Daily News for January 27, 2021

Today’s Takeaway

Lumber buyers have to “pay up or run out” amid price rise

January 27, 2021
Category: Today's Takeaway

With US lumber prices at record highs again, lumber buyers say they have to “pay up or run out“. In related news: US and Canadian homebuilding prevailed over the pandemic in 2020; while interest in purchasing a home continues to rise; despite the double-digit increase in home prices. Meanwhile: a new report on four-storey wood school options for BC; stronger building codes to protect against Colorado wildfires; a new code of practice for wood preservation in the UK; and New Zealand’s trade deal with China benefits wood exporters.

In Forestry/Climate news: Western Forest Products agrees to new preserves in TFL 19 near Tahsis; the City of Nelson wants to assess the embodied carbon in its buildings; 13 Nova Scotia lumber mills seek to hold back protester-blockades; and what we can learn from Arizona’s devastating forest fires.

Finally, tiny wood homes in Europe that fold for ease of transportation.

Kelly McCloskey, Tree Frog Editor

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Business & Politics

Mercer International Inc. Completes Private Offering of $875,000,000

By Mercer International Inc.
Globe Newswire
January 26, 2021
Category: Business & Politics
Region: Canada, International

Mercer International announced that it has completed its previously announced private offering of $875.0 million aggregate principal amount of 5.125% senior notes due February 1, 2029. The Company also announces the settlement of its previously announced cash tender offer with respect to its existing 6.500% Senior Notes due 2024 and completion of its previously announced redemption of its existing 7.375% Senior Notes due 2025. …The net proceeds of the offering will be used by the Company to refinance all $250.0 million in aggregate principal amount of its 6.500% Senior Notes due 2024 pursuant to the Tender Offer, and subsequent redemption of, its 2024 Notes, to complete the redemption of the 2025 Notes and for general corporate purposes.

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Lumber Buyers ‘Pay Up or Run Out’ Amid U.S. Homebuilding Surge

By Marcy Nicholson
Bloomberg Markets
January 26, 2021
Category: Business & Politics
Region: Canada, United States

With U.S. lumber prices at fresh record highs, construction companies and wood wholesalers are buying just enough to get by, threatening to make price swings even bigger. “Everyone knows that current prices are stupid but the choice is either pay up or run out,” Vince Bulic of Yaletown Lumber Industries Ltd., said. …U.S. lumber wholesaler and distributor Sherwood Lumber experienced one of its busiest Decembers. …Not only are buyers facing higher prices from mills, but their delivery times have doubled, said Kyle Little, Sherwood’s COO.

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Northern Development reports unexpected pandemic related benefits to Northern BC’s economy

By Dione Wearmouth
My Prince George Now
January 26, 2021
Category: Business & Politics
Region: Canada, Canada West

The 2020 State of the North Economic Report by Northern Development outlined some surprising impacts the pandemic had on Northern BC’s economy. According to the report, the overall impact of COVID-19 has been more moderate in the North as the region’s economy doesn’t depend as heavily on hospitality and recreation. …The forestry sector managed to do surprisingly well in the North throughout 2020, as the pandemic presented a unique opportunity to the sector. “Once COVID hit, a lot of people at home took on home improvement and renovation projects and housing starts remained relatively strong, both of which are key indicators of the lumber being manufactured in BC,” noted McKay. …This comes after a particularly hard 2019 for forestry, as nine mills closed permanently in Northern BC, resulting in over 1,000 lost jobs.

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Weyerhaeuser cuts down pension liability with annuity deal

By Rob Kozlowski
Pensions & Investments
January 26, 2021
Category: Business & Politics
Region: United States

Weyerhaeuser Co., Seattle, purchased a group annuity contract from Metropolitan Tower Life Insurance Co. to transfer about $765 million in U.S. pension plan liabilities. The purchase from the MetLife subsidiary closed on Dec. 23, according to an 8-K filing Monday with the SEC. The purchase transfers the responsibility of paying monthly benefits to nearly 5,200 retirees and beneficiaries, the filing said. Spokeswoman Laura Smith said the transaction affects retirees and beneficiaries who receive less than $1,495 a month in benefits. It is the timberland company’s second PRT transaction in the last three years. …As of Dec. 31, 2019, Weyerhaeuser’s U.S. and Canadian pension plan assets totaled $3.719 billion, while projected benefit obligations totaled $4.26 billion, for a funding ratio of 87.3%. 

