Daily Archives: May 9, 2019

Today’s Takeaway

US – China trade dispute creates palpable frustration

May 9, 2019
Category: Today's Takeaway

US business is frustrated with Trump’s aggressive stance on China, fears trade negations may collapse. In related news: US hardwood producers remain optimistic despite negative turn; the International Trade Commission says US cabinetmakers are harmed by Chinese imports; and China’s construction sector continues to grow as economy slows, softwood inventories rise.

In other news: BC Liberals and NDP spar over forest policy; federal carbon tax panned in Ontario; inside California’s Megafire on PBS; US Forest Chief on the ‘crisis in the woods‘; AF&PA’s Donna Harman on charging for paper bags; the Narwhal on saving spotted owls; and the emergence of markets for Brazil’s eucalyptus.

Finally, genetically engineered trees could save our forests, but it won’t be easy.

Kelly McCloskey, Tree Frog Editor

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Business & Politics

China’s construction sector continues to grow as economy slows in 2019

Eric Wong, Managing Director, Canada Wood China
Canada Wood
May 8, 2019
Category: Business & Politics
Region: Canada, International

China’s economy continued to slow in 2019, with Q1 GDP growth at 6.4%, compared to 6.6% in 2018. However, the growth is slightly higher than market expectations. This is attributed to higher factory production, which has benefited from additional tax cuts, infrastructure spending, and other government fiscal stimulus. …Looking ahead, China’s economy continues to be under pressure this year. The trade conflict with the United States and related uncertainties ranked as the top risk to China’s economy. …Softwood lumber inventories at Taicang port and the surrounding area were 1.48 million cubic metres in late February 2019, up 370,000 cubic metres or 33% compared to last month. It was the second consecutive monthly increase. The inventory level of SPF was 500,000 cubic metres, a surge of 200,000 cubic metre, or 67% from last month. In related Canada Wood China news:

Canada Wood, Jiaotong University issue guideline book on timber buildings

Nail Laminated Timber floor panels passed fire test

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With the B.C. forestry sector in a downturn, government and opposition are split on solutions

By David P. Ball
The Toronto Star
May 8, 2019
Category: Business & Politics
Region: Canada, Canada West

VANCOUVER—British Columbia’s rival parties chopped at each other’s forestry records on Tuesday, as sparks flew in the legislature. The partisan attacks came roughly a week before Canfor is set to axe jobs in its Mackenzie and Isle Pierre sawmills — just the latest in a string of industry layoffs amidst high timber prices and slashed demand. BC Liberal forestry critic John Rustad said the governing New Democrats “completely destabilized” an industry that’s been “a backbone” of the province’s economy for more than a century. “The foundation is now being completely eroded if not completely destabilized,” Rustad said in an interview Tuesday. …Recent layoffs suggest the pain is real. …Forestry firms have framed this as “temporarily curtailing operations.” For the more-than dozen B.C. towns that depend on the work, that means job losses. …Rustad questioned whether B.C. is doing enough as the U.S. continues its trade war over timber.

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US business frustrated as Trump reignites China trade fight

By James Politi and Andrew Edgecliffe-Johnson
The Financial Times
May 9, 2019
Category: Business & Politics
Region: United States, International

As the Trump administration ploughed ahead with plans to slap higher tariffs on Chinese goods instead of striking a deal to end the trade war with Beijing, the US Council for International Business reacted with palpable frustration. …Business had been growing increasingly confident that Washington and Beijing would reach an agreement that may not resolve all of their disputes but would lower the temperature and soothe markets. Even for business leaders who saw some benefit to the administration’s aggressive stance towards China… the risk of a collapse in the talks was a disappointment. Some sectors will be particularly hard hit, because they rely heavily on products that will be subject to higher tariffs. These include… chemical companies, clothing manufacturers, and homebuilders that need tools, wood and glass products from China.

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International Trade Commission preliminary investigation finds U.S. cabinetmakers harmed by Chinese imports

By Karen Koenig
The Woodworking Network
April 22, 2019
Category: Business & Politics
Region: United States, International

WASHINGTON – In a 4-0 vote, the U.S. International Trade Commission has determined that “there is a reasonable indication” that American cabinetry manufacturers are being harmed by Chinese imports of wooden cabinets and vanities. …Announced April 19, the preliminary determination by the USITC paves the way for the U.S. Department of Commerce to continue its antidumping and countervailing investigations. …The DOC will make its preliminary countervailing duty determination on or about May 30,  and its preliminary antidumping duty determination on or about Aug.13. …The investigations stem from a March 6 petition by the American Kitchen Cabinet Alliance. …A coalition is currently being formed to represent the cabinetry importers impacted by the petition. …The alleged dumping margins for China range from 177.36 to 262.18 percent. 

