Daily News for April 21, 2021

Today’s Takeaway

CN ups bid, vies with CP Rail for Kansas City Southern

April 21, 2021
Category: Today's Takeaway

Canadian National Railway’s bid for Kansas City Southern spurs bidding war with Canadian Pacific Railway. In other Business news: West Fraser, FPInnovations and Miller Western are among 17 receiving Alberta innovation grants; and Stora Enso is closing two nordic paper mills. Meanwhile: lumber prices reach stratospheric heights, but could tumble by half in 2021.

On the eve of Earth Day, research scientist Steve Colombo says forestry has a powerful role in climate solutions. Meanwhile: professor Justin Catanoso criticizes BC’s old-growth strategy; Karen Brandt defends Pinnacle’s use of residual logs; and NRDC takes another run at Canada’s forest industry. Elsewhere: a new carbon market pays Southern Pine growers to defer logging; and the US is helping Peru modernize its forestry sector.

Finally, a US patent is awarded for wood-grained polymer lumber, made from recycled plastics!

Kelly McCloskey, Tree Frog Editor

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Special Feature

The History of Earth Day

EarthDay.com
April 21, 2021
Category: Special Feature
Region: International

Every year on April 22, Earth Day marks the anniversary of the birth of the modern environmental movement in 1970. Let’s take a look at the last half-century of mobilization for action: Earth Day 1970 gave a voice to an emerging public consciousness about the state of our planet. In the decades leading up to the first Earth Day, Americans were consuming vast amounts of leaded gas through massive and inefficient automobiles. Industry belched out smoke and sludge with little fear of the consequences from either the law or bad press. Air pollution was commonly accepted as the smell of prosperity. Until this point, mainstream America remained largely oblivious to environmental concerns and how a polluted environment threatens human health. …As 1990 approached, a group of environmental leaders approached Denis Hayes to organize another major campaign for the planet and Earth Day went global, mobilizing 200 million people in 141 countries and lifting environmental issues onto the world stage.

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Business & Politics

Wood you believe it? Pandemic sends lumber costs skyrocketing

By Max Martin
The Toronto Star
April 20, 2021
Category: Business & Politics
Region: Canada

Cooped up at home and looking to lay down a little lumber in a DIY project, maybe a new deck, home addition or some nice shelving?  Expect to get whacked.  Canada is one of the most forested countries on the planet, but surging demand for wood — much of it from a hot housing market — and mill shutdowns amid the COVID-19 pandemic have combined to squeeze supplies and send prices soaring.  Softwood lumber prices were up almost 119 per cent in March from the same month a year earlier, when the pandemic began, the largest year-over-year price increase since Statistics Canada began tracking wood prices more than six decades ago.  “Lumber prices have more than doubled in the last year,” said Sue Wastell, president of the London Home Builders’ Association.  …“Builders across Canada and the United States are busy, so I don’t see demand slowing down,” she said. 

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CN Rail Chief Pounces While Kansas City Southern Is in Play

By Thomas Black and Derek Decloet
Bloomberg in Yahoo Finance
April 20, 2021
Category: Business & Politics
Region: Canada, United States

Canadian National Railway offered $30 billion to snatch Kansas City Southern from a rival, spurring a possible bidding war in one of the industry’s biggest potential deals in decades. The bid of $325 a share consists of $200 in cash and 1.059 Canadian National shares for each share of Kansas City Southern. …Tuesday’s offer tops a $25 billion deal Kansas City Southern reached with Canadian Pacific Railway last month. Canada’s two biggest railroads are vying for a rail network that links their country with the U.S. and Mexico as a reworked trade alliance gets underway and the economic recovery from the Covid-19 pandemic gathers steam. Kansas City Southern’s sprawling system… reaches deep into Mexico. …Canadian Pacific attacked the bid in a written statement Tuesday afternoon. “Canadian National’s proposal is illusory and inferior because it creates adverse competitive impacts and raises other serious public interest concerns.” 

