Daily News for March 29, 2023

Today’s Takeaway

Canada’s budget targets clean energy development, recognizes benefits of forest sector

The Tree Frog Forestry News
March 29, 2023
Category: Today's Takeaway

Canada’s federal budget is pouring billions into clean energy development, and recognizes benefits of forest sector. In other Business news: Prince Rupert port to provide BC some supply chain relief; Drax Group asked to drop BC Timber Sales; Hoover Treated Wood breaks ground in Texas; ND Paper is curtailing Old Town Maine pulp mill; Maine’s top polluters include four paper mills; and New York’s Pallets Inc. is sold to Quebec’s Damabois Group.

In Forestry/Climate news: a new study says conserving wildlife can help mitigate climate change; BC First Nation declares a large protected area; Washington employs prescribed burns ahead of fire season; Montana timber management mimics natural processes; and Alice Palmer asks—can we log our forest and conserve it too?

Finally, the Canadian Wood Council’s 39th annual Wood Design Award Winners.

Kelly McCloskey, Tree Frog Editor

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Business & Politics

Federal Budget Pours Tens of Billions Into Clean Economy

By Mitchell Beer
The Energy Mix
March 28, 2023
Category: Business & Politics
Region: Canada

An array of new tax credits for clean energy development and a pledge to secure Canada’s place in a global green economy are at the centre of this year’s federal budget, with an estimated $80 billion in multi-year funding for mostly clean energy technologies. The 270-page document lays out eight priorities for the shift: electrification, clean energy, clean manufacturing, emissions reduction, critical minerals, infrastructure, electric vehicles and batteries, and major projects. …Globe and Mail columnist Adam Radwanski says the government’s approach represents a risky bet on private markets that may not deliver financial support equivalent to Biden’s Inflation Reduction Act. …“Freeland’s bet is that, with existing Canadian advantages in attracting cleantech investment, such as a national carbon price, Ottawa doesn’t need to fully match what the U.S. is doing,” he adds. …The document mentions future plans to fund biomass energy and introduce carbon contracts for difference.

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Federal Budget 2023 is a Missed Opportunity for Clean Fuels Investment

By Canadian Fuels Association
Globe Newswire in the Financial Post
March 28, 2023
Category: Business & Politics
Region: Canada

Bob Larocque

OTTAWA — The Canadian Fuels Association (CFA) appreciate the Federal Government’s recognition for low-carbon fuels, including biofuels and hydrogen, in Budget 2023. The lack of targeted measures in support of Made-in-Canada low-carbon fuels is a missed opportunity. …“The U.S. Inflation Reduction Act is a game-changer and Federal Budget 2023 falls short in establishing investment parity for clean fuel production in Canada”, said Bob Larocque, President and CEO. “Billions of dollars of investments are awaiting final decision and lack of clarity and targeted measures only adds to the uncertainty for the future of low-carbon fuel production in Canada”. …As noted in Federal Budget 2023 “hydrogen, biofuels, and biomass—will be critical sources of energy where electricity would be inefficient or impractical”. …“Canada has all the ingredients to be a world leader in low-carbon transportation fuels… however, the Budget 2023 is a missed opportunity.”

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Federal Budget Recognizes Canadian Forestry Leadership and Benefits of Forest Biomass

By Derek Nighbor, President and CEO
Forest Products Association of Canada
March 28, 2023
Category: Business & Politics
Region: Canada

The Forest Products Association of Canada was pleased to see Minister Chrystia Freeland signal renewed support for Canada’s forest sector and its workers and communities. She clearly outlined the leadership role forestry and forest products can play in growing Canada’s green economy. Minister Freeland pledged $368.4 million over three years toward Indigenous leadership in the sector, forestry research and development, low-carbon building construction, and support to bring more sustainably sourced Canadian forest products to the world. …In the face of worsening and more catastrophic fire patterns, today’s budget recognized that we need to do more to build new markets for stranded wood fibre and wood waste, realize the climate benefits of our biomass here at home, and help maximize carbon sinks in our forests. The budget rightly noted that forest biomass and biofuels provide a critical energy source and create much-needed economic growth for forestry businesses

