A US Senate bill is hailed as a milestone in the fight against climate change. The climate bill includes cash for parks & forests, as well employment for remodellers and union members. Elsewhere: a report on Quebec’s climate adaptation efforts; Michigan state sells its first carbon credit: a story on multi-fatality lighting strikes; the tragic loss of Kathy Shooman—a fire lookout in California; and wildfire updates from Canada; along the Montana/BC border; and in California and Newfoundland.
In Business news: Mercer’s new log measurement system; a Q&A with Derek Nighbor; Nelson Bennett on BC forest company earnings; a new biochar plant in Virginia; and Q2 earning reports by Louisiana Pacific; Rayonier Advanced Materials; Enviva; and WestRock.
Finally, Vancouver Island’s Lucky Lager love, and paper pregnancy tests to replace plastic.
Kelly McCloskey, Tree Frog Editor
B.C.’s big three forestry giants had lumber and other wood product sales of $6.5 billion in the second quarter of 2022, and net income of $1.4 billion, according to second quarter financials. While second quarter earnings were down compared to Q1, due to lower lumber prices, demand and prices for lumber were still strong in the second quarter. B.C.’s biggest forestry company, West Fraser Timber reported sales of $2.9 billion in the second quarter, and earnings of $762 million, which was down from $1 billion in earnings in the first quarter. Canfor reported Q2 sales of $2.2 billion and net income of $373 million. Interfor reported sales of $1.4 billion and net income of $270 million. West Fraser rewarded shareholders with a major share buyback worth $1.5 billion. …Canfor reported paying $96 million in American softwood lumber duties for the first half of 2022. Interfor reports paying $82 million in American duties in the first half of 2020; West Fraser reports paying $43 million.
TORONTO — It would seem that the softwood lumber trade dispute between Canada and the United States has been going on forever. The trade dispute has been going on since 1982 when the U.S. lumber industry petitioned the U.S. Department of Commerce to impose a duty on the product. Since then, it has been constant back and forth between governments to find a fair solution to the trade. …Although both Graydon Smith, Minister of Natural Resources and Forestry, and Vic Fedeli, Minister of Economic Development, Job Creation and Trade claim that they support the U.S. Department of Commerce’s decision to lower the duty rate on Canadian softwood lumber, they still maintain that there be no duty rates at all. “The Ontario government maintains that all duty rates should be removed immediately,” the state continues. …The trade dispute will continue as long as the unfair duty on the export of softwood lumber is imposed.
After two years of increases, materials prices are stabilizing, but energy uncertainty and rising interest rates are keeping project costs high Global construction consultancy firm, Linesight recently released new data showing that stability may be returning to the cost of construction materials as pandemic-driven volatility subsides, but because of factors such as high global energy prices, increasing interest rates, labor shortages, and fuel and freight costs, the reduction in commodity prices won’t be felt until the beginning of 2023. …Among the key findings in the report are… Lumber prices fell sharply in early summer and are expected to fall 12% by the third quarter as demand from the residential sector fell. However, tariffs on Canadian lumber and low inventory are expected to keep some upward pressure on prices for the remainder of 2022.
ST. CATHARINES, ON
CHARLOTTESVILLE, Va. — The Virginia Department of Forestry is offering $900,000 in grant funding for tree-planting efforts this fall and in the spring of 2023. The funding is part of the Virginia Trees for Clean Water Grant Program, which is designed to improve water quality across Virginia by encouraging tree-planting projects of all types. The cycle of grant funds will be used for projects this fall and next spring. Grants may be awarded to civic groups, communities, local governments, tribal organizations, non-profit organizations, neighborhood associations, public educational institutions, state agencies and volunteer groups.
Following decades of disappointment, environmental activists celebrated Sunday’s narrow vote in the U.S. Senate for the nation’s biggest investment, by far, in the fight against climate change. Should the the Inflation Reduction Act pass the House, possibly later this week, and receive President Joe Biden’s signature as expected, it would devote $369 billion toward efforts to reduce the country’s greenhouse gas emissions and mitigate climate change. Multiple scientific models show it should cut U.S. greenhouse gas emissions by about 40% by 2030, leaving the nation within striking distance of national and international goals to reduce emissions 50% by that year. “If it (passes)… it will mark a true milestone in the United States,” said Daniel Swain, a climate scientist at the University of California, Los Angeles. “It will be the first legislation in history that will clearly and tangibly reduce carbon emissions at a national scale.”
Michigan is home to nearly 4 million acres of state-owned forests. That land is critical to the state’s forest product industry, and also generates revenue through tourism, hunting and fishing. But now, these trees will be at the center of a new industry: forest carbon markets. …Carbon credits give landowners a way to make money by not cutting down their trees. And it gives companies a chance to offset some of their emissions by buying those credits. Anew has helped set up the first ever carbon credit project based in a state-owned forest. …The first customer to buy these credits from Pigeon River Country will be DTE – an energy company based in Detroit. The utility now offers their 1.3 million customers an option to pay extra on their natural gas bill. On a gas bill that looks like an extra $4 to $16 each month.
