Daily News for September 29, 2022

Today’s Takeaway

Hurricane Fiona adds urgency to climate adaptation strategies

The Tree Frog Forestry News
September 29, 2022
Category: Today's Takeaway

After Fiona, climate experts urge Canada to fix flagship adaptation strategy, including gaps in homeowner insurance. In related news: a new report says adapting to climate change faster will save Canada billions; Stella-Jones helps Nova Scotia restore power; and Canada’s Pension Plan Board flexes its investment muscle. In other Business news: LP Dawson Creek responds to hog fuel fire; and AURELIUS acquires three of Sappi’s EU paper mills.

In other news: Alberta renews its forest management agreement with Tolko, Nobord and La Crete Sawmills; ENGOs urge SFI to retain ban on genetically engineered trees; and an international working group is pioneering a globally applicable carbon credit methodology for mass timber construction.

Finally, when it comes to choosing Industrial Matting, material does matter

Kelly McCloskey, Tree Frog Editor

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Business & Politics

Hurricane Fiona highlights gaps in insurance as climate change worsens, experts say

By Rosa Saba
Canadian Press in Toronto Star
September 27, 2022
Category: Business & Politics
Region: Canada

TORONTO – Many Atlantic Canadian homeowners may be on the hook for a significant portion of the damages to their homes caused by hurricane Fiona due to a lack of insurance covering flooding caused by storms. Residential home insurance policies usually cover wind damage, including falling trees, and certain kinds of water damage, according to Amanda Dean, vice-president, Atlantic, for the Insurance Bureau of Canada. However, they normally require an add-on policy in order to cover floods, she said. These overland flood endorsements didn’t exist in Canada before 2015, she said, when an increasing number of flooding events made it clear that additional coverage was needed. …There are gaps in the Canadian insurance industry when it comes to natural disasters, said Nadja Dreff, senior vice-president of global insurance at DBRS Morningstar.

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After Fiona, climate experts urge Canada to fix flagship adaptation strategy

By Nia Williams
Reuters
September 28, 2022
Category: Business & Politics
Region: Canada

Canada’s first national climate adaptation strategy needs to be improved to include near-term targets and specific solutions ahead of its November release to mitigate worsening global warming impacts, experts advising the government told Reuters in the wake of devastation caused by storm Fiona. Fiona, one of the worst storms to ever hit Canada… is expected to cost between C$300 million and C$700 million in insured losses, compared with C$2.1 billion ($1.6 billion) of insurance damage for severe weather events across Canada last year, according to the Insurance Bureau of Canada (IBC). The destruction comes weeks before Ottawa releases its first ever National Adaptation Strategy (NAS) in early November. …Craig Stewart of IBC said there have been signs the government is improving the NAS before its release and trying to “close the gap” between experts’ recommendations and what Environment Canada officials are proposing by including short-term actions with clear targets.

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Adapting to climate change faster will save Canada billions, new analysis says

The Canadian Press in BC Local News
September 28, 2022
Category: Business & Politics
Region: Canada

Canadians will see lower incomes and a choice between higher taxes or fewer government services if there isn’t more effort to adapt to the changing climate, a report from The Canadian Climate Institute warns. But according to a report, if governments and the private sector start investing in making Canada more resilient to the effects of extreme weather, the economic impact of climate change can be cut by 75%. “The good news story is we have some ability to change this future,” said Ryan Ness. In its analysis, called Damage Control, the institute looked at projected economic growth and analyzed the impact of different scenarios based on how many greenhouse gas emissions are eliminated and what we do to prepare. The worst news is that in every scenario, Canada’s climate is already changing and more severe weather — drought, forest fires, flooding, and damaging storms — is already upon us.