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Supply chain inefficiencies squeezing agriculture and other business bottom lines

By Timothy Renshaw
Business in Vancouver
March 28, 2023
Category: Business & Politics
Region: Canada, Canada West

B.C.’s Asia-Pacific Gateway needs more than port infrastructure upgrades to deliver an efficient flow of imports and exports. …The good news is that B.C. ports are spearheading several major projects aimed at improving cargo-handling capacity. Earlier this month, the Prince Rupert Port Authority announced that its $250 million Ridley Island Export Logistics Project had passed the federal government’s environmental review process. …The complex, which will take an estimated two years to complete, will provide the Port of Prince Rupert with bulk and breakbulk transload facilities, an intermodal rail yard and a container storage yard. The project’s first phase will create an estimated 400,000 20-foot-equivalent units (TEUs) of additional port capacity to move everything from plastic pellets and cereal grains to lumber and pulp in containers directly from railcars to ships. …The Vancouver Fraser Port Authority is also waiting for a federal cabinet decision on its proposed $3.2 billion Terminal 2 expansion project at Roberts Bank. 

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Northern B.C. MP speaks out on sawmill closures in Parliament

By Hanna Petersen
Prince George Citizen
March 29, 2023
Category: Business & Politics
Region: Canada, Canada West

Taylor Bachrach

Skeena-Bulkley Valley MP Taylor Bachrach has raised Canfor’s Houston mill closure in Parliament. He called on the federal government to help Houston families and businesses affected by Canfor’s closure of its sawmill, announced last month. “There are few things more devastating for a rural community than learning that its major employer is closing its doors,” said Bachrach in his statement. “It’s going to put 300 mill employees out of work — that’s 10 per cent of the populations. And it will affect hundreds more who work for contractors and local businesses.” Bachrach said that despite solutions brought forward by the mayor of Houston, the local forestry industry, and the Steelworkers Union — including federal job creation and re-instatement of EI flexibility — the Liberal government has taken no action.

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Drax Investor Asks UK Biomass Firm to Drop Canada Forestry Permits

By Todd Gillespie
Bloomberg in the Financial Post
March 28, 2023
Category: Business & Politics
Region: Canada, Canada West

A major shareholder in Drax Group Plc is pushing the UK utility to drop some licenses to harvest trees for biomass in Canada. Drax, whose biomass sustainability was scrutinized in a documentary last year, was asked by Schroder Investment Management Ltd. to transfer or dispose of its existing so-called Category Two licenses within the next 12 months, according to a public letter by Schroders to the chairs of the UK Parliament’s Environmental Audit Committee. The licenses allow access to plots of land in British Columbia and are issued by BC Timber Sales, a government agency that manages about 20% of the province’s allowable annual cut for public timber.  The pressure is a sign of heightened investor concerns around companies’ environmental impact and the use of biomass in power production just as European Union policymakers debate what types of fuel can contribute to renewable energy goals. 

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President and CEO of Stora Enso Receives TAPPI/PIMA 2023 Executive of the Year Award

TAPPI (technical arm of the American Paper & Pulp Association)
March 27, 2023
Category: Business & Politics
Region: United States

Annica Bresky

ATLANTA – TAPPI, the leading technical association for the worldwide pulp, paper, tissue, packaging and converting industries, today announced that Annica Bresky, President and CEO of Stora Enso, has been named TAPPI/PIMA Executive of the Year. Bresky took over as CEO in December 2019, and has served as a member of the Group Leadership Team since joining the company in 2017. Before assuming her current position, she was Executive Vice President of Stora Enso’s Consumer Board Division. Prior to joining Stora Enso, she held various executive leadership positions, including President and CEO of Iggesund Paperboard AB in 2013-2017 and Managing Director at BillerudKorsnäs AB from 2010-2013. Among the highest honors bestowed by TAPPI and PIMA, the Executive of the Year Award is presented to senior-level executives in the pulp, paper or converting industries for excellence in management and outstanding contributions to the industry as a whole.

