Kevin Mason
In looking across the entire forest products space this year, it is abundantly clear that demand is weak across all segments. There is no expectation of an improvement in 2025 as consumption remains poor and restocking efforts are expected to be limited. As such, any hopes of better supply/demand dynamics are going to come down to supply discipline (slowbacks/downtime/closures). We have some thoughts about how this might play out in the various sectors: Timber and Timberland—Timber harvest guidance will naturally follow wood products demand. Finding a home for pulpwood has been problematic for several years and will only become more difficult amid ongoing downstream capacity shuts. New demand is possible over time, but nothing is expected in the near-term.
Solid Wood—A raft of capacity closures in both Canada and the US had brought the lumber market into better balance to begin 2025. However, with demand weakening further through the first half of 20025 (and given a bleak medium-term outlook), further capacity rationalization will be required to restore balance and lift prices (Canada will be the focus, but the US could also see shuts). In OSB, prices are already at cash- cost levels, demand could slip further in the coming months, and new greenfield capacity is slated for late ’25 and early ’26. Accordingly, closures/downtime are sorely needed. For both lumber and OSB, producers may be awaiting the outcome of the Section 232 investigation before making major changes to operations.
Is Brazil playing fair when it comes to trade? An investigation launched July 15 by the Office of the United States Trade Representative (USTR) aims to find the answer. The Section 301 investigation will seek to determine whether acts, policies, and practices of the Government of Brazil related to a host of trade issues — including ethanol market access and forestry practices — are “unreasonable or discriminatory and burden or restrict U.S. commerce.” “Brazil has walked away from its willingness to provide virtually duty-free treatment for U.S. ethanol and instead now applies a substantially higher tariff on U.S. ethanol exports,” the USTR office wrote in announcing the investigation. The announcement also said Brazil appears to be failing to effectively enforce laws and regulations designed to stop illegal deforestation — which undermines the competitiveness of U.S. producers of timber and ag products.
Investigators at UK-based non-profit, Earthsight, have uncovered a booming trade in illegal Russian timber stretching throughout Europe and breaching war sanctions. The investigation ‘
The Albanese Labor Government released a 
President Trump announced his team struck a trade deal with Indonesia on Tuesday and said details would be forthcoming. …The announcement comes after Trump unveiled a new batch of letters to over 20 trade partners outlining tariffs on goods imported from their countries beginning in August. The letters set new baseline tariff levels at 20% to 40% — except for a 50% levy on goods from Brazil. …Trump has also escalated tariff tensions with Canada, Mexico, and the European Union recently. On Thursday, Trump announced a 35% tariff on Canadian goods and followed that up with promises of 30% duties on Mexico and the EU. The EU has been preparing options for a trade deal, while also preparing an extensive list of counter-tariffs that would affect 72 billion euros ($84 billion USD) of American products should talks fail. “There will be a huge impact on trade,” the EU’s chief negotiator said Monday.
UK softwood traders enjoyed a period of strong trading through the first two months of Q2, supported by a rise in demand gaining momentum through both April and May. This followed on from a stable Q1 when imports increased by just under 2% against the same period in 2024. Since the beginning of this year, a number of Nordic producers were short of spruce logs for structural grades, and in many cases switched to pine. That move had a knock-on effect on the amount of redwood available for production at some mills. With good demand and some shortages, Q2 prices moved upwards, not only to the UK but other markets in Europe and the US as well. However, the UK merchants adopted a more sceptical and cautious approach. Many held back from making longer-term commitments on the forward market to ensure the recovery and stability in the market was sustainable.
Timber and forestry investment is gaining ground in Europe, as private equity increasingly shifts towards climate-aligned strategies. A recent EY report highlights growing momentum behind timber and forestry funds, previously seen as niche, now positioned as core components of sustainability-focused portfolios. Despite global private equity fundraising falling to $680 billion in 2024, the lowest since 2015, investors are favouring fewer, larger deals. Europe is leading in sustainable asset allocation, with over half of all new fund launches in Article 8 and 9 categories under the EU Sustainable Finance Disclosure Regulation, according to Morningstar. Timber and forestry funds attracted $8.4 billion in 2024, slightly down from 2023 but above the five-year average. These funds often deliver double-digit internal rates of return, with top-performing vintages exceeding 16 percent.
GALWAY, Ireland — Minister of State with responsibility for Forestry, Michael Healy-Rae, announced a new report “
Russia’s timber industry is warning of widespread production shutdowns as the sector reels from Western sanctions, declining demand and a surging ruble that has battered the country’s export competitiveness. …The Russian Association of Organizations and Enterprises of the Pulp and Paper Industry described the current moment as one of the industry’s most difficult periods in modern history. Industry data show that timber harvesting fell 13% in 2024 compared with pre-war levels in 2021, lumber production dropped 11% and plywood output declined 23%. Even pulp production, one of the sector’s more stable outputs, decreased by 3%. Major industry players including Segezha Group and ULK Group have been restructuring loans over the past two years in response to falling output, sliding prices and soaring costs. But the situation has continued to deteriorate, especially within the export-heavy pulp and paper sector. Compounding the problem is the Central Bank’s steep 20% key interest rate along with a hike in the profit tax rate from 20% to 25%.
