Daily News for February 17, 2023

Today’s Takeaway

CP Rail, Unifor ratify two-year labour agreement

The Tree Frog Forestry News
February 17, 2023
Category: Today's Takeaway

CP Rail secured a two-year collective agreement (with Unifor) for its mechanical employees in Canada. In other Company news: Livingston, Montana braces for R-Y Timber closure; and Western Forest Products and Mercer International report reduced Q4, 2022 earnings. On the Market front, US housing starts fall, the market share for townhouse construction rises; printing paper shipments fall; and a building material dealer opines on where we go from here.

In Forestry/Climate news: Industry welcomes BC’s new old-growth measures, while ENGO’s call it a move in the right direction; Ontario invests in tree planting; Oregon stays the course on habitat conservation; a Georgia company plants genetically modified trees; and North Carolina studies the carbon footprint of different fibres.

Finally, Kenworth celebrates 100 years with a 1923 one-log-per-load logging truck. Monday is Family Day where the Frogs reside—so we’re back on Tuesday (barring breaking news).

Kelly McCloskey, Tree Frog Editor

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Business & Politics

CP announces ratification of new labour agreement with Unifor

By Canadian Pacific Railway Limited
Cision Newswire
February 16, 2023
Category: Business & Politics
Region: Canada, Canada West

CALGARY, AB – Canadian Pacific Railway Limited today announced that Unifor members have ratified a new two-year collective agreement covering approximately 1,200 CP mechanical employees in Canada. “This negotiated agreement is the result of hard work by all involved. We thank Unifor for working collaboratively with us throughout this process,” said Keith Creel, CP’s President and CEO. “Ratifying this agreement is a positive step for our mechanical employees and another example of CP’s willingness to negotiate in good faith with our union partners.” Unifor represents CP’s mechanical responsible for maintaining rail cars and locomotives. CP has successfully negotiated three tentative collective agreements with its unions in 2023, including this the one with Unifor announced in January and ratified this month. 

Additional coverage from Unifor: CP Rail workers ratify new contract

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Kenworth celebrates century of truck making with special editions

By Alan Adler
FreightWaves
February 16, 2023
Category: Business & Politics
Region: United States, US West

Kenworth Truck Co. will spend the next 12 months celebrating its 100th anniversary — from its beginnings as a logging truck company that made diesel engines standard to a lineup that includes battery-powered electric trucks and could offer hydrogen-powered fuel cells. The Paccar Inc. brand — Kenworth became part of Paccar in 1946 — has produced more than 1.3 million trucks in the U.S. and Canada with the KW badge on the grill. Harry W. Kent and Edgar K. Worthington incorporated the Gersix Motor Co. as Kenworth in 1923. The K in Kent and the W in Worthington formed the Kenworth bug that has evolved over the decades. 

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Livingston, lumber industry brace for impacts of R-Y Timber closure

By Helena Dore
The Livingston Enterprise
February 16, 2023
Category: Business & Politics
Region: United States, US West

MONTANA — Setbacks from two separate structure fires forced R-Y Timber, Inc. — one of the largest employers in Livingston — to shut down its sawmill in the town. Now industry experts and local business leaders are bracing for the impacts. …Leslie Feigel, CEO of the Livingston Area Chamber, said the closure is a tragic loss for Livingston and the state. R-Y Timber was the third-largest employer in the town, and it manufactured some 16% of Montana’s lumber supply. …When a mill closes, that also impacts stumpage values on state and federal land, which in turn impacts revenue for Montana public schools, Altemus said. Timber sales and other extractive activities on Montana’s school trust lands generate funding for public schools. To continue to operate, sawmills need a sustainable and steady supply of timber. …For logging contractors, it’s difficult to weather that kind of uncertainty.

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Finance & Economics

Two years that changed the lumber distribution industry

By Matt Meyers, Yelser CEO
Hardwood + Builder Supply Dealer
February 17, 2023
Category: Finance & Economics
Region: Canada

Matt Meyers

The past few years have changed almost every facet of life. The way individuals communicate, do business, and engage with the economy have been seriously altered. One such impacted industry has been Lumber. For example, on December 15, 2022, a Yesler customer secured a load of 7/16” OSB for $271 per thousand square feet. Just seven months prior a customer had paid $2,000/msf for the same product. Economically, that sums up 2022. With rapidly rising interest rates tamping down exuberance in housing development, the over-stretched slinky known as the lumber and building materials supply chain recoiled itself back into its original box. …While the past few years have been tough, there are both hope and concrete actions that businesses can take to recover. The best news for the housing market, regardless of Fed policy, interest rates, and recession risk is that it doesn’t have as far to fall as last time. 