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Fort Edward pallet company sold to Quebec firm

By Rick Karlin
The Times Union
March 29, 2023
Category: Business & Politics
Region: United States, US East

Fort Edward, NY — With no apparent heir and amid ongoing consolidation in the industry a leading maker of wooden shipping pallets has been sold to a Canadian firm. But the sale of Pallets Inc. to Damabois of Saint Damase, Quebec, should put the Fort Edward manufacturer in a good position to grow. And the three dozen employees of Pallets Inc. will remain in place, said Clint Binley, 55, the third generation of Binleys running the firm with his father. Like Pallets Inc., Damabois is a family owned company. …While Pallets Inc. still gets some lumber from New York and New England, many of the small sawmills that traditionally supply pallet makers in the U.S. have disappeared over the decades. Damabois also operates its own sawmill in Quebec. …Canada is known for having more efficient sawmills and they benefit from the relatively cheap power available in Quebec, which relies heavily on its hydroelectric resources, said Binley.

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These Maine companies emit the most pollutants

By Mehr Sher
The Bangor Daily News
March 28, 2023
Category: Business & Politics
Region: United States, US East

In Maine, five companies are responsible for releasing the most toxic chemicals in 2021 and for emitting some pollutants known to cause cancer, based on a recent report by the U.S. Environmental Protection Agency. Five companies — four paper mills and one food processor — produce 92 percent of the toxic chemical releases in Maine: Sappi North America’s Skowhegan mill, McCain Foods USA in Easton, ND Paper’s Rumford mill, ND Paper’s Old Town mill and Woodland Pulp in Baileyville, according to the federal report published March 16. The Bangor Daily News contacted each company for an interview. …Maine has seen an overall reduction in the total amount of toxic chemicals being released over the past decade, largely due to a loss of paper mills. …Woodland Pulp, will be submitting a correction to the federal government. The company expects a reduction of approximately 400,000 pounds, down to approximately 600,000 pounds, said Scott Beal.

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Maine’s Old Town mill shutting down for extended period

By Valerie Royzman
The Bangor Daily News
March 28, 2023
Category: Business & Politics
Region: United States, US East

OLD TOWN, Maine — Old Town’s pulp mill that reopened in 2019 will operate until mid-April before shutting down operations for an extended period. ND Paper, which is owned by Nine Dragons Paper Limited paper manufacturing company in China, is “taking extended downtime,” at the mill, spokesperson Jay Capron said. He cited the rising cost of fiber, along with energy costs and market conditions as reasons. The mill produces unbleached softwood kraft pulp and recycled market pulp, manufactured from old corrugated containers. …The company invested more than $200 million in the mill and created high-paying jobs directly tied to the facility. …Now just under 200 Mainers with jobs there will be out of work. ND Paper has offered some of its employees positions at the Rumford mill and other locations, Capron said.

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Hoover Treated Wood Products Announces New Manufacturing Facility in Fairfield

By Hoover Treated Wood Products
Cision Newswire
March 28, 2023
Category: Business & Politics
Region: United States, US East

FAIRFIELD, Texas — The City of Fairfield, Fairfield Economic Development Corporation (EDC) and Hoover Treated Wood Products (HTWP) broke ground on a new $9M, state of the art wood treating facility coming to the community late 2023. The plant – owned and operated by HTWP – will treat fire-retardant wood products to be used in new construction buildings throughout the region. …As the largest manufacturer of fire-retardant wood products in the United States, HTWP plans to employ at least 50 employees in the first five years of operation. These full-time careers significantly increase quality employment opportunities for Fairfield. The Fairfield plant is Hoover’s first expansion into Texas and is located at 355 Cottonwood Creek Drive Fairfield, TX.

