Ontario is investing $5M in support of a potential restart of the Espanola pulp mill, and $17M in four forest biomass projects. In related news: an Ontario packaging company touts its tariff-free supply chain; and Maine’s governor says her state is not the enemy. In other Business news: Western Forest Products is building an artificial marsh to filter mill runoff; Maine’s Woodland Pulp contests safety fines for toxic gas release; the first lawsuit is filed in Nippon’s Longview tank explosion; and France rejects Fibre Excellence nationalization proposal. Meanwhile: inflation risks rise in Canada; US residential spending weakens; and global lender caution is growing.
In Forestry/Climate news: Canada invests $68M in urban forestry; climate change and pests are reshaping North American forests; a Georgia study says rural views of forest bioenergy are shaped by politics; Oregon protestors push back on Roadless Rule repeal; and UBC researchers link clear-cut logging to increased flood risk in Oregon. Meanwhile: New Zealand members vote for unified FSC governance with Australia; and Australia’s Forestry Standard CEO steps down after 11 years.
Finally, the Canadian government is arguing in court that its climate law is unenforceable.
Kelly McCloskey, Tree Frog News Editor
A new chapter in the effort to better manage water around Western Forest Products’ Saltair sawmill is taking shape. The company is creating a new runoff filtering system designed to collect and control surface water from the mill and surrounding area before it can make its way beyond the site into Ladysmith Harbour. The rainwater and stormwater runoff interacting with fine woody materials and galvanized mill infrastructure will shortly all be directed into an almost natural setting. “We want to make sure all the rainwater runoff from our site is filtered and it’s going into the ocean clean,” said Tyler Fraser, production superintendent at the mill. “Prior to this project all the surface water went into the storm drains, which would then lead to an oil-water separator before the harbour.” …“We have an established constructed wetland up at Beaver Cove in Telegraph Cove that has worked perfectly,” said Ben Matthews, mill environmental regulatory manager for WFP.
CHAPLEAU — The Ontario government is building a strong and self-reliant economy by investing over $17.3 million in four projects that will modernize forest sector manufacturing, enhance the industry’s competitive advantage and strengthen forestry supply chains by using more mill by‑products and underused wood known as forest biomass. …This funding is part of the government’s plan to protect Ontario forestry workers in the face of recent U.S. tariff attacks by building a more resilient, innovative and diversified forest sector, ready to compete in global markets. …The Forest Sector Investment and Innovation Program and Forest Biomass Program investments will support four projects advancing the 
The ten largest softwood lumber import markets imported 16.6 million m3 in April-June 2026. Canada increased its share of U.S. softwood lumber imports by 6 pp, while Germany lost 3 pp of U.S. softwood lumber imports, according to Lesprom Analytics. The ten largest suppliers shipped 15.0 million m3 and held 90% of imports across the ten largest import markets. Canada gained 2 pp of Chinese softwood lumber imports. In the United Kingdom, Germany gained 4 pp and Finland lost 3 pp of U.K. softwood lumber imports. Russia shipped 474 thousand m3 less across the ten largest import markets, followed by Germany at 428 thousand m3 less and Austria at 370 thousand m3 less. In the first half of 2026, the ten largest import markets imported 34.7 million m3. Canada shipped 1.8 million m3 less and Russia shipped 1.2 million m3 less than in the first half of 2025.
Bank of Canada Governor Tiff Macklem says inflation risk is on the rise, with higher energy costs topping Canada’s incoming dollar-for-dollar tariffs on U.S. goods as the biggest potential driver of rising prices for consumers and businesses. Macklem’s remarks on Wednesday came after Canada’s central bank held its benchmark interest rate steady at 2.25 per cent, as widely expected by economists. The central bank lowered its policy rate to its current level in October of last year. This latest announcement marks seven consecutive times it has left its trend-setting policy rate unchanged. “The counter-tariffs, and indeed the U.S. tariffs … will add costs for some businesses,” Macklem told reporters in Ottawa. “These tariffs are very steep, but they are applied to a relatively narrow base.”The bigger issue, he said, is the war in the Middle East.
NEW YORK
National survey seeks input from farmers and private woodlot owners to improve forestry policy, rural economic development, and environmental stewardship across Canada. Private forests are a familiar part of many Canadian farms, providing firewood, timber, wildlife habitat, clean water, and environmental benefits that extend far beyond property lines. Yet despite their importance, very little current information exists about the people who own and manage them. Now, Canadian Forest Owners (CFO), in partnership with researchers at McGill University, has launched the first national survey of private forest owners in more than two decades, seeking input from farmers and woodlot owners across the country. The initiative is designed to create an updated picture of Canada’s private forest sector and help governments make more informed decisions on forestry, climate, biodiversity, and rural economic development. …Many Canadian farms include woodlots that generate income, supply wood products, protect watercourses, enhance biodiversity, and contribute to carbon storage.