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New Zealand upgrades free trade deal with China

By Thomas Manch
The Sydney Mornng Herald
January 26, 2021
Category: Business & Politics
Region: International

WELLINGTON — After eight years and thirty rounds of negotiations, the New Zealand government has put pen to paper on what has been called the world’s largest free-trade agreement. The deal offers some New Zealand goods faster access to Chinese markets and a reduction in tariffs for paper and wood products. Trade Minister Damien O’Connor and China’s Commerce Minister Wang Wentao inked the deal in a video-link meeting on Tuesday afternoon, more than a year after it was first settled by the countries. …Wood products have been a major export to China. Of the $NZ6.4 billion in wood exports in 2018, 48 per cent headed to China. …ExportNZ executive director Catherine Beard said the agreement would be met with a “sigh of relief by some exporters”. …Forest Owners Association president Phil Taylor said the agreement would benefit the forestry industry “immediately”.

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Key points of China, New Zealand upgraded free trade deal

By Praveen Menon
Reuters
January 25, 2021
Category: Business & Politics
Region: International

WELLINGTON — China and New Zealand signed a deal to upgrade their existing free trade pact on Tuesday, which will give commodities exports from the Pacific nation increased access to the world’s second-largest economy. The agreement includes: reduced compliance costs for New Zealand exports; commitments to promote environmental protection and not to lower standards for a trade or investment advantage; commitments not to use environmental standards for trade protectionist purposes; tariff-free access for about 99% of New Zealand’s nearly NZ$3 billion wood and paper trade to China, phased tariff elimination on additional wood and paper products worth NZ$35 million; and benefits for exporters of perishable goods such as seafood, the forestry sector, and other primary sector industries. …Parliament will now consider the agreement for ratification before it enters into force.

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Finance & Economics

In 2020, U.S. and Canadian Homebuilding Fought the Pandemic and Prevailed

By Alex Carrick
The Journal of Commerce
January 26, 2021
Category: Finance & Economics
Region: Canada, United States

Housing starts in the U.S. and Canada plunged… when the coronavirus arrived in North America as an almost entirely unknown but frightening force. At the time, there was an expectation by most analysts that new homebuilding activity would be suspended for a long spell.Such dire speculation prove to be unfounded. …2020 U.S. total starts (in units), as an average of the monthly SAAR figures, were +7.9% compared with 2019. Canadian total starts were +5.1%. By the end of 2020, U.S. single-family groundbreakings were firmly in the ascendancy. They finished the year +12.3% relative to 2019. Multiple-unit starts, though, were fading. Compared with their nation-wide level in 2019, U.S. ‘multis’ in 2020 were -1.9%. …In the latest figures presented by CMHC, single-family starts in Canada’s 35 most populous urban areas were +8% in 2020 while multiples were +3%.

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Double-digit Growth in US Home Prices

By Jing Fu
NAHB – Eye on Housing
January 26, 2021
Category: Finance & Economics
Region: United States

In November, national home prices continued to rise at a fast pace, fueled by strong demand and low inventory. All 19 major markets saw double-digit growths in home prices. The S&P CoreLogic Case-Shiller U.S. National Home Price Index rose at a seasonally adjusted annual growth rate of 18.3% in November, following a 21.9% increase in October. It marks the fourth consecutive month of double-digit growth in home prices. On a year-over-year basis, the index posted a 9.5% annual gain. It is the fastest pace of home price appreciation since February 2014. Strong demand, low interest rates and tight inventory together pushed home prices to new highs amid the COVID-19 pandemic.