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Finance & Economics

Housing starts could fall 30% this year as higher interest rates curb demand

By Larysa Harapyn
The Financial Post
March 28, 2023
Category: Finance & Economics
Region: Canada

Kevin Lee, chief executive of the Canadian Home Builders’ Association, talks with the Financial Post’s Larysa Harapyn about Canada’s housing shortage, how the cost to construct new homes has risen by an average of $70,000 and the strategies the industry is contemplating to tackle the challenge of building 3.5 million additional units over the next decade. [9 minute video]

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Why Housing Demand Continues To Move Lumber Prices

By Emily Balsamo and Alison Coughlin
Seeking Alpha
March 29, 2023
Category: Finance & Economics
Region: Canada, United States

The complexity of the U.S. housing market continues to yield headwinds and tailwinds for lumber into 2023. …For a decade, these supply-side and demand-side factors brewed a perfect storm of high lumber demand and low supply to be unleashed during the Covid-19 Pandemic, as Americans sought more expansive accommodation under lockdown, boosted by low interest rates. …Despite extraordinary prices and demand, Canadian lumber exports have yet to return to pre-recession levels. The availability of lumber is a limiting factor for home building and the lumber supply chain is highly inelastic to demand. …In 2023, lumber supply and demand has somewhat returned prices to pre-Pandemic levels. There is sufficient supply sitting with wholesalers, and housing completions have exceeded expectations recently, meaning fewer projects are demanding lumber. It is unknown how long this dynamic will last, as sawmills have announced curtailments and building season will be underway.

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Demand for lumber declines worldwide, pushing prices for sawlogs down from record highs

By Haken Ekstrom
Wood Resources International in Lesprom
March 28, 2023
Category: Finance & Economics
Region: International

In 4Q 2022, the demand for lumber decreases worldwide, relaxing prices for sawlogs down from record highs. …The most significant decreases occurred in Western North America, the Baltic States, Central Europe, and Eastern Asia. The Euro-denominated European Sawlog Price Index (ESPI) also fell in late 2022 but despite the 6% decline in six months, current sawlog prices are still close to their highest levels in over 20 years. …The Global Hardwood Fiber Price Index grew faster than the softwood fiber price index, increasing 27% over two years. …Lumber production was down y-o-y in three of the four major North American regions in 2022. …Demand for lumber fell in Germany in 2022, resulting in a 34% y-o-y decline in softwood lumber imports. …Asia increased its share of global wood pellet imports to a record 32% in the 4Q 2022. European residential and industrial wood pellet prices fell in early 2023 following all-time highs in the 4Q 2022.

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Wood, Paper & Green Building

Canadian Wood Council announces 39th Annual Wood Design Award Winners

The Canadian Wood Council
March 28, 2023
Category: Wood, Paper & Green Building
Region: Canada

Ottawa, ON The Canadian Wood Council has announced the winning projects of the 39th annual Wood Design & Building Awards program. The influential awards program recognizes and celebrates the outstanding work of architectural professionals around the world who achieve excellence in wood design and construction. A record of 181 nominations from 25 countries were received by the program this year, with 24 winning projects selected from the impressive field of entries. The creative talent of the participating design teams, and the beauty and versatility the wood structures they have created, are transforming the built environment. [A video gallery of the winners can be found here]

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US Market Update: Hawaii Building Connections Mission

By Dave Farley
BC Wood Specialties Group
March 29, 2023
Category: Wood, Paper & Green Building
Region: Canada, Canada West

BC Wood and member companies had a successful Building Connections mission in the State of Hawaii. It included a networking event on the Big Island with over 45 builders, architects and project managers from the Kona region. …As an example of the value of a strategic approach to this market, the group toured the new One Hotel project in Princeville Hawaii. This project is situated on the idyllic Honolai Bay. We first heard of this project at the 2019 Building Connections at the GBM in Whistler, where we met with the invited folks from Layton Construction. Fast forward to today and we had the pleasure of seeing the beautiful work our member company Fraserwood Industries delivered. The covered vehicle entrance was manufactured by Fraserwood in Squamish, then shipped to Kauai for assembly at the One Hotel. 