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Domtar Announces an Increase to Its Quarterly Dividend

Domtar
Business Wire in the National Post
May 8, 2019
Category: Business & Politics
Region: United States, US East

FORT MILL, S.C. — Domtar Corporation announced that its Board of Directors approved a 4.6% increase to its quarterly dividend (from $0.435 per share to $0.455 per share) on its common stock. The Board of Directors declared the dividend payable on July 16, 2019 to stockholders of record as of the close of business on July 2, 2019. “The dividend increase reflects our strong balance sheet and the confidence we have in the long-term growth prospects for the company,” said John D. Williams, President and Chief Executive Officer. “We are committed to returning a majority of our free cash flow to shareholders while we continue to invest in organic growth and take advantage of strategic acquisition opportunities.” [END]

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US trade negotiators optimistic despite negative turn with China

By the National Hardwood Lumber Association
American Journal of Transportation
May 8, 2019
Category: Business & Politics

It appears U.S. – China trade negotiations will continue in Washington, D.C. this week as scheduled despite concerns that President Trump’s Sunday night tweet had derailed the process. …In response to the Chinese reversals, the U.S. announced that tariffs on $200 billion of Chinese goods will increase from 10 percent to 25 percent taking effect at 12:01 am EST on Friday, May 10, potentially while negotiations are underway. …There is also sense from many that these moves are designed as a negotiating tactic to reinforce the U.S.‘s position that China must make significant structural changes to their economic policies if we are to move forward. …While this uncertainty is not beneficial to many businesses in the hardwood sector, many in the Administration believe it is the only way to extract concessions from China.

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Wood, Paper & Green Building

Charging for Paper Bags

By Donna Harman, American Forests & Paper Association
The New York Times
May 8, 2019
Category: Wood, Paper & Green Building
Region: United States

Donna Harman

Re “Paper or Plastic? The City Has a Plan to Get You to Say No to Both”, about the New York City Council’s approval of a nickel charge on paper bags following the statewide ban on single-use plastic bags: Paper is part of the solution, not the problem. Paper is recyclable, compostable, reusable and made from a renewable resource, trees, which capture and store carbon from the atmosphere. By weight, more paper is recovered for recycling from municipal waste streams than glass, plastic and aluminum combined. About two-thirds of the energy used to make paper, including paper bags, comes from renewable, carbon-neutral biomass, not fossil fuel. About 88 percent of the water used to make paper bags is returned to the waterway after being treated. …That environmental success story should be encouraged, not punished by taxation.

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XLam confirms it’s closing New Zealand operations

By Tina Perinotto
The Fifth Estate Australia
May 2, 2019
Category: Wood, Paper & Green Building
Region: International

After months of deliberation and consultation, cross laminated timber company XLam today (Thursday) confirmed fears it would close its New Zealand operations at Nelson. A statement from the company said the operations are no longer considered commercially sustainable and that “a new business model” would “usher in a more commercially competitive and sustainable way for the company to supply CLT to the market.” The move, first flagged by The Fifth Estate in early April, comes after the collapse of the Strongbuild business in Sydney and the failure of the voluntary administrators to find buyers for the business at Bella Vista as a going concern. A statement from Xlam said the move would allow more efficient servicing of demand for its product in New Zealand. “As demand for off-site fabrication, mass timber construction and CLT continues to grow, so too does the XLam business, with a focus on improved customer solutions and increased manufacturing utilisation”.

