Daily News for June 08, 2021

Today’s Takeaway

BC old-growth logging pause unlikely to end protests

June 8, 2021
Category: Today's Takeaway

Three BC First Nations call for a 2-year old-growth logging deferral in Fairy Creek while they develop their own forest management plan. In response: Teal Jones and Western Forest Products say they will adhere to the First Nations’ request, protesters say it doesn’t go far enough; and Vaughn Palmer describes the news as welcome political cover. In other Forestry news: Ontario is investing in forest industry training; and Oregon’s hazard tree removal program secures 3rd party endorsement. 

In other news: Canfor announces plan to build a new sawmill in DeRidder, Louisiana; Neste Oyj plans to make diesel from forest waste in Quebec; forest pests in Pennsylvania and Maine; and Canada Wood Group updates from China and Japan.

Finally, the inside story on green steel – highly recyclable but energy intensive.

Kelly McCloskey, Tree Frog News

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Business & Politics

PRT Growing Services Establishes Green Loan Financing

Instar Asset Management
June 8, 2021
Category: Business & Politics
Region: Canada

Victoria, British Columbia  — PRT Growing Services Ltd, the premier provider of critical growing services for container-grown forest seedlings in North America, and Instar Asset Management Inc., an independent alternative management firm focused on middle-market investment opportunities primarily in North America, today announced the closing of $90 million in green loan facilities led by Royal Bank of Canada and HSBC Bank Canada to support the Company’s acquisition by Instar and future growth. HSBC acted as Green Loan Coordinator for the financing, which included National Bank of Canada and The Toronto-Dominion Bank. The facilities are compliant with the Global Loan Market Association’s Green Loan Principles, a set of market standards and guidelines that facilitate and support environmentally sustainable economic activity.

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Canfor to Invest in New Sawmill in Louisiana

Canfor Corporation
June 8, 2021
Category: Business & Politics
Region: Canada, United States

Vancouver, BC — Canfor Corporation announced it will invest approximately $160 million USD to build a new, state-of-the-art sawmill near DeRidder, Louisiana. The Company is receiving significant state and local incentives in support of the project. The facility will have an annual production capacity of 250 million board feet and will directly employ about 130 people plus create significant additional indirect jobs. …Startup is expected to commence late in the third quarter of 2022. …“We are excited to grow our operating footprint with the greenfield project in Louisiana, which will increase our production capacity and allow us to meet the growing demands of our customers,” said Don Kayne, CEO, Canfor. …Governor John Bel Edwards, State of Louisiana… “We welcome plans for this foreign direct investment in Louisiana by this industry leader.”..Given the decision, Canfor will not be proceeding with the greenfield project in Washington, Georgia that was previously announced on February 22, 2018.

Release by the Governor of Louisiana: Canfor Announces Plans For $160 Million Lumber Mill Near DeRidder

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B.C. Forest Minister says old growth deferrals and reconciliation intertwined

By Betsy Kline
Nelson Star
June 7, 2021
Category: Business & Politics
Region: Canada, Canada West

Katrine Conroy

B.C. Forest Minister Katrine Conroy says no moratoriums on old growth logging can occur without further Indigenous consultation. Last week the B.C. government released an intentions paper outlining its future plans for the forestry industry, the first major changes in 20 years. Included was a commitment to implement “further deferrals of old growth forests,” but the government stopped short of calling an immediate halt to old-growth logging, much to the disappointment of activists across the province. Conroy told Castlegar News that it is not as simple as some might think to call a moratorium and that managing old growth forests is intertwined in the work of reconciliation with Canada’s Indigenous peoples. …“You can’t just go and defer land and then turn around and say to the Nation, ‘Oh by the way, we’ve deferred this and now we should talk to you about it.’ That’s disrespectful,” said Conroy.

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First Nations demand provides political cover for Horgan

By Vaughn Palmer
The Vancouver Sun
June 7, 2021
Category: Business & Politics
Region: Canada, Canada West

VICTORIA — The day began with Forests Minister Katrine Conroy scrambling to correct her most recent statement about old growth logging at Fairy Creek in the premier’s riding. …The reason behind Conroy’s early morning timing became evident when her apology crossed paths the three First Nations’… notice to the province “to defer old-growth logging for two years. The statement served notice to outsiders as well. …One could readily imagine the sigh of relief passing through the NDP government. Perhaps here was an escape hatch from an increasingly bitter standoff in the premier’s political back yard. …The protesters, as is their habit, were not long in raising the stakes. “Any deferral on Fairy Creek must include the entire 2,080 hectare Fairy Creek rainforest”. …Outside the house, Conroy was asked about compensation for deferring old growth logging at Fairy Creek. She said no compensation would be necessary because the holdup was only for two years.