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Toilet Paper in Danger … Again, But This Time It’s the Housing Market’s Fault

By JP Alegre
The Deep Dive
February 16, 2023
Category: Finance & Economics
Region: Canada, United States

The housing market slump is a real pain in the butt — it’s even making toilet paper more expensive. With less demand for new houses, the need for lumber slows. As lumber falls into slumber and futures drop over 60% to a two-year low… sawmills are winding down. In Canada, the largest softwood lumber producer globally, Bloomberg reports that about a third of British Columbia’s sawmills have now closed operations. These closures impact the production of paper-based products. What’s more, British Columbia produces a premium kind of softwood pulp that produces high-quality toilet paper that’s both sturdy and soft. With a significant capacity of the sawmills in the region gone comes a squeeze, and with that comes higher costs. Prices at US retail have gone up 20% from July to December 2022, according to data from NielsenIQ. 

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Mercer International Reports Fourth Quarter and Year End 2022 Results

By Mercer International Inc.
The Market Screener
February 16, 2023
Category: Finance & Economics
Region: Canada, International

NEW YORK — Mercer International reported fourth quarter 2022 Operating EBITDA of $96.1 million a decrease from $164.9 million in the fourth quarter of 2021 and $140.9 million in the third quarter of 2022. In the fourth quarter of 2022, net income was $20.0 million  compared to $74.5 million in the fourth quarter of 2021 and net income of $66.7 million in the third quarter of 2022. In 2022, Operating EBITDA increased by 12% to a record $536.5 million from $478.8 million in 2021. In 2022, net income was a record $247.0 million from $171.0 million in 2021. Mr. Juan Carlos Bueno, the CEO stated: “Our solid fourth quarter operating results reflect strong pulp sales, which were however more than offset by lower sales prices, higher planned maintenance and fiber costs and the negative impact of the weaker US dollar compared to our third quarter operating results.

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Western Forest Products Announces Fourth Quarter 2022 Results

Western Forest Products
February 16, 2023
Category: Finance & Economics
Region: Canada, Canada West

Vancouver, BC – Western Forest Products Inc. reported a net loss of $21.4 million and adjusted EBITDA of negative $11.9 million in the fourth quarter of 2022. Results reflect compressed margins on lower log and lumber production and shipments and $11.8 million of inventory provisions. Net loss in the fourth quarter of 2022 was $21.4 million ($0.07 per diluted share) as compared to net income of $6.6 million ($0.02 per diluted share) for the third quarter of 2022, and net income of $28.5 million ($0.08 per diluted share) in the fourth quarter of 2021. Highlights:

  • Successfully integrated acquired Calvert assets into WFP Engineered Products
  • Released the Sustainability Report, expanded to include full scope emissions data
  • Released the first Carbon Accounting Report detailing Western’s 100-year forecast lifecycle carbon assessment methodology, assumptions and results 
  • Returned $6.9 million to shareholders through dividends and share buybacks
  • Maintained liquidity of $249.8 million to support growth strategy and balanced capital allocation

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US Housing Starts Drop Another 4.5 Percent to a New Post-Covid Low

Mish Talk
February 16, 2023
Category: Finance & Economics
Region: United States

As expected, the Census Department’s New Residential Construction report for January was another disappointment. Privately‐owned housing units authorized by building permits in January were at a seasonally adjusted annual rate of 1,339,000. This is 0.1 percent above the revised December rate of 1,337,000, but is 27.3 percent below the January 2022 rate of 1,841,000. Single‐family authorizations in January were at a rate of 718,000; this is 1.8 percent below the revised December figure of 731,000. Authorizations of units in buildings with five units or more were at a rate of 563,000 in January. …Privately‐owned housing starts in January were at a seasonally adjusted annual rate of 1,309,000. …Privately‐owned housing completions in January were at a seasonally adjusted annual rate of 1,406,000. 

