Daily News for December 20, 2022

Today’s Takeaway

Canfor Pulp Temporarily Curtails Intercontinental Pulp Mill

The Tree Frog Forestry News
December 20, 2022
Category: Today's Takeaway

Citing fibre shortages, Canfor temporarily curtails its Prince George Intercontinental Pulp Mill. In related news: lumber falls to new 2022 low; US housing starts continue their decline; homebuilder sentiment drops again; containerboard prices decline; packaging and writing paper shipments decrease; and fuel prices are up. Meanwhile: millwork distributor Metrie acquires Fred Tebb & Sons; and SFPA has a new communications manager.

In Forestry/Climate news: Nova Scotia will use more biomass to generate electricity; the Japan/Canada partnership on wood pellet energy; Alaska seeks to monetize carbon credits; ENGO gives failing grades to paper producers; the pros and cons for logging in Cowichan, BC; and some post-COP15 buzz from Montreal.

Finally, a BC sawmiller’s tale of love, sabotage and life at the mill.

Kelly McCloskey, Tree Frog Editor

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Business & Politics

Metrie Aquires the Hemlock and Alder Manufacturing and Distribution Business of Fred Tebb & Sons, Inc.

By Metrie
Business Wire
December 19, 2022
Category: Business & Politics
Region: Canada, Canada West

VANCOUVER, British Columbia–Metrie, North America’s largest manufacturer and distributor of millwork solutions, announces the acquisition of the Hemlock and Alder manufacturing and distribution business of Fred Tebb & Sons, Inc., a solid wood moulding manufacturer and distributor based in Oregon, USA. This is the fourth acquisition by Metrie in the last two years, following the purchase of Tinder Wholesale and EL & EL Wood Products Corp. earlier in 2022; and Pacific MDF Products Inc. and Canadian MDF Products Company in late 2020. Each acquisition has provided complementary and expanded services for our customers across North America, and in support of Metrie’s growth strategy. …Metrie began in 1926 as a small, family-owned and -operated business in Vancouver, B.C. Since then, Metrie [has] expanded operations to include six solid wood and MDF manufacturing facilities, plus 26 distribution centers in the U.S. and Canada. 

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Canfor Pulp Temporarily Curtailing Intercontinental Pulp Mill

By Mark Nielsen
The Prince George Citizen
December 19, 2022
Category: Business & Politics
Region: Canada, Canada West

PRINCE GEORGE, BC — Canfor Pulp Products announced Monday an immediate curtailment of its Intercontinental Pulp Mill. The curtailment is expected to be in place for four weeks and is due to the lack of available economic fibre as a result of sawmill curtailments. “The sawmill curtailments occurring in B.C. are materially reducing the residual fibre available for pulp mills. Based on the near-term fibre outlook, we have made the difficult decision to temporarily curtail Intercontinental Pulp Mill,” Canfor Pulp CEO Kevin Edgson said in a statement. “We regret the impact the downtime will have on our employees, their families, our suppliers and the community.” …The downtime will remove about 24,000 tonnes of market kraft pulp. The move was made two weeks after Canfor said it will be invoking curtailments lasting one to four weeks at all solid wood facilities in B.C. and Alberta, due to very weak markets.

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The Ontario Forest Industries Assn and Premier Doug Ford Celebrate Herb Shaw & Sons’ 175th Anniversary

Ontario Forest Industries Association
December 12, 2022
Category: Business & Politics
Region: Canada, Canada East

The Ontario Forest Industries Association (OFIA) joins Premier Doug Ford, Minister Graydon Smith, Minister Todd Smith, and Parliamentary Assistants, John Yakabuski and Ric Bresee, in Pembroke, Ontario, to celebrate Herb Shaw & Sons’ 175th anniversary. …For nearly two centuries, Herb Shaw & Sons Ltd. has distinguished itself as an innovator and a pioneer in the lumber manufacturing industry. The company has built its foundation and led the industry by manufacturing lumber and poles with timber procured from certified managed forests, including Ontario’s Algonquin Park. Herb Shaw & Sons has been a member of the OFIA for over 50 years and remain a key contributor to the Association initiatives.