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Forestry

Close to Completion: Wildfire Risk Mitigation Project in Cheakamus Community Forest

Forest Enhancement Society of BC
May 8, 2019
Category: Forestry
Region: Canada, Canada West

WHISTLER, BC—The Cheakamus Community Forest (CCF), one of 50+ community managed forests in the province, is completing a fuel-thinning wildfire risk mitigation project as part of a landscape level fuel break on the southern slopes of Whistler Mountain. The project, along both sides of the Cheakamus Lake Forest Service Road, serves as the main access point into Cheakamus Lake and Garibaldi Provincial Park. The project is funded by the Forest Enhancement Society of B.C. (FESBC), the Resort Municipality of Whistler (RMOW), and all revenue generated from the sale of logs from the thinning are applied to reduce the cost of treatment. The purpose is to alter wildfire behavior by modifying forest densities and structure in this high priority, heavily used portion of the community forest to protect the south facing slopes of Whistler Mountain, the community of Whistler, and the western edge of Garibaldi Provincial Park.

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City of Kimberley receives $700,000 for fire interface work

By Carolyn Grant
BC Local News
May 8, 2019
Category: Forestry
Region: Canada, Canada West

Earlier this year, the City of Kimberley and its Fire Department decided to test the waters on grants available for fuel management work on city lands. With the way grants for fuel management work were distributed changing, there was a pot of money available, in addition to the new $100,000 per year limit, in a Community Resilience Investment Program. …The city applied for $1.8 million in funding over three years and just recently learned that they had been approved for $700,000 over two years. “If we fulfill the work for the first two years, we will get the third year and the $1.8 million in total,” Mayor Don McCormick said. There will be five areas of city lands included in the treatments. Other grant applications for work outside the city are underway, McCormick says. That piece will require more collaboration with outside agencies, including Canfor, the Regional District of East Kootenay and the Ktunaxa among others.

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Claims about ramped up logging need some context

Letter By Al Siebring, Mayor, North Cowichan
BC Local News
May 8, 2019
Category: Forestry
Region: Canada, Canada West

Al Siebring

Ms. Dobell’s letter leaves the impression that North Cowichan has ramped up its logging operations in 2019, a year in which council has notionally indicated there would effectively be a “pause” on active new logging. She writes that “we are increasing our logging activities 50 per cent over 2017. With blowdown recovery and patch logging we are expecting to log over 16,000 cubic meters in 2019 versus 10,500 cubic meters in 2017.” These numbers need context. While it is true that we will be taking about 16,000 cubic metres of timber out of the forest this year, it’s important to note that about half of that total consists of logging contracts that were awarded for 2018, but were not completed due to a long and intense fire season last summer. The municipality was obligated, by contract, to allow that work to proceed this year; not doing so could have left us open to legal challenge.

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Banff emergency crews prepare for wildfire season with mock exercise

By Adam MacVicar
Global News
May 8, 2019
Category: Forestry
Region: Canada, Canada West

Alberta’s wildfire season is fast approaching and the Town of Banff, along with Parks Canada, is making sure its prepared for a worst-case scenario. Emergency officials conducted a mock wildfire exercise on Wednesday with fire crews, rescue teams and communications departments from across southern Alberta. The scenario: a fast-moving wildfire approaching the community. For the 150 personnel taking part in the drill, it was an opportunity to be prepared, just in case such a situation presents itself as conditions begin to dry heading into the summer season. …The exercise simulated the emergency response to an active wildfire over a three-day period, all condensed into a single day. …One area of focus for the simulation was the south side of the Bow River, with multiple tourist attractions and homes in the area.

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Mayor Brown seeks solutions to Merritt’s forestry woes

By Dara Hill
The Merritt Herald
May 8, 2019
Category: Forestry
Region: Canada, Canada West

Mayor Linda Brown is eager to explore community forestry and long-term development in her hometown of Merritt after returning from a recent conference. Brown said she was busy networking at the Southern Interior Local Government Association (SILGA) event last week, and exploring Merritt’s potential to adopt a community forest program such as the one in Logan Lake. “There are a lot of little forestry companies that are struggling this year, and the forestry industry is struggling,” Brown said. “Local forestry companies are saying that if they don’t get fibre, they’re pulling out. Our biggest mill only has one shift on now, and that gets shut down every now and again, so that is a worry.” …It is not just the current state of forestry, Brown said she is concerned about the state of primary industry in Merritt overall.

