Forest2Market has available a new resource study, The US South Forest Biomass: An Emerging Industry in Wood Fiber Markets. This delivers a comprehensive, quantitative assessment and forecast of the economic affects of rising energy costs and changing public policy on the forest products supply chain. Until now, while much has been said about the potential of the US South forests, no quantitative study has been made of the economic impact that the shift of wood raw materials to the new bioenergy industries will have on existing timber consuming industries. Forest2Market has collected actual timber sales and mill purchase data across the US South for a decade.

The study provides a neutral third-party analysis of forest biomass resources, so members of the forest products and bioenergy industries can make the decisions necessary to:

•Realise strategic capital investment opportunities in new or expanded facilities to meet the future demand for wood-based energy and fuel

•Anticipate forest biomass prices in the US South

•Secure reliable forest biomass supplies in the US South

•Minimise forest biomass collection and transportation costs

•Invest in proven technologies based on a comprehensive analysis of existing forest biomass energy production

•Assess the role of Federal and State government policy in the cellulosic ethanol industry.

To view the Table of Contents and listing of Figures and Charts and to purchase, go to www.forest2market.com/f2m-biomass

WWF has announced that more than 1 Mha of Congo Basin forests have achieved certification under the world’s leading sustainable forestry scheme. The world’s second largest block of rainforests, the Congo Basin is a haven for indigenous peoples and endangered species like elephants and gorillas. It is also important in sequestering carbon and safeguarding water supply and quality. “With rampant illegal logging, vague logging concession boundaries and massive blocks of pristine forest destined for the chainsaw, this is a laudable step towards avoiding an ecological disaster,” says James P. Leape, Director General of WWF.

Forest Stewardship Council (FSC) certification has now been achieved for forestry operations on 1.2 Mha, a significant step towards WWF’s Green Heart of Africa network initiative goal of having certification achieved for 50% of production forest in the Congo Basin. The certification involves logging companies SEFAC, Transformation Reef Cameroon (TRC) and WIJMA in Cameroon and CIB in the Republic of Congo. “While the certified forests will have to be maintained according to acceptable international standards, there is urgent need for other timber business operations in the region to adopt responsible forest management practices in order to ensure the conservation of this unique forest ecosystem for the benefit of people in the region and the world,” added Leape. To promote responsible forest management and trade in the Congo Basin, WWF-CARPO has set up the Central Africa Forest and Trade Network (CAFTN), a part of WWF’s Global Forest & Trade Network (GFTN) – which works to provide support, advice and guidance to logging companies to help them better understand how good logging practices can contribute to conservation of biodiversity, improve the livelihood of local communities and lead to a market advantage. “Illegal forest exploitation and forest crimes are largely due to poor governance and insufficient law enforcement,” said Laurent Somé, WWF Central Africa Regional Programme Office (CARPO)’s Representative.. “WWF also recognizes that responsible forest management plays an important role in the economic growth of tropical countries and reducing poverty in forest communities. “WWF is convinced that the adoption of responsible forestry schemes by logging companies will contribute greatly to the conservation of the Congo Basin forests and towards improving the national economy and also improve the livelihoods of local communities,” Somé said. “For the success of responsible forestry in the Congo basin, there is a high need for government to set up enabling conditions that include enacting adequate legislation and enforcement, and promoting good governance while providing support to responsible forestry initiatives.” By 2012, WWF expects that 7 Mha of forest in the Congo Basin will be under credible certification while another 5 Mha will be progressing towards credible certification.

APF 2008, the UK’s largest arboricultural, woodland and forestry exhibition will be the biggest yet according to Exhibition Secretary Ian Millward.

“We have already had a record number of Exhibitors book with us, including many who are exhibiting for the first time. We have sold 4,250 m of demonstration frontage, that is over 2.5 miles and the original static display area has now sold out so we have had to extend it so we can accommodate any further bookings.” “Many exhibitors tell us they sell more equipment at our show than all the other shows they attend combined. This reputation has attracted the new exhibitors.” 250 exhibitors and 20 000 visitors are expected to attend.” APF 2008 also features more competitions and displays than ever before including The European Lumberjack Sports Championships, sponsored by Stihl & UPM Tilhill, the Husqvarna Poleclimbing Championships, the Echo Chainsaw Carving Championships, the UK forwarder driving championships, sponsored by Komatsu, the UK Fencing Championships, the world log to leg pole turning championships, an extreme mountain bike circuit and an extensive woodland crafts, and vintage machinery display and demonstration. The Exhibition takes place at Cannock Chase, Staffordshire on the September 18-20, 2008.  More information and ticket details are available on the web site http://www.apfexhibition.co.uk/ or from the office tel: +44 (0) 1737 245 081 email apfexhibition@gxn.co.uk.

