Canada’s managed forest is one of the largest living reservoirs of carbon on the planet. For centuries it slowly filled, as billions of growing trees pulled carbon dioxide (CO2) from the air and stored it away in their wood. This ancient, continent-spanning “carbon sink” now locks away more than 100 billion tonnes of CO2, helping keep the climate calm and cool. But the flow of CO2 has completely reversed in the last couple of decades. What started as a trickle has turned into a growing flood of CO2. And that flood surged right off the charts in both 2023 and 2024. The amount of Canadian forest carbon pouring into the atmosphere now dwarfs the fossil fuel emissions of most nations. And this crisis is accelerating. That’s the sobering story told by Canada’s recently released National Inventory Report (NIR) which covers our nation’s managed forest carbon from 1990 through 2024.
The Drax power plant in North Yorkshire received record subsidies of almost £1bn for burning trees to generate electricity in 2025, a climate thinktank has calculated. The company was paid £999m last year for generating about 4.5% of Great Britain’s electricity from its biomass plant, costing each household £13 a year, according to analysts at Ember. The power plant was able to claim £2.7m a day from energy bills in part by increasing its power generation by about 2% from the year before – but mostly due to the rising payouts from a legacy renewables support scheme. …The Guardian revealed last November that forestry experts believed the company was burning 250-year-old trees sourced from some of Canada’s oldest forests as recently as last summer. …The government has already halved the subsidies available to Drax. …Drax will have to switch to using woody biomass from 100% sustainable sources, up from the current level of 70%. 
For more than a decade scientists have documented how Antarctic sea ice has been retreating because of human-caused climate change. Now a team of Canadian and Chilean scientists is returning to Punta Arenas, Chile from a 14-day expedition on an icebreaker with data that will contribute to understanding how the continent’s ice, oceans and ecosystems are changing and how much glacier melt is accelerating. …Understanding climate change in Antarctica is important because it holds about 90 per cent of the world’s glacier ice, so what happens here will have major effects on the rest of the world, said B.C. scientist Thomas James. He’s the chief scientist of the expedition with the Geological Survey of Canada. …With this data, scientists can begin to understand how much human-caused global warming is changing the environment over time.
With the April 1, 2026, deadline for the Alberta-Ottawa memorandum of understanding fast approaching, leading climate policy experts are calling on Prime Minister Mark Carney to restore the strength and integrity of Canada’s industrial carbon pricing system to increase competitiveness and reduce greenhouse gas emissions. The 
A key plank of Canadian Prime Minister Carney’s climate plan will likely miss its target implementation date, industry sources said, raising new doubts about Canada meeting its environmental goals in the face of higher oil prices and uncertain US trade policy. Carney, a former UN climate envoy, committed last fall to negotiating a stronger industrial carbon pricing policy with Alberta by April 1. He is counting on a strengthened pollution pricing scheme to keep Canada’s emission reduction targets on track after rolling back many of his predecessor Trudeau’s climate policies to restore friendlier relations with the oil-and-gas producing province and prioritize economic growth. Two industry sources say these negotiations have been challenging, and that no deal will be struck by the April 1 deadline because large oil sands companies are pushing back on parts of the federal proposal. …Natural Resources Minister Tim Hodgson has acknowledged there may be a slight delay.
Wekweètì’s senior administrative officer is hoping to get a few million dollars from both the territorial and federal governments to support a biomass district heating project in the community. Fred Behrens said he recently found opportunities to apply for money from the territorial government’s GHG Grant Program and the federal government’s Build Communities Strong Fund for the project. It involves setting up a heat plant across from the community government office in Wekweètì, which is 200 kilometres north of Yellowknife and home to about 100 people. The space will store wood chips and contain three 300-kilowatt biomass boilers that’ll pump heat to 44 homes and 11 institutional buildings through a network of underground pipes. Behrens said the system would be fueled using material gathered from forest thinning and wildfire prevention work around the community. The boilers would also be connected to the community’s diesel generators, using their exhaust as a source of heat too. 
A company building two of Canada’s largest wood pellet mills says it will rely on a steady diet of trees logged in forests recently burned by wildfires. Roughly five million trees will have to come down each year to feed the two northern Alberta mills, which Powerwood Canada Corp. plans to build near the communities of La Crête and High Level. The company claims that wildfires create nightmarish landscapes and that logging such forests as fast as possible is key to restoring their health. But scientists counter that burned forests are important for biodiversity and that aggressively logging them spells disaster for plants and animals that rely on burned landscapes to flourish. Powerwood CEO David Peters said that in addition to northern Alberta the company is eyeing other “brownfield” logging opportunities in British Columbia and in Eastern Canada due to the significant number of wildfires in recent years.