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World’s biggest biofuel producer to build refinery in Quebec to make diesel out of forestry waste

By Robert Tuttle and Kim Chipman
Bloomberg News in the Financial Post
June 7, 2021
Category: Business & Politics
Region: Canada, Canada East

The world’s biggest biofuel producer is looking to convert everything from tree limbs to landfill garbage into fuel for motor vehicles and planes as demand surges for low-carbon fuel sources. In Quebec, Neste Oyj aims to build a refinery that would use forestry waste such as treetops and branches to produce renewable diesel, Jeremy Baines, president of the Finnish company’s North American operations, said. The search for additional feedstocks comes as demand strains availability of traditional biofuel ingredients like soy oil, contributing to food inflation and destruction of forests to plant crops. More fossil-fuel companies are entering the market, and U.S. production capacity for renewable diesel is expected to jump almost sixfold by the end of 2024, according to JPMorgan Chase & Co. Neste said it isn’t worried about heightened competition for raw materials.

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Soaring lumber prices are contributing to rising home costs across the U.S.

By Hallie Miller
The Chicago Tribune
June 7, 2021
Category: Business & Politics
Region: United States, US East

CHICAGO — A literal building block for housing, lumber serves as the foundation for everything from homes to mid-rise apartment buildings. Yet the coronavirus pandemic, which disrupted social norms, routines and the economy, also stalled the supply of lumber just as demand for new housing and home improvements surged — and the market has yet to catch up. …Local and national housing experts called the phenomenon a “crisis” for the industry, well outside the purview of local executives, real estate agents and developers. “Housing affordability was an issue in 2019, before the pandemic, and this is making the issue much more serious,” said Lori Graf, CEO of the Maryland Building Industry Association. …Brooks Mendell, CEO of Forisk, a consulting firm for the wood and timber industries, said mills are churning out a substantial volume of lumber, and new ones are opening. But many are struggling with acute labor shortages and backlogged orders.

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Finance & Economics

Japan housing and non-residential starts face headwinds

By Shawn Lawlor, Managing Director, Japan
The Canada Wood Group Blog
June 7, 2021
Category: Finance & Economics
Region: Canada, International

Despite some signs of improvement, Japan’s housing market continued to face headwinds in February & March. Total February housing starts fell 3.7%, followed by a slight 1.5% increase in March to 71,787 units. Total wooden starts declined 1% in February to 35,448 units. In March wooden starts fell 2.8% to 39,008 units. By wooden housing type, post and beam starts are outperforming wooden pre-fab and 2×4 construction. …Between January and March 2021 total number of non-residential starts fell 8% to 10,205 units, however, non-residential floor area increased 6.5% to 8.75 million square meters. Wooden non-residential starts dipped 1.8% however floor area increased 5.4% to 722,057m2. The top five building types for wood use was led by medical, elderly care and social welfare facilities, mixed residential / commercial, agricultural, business services and the restaurant & hospitality sector.

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China’s home prices, real estate investments are on the rise

By Eric Wong, Managing Director, China
The Canada Wood Group Blog
June 7, 2021
Category: Finance & Economics
Region: Canada, International

China’s GDP grew by 18.3% in the first quarter of 2021. …The Economist Intelligence Unit under the Economist Group maintains its expectations that China’s real GDP will expand by 8.5% in 2021, up from 2.3% growth in 2020. This forecast sees growth as being underpinned by fiscal support for infrastructure, healthcare and consumption. …According to the National Bureau of Statistics of China, the average new home prices in China’s 70 major cities rose by 4.6 percent year-on-year in March 2021, accelerating for a third straight month to the biggest annual gain since September, as strong property demand was enough to offset government cooling measures. Total investment in real estate in China had a year-on-year increase of 25.6 percent from January to March. Total floor area completed in China in Q1 2021 was at 619.44 million m2.