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Christian Moises Joins SFPA as Communications Manager

Southern Forest Products Association
November 1, 2022
Category: Business & Politics
Region: United States, US East

Christian Moises, APR joined SFPA as communications manager October 17. He will lead our efforts to tell the SFPA’s story, including promoting our members, raising further awareness for Southern Pine, and establishing the association as a leading industry resource. That includes, but definitely is not limited to, traditional and digital marketing and communications, member services and support, and becoming a go-to resource for all things related to Expo. His experience gives him a unique, inside perspective to effectively connect with a broader audience while helping SFPA and its members grow and achieve success.

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Finance & Economics

Lumber falls to a new 2022 low after homebuilder sentiment drops

By Matthew Fox
The Business Insider
December 19, 2022
Category: Finance & Economics
Region: Canada, United States

Lumber prices extended their six-day losing streak on Monday after homebuilder sentiment fell for the 12th month in a row. Lumber futures dropped as much as 4% to $370.40 per thousand board feet, representing a fresh low for 2022 and its lowest level since June 2020. The essential building commodity is now down 68% year-to-date and is off 79% from its record high reached in May 2021, when strong demand for homes was compounded by supply chain issues. The weakness in lumber largely stems from this year’s deceleration seen in all facets of the housing market, as soaring mortgage rates helped slow down sales, rein in home price growth, and put a serious dent in homebuilder confidence.

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Prices of raw materials purchased in Canada fell 0.8% in November 2022

Statistics Canada
December 19, 2022
Category: Finance & Economics
Region: Canada

Prices of products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI), declined 0.4% month over month in November and were 9.7% higher than in November 2021. Prices of raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Price Index (RMPI), fell 0.8% on a monthly basis in November 2022 and increased 8.0% year over year. …The price of softwood lumber (-2.8%) fell for a fourth consecutive month in November. Year over year, softwood lumber prices were down 11.3%, the largest decline since June (-38.8%). Lower lumber prices were partially attributable to a cooling housing market in the US and Canada amidst rising interest rates. …In the US, the primary market for Canadian softwood lumber, October housing starts fell by 4.2% month over month and 8.8% year over year.

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US Housing Starts Fall for a Third Month, Building Permits Drop

By Reade Pickert
Bloomberg Investing
December 20, 2022
Category: Finance & Economics
Region: United States

New US home construction continued to decline in November and permits plunged as high borrowing costs paired with widespread inflation eroded housing affordability and demand. Residential starts decreased 0.5% last month to a 1.43 million annualized rate. Single-family homebuilding dropped to an annualized 828,000 rate, the lowest since May 2020. Applications to build, a proxy for future construction, decreased 11.2% to an annualized 1.34 million units. Permits for construction of one-family homes fell 7.1% to the weakest pace since 2020. …Multifamily starts increased, while permits for new construction declined to a more than one-year low. Groundbreakings on single-family homes dropped in the South and Midwest, while permits declined in three of four regions. Meanwhile, the number of homes completed jumped nearly 11% to an annualized 1.49 million, the highest since August 2007 and a sign builders are making greater progress on backlogs amid a demand pullback.

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The Box Boom is Breaking Down

By Ryan Dezember
The Wall Street Journal
December 19, 2022
Category: Finance & Economics
Region: United States

Prices for containerboard, the material that is folded into shipping boxes, declined for the second straight month, according to Fastmarkets RISI’s PPI Pulp & Paper Week, a trade publication that sets benchmarks by surveying buyers and sellers. Prices dropped $20 a ton, or about 2.2%, in December. It was the same decline as in November, which was the first time containerboard had gotten cheaper since the summer of 2019. Containerboard prices soared to records during the pandemic e-commerce explosion, but lately easing demand, ample inventories and new production capacity have forced big box makers, such as International Paper, to curtail output in hopes of balancing the market. [END]

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US total printing-writing paper shipments decreased 1% in November

The American Forest & Paper Association
December 16, 2022
Category: Finance & Economics
Region: United States

WASHINGTON – The American Forest & Paper Association released its November 2022 Printing-Writing Monthly report. According to the report, total printing-writing paper shipments decreased 1% in November compared to November 2021. U.S. purchases of total printing-writing papers increased 13% in November compared to the same month last year. Total printing-writing paper inventory levels increased 9% when compared to October 2022. Uncoated free sheet (UFS) paper shipments remained essentially flat…U.S. purchases of coated free sheet (CFS) papers in November increased 22%… Coated mechanical (CM) paper shipments increased 5%…U.S. purchases of uncoated mechanical (UM) papers in November increased 5% compared to last November

