Daily News for March 02, 2021

Today’s Takeaway

US residential construction reaches record high in January

March 2, 2021
Category: Today's Takeaway

Residential construction rose 2.5% in January, reaching a record high rate (seasonally adjusted). In related news: total US construction also increased; while rising costs for new homes is pricing buyers out of the market; and Canada’s housing chief acknowledges error in last year’s housing forecast. In other Business news: BC is encouraged to focus on leading export industries to kick-start economy; and China extends tariff exclusion on imported hardwood products.

In Carbon/Climate news: new research says temperate rainforests are altered by climate change; US Carbon Capture Coalition releases policy blueprint; tax credit for wood and pellet heating is signed into US law; Banff Alberta is converting wood waste into energy; and Rayonier quantifies its net positive climate impact.

Finally, Canada’s Ambassador to the US will speak at COFI, while SFPA elects new officers; and Tolko celebrates Orange Shirt Day.

Kelly McCloskey, Tree Frog Editor

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Business & Politics

CMHC boss acknowledges ‘errors’ on last year’s prediction of housing collapse

By Rachelle Younglai
The Globe and Mail
March 2, 2021
Category: Business & Politics
Region: Canada

Evan Siddall

OTTAWA — After months of defending a forecast of plunging home prices and soaring mortgage arrears in 2020, the nation’s housing chief has conceded the prediction was wrong. Evan Siddall, the chief executive officer of Canada Mortgage and Housing Corp., explained how his agency missed the mark. No one foresaw the extent of the discriminatory impact the virus would have on lower-paid workers, many of whom are renters, he said. …“At the time, I felt responsible to share what my colleagues were predicting. Times were uncertain and I felt that a warning about house prices was responsible. “We never pretended to have [a] crystal ball,” he said. …A recent CMHC report on the housing markets of major cities outlined a shift to detached houses, the record low mortgage rates and noted that higher-income households adjusted rapidly to the pandemic. [We respect the copyrights of the source publication – full access may require a subscription]

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Government should focus on strengthening B.C.’s leading export industries

By Jock Finlayson, Business Council of British Columbia
BC Local News
March 1, 2021
Category: Business & Politics
Region: Canada, Canada West

Jock Finlayson

As Premier John Horgan and cabinet explore options to kick-start the economy while the province slowly emerges from the COVID-19 crisis, they have several strategic options to consider. …One way B.C. policymakers can approach the task … is to focus on the fundamental drivers of our prosperity, or what some analysts call the province’s “economic base.” … In a small jurisdiction like B.C., export-oriented industries are vital to sustaining and improving living standards. …Goods sold to other countries are B.C.’s top source of export earnings. Natural resource-based products account for two-thirds of this category, with forestry providing the biggest slice, followed by ores and minerals, energy, and agri-food products. Several of these industries have been spearheading B.C.’s recovery from the pandemic-induced recession, with exports of lumber, minerals and natural gas all rebounding since mid-2020. …Creating an attractive business and investment environment for the industries that comprise B.C.’s “economic base” will be essential…

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Future of former mill site in Kelowna’s north end still up in the air

By Travis Lowe
Global News
February 26, 2021
Category: Business & Politics
Region: Canada, Canada West

It’s been more than a year since Tolko Industries shuttered its Kelowna operations. But just what exactly will happen with the 16-hectare, waterfront site remains one of the city’s biggest speculative real-estate questions. Last year … B.C. Assessment put the value of the Tolko property at $19.1 million. However, MCL Real Estate group put the value of the property at $48 million. And now that demand for residential towers is sky-high, the lot could be worth considerably more. That’s why Tolko has been dismantling the former mill. “A couple of the buildings have been decommissioned; the logs that were stored on site have been moved out,” Tolko communications advisor Chris Downey told Global News. …Tolko is holding its cards close to the chest when it comes to the site’s future. “Obviously a lot of planning behind the scenes, but nothing that has been announced so far,” Downey told Global News. 