Additional coverage in the Vancouver Sun, by Tiffany Crawford: Climate impacts could tank Canada’s economy without financial support: report

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Dawson Creek Fire Department responds to fire at LP mill

By Shailynn Foster
Energetic City
September 27, 2022
Category: Business & Politics
Region: Canada, Canada West

DAWSON CREEK, B.C. — The Dawson Creek Fire Department received a call Saturday afternoon for a fire at the Louisiana Pacific mill. Todd Pickett, deputy fire chief, says it started in a pile of bark, otherwise known as hog fuel, though the cause remains unknown. …Crews arrived a little after one o’clock and requested forestry assistance as well as mutual aid from the Fire Departments in Tom’s Lake and Pouce Coupe.“LP brought in a dozer and an excavator, and they kind of moved the pile around all the hotspots in the pile,” Pickett said. When crews left around 6 p.m., Pickett says the fire was “well under control,” and LP personnel had a hose line out to continue extinguishing hot spots.

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Stella Jones, a Truro company, is churning out hundreds of utility poles for Nova Scotia Power

CBC News
September 28, 2022
Category: Business & Politics
Region: Canada, Canada East

Stella Jones, a Truro, Nova Scotia, company is playing a key role in restoring power after post-tropical storm Fiona knocked it out for hundreds of thousands Nova Scotia Power customers. Nova Scotia Power is in the process of replacing hundreds of poles damaged in the storm. Stella Jones is the only company in the province that pressure-treats the wood used in utility poles. Most of the poles are made from yellow pine brought in from the southern U.S. The company treats other types of lumber, but right now the focus is exclusively on replacing poles damaged by Fiona. Nova Scotia Power buys 7,500 poles a year, but around 1,000 poles have left the plant per day since the storm hit. [END]

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AURELIUS announces the acquisition of three European paper mills from Sappi

AURELIUS
September 29, 2022
Category: Business & Politics
Region: International

Luxembourg/Munich – AURELIUS announces the acquisition of three European paper mills from Sappi Limited (Sappi). The global company is the leading European producer of coated graphic, packaging, and speciality paper. In FY22, the three sites are expected to generate combined revenues of more than EUR 1 bn. The transaction, which will be executed by AURELIUS’ co-investment structure, is expected to close in Q1 2023, subject to approval by the relevant competition and regulatory authorities. …The carve-out transaction from Sappi’s European business includes sites in Kirkniemi (Finland), Maastricht (The Netherlands), and Stockstadt (Germany), with over 1,400 full-time employees combined. The sites produce paper products that are used in publications (e. g. retail advertising), graphic paper (e. g. annual reports) and graphic boards (e. g. packaging).

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Finance & Economics

US housing recession is already here

By James Knightley
ING
September 28, 2022
Category: Finance & Economics
Region: United States

Rising mortgage rates and a lack of affordability are prompting a steep drop-off in demand for housing. At the same time inventory for sale is on the rise. A combination of falling transactions and prices will intensify the recessionary forces the US economy is facing. In this article:

  • The stimulus-fueled surge in prices looks to be over
  • Affordability is stretched to the limit
  • Demand is capitulating and transactions are slowing
  • Supply is on the rise
  • The Fed wants a correction
  • Recessionary forces are intensifying
  • Negative equity and financial risks are lower than in the Global Financial Crisis
  • Housing downturn opens the door to lower inflation and lower interest rates

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Major Moves in the P&P Industry that Occurred in 3Q, 2022

By Fisher International
Forests2Market Blog
September 29, 2022
Category: Finance & Economics
Region: International

Klabin’s Puma II Project Exceeds Expectations — the Klabin’s Puma II project was initially designed to produce 920,000 tons of kraftliner board annually. However, Klabin decided to  invest in producing Eukaliner – the world’s first kraftliner using 100% eucalyptus fiber.

Global Capacity Growth Rate — the containerboard sector is one of the hottest grades in the market. …Compared to 3Q2020, 3Q2022 (as of September 15) experienced an 8% growth in global capacity. …4Q2022 is expected to exceed 3Q2022 capacity levels.

Stora Enso Acquires De Jong Packaging — Stora Enso recently announced that is acquiring De Jong Packaging Group, based in the Netherlands. …This acquisition will also increase Stora Enso’s corrugated packaging capacity by approximately 1,200 million m2 to more than 2,000 million m2.