In related news: AF&PA’s US packaging papers shipments down 9 percent in November

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Fuel price increases are especially poignant for the trucking industry

Forests2Market Blog
December 20, 2022
Category: Finance & Economics
Region: United States

The forest products supply chain is an interlinked network comprised of timberland owners, loggers, truckers and manufacturers. …Loggers and truckers are the critical links that connect forest raw materials to the mill facilities that utilize them. Even a temporary disruption in these links can cause cascading impacts that will be felt at the mill level, and longer-term disruptions can cause structural issues that erode sector health over an extended period. The interruption of this delicate relationship—in combination with labor shortages and worsening inflation—has stressed the forest products supply chain from the woods to the mill over the last year. Fuel prices are now rising once again, impacting everyone’s finances via increased costs that are driving prices for everything higher. This increase is especially poignant for the trucking industry… the immediate challenge is ensuring that all stakeholders across its value chain remain viable. 

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US Builder Confidence Falls For 12th Straight Month, Rate of Decline Eases

By Robert Dietz
NAHB – Eye on Housing
December 19, 2022
Category: Finance & Economics
Region: United States

Builder confidence in the market for newly built single-family homes posted its 12th straight monthly decline in December, dropping two points to 31, according to the NAHB/Wells Fargo Housing Market Index (HMI). This is the lowest confidence reading since mid-2012, with the exception of the onset of the pandemic. …The latest survey shows 62% of builders are using incentives to bolster sales. …But with construction costs up more than 30%… there is little room for builders to cut prices. …The silver lining is that it is the smallest drop in the index in the past six months, indicating that we are possibly nearing the bottom of the cycle for builder sentiment. …NAHB is expecting weaker housing conditions to persist in 2023 and we forecast a recovery coming in 2024.

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Wood, Paper & Green Building

Change is here: Canada’s ban on certain harmful single-use plastics starts to take effect this month

By Environment and Climate Change Canada
The Government of Canada
December 17, 2022
Category: Wood, Paper & Green Building
Region: Canada

Canadians want to see an end to the harmful impacts of plastic pollution on nature and wildlife and the time to act is now. …the Government of Canada reaffirmed its steadfast commitment to address plastic pollution and protect biodiversity here at home, and around the world. The Government of Canada announced the next important steps in the ban on harmful single-use plastics. Effective December 20, 2022, the manufacture and import for sale of the following harmful single-use plastics in Canada will be prohibited: checkout bags, cutlery, foodservice ware made from, or containing, problematic plastics that are hard to recycle, stir sticks, straws (with some exceptions). The ban on the manufacture and import of ring carriers will enter into force in June 2023.

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Mission Secondary woodworking class receives $24,000 mill from city

By Dillon White
Mission City Record
December 16, 2022
Category: Wood, Paper & Green Building
Region: Canada, Canada West

Mission Secondary School recently saw a new addition to its woodworking department. A new $24,000 portable saw mill was purchased for the school by the City of Mission with profits from the Forestry Reserve. The city presented the school with a large $24,000 cheque on Thursday (Dec. 15) and had an opportunity to start up the mill. The new equipment will provide students with hands-on experience cutting lumber and an opportunity to work on special projects. The mill was assembled by a student named Campbell as part of his grade 12 capstone project under the guidance and direction of woodworking teacher Brad Unger.

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Tallest mass timber building in Denver breaks ground in 2023

By Dawn Hammon
Inhabitat
December 19, 2022
Category: Wood, Paper & Green Building
Region: United States, US West, US East

Denver, Colorado is about to get … the tallest mass timber building in the city, which will break ground summer 2023. …the 12-story “Return to Form” building will provide residential housing with a total of 84 dwellings. …The architectural firm Tres Birds, …is optimistic about the future of mass timber as a viable and sustainable building material. The technology uses trees with a small diameter that are harvested from sustainably-managed forests to ensure renewability and health of the resource. …“The recent development of mass timber construction allows us — for the first time in history — to design high-rise building structures out of a renewable resource: trees,” said Michael Moore, founder of Tres Birds. …The design is attracting attention with Tres Birds and the development team winning the 2022 Mass Timber Competition: Building to Net-Zero. The “Return to Form” project will share in a $2,000,000 prize sponsored by the Softwood Lumber Board and USDA Forest Service.

