Daily News for June 09, 2022

Today’s Takeaway

Canada announces federal carbon offset market

The Tree Frog Forestry News
June 9, 2022
Category: Today's Takeaway

Panned by ENGOs, the new federal carbon offset program will target big industrial emitters. In related news: logging’s carbon footprint is said to be understated; two US scientists say we shouldn’t wait to protect old forests; and Caterpillar shareholders seek GHG transparency. On the Market front: lumber futures slide again; volatile markets hit Alberta industry; the paper industry struggles as printers face shortages; Catalyst transitions to food grade papers; and delivered wood costs rise in the Lake States. 

In other news: digging into Canada’s 2 billion tree promise; US Forest Service Chief to testify on 2023 budget; Auburn University hosts CLT conference; and the battle over logging native forests heats up in Australia.

Finally, the Gorman Group branches out with new on-site vineyard!

Kelly McCloskey, Tree Frog Editor

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Business & Politics

Central Alberta lumber industry riding volatile markets

By Paul Cowley
The Red Deer Advocate
June 8, 2022
Category: Business & Politics
Region: Canada, Canada West

ROCKY MOUNTAIN HOUSE, Alberta — Central Alberta’s lumber industry has had an interesting ride lately. Soaring lumber prices boosted profits but the industry also faced a range of challenges — from B.C.’s floods and the pandemic to supply chain and transportation issues. Area representatives for West Fraser provided Rocky Mountain House town council an update on the company’s operations. West Fraser operates a laminated veneer lumber plant near and a sawmill and treated wood plant through subsidiary Sundre Forest Products. “Lumber has been quite a volatile ride here pricing-wise,” said Sundre Forest Products GM Bruce Alexander. …One of the benefits of having the sawmill and LVL plant is the 240 workers between the two plants can be shifted around as needed. “That’s a huge win for us.”

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Paper Excellence receives $4.5 million in funding from the Investments in Forest Industry Transformation Program

Paper Excellence Canada
June 8, 2022
Category: Business & Politics
Region: Canada, Canada West

Richmond, BC – Paper Excellence is pleased to have received $4.5 million from the Investments in Forest Industry Transformation (IFIT) program. This funding will help support an important transformation project taking place at our Catalyst Port Alberni mill. The $4.5 million will be invested at Catalyst Port Alberni to expand the mill’s production capacity for food packaging papers. Traditionally, this mill produced printing and writing grades; however, demand for these products has been in steady decline. Transitioning to food grade papers means meeting growing market demand, providing sustainable alternatives to single-use plastic serving containers, and advancing BC’s circular economy. The new grades will be produced using unique pulping capabilities developed at the Catalyst Port Alberni mill that net a higher yield in fiber use. As a result, the mill will be able to increase the amount of food packaging materials it produces but will use less residual wood fibre to do so.

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Gorman sawmill branching out with new on-site vineyard

By Ron Seymour
The Kelowna Daily Courier
June 8, 2022
Category: Business & Politics
Region: Canada, Canada West

If Gorman Group decides to again reward its employees with an unexpected bonus, the cheques may be accompanied by some unique wines. A new 24-acre organic vineyard is being planted on Gorman family-owned land right next to the mill in West Kelowna, reclaiming part of a hillside burned in a forest fire last August. “We’re supposed to be good land stewards and yet we had this big barren hillside right at our mill. We thought, ’Surely we can do something better on it’,” Nick Arkle, Gorman’s CEO. …Almost 50,000 vines are being planted with eight varieties of grapes. Millworker Craig Galloway, a Gorman family member, is overseeing the operation, assisted by viticulture expert Reid Jenkins. Gorman Group announced this week it was giving its hourly workers bonuses of up to $5,000 to help them with the rising cost of living.

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Finance & Economics

Paper industry in transition as printers face shortages

By Mark Hahn
Printing Impressions
June 8, 2022
Category: Finance & Economics
Region: Canada, United States

As a result of the changes occurring in the paper industry, many printing and packaging companies are struggling to procure the paper they need, the grades they require, at the time they would like, and in a sufficient quantity necessary to fulfill customer orders. This is an abrupt turnabout for many companies that have… always been confident that the required paper substrates would be available on a just-in-time basis. …At least for the foreseeable future, those days of paper plenty are over. Printing and packaging company owners are spending considerable time every day just procuring needed paper stock. …Price increases have become routine, which must be passed on to customers who have and will consider other alternative (electronic) communication choices. 