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COVID-19 Continues to Impact Home Purchasing Plans

By Rose Quint
NAHB – Eye on Housing
January 26, 2021
Category: Finance & Economics
Region: United States

According to NAHB’s latest Housing Trends Report, the share of Americans who are considering the purchase of a home in the next 12 months was 15% in the fourth quarter of 2020, four percentage points higher than a year earlier and the largest year-over-year gain in the 3+year history of this series. The gain shows the COVID-19 pandemic continues to impact Americans’ propensity to want to buy homes. Meanwhile, the share of prospective buyers who would be purchasing a home for the first time declined slightly in the year ended in Qtr4’20, down from 63% to 61%. Between the fourth quarters of 2019 and 2020, the share of Millennials planning a home purchase rose eight points to 27%. The share increased 6 points to 18% among Gen X’ers, 3 points to 16% among Gen Z, and was flat at 5% among Boomers.

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Wood, Paper & Green Building

New technical reports outline viable three- and four-storey wood school building options

Wood WORKS! BC – Canadian Wood Council
January 26, 2021
Category: Wood, Paper & Green Building
Region: Canada, Canada West

The Canadian Wood Council and Wood WORKS! BC are pleased to announce the release of two technical reports and one cost comparison report related to the use of mass timber and/or wood-frame construction in taller schools than currently permitted under the BC Building Code. Some BC school boards have identified the need for larger 3- and 4-storey schools, and mass timber/light wood-frame provides a sustainable cost-effective option for meeting this need.  Only two-storey wood schools are allowed under the existing BC code. It is important to recognize that solutions which are not included in the building code can be viable solutions but have not yet been explored or put forward to the national and provincial building code committees.  Three- and four-storey schools require an Alternative Solution for an approved building permit.

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Nelson researches climate impact of embodied carbon in new buildings

By Bill Metcalfe
BC Local News
January 26, 2021
Category: Wood, Paper & Green Building
Region: Canada, Canada West

Michèle Deluca and Sam Ellison

The City of Nelson is undertaking a research project into one of the most problematic aspects of climate change. The city’s building inspector, Sam Ellison, is searching for a way to account for embodied carbon in the city’s calculation of the carbon footprint of its new buildings. …Ellison says the BC Energy Step Code is a step in the right direction but doesn’t take embodied carbon into account. The Step Code calculates the heat loss from new buildings, and through increasingly advanced ways of constructing the building envelope, it attempts to reduce that loss and reduce energy use overall. …Now the City of Nelson is looking into embodied carbon on its own, independent of the province. …This technical work will be done by consultant Michèle Deluca of 3West Building Energy Consultants, using a calculator developed by Builders for Climate Action in Ontario.

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Stronger Building Codes And Other Rules Can Save Homes From Wildfires. So Why Doesn’t Colorado Have A Statewide Law Mandating Them?

By Michael Elizabeth Sakas
Colorado Public Radio
January 26, 2021
Category: Wood, Paper & Green Building
Region: United States, US West

…Hundreds of Colorado homeowners now face the tough choice of whether or not to rebuild after last year’s historic wildfires ripped through mountain communities like Grand Lake. …But unlike in California, there are no statewide laws in Colorado that require people like Reed-Tolonen to build with certain materials or mandate how they manage their land. Thoughtful changes to both can greatly increase the chances of a home surviving a wildfire, according to the National Fire Protection Association. “There are many layers of difficulty with doing something like that,” said Lisa Dale, a lecturer at Columbia University in the sustainable development program. …A 2014 committee tasked with proposing wildfire legislation rejected a bill that would have mandated a building code for areas threatened by wildfire. …A 2020 report from NPR showed that home builders groups felt that local governments should determine their own codes and rely on educating homeowners about wildfire preparation through outreach.

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Folding tiny house tucks away for easy transportation

By Adams Williams
The New Atlas
January 26, 2021
Category: Wood, Paper & Green Building
Region: International

We’ve seen tiny houses that extend upward, tiny houses that extend outward, and even tiny houses that take the roof off, but the Brette Haus puts another interesting spin on the small living movement with a folding design intended for easier truck-based transportation. It also comes with a lot of different options, including off-the-grid functionality and various interior layouts. …There are currently three models available, and these range in size from a usable floorspace of 182 sq ft up to 419 sq ft). …Each cabin is primarily constructed from CLT and comes with a basic utilitarian interior, though like a lot of prefabricated homes there are loads of options available, including being able to trick each house out with a smart home setup, an off-grid system with solar panels and batteries, and home comforts like a dishwasher. 