BRUSSELS – Wildfires have scorched hotspots in several Mediterranean countries this month, with blazes forcing thousands of people into lockdown in Catalonia in Spain, and encroaching on France’s second-biggest city of Marseille. …European wildfires have burnt 227,000 hectares of land since the beginning of the year – more than double the average for this time of year over the past two decades, according to the EU’s European Forest Fire Information System. …It’s not yet clear if 2025 will be a record year, as that will depend on how the fire season evolves in the coming months. The number of fires in Europe has also surged this year so far, with 1,118 blazes detected as of July 8, versus 716 in the same period last year, EFFIS said. …Scientists say the Mediterranean region’s hotter, drier summers put it at high risk of wildfires. …Climate change exacerbates this risk , by creating hotter and drier background conditions.
The current glorious weather provides an opportunity for all to recreate and enjoy. However, such weather patterns give rise to extreme fire risk. Teagasc Forestry advisors tell us more on the nature of such risks and offer practical advice on mitigating forest fire danger threats. On July 10, 2025, the Department of Agriculture, Food and the Marine issued a 
Last year, more than 112 thousand hectares of dry forests were listed in the Estonian Natura 2000 habitats. These are forests with minimal anthropogenic load, and in Estonia they are overgrown dunes, old natural forests and spruce forests with rich ground cover. The Estonian Environmental Service, the University of Tartu and the Estonian University of Life Sciences are jointly developing a plan for the maintenance of dry forests. Taavi Tattar, Head of the Nature Conservation Planning Department of the Environmental Service, pointed out that dry forests are in poor condition both in Estonia and throughout Europe. “They’re either too uniform in age or have impoverished structure. Certain species need forests with diverse structures for their life and activities, coarse woody debris, dead trees, and so on. On a broader scale, diverse forests are also more resistant to disease and better able to adapt to climate change,” Tattar said.
A new paper published in 
Brazil once again leads the world in the loss of primary tropical forests. New data shows the country accounted for 42% of global primary rainforest loss in 2024, largely due to widespread fires throughout the nation and in neighboring Bolivia, Colombia and Peru. The 2024 spike in Amazon forest loss was due in large part to one of the worst fire seasons on record. But what’s often missed is the fact that recent fires in tropical primary forests are by no means a “natural” disaster. Rather, the conflagration represents a perfect storm of climate change-induced environmental conditions, governance failures and unchecked, organized criminality. Fires in the Amazon are largely started by arson and related criminal activity accompanying agriculture, logging, mining and road building. In fact, a recent survey of government data concluded that 91% of forest loss in the Brazilian Amazon is linked to illegal activity like land-clearing for agriculture and artisanal mining, often orchestrated by well-structured international criminal enterprises.
A new study in The Journal of Cleaner Production confirms that Forest Stewardship Council (FSC) certification contributes to maintaining and increasing forest cover, especially in lower-middle income countries. These findings reinforce the conclusions of previous research and provide insights on adapting regional certification strategies to increase sustainable forest management. The study investigated the critical role of FSC certification in promoting sustainable forest management and mitigating deforestation across diverse economic and climatic contexts. Using dynamic panel data model and Generalized Method of Moments estimations on 70 countries from 2000 – 2021, the researchers examined forest cover as a measure for impact of FSC certification. Results indicate that FSC certification contributes to maintaining and increasing forest cover across diverse economic and climatic contexts. This positive impact is most strongly observed in lower-middle income countries. Scaling up certification and integrating it into national policies could benefit countries of this economic category. 
Forestry Australia has welcomed the release of the Federal Government’s Timber Fibre Strategy, congratulating Minister Julie Collins and the Albanese Government for delivering a timely and important roadmap to support a sustainable, world-leading forest and wood products sector. 
The Ministry of Agriculture and Forestry has unveiled a broad package of measures aimed to boosting forest growth and pollution-absorbing carbon sinks. The moves will help Finland reach its goal of carbon neutrality by 2035, as required by law and stipulated in the government programme, ministry officials said on Friday. The agency is led by Minister of Agriculture and Forestry Sari Essayah, chair of the Christian Democrats. The government of Prime Minister Petteri Orpo (NCP) approved the financing of forest-related climate measures during its mid-term policy review session last spring and in its second supplementary budget of 2025. The measures include moves to step up fertilisation of forests and expansion of the forest cover in an effort to increase carbon sequestration, in other words woodlands’ capacity to absorb and store carbon from emissions that would otherwise contribute to global warming.