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Dionne says promised P.A. forestry manufacturing facility still waiting for provincial approval

By Alison Sandstrom
Prince Albert NOW
April 20, 2021
Category: Business & Politics
Region: Canada, Canada West

Greg Dionne

PRINCE ALBERT, Saskatchewan — Six months after he announced a massive forestry manufacturing facility was “ready to build” in Prince Albert, Mayor Greg Dionne says the project is still waiting for provincial approval. “The City of P.A. and the developer, we’re all on side”. “What we’re doing is we’re 100 per cent waiting for the province.” Dionne announced the facility, which he said could employee upwards of 750 people, during the fall municipal election campaign. At the time he told paNOW there was just one final condition that needed to be complied with to make the project a reality and he expected it be completed imminently – as early as the beginning of November. Half a year later, Dionne said the facility continues to be his ‘number one priority’ but the province is still working out issues with the timber supply for the potential facility.

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Shuttered Quesnel sawmill to reopen amid building boom

By Courtney Dickson
CBC News
April 20, 2021
Category: Business & Politics
Region: Canada, Canada West

The former C&C Wood Products mill in Quesnel, B.C., that closed in May 2020 will reopen this month as new owner Kandola Forest Products hopes to cash in on a building boom that has swept the country during the COVID-19 pandemic.   “We see enormous potential in this facility,” said Kandola Forest Products president and CEO Neal Kandola.   “C&C is famous in the industry for panelling and shiplap products and we’re looking to build upon that.”  Kandola, which is based south of Quesnel in Williams Lake, expects to employ at least 90 local people by the end of 2021, including some former employees of the C&C mill, many of whom haven’t had work since the mill shutdown last spring.  In the coming years he expects they could employ upwards of 185 people.  

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$33 million announced to advance technology innovations in Alberta’s agriculture, agri-food, and forestry sectors

By Emissions Reduction Alberta
GlobeNewswire
April 20, 2021
Category: Business & Politics
Region: Canada, Canada West

EDMONTON, Alberta — 17 technology innovations will receive funding from the Government of Alberta through Emissions Reduction Alberta (ERA). Alberta’s Minister of Environment and Parks, Jason Nixon, announced the winners on Tuesday. …“This investment, driven by the TIER regulation, will help advance innovative processes and technologies to support the province’s bioeconomy and reduce emissions.” …They include:

  • West Fraser – Product and Production Innovations for Using Alberta’s Surplus Poplar to Enhance Carbon Sequestration. Total project value: $1,600,000 | ERA commitment: $500,000.
  • Flash Forest  – Commercial Pilots and Demonstrations of Rapid Drone. Reforestation Technology. Total Project value: $5,450,000 | ERA commitment: $1,800,000. 
  • Steeper Energy Canada Ltd. The Conversion of Forestry Residue to Advanced Biofuels in Alberta. Project value: $12,610,000 | ERA commitment: $5,000,000. 
  • ATCO — RNG from Pulp Mill Waste. Project value: $18,670,000 | ERA commitment: $5,000,000. 
  • FPInnovations — Bio-sourced asphalt from the Canadian forest industry. Project value: $1,250,000 | ERA commitment: $350,000.
  • Millar Western Forest Products Ltd. — Application of Artificial Intelligence at Pulp Refiners to Optimize Energy Usage and Product Quality. Project value: $1,460,000 | ERA commitment: $730,000. 

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Seventeen projects will receive $33 million in provincial funding to reduce emissions in the food, forestry and agriculture industries

By Dylan Short
The Edmonton Journal
April 20, 2021
Category: Business & Politics
Region: Canada, Canada West

An Edmonton-based forestry company is one of 17 businesses benefiting from a $33-million investment from the Alberta government aimed at reducing greenhouse gas emissions from the forestry, agriculture and farming industries. Millar Western Forest Products is receiving a $730,000 grant from the province, through Emission Reduction Alberta to incorporate artificial intelligence into their pulping process in an attempt to reduce their energy consumption at a Whitecourt mill. Janet Millar said the artificial intelligence will help place large metal plates involved in separating fibers in wood chips into pulp. …“This project will allow us to better and more rapidly reposition those plates as needed to make sure that they are more energy efficient in the way they operate.” …She said the streamlined process will also result in a better quality product for their customers. Overall, the project is expected to remove 23,000 tonnes of greenhouse gas emissions per year from the process.

