Daily News for April 24, 2024

Today’s Takeaway

West Fraser rebounds in Q1, driven by home construction

The Tree Frog Forestry News
April 24, 2024
Category: Today's Takeaway

West Fraser Timber reported Q1 earnings of US$35M on the strength of home construction. In related news: new home sales post solid gains in March; US inflation is likely to keep rates elevated; Suzano invests in Canadian startup Bioform Technologies; and LP Houlton seeks emissions licence in Maine. Meanwhile: the US Trade Court ordered the Feds to better explain Canadian lumber duties; and Canada appoints a commission to avoid future West Coast port disputes

In Forestry/Wildfire news: BC wood pellet exports are panned by forestry critics; wildfire threats raise public awareness of BC’s forest industry; Saskatchewan unveils new airtankers to fight forest fires; and so-far-so-good in Ontario but conditions are ripe for more fires. Meanwhile: Eastern Ontario Model Forest and Mission, BC look to employ SFI’s Indigenous Peoples and Families Module; while IKEA looks to FSC to support its growth.

Finally, a new study says BC and Alberta caribou are up 52% due to wolf culls.

Kelly McCloskey, Tree Frog Editor

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Business & Politics

Trade Court Orders Feds To Rethink Canadian Lumber Duties

By Alyssa Aquino
Law360
April 23, 2024
Category: Business & Politics
Region: Canada, United States

The US Court of International Trade ordered the US Department of Commerce to redo countervailing duties on Canadian lumber, saying the department must better explain its refusal to check whether suppliers for investigated companies had received government subsidies. …”Commerce has recognized that otherwise small changes may nevertheless be considered significant when they can cause such a change in the subsidy rate.” The judge further pointed out that some of the companies had received actual softwood lumber that fell under the duty’s scope from suppliers. [to access the full story a Law360 subscription is required].

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Minister O’Regan appoints Industrial Inquiry Commission on longshoring disputes at Canada’s West Coast ports

By Ministry of Employment and social Development Canada
Government of Canada
April 22, 2024
Category: Business & Politics
Region: Canada, Canada West

Seamus O’Regan

The Government of Canada believes in collective bargaining. …This past summer, however, Canadians experienced an economic disruption that no single dispute should be responsible for. …Minister of Labour Seamus O’Regan announced the appointment of an Industrial Inquiry Commission on the underlying issues in longshoring labour disputes at Canada’s West Coast ports. The Commission will be chaired by Vincent Ready and will include Amanda Rogers as a Member of the Commission. The Commission will soon begin meeting with stakeholders and reviewing consultation submissions from relevant parties. The Commission will present its findings and recommendations in a report to the Minister in Spring 2025. …The goal of this Inquiry is stability. Canada is a reliable trading partner to the world. …But our credibility depends on the stable operation of our supply chains. We must do everything we can to preserve that stability.

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Louisiana Pacific’s Houlton siding plant seeks new air emissions license

By Kathleen Phalen Tomaselli
Bangor Daily News
April 22, 2024
Category: Business & Politics
Region: United States, US East

NEW LIMERICK, Maine — A wood siding manufacturer is filing a new air emissions license application with the state so it can add another line of finish products at its Houlton-area mill. Louisiana-Pacific will file the application with the Maine Department of Environmental Protection on May 3, LP spokeswoman Breeanna Straessle said. Details about the new emissions and their effect on the environment will not be made public until the filing. The new finish will not result in making more products or hiring more employees, according to Straessle. “It is not about capacity. It’s about making a different type of product. Our siding has a cedar finish, this new finish will make a smooth finish with a different texture on the siding,” she said. The Louisiana-Pacific mill, located about five miles outside Houlton, employs approximately 150 people in the area.