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AF&PA Releases January 2023 Printing-Writing Monthly Report

By Tim Ebner
The American Forest & Paper Association
February 16, 2023
Category: Finance & Economics
Region: United States

WASHINGTON – The American Forest & Paper Association (AF&PA) released its January 2023 Printing-Writing Monthly report. According to the report, total printing-writing paper shipments decreased 9% in January compared to January 2022. U.S. purchases of total printing-writing papers increased 3% in January compared to the same month last year. Total printing-writing paper inventory levels increased 2% when compared to December 2022. January shipments decreased in 3 of the 4 major P-W grades when compared to the same month the year before, with uncoated mechanical papers recording the sole year-ago increase. In 2022 year to date net imports increased in all 4 major grades, with coated and uncoated free sheet showing the greatest percent increase and coated mechanical increasing the least. [END]

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US Townhouse Construction Share Climbs to Near Four-Decade High

By Robert Dietz
NAHB – Eye on Housing
February 17, 2023
Category: Finance & Economics
Region: United States

According to NAHB analysis, during the fourth quarter of 2022, single-family attached starts totaled 37,000, which is 8% lower than the fourth quarter of 2021. Over the course of 2022, townhouse construction starts totaled 148,000 units, which is effectively unchanged from 2021. Using a one-year moving average, the market share of newly-built townhouses increased to 15% of all single-family starts for the fourth quarter. As denser areas reopened following covid later, the townhouse market rebounded later. Additionally, as the spec single-family building market slowed in recent quarters on higher interest rates, the townhouse construction market share has increased. In fact, the current 15% market share is the highest since 1985.

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Wood, Paper & Green Building

Durability and resilience of Canadian Wood’s timber for tomorrow

Architect and Interiors India
February 16, 2023
Category: Wood, Paper & Green Building
Region: Canada, International

Canadian Wood will be focusing on different species of wood and the features that make them much-sought-after sustainable wood option in India at India Expo Mart. Awareness about timber will soon become a movement in the coming days as the country is highly focused on green growth and sustainable development. It’s not just the citizens, but also every sector in the country has taken up on itself to do its bit to achieve the goal of net-zero emission by 2070. Hence, it’s not surprising why the country has taken to Canadian Wood in such a short span as it is high on sustainability quotient as well as durability. The wood is sourced from British Columbia’s sustainable and certified forests… It has set the bar high with its adoption of sustainable forest management practices, which includes scientific research to implementation of strict forest laws with public consultation. 

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Engineered wood grows stronger while trapping carbon dioxide

By Silvia Clark
Rice University News, Houston Texas
February 16, 2023
Category: Wood, Paper & Green Building
Region: United States, US East

HOUSTON, Texas — Rice University scientists have figured out a way to engineer wood to trap carbon dioxide through a potentially scalable, energy-efficient process that also makes the material stronger for use in construction. Structural materials like steel or cement come at a high cost both in dollars and carbon dioxide emissions. …Developing sustainable alternatives to existing materials could help reduce carbon dioxide emissions. Working to address both issues at once, materials scientist Muhammad Rahman and collaborators found a way to incorporate molecules of a carbon dioxide-trapping crystalline porous material into wood, according to a study published in Cell Reports Physical Science. “Wood is a sustainable, renewable structural material that we already use extensively,” Rahman said. “Our engineered wood did exhibit greater strength than normal, untreated wood.” …“The next step would be to… understand the scalability and commercial viability of this material,” he added.

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Is Milwaukee becoming the world’s mass timber leader?

By Larry Adams
Woodworking Network
February 15, 2023
Category: Wood, Paper & Green Building
Region: United States, US East

Milwaukee may soon be home to two of the largest mass-timber buildings in the world after developers of an apartment tower planned for downtown Milwaukee announced that it was doubling in height, and would be among the world’s tallest mass-timber buildings when it opens in 2025. …When the Edison opens it will fall just shortly of the Ascent building, which is considered the world’s tallest timber building at 284 feet, which beats the current record holder in height by 4 feet. In July 2022, the Council on Tall Buildings and Urban Habitat designated the 488,000-square-foot residential building in Milwaukee as the world’s tallest timber and concrete hybrid structure. The $125 million building features a hybrid timber and concrete frame. It was developed by New Land Enterprises and Wiechman Enterprises. 