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France’s wood sector welcomes plan to bolster industry

By Clara Bauer-Babef
Euractiv.com
April 21, 2021
Category: Business & Politics
Region: International

The move to update the strategic contract, known as CSF, was announced by France’s agriculture, housing and industry ministers on Monday (19 April).  “The fact that three ministers have been mobilised is already a very important sign of interest”, said Nicolas Douzain, delegate general of the French National Wood Federation (FNB).  Key among the measures to be taken is the opening of a call for expressions of interest (AMI) for the development of wood products and innovative wood construction systems, Douzain said. This good step is to help develop an industry largely forgotten in recent years, he added.  “The RE2020 [a new environmental regulation for new buildings] will generate demand, and therefore more consumption of building timber,” he added. 

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Stora Enso to close Swedish and Finnish paper mills

Lesprom Network
April 20, 2021
Category: Business & Politics
Region: International

Stora Enso will start co-determination negotiations with employees at its Kvarnsveden Mill in Sweden and Veitsiluoto Mill in Finland regarding a plan to permanently close down pulp and paper production at both mills. The planned closures would take place during the 3Q 2021, and affect directly 670 people in Finland and 440 people in Sweden. The planned mill closures would reduce Stora Enso’s paper production capacity by 35% to 2.6 million tonnes per year. Both Kvarnsveden and Veitsiluoto mills are loss-making, and their profitability is expected to remain unsatisfactory also going forward. The sawmill at Veitsiluoto would continue operating at the site under the Wood Products division and employ some 50 persons. Stora Enso would aim to sell its shares (50%) in the port operator Kemi Shipping Oy.

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Finance & Economics

Lumber prices could tumble to $600 by year end, but volatility rules current trading

By Kim Khan, Lumber Futures
Seeking Alpha
April 20, 2021
Category: Finance & Economics
Region: Canada, United States

Lumber futures continue their wild ride, trading limit down today after going limit up in the previous session. Futures fell the max $48 per 1,000 board feet, off 3.6% to $1,278.70. But lumber prices are still up around 50% year to date and have tripled since the start of 2020. …Prices could be due for a sharp fall when supply ramps up, according to Capital Economics commodities analyst Samuel Berman. “All told, we forecast that the price of U.S. lumber will plummet to $600 and $550 per 1,000 broad feet by end-2021 and end-2022, respectively, as domestic supply surges and imports remain strong”. …But RBC analyst Paul Quinn is looking for futures prices to remain above $1,000 until at least late July. Overall, “market participants continue to have a favorable outlook for pricing levels given strong demand, low inventories, and the inability for supply to catch-up in the near-term,” he wrote.

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Softwood lumber prices reach stratospheric heights

By Keta Kosman, Madison’s Lumber Reporter
Madison’s Lumber Reporter
April 20, 2021
Category: Finance & Economics
Region: Canada, United States

Shock and disbelief resonated throughout the North American forest products industry as solid wood construction framing building material prices surpassed expectations and just kept going up. It is a frustrating situation for sawmills as supply remains well below extremely hot, indeed unabated, demand. …By all accounts sawmill order files are now well into May, while panel mills are currently quoting into August. This is beyond unprecedented. …Not only did #2&Btr 2×4 R/L soar another +$70 to US$1,130 mfbm while #3/Utility 2×4 reached $1,000, sawmills were apparently sold out at those mind-blowing prices almost immediately. …Compared to the price one-year-ago, when it wasUS$310 mfbm, that week’s price is up by +$820, or +265%. Compared to two years’ ago when it was $348, that week’s price is up by +$782, or +225%.