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Finance & Economics

West Fraser report Q1, 2024 net earnings of US$35 million

West Fraser Timber Co. Ltd.
April 23, 2024
Category: Finance & Economics
Region: Canada, United States

VANCOUVER, BC – West Fraser Timber reported the first quarter results of 2024. First quarter sales were $1.627 billion, compared to $1.514 billion in the fourth quarter of 2023. First quarter earnings were $35 million, compared to $(153) million in the fourth quarter of 2023. First quarter Adjusted EBITDA was $200 million compared to $97 million in the fourth quarter of 2023. Other highlight include: Lumber segment adjusted EBITDA of $10 million; North America Engineered Wood Products adjusted EBITDA of $188 million; Pulp & Paper adjusted EBITDA of $3 million; and Europe Engineered Wood Products adjusted EBITDA of $(1) million.  “Our North American OSB, plywood and other engineered products had another strong quarter… driven by strength in new home construction, which carried over from the fourth quarter. This was in contrast to ongoing demand softness in our European EWP business and North American lumber business, particularly for SYP lumber with its greater relative exposure to repair and remodelling applications,” said CEO Sean McLaren.

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Hot Economy, Inflation Likely to Keep Rates ‘Higher for Longer

Fannie Mae
April 23, 2024
Category: Finance & Economics
Region: United States

WASHINGTON, DC – Stronger-than-expected economic and inflation data have pushed interest rates higher and financial markets to price in fewer Federal Reserve rate cuts this year, according to the April 2024 commentary from the Fannie Mae Economic and Strategic Research (ESR) Group. While higher mortgage rates present renewed headwinds to the expected recovery in home sales this year, as well as homebuyer affordability more generally, the ESR Group notes that new listings of homes available for sale have continued to rise. While the ESR Group is forecasting existing home sales to rise modestly over the course of the year, it expects the flow of new listings to outpace home sales, which should help gradually thaw housing inventory and contribute to decelerating home price growth. …The ESR Group expects home prices to rise 4.8 percent in 2024, up 1.6 percentage points from last quarter’s projection, and then another 1.5 percent in 2025.

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Despite Higher Mortgage Rates, New Home Sales Post Solid Gain in March

By Robert Dietz
NAHB – Eye on Housing
April 23, 2024
Category: Finance & Economics
Region: United States

Despite higher interest rates last month, new home sales rose in March due to limited inventory of existing homes. However, the pace of new home sales will be under pressure in April as mortgage rates moved above 7% this month, which is expected to moderate sales and increase the use of builder sales incentives this Spring. Sales of newly built, single-family homes in March rose 8.8% to a 693,000 seasonally adjusted annual rate from a downwardly revised reading in February, according to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales in March is up 8.3% from a year earlier. Although consumer demand has been somewhat dampened due to higher interest rates, builders continue to supply new homes to the market to lift inventory to make up for the low resale supply.

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Wood, Paper & Green Building

Suzano Ventures invests up to US$5 million into Bioform Technologies to further develop bio-based plastic alternatives

By Suzano Ventures
Businesswire in the Financial Post
April 24, 2024
Category: Wood, Paper & Green Building
Region: Canada, Canada West

Suzano Ventures, the venture capital arm of Suzano, a market pulp producer, has invested in the Canadian materials science startup, Bioform Technologies. The investment provides up to US$5 million towards the company’s seed round, enabling it to accelerate the development of its novel bio-based plastic alternatives. The products can be manufactured through modified industrial processes already used in the pulp and paper sector. Bioform’s technology rapidly produces wood pulp-reinforced hydrogels to create high-performance plastic alternatives. Bioform’s materials have the potential to be home compostable or recycled through existing paper recycling processes and do not require fossil-based inputs. The technology is highly versatile and has a number of applications where it could replace conventional single-use plastics, including paper recyclable thermoformable films for packaging applications and compostable heat-sealable films for pouches, agriculture, and garbage bags.

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Fire engulfs old Edmonton municipal airport hangar

By Craig Ellington and Alex Antoneshyn
CTV News Edmonton
April 23, 2024
Category: Wood, Paper & Green Building
Region: Canada, Canada West

A historical hangar at the former Edmonton municipal airport beside the NAIT main campus was on fire Monday night. Edmonton Fire Rescue Services said they received the call at 6:54 p.m. about the fire at Hangar 11, which had been designated a historic resource by city council. The interior of the structure was fully involved, so there was no interior attack as it was already unsafe for anyone to go into the building itself,” District 1 fire chief Jessica LaMer told reporters at the scene. “It’s a very huge fire load in a hangar like this. It’s obviously wood construction so with the high winds, it got the fire going really quickly.” …Hangar 11 was built by the U.S. military in 1942 and was believed to be the last building of its kind in western Canada.

