Daily News for January 08, 2021

Today’s Takeaway

Domtar exits diaper business, plans to focus on pulp, paper and packaging

January 8, 2021
Category: Today's Takeaway

Domtar reached an agreement to sell its “personal care” business, plans to focus on pulp, paper and packaging. In other Company news: Pinnacle extends supply contract with Japan’s Mitsubishi; Nova Scotia sawmillers fear fallout 1-year after Northern Pulp closure; and Paper Excellence faces similar emission challenges in France. Meanwhile: Russ Taylor’s latest on the Japanese housing market; the Timber Trade Federation on UK timber imports; and the Decorative Hardwood Association on Vietnam’s illegal wood trade with China.

In other news: Ontario ups its covid relief for small forest companies; Maine invests in forest bioproduct research; a Massachusetts town looks to mitigate global warming with carbon credits; and Vermont expands its logger certification program.

Finally, Charlene Higgins (BC First Nations Forestry Council) looks back at 2020, while Stewart Muir (Resource Works) looks to the year ahead.  

Kelly McCloskey, Tree Frog Editor

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Business & Politics

BC First Nations Forestry Council: Year End letter from CEO

By Charlene Higgins, MSc, PhD. CEO, BC First Nations Forestry Council
BC First Nations Forestry Council
January 6, 2021
Category: Business & Politics
Region: Canada, Canada West

2020 has been an unprecedented year. …In spite of the challenges we are proud to have accomplished a lot together, continuing the important work of advocating for meaningful and consistent involvement of First Nations as full partners in a revitalized forest sector. …Our workforce initiatives gained great success this year with the launch of our first virtual career fair, #ForestryConnect2020, which attracted nearly 200 Indigenous students from across the province …The release of our 2017-2020 Activities Report marked another important milestone: the revitalization of our First Nations Membership Program. …Over a year ago, the BC government committed to the implementation of the UN Declaration on the Rights of Indigenous Peoples (UNDRIP). The articles of UNDRIP link directly to the six goals of the BC & First Nations Forest Strategy. However, the province still has not followed through on their commitment of endorsing it. 

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Outlook: Year ahead is rich with opportunity for B.C.’s resource industries

By Stewart Muir
Business in Vancouver
January 8, 2021
Category: Business & Politics
Region: Canada, Canada West

Stewart Muir

The advent of 2021 is a prognosticator’s nightmare after the year we’ve had. …After initial confusion, 2020 has shown us that the fundamentals still apply. Buying low and selling high rewarded the bold. Investment intentions continued to be affected by government policies. New leaders and disruptive ideas emerged phoenix-like from the ashes of the crisis. …In 2021, we all need to get a firm grasp on the term ESG – environment, society and governance – because we’ll be hearing it a lot more. …In 2021, economic reconciliation for Indigenous peoples will become a higher priority than ever. …Traditional industries like forestry and aquaculture are major contributors to B.C.’s standing as a producer of low-carbon, sustainable export goods. Unfortunately, polarization has the potential to inflame the urban-rural divide while derailing some of our most accessible and rewarding opportunities. We need elected leaders who move confidently to ensure opportunities are not needlessly turned away.

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Queen’s Park offers forest sector more COVID-19 relief

Northern Ontario Business
January 7, 2021
Category: Business & Politics
Region: Canada, Canada East

The Ontario government is providing $5.3 million to help the forest sector offset the cost of COVID-19 safety measures. Companies deemed eligible are engaged in timber tract operations, logging, supply and service, wood product and pulp manufacturing, and employ fewer than 500. The provincial government expects to roll out funding this spring, depending on when the province receives program funding from the federal government through the Forest Sector Safety Measures Fund. The funding can be applied toward setting up sanitizing stations, providing enhanced cleaning, additional worker training, measures to increase physical distancing, and to purchase personal protective equipment. Funding, up to a maximum of $75,000, is for costs incurred between April 1, 2020 and February 12, 2021 or $500 per full-time equivalent employee, whichever is less.