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Wood, Paper & Green Building

Studio Spotlight: Fast + Epp – Elevating Mass Timber Design

Think Wood
April 21, 2021
Category: Wood, Paper & Green Building
Region: Canada

With over three decades of expertise and experience in structural design, Fast + Epp is a proud early adopter of mass timber construction. Mass timber presents a number of opportunities for design teams who are willing to venture outside of traditional construction methods. For the right project, and with the right team in place, a mass timber building can be a commercial success that stands out from the crowd. Case in point? Fast + Epp’s innovative new company headquarters. The first office building in Vancouver, BC to use mass timber as a structural material, the new headquarters has given Fast + Epp an incredible opportunity to experiment with new construction technologies in their own space. Fast + Epp is at the forefront of a mass timber movement, showing the world the possibilities mass timber unlocks for the built environment’s future. Learn about five mass timber projects in the Studio Spotlight.

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Tangent Announces Patent for Wood-Grain Polymer Lumber

By Tangent
Cision Newswire
April 21, 2021
Category: Wood, Paper & Green Building
Region: United States

AURORA, Illinois — Tangent, a supplier of durable recycled plastic lumber products, announced the receipt of U.S. Patent No. 10,981,350 for its wood-grain polymer lumber, which Tangent brought to the market in 2016. This utility patent covers internal woodgraining for polymer lumber and sheet products sold in the US. This new patent brings Tangent’s total up to five, including others for the wood-grained appearance of its polymer lumber. Guy De Feo, CEO of Tangent Technologies… “We’ve engineered materials that use recycled plastics.” …The plastic lumber looks like traditional lumber, is available in seven woodgrain colors, industry leading finishes and is primarily sourced from post-consumer and post-industrial recycled HDPE. …The lumber is by a limited 50-year warranty. 

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Forestry

Forestry has powerful role in climate solutions

By Steve Colombo, environment, climate change and forest management consultant
Winnipeg Free Press
April 21, 2021
Category: Forestry
Region: Canada

Steve Colombo

As we celebrate Earth Day, options for reducing climate change will be the focus… However, an important part of the discussion should be about our forests, their contribution to climate change mitigation and how a healthy forest industry is an essential element of a national emissions reduction strategy. Canada’s large and diverse forests mitigate climate change by removing carbon from the atmosphere and converting it into wood. Many wood products lock stored carbon away for decades and can replace materials with a heavier carbon footprint. When harvested sites regrow, this creates an ever-growing stockpile of carbon in forests and in products that we use in our daily lives. Two questions about the relationship between forestry and forest carbon are: 1. Is harvesting causing Canada’s forests to be a source of carbon emissions? 2. Are wood products a source of carbon emissions?

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With British Columbia’s last old-growth at risk, government falters: Critics

By Justin Catanoso, professor, Wake Forest University
Mongabay
April 20, 2021
Category: Forestry
Region: Canada, International

BC’s ruling New Democratic Party last autumn pledged to conserve 353,000 hectares of old-growth forest. But so far, the NDP has largely failed to act on this pledge, even as forestry companies rush to procure and cut old-growth in the Canadian province. Unless the government acts quickly on its commitment, BC’s last old-growth could be gone in as little as 5-10 years say some forest ecologists. In addition, intense logging could mean that Canada is not going to meet its Paris Climate Agreement carbon-reduction goals. While the NDP promised a new policy boosting forest perseveration over forestry, critics say that — despite its rhetoric — the government continues to prop up an industry in decline to help rural communities in need of jobs. While it’s not now cutting BC old-growth, activists worry over the acquisition by U.K. Drax Group of Pinnacle Renewable Energy and its seven BC pellet mills.

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Firecats expand to US

By Jon Manchester
Castanet
April 21, 2021
Category: Forestry
Region: Canada, Canada West

Coldstream Helicopters has expanded its Firecat wildfire fighting services to the United States. The Okanagan company announced on its Facebook page that it has entered into a contract to provide Airbus AS 332L1 Firecats to Precision (Helicopters) LLC of Oregon while helping support and converting Precision’s own fleet to fight forest fires. Robert Gallagher, president and CEO of the Coldstream Group of Companies, and David Rath, CEO of McMinnville, Ore.-based Precision and affiliated companies announced the collaboration. “The joint project is designed to augment and bolster U.S. Forest Service, CalFire and other state forest agency Type 1 helitanker requirements this summer,” Gallagher said in the post. The aircraft are are able to move up to 18 firefighters quickly to a fire scene at 309 km/h and provide immediate close air support with 10,000 pounds of water to protect communities.