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Forest Act changes spark debate

By David Wiwchar
The Peak 93.3
May 8, 2019
Category: Forestry
Region: Canada, Canada West
The BC NDP Government says they’re cleaning up the forestry debris left by the former Liberal government as they make adjustments to the forestry act. But Liberal Forests critic John Rustad says a proposed harvest reduction will have a ripple effect through the entire industry. “What we’re seeing in the log harvest being reduced, and the mills taking down time because they don’t have logs,” he said. Mid-Island Pacific Rim MLA Scott Fraser says the Coastal Forest Sector Revitalization Initiative will make more fibre available to mills and restore many of the forestry jobs lost under the Liberals’ watch. “These guys oversaw 30,000 job loses, 100 mills closed, massive increase in raw log exports and the demise of the industry from a workers point of view as they catered to whoever donated the most to them,” he said.

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Nicola Valley fire crews receive wildfire prevention funds

By Dara Hill
Merritt Herald
May 8, 2019
Category: Forestry
Region: Canada, Canada West

Several groups in the Nicola Valley are expanding their wildfire preparations thanks to a funding boost from the provincial government. The City of Merritt and the Lower Nicola Indian Band are set to receive $71,500 and $76,400 for fuel and vegetation management, respectively. The TNRD is also set to get a $100,000 piece of the pie to assist with education and cross-training. “We’re certainly happy to receive those funds,” said Merritt’s fire chief David Tomkinson, who noted his department plans to spend the funds to employ a FireSmart coordinator and preventative measures such as prescribed burning, pruning and goat grazing.  The funds will also help the fire department update their community wildfire protection plan, which Tomkinson said hasn’t been updated since 2015 and will help them apply for even more grants in the future.

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Public outcry wins reprieve (at least temporarily) for old-growth forest near Port Renfrew

By tim Collins
The Sooke News Mirror
May 8, 2019
Category: Forestry
Region: Canada, Canada West

More than 100 hectares of old-growth forest near Port Renfrew will get a reprieve from logging, at least temporarily. B.C. Forests Ministry confirmed the seven cutblocks up for auction through the government’s logging agency B.C. Timber Sales was scheduled to close this Friday, but an outcry by the Port Renfrew Chamber of Commerce, the Ancient Forest Alliance and other groups led to a reconsideration. “[B.C. Timber Sales] is postponing this timber sale to engage with a local stakeholder inadvertently missed during the initial referral process,” said Dawn Makarowski, a ministry spokesperson. And while this is a long way from a long-term government commitment not to log the area, the news is viewed as a victory by opponents of old-growth logging.

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Feds asked to step in to save endangered spotted owls from Canadian extinction

By Sarah Cox
The Narwhal
May 8, 2019
Category: Forestry
Region: Canada, Canada West

With only a handful of spotted owls left in B.C.’s wild, a national conservation group is demanding that federal Environment Minister Catherine McKenna step in and produce a long-overdue habitat action plan to help save the iconic species from Canadian extinction. In a letter sent to McKenna on Wednesday, the environmental law charity Ecojustice, acting for the Wilderness Committee, called on the minister to take action following decades of “mismanagement” by the B.C. government, which has prioritized logging in the owl’s habitat over legally required protections, according to an expert report. …The primary threat to the spotted owl is the loss and fragmentation of its habitat —  mainly comprised of old-growth forests of Douglas fir, western hemlock and western red cedar — in southwestern B.C., the only place it is found in Canada.

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B.C.’s salal shrubs are dying and extreme weather could be the culprit Social Sharing

By Clare Hennig
CBC News
May 8, 2019
Category: Forestry
Region: Canada, Canada West

One of B.C.’s most abundant plants is in trouble: patches of hardy salal plants are turning up brown, crispy and dying. Richard Hamelin, a professor of forest pathology at UBC’s Faculty of Forestry, knew something was seriously wrong when he started getting reports — from people in the Sea to Sky corridor, Vancouver Island, the Fraser Valley, and beyond — about the dying salal. “We thought right away that something really unusual is happening when we were getting calls from a lot of different areas of the province,” Hamelin said. The evergreen, shrub-like plant is widespread across the province’s forests and is known for its hardiness. That’s partly why the sight of the dried, brown leaves was so noticeable and surprising, Hamelin said. “People have been taking pictures, they’ve been posting them on social media,” he told CBC’s The Early Edition.