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Canada’s Ambassador to the U.S. Kirsten Hillman to Speak at 2021 COFI Convention

Council of Forest Industries
March 1, 2021
Category: Business & Politics
Region: Canada, Canada West

Kirsten Hillman

Vancouver, B.C. – The BC Council of Forest Industries (COFI) is pleased to announce that Canada’s Ambassador to the United States, Kirsten Hillman, will provide a keynote address from Washington, D.C., to delegates at COFI’s annual convention taking place virtually on Thursday, April 8, 2021. “In these early days of a new administration south of the border, we look forward to hearing Ambassador Hillman’s perspective from Washington and her insights into the future of our trade relations, the softwood lumber dispute, and the Canada-U.S. relationship,” said Susan Yurkovich, President and CEO of COFI. Kirsten Hillman was appointed Canada’s Ambassador to the United States on March 26, 2020, having served as Deputy Ambassador since August 2017 and Acting Ambassador since August 2019. …She has led many economic and trade files including softwood lumber.

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Orange Shirt Day Design Contest Winner

Tolko Industries Ltd.
March 1, 2021
Category: Business & Politics
Region: Canada, Canada West

Orange Shirt Society and Tolko Industries Ltd., together with our partner Leading Edge Promo, are pleased to announce this year’s winner of the Society’s art contest, sponsored by Tolko, and to introduce the official 2021 Orange Shirt Day design. Shayne Hommy, a Grade 11 First Nation Cree student at South Peace Secondary School, in Dawson Creek, submitted the winning entry. She said, “Orange Shirt Day means justice and awareness for Indigenous people. My Moosum (grandfather) attended residential school so it means a lot to me that someone I love and care about so much had to experience residential school.” Her design was chosen from entries submitted from across Canada. …“The annual art contest provides students across Canada the opportunity to reflect on Orange Shirt Day and reconciliation,” said Brad Thorlakson, President & CEO of Tolko. “I would like to congratulate Shayne on her winning design, demonstrating the unity of Indigenous peoples, especially girls, in the face of adversity.”

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Hefler Forest Products creditors to meet

The Chronicle Herald
March 1, 2021
Category: Business & Politics
Region: Canada, Canada East

Creditors for bankrupt Hefler Forest Products will meet for the first time Tuesday by conference call. The bankruptcy of the Middle Sackville company, which has run a lumber mill just off Highway 101 that’s been there for decades, occurred Feb. 11, according to a notice from Deloitte Restructing Inc. …Hefler operates a biomass power plant that generates and sells energy to Nova Scotia Power… Hefler has also operated a sawmill intermittently since acquiring the assets, the report states. Since 2017, Hefler is said to have incurred operating losses of $8.6 million… Deloitte says it has been advised that in mid-January, the sole director of Hefler, C. Robert Gillis, resigned, along with the officers, Jason Weston and Candice Blaney. Since then, the plant has been left without any stewardship or funding to continue operations. Hefler has about $6 million in assets and owes about $12 million. [We respect the copyrights of the source publication – full access may require a subscription]

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China extends tariff exclusions on imported hardwood lumber, logs

By Robert Dalheim
The Woodworking Network
March 1, 2021
Category: Business & Politics
Region: United States, International
China will extend tariff exemptions on 65 imported products from the United States. Hardwood lumber and logs made the list. China’s Ministry of Finance announced the decision Friday. The new extension goes until September 16, 2021. “Apparently, U.S. hardwood logs and lumber were the only agricultural products included in the extension,” writes the National Hardwood Lumber Association in a note to its members. “The American Hardwood Export Council is working with the Embassy to clarify all HS codes involved, but they believe it includes most, if not all species, that were originally hit with tariffs.” Of the 65 products, seven are wood products. …China first placed these tariffs in May 2019 as a retaliatory measure. In February 2020, it announced exclusions.
 