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Wood, Paper & Green Building

The inside story on green steel – time to put pedal to the metal

By Poppy Johnston
The Fifth Estate Australia
June 7, 2021
Category: Wood, Paper & Green Building
Region: International

The built environment has developed a taste for sustainable, low emissions steel — but in Australia, the cupboards are relatively bare. …Trouble is, on emissions reduction, the steel supply chain faces an expensive, technically challenging low carbon transition and a tight deadline. …A promising technology is directly reducing iron ore using green hydrogen – substituting coal or natural gas used in the typical furnace process – and then processing that in an electric arc furnace also powered by green electricity. This “hydrogen direct reduced iron” technology is currently being trialled in Sweden, Japan and Germany. The other option, which is being developed in the US, is called “direct electrolysis”and involves zapping the iron ore directly with clean electricity. Both manufacturing pathways are very low in emissions but also incredibly energy hungry, so the economic case hinges on the availability of low cost renewable energy. 

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Forestry

Cleanup Targets Doumont Mountain Bike Trails on Mosaic Forest Lands

Mosaic Forest Management
June 4, 2021
Category: Forestry
Region: Canada, Canada West

Nanaimo, BC — Volunteers from Mosaic Forest Management, the Regional District of Nanaimo (RDN) and Sylvis Environmental are joining a cleanup effort led by the Nanaimo Mountain Bike Club (NMBC) at the Doumont Trails network in Nanaimo on Saturday, June 5, in celebration of BC Trails Day and World Environment Day. Doumont Trails, located on Mosaic private forest lands, is a sanctioned mountain bike trail network maintained by the NMBC through a formal agreement with Mosaic. The area is home to some of the region’s best trails but is frequently the target of illegal dumping. The NMBC will work with Mosaic, the RDN, and Sylvis Environmental to clean up the area for the summer bike season.

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Every Victoria-owned tree and its condition can be found online

By Jane Skrypnek
Victoria News
June 8, 2021
Category: Forestry
Region: Canada, Canada West

Victoria residents can track the health, species and history of every tree on their boulevard – along with 33,000 other trees. City of Victoria-owned trees are logged on a little-known online database where people can zoom in on different Victoria neighbourhoods to examine what’s growing. For the city, it’s a means of keeping track of their tree inventory, knowing which trees are new and need more care, and which are old and may pose a future risk. It also allows city staff to talk about a specific tree or trees in real time if someone calls in with a complaint or question. …For residents, the database can be an intriguing tool to examine what types of trees are growing around them. When clicked on, each tree pinpoint reveals a swath of information, including its address, blossom start and end date, measurements, health, age and species, among many other characteristics.

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Vancouver Island First Nations declaration not enough for old-growth protesters

By Kevin Rothbauer
BC Local News
June 7, 2021
Category: Forestry
Region: Canada, Canada West

Although three southwestern Vancouver Island First Nations called for a halt to both old-growth logging and related protests on their territory in a declaration, activists say they will stand their ground at the Fairy Creek watershed. The Rainforest Flying Squad called the Hišuk ma c̕awak Declaration… “a welcome step in the right direction,” but don’t believe it goes far enough. The RFS and Pacheedaht elder Bill Jones said they are awaiting more details. …“No, we must not stand down, as all First Nations are locked into unfair contracts that tie their hands,” Elder Bill Jones stated. …The RFS is demanding the protection of the entire Fairy Creek watershed, and not only the old growth that the Hišuk ma c̕awak Declaration addresses. “Any deferral on Fairy Creek MUST include the entire 2,080 hectare Fairy Creek Rainforest, not just the old growth within the watershed,” the group said.

Additional coverage by Kevin Rothbauer in BC Local News: First Nations tell BC to pause old growth logging on southwest Vancouver Island

And by Andrew MacLeod in The Tyee: Old Growth Protected in Fairy Creek, but Blockade Continues

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Western Forest Products President and CEO makes social media statement

By Don Demens
Western Forest Products
June 7, 2021
Category: Forestry
Region: Canada, Canada West

Western Forest Products respects the rights and title of First Nations, including their right to economically benefit from the lands within their traditional territories.  We welcome and support the announcement today from the Huu-ay-aht, Pacheedaht and Ditidaht First Nations on their decision making authority, integrated resource management planning process and focus on sustainable forest management. We look forward to continuing to expand our working relationships with First Nations through progressive and leading partnerships, such as with our TFL 44 LP shared ownership model with the Huu-ay-aht First Nations, and to the collective implementation of the Hišuk ma c̕awak Integrated Resource Management Plans once concluded.