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Lumber price gets chopped in half amid chill in housing markets

By Jen Skerritt
BNN Bloomberg – Commodities
June 8, 2022
Category: Finance & Economics
Region: Canada, United States

Lumber futures slid to the cheapest since September as rising interest rates put a damper on the housing market. Lumber futures fell as low as US$568.40 per 1,000 board feet in Chicago on Wednesday, extending a slump to about 50 per cent this year. Higher interest rates and soaring home prices are starting to put the brakes on home sales, according to Bloomberg Intelligence. “The drag is things like inflation and mortgage rates are way up now,” said Russ Taylor, president of Russ Taylor Global in Vancouver. “That’s going to affect the new entry homeowner and it’s causing people to have second thoughts.” The commodity’s collapse is a stark reversal from all-time highs set in 2021 during a pandemic-fueled homebuilding boom. U.S. home prices are up 42 per cent since the start of the pandemic, which coupled with a rate hike is making housing unaffordable.

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Delivered Wood Prices Spike in the Lake States Amid Inventory Crunch

By John Greene
Forests2Market Blog
June 9, 2022
Category: Finance & Economics
Region: United States, US East

After spending the better part of two years in the doldrums – a period which saw a significant dropofff in demand due to the closure of two large regional paper mills – delivered wood fiber prices in the Lake States have turned significantly higher in 2022. Prices are up 10% since the beginning of 1Q2022 and are now at their highest point in more than three years, and the trend shows no signs of abating. The Lake States normally experiences an increase in total delivered price in April/May as woodyards are emptied and a secondary freight charge is realized on wood deliveries. However, Forest2Market data indicates that mills in the Lake States have been holding noticeably less offsite inventory over the last two winters compared to historical trends. This suggests that the recent increase in price is driven more by market supply issues driven by increasing costs.

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Residential starts rise slightly in May

By Carl Brown
Housing Today UK
June 9, 2022
Category: Finance & Economics
Region: International

UK – The underlying project value of residential starts has risen 13% in May, according to Glenigan. The construction market data firm said the value of housing starts in the three months to May was £2.58bn, up from £2.26bn in the overlapping period in the three months to April. However, the value of housing starts is 26% down on the £3.4bn for the same quarter last year and shows development activity in 2022 so far at a significantly lower level. Private housing starts increased 45% in the three months to May compared to the three months to April, but are still down 23% year-on year. Social housing starts fell 23% against the last quarter and are 32% down on the same period in 2021.

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Wood, Paper & Green Building

Here’s Why Mass Timber Could Be a Game Changer for the Building Industry

By Kristen Mosier
Bob Vila.com
June 8, 2022
Category: Wood, Paper & Green Building
Region: United States

With building materials being a significant contributor to carbon emissions and sustainable solutions becoming more pressing, eco-friendly construction alternatives are more important than ever. While commonly used for framing homes, wood is now finding its way into the structure of arenas, skyscrapers, and multifamily buildings in the structurally robust form of mass timber. Recently, the International Building Code combined and updated the codes regarding heavy timber and mass timber, allowing for it to span greater distances in length and height due to new innovations. Beyond its structural ability, mass timber construction is most exciting because of its sustainable nature and potential negative carbon impact. …Mass timber can also make use of undesirable trees, helping to thin out crowded forests and make room for better forestry practices in the future.

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Auburn University hosts first cross-laminated timber conference in southern U.S.

By Jamie Anderson, College of Forestry and Wildlife Sciences
Auburn University Newsroom
June 8, 2022
Category: Wood, Paper & Green Building
Region: United States, US East

Jeff Peters

The Auburn University College of Forestry, Wildlife and Environment, in partnership with several other academic colleges and administrative offices, recently hosted the first cross-laminated timber, or CLT, conference in the southern United States… The three-day event, titled “The Sustainable Future of CLT in the South: Grow. Design. Build.,” was held April 27-29, with over 160 attendees participating from across the country… The conference featured renowned experts in forestry, building sciences, engineering and architecture and design who shared the latest CLT research, trends and developments in the South. …An expert panel discussion, led by Jeff Peters, southeast regional director of WoodWorks Wood Products Council, delved into answering numerous questions surrounding CLT. “It was great to have the diverse industry expertise of Derek Ratchford of Smartlam North America and Jeff Morrow of Timberlab Inc. to weigh in on this topic,” said Peters.

