Confirmation of Michael Boren to lead the US Forest Service is underway in the US Senate. In other Business new: Lumber Liquidators are back in business; West Fraser renewed its credit agreement; International Paper is considering a new packaging facility in Salt Lake City, Utah; KPMG purchased the assets of BC forest tech firm LlamaZoo; US home prices rose but tariffs will hinder construction; and Rayonier touts the benefits of mass timber construction.
In Forestry/Wildfire news: First Nations urge Quebec to scrap its forestry reform bill; the BC government and First Nations kick-off land-use planning in the northwest; logging is debated in Pennsylvania and Montana; US senators introduce bill to reduce wildfire risk with carbon removal; a new study says boreal wildfires will slow global warming; and wildfire updates from Saskatchewan; and the BC/Alberta border.
Finally, Europe’s largest floating housing development will include prefabricated CLT homes.
Kelly McCloskey, Editor
International Pulp Week 2025 opened in Vancouver with a note of celebration and reflection as delegates marked the event’s 20th anniversary. “After decades of being in Montreal in January… we decided to move the event to Vancouver and into the spring and summer months,” said Tim Brown, Vice-President at Numera Analytics. 
Jonathan Rhone, CEO of CO280, began by stating that “capturing and permanently sequestering biogenic CO₂ from boiler stack emissions represents a $100 billion per year market opportunity for the global pulp and paper sector.” The market, he said, is being created by global technology and financial firms—“Microsoft, JPMorgan, Google”—that are purchasing high-durability carbon dioxide removals (CDRs) to meet their net zero obligations.
…Parker Budding, representing Osapiens, followed with a presentation on how pulp producers can prepare for the EU Deforestation Regulation (EUDR), which comes into force on December 31, 2025. The regulation prohibits companies from placing products on the EU market unless they can prove the goods are deforestation-free and legally produced.
…Mikko Antsalo began by stating, “Softwood pulp markets are projected to remain well-balanced,” citing steady demand growth and the absence of new capacity announcements as stabilizing factors. He concluded by reinforcing Metsä Fibre’s preparedness for the future: “We offer customers an optimized supply chain, fossil-free production, and are well positioned to fulfill upcoming sustainability requirements.” 
VANCOUVER, BC — 
One of Canada’s lumber producers, Groupe Rémabec, will temporarily lay off most of its workers as the industry faces rising US duties and weakening demand. The manufacturing division, Arbec Forest Products, is shutting down indefinitely, leading to more than 1,000 immediate job cuts. The number may reach 1,400 in the coming weeks, according to a company statement that blamed “persistent imbalances in both access to the resource and international markets.” Groupe Rémabec employs about 2,000 people and is headquartered in La Tuque, Quebec, about 300 kilometers north of Montreal. President Trump’s administration is poised to more than double the duties on Canadian softwood lumber. …Rémabec said, with Arbec’s deposits representing an “astronomical amount.” …Rémabec also said a “feeling of exasperation is widespread” in the Quebec forestry industry over regulations that have created “an increasingly unstable ecosystem, without predictability or coherence.” The Quebec government has been trying to modernize its forestry legislation.
While the pulp and paper industry is inherently local—particularly in terms of production and sourcing of raw materials—trade is fundamentally cross-border and international. As a result, the sector is highly exposed to trade barriers and tensions, such as those created by the tariff policies introduced during the Trump administration. Tariffs are expected to put significant pressure on transportation and logistics—sectors that are intrinsically linked to the pulp and paper industry. This strain is partly mitigated by the fact that many pulp and paper companies have made substantial investments in overseas production capacity. Recent mergers in the industry, such as the Smurfit Kappa–WestRock merger and the International Paper–DS Smith merger, are also likely to offset some of the negative impacts of tariffs. These newly formed giants now operate production facilities in both Europe and the US. …This consolidation trend may render the pulp and paper industry more resilient. 
KINGSPORT, Tennessee — It could be the third or fourth quarter of 2026 before an anaerobic digester is completed to help with odor mitigation at the Kingsport mill, Domtar officials shared Tuesday. Charlie Floyd, VP of strategic capital projects for Domtar, and Bonnie Depew, environmental manager at Domtar’s Kingsport mill, presented updates about Project Bandit to the Kingsport Economic Development Board. Floyd said the biggest holdup is waiting on permits from the Tennessee Department of Environment and Conservation. TDEC has already asked for two extensions to review the permit application, state records show. …His hope is for the permit to be in the hands of Domtar by the end of the month. Over 80% of the equipment for the anaerobic digester has been purchased, according to Floyd. …At the height of construction, Floyd said there will be around 150 contractors on site to help build the digester and associated equipment.