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Wood, Paper & Green Building

Sustainable Industrial Matting Solutions

Pacific HemFir
September 28, 2022
Category: Wood, Paper & Green Building
Region: Canada, Canada West

When it comes to choosing Industrial Matting, material does matter. After all, there’s a lot riding on your choice – both figuratively and literally. …Since Access Matting is often used to protect environmentally sensitive areas, it only makes sense that the preferred material would be natural. That’s why wood is such an important material. From forest to finished product, wood is the most environmentally friendly material there is. …Performance-wise Douglas Fir and Pacific HemFir boast virtually the same characteristics. They’re, strong, durable and rot-resistant. In terms of availability and sizing options, however, Pacific HemFir is wood that works! “HemFir is readily available in longer lengths, which means you need less mats for a uniformly distributed point load,” says Doug Carl, who is president of crane mat manufacturer Industrial Timber Products. “It makes a great mat. It drills well and it’s not heavy, which can significantly cut down on freight costs.”

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State proposes making it easier to grade Alaska lumber for local use

Wrangell Sentinel
September 28, 2022
Category: Wood, Paper & Green Building
Region: United States, US West

The Alaska Department of Natural Resources is preparing a new program that would allow Alaska sawmills to sell lumber for local construction without having that wood graded for quality by an Outside inspector. The program was announced by Alaska State Forester Helge Eng on Sept. 13 at Southeast Conference, a gathering of Southeast Alaska political and business leaders. Eng said the program, which may take two years to implement, would encourage the growth of Alaska’s lumber industry by making it easier to use locally produced lumber. Many residential building codes require lumber be graded for strength and quality by a national organization before being used in construction. …The Department of Natural Resources is requesting public input on the proposal. It expects that it will take at least one year, and likely longer, to develop regulations for the program.

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Forestry

Experts Sound Alarm Over ‘Growing Threat’ of Genetically Engineered Trees

By Kenny Stancil
Common Dreams
September 28, 2022
Category: Forestry
Region: Canada, International

A report exposes the “growing threat” of genetically engineered tree development around the world, with researchers urging a leading forest product certification body to maintain its ban on genetic modification. “The global release of genetically engineered trees is close,” states the report,  by the Canadian Biotechnology Action Network and the Campaign to STOP GE Trees. …The report documents where the risk of GE tree use on plantations or release into the wild is most immediate. It comes ahead of the Forest Stewardship Council’s general assembly from October 9-14 in Bali, Indonesia. …[where] members will vote on two motions that, if approved, would help preserve their prohibition on genetic modification. However, “if FSC decides to embrace genetic engineering, it will free the Brazilian pulp and paper company Suzano to begin planting its eucalyptus trees that are genetically engineered to tolerate glyphosate herbicides,” warned Lizzie Díaz of the World Rainforest Movement.

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Alberta renews forest management agreement with Tolko, Norbord and La Crete Sawmills

Ministry of Agriculture, Forestry and Rural Economic Development
The Government of Alberta
September 27, 2022
Category: Forestry
Region: Canada, Canada West

The Government of Alberta has renewed the forest management agreement (FMA) jointly held by Tolko Industries Ltd., Norbord Inc. and La Crete Sawmills Ltd. for the next 20 years in exchange for important stewardship responsibilities. This agreement establishes the companies’ right to grow and harvest Crown timber from a forest management unit in the northwestern corner of the province, surrounding High Level. Over its lifespan, this FMA is expected to maintain more than 1,700 full-time, contract and seasonal positions and will potentially contribute: $48.7 million in holding and protection charge payments, $433 million in timber dues payments, and $6.1 billion to Alberta’s gross domestic product. “The decision to renew this joint FMA helps maintain hundreds of good jobs for Albertans, provides our forest sector with sure footing for their long-term investments and ensures sustainable management practices for Alberta’s forests,” and Nate Horner, Minister of Agriculture, Forestry and Rural Economic Development.