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Forestry

Shrubs? Plants? Digging into the feds’ 2 billion tree promise

By Natasha Bulowski
National Observer
June 8, 2022
Category: Forestry
Region: Canada

Despite its name, the federal government’s two billion trees program is not being used exclusively to plant trees. Some of the money has gone toward shrubs and plants, according to data obtained by Canada’s National Observer through an access-to-information request. Two forestry professors say the data reveals shrubs like blackberries and raspberries were planted in Ontario under the program, which was launched in 2021 to up Canada’s tree cover. The data comes from planting reports… “They have said that they’re planting two billion trees … and instead planting two billion plants of various forms,” said Andrew Almas, an assistant forestry professor at the University of British Columbia. “…they shouldn’t represent it as being the same thing.” …Natural Resources Canada’s statement clarified that the program will cover up to 15 per cent of total project costs for shrubs that will help protect trees or are a native species and an “essential component for habitat restoration objectives.”

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The surprising reality check on positioning logging as a low-carbon sector

By Michael Polanyi, policy and campaign manager at Nature Canada
The Hill Times
June 8, 2022
Category: Forestry
Region: Canada

Michael Polanyi

In 2019, more than three-quarters of a million hectares of forests were logged in Canada—the equivalent of more than nine NHL hockey rinks every minute. Logging removes vast amounts of carbon from forests—the majority of which ends up in the atmosphere within a year or two. But the federal government’s latest National Inventory Report (NIR) states that net greenhouse gas emissions from human activities in forests were slightly less than zero in 2020. …In other words, Canada considers the forestry sector to have minimal emissions. Accordingly, Canada’s new 2030 Emissions Reduction Plan does not even discuss ways to reduce emissions from logging. How can large-scale logging, which mostly involves clearcutting of carbon-rich primary forests, be carbon neutral? There is a growing recognition that this scientifically implausible claim rests on biased forest carbon accounting policies that are hiding the true climate impacts of logging. …It’s time, therefore, for Canada to stop falsely portraying logging as a low-carbon sector… [A subscription to the Hill Times is required to read access this full story]

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I watched my mom get arrested at a logging blockade

By Louis Bockner
The Narwhal
June 9, 2022
Category: Forestry
Region: Canada, Canada West

Even before my mother was arrested I knew the day wouldn’t go as planned. RCMP officers were coming to enforce an injunction and break up a camp positioned near the bottom of a forest service road, near Kaslo, B.C. …I was there as a photojournalist to document what happened… Police officers gathered at the bottom of the road shortly after 8 a.m., approaching the roughly 35 people… …Shortly after a pre-recorded message stating anyone blocking the road was liable to be arrested under an injunction on the loudspeaker stopped, the camp’s appointed police liaison became the first arrested, followed closely by the legal observer. …My mother was the fifth or sixth, taken away after asking to leave while standing on the shoulder of the road. I bit my tongue, took a photo of her hunched, 75-year-old body being escorted away, and scribbled in my notebook. 

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RCMP arrest two individuals for violating a court-ordered injunction near Argenta

The Boundary Sentinel
June 8, 2022
Category: Forestry
Region: Canada, Canada West

KASLO, BC — Kaslo RCMP said that two more individuals have been arrested for violating a court-ordered injunction granted to Cooper Creek Cedar Ltd. RCMP said Cooper Creek Cedar was granted a court-ordered injunction on August 27, 2019, to conduct logging operations in an area known as Salisbury Creek near Argenta, located approximately 41 kilometers north of Kaslo. The order specifically prevents anyone from physically preventing, restricting or in any way physically interfering with… the logging and related operations in and around the area known as Salisbury Creek. …RCMP said since officer enforcement of the court-ordered injunction began on May 17, 2022, the RCMP have arrested a total of 19 individuals, all for Civil Contempt of Court.

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We can’t wait to protect old forests

By Norman Christensen and Jerry Franklin
The Hill
June 8, 2022
Category: Forestry
Region: United States

On Earth Day 2022, President Biden signed an Executive Order for actions to capitalize on the ability of forests… to combat climate change. We applaud this action, but the Biden administration now needs to follow through and adopt durable, science-based forest conservation measures. Biden’s executive order seeks to conserve mature and old-growth forests on federal lands, curb global deforestation and deploy nature-based solutions that reduce emissions and build resilience to a rapidly warming planet. …As scientists who have spent decades studying forests. ..The Biden administration should act quickly to complete the forest inventory and risk analysis and move forward with an agency-level rulemaking that ensures the long-term conservation and restoration of old-growth and mature forests. …Until the policy is finalized, it is critically important that the administration immediately put interim restrictions on logging of mature and old forests on federal public lands nationwide.