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American Wood Council Annual Report

American Wood Council
March 28, 2023
Category: Wood, Paper & Green Building
Region: United States

We are pleased to share our annual report and encourage anyone interested in getting an understanding of all we accomplished in 2022 to have a look. Last year was the first year of work toward implementing AWC’s five-year Strategic Plan to ensure wood products are properly recognized in building codes and standards, while also providing strong advocacy support to protect the industry from overreaching federal environmental regulations and embarking on new opportunities to expand wood use through an emerging carbon-conscious built environment. AWC has quickly assumed a leadership role in shaping and driving our industry’s engagement on climate change and carbon in the built environment. We launched our life cycle inventory database and outperformed our year one collection goal with 87% of member company mills completing surveys. There is also a downloadable compilation pdf at the end of the report that can be shared with colleagues and friends. 

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Ecohelix to build production facility entirely from wood in Sweden

Lesprom
March 27, 2023
Category: Wood, Paper & Green Building
Region: International

Biotechnology scale-up company, Ecohelix is partnering with Sweco, Eurocon, and AFRY AB to create a state-of-the-art production facility, entirely from wood. The new facility planned for Örnsköldsvik, Sweden will produce 15,000 tonnes of renewable wood-based polymeric products per annum. This first biopolymer production plant will be integrated into Domsjö Fabriker´s pulp mill in Örnsköldsvik. Biopolymers have a wide range of applications as sustainable components in paper chemicals, packaging and cosmetics products. “As the Ecohelix production unit in Domsjö will be built completely from wood, we are using the same natural material in the construction, as we use as a raw material in our production”, says Oskar Schmidt, Ecohelix Chief Technology Officer. “We are connecting Ecohelix production directly to the ‘heart’ of Domsjö pulp mill. The starting point is that we cannot negatively affect the core process of Domsjö, which sets very high requirements for the production construction.”

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Forestry

Boreal forest wildfires released record levels of carbon in 2021

By Stefan Labbé
North Shore News
March 28, 2023
Category: Forestry
Region: Canada, Canada West

Boreal forests and their peatlands are one of the largest natural absorbers of carbon on the planet. But as climate change heats up northern latitudes, that carbon sink is increasingly at risk of going up in smoke. A study published earlier this month in the journal Science found the 2021 boreal wildfire season released a record 480 megatons of carbon — far more than the combined yearly emissions from Canada’s oil and gas sector, transport and buildings. The fire season, which stretched across boreal forests in Canada, the U.S. and Russia, could be a sign of things to come, concluded the study. …“It’s not only 2021,” said Yang Chen, a wildfire researcher at University of California Irvine and another co-author on the study. “When we look at the past 20 years, we see a clearly increasing trend in emissions, and in the future, with further warming, the scenarios like 2021 will occur more frequently.” 

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Can We Log Our Forest and Conserve It Too?

By Alice Palmer, PhD, MBA
Sustainable Forests, Resilient Industry
March 27, 2023
Category: Forestry
Region: Canada, Canada West

Alice Palmer

Speaking at a recent forestry conference in BC, futurist Nikolas Badminton enthused about recent forestry innovations, such as mass timber high-rises, wood-based windows, and electricity-generating floors. Indeed, one has only to open their daily newspaper to be inspired about the promise of a “bioeconomy” replacing carbon-intensive materials such as cement or plastic with bio-based ones such as wood fibre. Unfortunately, while wood is increasingly viewed as a climate-friendly building solution, the logging activities that provide this wood are not viewed in the same positive light. Many people believe industrial forestry to be environmentally damaging in terms of both carbon emissions and biodiversity conservation. These beliefs frequently carry over to the media and various levels of government. …However, if we want to both take advantage of the multiple carbon benefits of building with wood and conserve 30% of the earth’s surface, we’ll need to make some tough decisions.

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Ecologically diverse watershed declared Indigenous protected area by B.C. First Nation

By Doyle Potenteau
Global News
March 28, 2023
Category: Forestry
Region: Canada, Canada West

A First Nation in B.C.’s Interior has declared a sizeable section of land near the Alberta border as a protected area.  On its Facebook page, Simpcw First Nation announced that it declared the Raush Valley an Indigenous protected and conserved area (IPCA).  Also known as Riviere Au Shuswap, the valley is located in the Rocky Mountains, near Mount Robson Park, and part of it is already protected by BC Parks.  “This self-declaration is made based on the inherent rights and jurisdiction that Simpcw has over Simpcwul’ecw, our unceded territory, as the decision-makers and stewards of the (land),” the First Nation said in its release.  “Designating the Raush Valley as an IPCA is a commitment to Simpcw’s intentions to conserve this biodiverse valley, and to protect (the Simpcw peoples’) traditional and ongoing use of the area.”