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First Nations announce old-growth logging deferral on Vancouver Island

By Todd Coyne
CTV News
June 7, 2021
Category: Forestry
Region: Canada, Canada West

VICTORIA — A group of First Nations say they have reached an agreement to defer old-growth logging in parts of southwestern Vancouver Island for the next two years. …”For more than 150 years they have watched as others decided what was best for their lands, water, and people,” said the Huu-ay-aht First Nation in a statement Monday. “This declaration brings this practice to an immediate end. …Teal-Jones told CTV News on Monday that it will adhere to the First Nations’ decision. …”Teal-Jones acknowledges the ancestral territories of all First Nations on which we operate and is committed to reconciliation,” the company said. Pacheedaht First Nation Chief Councillor Jeff Jones said… “We ask that all peoples both Indigenous and non-Indigenous learn and move forward together and that by working together we can realize a future that is fair, just, and equitable”. …The protesters said the announcement from the Indigenous leaders is “far short of what we need”.

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Micro Sawmills in British Columbia — Insights for Community Forests

By Randy Morse
The BC Rural Centre
June 1, 2021
Category: Forestry
Region: Canada, Canada West

Micro sawmills are defined as mills that process 2,000-20,000 cubic metres per year. Micro mills present a number of opportunities for rural BC communities and First Nations, including the creation of more local jobs, increased value from harvested trees, and enhanced rural economic diversification. To get the conversation going and inspire forward-thinking practices amongst BC’s community forest agreement holders, the BC Community Forest Association created an in-depth report that offers two case studies of community forests operating micro sawmills, what is needed financially and logistically to start up a sawmill, and a list of important elements to consider in determining if this unique investment opportunity is the right fit for any given community forest. In addition to the ability of community forests to support the value-added economy and create more jobs… they also create value by generating more jobs than the industry average through their forestry operations.

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Near the Fairy Creek blockade, artist Jeremy Herndl paints and fights for 1000-year-old trees

By Jen Muranetz
CBC Arts
June 7, 2021
Category: Forestry
Region: Canada, Canada West

In an effort to protect British Columbia’s last stands of old-growth forest from logging, artists are being brought into the temperate rainforests on south western Vancouver Island to make art inspired by these ancient trees. Jeremy Herndl spent two months in Eden Grove, an original forest on Edinburgh Mountain north of Port Renfrew, B.C. During his time, he created six feet-by-five foot portraits of large trees, some predicted to be more than 1000 years old. Herndl is the first artist participating in the Eden Grove Artist in Residence program, a wilderness immersive residency founded on the intersections of art, ecology, activism and culture. …Herndl has completed his residency, but artists Kyle Scheurmann, Heather Kai Smith and Mike Andrew McLean are taking a turn making art in this ancient forest.

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Vancouver Island First Nations call for deferral of old-growth logging at protest sites

CBC News
June 7, 2021
Category: Forestry
Region: Canada, Canada West

Three B.C. First Nations want forestry workers to temporarily stop cutting old-growth trees on southern Vancouver Island while they create their own forestry management plan and have submitted the request to the B.C. government. On Saturday, the Ditidaht, Huu-ay-aht, and Pacheedaht First Nations formally gave notice to the province of their decision to defer old-growth logging for two years in the Fairy Creek and the Central Walbran areas. The provincial government will need to grant the request before the logging stops. Premier John Horgan said the government… is willing to enter into discussions regarding their request. …The three First Nations say they are “committed to developing and implementing world-class integrated resource management plans” that draw on the teachings of ancestors, the wisdom of elders and input from citizens and valued partners. …”All current logging will be put on hold,” said Huu-ay-aht Chief Coun. Robert J. Dennis Sr.  …”Hopefully, we’ll be able to … have standards that exceed provincial standards”. 