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No New Money for Old Growth Protection in BC’s Budget

By Amanda Follett Hosgood
The Tyee
April 20, 2021
Category: Forestry
Region: Canada, Canada West

Despite calls to end old-growth logging in B.C. and government promises to overhaul its forestry practices, there is no new funding for that transition in the budget announced today. Instead, the ministry responsible for B.C.’s forest management will see an overall drop in funding over the next three years. The budget comes seven months after the province released a strategic panel review on old-growth logging, which called for a paradigm shift to prioritize ecosystem health over the timber supply and recognize values like biodiversity, clean water and cultural resources. The report made 14 recommendations that would totally overhaul the management of old-growth forests, starting with grounding the system in a government-to-government framework involving both the provincial and Indigenous governments. …In the throne speech delivered two weeks ago, Lt. Gov. Janet Austin noted that economic growth in B.C. has often come at the expense of the environment.

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Pellet producers defend raw material use

By Rod Link
Houston Today
April 21, 2021
Category: Forestry
Region: Canada, Canada West

Pellet producers are defending themselves against accusations they’re grinding up whole logs that have better use elsewhere and, when subsequently burned as pellets, add to greenhouse gas emissions.  The accusation comes through a study released by the Canadian Centre for Policy Alternatives that examined provincial government wood sales records, backed up by photos of log yards in the north, including Smithers, Houston and Burns Lake.  “Whole trees, indeed whole tracts of forest, are being logged with the express purpose of turning trees into a product that is then burned,” wrote study author Ben Parfitt.  Using whole logs goes against the foundation principle of pellet plants which is to use waste from sawmills, waste from logging or wood not considered suitable for sawmills or pulp mills as raw material.

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An old-growth forest is not a renewable resource

Letter by Miel Creasey, from the traditional territory of Tla’amin Nation
Powell River Peak
April 20, 2021
Category: Forestry
Region: Canada, Canada West

Where can we assume the NDP is currently sitting on implementing number one and six of the Old Growth Review? Number one being that the province provides funding and support for First Nations communities to diversify their economies and transition away from the need to harvest old growth stands on their traditional territories in order to gain financial independence. …Number six of the review was an immediate protection of most at-risk old-growth ecosystems to avoid the impacts of irreversible biodiversity loss. An old-growth forest is not a renewable resource. …The conflict I see arising within the Pacheedaht territory, where the band council chief has spoken out publicly against Fairy Creek blockade presence but the community is divided and unconsulted on the issue, seems reminiscent of a divide and conquer tactic that has been used for centuries. …Indigenous consultation should not be used as a tactic to fit industry and government agendas.

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Peru, U.S. agree to join efforts for modernization of forestry sector

Andina.pe
April 21, 2021
Category: Forestry
Region: United States, International

The Governments of Peru and the United States on Tuesday signed a MoU that will enable the development of joint actions for the modernization of the Peruvian forestry sector through sustainable, inclusive, responsible, and profitable economic growth. Besides, it will increase the impact and efficiency of initiatives aimed at combating illegality, strengthening forest governance and the relationship with the private sector, as well as promoting an inclusive market. …Concerning the importance for the Government of Peru, Prime Minister Bermudez highlighted the fact that our nation is one of the 17 most megadiverse countries around the world. “We are the second country with the most Amazonian forests in the world after Brazil.” …Unfortunately, there is a constant threat to this valuable natural resource, which is deforestation, Bermudez indicated.

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Canadian Logging Trade Group Opposes Anti-Deforestation Bills

By Anthony Swift, director, Canada Project
Natural Resource Defense Council Blog
April 20, 2021
Category: Forestry
Region: United States

Forest Product Association of Canada (FPAC) claims that applying proposed anti-deforestation legislation in California and New York to the boreal forest would threaten its business model. In the face of the rapid loss of our planet’s remaining intact forests, legislators in California and New York have introduced bold and essential measures to address the states’ role in driving the loss of these vital forests. While this legislation would take a meaningful step to protect intact forests and the rights of Indigenous Peoples across the world, FPAC is doing its best to stop these bills, claiming that boreal countries’ practices have no place in a bill address unsustainable logging. …The boreal forest is the most carbon-dense forest ecosystem in the world—acre for acre it stores nearly twice as much carbon as tropical rainforests. Contrary to claims by FPAC… these bills would allow any sourcing from boreal forests that is done sustainably.