In related coverage: ‘Suspicious’: Edmonton’s historic Hangar 11 goes down in flames

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BIG reveals a new mass timber building called the “Makers’ KUbe”

By Serra Utkum Ikiz
Parametric Architecture
April 23, 2024
Category: Wood, Paper & Green Building
Region: United States, US East

BIG, BNIM, and University of Kansas (KU) School of Architecture & Design have revealed a new timber building called the “Makers’ KUbe.” The KUbe will be a studio and teaching space showcasing sustainable practices through its mass timber diagrid design. The Makers’ KUbe is approximately 4,645 square meters of timber cube structure with a distinct timber diagrid frame that reduces material and curtails carbon-intensive concrete. The building’s structure uses tight-fit dowels and notched glulam to create an all-wood structure without steel plates or fasteners. The KUbe building has a timber and glass facade that exposes its MEP systems, showcasing its minimal and efficient design. …The building features biodegradable hempwool insulation for improved thermal performance. …The Makers’ KUbe is a six-story building that fosters collaboration between students. …The floorplates are cut to allow for a continuous sequence of single and double height spaces. Also, all interior materials are recyclable.

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Architecture School Expansion Uses Timber as Teaching Tool

Think Wood
April 24, 2024
Category: Wood, Paper & Green Building
Region: United States, US East

A mass timber addition at the new University of Nebraska-Lincoln College of Architecture will serve as a living laboratory. Currently under construction, the new University of Nebraska-Lincoln College of Architecture Expansion is a collaboration between Boston-based NADAAA and locally-based HDR. The building will be the first mass timber architecture school in the United States and promises to be a unique new teaching tool. …With a focus on sustainability and carbon reduction, the addition was initially designed to be 100% mass timber, but the team developed a more cost-efficient design by converting the interstitial support spaces between the existing building and the new studios to conventional steel framing. …The precision of prefabricated mass timber construction leads to minimal waste and safe, efficient work on site. …“It’s going to be great to have this living laboratory for students for generations to come,” University of Nebraska–Lincoln College of Architecture Dean Kevin Van Den Wymelenberg said.

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Forestry

Increased wildfire threats raise public awareness of forestry industry

By Warren Frey
The Journal of Commerce
April 24, 2024
Category: Forestry
Region: Canada, Canada West

David Coletto & David Elstone

A public opinion expert sees both opportunity and new challenges as British Columbians become more aware of forest management and wildfires. Abacus Data CEO David Coletto… said while public perception of the forestry industry previously hinged on its relevance and proximity to a given community, after a record season of wildfires and previous natural disasters, all of the province understands the sector’s significance. …“What we learned from research was that the crisis around the wildfires has created a moment where, regardless of your political stripe, where you live in B.C., you know this is a problem. You think it’s going to get worse and you know that forestry is actually part of the solution,” Coletto said. He added the awareness of the industry is an opportunity for forestry to bring new audiences into a conversation. …“Some of that work, the active forest management, can be part of the solution,” Coletto said.

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Province unveils aircraft for fighting forest fires

Clark’s Crossing Gazette
April 23, 2024
Category: Forestry
Region: Canada, Canada West

Premier Scott Moe and Public Safety Minister Paul Merriman unveiled details on four re-purposed land-based airtanker aircraft, consisting of two Dash 8-Q400AT models and two Dash 8-Q400MRE models, being purchased for an approximate cost of $187.06 million. The planes will replace the current fleet, which consists of four Convair 580 airplanes. Those planes will approach the end of their useful lifespan in 2027. “Saskatchewan relies on land-based airtankers as part of its approach to managing wildfires,” Minister Merriman said. “These aircraft are used in instances where waterbombers may not be able to access lakes to fill up their tanks.” The Dash 8-Q400AT planes are dedicated air tankers, while the Dash 8-Q400MRE models can be fitted as an airtanker and reconfigured to provide multiple roles for air operations (e.g., air evacuations, patient transport, cargo hauling, etc.). Both models have increased capacity and efficiency, and produce 30 per cent less emissions than a similar sized airtanker.