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Forest Service chief: U.S. faces ‘crisis’ in the woods

By Don Jenkins
The Capital Press
May 7, 2019
Category: Forestry
Region: United States

Vicki Christiansen

SILVERDALE, Wash. — About 80 million acres of national forests are ripe for burning up, so the U.S. Forest Service will have to be smart about picking which ones to thin, the agency’s chief, Vicki Christiansen, says. A native of Washington state, Christiansen attended the annual meeting of the Washington Farm Forestry Association, a group that represents small forest landowners. In an interview, Christiansen said that the agency needs to do more to head off catastrophic fires. “Quite frankly, the scale is not big enough,” she said. “We’re not reducing the risk. America’s forests are in crisis.” …Under Christiansen, the Forest Service has adopted a fire-prevention strategy that stresses working with states and private landowners. …In a budget plan submitted to Congress, the Trump administration has proposed spending $450 million on thinning forests and controlled burns. 

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Genetically engineered trees could save our forests—but it won’t be an easy fix

By Jason Delborne
The Genetic Literacy Project
May 8, 2019
Category: Forestry
Region: United States

Compared to gene-edited babies in China and ambitious projects to rescue woolly mammoths from extinction, biotech trees might sound pretty tame. But releasing genetically engineered trees into forests to counter threats to forest health represents a new frontier in biotechnology. Even as the techniques of molecular biology have advanced, humans have not yet released a genetically engineered plant that is intended to spread and persist in an unmanaged environment. Biotech trees – genetically engineered or gene-edited – offer just that possibility. …Although there are many potential applications of biotechnology in forests, such as genetically engineering insect pests to suppress their populations, we focused specifically on biotech trees that could resist pests and pathogens. Through genetic engineering, for example, researchers could insert genes, from a similar or unrelated species, that help a tree tolerate or fight an insect or fungus.

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Washington, Federal Officials Sign Agreement To Protect Forests

By Courtney Flatt
Oregon Public Broadcasting
May 8, 2019
Category: Forestry
Region: United States, US West

State and federal officials signed an agreement Wednesday to protect Washington’s forests and wildlife. The plan would combine resources to fight destructive wildfires, threats to forest health and challenges faced by salmon and orcas. …The Shared Stewardship Agreement was signed by officials from DNR, the Washington Department of Fish and Wildlife, the U.S. Forest Service and the regional forester. The plan “establishes a framework” to reach certain goals. It seeks to make forests less vulnerable to wildfires, insects, disease and droughts. It also would protect the waters of Puget Sound and protect fish and wildlife. The agreement would allow the various departments to take more of a landscape-based approach to conservation, said Kelly Susewind, Washington Department of Fish and Wildlife director.

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“Inside the Megafire” premiers May 8 on PBS

By Bill Gabbert
Wildfire Today
May 8, 2019
Category: Forestry
Region: United States, US West

In this episode, NOVA reports from the front line of the Camp Fire, the deadliest wildfire in California history, and follows scientists racing to understand what’s behind the recent rise in record-breaking megafires—from forestry practices, to climate change, to the physics of fire itself. Just a few months after California’s devastating Carr Fire, another blaze became the deadliest and most destructive wildfire in the state’s history. As residents raced to evacuate, the Camp Fire devoured 150,000 acres and claimed 86 lives. But how did it get so big so fast? And why are megafires like these becoming more common? NOVA goes to the front lines of the deadliest fires of California’s 2018 fire season to hear from the people who had to flee—and the scientists racing to understand what’s behind these record-breaking infernos. 

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1,000 Northstate students attend Shingletown logging conference

KRCR TV
May 8, 2019
Category: Forestry
Region: United States, US West

SHINGLETOWN, Calif. — It was an exciting day for 1,000 Northstate students who attended the 2019 Sierra-Cascade Logging Conference In Woods Show in Shingletown on Wednesday. The eager little minds got to wear hardhats and experience logging and forestry in action at the Sierra Pacific Industries Timberland Lassen District, outside of Shingletown. The goal for the event is to share and inspire the local youth ranging from elementary to high school students to teach them different industrial equipment, science, and forestland. …Ted James, Former President of Sierra Cascade Logging Conference says seeing the kids faces as they watch loggers in action is the biggest gain for them and seeing the students gain the education from the experience.