If global emissions continue unchecked, rising temperatures and shifting rainfall patterns could amplify tree pests and diseases across more than 80 per cent of North American forests within decades, jeopardizing critical carbon sinks, air quality and the forestry economy. This is the key finding of a new UBC-led study published today in Nature Ecology & Evolution. The researchers found that insects pose the more immediate threat, with more than 60 per cent of the areas examined projected to experience 30 per cent more insect pressure by mid-century. Species like the spongy moth, already wreaking havoc in Canadian forests, could expand significantly in eastern North America by mid-century. “The forests that exist today aren’t going to be ones existing in 2040,” said senior author Dr. Jonathan Davies. “The process is happening already. I think we’ve got to put everything on the table because the status quo is no longer tenable.”
Patrick Tom has been helping a crew plant trees in his community of Wekweètì, N.W.T., since late August. His job is to ferry personnel and supplies to an area on the south shore of Snare Lake, which is being replanted after a wildfire. A crew of roughly 45 people flew into the Tłįchǫ community — approximately 300 kilometres northeast of Behchokǫ̀ — to plant 425,000 black and white spruce trees over the span of two weeks. It’s part of the Tlicho government’s plan to plant 13 million trees across its lands by 2030, with the help of federal funding. The initiative aims to restore ecosystems and boreal caribou habitat, while also creating local jobs. Tom worked for the Ekati diamond mine for the last 27 years. When it went into receivership in July, Tom said he was able to retire and he now has a pension.
Campfire prohibitions will be lifted across the Coastal Fire Centre starting Thursday (Sept. 3), as wildfire danger continues to decline following recent rainfall and cooler temperatures. Effective at noon, Category 1 open-fire prohibitions, which include campfires, will be rescinded throughout the Coastal Fire Centre – which encompasses the Island and B.C.’s South Coast. Fire no larger than 0.5 metres high by 0.5 metres wide, used for recreational or ceremonial purposes, will be allowed. At the same time, Category 2 and Category 3 open-fire prohibitions will also be lifted in the Haida Gwaii Forest District. Category 2 fires include backyard burning, while Category 3 fires include larger industrial burning activities. However, Category 2 and Category 3 fires will remain prohibited throughout the rest of the Coastal Fire Centre. Some activities and equipment also remain prohibited, including binary exploding targets, fireworks, burn barrels or burn cages, controlled air incinerators, air curtain burners, and carbonizers.
OREGON — The 2021 floods in British Columbia’s Fraser Valley caused upwards of $14 billion in damages. Since then, communities have brought lawsuits against logging companies and the provincial government, blaming them for logging practices that made flooding worse. Over the past 50 years throughout B.C., clear-cut logging has been the primary method of timber extraction across watersheds of all sizes. Floods are happening more often and are becoming more expensive, and unlike the storms that help trigger them, clear cutting and the associated cumulative impacts are something we can manage. When watersheds are assessed for flood risk, the question often asked is a simple one: How much of the watershed has been logged? …
A new chapter for FSC in New Zealand is taking shape, with New Zealand-based members unanimously voting to join Australia under a shared Australia and New Zealand’s (FSC ANZ) governance model. This decision marks an important milestone for FSC across the region, solidifying a formal role for New Zealand-based members in FSC Australia and New Zealand’s governance and laying a stronger foundation for expanding FSC’s work, engagement, and impact in New Zealand. …New Zealand-based directors will be added to the FSC ANZ Board at the next Annual General Meeting to strengthen New Zealand’s representation and voice across the organisation’s Environmental, Social and Economic chambers. …FSC ANZ is planning to establish a dedicated presence in New Zealand, adding a new team member based in the country to work closely with members, certificate holders and stakeholders on the ground. …For FSC, New Zealand is a crucial part of the organisation’s future.
Mark Carney government is arguing in court that the signature piece of Justin Trudeau’s climate action plan — the Canadian Net-Zero Emissions Accountability Act — is unenforceable. Also, that it’s not the job of the courts to rule on federal climate policy. That may come as a shock to Canadians who remember the Trudeau government crowing when the Supreme Court ruled in 2021 that Trudeau’s carbon pricing law was constitutional, after it was challenged by Ontario, Alberta and Saskatchewan as an intrusion into provincial authority. But that was then, and this is now.
GEORGIA — A peer-reviewed University of Georgia study has found that rural forest landowners in the southeastern United States do not assess wood-based bioenergy or climate change solely through economic considerations. Their views are shaped by political beliefs, cultural values, personal experience, trust in markets and perceptions of local communities, the researchers reported in 2025. The study, published in the journal 
Finland’s Ministerial Finance Committee has given the green light to €21m funding for wood-based bioproducts firm Metsä Fibre to develop a biogenic carbon capture plant in Rauma. The Ministry of Economic Affairs and Employment will shortly prepare the decision for Sari Multala, Minister of Climate and the Environment, ahead of official approval. The €70m ($81.2m) plant would have a capture capacity of 100,000 tonnes per year. CO2 would be captured from the flue gases of Metsä Group’s Rauma pulp mill where it would be further delivered to produce renewable electrofuels. Later, the solutions from the plant could be scaled up and replicated for other similar projects.