New Zealand exporters sending wood, beef and leather products to the European Union will soon have to comply with new rules that aim to reduce deforestation in the supply chain. New Zealand government officials and industry opposed the approach to anti-deforestation taken by the incoming European Union Deforestation Regulation (EUDR). This was due to increased compliance costs exporters would face in proving their products had not contributed to the loss of trees. …For New Zealand, this will affect the $213 million export trade. Exporters of wood products – a trade to Europe valued at around $100 million – would be required to provide traceability processes to show that their products did not contribute to deforestation, too. …The Wood Processors and Manufacturers’ Association’s Mark Ross, said a working group with forest growers, wood processors, and the Government had been set up to work through some issues, such as geolocation requirements.
The Bank of Canada today maintained its target for the overnight rate at 2.75%, with the Bank Rate at 3% and the deposit rate at 2.70%. Since the April Monetary Policy Report, the US administration has continued to increase and decrease various tariffs. China and the US have stepped back from extremely high tariffs and bilateral trade negotiations have begun with a number of countries. However, the outcomes of these negotiations are highly uncertain, tariff rates are well above their levels at the beginning of 2025, and new trade actions are still being threatened. Uncertainty remains high. While the global economy has shown resilience in recent months, this partly reflects a temporary surge in activity to get ahead of tariffs. …In Canada, economic growth in the first quarter came in at 2.2%. …CPI inflation eased to 1.7% in April. …Excluding taxes, inflation rose 2.3% in April.
There has been a lot of news recently on higher tariffs between the U.S. and its trading partners, including Canada and Mexico. One concern that is top of mind for many LBM dealers is how these new tariffs will affect lumber and other materials sold at yards and stores across the country. How concerned should I be and what action, if any, can I take to protect my business? Responses from lumberyards, full-line building material dealers, and specialty dealers/distributors:
Uncertainty regarding tariffs continues to challenge companies across industries. It’s a common theme in every conversation I’ve had with fellow business owners lately: How do we plan, price or grow when the rules are constantly shifting? In our case, the lumber industry got a temporary break—framing lumber from Canada, which makes up over 30% of the US market, was exempt from the original tariffs. That’s good news for now, especially for residential construction. But there’s still no clarity on imports from other key countries like Brazil and China, where tariffs remain in full effect. That could have a serious impact on specialty products like Ipe and hardwood veneers. Other building materials—fasteners, finishes, flooring, and more—are also caught in the middle. …That cost will be passed on to the end user. Businesses like ours don’t have the luxury of absorbing increased costs indefinitely. If we did, we’d be out of business.
Lumber is in the spotlight as the National Association of Home Builders (NAHB) and the US Lumber Coalition disagree over what’s behind the U.S. housing market slump. The NAHB has pointed to tariff uncertainty and lumber prices as being partly responsible. The US’s current anti-dumping and anti-subsidy duty on imported Canadian softwood lumber stands at 14.5%. It could potentially climb later in the year to nearly 35%. “I share President Trump’s desire to create fair and balanced trade across our borders, certainly would bring back as much production as we can,” NAHB CEO Jim Tobin said. “But until we do that, and it will take years and millions of dollars of investment, we need to make sure that we have a reliable, affordable source of lumber.” …The US Lumber Coalition has also been critical of Canada, saying that “ongoing unfair trade practices” by its lumber industry have been “extremely harmful to US lumber producers.”
Economic growth forecasts for the US and globally were cut further by the Organisation for Economic Co-operation and Development (OEDC) as President Trump’s tariff turmoil weighs on expectations. The US growth outlook was downwardly revised to just 1.6% this year and 1.5% in 2026. In March, the OECD was still expecting a 2.2% expansion in 2025. The fallout from Trump’s tariff policy, elevated economic policy uncertainty, a slowdown of net immigration and a smaller federal workforce were cited as reasons for the latest downgrade. Global growth, meanwhile, is also expected to be lower than previously forecast, with the OECD saying that “the slowdown is concentrated in the United States, Canada and Mexico”. “Global GDP growth is projected to slow from 3.3% in 2024 to 2.9% this year and in 2026. It had previously forecast global growth of 3.1% this year and 3% in 2026. …The OECD adjusted its inflation forecast, saying “higher trade costs will also push up inflation.”
US market conditions have been lackluster since the Trump tariffs on Canadian lumber were postponed for the second time in early April. …The proposed 25% tariffs were the catalyst for SPF prices rising in the first two months of 2025. …Today, this puts BC Interior SPF mills back near break-even levels at current lumber prices and 14.4% duties with other Canadian regions looking to be marginally profitable. With tariffs in suspension mode, the US market fundamentals have now been exposed – the market is weak and remain weak – and there is too much supply – again! ….The silliness of the Trump administration’s irrational rhetoric as well as biased trade policies will only result in raising all lumber prices to the US home builder, the renovation contractor, and the consumer. How much of the tariffs (or Canadian duties) are passed on to the consumer is the only wild card, but it will likely be the majority.