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UK’s new code of practice for industrial wood preservation

The Timber Trades Journal
January 27, 2021
Category: Wood, Paper & Green Building
Region: International

UK — The Wood Protection Association (WPA) has officially released its new code of practice for industrial wood preservation. The code of practice is endorsed by both the Timber Trade Federation (TTF) and the Timber Decking & Cladding Association (TDCA) as part of the three-way working partnership agreement on treated wood products. The publication supports the ongoing education campaign by WPA, TTF and TDCA, to raise awareness within the wood supply chain for the accurate specification of preservative treated wood products. It provides the latest advice and recommendations for the correct specification, description, treatment, handling and use of preservative treated timber. …The new publication and subsequent editions, replaces the former WPA Manual: Industrial Wood Preservation – Specification and Practice.

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Forestry

Wildfire risk reduction project in Big Bar Lake area nears completion

By Kelly Sinoski
100 Mile House Free Press
January 26, 2021
Category: Forestry
Region: Canada, Canada West

A project to reduce wildfire risk to the rural areas around Big Bar Lake is nearing completion. Zanzibar Holdings Ltd. and the community of Stswecem’c Xgat’tem First Nation (SXFN) partnered to reduce wildfire risk to the area, about 40 kilometres west of Clinton, with funding support from the Forest Enhancement Society of B.C. FESBC provided close to $625,000 toward two projects. The joint project with SXFN (formerly Dog Creek Indian Band and Canoe Creek Indian Band) has provided employment for local crews for the last two years. …“There is tremendous potential for a significant wildfire to come through the area close to the community of Big Bar Lake,” said Bill Layton, RPF, with Zanzibar Holdings Ltd. “Depending on a fire’s behaviour and the site conditions, the fuel breaks that we’re working on would do a lot to stop a fire’s progress from the northwest and southeast.”

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Eligibility Criteria: Forest Sector Safety Measures Fund Program

The BC Community Forest Association
January 26, 2021
Category: Forestry
Region: Canada, Canada West

The province is delivering relief to small and medium sized forestry businesses for the extra costs to address health and safety measures while operating in 2020. To be eligible, the company must be for-profit, and have forestry as its primary business activity, and the employee count at the company level must average less than 500 employees, including part time, in the last 12 months. When a  Community Forest is wholly owned by a community: the employee count is the number of people employed by the Community – including all its divisions and sub-activities.  If the community also owns other businesses and forestry is not its primary business activity, then this ‘Community Forest” would not meet the eligibility requirement.  Applications will be accepted until 4pm February 1, 2021. 

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Na̲nwak̲olas Council Announces Cultural Cedar Declaration alongside Agreement with Forestry Companies

Coast Funds
January 25, 2021
Category: Forestry
Region: Canada, Canada West

Na̲nwak̲olas Council recently announced its member First Nations had secured the cooperation of the forestry industry to sustainably steward wilkw/ k’wa’x̱ tłu large cultural cedar trees in their territories. Na̲nwak̲olas Council has worked with the forestry industry for many years to help them better understand how the First Nations make resource management decisions, and in turn to understand the economic and other impacts on forestry activities of complying with Na̲nwak̲olas First Nations’ laws. As a result of those discussions, Western Forest Products Inc. and Interfor Corporation have signed up to implement Na̲nwak̲olas Council’s Large Cultural Cedar Operations Protocol, and a number of other major forestry companies and BC Timber Sales have indicated their intention to follow suit in the coming weeks. “This commitment by these companies to follow Na̲nwak̲olas First Nations’ laws represents fundamental change for the better, for everyone,” says Na̲nwak̲olas Council President Dallas Smith.