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Washington to burn thousands of acres of forest ahead of fire season

By Isabella Breda
The Seattle Times
March 28, 2023
Category: Forestry
Region: United States, US West

The state Department of Natural Resources is planning to torch more than 2,100 acres this spring in an aim to prevent more severe wildfires as things heat up this summer.  Lawmakers in 2021 earmarked $500 million for wildfire prevention and forest health treatments such as these prescribed burns. After evaluating weather and wind patterns, fire risk and ecological benefits, DNR officials zeroed in on seven sites in Klickitat, Kittitas, Okanogan and Spokane counties that could provide the biggest bang for their buck this spring.  …Other areas targeted for prescribed burns include those that were recently thinned, a process of removing some trees in a forest stand to reduce density. Research has shown that combining mechanical thinning with prescribed fire tends to do a lot better than just one or the other for both long-term resilience and for how that landscape will interact with a wildfire, said Will Rubin, a DNR spokesperson.

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Timber management project aims to mimic natural process

By Kate Heston
Daily Inter Lake
March 28, 2023
Category: Forestry
Region: United States, US West

…Just outside of Coram on the Flathead National Forest independent contractors have gathered for a logging operation under a contract with Weyerhaeuser.  Forests have a life cycle, according to Paul Donnellon, a supervisory forester with the Flathead Forest who is visiting the site on this day. Trees grow, and they compete with each other — some die, some live, some fall, some burn.  The Lake Five area, where the operation is located, is a prime example of the cycle of forestland life.  …The land itself near Lake Five is a part of the wildland urban interface, which means it is a mix of private land, houses, businesses and national forest land. The Forest Service, while looking at long-term management goals for the forest, assessed that a logging operation would be beneficial in the area, Donnellon said. 

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Carbon, Climate & Bioenergy

Conserving Wildlife Can Help Mitigate Climate Change

By Oswald Schmitz
Yale School of the Environment
March 27, 2023
Category: Carbon, Climate & Bioenergy
Region: United States, US East

Solving the climate crisis and biodiversity crisis are not separate issues. Animals remove billions of tons of carbon dioxide each year. Restoring species will help limit global warming, new science reveals. Protecting  wildlife across the world could significantly enhance natural carbon capture and storage by supercharging ecosystem carbon sinks, a new study led by Yale School of the Environment Oastler Professor of Population and Community Ecology Oswald Schmitz has found. The study, published in Nature Climate Change and co-authored by 15 scientists from eight countries, examined nine wildlife species — marine fish, whales, sharks, grey wolves, wildebeest, sea otters, musk oxen, African forest elephants, and American bison. The data shows that protecting or restoring their populations could collectively facilitate the additional capture of 6.41 billion tons of carbon dioxide annually. This is 95% of the amount needed every year to meet the Paris Agreement targets.

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EU countries must stop undermining biomass policy reform

By Mary S. Booth, director, Partnership for Policy Integrity
EURACTIV
March 27, 2023
Category: Carbon, Climate & Bioenergy
Region: International

Mary S. Booth

As final negotiations on the Renewable Energy Directive are approaching, the risk is that EU policymakers will continue to treat forest wood burning as “zero-carbon” renewable energy and reward it with billions in subsidies, writes Mary S. Booth. Just days following the publication of the IPCC’s most frightening climate report yet, EU policymakers will decide whether the EU will continue its reliance on burning trees and other forest biomass for “renewable energy” – a practice that the EU’s own scientists have concluded degrades forests and increases greenhouse gas emissions, undermining efforts to mitigate the oncoming climate disaster. …Around half the wood logged in the EU is burned for energy, and as biomass use has increased, predicted effects are emerging – including weakening and even total loss of the forest carbon sink in some EU member states.

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