Mass timber continues to gain traction in the United States for its sustainability, strength and aesthetic appeal. …In just the last four years, Texas saw a 168% increase in the amount of mass timber projects either in design, construction or completed. As mass timber developments in Texas increase in popularity, owners and contractors face a critical decision: whether to source the material domestically or internationally. The decision isn’t as simple as price — although it is a big factor. There are other points to consider when selecting your mass timber provider. …With threats of tariffs and rising material costs, builders might feel inclined to source mass timber from domestic providers. According to Forisk, an industry research and consulting firm, there are 38 mass timber production facilities across the United States and Canada —24 of which can produce cross-laminated timber (CLT). Nearly 51% of those facilities are located in the Northwest region of the United States.
The BC government spent a decade killing wolves to protect caribou. Now, critics warn that despite questions about its effectiveness, ethics and impact on the rest of the environment, the government is moving to make the wolf cull a permanent part of its strategy. Launched as a short-term emergency measure in 2015, the decade-long wolf cull is a morally outrageous tactic to divert public attention from the root cause of caribou declines — the province’s failure to significantly address habitat destruction — said Pacific Wild co-founder Ian McAllister. …The future for caribou and wolves is looking even more dire given the federal and provincial plans to fast-track permitting and reduce environmental assessments for development, McAllister said. …The province is looking to make its “short-term emergency” measure of shooting wolves to protect caribou a permanent practice in lieu of protecting habitat, critics warn.
MAINE, USA — A law signed by Gov. Janet Mills last week requires landowners who are participating in the forest carbon credit market to report basic data — including a landowner’s name, contact information, date of enrollment and total enrolled acreage — to the state on an annual basis, information the state will use to create a database and track the impact of carbon credits on Maine’s forests. “We need to understand how Maine woodland owners are participating in the emerging forest carbon market, given both Maine’s forest-based economy and its climate change initiatives,” said Morten Moesswilde, the division director of Forest Policy and Management for the Department of Agriculture, Conservation and Forestry, in a work session on the legislation in February. …The law was supported by conservation organizations as well as the Maine Forest Products Council and several woodlot owners, who stressed the importance of understanding an emerging market.
This study investigates the role of Forest Stewardship Council (FSC) certification in advancing sustainable forest management and influencing forest cover changes across 70 countries from 2000 to 2021. Using dynamic panel data model and Generalized Method of Moments (GMM) estimations, the analysis addresses endogeneity concerns, such as those stemming from lagged dependent variables, providing robust and unbiased estimates. Results indicate that FSC certification significantly enhances forest cover, with the most pronounced effects observed in low- and middle-income countries. Additionally, the study explores how FSC certification interacts with income levels and climatic conditions, revealing region-specific variations in its effects. These findings highlight the importance of market-based conservation tools, such as FSC certification, which align economic incentives with sustainability objectives. The analysis provides practical insights, recommending the integration of FSC certification into responsible trade practices and the development of regionally tailored forest management strategies to maximize conservation outcomes.
Climate change has put Western Canada’s glaciers on track for devastating loss over the coming decades, with the southern half of BC expected to lose nearly 75% of the alpine ice — even if warming stops today, a new study has found. The planet has so far warmed an average of about 1.2 degrees Celsius above pre-industrial temperatures. If that increase climbs to 1.5 degrees C, 81% of Western Canadian and US glacier mass would melt, according to the study published Thursday in the journal Science. …Harry Zekollari, the study’s lead author and a glaciologist at Belgium’s Vrije Universiteit Brussel, said the international research team used eight glacier computer models to analyze the potential long-term evolution of the year-round ice. The results painted a dire picture for the world’s glaciers, as the planet has already locked in enough warming to melt 40% of the Earth’s year-round ice by the end of the century.
Even if conversations are dominated by electrification, Toyota is working on a different course to keep combustion engines relevant. A recent Nikkei Asia report reveals that Japanese automakers led by Toyota have opened a bioethanol facility in Fukushima, aiming to slash the carbon footprint of conventional engines with a new kind of “better biofuel”. …What sets this project apart is its focus on second-generation biofuels: non-edible plants and agricultural waste serve as the feedstock, rather than food crops like corn or sugarcane. By avoiding feedstocks that compete with food supply, Toyota’s program addresses a key criticism of traditional biofuels. …The choice of Fukushima for the facility is symbolic. The site reuses land in an area devastated by the 2011 nuclear disaster, turning “disaster zones” into productive, green-energy facilities. In doing so, Toyota’s project ties regional recovery to climate innovation. …Feedstock: Uses non-food biomass (e.g. wood chips, rice straw, plant waste) instead of edible crops.