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Forest fires out West cause lumber prices to skyrocket here in Georgia

WSB Channel 2 Atlanta
March 1, 2021
Category: Business & Politics
Region: United States, US East

GWINNETT COUNTY, Georgia — The cost of building a new home has spiked and it’s all because of forest fires. Last year’s wildfires out West destroyed millions of acres of trees that were supposed to become 2-by-4s. Now, there has been a huge increase in the price of lumber. Gwinnett County lumber yard owner Michael Johnsa told Channel 2′s Berndt Petersen when he saw what was happening, he knew it would turn the lumber industry upside down. …Last year’s wildfires out West burned through millions of acres of trees that were supposed to end up in the form of lumber for new homes. Prices have skyrocketed. Even a do-it-yourselfer like Ray Phillips told Petersen that wood costs more everywhere.

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Registration to Open for SFPA’s 36th Sawmilling EXPO

Southern Forest Products Association
March 1, 2021
Category: Business & Politics
Region: United States, US East

On April 12, 2021, attendee registration housing blocks will open for the 36th Forest Products Machinery & Equipment Exposition – EXPO 2021. This three-day event will be held in person from August 11-13, 2021 at Atlanta’s Georgia World Congress Center. Advance attendee registration will be available on SFPAexpo.com starting on April 12, and costs just $20 per person. …Sponsored and conducted by the SFPA every two years since 1950, EXPO includes many of the biggest names in the business displaying everything from commercial and portable sawmill machinery to materials handling equipment. …Not only will EXPO be one of the first large events in the industry to take place in person in over a year due to COVID-19, SFPA and Hatton Brown Publishers have announced a collaboration on a sawmill conference to be held in conjunction with EXPO. …As for the show floor, more than 95 companies are set to exhibit.

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Southern Forest Products Association Elects 2021 Board Officers

Southern Forest Products Association
March 1, 2021
Category: Business & Politics
Region: United States, US East

Craig Forbes

The Southern Forest Products Association (SFPA) Board of Directors elected its 2021 slate of officers during its annual meeting which took place virtually on December 9, 2020.  They are Chairman Craig Forbes of Weyerhaeuser Company; Vice Chair Will Lampe of Lampe & Malphrus Lumber Company; and Treasurer Mark Richardson of The Westervelt Company. The Board also elected Eric Gee as Executive Director and Vince Almond of Almond Brothers Lumber Company to serve as Immediate Past Chairman. …The officers assumed their duties immediately upon election with the exception of Eric Gee, who assumed the role of Executive Director on February 1, 2021.

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James Jones & Sons announces the acquisition of GT Timber

Builders’ Merchants News
March 1, 2021
Category: Business & Politics
Region: International

UNITED KINGDOM — James Jones & Sons Ltd has announced the acquisition of GT Timber Ltd, the holding company of Taylormade Timber Products Ltd and Kerr Timber Products Ltd which operate sawmills at Sherburn Hill, Durham and Annan respectively. The acquisition will increase the company’s annual sawn output to 800,000m3, thereby consolidating its position as the UK’s largest privately owned sawmill, timber engineering and pallet manufacturing company. The combined group will operate eight sawlines, supplying the most technologically advanced secondary processing facilities in the UK, and employing 1,225 people.

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Finance & Economics

Private Residential Spending Hits Record High

By Na Zhao
NAHB – Eye on Housing
March 2, 2021
Category: Finance & Economics
Region: United States

NAHB analysis of Census Construction Spending data shows that total private residential construction spending rose 2.5% in January to a seasonally adjusted annual rate of $713 billion, reaching a record high. Total private residential construction spending was 21% higher than a year ago. The monthly gains are largely attributed to the strong growth of spending on single-family and improvements. Single-family construction spending rose to a $376.2 billion annual pace in January, up by 3%. It was 24.2% up from January 2020. Remodeling spending, which include spending on remodeling, major replacements, and additions to owner-occupied housing units, rose 2.3% in January, and was 17.9% over a year ago. Meanwhile, multifamily construction spending inched up 0.7%, but still posted net gains, being 16.9% higher than a year ago.