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Republican Bruce Westerman proposes curbing western wildfires through forest management overhaul

By Josh Siegel
Washington Examiner
May 8, 2019
Category: Forestry
Region: United States, US West

Bruce Westerman

Rep. Bruce Westerman, R-Ark., introduced legislation Wednesday to expand the pace and scale of forest management projects meant to reduce the risk of wildfires that have become more destructive and common. The bill represents a continued push by Republicans backed by the Trump administration who argue poor forest management is contributing to the severity of wildfires in California and other parts of the western United States. “We have made significant gains, but there is a lot of work to be done,” Westerman said ahead of the bill’s official release. “I won’t be at all surprised if we continue to see fires as big as what saw in California last year. We probably need a decade or more of sound forest management.” Westerman’s “Resilient Federal Forests Act of 2019” aims to streamline environmental reviews so the U.S. Forest Service and Bureau of Land Management can more easily conduct forest-thinning projects on federal lands to help relieve wildfires. 

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Brazil’s eucalyptus log exports soar

By CGTN America
YouTube
May 8, 2019
Category: Forestry
Region: International

Brazil is Latin America’s biggest economy, and one of its top exports is wood. But with rising concerns over deforestation, businesses are turning to sustainable alternatives. CGTN’s Paulo Cabral reports on the emergence of a new market for eucalyptus.

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Ex Brazilian environment ministers blast Bolsonaro’s forestry and water policies

Merco Press
May 9, 2019
Category: Forestry
Region: International

Ricardo Salles

Eight former Brazilian environment ministers blasted new right-wing President Jair Bolsonaro and his administration in a letter on Wednesday, saying it is dismantling the country’s environmental protections. The former officials criticized the government’s decision to strip the environment ministry’s authority over forestry and water agency services, while also saying a lack of clear directives to combat climate change is threatening Brazil’s ability to meet its commitments to cut greenhouse gas emissions. “All this reinforces, in the end, a sense of impunity, which is the byword for more deforestation and more violence,” they wrote, arguing that this perceived dismantling was unconstitutional. Brazil’s current Environment Minister Ricardo Salles responded point by point to the letter in a statement and blamed external forces for what he saw as a campaign against the country.

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FSC disassociated from the Brazilian forestry company, Jari Group

Global Wood Markets Info
May 8, 2019
Category: Forestry
Region: International

The Forest Stewardship Council (FSC) has disassociated from the Brazilian forestry company, Jari Group (Jari), after an investigation carried out by an independent panel of environmental, social and economic experts concluded that the company had breached FSC’s Policy for Association. After analyzing all the evidence and conducting a field visit and in-depth stakeholder interviews, the panel determined that Jari had been involved in illegal logging or the trade in illegal wood or forest products and had also failed to formally and consistently recognize the existence of traditional communities within its forest management area, leading directly to the violation of traditional and human rights in forestry operations.

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Carbon, Climate & Bioenergy

Inslee signs bill establishing 100% energy standard in Washington

By Erin Voegele
Biomass Magazine
May 8, 2019
Category: Carbon, Climate & Bioenergy
Region: United States, US West

Jay InsleeWashington Gov. Jay Inslee signed a suite of clean energy legislation into law May 7, including The Washington Clean Energy Transformation Act, which sets a goal of 100 percent clean electricity by 2045. The bill, SB 5116, was introduced in January. …According to Inslee’s office, the bill aims to phase out all coal power by 2025 and achieve a carbon-neutral electricity supply by 2030. It also sets a goal for the state to transition to a 100 percent clean electricity supply by 2045. The bill’s definition of renewable resource includes renewable natural gas and biomass energy, including the organic byproducts of pulping and the wood manufacturing process, animal manure, solid organic fuels from wood, forest for field residues, untreated wooden demolition or construction debris.

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New Plan To Add Biomass Power Subsidies To Electric Rates Draws A Crowd

By Annie Robeik
New Hampshire Public Radio
May 8, 2019
Category: Carbon, Climate & Bioenergy
Region: United States, US East

State senators heard three hours of testimony Tuesday from dozens in the New Hampshire forest products industry who support a plan to resurrect biomass energy subsidies. The plan… is a version of a law passed last year that’s since stalled in a legal challenge before the Federal Energy Regulatory Commission. The state’s biomass plants have also appealed to the state Supreme Court for the law to be enforced. Timber and biomass workers say all this uncertainty has already chilled their industry, leading power plants to idle and orders of woodchips and equipment to go undelivered. Without a financial boost – from the subsidy plan that would last three years – they say they could lose hundreds or thousands of jobs. …Others suggested the state’s timber industry could collapse without the market for low-grade wood that the biomass plants provide.

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