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Forestry

Negotiators reach nature deal at COP15 despite objections from African countries

Canadian Press in Prince George Citizen
December 19, 2022
Category: Forestry
Region: Canada, International

Steven Guilbeault 

MONTREAL — Canada and nearly 200 other countries now have eight years to set aside almost one-third of their land and marine territories for conservation under a landmark new biodiversity deal reached in Montreal on Monday. Host nation China’s environment minister, Huang Runqiu, declared the deal to be done at around 3:30 a.m., prompting a standing ovation from participants at the COP15 summit. “This is a historic moment,” Huang said through a translator in Montreal, where the nature talks were held due to challenges resulting from COVID-19 restrictions in China. Canada’s environment minister, Steven Guilbeault, called it “a bold step forward to protect nature, to protect the air that we breathe, the water that we drink.” …The negotiations were hampered by an impasse between developed nations, who were insisting on the 30 by 30 target, and developing nations who accused wealthier countries of setting high ambition without offering enough cash to help pay for it.

Additional coverage:

COP15 statement from Canada’s Minister of Environment and Climate Change – Environment and Climate Change Canada

Climate Proof Canada applauds adoption of Kunming-Montreal Global Diversity Framework – by Climate Proof Canada

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Dependence on forestry a mistake

Letter by Peter W. Rusland, North Cowichan
Cowichan Valley Citizen
December 19, 2022
Category: Forestry
Region: Canada, Canada West

Dear Mayor Rob Douglas and council: While applauding council’s wisely supportive role in talks about tragic job losses — and potential tax shortfalls — at Catalyst’s Crofton mill, this dire situation (Cowichan Valley Citizen Dec. 15, 2022) points, in part, to our dismal failure to diversify North Cowichan’s forest-based economy. Forestry’s fickle fortunes could also reduce work at local Western Forest Products’ operations, council has learned. In short, struggling taxpayers may face hefty tax hikes as many of our economic eggs sit in the basket of a mill owned by market-driven Paper Excellence. …Much of this dark forecast should have been tackled by council and Economic Development Cowichan decades ago. Foresight and planning were sorely lacking to direct diversification away from forestry alone, and into value-added industries, manufacturing, eco-tourism, and other sunrise economic developments.

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North Cowichan leads the way on community forestry

Letter by Rob Fullerton, co-manager of WhereDoWeStand.ca
Cowichan Valley Citizen
December 19, 2022
Category: Forestry
Region: Canada, Canada West

The public consultation into the Municipal Forest Reserve has generated considerable debate in the local paper and social media. Healthy discussion is good. But it’s also important at this critical time that people have factual information upon which to base their opinions. Note that the public came out in full force to attend the forest review online workshops and the open house at the Maple Bay Fire Hall. …All four forest management scenarios were treated fairly and the participants were free to express our opinions. The public discussion has shifted from a logging vs. no-logging debate to a much more nuanced discussion of ecology and modern forestry management practices. …Our professional forester Shaun Mason RFP and the UBC Forestry partnership also receive credit for working together and showing a willingness to explore all available forest management options. …If you haven’t filled out the North Cowichan Community Forest Management Survey you can find it online here.

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Complete municipal forest survey to resume logging

Letter by Robert Beard, director, BC Forest Discovery Centre
Cowichan Valley Citizen
December 19, 2022
Category: Forestry
Region: Canada, Canada West

The private lands that make up the Municipal Forest Reserve were initially logged in the early part of the last century. The municipality acquired these lands for the non payment of municipal taxes in the depression years of the late 1920s and the 1930s. …In the 1960s the lands were put under a regime of sustained yield forest management and timber harvesting. In the early 1980s a forestry advisory committee, made up of professional foresters and lay people, was established to guide the management of these forest lands. The result is our Municipal Forest Reserve… Unfortunately there is now a very active group opposed to harvesting on … the Forest Reserve lands. The “Where do we stand” group and supporters are very actively campaigning against timber harvesting. If you support continuing the sustained yield management of the municipal forest lands and the sustained long term harvesting of timber, please complete the survey.