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US construction spending rose 1.7% in January 2021

The US Census Bureau
March 1, 2021
Category: Finance & Economics
Region: United States

The U.S. Census Bureau announced that construction spending during January 2021 was estimated at a seasonally adjusted annual rate of $1,521.5 billion, 1.7 percent (±0.7 percent) above the revised December estimate of $1,496.5 billion. The January figure is 5.8 percent (±1.0 percent) above the January 2020 estimate of $1,437.7 billion. …Spending on private construction was at a seasonally adjusted annual rate of $1,160.0 billion, 1.7 percent (±0.5 percent) above the revised December estimate of $1,140.9 billion. Residential construction was at a seasonally adjusted annual rate of $713.0 billion in January, 2.5 percent (±1.3 percent) above the revised December estimate of $695.7 billion. Nonresidential construction was at a seasonally adjusted annual rate of $447.0 billion in January, 0.4 percent (±0.5 percent)* above the revised December estimate of $445.2 billion.

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60% of US households unable to afford median prices of new home in 2021

By Na Zhao
NAHB – Eye on Housing
March 1, 2021
Category: Finance & Economics
Region: United States

NAHB recently released its 2021 priced out estimates. The new estimates show that 75.1 million households (roughly 60 percent of all U.S. households) are not able to afford a new median priced new home in 2021, in that their incomes are insufficient to qualify for a mortgage under standard underwriting criteria. If the median new home price goes up by $1,000, an additional 153,967 households would be priced out of the market. These 153,967 households would qualify for the mortgage before the price increase, but not afterward. …More details, including priced out estimates for every state and over 300 metropolitan areas, and a description of the underlying methodology, are available in the full study.

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Forestry

Alberta Wildfire gearing up for 2021 season

By Josh Ritchie
660 News
March 1, 2021
Category: Forestry
Region: Canada, Canada West

CALGARY —Beginning now, running through the end of October, permits will now be required for any debris burning in the province. With the evaporation of snow through the early part of spring brings extremely low moisture which can fuel fires early in the wildfire season. …Last year, Alberta saw 704 wildfires burn just over 3,269 hectares. That’s less than one per cent of total area burned when compared to the five-year average. Eighty-eight per cent of last season’s wildfires were human-caused. Alberta Wildfire will be deploying some new technology this season to help in the firefight, including: Exploring remote camera, drone and satellite technologies for wildfire detection and data collection; and implementing modern remote automated weather stations that provide real-time or hourly data rather than once or twice per day. …Alberta Wildfire also is putting together FireSmart Alberta … giving users information on nearby fires, fire bans, fire dangers, and more.

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Cottonwood Lake fundraiser reaches goal

By Bill Metcalfe
The Nelson Star
March 1, 2021
Category: Forestry
Region: Canada, Canada West

The Cottonwood Lake Preservation Society has raised the $400,000 necessary to purchase 40 hectares of forest from the Nelson Land Corporation. The goal has been to save the land from logging. …The campaign has had more than 1,000 donors, board member Andrew McBurney says, with an average donation of $350. The largest was $10,000 from a business in the region, with several other businesses donating more than 1,000 each. A recent art auction on Instagram raised $9,000. …The next step is for the society to transfer the money to the Regional District of Central Kootenay, which will gain title to the land and then transfer it to an established national conservation organization that is reluctant to have its name used until the ink is dry on all documents.

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Regional District of Nanaimo gets grant for wildfire resiliency planning

The Parksville Qualicum Beach News
March 1, 2021
Category: Forestry
Region: Canada, Canada West

The Regional District of Nanaimo has been approved for a grant of $384,960 for Electoral Area Community Wildfire Resiliency Planning. The Community Resiliency Investment FireSmart grant, funded by the British Columbia government and administered by the Union of BC Municipalities, will enable the RDN to develop new Community Wildfire Resiliency Plans for each of the seven Electoral Areas within the RDN to reduce the risk and impact of wildfires. …Multiple community stakeholder groups will be engaged including First Nation communities, municipal partners, Electoral Area fire departments, BC Wildfire, Mosaic Forest Management, Islands Trust and others. Collaboration with key representatives will ensure that the plan reflects local knowledge and expertise and includes achievable actions that can be implemented under a common vision to reduce the intensity and impacts of wildfires and increase community resiliency.