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B.C. set to shovel more than $55M out to plant 50 million trees in 2024

By Wolf Depner
Vernon Morning Star
April 23, 2024
Category: Forestry
Region: Canada, Canada West

Provincial figures peg the total cost of planting 50 million trees this year at $75 million with the province’s share being $55.5 million. The rest of the money is coming from an agreement with Natural Resources Canada. B.C.’s forests ministry released that figure last week as part of marking the planting of the 10-billionth tree since the start of the reforestation program in 1930. The ministry said two billion of those were planted in the past seven years. Last year, 305 million seedlings were planted in B.C. forests. April marks the start of the tree-planting season, usually running through August. This year’s season is starting against the backdrop of what may turn out to be a worse fire season than last year’s, which caused significant damage to provincial forests. Provincial figures estimate fires burnt 2.84 million hectares, more than double the area of forest and land fire had burnt during any previous year on record.

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Mission Municipal Forest Achieves a Sustainable Forestry Initiative Certification

City of Mission, BC
April 23, 2024
Category: Forestry
Region: Canada, Canada West

MISSION, BC—Mission Municipal Forest has recently achieved third-party forest certification under the Sustainable Forestry Initiative (SFI), SFI Indigenous Peoples and Families Module. ‘We are extremely pleased to be certified under the SFI system – this gives both our citizens and timber buyers confidence that we are managing the Mission Municipal Forest in a sustainable fashion. The City of Mission is committed to continually improving how we manage forests around the community, and we are working on implementing a number of new, progressive initiatives over the next few years with this in mind,” said Chris Gruenwald, Director of Forestry. …The SFI Indigenous Peoples and Families Module was created for small-scale forest licences, managed by Indigenous Peoples, Communities, and Families. Management under this standard is based on 13 principles.

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Large study shows caribou herds in B.C., Alberta growing from wolf culls

By Bob Weber
Canadian Press in the Vancouver Sun
April 23, 2024
Category: Forestry
Region: Canada, Canada West

Fresh research suggests western Canada’s once-dwindling caribou numbers are finally growing — the biggest reason for the rebound is the slaughter of hundreds of wolves, a policy that will likely have to go on for decades. “If we don’t shoot wolves, given the state of the habitat that industry and government have allowed, we will lose caribou,” said Clayton Lamb, one of 34 co-authors of a newly published study. Caribou require undisturbed stretches of hard-to-reach old-growth boreal forest. Those same forests tend to be logged or drilled, creating roads and cutlines that invite in deer and moose — along with the wolves. Between 1991 and 2023, caribou populations dropped by half. More than a third of the herds disappeared. …The paper suggests caribou numbers have risen by 52 per cent since about 2020 compared with what they would have occurred if nothing had been done. There are now 4,500 in the two provinces, about 1,500 more than there would have been.

Additional coverage in the Guardian, by Leyland Cecco: ‘If we don’t shoot wolves, we will lose caribou’: the dilemma of saving endangered deer

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Conditions ripe for Ontario’s wildfire season to heat up this summer

By Elaine Della-Mattia
The Sault Star
April 23, 2024
Category: Forestry
Region: Canada, Canada East

The risk for forest fires in the northeast region of Ontario remains low. The Ministry of Natural Resources Forest Fire management centre reports the fire hazard is low in areas located south of Timmins and Wawa. To date, since the forest fire season opened on April 1, there has been one fire in the Northeast region. Sault Ste. Marie 2 was reported on April 16 and called out the following day. The 0.6 hectare fire was located off Mission Road in Goulais Bay, about 26 km northwest of Sault Ste. Marie. A small forest fire in Hearst – 0.4 hectares — marked the start of the season on April 11. There are no active fires in Northwestern Ontario. While some experts have said that it is expected to be a severe wildfire season, others say the season is hard to predict.  