…In the aftermath of the earthquake and tsunami, Japan shut down not just Fukushima but all of its nuclear plants, a move that resulted in the loss of a third of its electrical power. …Japan faced a daunting energy crisis that it addressed… with conventional fuels such as natural gas and “bioproducts” including wood pellets derived from the logging of BC’s Interior forests. …Last year, roughly two million tonnes of those pellets arrived Japanese ports from BC, linked to a dozen mills in the province that make wood pellets derived from trees logged in the province’s rapidly dwindling primary forests — natural forests never previously subject to industrial logging. …Which means that in the name of creating allegedly clean energy, forests are being razed just to burn the wood. …The strain on the province’s stressed forests is [also] coming from other bioenergy producers, including those who want to use wood to make jet fuel.
Drax power station is once again the UK’s largest single source of carbon emissions, according to new analysis from think tank Ember. Emissions from the biomass-burning power plant rose to 13.3 million tonnes of CO2 in 2024, a 16% increase from the previous year. Drax biomass power plant has been the UK’s top emitter for the last 10 years running. Drax now emits more than the next four largest polluters combined and more than the six most emitting gas power plants combined. Emissions from the Drax power plant are equivalent to over 10% of the UK’s total transport emissions and nearly 3% of the country’s territorial total. Despite its emissions increase, Drax received around £2 million per day in subsidies in 2024, an average of £10 per household. The power station burned 7.6 million tonnes of wood, 99% of which was imported. Recent investigations have found instances of old growth forests being cut down for this purpose.
A Norwegian start up is showing how a little black powder could have a big impact on farming — from healthier livestock to stronger soils and a more climate-friendly future. Why it matters: The ongoing emphasis on reducing antibiotic use in livestock production and increasing soil health means farmers are looking for new tools to help them achieve this. Obiochar, based in rural Norway about 120 kilometres north of Oslo, is using a fully automated system to turn biomass – in this case dead trees from nearby forests that can’t be used by the lumber industry – into a powerful tool for agriculture. And while biochar itself isn’t new, Obiochar ‘s unique, dual-focused approach to using biochar is setting it apart from its competitors. The company is developing biochar products both for livestock gut health in the form of feed additives and soil enhancement as an amendment.
Companies around the world have poured hundreds of millions of dollars into conservation projects in Brazil designed to protect the Amazon rainforest in return for carbon credits offsetting their emissions. Reuters found that many of those projects are profiting people and businesses fined by Brazilian authorities for destroying the rainforest. Reporters analyzed 36 conservation projects in the Brazilian Amazon offering voluntary carbon offsets on the global market’s biggest registries. At least 24 of those involved landowners, developers or forestry firms that have been punished by Brazil’s environmental agency Ibama for their roles in illegal deforestation, Reuters found. The offenses ranged from clear-cutting the rainforest without authorization to transporting felled trees without valid permits and entering false information in a government timber tracking system. Government officials and experts said these infractions reflected the range of roles in the illicit timber trade devouring the rainforest.
Young forests regrowing from land where mature woodlands have been cut down have a key role to play in removing billions of tons of atmospheric carbon dioxide (CO2) and combating climate change, a new study reveals. …Forest regeneration offers a cost-effective method for carbon removal, but rates vary by location and forest age. Researchers have discovered that young secondary forests, particularly those aged between 20 and 40 years, exhibit the highest rates of carbon removal—locking away up to eight times more carbon per hectare than newly regenerating forests. …Their study reveals that if 800 million hectares of restorable forest begin regenerating in 2025, up to 20.3 billion metric tons of carbon could be removed by 2050, but delays sharply reduce this potential.
More than 15,000 residents of Marseille confined to their homes have been allowed out after a wildfire on the outskirts of France’s second city was brought under control, but officials have warned the country faces an exceptionally high-risk summer. Fanned by gale-force winds and kindled by parched vegetation, several fires have burned swathes of southern France in recent days, including Tuesday’s just north of the port city. The weather service has said the weeks ahead could be critical. “The fire is receding, but with a blaze this severe, over this big an area, it’s clear there may be fresh flare-ups, flames can jump, embers can reignite,” the prefect of the Bouches-du-Rhône department, Georges-François Leclerc, said on Wednesday.
Firefighters across Europe continue to battle forest fires amid blistering heatwaves, as blazes broke out in Germany, Greece and Turkey on Saturday. Hundreds of German firefighters have been battling blazes for days in the forested regions of Thuringia and Saxony, including the Gohrischheide nature reserve near the Brandenburg border. …Firefighters in Greece made progress in containing a wildfire that broke out on Friday afternoon in eastern Attica. …Strong winds and dry conditions have raised the risk of wildfires across Greece, prompting heightened vigilance by emergency services. In Turkey, firefighters have reportedly brought several large wildfires under control in the western Izmir province. …Ground crews, supported by planes and helicopters, worked around the clock for three days to contain the fires, according to the Turkish forestry directorate. …Turkey also reportedly sent two aircraft and 11 fire engines along with support vehicles to Syria on Saturday to help in the firefighting efforts there.