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Paper Excellence in France: different country, same game plan

By Joan Baxter
The Halifax Examiner
January 7, 2021
Category: Business & Politics
Region: Canada, Canada East

“A Canadian-owned paper pulp company went on trial on Wednesday for flouting emissions rules at its mill in southern France, the country’s biggest,” reports Agence France Presse (AFP).  The company has been charged with “emitting polluting substances,” …from the mill … on the Rhone River. The same pulp company, AFP notes, “entered bankruptcy proceedings in October and secured a government loan of seven million euros after its owners declined to help.” If either of these things — the pollution from a pulp mill or the government handout to a pulp company pleading poor — sounds a little familiar, or are reminiscent of, say, something you’ve read about Paper Excellence, the company that owns the now hibernating Northern Pulp mill in Pictou County, Nova Scotia, it’s not surprising. It is basically the same game plan — pollute, declare bankruptcy / seek creditor protection, and seek public bailout money. It’s also the same corporation. 

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Fear of looming economic blow remains 1 year after Northern Pulp closure

By Emma Smith
CBC News
January 7, 2021
Category: Business & Politics
Region: Canada, Canada East

A boom in lumber sales and pandemic relief funding has softened the blow of Northern Pulp’s closure nearly one year ago, but the head of Forest Nova Scotia says the reprieve won’t last. … Jeff Bishop told CBC’s Mainstreet. … he’s thankful record-high lumber prices during the pandemic have allowed sawmills like Elmsdale Lumber to stay afloat during a very uncertain year. Without that silver lining, many sawmills in the province would likely have been forced to close down. Bishop said many people are struggling to figure out what the next few months and years look like now that one of the biggest players in the province’s forestry sector is gone. “Lumber, like most commodities, is very cyclical and it’s up and down… so we’re only holding our breath to see when the down will happen. It no doubt will.”

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Vietnam Denies High-Risk Illegal Wood Trade

The Decorative Hardwoods Association
January 6, 2021
Category: Business & Politics
Region: United States, International

The Vietnamese wood products industry and its U.S. importers have denied the U.S. Trade Representative’s allegations of unfair trade. Instead, they cite Vietnam’s recent progress in combatting illegal logging, claiming that certification standards are adequate safeguards and that if there is illegal wood, it’s in the domestic market and not for export. Vietnam and U.S. importers of Vietnamese wood products favor bilateral dialogue and voluntary cooperation as tools to prevent illegal logging. …As explained in DHA’s initial comments to USTR, there is robust evidence that large volumes of illegal timber are imported into Vietnam. Indeed, at the hearing, parties generally did not dispute that illegal timber was a problem in Vietnam. …In addition, there is robust evidence that illegal wood is being transshipped from China, through Vietnam, to the United States.

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Domtar Corporation Announces Sale of Personal Care Business to American Industrial Partners for $920 Million

By Domtar Corporation
Businesswire
January 8, 2021
Category: Business & Politics
Region: United States

FORT MILL, South Carolina –Domtar announced that it has entered into a definitive agreement to sell its Personal Care business to American Industrial Partners (AIP) for $920 million. …With this sale, Domtar is reinforcing its focus on building an industry-leading Paper, Pulp and Packaging company to deliver long-term shareholder value. …John D. Williams, President… “We believe the sale maximizes value to Domtar shareholders by allowing us to strengthen our balance sheet, enhance liquidity and buy back shares.” …With this sale, the Company plans to use proceeds generated to: Pay Down Debt: Domtar expects to reduce debt by approximately $600 million. …Domtar expects to repurchase approximately $300 million in shares. The transaction is subject to receipt of regulatory approvals and other customary closing conditions and is expected to close by the end of the first quarter 2021.

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UK timber imports continue strong market recovery

The Timber Trade Federation
January 8, 2021
Category: Business & Politics
Region: International

Timber and panel import volumes performed strongly in October 2020 for the fifth consecutive month since June, according to the latest timber statistics for October 2020. The Timber Trade Federation monthly report reveals total import volumes for main timber and panel products were 21 percent higher in October 2020 compared to October 2019 levels, as import volumes in the month soared above the 1 million m3 mark. However, even this strong performance cannot compensate for the loss of import volume in Q2 meaning the ten months to October 2020 is still 11 percent below, compared to the same time last year. Solid wood imports were 8 percent below the same period in 2019 and panel product imports were 15 percent lower. The main drivers of growth in the early Autumn were OSB and softwood imports, supported by higher volumes of plywood and MDF compared to the same period in 2019.