Additional coverage by the Canadian Press in the National Post: Vancouver Island First Nations plan to defer old-growth logging at protest sites

Lisa Cordasco in the Vancouver Sun: Call by First Nations to suspend old-growth logging unlikely to end protests at Fairy Creek

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The Ontario Government to invest millions into forestry industry training through Flemming College

By Trevor Smith-Millar
My Bancroft Now
June 7, 2021
Category: Forestry
Region: Canada, Canada East

John Yakabuski

The Ontario Government will put money towards training people to go into the forestry industry. The government is committing $5 million into training people at Flemming College in Haliburton and Algonquin College in Renfrew County. Minister of Natural Resources and Forestry (MNRF) John Yakabuski says it is part of the SkillsAdvance Ontario project through the Ministry of Labour, Training and Skills Development. The money will go towards connecting employers with the colleges to see where they need workers most, and then train workers in those areas to help fill the needs of employers. For the forestry industry, training will be provided for a variety of skills like mill and manufacturing operations, field skills, and heavy equipment training. …Yakabuski stressed that forestry jobs paid well, and wanted to bring more people to the industry. …While Yakabuski says the forestry industry is sustainable, no industry can be if it doesn’t have a workforce.

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Lawmakers Get a Wake Up Call on Wildfires

By Nick Smith
Forests2Market Blog
June 8, 2021
Category: Forestry
Region: United States

…Wildfires are rising up the agenda in Washington DC. Lots of bills have been introduced, some of them very promising. But predictably, lawmakers can’t agree on the causes of today’s megafires, let alone the solutions. Is it climate change? Is it forest mismanagement? We’ve argued framing this issue as an “either/or” choice does a disservice, when the real question is, “what do we do now?”. …U.S. Forest Service Chief Vicki Christiansen also told congressional budget writers her agency needs to more than double the pace for forest management activities to address severe wildfires. “We have to do a paradigm shift, quite frankly,” Christiansen told the Subcommittee on Interior and Environment. “We have to treat more acres and up our game.” Upping our game means addressing the regulatory barriers, obstruction and litigation that is failing our public forest lands and communities. Will lawmakers listen, and act?

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Controversial Thurston Hills-area timber harvest stalled in court

By Adam Duvernay
The Register-Guard
June 7, 2021
Category: Forestry
Region: United States, US West

EUGENE, Oregon — A proposed timber harvest on land near the Thurston Hills Natural Area being expanded into bike trails has stalled again in court after a judge on Friday ruled the Bureau of Land Management did not complete instructions issued by the judge in a previous lawsuit. A magistrate judge ruled on Friday in a second lawsuit filed by Eugene-based nonprofit Cascadia Wildlands and Oregon Wild that BLM did not take proactive steps to preserve trees along planned extensions of Willamalane Park and Recreation District bike and hiking trails onto BLM-managed land. Though the controversy over the harvest largely has centered on fire risk, the magistrate judge ruled against Cascadia Wildlands’ arguments that BLM had not met obligations to study fire risk in the harvest area or properly informed the public about such risks.

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Oregon is properly identifying hazard trees for removal in burn areas: independent review

By Monica Somayoa
Oregon Public Broadcasting
June 7, 2021
Category: Forestry
Region: United States, US West

An independent arborist hired to review Oregon’s post-wildfire roadside tree removal has concluded that contrary to what critics have charged, 99% of the trees being tagged for removal are dead or in poor condition. The report, made public Monday, was ordered in response to alarms raised by state lawmakers, local residents and whistleblowers who had been hired through the state-run program to mark trees in wildfire burns that should be removed because they posed a hazard. Critics accused the program of flagging healthy trees incorrectly as hazardous ones that should be cut down, following last fall’s wildfires. They also said the program was being mismanaged and operating without sufficient transparency. …Eric Phillips, a field monitor for CDR Maguire reported concerns, saying the report focused on the process of the project and not what is going on in the field. …said he would challenge the evaluation of the credentials of the arborists and foresters

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Invasive disease that threatens beech trees has been discovered in Maine

By Julia Bayly
Bangor Daily News
June 7, 2021
Category: Forestry
Region: United States, US East

Beech leaf disease — a disease that has led to the destruction of beech trees from Ohio to southern New England — has been confirmed in Maine and added to the state’s invasive species list. Landowners in Lincolnville observed possible symptoms of the disease and reached out to the Maine Forest Service pathologist, according to the Maine Department of Agriculture, Conservation and Forestry. The presence of the disease was confirmed by staff at the Connecticut Agricultural Experiment Station using leaf samples from a forest in Lincolnville. The find is concerning to Maine’s tree experts. …The leaf disease is associated with a plant parasitic nematode. The nematode attacks trees of all ages and the disease can kill mature trees in under 10 years.

