A new report has outlined how an emissions trading scheme can maximise the benefits of using wood products as carbon friendly materials and help address climate change.

The report prepared for Forest and Wood Products Australia (FWPA) by Monash University Researcher Alison George, has identified the areas an emissions trading scheme must address in order to maximise wood’s potential as a carbon positive material.

NAFI’s acting CEO, Allan Hansard, said it is scientifically proven that sustainable wood products are a key option for addressing climate change.

“As trees grow they absorb carbon dioxide and this greenhouse gas is then stored in the wood the tree provides. Australia’s sustainably managed forest industry is highly regulated which means every tree harvested must be regrown and new trees can continue to absorb even more carbon dioxide from the atmosphere,” he said.

“The new report has identified how Australia’s emissions trading scheme should be set up so that the carbon saving potential of wood is maximised.

“This includes counting the lifespan of the carbon stored by wood products and then counting the renewable energy which can be derived from these wood products at the end of the wood’s lifecycle.

“However, if industries such as steel, concrete and aluminium are subsidised or compensated for their emissions under a trading scheme, wood products may not be as cost competitive and we may see more emission intensive products used in place of wood.

“There are also issues with certain rules stemming from the Kyoto rules which do not recognise the carbon stored by wood products which must also be addressed.

“NAFI is working closely with government to develop a comprehensive approach to forestry and emissions trading. This includes the role of Australia’s native forests, plantations, carbon in wood products and wood-waste for bioenergy,” Hansard said.

The Federal Minister of Agriculture Horst Seehofer has accepted to be the patron of the15th KWF-Tagung and voiced his recognition of KWF’s achievements in Germany.

“With its tradition and wide acceptance, the Kuratorium is an important institution for the promotion of collaboration between the Federation and the states for sustainable forestry practices,” Seehofer said. Particular focus is placed on the Kuratorium für Waldarbeit und Forsttechnik (KWF) in times of increasing demand for all forest products, especially in the sector of raw materials supply. The KWF tackles challenges posed by questions relating to the more intensive utilisation of forests, the offer of additional wood product assortments, sustainable wood harvesting under the most various restrictions — water, soil, landscape, nature, and species-protection or also relating to operations in certified forests. It not only addresses the development of new technologies and procedures, but also the coordination of the different interest groups in particular. The KWF offers different platforms for this purpose – not least within the framework of this year’s 15th KWF-Tagung in Schmallenberg. Dr Ute Seeling, Managerial Director of the KWF, is glad to say that „With the acceptance of the patronage, Federal Minister Seehofer reinforces his commitment to responsible practices in Germany’s forests”, as Horst Seehofer emphasised in his greeting: “My priority is to utilise, protect and promote the multifunctionality of our forests. “

Forestry Tasmania said its wood supply contract for Gunns’ proposed pulp mill is the most significant deal it has ever struck, according to an online ABC report. Forestry Tasmania agreed to supply Gunns with 1.5 million m³ of plantation and native forest timber a year for 20 years for about  $350 million. Hans Drielsma from Forestry Tasmania told the ABC the contract stipulates if the market base price for pulp wood falls by 1%, the price his company receives from Gunns will drop by only three-quarters of a per cent. Dr Drielsma said if the price increases by 1%, Forestry Tasmania’s return will go up by one-and-three-quarters of a per cent. “When things are good, we get a really good return, and that means that you know the company can afford it because, when things are good they should be making a reasonable return, and then we get a really sort of extra return,” he said. “When things are not so good, our losses are somewhat attenuated so we feel that that provides, you know that’s a pretty good buffer.”

A landmark transaction of certified forest carbon dioxide (CO2) emissions reductions has been completed between the Pacific Forest Trust (PFT) and Natsource Asset Management LLC (Natsource).