FLIN FLON, Manitoba — More than 25,000 residents in three provinces have been evacuated as dozens of wildfires remained active Sunday and diminished air quality in parts of Canada and the US, according to officials. Most of the evacuated residents were from Manitoba, which declared a state of emergency last week. About 17,000 people there were evacuated by Saturday along with 1,300 in Alberta. About 8,000 people in Saskatchewan had been relocated as leaders there warned the number could climb. Smoke was worsening air quality and reducing visibility in Canada and into some US states along the border. “Air quality and visibility due to wildfire smoke can fluctuate over short distances and can vary considerably from hour to hour,” Saskatchewan’s Public Safety Agency warned Sunday. “As smoke levels increase, health risks increase.” …In some parts of the U.S., air quality reached “unhealthy” levels Sunday in North Dakota and small swaths of Montana, Minnesota and South Dakota.
Saskatchewan is battling the worst wildfire it’s seen in decades — including the 300,000-hectare Shoe Fire in northern Saskatchewan — and experts say it’s largely caused by climate change. “This is classic climate change,” said Colin Laroque, head of soil science and professor at the University of Saskatchewan. Laroque said climatology is studied using 30-year timeframes of weather patterns, which “weren’t that different” until recently. …”These are things that we traditionally saw more in June, July and later summer, when everything dried out and then the fires took off,” Laroque said. Saskatchewan is making its way out of a relatively dry period. Few places had snow for long periods of time over winter. In the past, “snowpacks” would take time to fully melt and trickle into the ground as it warmed up. This would recharge the moisture of the soil.
FLIN FLON, Manitoba – Cooler temperatures and a chance of rain this week is expected in a northwestern Manitoba city that’s had to evacuate thousands of people due to wildfire. Environment Canada says temperatures in the mid teens to mid 20s are forecasted this week, with a good chance of rain coming Saturday in Flin Flon. Fire crews have been trying to keep a blaze near Flin Flon at bay, and have said the fire has been contained to outside its perimeter highway. Crews say there have been no structures lost due to the wildfire. More than 17,000 people have been displaced by wildfires in Manitoba, including 5,000 from Flin Flon. Thousands have been affected by wildfires across the Prairie provinces, with Saskatchewan issuing an evacuation alert Sunday morning for dozens of residents in the small northern community of Timber Bay, located about 260 kilometres northeast of Saskatoon. [END]
It’s not yet summer, but out-of-control wildfires are raging across Western Canada, fuelled by drought, warmer temperatures and lack of rainfall. Residents in northeastern BC, near Kelly Lake, have fled their homes, as Manitoba and Saskatchewan declared provincial emergencies this week. As of Friday, wildfires in Manitoba had displaced more than 17,000 people. Thousands more have been given evacuation orders because of wildfires in Saskatchewan and Alberta, including 1,300 residents of Swan Hills, a community northwest of Edmonton. …“We did see similar early-season activity like this in the far northeast in 2023 and in 2024 in BC,” said Budd. “That’s really the result of prolonged drought in the region that goes back as early as 2022.” …Manitoba is also facing a dire situation. The Flin Flon fire, located on the Manitoba-Saskatchewan border near Creighton, started at a landfill before crossing over the Manitoba border. It has grown to more than 200 square kilometres.
The wildfire season in Nova Scotia has been off to a “slow” start, according to the manager of forest protection with the province’s natural resources department. Scott Tingely told CBC News that so far, the number of fires and the amount of hectares burned are both below average at this point. “We had a pretty cool, wet spring so far, so that has certainly helped kind of mitigate the conditions and the risk,” Tingley said. As of Thursday, 39 fires have burned about 35 hectares across the province so far. …The wildfire situation in Nova Scotia has changed rapidly over the last week, according to data from Natural Resources Canada. On Tuesday, the department listed the fire danger across most of the province as low. And as of Thursday, that classification was raised to high for the bulk of the mainland and Cape Breton.
Ontario’s Ministry of Natural Resources (MNR) continues to monitor wildfires across the province, with varying conditions in the northeast and northwest regions. While some fires have been brought under control, others remain active, prompting ongoing suppression efforts and precautionary measures. The northeast region reports two active wildfires, with one recently contained. Sudbury 13, a 0.5-hectare fire near Wikwemikong that was identified on Saturday, was declared out Sunday morning. Cochrane 2, an 8-hectare fire northwest of Attawapiskat, is now under control. Cochrane 3, burning 48 kilometres west of Attawapiskat, remains not under control at 150 hectares. Though the MNR confirms no immediate threats to communities or infrastructure at this time. The northwest region remains a focal point, with 15 active fires and persistent high-risk conditions.