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New Columbia Basin Trust projects support biodiversity, improve basin ecosystems

By the Columbia Basin Trust
The Castlegar Source
March 1, 2021
Category: Forestry
Region: Canada, Canada West

Columbia Basin Trust is providing $1.35 million to three new, large-scale projects that will improve ecosystems in the Elk Valley and Lower Columbia sub-regions, benefitting locally significant species including northern rubber boas, bull trout and Rocky Mountain elk among others, and their habitats. The Ecosystem Enhancement Program is a five-year initiative that aims to maintain and improve ecological health and native biodiversity in the region through large-scale, on-the-ground projects with significant and measurable impacts. “This program is a model for how we can focus on local priorities by working together with First Nations, regional environmental groups and community champions that have the knowledge and solutions to local ecological challenges in the Basin,” said Johnny Strilaeff, Columbia Basin Trust President and Chief Executive Officer.

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Temperate rainforest’s distinct ecosystems altered by climate change

By Simon Fraser University
Education News Canada
March 2, 2021
Category: Forestry
Region: Canada, Canada West

New research that focuses on the temperate rainforest stretching from California through B.C. to Alaska is helping scientists to understand how coastal environments will be influenced by our changing climate. Research … takes an interdisciplinary approach to evaluating land-sea interactions in the northeast Pacific coastal temperate rainforest (NPCTR) and evaluates the land-to-ocean flow of carbon and nutrients in the NPCTR, their influence on nearshore marine ecosystems, and how these connections are altered by climate change. …”Ecosystems don’t recognize borders,” says SFU forest ecologist Ken Lertzman, professor emeritus, who is part of the research team, along with …scientists from university, federal and provincial research agencies in Canada and the United States. “This is one of the first papers looking at how climate change affects the NPCTR as a whole and asking the big questions about how processes connecting and driving ecosystems will be changed.”

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‘Namgis First Nation partners with the Province of B.C.

By Tyson Whitney
The North Island Gazette
March 1, 2021
Category: Forestry
Region: Canada, Canada West

The ‘Namgis First Nation have signed an agreement to partner with the Province of B.C. on a modernized land use planning approach to manage the integrity of the ecosystems and natural resources in ‘Namgis territory. …Katrine Conroy, Minister of Forests and Don Svanvik, ‘Namgis Chief Councillor, signed a government-to-government memorandum of understanding designed to help sustain the lands, waters, resources and wildlife “in a manner consistent with implementation of the UN Declaration on the Rights of Indigenous Peoples and B.C.’s Declaration on the Rights of Indigenous Peoples Act.” The agreement “will guide land use planning to protect and manage the integrity of the ecosystems”. …The Gwa’ni Project area encompasses more than 166,000 hectares, including the majority of the Upper and Lower Nimpkish Landscape units. Most of the area is within Tree Farm Licence 37, which is held by Western Forest Products.

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Conservation groups sue feds over Castle Mountains project

By Phil Drake
The Helena Independent Record
March 1, 2021
Category: Forestry
Region: United States, US West

MONTANA — Two conservation groups filed a lawsuit Monday in federal District Court against the U.S. Forest Service to halt the Castle Mountains logging and burning project in the Helena-Lewis and Clark National Forest. The Alliance for the Wild Rockies and Natives Ecosystems Council said the project calls for cutting and burning trees on 22,500 acres and bulldozing 45.1 miles of logging roads. Mike Garrity, executive director of the Alliance for the Wild Rockies, said the forest service had ignored serious legal and environmental concerns. …The plaintiffs criticize the defendants about issues such elk habitat, old growth forests, the municipal watershed and whitebark pine, goshawks and inventoried roadless areas. Garrity said the Wild Rockies and Natives Ecosystems Council now had no choice but to take the Forest Service to court.