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Pinnacle Renewable Energy Announces Extended Off-take Contract in Japan

Canada NewsWire
January 7, 2021
Category: Business & Politics
Region: International

Pinnacle Renewable Energy today announced that it has entered into an extension of a long-term, take-or-pay off-take contract with Mitsubishi Corporation, a large, diversified trading company in Japan. Under the terms of the extension, Pinnacle will supply 80,000 to 90,000 metric tons per annum of industrial wood pellets to Mitsubishi beginning in Q1 2023. The industrial wood pellets will be used by a biomass power generation plant in Japan. “We are excited to grow our business with our Asian customers,” said Duncan Davies, CEO. “We have developed a special relationship with Japan and we share their strong commitment to decarbonization and their replacement of fossil fuels with sustainable wood pellets.” Wood pellet usage in Japan has continued to grow alongside the build-out of biomass generating capacity there, providing Pinnacle with a geographically advantaged opportunity to continue expanding in this market.

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Finance & Economics

5 things learned covering California’s housing crisis

By Matt Levin
The Orange County Register
January 7, 2021
Category: Finance & Economics
Region: United States, US West

After three-plus years covering California’s housing crisis… I wanted to share a few lessons I’ve learned: 1: There are really THREE housing crises. …The first and most urgent crisis is the 150,000 homeless Californians sleeping in shelters or on the streets. …The second housing crisis involves the 7.1 million Californians living in poverty. …California’s third housing crisis afflicts a younger generation of middle-class and higher-income Californians. …2: The rise of telework is going to dilute demand to live in dense, urban environments. …3: The big dividing line in housing politics is whether you think one more unit of market-rate housing is a good thing or a bad thing. It is mostly a good thing, but it depends. …4: The state construction workers’ union has way more influence than you think it does. 5: Newsom is not Dr. Manhattan.

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Despite fading housing starts, Japan’s non-residential construction remains an opportunity!

By Russ Taylor, President
Russ Taylor Global
January 8, 2021
Category: Finance & Economics
Region: International

Japan’s Cabinet has approved an additional economic package worth 73.6 trillion yen (US$707 billion) to keep the economy on a recovery track. The government estimates the stimulus measures will boost Japan’s GDP by around 3.6%. …Consumer confidence in Japan improved for the third consecutive month in November, but the pace slowed. …Total housing starts are predicted to reach about 800,000 units in 2020 – a large drop from 905,000 in 2019. This was not only caused by COVID-19, but also from the increase in the consumption tax from 8% to 10% that occurred in late 2019. Following an expected rebound in 2021, the overall housing starts trend is then expected to move lower over the next 5 years. …Non-Residential Demand …Wood frame construction has consistently accounted for around 10% of total floor area in non-residential construction. …With government incentives in place to encourage increases in wood construction in non-residential uses, it is conceivable that wood’s share could double or even triple the current floor area by 2025.

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Wood, Paper & Green Building

The Construction Record Podcast: naturally: wood Special – An interview with architect Ray Wolfe

Daily Commercial News
January 8, 2021
Category: Wood, Paper & Green Building
Region: Canada, Canada West

Welcome to a special episode of the Construction Record podcast brought to you by naturally:wood, British Columbia’s information centre about sustainable forestry, tree species, green building and design. In today’s episode I’m speaking with Ray Wolfe, an architect and partner at ThinkSpace Architecture Planning and Interior Design and a contributing author of “design Options for Three and Four-Storey Wood School Buildings in British Columbia,” a report prepared by thinkspace and fast + epp for the Canadian Wood Council and Wood Works! BC. The report looks into the need for taller wood-based institutional buildings like schools particularly in cities like Vancouver where real estate is at a premium. Wolfe also goes into the other benefits of wood construction both for schools and other buildings and the progress made as wood becomes a more prevalent choice for construction of many different types of structures.