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Scotlands’s first developer-led mass-timber housing in Edinburgh

By Saudatu Bah
Dezeen Magazine
February 16, 2023
Category: Wood, Paper & Green Building
Region: International

The latest edition of our Dezeen Debate newsletter features a mass-timber tenement-style housing development by Scottish studio Fraser/Livingstone. Subscribe to Dezeen Debate now. Designed by the studio as a contemporary addition to the historic site, the building is Scotland’s first developer-led, mass-timber housing development in Edinburgh. Named Simon Square, it consists of six flats and replaces an old builder’s yard on a site closely bordered by 19th-century stone tenements, in Edinburgh’s Southside. Readers had a mixed reaction. One described it as “out of character with its context” while another thought “it sits well” and a third agreed saying it’s “sensitive to its period surroundings”.

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Forestry

10 Top post-grad job placement schools for Forestry in North America

The Working Forest
February 16, 2023
Category: Forestry
Region: Canada, United States

Why consider education in forestry? Simple answer is – there is an enormous demand for qualified workers in the forestry field. This may not seem significant at a glance but consider this. …the probability of finding a job in your field after your graduation is an important thing to consider before you start applying to schools. Since the probability of post-grad job placement is so high in forestry (some estimates say between 95-98%), applying to schools that have forestry programs is a better choice. We created a list of 10 Schools in Canada and USA with forest related programs that have high post-grad job placement rates. The criteria included: Job Placement Rate, Starting Salary, Reputation, Research Opportunities and Alumni Network. The top three schools were University of British Columbia, University of Montana, and Oregon State University. 

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Is BC Actually Putting Forest Health Ahead of Industry Needs?

By Zoe Yunker
The Tyee
February 17, 2023
Category: Forestry
Region: Canada, Canada West

B.C. announced this week that it would scrap an infamous clause embedded in B.C.’s forest rules often recognized as a barrier to protecting forests and their biodiversity. The clause, written into B.C.’s Forest Range and Practices Act, says that ecological values like wildlife protection can only be included in forest planning if they don’t “unduly reduce the supply of timber from British Columbia’s forests.” For the most part, that means they can’t impede logging. The announcement comes as part of the province’s stated intentions to transition B.C.’s forestry sector away from the industry-led model to one that better prioritizes First Nations, ecosystems and communities. …Next weekend, the United For Old Growth rally at the B.C. legislature in Victoria will call on the province to implement the recommendations from the Old Growth Strategic Review. Almost three years after the review was released, these recommendations remain incomplete.

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Forest Enhancement Society of BC project updates from around the province.

By Steve Kozuki, Executive Director
Forest Enhancement Society of BC
February 17, 2023
Category: Forestry
Region: Canada, Canada West

The BC Government has recently announced a significant amount of funding to enable FESBC and our partners to use as much incidental forest fibre (that is uneconomic to use and which would usually otherwise be burned in slash piles). Doing so will create a number of benefits, including stabilization of forest-dependent communities, dramatic reduction of GHG emissions from pile burning, maintenance and creation of family-supporting jobs, and improvement of air quality by reducing wood smoke.In this newsletter:

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‘The right direction’: new B.C. plan could actually protect old-growth forests

By Sarah Cox
The Narwhal
February 16, 2023
Category: Forestry
Region: Canada, Canada West

A “war in the woods” has simmered for decades in B.C., sometimes erupting into high-profile protests and arrests. …This week, the provincial government unveiled a suite of new measures that aim to accelerate old-growth protection and broker a truce. …Conservation groups and the First Nations Forestry Council were quick to praise the new measures, although some groups are calling for faster action to safeguard what little is left of B.C.’s old-growth forests. …Ken Wu, of the Endangered Ecosystems Alliance… applauded the government’s decision to remove a clause in forest regulations that allowed timber supply to trump all other values. …First Nations Forestry Council CEO Leonard Joe said First Nations have been asking to have a seat at the table for years. “I for one am glad to see this day, to witness the province recognize the vital role of First Nations, the role that we play in managing sustainable forests.”