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The state’s environmental watchdog is muzzled on forests

By Nick O’Malley
The Sydney Mornng Herald
March 2, 2021
Category: Forestry
Region: International

AUSTRALIA — The state’s environmental watchdog is being restrained from taking legal action against the government’s logging agency, despite its concerns that Forestry New South Wales (NSW) may be breaching environmental regulations by logging in forests left vulnerable by bushfire. Due to a memorandum outlining how government agencies may take legal action against each other, the NSW Environment Protection Authority is only able to take action against Forestry Corp after it has breached logging regulations, rather than using an injunction to prevent it from doing so in the first place, a budget estimates hearing heard on Tuesday morning. “So we have to lose the trees [before we can act]… why do we have to see the damage first?” NSW MP Justin Field asked the EPA chief executive Tracy Mackey during the hearing.

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Carbon, Climate & Bioenergy

The Town of Banff is converting wood waste into energy with support from the Government of Canada

By Environment and Climate Change Canada
Cision Newswire
March 1, 2021
Category: Carbon, Climate & Bioenergy
Region: Canada, Canada West

OTTAWA, ON – Today, Minister of Environment and Climate Change, the Honourable Jonathan Wilkinson, announced an investment of approximately $530,000 from the Low Carbon Economy Fund to support a project that converts municipal waste into biomass energy in Banff, Alberta. The Town of Banff will build a biomass district heating system that will see a cumulative reduction of about 6,000 tonnes of greenhouse gas emissions over the lifetime of this project. That is equivalent to removing approximatively 1,800 cars from the road for one year by replacing natural gas with sustainable wood waste to heat four municipal buildings. The $1.3-million biomass system reduces the need to haul waste to the landfill. The funding is also helping to increase the solar electricity capacity to the buildings.

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Tax credit for wood and pellet heating appliances signed into law

By Tim Portz, Executive Director, Pellet Fuels Institute
Biomass Magazine
March 1, 2021
Category: Carbon, Climate & Bioenergy
Region: United States

Tom Portz

As if to underscore that 2020 would go down as the most unpredictable year in all our lives, a long-sought tax credit for wood and pellet heating appliances was signed into law in the year’s final week. The inclusion of select provisions of the Biomass Thermal Utilization Act (BTU Act) in the massive COVID relief bill came with little notice, and almost before the news was widely disseminated, the entire relief bill—BTU Act provisions included—was signed into law by Donald J. Trump. …After a decade of advocacy to gain a tax credit on qualifying wood and pellet appliances, the broader wood heating category pivots to maximize potential while this window of opportunity remains open. For the inclusion of the provisions of the BTU Act in the Federal Register to represent a victory for wood pellet producers, annual demand for heating pellets must increase appreciably. 

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US Carbon Capture Coalition releases policy blueprint

By Erin Voegele
Biomass Magazine
March 1, 2021
Category: Carbon, Climate & Bioenergy
Region: United States

The Carbon Capture Coalition on Feb. 24 released a national policy blueprint that includes near-term recommendations the group says policymakers should adopt in order to accelerate the deployment and commercialization of carbon capture projects. The blueprint represents a consensus of the CCC’s more than 80 energy, industrial and technology companies, labor unions, and conservation, environmental, and clean energy organizations. …According to the CCC, the blueprint highlights an extensive suite of near-term recommendations for policymakers to adopt to maximize the impact of the 45Q tax credit, facilitate the buildout of CO2 transport and storage capacity, and increase federal investment in carbon management technologies, among others.

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Rayonier Releases Carbon Report Quantifying Its Net Positive Climate Impact

By Rayonier Inc.
Business Wire
March 1, 2021
Category: Carbon, Climate & Bioenergy
Region: United States, US East

Rayonier released its first Carbon Report detailing the positive net carbon impact generated by the Company’s forestry operations. In 2019, Rayonier’s timberland assets sequestered an estimated 5.7 million metric tons of CO2 equivalents from the atmosphere, net of carbon emitted through operations and carbon removed/transferred to customers through harvest activity. At year-end 2019, the Company’s timberland assets stored an estimated 732 million metric tons of CO2 equivalents in total. …This report includes: Total carbon stored within Rayonier’s timberland portfolio; Carbon sequestered annually by the Company’s forests; Carbon emissions associated with the Company’s direct and indirect forestry operations; Carbon removed/transferred from the Company’s forests to its customers through harvest activity; and Carbon that remains stored in downstream solid wood products produced from the Company’s timber.

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