A European energy giant Octopus Energy Generation Ltd. will spend as much as $6 billion to build and operate a renewable energy park in Nova Scotia. Octopus plans to use biomass …from forest-based industries to produce sustainable aviation fuel (SAF) it will sell to European customers. The processing for Nova Sustainable Fuels, as the Canadian subsidiary is known, will be done at a to-be-constructed renewable energy park in Goldboro, N.S. The site, estimated to cost between $4 billion and $6 billion, is expected to take about three years to build and have a 50-year lifespan. …With airlines seeking to decarbonize, the World Economic Forum reported in 2025 that the global demand for SAF is projected to grow exponentially, reaching 17 million tonnes annually by 2030. That represents four to five per cent of total jet fuel consumption. Parsons said the foundation of the project is based on supplying SAF to European markets.
Climate change is expected to alter the extent and severity of forest pest damage, with substantial economic and ecological consequences, but predicting future pest impacts is challenging. Here we use 20 years of data to assess how bioclimatic and biotic factors have influenced forest damage by 30 high-impact pest species and to identify ecological signals in those relationships. We found consistency in pest damage responses to maximum temperature in the warmest month, including recent average conditions and shifts from a historical baseline. Mean damage from focal pest species tends to be higher in regions with moderate maximum temperatures and in regions with faster rates of warming. In certain cases, the direction and magnitude of relationships between climate and forest damage vary by pest guild, native status and region of occurrence. Our findings provide empirical support for expectations of climate-induced stress to host trees and temperature-boosted pest performance, leading to increased pest damage in future forests.
Drax has extended its wood pellet shipping contract with Ultrabulk through March 2031, with a mechanism to reduce carbon emissions year on year from sea freight journeys, according to Drax. The agreement follows the first UK arrival of the M.V. Ultra Yorkshire, a Handymax carrier operated by Ultrabulk, which completed its first transatlantic voyage carrying over 29 thousand tonnes of biomass pellets from the Port of Greater Baton Rouge to the Port of Liverpool. The cargo is set for rail transport to Drax Power Station in Selby. …The company estimated the voyage produced around 90% less CO2 than standard maritime fuels such as VLSFO or ULSGO.
UK — Burning wood for power generation can be worse for the climate than burning gas, even when the resulting carbon dioxide emissions are captured and stored, 
For more than 30 years, the United Nations World Meteorological Organization has told us how terrible things are getting with global climate change. Their annual “State of the Climate” report is a compendium of climate change facts and figures collected throughout the previous 365 days. It’s an authoritative look at the state of our global climate and its increasingly precarious condition. …This year’s edition, covering 2025, is out today. The findings are stark, even frightening. But, like every year, it also feels like a bit of a rehash. …The fact that the past 11 years were the hottest on record? Yawn. The announcement that greenhouse gases in the air are at unprecedented levels for all of human history? Wake me when you’ve got something new to report. …The findings should be jarring reminders of planetary vital signs flashing red. But similar observations were made last year … and the year before that.
WASHINGTON — The Carbon Business Council announced the launch of the Direct Storage of Biomass (DSB) Coalition, a new industry working group bringing together leading companies to advance understanding, credibility, and responsible deployment of direct biomass storage as a carbon dioxide removal (CDR) pathway. Direct storage of biomass, also referred to as terrestrial storage of biomass, involves durably storing organic material such as waste wood from forests, agricultural residues like corn stover, biochar, or other plant and biological matter. Storing these organic residues allow the carbon previously absorbed by the biomass to be durably locked out of the active carbon cycle. The biomass can be safely buried, stored deep underground in sealed reservoirs, wells or other containers. DSB can deliver durable atmospheric carbon removal while leveraging existing forestry, agricultural, and biomass-handling infrastructure. …The DSB Coalition is part of the Carbon Business Council’s broader initiative to scale carbon removal across air, land, rock, and water. 
President Trump has invited farmers and biofuels producers to the White House for a big event next week as the industry awaits the government’s announcement on mandates for the fuel additives. The “celebration of agriculture” event is scheduled for March 27. The invitation said: “Later this month, following National Agriculture Week, President Trump plans to host hundreds of farmers and ranchers from around the country on the South Lawn to shine a spotlight on the men and women growing our food, fiber, and fuel.” The US Environmental Protection Agency’s decision on biofuels is expected around the end of March. The renewable volume obligations, or RVOs, mandate how much biofuel, such as corn-based ethanol and biodiesel, must be blended into the nation’s fuel supply. Next week’s meeting could have an impact on the markets amid speculation on the RVO decision coming later this month.