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Linn County wades into another timber lawsuit

By Troy Shinn
The Albany Democrat-Herald
April 20, 2021
Category: Forestry
Region: United States, US West

Linn County is wading into another timber lawsuit, this one related to sales of burned trees in the Santiam State Forest. The Linn County Board of Commissioners discussed the topic briefly during its Tuesday meeting, deciding that it will hire the same attorney, John DiLorenzo, that it used to successfully sue the state of Oregon back in 2019. Only this time, the county and the state will be on the same side. The county’s interest in the lawsuit comes from the fact that it shares in the revenue of state timber sales. Therefore, a freeze on cutting and selling timber would affect local taxing districts that rely, in part, on timber revenues. Officials also say failing to cash in now will hamper future revenues for Linn, Marion and Clackamas counties. “If we don’t act now, we’re going to get very little to nothing in revenue,” said Commissioner Will Tucker.

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California’s mighty Redwood trees in need of help, only 5% of original forest still stands

By Karlene Chavis
CBS News 8
April 20, 2021
Category: Forestry
Region: United States, US West

CALIFORNIA, USA — The Golden State offers a variety of views from the coastline to the greenery in our mountains. But a California staple, the iconic Redwoods, are in need of major restoration to keep our planet thriving and the ecosystem flowing. Last Summer, Chief Meteorologist Karlene Chavis fulfilled a childhood dream of standing before the mighty Redwoods in Northern California. … Chavis was saddened to learn that only 5% of the original ancient forest still stands. But, a new initiative called Redwoods Rising is looking to rebuild these California staples. “The Redwoods are the most magnificent forest we have. Whenever I go out there, I am reminded of just how small I am, and just how constant nature is,” said Richard Campbell, the Director of Restoration for the Save The Redwoods League overseeing this project.  …Their goal is to restore more than 70,000 acres of damaged forest in Northern California.

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Carbon, Climate & Bioenergy

New Carbon Market Pays Southern Pine-Growers Not to Cut

By Ryan Dezember
The Wall Street Journal
April 20, 2021
Category: Carbon, Climate & Bioenergy
Region: United States, US East

Here is a new way for Southern pine growers to get paid for their timber: Leave it standing. Companies eager to offset their emissions are paying Southern timberland owners not to cut more than a million acres of mill-bound pine trees until next year. The idea is that the longer the timber stands, the more carbon the trees can sponge from the atmosphere before becoming two-by-fours and telephone poles. The companies are credited with socking away carbon in wood, measured in metric tons and documented with tradable assets called carbon offsets. Companies buy offsets to scrub emissions from the carbon ledgers they keep to show investors and customers their pollution-reduction efforts. Landowners get a check as long as their trees remain standing. The market’s architect, SilviaTerra, plans to expand its Natural Capital Exchange this summer from Southern pine to hardwood forests there as well as to woods around the Great Lakes. [We respect the copyrights of the source publication – full access may require a subscription]

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Forest Fires

Firefighters, helicopters battling human-caused forest fire on Vancouver Island

CTV News
April 20, 2021
Category: Forest Fires
Region: Canada

VICTORIA — Firefighters on Vancouver Island are battling a large forest fire in a remote area near Gold River.  Donna MacPherson with the Coastal Fire Centre says the eight-hectare fire is still burning out of control Tuesday after firefighters arrived at the site Monday evening.  The firefighters camped near the blaze, which is approximately eight kilometres southeast of Gold River, in the rugged interior of the North Island. Six firefighters and two helicopters have been attacking the flames since early Tuesday morning.  The fire is believed to have been caused by people in the area, MacPherson says.  The location is an active logging area with lots of downed trees and debris.

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