 

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Eastern Ontario Model Forest to Offer SFI Forest Certification

Sustainable Forestry Initiative
April 22, 2024
Category: Forestry
Region: Canada, Canada East

KEMPTVILLE, Ontario – The Eastern Ontario Model Forest (EOMF) announced that it is expanding sustainable forestry on private lands by encouraging its members to certify to the SFI Indigenous Peoples and Families Module. The EOMF Certification Program, administered by the Ontario Woodlot Association (OWA), celebrated 20 years of certification in 2023 and is now offering the SFI module to its members. SFI Certification will complement the EOMF’s existing Forest Stewardship Council (FSC®) Certificate (FSC C018800), which it is committed to maintaining. …Glen Prevost, Program Manager, EOMF, “Retaining both SFI and FSC certifications will help us grow the EOMF certification program beyond our current 74,000 hectares of certified forest.” …Executive Director of the EOMF and OWA, John Pineau, said, “The SFI community is strong and welcoming and will support our certified forests.”

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Southern Oregon activists claim victory after Bureau of Land Management changes plans in logging area

By Justin Higginbottom
Oregon Public Broadcasting
April 24, 2024
Category: Forestry
Region: United States, US West

A logging company has canceled a proposed road within a Bureau of Land Management project in Josephine County. Activists had claimed that construction of the route threatened old-growth trees. Protesters (including a tree-sitter on a platform) had been staying at the location of a proposed road within the BLM’s Salmon Run timber sale, which they claim threatened old-growth trees, for the last three weeks. The timber sale area is part of the BLM’s Poor Windy Forest Management Project which includes around 11,000 acres slated for commercial timber harvest as well as forest thinning to prevent large wildfires. On Monday the BLM and Boise Cascade Wood Products changed their plan for the Salmon Run area to remove the proposed 440-foot access road at the center of protesters’ concerns. The update also specified that construction of another road will not disturb large-diameter trees.

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Conservation groups, US Forest Service reach settlement over Middleman Project

By Phil Drake
Helena Independent Record
April 23, 2024
Category: Forestry
Region: United States, US West

HELENA, Montana — Two conservation groups and the U.S. Forest Service and U.S. Fish and Wildlife Service have reached a settlement on a lawsuit over a a 20-year logging and burning project in the Helena-Lewis and Clark National Forest, the plaintiffs said. Native Ecosystems Council and Alliance for the Wild Rockies said the Middleman Project that they stopped over 110 miles of road construction and reconstruction in the forest and halted over 5,000 acres of commercial logging in lynx and grizzly habitat. …The project, approved in 2021, was meant to reduce wildfire fuels and improve forest health and rangeland habitat conditions, forest officials said. It was also designed to maintain and improve water quality and aquatic habitat through a variety of methods including logging. The conservation groups sued in September, saying the project violated the National Environmental Policy Act, the National Forest Management Act, Endangered Species Act and the Administrative Procedure Act.

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Romanian furniture industry accuses Greenpeace and Agent Green of attacking the entire wood processing industry

By Iulian Ernst
Romania-Insider
April 23, 2024
Category: Forestry
Region: International

The Association of Romania’s Wood Industry (AIL) accuses Greenpeace and Agent Green of attacking the entire wood processing industry with no grounds, furthermore misleadingly using specific terms to magnify the impact of its rhetoric in the international media. The two NGOs cultivate confusion between the term “old forests” (a legally undefined term) and the term virgin and quasi-virgin forests, the association says. “For Agent Greenpeace/Agent Green, forest management, according to the highest standards of professionalism, Romanian legislation, and international FSC and PEFC standards, means ‘forest destruction’. […] According to official data, 94% of Romania’s forests [although not necessarily old-growth forests or virgin forests] have primary structures identical to the old-growth forests. It is an indisputable merit of forestry in Romania,” AIL argues. …Environmental organizations Agent Green and Bruno Manser Fonds (BMF) recently urged IKEA “to better oversee their forestry operations in Romania.” …and refrain from sourcing wood from national parks and primary and ancient forests. 

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Ikea and the World’s Lumber: A Complicated Growth

Media Decision
April 23, 2024
Category: Forestry
Region: International

A reported 85% of Ikea’s virgin wood still comes from European producers, including Poland, Lithuania, and Sweden. The company website cites China as responsible for nine percent of its lumber — another notable provider is Vietnam, making up three percent. Until Russia’s military invasion of Ukraine in 2022, Ikea sourced 11% of its timber in Russia and Belarus but has since ended all business with either country, scaling back operations. Ikea’s report for the Fiscal Year 2023 claims the company used 97.8% Forest Stewardship Council (FSC) certified or recycled wood materials. However, concerns about Ikea’s conduct regarding Brazilian lumber arrived this year from NGO Disclose. …The furniture giant has since partnered with the World Wildlife Fund (WWF) for environment restoration operations in the Atlantic Forest and Cerrado biomes in Brazil and the Tapajós River Basin in Colombia. …Notwithstanding these incremental changes, there are still threats to old forest areas across the world, especially in China.