SEATTLE — Mast Reforestation today announced that less than six weeks after issuance, it has sold 100% of the 4,277 biomass burial carbon removal credits from Mast Wood Preserve MT1, its pioneering post-wildfire restoration project in southern Montana. New buyers include Bain & Company, a global management consulting firm, and BMO, a North American financial institution, joining earlier participants including Royal Bank of Canada (RBC), CNaught, a major corporate buyer advised by SE Advisory Services, Muir AI, and others. The sell-out follows MT1’s January 2026 issuance under the Puro.earth registry, which represented the largest issuance to date under Puro.earth’s Terrestrial Storage of Biomass (TSB) methodology and one of the fastest project development timelines globally for a carbon removal project, at just nine months. “High-integrity carbon removal is an important part of Bain’s strategy to address residual emissions while helping scale the climate solutions the world needs,” said Sam Israelit, Partner and Chief Sustainability Officer, Bain & Company.
HAYWARD, Wis. – A new refinery planned for Hayward will convert wood into sustainable aviation fuel, using waste wood, such as scrap wood or invasive species. Hayward companies FutureWood and Johnson Timber Corporation will source and process the wood, while Synthec Fuels will handle the fuel refining process. President of FutureWood DJ Aderman says the facility will harness products not currently utilized in the forestry industry. “What’s really cool about this is we’re gonna use a lot of mill residuals. We’re gonna use a lot of products that we’re not currently using right now, unmerchable tops, species that have no or little value,” said Aderman. Last week, Wisconsin Gov. Tony Evers signed the Forestry Revitalization Act, which approved up to $120 million in tax credits for the $1.7 billion project. The legislation aims to bolster the forestry industry, which has seen major downturns due to mill closures in recent years.
LOUISIANA — Legislation to expand wood pellet manufacturing in Louisiana is gaining traction despite concerns over the industry’s connection to underground carbon storage, which has attracted a growing number of critics among state lawmakers. Louisiana is a burgeoning producer of wood pellets, which have been branded as a sustainable alternative to coal for generating electricity in overseas markets. As of 2023, mills in the South produced about 85% of the America’s wood pellet exports, according to the U.S. Department of Agriculture. Reps. Chuck Owen, R-Rosepine, and Rodney Schamerhorn, R-Hornbeck, are carrying the proposed Louisiana Wood Pellet Manufacturing Strengthening Act. It directs the Louisiana Economic Development agency to promote the expansion of the industry throughout the state. …Legislators who have become hostile to carbon dioxide sequestration projects in their local districts openly disagree with economic development officials on whether the wood pellet industry even needs to store the CO2 they generate.
EUROPE — The war in the Middle East has – among many other unintended but avoidable consequences – put renewed pressure on the European Union to water down its carbon pricing policy. The focus right now is on the existing Emissions Trading System (ETS), but it’s not too soon to be concerned about the fate of its upcoming sequel, known as ETS2. ETS2 is the most consequential climate policy most Europeans (much less the rest of the world) have never heard of. Whereas the existing ETS puts a price on the carbon pollution caused by major industries such as power generation, steel, shipping, aviation and cement, ETS2 does the same for fossil fuels used for land transport and to heat buildings. As such it will impact as much as 40% of the EU’s total emissions – and the living costs of 450 million Europeans. The clock is ticking. ETS2 is scheduled to come into effect in 2028.
The EU’s General Court has rejected a legal challenge aimed at reversing the European Commission’s decision to categorize forest biomass energy as a sustainable investment within the bloc’s green finance framework. The court’s decision, issued on 18 March 2026 dismissed an attempt to annul a Commission ruling from July 2022, which had turned down a request for an internal review of Delegated Regulation (EU) 2021/2139. This regulation set the technical criteria for determining which forestry management and bioenergy practices can be regarded as environmentally sustainable. The plaintiffs, including Robin Wood and six other environmental NGOs, contended that the Commission’s designation of forestry and forest bioenergy as sustainable was illegal and violated EU legislation, particularly the Taxonomy Regulation. These rulings affirm that the Commission possesses significant discretion in establishing and implementing the taxonomy’s technical criteria, allowing politically sensitive sectors like bioenergy.
In the fight against the climate crisis, countries are pinning great hope in reforestation projects. In a new study, ETH Zurich researchers show that the location in which reforestation is taking place is usually more important than the number of trees planted. If forests are strategically positioned, the same cooling effect could be achieved using half the area of land. Climate researchers at ETH Zurich show where planting trees makes the most sense with a view to achieving the greatest possible cooling effect on the climate. Reforestation in tropical regions has the greatest cooling effect. Tree planting in the northern hemisphere, on the other hand, reduces the reflection of sunlight and has no effect or even contributes to global warming. The cooling effect on the climate will be a maximum of 0.25°C by 2100. This contribution is important, but it cannot replace the urgently required reduction in greenhouse gas emissions. 