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Gitanyow, B.C. mark milestone in land-use planning

By Ministry of Land, Water and Resource Stewardship
Government of British Columbia
September 28, 2022
Category: Forestry
Region: Canada, Canada West

Representatives of Gitanyow First Nation, including Hereditary Chiefs, and the B.C. government are celebrating 10 years of a landmark land-use plan that has reduced land-based conflicts and guided sustainable development in Gitanyow’s territory. In 2012, under the Gitanyow Huwilp Recognition and Reconciliation Agreement, Gitanyow and the Province agreed to the Gitanyow Lax’yip Land Use Plan, which lays out the Nation’s vision for lands in their territory, including appropriate uses. The visionary plan led to a collaborative process between Gitanyow, neighbouring Nations, B.C. and stakeholders that put the plan into effect through the landscape-level Nass South and the Cranberry Sustainable Resource Management Plans. …“Skeena Sawmills endorsed the Gitanyow Lax’yip Land Use Plan in 2012, and it guides our forest management activities in Gitanyow Territory, including forest planning, road construction, timber harvesting and silviculture in Gitanyow Territory,” said Greg DeMille, vice-president of operations for Skeena Sawmills Ltd. and Skeena Bionergy. 

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Forest Service proposes young growth timber sale near Thorne Bay

By Reagan Miller
Alaska Public Media
September 28, 2022
Category: Forestry
Region: United States, US West

The U.S. Forest Service is proposing the harvest of up to nine square miles of young growth timber on Prince of Wales Island. It’s part of a years-long transition away from old growth logging in the Tongass National Forest — and some in the timber industry worry they’ll be left behind. One of the project’s main goals is to provide local mills with three years’ worth of timber. That would mean harvesting about 5,800 acres over 15 years. It’s a haul worth somewhere between $7 and $10 million. The agency says the Thorne Bay Basin Integrated Management Project would be a much-needed boost to Prince of Wales Island’s timber sector. “There is a need for young growth forest management now to produce future desired resource values, products, services, and forest health conditions that sustain the diversity and productivity of forested ecosystems,” the Forest Service’s plan read.

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Carbon, Climate & Bioenergy

Canada Pension Plan Investment Board flexes its muscle in board rooms around the world to stem climate change

By Barbara Shecter
The Timmins Times
September 28, 2022
Category: Carbon, Climate & Bioenergy
Region: Canada

The Canada Pension Plan Investment Board (CPPIB), which invests on behalf of the country’s CPP pension scheme, used its influence as a major institutional investor to push 35 companies to make “material“ commitments and improvements to climate-related disclosures and practices in the past year, according to its latest report on sustainability investing made public Wednesday. …CPPIB, which invests in public and private companies including direct investments, voted in favour of climate-related shareholder proposals that sought deeper disclosures on topics such as operational emissions management, asset portfolio resilience and public policy, the report said. Richard Manley, managing director, said the approach with public companies in the portfolio is to articulate clearly how the Canadian pension believes sustainability-related factors should be integrated to inform strategy and enhance returns or reduce risks in the business.

 

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Pioneering the first Mass Timber Carbon Removal Methodology

Timber Finance Initiative
September 28, 2022
Category: Carbon, Climate & Bioenergy
Region: International

Seattle, Zurich – The Timber Finance Initiative, Green Canopy NODE, South Pole and Gordian Knot Strategies have joined efforts in creating the first mass timber carbon credit methodology. They are developing a globally applicable carbon credit methodology for mass timber construction in Verra’s Verified Carbon Standard (VCS) GHG crediting Program. Verra will serve as the independent standard-setter for the methodology. The Working Group …will develop a concept note to be submitted to Verra’s VCS Program… later this year. The final methodology will then be developed by the Timber Finance Initiative and South Pole. A rigorous carbon methodology will help realize the climate value of stored carbon in mass timber construction and help scale mass timber as a negative emissions technology and low-emissions building material. …Sustainably sourced mass timber mitigates climate change twofold: By removing CO2 from the atmosphere and storing it long-term in buildings and by replacing GHG-intensive conventional building materials.

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