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Forest Service Chief to testify before Congress June 9

By Bill Gabbert
Wildfire Today
June 8, 2022
Category: Forestry
Region: United States

Randy Moore

Forest Service Chief Randy Moore is scheduled to testify Thursday June 9 at 10 a.m. EDT before the full Senate Committee on Energy and Natural Resources. It will be live streamed, and a link will likely appear on the Committee’s website. The primary purpose of the hearing is to examine the President’s budget request for the U.S. Forest Service for Fiscal Year 2023 which begins in October. There is no doubt that some of the Senators will use the opportunity to question Chief Moore about the progress, or lack thereof, to implement the firefighter pay raises signed into law by President Biden eight months ago as part of the Infrastructure Investment and Jobs Act. …The Chief’s written testimony for Thursday’s hearing is already posted and includes: $321 million for hazardous fuels reduction; $1.15 billion for Wildland Fire Management Salaries and Expenses; $1.68 billion for National Forest System Salaries and Expenses…

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Letting forests grow old will soon be allowed under Vermont’s Current Use Program

By Abagael Giles, Grace Benninghoff and Kevin Trevellyan
Vermont Public Radio
June 9, 2022
Category: Forestry
Region: United States, US East

VERMONT — A new law will make it easier for some landowners to let their forests grow old — by making them eligible for a tax break. It marks a historic change to Vermont’s Current Use Program. For the last 40 years, the program has let landowners who keep their properties out of development pay a lower tax rate. In most cases — until now — that land had to be used for agriculture or timber harvest to qualify. But in the face of climate change, some say letting forests grow old should also count as part of our working landscape. [Audio] VPR’s Grace Benninghoff spoke with climate and environment reporter Abagael Giles about what’s changing.

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Georgia Honors ‘Forestry For Wildlife’ Partners

By Georgia Department of Natural Resources
Georgia Outdoor News
June 8, 2022
Category: Forestry
Region: United States, US East

GEORGIA — Gov. Brian Kemp recognized three corporate forest landowners Monday for their stewardship and land management practices benefiting wildlife across Georgia. Georgia Power, Weyerhaeuser and CatchMark Timber Trust are DNR’s 2022 Forestry for Wildlife partners. Administered by the Georgia Department of Natural Resources’ Wildlife Resources Division, the Forestry for Wildlife Partnership is a voluntary program that has promoted sustainable forest and wildlife conservation in forestry practices for 25 years. Partner projects focus on making improvements that sync with Georgia’s Bobwhite Quail Initiative and State Wildlife Action Plan, two statewide strategies. …The work of this year’s partners benefited wildlife on nearly 1 million acres. ..All conservation enhancement components and reporting procedures in the Forestry for Wildlife Partnership are compatible with Sustainable Forestry Initiative.

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Andrews government’s forestry bill puts logging over liberties

By Daniel Cash, president of Lawyers for Forests
The Age, Australia
June 9, 2022
Category: Forestry
Region: International

The Andrews government is proposing alarming increases to penalties for peaceful protesting and citizen science surveying in Victoria’s native forests. The Sustainable Forests Timber Amendment Bill 2022 has just been introduced to the Victorian lower house. The bill proposes doubling the penalties for non-violent direct action and citizen science surveying in areas designated for logging or Timber Harvesting Safety Zones. The proposed changes mean protesters attempting to prevent or disrupt native forest logging in Victoria would face a whopping 12 months’ jail, or $21,000 in fines. …Minister for Regional Development and Agriculture, Mary-Anne Thomas, takes aim at “dangerous” protesters: “We want to make sure workers go home to their families each day”. As president for Lawyers for Forests, I have handled dozens of cases involving protest activity in Victoria’s native forests and I am not aware of a single instance of protesters preventing forestry workers from going home safely to their families.

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Native forest logging to continue as NSW North Coast Wood Supply Agreements extended

By Alexandra Jones and Madeleine Cross
ABC News Australia
June 8, 2022
Category: Forestry
Region: International

The NSW Agriculture Minister has signalled the government has no plans to phase out logging of native hardwood in state forests. Key points: All North Coast Wood Supply Agreements have been extended until 2028; The Agriculture Minister says selective harvesting of native forests is a renewable industry and does not plan to phase out the practice; Critics say the contracts are ‘reckless’ and unsustainable post-bushfires and further threaten the habitats of endangered animals. The state government announced a five-year extension of North Coast Wood Supply Agreements last week. Minister Dugald Saunders said all agreements due to end next year had been renewed in order to provide “certainty” for the industry to “invest in their businesses”. …Despite assurances, some critics argue the agreements are economically and environmentally untenable and leave taxpayers exposed to financial risk.