Natsource, a leading emissions and renewable energy asset manager, bought 60,000 t of carbon emissions reductions on behalf of its clients from a private forest owner represented by PFT. The emissions reductions were created through sustainable forestry on a permanently conserved property in California. This deal illustrates the significant role that management of existing forests can play in addressing climate change. The transaction is the first commercial delivery of certified emissions reductions under the Forest Protocols adopted last fall by the California Air Resources Board (CARB). The Protocols are the first rigorous governmental accounting standards in the US for climate projects embracing forest management and avoided deforestation, while ensuring emissions reductions are real, permanent, additional and verifiable. “Today marks a significant milestone for the recognition of the real benefits of conserving and managing US forests to enhance their climate contributions,” PFT president Laurie Wayburn said. “Investing in the power of forests to protect our climate is a practical action that can and should be taken now to reduce CO2 in our atmosphere. We are hoping that deals like this will provide policymakers around the world with the confidence they need to ensure that forestry becomes part of the solution to address climate change.” CARB’s leadership in adopting the Forest Protocols is helping to stimulate a new asset class in global GHG emissions markets, validating forests as a cost-effective means to achieve real GHG reductions. The Forest Protocols, which are administered by the non-profit California Climate Action Registry (CCAR), can be used as a model to ensure that forests be used to achieve enduring benefits and become a solution in the fight against climate change. “Until now, forest sequestration has been an untapped asset in the effort to address climate change,” said Jack Cogen, Chief Executive Officer of Natsource. “Forestry can and should be an important part of the portfolio of climate change solutions moving forward. This deal illustrates that when rigorous, clear rules are adopted, these investments can reduce costs for our compliance customers and provide what we believe are attractive investment opportunities. “Natsource participated in this transaction because it complied with California’s rigorous standards, and we believe that this will ensure that the sequestration will provide enduring environmental and economic benefits.” The CO2 emissions reductions purchased by Natsource clients were created by PFT’s Van Eck Forest Project, in Humboldt County, CA, that uses the CO2 storage capabilities of a working redwood forest. Owned by the Fred van Eck Forest Foundation, the 2,200acre forest is permanently protected by a conservation easement. It is managed by the Pacific Forest Trust to increase carbon stores, restore biodiversity and produce sustainable timber supplies. The revenue from the purchase of some of the emissions reductions already generated by this project will help finance the ongoing forest stewardship activities that will enable the forest to remove an estimated 500,000 t more of CO2 from the atmosphere than would otherwise occur over the next 100 years – all while still supplying substantially the same volume of wood products from the property that would have been harvested under conventional management.

Carbon sequestration is enhanced on the Van Eck Forest by preventing business-as-usual logging of all the substantial volume of standing timber on the property and by ensuring that selective harvest practices remove less timber volume than is grown, allowing carbon stores to permanently increase. The project’s emissions reductions are calculated using the scientific accounting standards of the Forest Protocols, based on a detailed inventory of the forest and the effects of management parameters secured by the permanent conservation easement. These calculations have been registered with CCAR after independent third party certification by SGS, the world’s leading inspection, verification, testing and certification company, working with Scientific Certification Systems, the leading US forestry certification company. Project data is available to the public from CCAR. “Dangerous levels of CO2 in our atmosphere are the result of fossil fuel combustion and forest loss,” continued Wayburn. “To successfully stabilise our climate, we must address both sources. Preventing forest loss and increasing net sequestration through projects that meet rigorous standards, such as those in California, can secure lasting emissions reductions.”   As the first asset manager to purchase Van Eck Forest emissions reductions, Natsource joins an impressive group of climate leaders that have invested in the power of working forests through the Van Eck Forest Project, including U. S. House Speaker Nancy Pelosi, California Governor Arnold Schwarzenegger, California Assembly Speaker Fabian Nuñez (D) and California Environmental Protection Agency Secretary Linda Adams. “I applaud Natsource for investing in the long-term climate benefits of California’s forests. Natsource’s leadership shows that global capital will flow to projects that meet rigorous international standards reducing emissions of CO2,” commented Mary Nichols, Chairman of the California Air Resources Board, the lead agency for implementing the State’s Global Warming Solutions Act.

New Australian Government figures released today show that the Australian forest industry has kept the nation on track to meet its targeted reductions in greenhouse gas emissions under the Kyoto Protocol.

The report Tracking to the Kyoto Target was released today by Minister for Climate Change and Water, Senator Penny Wong.

NAFI’s acting CEO Allan Hansard welcomed the report and said it was yet another indication that the forest industry was the most climate friendly industry in Australia.

“The report shown that forestry offset 21 Mt of greenhouse gas emissions, and is projected to continue to offset around 20 Mt until the year 2020,” Hansard said.

“To put this number into perspective, the average Australian car emits 5 t of carbon, therefore the forest industry in 2007 offset the equivalent of the emissions from over 4 million cars.

“If the industry meets its target of 3 million hectares of plantations by the year 2020 – under the Plantations for Australia: 2020 Vision – it is likely that the 20 Mt figure will be much higher.

“The figures in this report do not include the 5 million tonnes of carbon stored in wood products every year. The Australian Government Department of Climate Change figures again put to rest the misinformation peddled by some radical green groups and clearly shows the Australian forest industry is currently the only truly carbon positive industry.