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COFI Welcomes New Measures and Investments that Support Accelerated Path Forward on Old Growth

Council of Forest Industries
February 15, 2023
Category: Forestry
Region: Canada, Canada West

Vancouver, BC – BC Council of Forest Industries (COFI) President and CEO Linda Coady released the following statement in response to new measures announced today by the BC Government on old growth:  “Today’s announcement includes positive steps towards putting the necessary investments, frameworks and relationships in place to advance how old growth forests are conserved and managed in the province.”  “In addition to important capacity funding for Indigenous Nations and the First Nations Forestry Council, actions being taken to accelerate the old growth review process will also support land use planning at the local level. Strengthened Indigenous and local engagement on land use planning at the regional level will help ensure goals for forest health and biodiversity are met while also creating more predictability for workers, communities and forest-related businesses across BC.”  

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Ontario government invests $2.1 million for tree planting through Forests Ontario

By Forests Ontario
Cision Newswire
February 17, 2023
Category: Forestry
Region: Canada, Canada East

BARRIE, ON – At Forests Ontario’s Annual Conference in Alliston, Ontario today, the Honourable Graydon Smith, Minister of Natural Resources and Forestry and MPP for Parry–Sound Muskoka, announced that the Ontario government is investing $2.1 million in tree planting through Forests Ontario. “We are proud to support Forests Ontario’s mission to make our forests greener,” Minister Smith says. “With this investment, our government is taking action to ensure the long-term sustainability of Ontario’s forests and forest sector businesses, while creating stability for workers, families and communities that depend on this sector.” The one-year investment will support tree planting through Forests Ontario’s tree planting programs. Through our comprehensive network of partners and programs, Forests Ontario has planted more than 41 million trees to date, resulting in 20,500 hectares of new forest created across more than 8,300 project sites.

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Mi’gmaq community wants Quebec to increase its wood allocation

By Breakaway with Alison Brunette
CBC Radio News
February 16, 2023
Category: Forestry
Region: Canada, Canada East

Alison Brunette

AUDIO STORY — An Indigenous community on the Gaspé Coast is holding its ground. They say they’re willing to do whatever it takes to ensure their community has access to enough wood resources to keep their economy afloat. Guest host Allison Van Rassel speaks with the chief of Gesgapegiag.

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Fires of Winter

By Robert Hudson Westover
US Department of Agriculture
February 16, 2023
Category: Forestry
Region: United States

Snow melts and becomes water, and the newly heated water becomes vapor as piles of dry wood and other plant debris start to burn slowly when firefighters, one after another, dip their drip torches. Winter is the ideal time of year for pile burning on national forests and it’s one of the many ways the USDA Forest Service works to remove excess debris and lower fire risks to communities in advance of wildfire activity each year. As winter conditions continue across the US, some national forests create hundreds of “slash piles.” These piles are waiting to be prescribed burned because, throughout the year, fuels reduction and hazardous tree removal projects have been completed. Fuels reduction involves mechanical and hand thinning, meaning that dead, dying or excess trees are removed to reduce forest density and improve forest health. 

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State forestry board stays course on habitat conservation plan

By Nicole Bales
The Astorian
February 16, 2023
Category: Forestry
Region: United States, US West

In a divided 4-3 vote on Wednesday, the Oregon Board of Forestry decided to stay the course on a draft habitat conservation plan amid growing pressure from counties and the timber industry to start over. The special virtual meeting was called late last week after county and timber industry leaders raised alarm over new data on timber harvests released by the state Department of Forestry. The 70-year plan would designate no-logging areas across nearly 640,000 acres of state forests, mostly in Clatsop and Tillamook counties. The protected areas are intended to keep species under the federal Endangered Species Act safe and keep the state in compliance with federal law. However, some county and timber industry leaders say the plan goes further than it needs to protect habitat. They also say reductions in timber harvests will have major ramifications on jobs and the 15 counties that depend on revenue from logging state forests.

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Are you a youth interested in forestry?

Pontotoc Progress
February 17, 2023
Category: Forestry
Region: United States, US East

MISSISSIPPI – Forestry has a large impact on the lives of Mississippians. It supplies the stimulus for over 64,000 jobs that contribute close to $3.3 billion in annual employee income in our state. Forestry employment possibilities for the youth of Mississippi will continue well into the future. Recent forest product mill expansion and construction throughout Mississippi indicates strong long-term demand. There will be opportunities for those who are looking to work in a high-tech environment either outdoors or in an industrial setting. Employment within the timber industry can relate to forestry operations and management, government agencies, and industrial wood processing mills. This column will discuss forestry careers and how youth can prepare themselves to join this exciting and fulfilling field. 