The latest research note from the Forestry Commission provides an update on red band needle blight (RBNB), a serious disease that is increasingly affecting conifer trees in Britain’s forests.

Written by Dr Anna Brown and Dr Joan Webber, scientists from the Tree Health Division of Forest Research, it presents the latest information to help foresters manage affected forests. It provides information on the causal agents, the pathogen lifecycle, and the disease’s symptoms, distribution and impact. It also discusses the options for control and management, and considers the likely future of the disease in Britain. Red band needle blight is caused by the fungus Dothistroma septosporum, which is a listed quarantine organism that causes economically important disease on a number of coniferous tree species, and particularly pines. The disease leads to premature needle defoliation, which results in a loss of timber yield and, in severe cases, tree mortality. The disease has a world-wide distribution, but until recently it was mostly of concern in the Southern Hemisphere. However, over the past 10 to 15 years there has been an increase in the severity and geographical range of the disease, particularly in the Northern Hemisphere. Its incidence has increased dramatically in Britain since the late 1990s, particularly on Corsican pine, and recently there have also been reports of the pathogen causing damage to lodgepole pine and Scots pine. Corsican pine has proved so susceptible to RBNB and the impact so severe that there is now a five-year moratorium on planting this species on Forestry Commission land. The reasons for the disease’s increased incidence are unclear, but could be due to increased rainfall in spring and summer coupled with a trend towards warmer springs, optimising conditions for spore dispersal and infection. Such conditions might become more prevalent in Britain over the next 20 years if current trends in climate change continue. Disease management in Britain is currently focused on silvicultural measures to reduce inoculum loads and make the microclimate less favourable, as well as the use of alternative, less-susceptible species in future rotations.

Recent allegations made by Greenpeace that Danzer Group evaded paying taxes in the Republic of Congo and the Democratic Republic of Congo are totally without foundation, the company, the world’s largest manufacturer of hardwood veneers, says. “They are an absurd, populist gimmick designed to cloud the current public discussion surrounding tax evasion in a misleading Greenpeace report.”

“For years Greenpeace has been attempting to tarnish the reputation of Danzer Group by floating rumors, making defamatory statements and spreading half-truths. But constantly repeating false, concocted allegations does not make them true. On many occasions in the past Danzer Group has issued statements regarding Greenpeace allegations. The Swiss Attorney General’s Office and the Examining Magistrate’s Office of Zug, Switzerland, dropped charges against Danzer Group filed by Greenpeace in 2004 and 2006. Internal investigations conducted by a renowned auditing firm commissioned by Danzer Group identified no wrongdoing. “On numerous occasions Danzer Group has attempted to engage Greenpeace in a constructive, public dialogue in order to discuss relevant matters in detail. Greenpeace has refused to engage in such a dialogue, presumably in an attempt to avoid having to publicly acknowledge the inaccuracy of its reporting. “Danzer Group has been operating in the Congo Basin since 1972.

Today the company operates a veneer plant and two large sawmills in this part of Africa. Approximately 20,000 people depend on the income of 2,400 local Danzer Group employees.

The company has been investing in the construction of local wood processing operations as well as in social programs for decades – all as part of the company’s corporate social responsibility activities. In particular, Danzer Group has always led the way in promoting local industrial processing.

These investments in the private sector provide the local population with jobs, which generate income, taxes and export revenues. Production had to be suspended during the civil war in the Democratic Republic of Congo, which lasted until the end of 2002 and resulted in the deaths of an estimated four million people.
“In recognition of its responsibilities to its employees and their families Danzer subsidiary SIFORCO continued to pay full wages to as many employees as possible during this period while providing basic medical care also for the others.
This helped maintain a somewhat stable living environment for the local population. Following the end of the civil war Danzer Group resumed production after the end of the civil war and became one of the few companies in the country to help create a new industrial infrastructure. “At the same time Danzer Group also supported and financed social projects such as the construction and maintenance of schools, hospitals, public buildings and roads.

Danzer Group invests approximately €3 million in social programs in the Congo Basin every year. “The allegations of tax evasion are absurd in view of the fact that the consolidated African business of Danzer Group (including all value added chains of Danzer subsidiary SIFORCO in the Democratic Republic of Congo, IFO in the Republic of Congo and Interholco in Switzerland) during the period from 1999 to 2007 generated a cumulative loss of approximately €38 million.