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Forestry

$6 painting turned into $10,000 charity windfall

By Binny Paul
Campbell River Mirror
January 7, 2021
Category: Forestry
Region: Canada, Canada West

A Campbell River woman’s donation of an original Sybil Andrews painting from her family’s collection fetched the community’s hospice $10,000. The 1952 painting ‘Hauling’ was appraised and sold by the Heffel Gallery in Vancouver, said Louise Daviduck, executive director of the Campbell River Hospice Society. Campbell River resident Joy Sharpe donated the artwork from her family’s collection to the hospice where she volunteered for many years. …‘Hauling’ depicts a logging truck displaying the British-Canadian artist’s signature linocut technique. “I thought the painting was a suitable representation of Campbell River,” said Sharpe referring to the historic logging days of the city.

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Cords and boards part of logging language

By Bill Cook, retired MSU Extension forester
The Daily Press
January 7, 2021
Category: Forestry
Region: United States, US East

Loggers, foresters, and wood mills use specialized units of measurement to describe wood in both standing trees and cut forest products. Cords, boards, MBF, bolts, and tons are a few of the more common terms. Obtaining market-suitable volumes from tapered, irregular cylinders pose geometrical and processing challenges. Tree stems come in a variety of shapes, tapers, diameters, lengths, and other size elements. …A logger manufactures roundwood volumes from standing trees, and then sells those products to different mills. …The merchantable bole (stem, trunk) has been the traditional focus of measurements. …A cord is a stack of small logs, called sticks or pulpwood, that are generally unmarketable for higher value products, although in some regions, sawtimber and veneer logs are also sold in cord units. …A cubic foot is the volume equivalent of a block of wood 12x12x12 inches. …A board foot is the volume equivalent of a block of wood 1x12x12 inches.

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$1 million available for projects that diversify markets for wood from region

Vermont Biz
January 7, 2021
Category: Forestry
Region: United States, US East

The Future Forest Economy Initiative is investing $250,000 to enhance markets for certified wood and to strengthen the supply chain for wood in the Northern Forest region through a grant to the Trust to Conserve Northeast Forestlands (TCNEF). “Only a fraction of the forestland in our region is green certified,” said Joe Short, vice president of the Northern Forest Center, which manages the Future Forest Economy program. “Certifying logging companies through TCNEF’s Master Logger program will increase the volume of certified, sustainably harvested wood available to the region’s mills. Certified lands alone are not enough to meet demand for certified wood in the region.” The three-year grant award will enable TCNEF to expand the ranks of certified Master Logger companies in the region, with a focus on New Hampshire, New York and Vermont.

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Rewilding: Can it save our wildlife and temper climate change?

By Jocelyn Timperley
BBC Science Focus Magazine
January 8, 2021
Category: Forestry
Region: International

We’ve pushed nature to the brink, but it may be capable of repairing the damage – provided we step aside and let it go back to doing what it does best. …Abernethy National Nature Reserve includes one of the largest remnants of ancient Caledonian pine woodland. Decades of work by Royal Society for the Protection of Birds Scotland and others is restoring and expanding it. The project, which now has a 200-year plan, is based on carefully encouraging natural processes to flourish, making it perhaps Britain’s most successful example of the ‘rewilding’ concept so far. …In the years since the term ‘rewilding’ was first coined by US environmentalist Dave Foreman, people have struggled to agree on what it means. …The aim of rewilding was to create self-sustaining ecosystems that could return to pre-human levels of biodiversity, but the idea evolved as it spread.

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The bold plan to save Africa’s largest forest

By Peter Yeung
BBC News
January 7, 2021
Category: Forestry
Region: International

The Congo Basin contains the world’s second-largest rainforest, crucial for regulating the world’s climate. Inside it, a plan to halt the forest’s decline is bearing fruit. …The people of Nkala’s relationship with the forest goes back generations, but in one fundamental way it has recently changed. Under a revolutionary scheme in DR Congo – which is home to the majority of the Congo Basin, the world’s second-largest rainforest – the 300 villagers of Nkala were granted 4,100 hectares of forest in December 2018. For the first time in their history, the community had the legal right to own and manage the forest they live in. Two years on, early signs suggest that community ownership could become a powerful tool in halting the decline of the Congo Basin rainforest, while alleviating poverty in one of the world’s poorest regions. …The Congo Basin contains some 314 million hectares of primary rainforest – the oldest, densest and most ecologically significant kind. 