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North Columbia Environmental Society officially becoming new branch of Wildsight

BC Local News
January 26, 2021
Category: Forestry
Region: Canada, Canada West

Revelstoke’s North Columbia Environmental Society will officially become a branch of Wildsight. NCES board of directors voted in favour of the change-over in November with Wildsight board members passing the motion on Jan. 25. “The transition for the NCES can now begin in earnest,” said a news release from Wildsight. Revelstoke will be the sixth Wildsight branch, which covers the Columbia and Rocky Mountain regions. …The two organizations worked alongside each other for a long time, with Wildsight already having a presence in Revelstoke through environmental education programs, including a Climate Change pilot program at the high school last year and a recent focus on the logging that threatens Argonaut Creek. …By joining Wildsight, Christensen says, Revelstoke will have a bigger voice in speaking up on issues.

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City of Cranbrook asks province to manage urban deer

By Trevor Crawley
The Cranbrook Daily Townsman
January 26, 2021
Category: Forestry
Region: Canada, Canada West

The City of Cranbrook is requesting a meeting with a provincial cabinet minister to talk about managing the urban deer population. Last year, the city washed its hands of managing urban deer within Cranbrook, shifting the onus to the provincial government, which is responsible for managing B.C.’s wildlife. Administration is following up with provincial authorities and is asking for a virtual meeting with Katrine Conroy, Minister of Forests, Lands, Natural Resource Operations and Rural Development. The request is to have the province step in and manage the deer to reduce the urban population, both to minimize aggressive deer encounters while also reducing the potential transmission of Chronic Wasting Disease in high density urban populations.

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Landmark deal expected to protect Tahsis watershed from logging

By Binny Paul
Victoria News
January 26, 2021
Category: Forestry
Region: Canada, Canada West

A concrete plan to save the McKelvie Creek valley from logging is finally underway after the village of Tahsis and Western Forest Products signed a Letter of Understanding. As part of the agreement, the forestry company has established new wildlife and old-growth reserves in the McKelvie Creek area within WFP’s Tree Farm Licence 19. By doing so the company has committed to Tahsis’ community objective of ‘no harvesting’ within the McKelvie area. …Last year, although McKelvie Creek was among the nine old-growth forest areas where the province deferred logging, Tahsis still felt this was a temporary fix and that they were running against borrowed time. …Tahsis mayor Martin Davis who was at the helm of negotiating the deal said that WFP agreed to include several areas that the village mapped out to be preserved. Some of these areas contain sensitive ecosystems, karst limestone landscapes, and/or culturally significant areas for First Nations, said Davis.

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Court arguments in forestry blockade injunction case focus on irreparable harm

By Francis Campbell
The Chronicle Herald
January 26, 2021
Category: Forestry
Region: Canada, Canada East

Irreparable harm was a consistent theme Tuesday in the Nova Scotia Supreme Court. An application for an interlocutory injunction against forestry protest blockades in southwestern Nova Scotia hangs on potential irreparable harm to WestFor Management…, and irreparable harm to the endangered mainland moose that the blockades were intended to protect. Ian Dunbar, lawyer for WestFor, questioned Kevin Smith, a board member of Extinction Rebellion Nova Scotia, the group that … blocked a company contracted by WestFor from accessing logging operations in Digby County late last year. …The Extinction Rebellion-led group had set up the blockades nearly two months earlier as a protest against clearcutting… “The blockade is the harm,” Dunbar said, pointing to a high degree of probability that the blockades will continue without an injunction. “…this motion is about whether an order should be issued to prevent the (logging) roads from being re-blockaded …where my client [is] lawfully permitted to harvest. [We respect the copyrights of the source publication – full access to this story requires a subscription]

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Logging company tells protesters to take their concerns up with the province (Nova Scotia)

By Taryn Grant
CBC News
January 26, 2021
Category: Forestry
Region: Canada, Canada East

The lawyer arguing for the continuance of a court order against protesters who have been trying to stop clear cutting in public forests says the protesters’ end goals don’t justify their means. WestFor Management Inc., a forestry consortium that works with 13 lumber mills in Nova Scotia, brought a motion to Nova Scotia Supreme Court last year that forced protesters to abandon two blockades on logging roads in Digby County. An interim injunction against the blockades is due to expire this month but WestFor is seeking to extend the order until a full hearing on the issue concludes. “This motion is about one thing,” WestFor lawyer Ian Dunbar said in court Tuesday. “And that is whether an order should be issued to prevent the roads from being reblockaded.” …The protesters, who include members the Extinction Rebellion, have said the Crown land WestFor is cutting is prime moose habitat and should be preserved.