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Supporting Indigenous economic reconciliation through partnerships

By Harold Reimer, Finning Canada
Canadian Forest Industries / Wood Business
December 19, 2022
Category: Forestry
Region: Canada, Canada West

Harold Reimer

As British Columbia starts to move away from traditional governance to one of reconciliation, B.C. First Nations will play a key role in the industry’s future. Recent changes to government legislation and policies in the forestry sector will increase tenure for First Nations communities, allowing greater opportunity to experience economic benefits that come from resources being harvested on traditional and territorial Indigenous land. …Collaborative initiatives and partnerships between First Nations and industry are already creating new jobs and opportunities, but more can be done. Building relationships through reconciliation, rather than governance, is key. …Equipment and technology dealers can offer support through purchase and lease arrangements – structuring deals to ensure a better process is followed and crucial after sales support is provided. …Here are some steps the forestry sector can take to help support the communities in which they operate. 

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Sawmillers a tale of love, sabotage and life at the mill

By Patrick Davies
100 Mile Free Press
December 17, 2022
Category: Forestry
Region: Canada, Canada West

When you work in a B.C. sawmill, you are bound to meet a few colourful characters. Barry Porter has met his fair share of most while employed for 30 years at a Canfor sawmill in Chetwynd. That experience is the basis for his debut novel, Sawmillers. “After all those many years in the sawmill, you meet a lot of interesting people and see a lot of interesting things happen. Some are shocking, some are tragic but there’s a lot of humour so I decided to write a fictional novel about it,” said Porter, who now lives in 108 Mile Ranch. “I wanted to tell a story about the kind of people you might work with.” …Sawmillers follows Rob, a young millwright apprentice, on his first week on the job. Most of the book takes place in the Peace River area but Porter also included a few chapters set in 100 Mile House when Rob visits his parents. Available on Amazon.

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Canadian Institute of Forestry creating centralized hub for urban forestry data Social Sharing

CBC News
December 20, 2022
Category: Forestry
Region: Canada, Canada East

Mark Pearson

The Canadian Institute of Forestry wants to make it easier for people to access and compare urban forestry data from across the country. The institute, which is based in Mattawa, recently received funding from Natural Resources Canada for its Open Urban Forests project. The project will gather open-source geospacial forest data from municipalities across Canada, and compile that data in a centralized hub on the institute’s website. The data will provide information on details like tree cover, number of trees planted, carbon storage, and long-term trends in urban forestry.  “By ensuring that urban forestry geospatial data is more accessible, we are making it easier for communities across Canada to expand urban forests,” said Jonathan Wilkinson, minister of natural resources. The institute’s executive director, Mark Pearson, said the institute aims to have the centralized data hub up and running by March 2024. 

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Amazon, P&G Fall Short on Environmental Paper Goals, Group Says

By Daniela Sirtori-Cortina
BNN Bloomberg
December 20, 2022
Category: Forestry
Region: United States

Companies from Procter & Gamble to Walmart are lagging in efforts to mitigate environmental impact from the paper products they make and sell, according to a new report from an advocacy group. Environment America assessed the progress of six companies on their use of virgin fibers and indirect greenhouse-gas emissions. The group also looked at whether they obtained consent from Indigenous communities. …Walmart was given an F because it doesn’t disclose how many products are made with 100% recycled fiber or other non-virgin wood. …The other three companies given a failing grade for similar reasons were Costco, Amazon and privately-held Georgia-Pacific. …P&G, which received a D, released a bamboo toilet paper product this year, which the advocacy group said is a “step in the right direction.” In a response to the report, Georgia-Pacific said it follows guidelines on forest protection and sustainable practices. 