“NAFI is working with other forest industry associations to ensure a unified position, that recognises the full set of benefits the forest industry can offer, is presented to Government,” Hansard said.

The report can be downloaded at: http://www.greenhouse.gov.au/projections

Arto Tiitinen, President and CEO of Ponsse Oyj, will start as CEO of Keskisuomalainen Oyj on June 1, 2008. The Ponsse board will appoint a new CEO in the course of spring.

“Having worked with agricultural and forestry machinery for 22 years, I find it’s time to look for new challenges. Regarding Ponsse, the targets and goals set for the four-year period have been achieved – the time has come to transfer my duties to my successor during the coming spring. Ponsse has excellent staff and excellent customers,” CEO Arto Tiitinen says. “We shared the success story of Ponsse with Arto, and succeeded in developing our operations into a top class international forest machine company. Our personnel have developed the unique Ponsse-style efficiency in their work and competence development. The company is well placed for strong financial performance, and this is a good basis for the future,” says Einari Vidgrén, Ponsse Chairman.

The “Kuratorium für Waldarbeit und Forsttechnik” (KWF) is once again holding its innovations contest within the framework of the 15th KWF-Tagung 2008. At the same time, the BMELV is awarding money prizes totalling 10,000 Euros for “Excellent technology for small private forests”. All exhibitors are eligible for participation.

During KWF-Tagung 2008, innovative forest technology developments of the participating companies and institutes will be evaluated by a neutral expert committee. Especially promising products will be awarded with the coveted KWF-Innovations Medal. The secret of which innovation will be awarded with a prize will only be disclosed on June 5th within the framework of a ceremonial act in the KWF congress tent on the grounds of the fair in Schmallenberg, with an elaborate explanatory statement by the expert committee. All the innovative products that were suggested by the manufacturers for an award will be made available to the trade press in the form of a brief innovations list about five weeks before the start of the congress, and will also be published in the internet. For visitors to the KWF Tagung, the innovations list will be available at every information point. Furthermore, for the first time the BMELV (Federal Ministry of Food, Agriculture and Consumer Protection) is awarding a money prize for excellent forest technology for use in small private forests. The use of this technology generally leads to the mobilisation of additional amounts of harvested wood and contributes to meeting the increased demand for wood on the long-term. In order to participate, interested companies have to register their innovations before April 24th 2008. The documentation for this purpose is sent to all exhibitors, but can also be downloaded at http://www.kwf-tagung.de/ or can be requested at the KWF (poguntke@kwf-online.de, Tel.: 06078/78530, Fax.: 06078/78539).

CSIRO and Monash University in Australia have developed a chemical process that turns green waste into a stable bio-crude oil.

The bio-crude oil can be used to produce high value chemicals and biofuels, including both petrol and diesel replacement fuels. “By making changes to the chemical process, we’ve been able to create a concentrated bio-crude which is much more stable than that achieved elsewhere in the world,” says Dr Steven Loffler of CSIRO Forest Biosciences. “This makes it practical and economical to produce bio-crude in local areas for transport to a central refinery, overcoming the high costs and greenhouse gas emissions otherwise involved in transporting bulky green wastes over long distances.” The process uses low value waste such as forest thinnings, crop residues, waste paper and garden waste, significant amounts of which are currently dumped in landfill or burned. “By using waste, our Furafuel technology overcomes the food versus fuel debate which surrounds biofuels generated from grains, corn and sugar,” says Dr Loffler. “The project forms part of CSIRO’s commitment to delivering cleaner energy and reducing greenhouse gas emissions by improving technologies for converting waste biomass to transport fuels.” The plant wastes being targeted for conversion into biofuels contain chemicals known as lignocellulose, which is increasingly favoured around the world as a raw material for the next generation of bio-ethanol. Lignocellulose is both renewable and potentially greenhouse gas neutral. It is predominantly found in trees and is made up of cellulose; lignin, a natural plastic; and hemicellulose. CSIRO and Monash University will apply to patent the chemical processes underpinning the conversion of green wastes to bio-crude oil once final laboratory trials are completed. The research to date is supported by funding from CSIRO’s Energy Transformed Flagship program, Monash University, Circa Group and Forest Wood Products Australia.

The National Association of Forest Industries (NAFI) in Australia and Timber Communities Australia (TCA) have welcomed the Garnaut Interim Report which has identified the positive role forestry can play in addressing climate change.