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Climate change a bigger threat to landscape biodiversity than emerald ash borer

By Francisco Tutella
Penn State News
June 7, 2021
Category: Forestry
Region: United States, US East

UNIVERSITY PARK, Pa. — The invasive emerald ash borer threatens the entire ash tree population in North America and has already changed forested landscapes and caused tens of billions of dollars in lost revenue to the ash sawtimber industry since it arrived in the United States in the 1990s. Despite the devastating impact the beetle has had on forests in the eastern and midwestern parts of the U.S., climate change will have a much larger and widespread impact on these landscapes through the end of the century, according to researchers. “We really wanted to focus on isolating the impact of the emerald ash borer on biodiversity, forest composition, biomass and other factors,” said Stacey Olson, program coordinator and legal assistant at Resources Legacy Fund. …The team’s research demonstrates the importance of focusing more resources on climate change mitigation rather than on a very specific, targeted threat like the emerald ash borer.

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Carbon, Climate & Bioenergy

Carbon Streaming Announces Strategic Partnership With BC First Nations Company

By WilsonZinter Enterprises Ltd. and Carbon Streaming Corporation
Business Wire in Vancouver Sun
June 7, 2021
Category: Carbon, Climate & Bioenergy
Region: Canada, Canada West

TORONTO — Carbon Streaming Corporation is pleased to announce it has formed a strategic joint-venture partnership with WilsonZinter Enterprises Ltd., an established First Nations business in British Columbia. The purpose of the JV is to source and finance investment opportunities in collaboration with First Nations and develop projects within their territories to combat climate change through the reduction of greenhouse gas emissions. …Projects once developed will result in GHG emissions reductions that will be marketed for sale as carbon credits once fully validated and certified. …In partnership, CSC and WZ will meet with First Nations officials to finance and develop offsetting projects, realizing the many anticipated project benefits: Natural Resources Management such as reforestation and improved forestry management, wetland restoration, and associated efforts to protect the area’s rich biodiversity; Partnership with First Nations offering sustainable economic development, employment, and environmental education opportunities for self-sufficient communities…

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Gresham House launches new UK forestry and carbon credits strategy

Property Funds World
June 7, 2021
Category: Carbon, Climate & Bioenergy
Region: International

The Gresham House Forest Growth & Sustainability strategy aims to deliver sustainable capital growth through new productive woodland creation, whilst also providing exposure to income generating existing forestry. …Returns will be generated through the sale of timber and the capital growth of land and trees from existing forests. Meanwhile, the creation of more than 10,000 hectares of new productive woodland will enable the sequestration of carbon and generation of carbon credits, in addition to delivering sustainable capital growth. Investors will receive distributions in the form of verified carbon credits that can be retained for ‘insetting’ purposes – to address carbon emissions in their sphere of influence or portfolio – or sold to provide income. These returns provide potential upside from an increase in the value of carbon credits.  Gresham House is the UK’s largest commercial forestry manager, harvesting approximately 10 per cent of the UK’s softwood annually and managing roughly 140,000 hectares, worth more than GBP1.8 billion.

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Health & Safety

Last summer’s massive wildfires bring heavy metals to this year’s spring runoff

By Jerd Smith
The Colorado Springs Gazette
June 7, 2021
Category: Health & Safety
Region: United States, US West

Liz Roberts

Liz Roberts is digging above the banks of Grizzly Creek in western Colorado looking for life amid the ruins of last summer’s devastating Grizzly Creek fire. …In unburned forests, the spring runoff is a glorious, annual event. But not this year. Roberts and other forest experts know that the runoff will carry an array of heavy metals and ash-laden sediment generated in the burned soils, posing danger to the people of Glenwood Springs, who rely on these creeks for drinking water. …As soils burn, naturally occurring substances that would normally be locked in place are released. “Sometimes we see lead, mercury, cadmium, possibly arsenic,” said Justin Anderson, a U.S. Forest Service hydrologist. “They can be dangerous, especially in high concentrations.” …“We are expecting it to change the water quality for three to seven years,” Matt Langhorst, Glenwood Springs’ director of public works said.

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