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Carbon, Climate & Bioenergy

Big industry can lower carbon pricing costs as feds launch first offset credit market

By Mia Rabson
The Canadian Press in the Times Colonist
June 8, 2022
Category: Carbon, Climate & Bioenergy
Region: Canada

Steven Guilbeault

OTTAWA — Canada’s first federal carbon offset market kicked off Wednesday as the final piece of the puzzle in the carbon price for big industry takes shape. But climate activists say it simply makes it cheaper for big industry to keep polluting. …Voluntary markets have existed for years, as private companies raised capital for emissions-reducing projects like wind farms and tree planting. …Compliance markets are newer and allow entities that pay a carbon price to lower the amount of emissions they must cover by buying credits from a regulated market. …BC, Quebec and Alberta have some compliance credit systems already but there was not one at the national level until now. …For now, only municipalities that install new methane capture systems at landfills will be part of the new compliance market. Over the next year, the government intends to add projects that cut emissions from forests and soil management on farms.

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Red Rock Biofuels Holdings, Inc. Awarded U.S. Forest Service Wood Innovations Grant

By Red Rock Biofuels Holdings, Inc.
Business Wire
June 8, 2022
Category: Carbon, Climate & Bioenergy
Region: United States, US West

FORT COLLINS, Colo.–Red Rock is pleased to announce that it has received a Wood Innovations Grant from the U.S. Forest Service to fund its project to convert post-fire charred waste woody biomass to sustainable aviation fuel & renewable diesel fuel. “We founded Red Rock more than a decade ago to decarbonize transportation and help mitigate wildfire. Since that time, demand for sustainable aviation fuel (SAF) has grown exponentially and wildfires in the western U.S. and around the world have grown in frequency, size and intensity. We’re pleased to work with the U.S. Forest Service on this project to convert post-fire charred waste woody biomass present across the U.S. west into valuable SAF”, commented Red Rock’s Co-founder and CFO, Jeff Manternach. …Red Rock’s project with the U.S. Forest Service aims to utilize the increasingly abundant post-fire restoration material to produce low-carbon SAF and diesel fuel.

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96% of Caterpillar Shareholders Vote in Support of Climate Action — A Critical Development in Decarbonizing Industrials Sector

By SHARE (The Shareholder Association for Research and Education)
Cision Newswire
June 8, 2022
Category: Carbon, Climate & Bioenergy
Region: United States, US West

BERKELEY, Calif. – Today at Caterpillar’s annual general meeting, 96% of investors (based on the company’s preliminary tally) supported a shareholder resolution filed by As You Sow, Amalgamated Bank, Canada Post, and SHARE. The resolution asks management to release a report disclosing interim and long-term greenhouse gas targets aligned with the Paris Agreement’s goal of maintaining global temperature rise at 1.5°C, and progress made in achieving them. Targets should cover Scope 3 emissions from customer use of products that combust fuels for operation, which account for a vast majority of value-chain emissions. “Today’s majority vote is a loud and clear call from Caterpillar’s ownership that the company must address its significant climate impact and step into a leadership position in decarbonizing the industrials sector,” said Ivan Frishberg, chief sustainability officer at Amalgamated Bank.

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Forest Fires

Stanley Mission begins evacuating those at risk from forest fire smoke

Saskatoon StarPhoenix
June 8, 2022
Category: Forest Fires
Region: Canada, Canada West

A wildfire  near the community of Stanley Mission has prompted authorities to begin evacuating residents with health conditions. A notice from Emergency Management Officer Maurice Ratt was posted posted Wednesday to various social media accounts operated by the Lac La Ronge Indian Band (LLRIB), along with local radio and other outlets, It stated that the Stanley Mission Emergency Operations Centre was beginning evacuations of people with heart and respiratory problems, elders over 65, children under 5 and those needing prenatal care. The notice stated these individuals were being evacuated due to smoke, and the proximity of the fire to the community, while noting the Saskatchewan Public Safety Agency (SPSA) doesn’t consider the blaze an immediate threat to the community.

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Emergency declared as huge wildfire near Marbella causes hotel evacuations

By David Clark
UK Mirror
June 9, 2022
Category: Forest Fires
Region: International

A huge forest fire on the Costa del Sol has led to hotel evacuations and left people fleeing their homes near the popular holiday resort of Marbella. High temperatures and strong winds in the Malaga province have stoked the blaze, which has been declared a level two emergency by local officials. The Sun reports that at least three firefighters have been injured while tackling the inferno, including one who suffered 25 per cent burns to their body. More than 60 people have been evacuated from properties in the Montemayor area of Benahavis, according to reports, with flames and smoke reportedly visible from Marbella.

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