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Logging business now booming – but threats remain

By Peter Aleshire
Payson Roundup
January 26, 2021
Category: Forestry
Region: United States, US West

Great prices. Lots of wood. The logging business is booming. But that don’t mean the rag-tag network of mills and loggers aren’t sweating bullets about staying in business. Every month, a coalition of Forest Service, elected officials and logging industry types gather for the Natural Resources Working Group, in a brave, uphill effort to rebuild a nearly dismantled industry. Their success may determine whether forested communities like Payson and Show Low go the way of Paradise, Calif. — where 80 people died when a fire consumed the whole community. …The dangerously dry winter allowed logging to continue through December and into January — but will likely usher in an early, frightening fire season. …“So instead of worrying about winter and mud — our worries have turned to being shut down for fire,” said Tommy Bolton, with Campbell Global, the leading contractor for previous phases of 4FRI — mostly in the Coconino Forest. 

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What we can learn from devastating forest fires

By Elvy Barton, forest health management principal at Salt River Project
Payson Roundup
January 26, 2021
Category: Forestry
Region: United States, US West

The large wildfires these past 10 years that ravaged the watershed in and around the Salt and Verde rivers, where our water comes from, indicate one important fact that must be addressed now more than ever — our forests are unhealthy. Salt River Project (SRP) manages the water supply for much of the Valley — most of which comes from 8.3 million acres of land in northern Arizona. Snowfall and rain provide the water that travels through the watershed into SRP reservoirs, which is then delivered to homes and businesses via canals and laterals. …On average, the forested lands in the northern part of the state have about 100 trees per acre, but in many areas, there are thousands of trees per acre. Overcrowded forests can fuel large wildfires that are uncontrollable with catastrophic impacts. These wildfires not only devastate natural ecosystems, they also degrade water quality and impact the resiliency of the water supply.

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Scientists urge ‘right tree in right place’ approach to restoring forests

The Irish News
January 26, 2021
Category: Forestry
Region: International

Poorly planned and executed tree planting schemes can harm the environment, experts warned as they set out “golden rules” for restoring forests. Planting trees to suck up carbon emissions can be presented as an “easy answer” to tackling the climate crisis, but large-scale plantations can actually cause more problems than benefits, scientists have said. The researchers from the Royal Botanic Gardens, Kew (RBG Kew) and Botanic Gardens Conservation International (BGCI) are urging a “right tree in the right place” approach to make sure restoring forests benefits people and the planet. A study by the scientists found that in some cases, tree planting schemes did not increase the amount of carbon being stored in the landscape …Professor Alexandre Antonelli, director of science at RBG Kew, said …whenever there’s a choice, we stress that halting deforestation and protecting remaining forests must be a priority

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Carbon, Climate & Bioenergy

Carbon Offsets That Companies Are Gobbling Up Get a Futures Contract

By Ryan Dezember
The Wall Street Journal
January 27, 2021
Category: Carbon, Climate & Bioenergy
Region: United States

Exchange operator CME Group plans to launch trading in voluntary carbon-offset futures, tapping into the rush by companies to make up for their emissions. Offset credits are a climate-change currency earned through endeavors that reduce or sequester greenhouse gasses, such as paying timberland owners to leave trees standingand capturing methane fumes at hog farms. Companies, investment firms, governments and other entities that have set carbon-reduction goals apply voluntary offset credits to their internal ledgers in order to balance out emissions they can’t otherwise eliminate. …In December, BP bought a controlling stake in Finite Carbon, a Pennsylvania forestry firm that has been the most prolific U.S. producer of carbon offsets, and earlier invested in Xpansiv.Amazon.com Inc. last year invested in Pachama Inc., a company that uses satellite imagery and computer programs to measure how much carbon is stored in forests. [We respect the copyrights of the source publication – full access may require a subscription]

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