
A UK government spending watchdog has questioned the value of the multibillion pound subsidies granted to the Drax power plant in North Yorkshire – and said plans to hand over billions more may not represent value for money. The government has provided about £22bn of public money to businesses and households that burn biomass pellets as fuel over the past three years, including £6.5bn for the owner of the Drax plant. The power plant, which generates about 5% of the UK’s electricity, is expected receive more than £10bn in renewable energy subsidies between 2015 and the end of 2026 – despite ongoing concerns that wood pellets are not always sustainably sourced. The Public Accounts Committee has said that biomass generators have been left to “mark their own homework” when it comes to proving that their fuel met the sustainability standards set by the subsidy scheme.
Israel asked Greece, Bulgaria, Cyprus, Italy and Croatia to help extinguish major wildfires that broke out Wednesday morning in several locations near Jerusalem and along Highway 1 leading to the city as communities along the road were instructed to evacuate. At least one man suspected of involvement in igniting the fires was arrested, according to Israeli broadcaster Kan, which reported that the suspect is now detained at the Oz police station in east Jerusalem. Israel police did not confirm or give any details on what started the fires. …Foreign Minister Gideon Saar asked his counterparts in the four countries to send firefighting airplanes and helicopters to Israel, including supertankers. Ynet reported that Greece and Italy are sending supertankers and that the Palestinian Authority offered to send firefighters, though Israel has not yet responded to the offer. International aid is expected to arrive Thursday morning.