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The forestry vision that turned into a nightmare

By Lucy Battersby
The Brisbane Times
January 8, 2021
Category: Forestry
Region: International

When Nationals politician John Anderson released a policy called Plantations for Australia: The 2020 Vision back in 1997, he had no idea how nightmarish that vision would turn out to be. Instead of creating thousands of hectares of environmentally friendly native forests and a thriving timber industry, one ASX-listed company has been left with a charred mess and no easy way of cleaning it up. This is a story of some of the worst government decisions in recent history crashing into the extreme heat of the 2019-20 summer. …Then came the fires. …The only options remaining now are to either burn millions of tonnes of trees, or to build the port and ramp up harvesting and trucking, which some say would damage the island’s eco-tourism credentials.

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Behold the world’s tallest trees

By Sara Kiley Watson
Popular Science
January 7, 2021
Category: Forestry
Region: International

It takes centuries of slow growth for the world’s tallest trees to reach heights far beyond the tops of their surrounding forests. As they stretch for the sky, the giants nurture ever-changing ecosystems of plants and animals. Since 2015, Steven Pearce and Jennifer Sanger, a Tasmanian ­photographer-and-­ecologist duo, have been documenting Earth’s unique and underappreciated behemoths. The pair use rock climbing gear to ascend hundreds of feet from the trees’ roots to their wind-punished crowns. With the help of a homemade dual-camera rig attached to a pulley system, Pearce shoots dozens of photos over several weeks at each site and combines them into massive gigapixel panoramas. The resulting images capture the long-standing beauties before human ­interference can diminish or destroy them.

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Carbon, Climate & Bioenergy

With Williamstown, Conway explores feasibility of carbon market program

By Mary Byrne
The Recorder
January 7, 2021
Category: Carbon, Climate & Bioenergy
Region: United States, US East

CONWAY — The town is partnering with another Western Massachusetts community to explore the feasibility of entering into the carbon market, … to mitigate the effects of global warming while also offering financial benefits to owners of forestland. “We’re beginning to look at entering into an agreement with Williamstown to create a program where owners of forestland could get paid for having and implementing a Forest Stewardship Plan that would address global warming, or climate change, through participating in a carbon market,” said Town Administrator Tom Hutcheson A carbon market is a cap and trade system aimed at reducing the amount of carbon emitted into the atmosphere. “If owners of forestland had their Forest Stewardship Plan certified, they could get paid by the existence of this carbon market — they would get credited for saving carbon from entering the atmosphere,” Hutcheson said.

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$4.8M will upgrade Forest Bioproducts Research Institute facilities, bolster bioproduct research

University of Maine
January 7, 2021
Category: Carbon, Climate & Bioenergy
Region: United States, US East

The University of Maine Forest Bioproducts Research Institute (FBRI) will upgrade its Technology Research Center (TRC) … and Process Development Center (PDC) … to bolster ongoing efforts to create new bioproducts, increase production and find uses for woody biomass materials typically considered waste. The Defense Logistics Agency (DLA) awarded FBRI $4.8 million for its research in crafting renewable fuel, heating oil, chemicals, plastics and other goods from woody biomass at a large scale. …Equipment added to TRC … will help researchers process biochar, charcoal derived from the pyrolysis of wood, as well as pre-process biomass. Upgrades at PDC will boost nanocellulose production. “It’s a significant upgrade in our pilot-scale infrastructure,” says Pendse, also a chemical engineering professor. “This significant investment will allow us to rapidly advance development in several major areas of ongoing research.”

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Health & Safety

Wood stoves smoking us out

By Rochelle Baker
Castanet Kelowna
January 7, 2021
Category: Health & Safety
Region: Canada, Canada West

…folks in Canada’s small towns and rural communities should be relishing the benefits of fresh, clean air. But rather the opposite is true, said Michael Mehta, a professor of geography and environmental studies at Thompson Rivers University in Kamloops, B.C. Many rural residents’ health is at significant risk due to high levels of airborne pollutants from wood-burning stoves, both indoors and out, said Mehta, who specializes in environmental and health risk issues. “People in the rural parts of Canada should have some of the cleanest air in the country,” said Mehta. “But, actually, some have polluted air that is considerably worse than any city, and wood stoves are the main contributor.” It’s not unusual for households in small and rural communities to use wood stoves to heat their homes in the winter months, but they come with detrimental effects to human health and the environment, he said. 

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