NAFI’s acting CEO, Allan Hansard, said he was particularly pleased that Professor Garnaut has recommended forestry be part of an emissions trading scheme as early as possible. “The forest industry has a lot to offer in the way of carbon offsets – in the order of 80 Mt/y by the year 2020. The industry can not only drought proof rural areas but can help carbon proof them. NAFI welcomes the recommendation that forestry be included early-on in an emissions trading scheme,” he said. Hansard welcomed the reports’ statement that inclusion of agriculture and forestry could require consideration of measures available to other trade-exposed, emissions-intensive industries. “Measures intended to protect international competitiveness for emissions-intensive industries – such as steel, concrete and aluminium – need to be carefully considered as they may impact domestically on carbon friendly industries like forestry in Australia,” Hansard said. TCA Chief Executive, Jim Adams, said he also welcomed the Garnaut Interim Report as it recognised the value the forest industry, and the regional communities it supports in addressing climate change. “I welcome the report and the positive message it sends to the thousands of people who make up the forest industry, that their industry is helping reduce greenhouse gases,” he said. Adams echoed the point on the need to take care when developing measures to maintain international competitiveness. “Care should be taken when developing any policies for trade exposed carbon intensive industries – such as steel concrete and aluminium – that this is not done to the detriment of our timber based rural communities,” Adams said.

The FOREST STEWARDSHIP COUNCIL (FSC) says good progress was made last year on FSC brand penetration and market growth. The FSC has launched a market information pack that provides many indicative and revealing figures and statistics on FSC growth, market share, label recognition and other strong indicators of the growth in supply and demand for FSC products. A number of surveys conducted in 2007 show that increasing numbers of the general public are becoming even more aware of FSC. Results from the Netherlands, Denmark, Switzerland and the UK suggest that the FSC logo is becoming a globally recognised indicator of responsible forest management and responsible purchasing in consumer markets.

FSC forest management certification is growing at a steady rate in Russia and has reached 18,654,774 ha. Russia maintains the second largest area of FSC certified forest in the world after Canada which holds 20,18,933 ha. Tembec is the largest single holder of FSC certified forest area in the world. With operations in Canada and France, the company sells pulp, newsprint, engineered wood, paperboard, softwood lumber and hardwood flooring to international markets. The company holds a total of 9.7 million ha of FSC certified lands. All of the company’s pulp, paper and building products facilities are FSC chain of custody certified. Today 60% of Swiss forest area is FSC certified, a remarkable achievement considering the 250,000 private small forest owners and apprehension towards FSC by forest owners in the past. Centuries of responsible forest management now has a simple, trustworthy and global label that communicates this tradition and performance. And it also pays. In the paper sector, PriceWaterhouseCooper’s 2007 report on the Global Forest, Paper and Packaging Industry confirms FSC certification as the preferred choice of the industry’s top 100 companies. The paper sector uses around 40% of all commercially harvested wood. The world’s first chain of custody (CoC) paper market study confirms FSC as the leading certification scheme by quality and quantity. Global FSC paper consumption will grow to nearly 6.5 Mt in 2012, according to a new market study by Pira International. This study is the first to quantify and forecast the market for CoC paper markets, broken down by certification type, end-use sector, grade, region and key country. Launched in December 2007, the US Green Building Council (USGBC) initiative, LEED for Homes, requires that only FSC certified or reclaimed material is permitted when using topical wood in residential buildings. LEED for Homes is a rating system that promotes the design and construction of high-performance green residential homes. Tetra Pak has launched the first FSC labelled food and liquid carton. The carton is called Tetra Recart. The FSC logo printed on it guarantees consumers that the packaging material comes from responsibly managed forests and controlled sources. Sainsbury’s, a UK supermarket chain, is the first to use these cartons for its own-label premium chopped tomatoes. JK Rowling’s Harry Potter series has galvanised the world’s book industry into sourcing environmental papers including from socially and environmentally responsibly managed forests certified to FSC’s standards. Around the world millions of copies of the final book in the series are carrying the FSC logo. US based Northstar, a worldwide provider of information and news for the meetings and hospitality industries, now uses and promotes FSC for its magazines. Northstar Travel Media LLC is printing 62,000 copies every month of its Meetings and Conventions international periodical with the FSC logo. To accomplish this, Northstar worked with its printer, Brown Printing to source FSC paper. Both companies are now FSC certified. Marks and Spencer’s (M&S), a leading retailer in the UK, has committed to sourcing all of its wood from FSC certified or recycled sources by 2012. This five year plan is arguably the boldest commitment to date made by any retailer in the world. http://www.fsc.org/