It is unfortunate that Greenpeace, despite the fact that it is in possession of many items of stolen data, fails to mention that Danzer operations suffered a loss of €11 million in 2003 alone. Only two of the last 10 years were profitable. All activities were entirely accounted for and have been certified by the auditing firm PricewaterhouseCoopers and the tax authorities.

Allegations that the consolidated figures were not presented to the auditors are totally unfounded.

“Greenpeace’ conclusions do not stand up to scrutiny and do not reflect reality, because they are based on forecasts from 2003. Even in Western countries many companies have difficulty in projecting reliable forecasts for one to two years. Making such projections in the Democratic Republic of Congo in 2003 following several years of civil war was considerably more difficult. “And one cannot evade paying taxes when there were no profits to tax in the first place. On several occasions Danzer Group has shown its willingness to present its business dealings in Africa to the World Bank so that the organisation could take an independent look at the company’s business operations. “Most of the taxes and contributions in the forest industry are traditionally assessed according to volume and price-related criteria.
For example, in the Congo Basin taxes are paid on concession surface area, on the volume of harvested timber and on export volume.

All of these taxes and contributions were regularly paid despite the high consolidated losses that Danzer Group suffered in its Africa business. Since 2003 Danzer Group has paid over €10 million in taxes and contributions. But the distorted information published by Greenpeace tells a different story. Danzer Group operates on the basis of a long-term outlook with regard to its employees, forestry management and its responsibilities to African countries. “The type of base transfer prices cited by Greenpeace are normal and consistent with relevant tax regulations.

In the Democratic Republic of Congo they are regulated in accordance with so-called “prix mercurial”. These base transfer prices are levied by the government itself. The same practice exists in other countries as well.

The allegation regarding misuse of the base transfer prices therefore does not hold water. The prices paid by Danzer Group are in accord with the laws of the Democratic Republic of Congo and Republic of Congo. “The practice criticised by Greenpeace is normal and necessary to meet the conditions of conducting international business. The internal company invoices cited are for definite services performed.
The local African companies depend on these services, because they cannot be performed from African sources. They deal with e.g. logistics and procurement services, which are performed by European companies and regulated by corresponding contracts. For example, companies located in Africa cannot order machinery from European manufacturers because of risks in credit worthiness. These specific development-related functions are performed by affiliated companies in Europe – as extended operative arms. The ensuing costs are paid from the aforementioned foreign accounts. In this manner companies located in Africa, which create jobs there, are in a position to procure the required equipment on the world market and thereby support the economic development of the country. These foreign accounts are regularly audited and certified in conjunction with the audit of Danzer Group annual accounts. “Everything that Danzer Group does is based on the principle of sustainability. The company manages its own forests and harvests its own trees in an environmentally friendly, socially compatible and responsible manner while observing national and international laws.

For this purpose Danzer Group has developed and implemented its own extensive regulations and monitoring procedures. These are regularly audited and certified by independent auditors (see “Corporate Social Responsibility” at www.danzergroup.com). Danzer Group is co-operating closely with the World Wide Fund for Nature (WWF) in conjunction with the ongoing FSC certification of the company’s own African forest concessions. “In Africa Danzer Group harvests one tree in an area the size of a football pitch every 30 years. This corresponds to approximately one-tenth of the harvesting that takes place on sustainably managed European forests. This is far less than the rate of growth. “Danzer Group actively promotes forest certification worldwide and supports levying sanctions against those who engage in illegal harvesting. The low production costs involved with illegally harvested wood have a negative impact on the competitive situation of companies such as ours which operate on the basis of a long-term outlook.

Constructive dialogue with environmental protection agencies has always been a part of the philosophy of Danzer Group.” Danzer Group operates six veneer factories and five sawmills in Europe, North America and Africa. These facilities primarily process regional timber to produce high-quality veneers and lumber.

The US Endowment for Forestry and Communities (the Endowment) has announced an open call for Requests for Pre-proposals (RFPs) under its initiative, “Forest Investment Zones: Co-creating Innovation and Learning at the Regional Level.” This initiative will serve as a signature programmatic focus of the Endowment’s investments. “Forest Investment Zones” is envisioned as a four-year initiative that will initially be rolled-out in three geographic areas around the U.S. Diane Snyder, Vice President-Community Development for the Endowment, said, “We believe that Forest Investment Zones stands to create inspiration, innovation and positive change that will spill-over to forested areas across the nation.” The concept highlights the Endowment’s commitment to work in concert with the environmental needs of the forest while addressing the economic needs of the communities in and around them.