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For the First Time, Genetically Modified Trees Have Been Planted in a U.S. Forest

By Gabriel Popkin
The New York Times
February 16, 2023
Category: Forestry
Region: United States, US East

GEORGIA — In a low-lying tract of southern Georgia’s pine belt, a half-dozen workers planted row upon row of twig-like poplar trees. These weren’t just any trees, though: Some of the seedlings being nestled into the soggy soil had been genetically engineered to grow wood at turbocharged rates while slurping up carbon dioxide from the air. The poplars may be the first genetically modified trees planted in the United States outside of a research trial or a commercial fruit orchard. Just as the introduction of the Flavr Savr tomato in 1994 introduced a new industry of genetically modified food crops, the tree planters on Monday hope to transform forestry. …Maddie Hall, the company’s co-founder said of her dream to deploy genetic engineering on behalf of the climate. But she and her colleagues have also found believers — enough to invest $36 million in the four-year-old company. The company has also attracted critics. [to access the full story a NY Times subscription is required]

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Carbon, Climate & Bioenergy

New Research Program Investigates Carbon Footprint of Fibers to Combat Climate Change

By Andrew Moore
North Carolina University – College of Natural Resources News
February 16, 2023
Category: Carbon, Climate & Bioenergy
Region: United States, US East

NORTH CAROLINA — Many companies worldwide use natural fibers to make different products like clothing, hygiene tissue and packaging. However, it’s difficult to compare the carbon footprint of different types of fibers because the calculations often use different assumptions and methodologies. A new global research program led by NC State researchers within the Sustainable Alternative Fibers Initiative (SAFI) in the Department of Forest Biomaterials is underway to profile the carbon footprint and sustainability of products containing conventional and alternative fibers. The three-year program, called Next Gen Fibers, is funded by The Rockefeller Foundation, Climate Breakthrough and Canopy Planet. …While conventional fibers are derived from plants like cotton, eucalyptus and softwood, alternative fibers are derived from agricultural residues and industrial wastes. The Next Gen Fibers project will focus primarily on fibers used in the production of textiles, hygiene products and packaging materials, according to Gonzalez. 

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Conservationists fear Big Wind is coming for German forests

By Kristie Pladson
Deutsche Welle
February 17, 2023
Category: Carbon, Climate & Bioenergy
Region: International

SABABURG, Germany — Ralf Paschold, a wind energy entrepreneur, points at a tree-covered ridge off in the distance. “For the next 30 years,” he said, “I will produce energy there.” …Paschold has built wind farms in Canada, France and other parts of Germany. Now he plans to build 18 wind turbines here in the Reinhardswald. Overall, the forest is 20,000 hectares, but Paschold only wants to use 14 hectares where drought and a beetle infestation have killed the trees for his turbines. …Germany is already big on wind: with nearly 30,000 onshore wind turbines. But it’s not enough to meet the country’s climate goals. …But these decisions are often met with fierce resistance from locals. …Complicated regulations, a lack of government workers to process the paperwork, and efforts to keep wind turbines away from animals’ natural habitats are also preventing the sector from developing as the government wants, Paschold says.

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Health & Safety

Courtenay, B.C., plans to put up air quality monitors in public spaces Social Sharing

By Josh Grant
CBC News
February 16, 2023
Category: Health & Safety
Region: Canada, Canada West

The city of Courtenay, B.C., located on Vancouver Island, launched an awareness campaign on air quality, with plans to install devices to monitor air quality in a few public locations throughout the municipality. Jeanniene Tazzioli, Courtenay’s manager of engineering and environmental projects, says data collected by the province showed the region was seeing higher than average levels of smoke. “We were seeing some spikes in PM2.5, which is fine particulate matter,” she said. “We’re mostly concerned about the health effects.” The city’s website says exposure to wood smoke can worsen conditions like asthma or COPD (chronic obstructive pulmonary disease) and reduce lung function. The main source of wood smoke in Courtenay is the use of wood-burning appliances, says Tazzioli. The awareness campaign aims to educate locals on the impact of particulates in the air, how to reduce smoke, and related bylaws and rebates for replacing wood-fired heating systems.

Additional coverage in Comox Valley Record: Courtenay installing air monitors, launching awareness campaign

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