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Carbon, Climate & Bioenergy

Winners of 2024 Canadian Biomass Awards announced

Canadian Biomass Magazine
April 19, 2024
Category: Carbon, Climate & Bioenergy
Region: Canada

Biomass professionals from across Canada gathered for a virtual celebration this week as the winners of the inaugural Canadian Biomass Awards were announced. Awards were handed out in five special categories, recognizing the work of both individuals and organizations across the country. 

  • Lifetime Achievement Award: Rob McCurdy, Burkhard Fink and John Swaan
  • Community Project of the Year: Village of Fort Simpson
  • Thought Leader of the Year: Liezl van Wyk, Drax Group Canada
  • Champion of the Year: Gordon Murray, Wood Pellet Assn of Canada
  • Company of the Year: Ecostrat

Additional coverage by Central Chilcotin Rehabilitation Ltd: Williams Lake Local Recognized at 2024 Canadian Biomass Awards

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Export of wood pellets from B.C. forests challenged in report

By Stefan Labbé
Business in Vancouver
April 24, 2024
Category: Carbon, Climate & Bioenergy
Region: Canada, Canada West

Stefan Labbé

The amount of wood pellets chipped out of British Columbia’s forests and shipped overseas has doubled in the past 10 years, raising concerns the timber industry continues to neglect manufacturing in favour of direct export, a new report released by the Canadian Centre for Policy Alternatives, authored by forestry expert Ben Parfitt. It analyzes the rise of Japan as B.C.’s largest destination for wood pellets… Parfitt says policymakers should ban pellets made from logged primary forests. He also says the province should enact a “solid wood first” policy where companies are penalized if they convert logs into wood pellets when the wood could otherwise be made into value-added products like trusses and joists. He recommends applying a carbon tax on emissions connected to logs or wood waste now burned as “slash.” And to improve transparency, he proposes a legal requirement that all timber-processing facilities submit to annual reports detailing what wood they use.

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How a Japanese Earthquake Shook BC’s Forest Future

By Ben Parfitt, Canadian Centre for Policy Alternatives
The Tyee
April 24, 2024
Category: Carbon, Climate & Bioenergy
Region: Canada, Canada West

Ben Parfitt

…Japan’s rapid development of its bioenergy industry (after the 2011 earthquake) comes at considerable cost to those countries that are supplying it with the biomass to run the new network of plants, be it Borneo … or the primary and old-growth forests of central British Columbia… The company responsible for producing and selling the lion’s share of Canadian-made wood pellets to Japan is Drax… Drax owns outright or is a partner in numerous mills in B.C. and Alberta… Given rising concerns over the fate of primary forests both at home and abroad, it is long past due for the B.C. government to make fundamental reforms to forest policy. …In the absence of such fundamental reforms, B.C. is likely to slip further into a deepening timber supply crisis that the government and forest industry both know is well underway. 

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Forest Fires

Ten forest fires in Northeastern Ontario since start of the season – but they’re all out

By Bob McIntyre
My North Bay Now
April 23, 2024
Category: Forest Fires
Region: Canada, Canada East

Wildland fire season is already in full swing in British Columbia and Alberta, but so far, so good in Northeastern Ontario. Natural Resources and Forestry Ministry fire information officer Evan Lizotte says there have been ten fires this season, but they’re all out. “The hazard is currently low in the Northeast Region,” he adds, “with a small patch of moderate hazard in the Sudbury area.” Precipitation during the week is expected to keep the fire hazard low to moderate. “There will be some sunny but cool days later this week, which will be flowed by rain over the weekend,” Lizotte says, “so the hazard will most likely not bounce back this week.” He reminds us that outdoor burning is only allowed between two hours before sunset and two hours after sunrise, and never in windy conditions.

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