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Lula’s Climate Actions Must Match His Rhetoric

Bloomberg in the Washington Post
December 19, 2022
Category: Forestry
Region: International

“There is no climate security for the world without a protected Amazon,” Brazil’s president-elect, Luiz Inácio Lula da Silva, said in Egypt last month. He’s right: Limiting global warming requires saving the planet’s largest rainforest, which shriveled under outgoing president Jair Bolsonaro. To reverse the damage, Lula needs the world’s help — and must convince more Brazilians that fighting climate change is in their interest too. In terms of planetary health, Bolsonaro’s tenure was disastrous. …As a candidate, Lula blasted Bolsonaro’s environmental record for harming Brazil’s image. He’s promised to host a summit of Amazon rainforest nations … like Indonesia and the Democratic Republic of Congo, which also have large tropical forests, hoping to secure more generous international assistance for conservation efforts. …Lula said, “I didn’t come back to do what I did already. I came back to do more.” Strong words. What the planet needs now is action.

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Carbon, Climate & Bioenergy

New video promotes Canada and Japan climate collaboration

By Gordon Murray, executive director
The Wood Pellet Association of Canada
December 19, 2022
Category: Carbon, Climate & Bioenergy
Region: Canada, International

One of the highpoints of British Columbia’s recent trade mission to Japan was the excitement created by the Wood Pellet Association of Canada’s video that underscores how the long-standing trading relationship between our countries has evolved to tackle climate change. Canada and Japan: Working Together for a Brighter Future was showcased during a high-profile event that brought our many valued Japanese customers together with representatives from industry, the B.C., Canadian and Japanese governments and First Nations. Japan’s commitment to achieving net zero greenhouse gas emissions by 2050 has increased the importance of sustainability and traceability through the entire supply chain, and the video makes clear Canadian wood pellets are a perfect fit and a vital pillar of B.C.’s forest products trade with the nation.

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Province orders Nova Scotia Power to use biomass to generate electricity

By Michael Gorman
CBC News
December 19, 2022
Category: Carbon, Climate & Bioenergy
Region: Canada, Canada East

Nova Scotia Power will use more biomass to generate electricity for the next three years, under regulatory changes by the province that are angering environmentalists and being lauded by the forestry industry. The changes to renewable electricity regulations in the Electricity Act that were announced Monday call for the utility to purchase 135,000 megawatt hours of renewable energy in 2023, 2024 and 2025, which is all but certain to come from biomass. …”This is just a really terrible announcement for the environment,” said the Ecology Action Centre’s Ray Plourde. …Plourde pointed to a recent decision by the government of Australia to no longer consider electricity generated by biomass as renewable energy. …But Natural Resources Minister Tory Rushton said sawmills around the province have lots of wood chips and other byproducts from forestry operations that can be used to meet the new requirements. The regulations prohibit cutting whole trees to generate electricity.

Also in the Halifax Examiner: Nova Scotia amps up burning of biomass for electricity

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What is ‘monetizing carbon credits’? And how would it work?

By Mark Sabbatini
The Juneau Empire
December 19, 2022
Category: Carbon, Climate & Bioenergy
Region: United States, US West

Instead of Alaska getting a third of its money from oil, imagine somebody paying that much for the state not to log its forests. Gov. Mike Dunleavy is envisioning such a future — which in reality would involve other “green” earnings to reach that sum — and predicting substantial debt as the alternative. His 10-year plan released last week along with his proposed budget for the coming fiscal year projects annual deficits exceeding $1 billion a year by 2029 unless the state is earning $900 million a year by 2027 from ”monetizing carbon credits.” …There’s no specific plans for getting such funds. Also, no other state relies on such funds as a key element of their budget. …It’s not as far-fetched as, say, counting on cryptocurrency to save the day. Carbon offset transactions in the U.S. increased to more than $1 billion in 2021 and by 2030 the market could be anywhere between $5 billion and $50 billion.

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UK’s old trees critical to climate change fight

By Victoria Gill
BBC News
December 20, 2022
Category: Carbon, Climate & Bioenergy
Region: International

UK forests lock away twice as much planet-warming carbon as previously thought, a new study reveals. The study using lasers and 3D scanning showed that old trees in particular were critical to fighting climate change. …An accurate calculation of the amount of carbon trapped in UK woodland could help inform decisions about how to manage it – in addition to highlighting the cost to the environment of losing that woodland. …It showed that a patch of UK forest weighs about twice as much as previous calculations suggested. …And the complex structure of mature trees in particular means they play a role that is very difficult to replace by simply planting more trees. “The value you have in large mature trees is almost incalculable, and so you should avoid losing that at any cost – regardless of how many trees you think about planting,” said Prof Mat Disney, from UCL. 

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