The initiative will depend upon existing regional organizations to implement the work with a broad array of their community partners. The Endowment hopes to make Forest Investment Zones “learning laboratories” that will serve to share learning widely. “As a new foundation this will be one of our major funding initiatives. We anticipate that each of the initial selected partners will have the potential of as much as $2.15 million in Endowment funding over the four-year implementation horizon,” said Endowment President Carlton Owen. The RFP is open until September 19, 2008. Regional intermediaries, defined as high-capacity organizations or networks of organizations that commonly work together at the regional level to support sustainable forestry and/or community development in forest-reliant communities, who wish to submit pre-proposals for consideration should do so by visiting the Endowment’s website “Grants and Initiatives” tab at www.usendowment.org .

Successful partners will be identified before year-end. The US Endowment for Forestry & Communities, Inc. is a not-for-profit corporation established in late 2006, at the request of the governments of the USA and Canada in accordance with the terms of the Softwood Lumber Agreement (SLA) between the two countries. The Endowment is one of three entities designated to share in a one-time infusion of funds to support “meritorious initiatives” in the US. It has been endowed with $200 million. The Endowment’s mission is to work collaboratively with partners in the public and private sectors to advance systemic, transformative and sustainable change for the health and vitality of the nation’s working forests and forest-reliant communities.

In Canada, Ontario will protect at least 225,000 km2 of the Far North Boreal region under its Far North Planning initiative. Scientists, First Nation and Métis communities will collaborate to map and permanently protect an interconnected network of conservation lands across the Far North. The McGuinty government will work with all northern communities and resource industries to create a broad plan for sustainable development.

As well, local plans will be developed in agreement with First Nations. And new mining development in the Far North would require early consultation and accommodation with local Aboriginal communities. Ontario’s Northern Boreal region is one of the last truly wild spaces on the planet. It is home to over 200 sensitive species of animals – such as polar bears, wolverines, and caribou – many of which are threatened or endangered. Preserving these spaces will help ensure Ontario’s biodiversity. Permanently protecting these lands will also help a world wrestling with the effects of climate change, as they are a globally significant carbon sink. Protecting this region is a key part of the Ontario government’s plan to fight climate change. “Although the Northern Boreal region has remained virtually undisturbed since the retreat of the glaciers, change is inevitably coming to these lands. We need to prepare for development and plan for it. It’s our responsibility as global citizens to get this right, and to act now,” said Premier Dalton McGuinty.

QUICK FACTS:
•The Northern Boreal region is 43% of Ontario’s land mass
•It is home to 24,000 people living in 36 communities
•The region absorbs approximately 12.5 Mt of CO2 from our atmosphere each year.

People with an interest in the developing woodfuel industry are invited to register for an important international conference and workshop entitled ‘The Woodfuel Supply Chain – Sharing Experience’, in Warwick, England in September this year.

It is being jointly organised by the Biomass Energy Centre and IEA Bioenergy to share experience and knowledge among practitioners and stakeholders across the industry and from around the world. It will include workshop technical sessions, field trips and an “industry day” at the APF International Machinery Exhibition at Cannock Chase, Staffordshire, where the woodfuel industry is expected to have a significant presence. The venue is the University of Warwick, near Coventry, with accommodation available on site, and the dates are Monday 15 to Friday 19 September, with an icebreaker event on the evening of Sunday 14 September.

Speakers will include Sir Ben Gill, a leading spokesperson for the bioenergy sector in the UK. The first two days will comprise a field study tour to sites including Eccleshall power station and an excursion day around Ironbridge. The third and fourth days will consist of a combination of plenary sessions and parallel workshops looking at topics including biomass woodfuel supply and trade, site productivity and environment, social and community issues, regional supply chains, technology and logistics for forest biomass production, greenhouse gas balances and mitigation, sustainability criteria and certification, and economics and supply modelling.

On Friday 19 September delegates will be invited to visit the APF, where they will be able to participate in two further workshops with invited expert panels. The morning session, looking at supply chains, will be chaired by Tim Rollinson, Director-General of the Forestry Commission, and the afternoon one, focusing on fuel quality, will be chaired by Angela Duignan, head of woodfuel implementation for Forestry Commission England.

The PEFC Governance Review, published today, outlines 39 recommendations aimed at further improving the effectiveness of the world’s largest certification scheme. The review will support the restructuring of the organisations’ governance to ensure that PEFC International meets its objective as set out in the 2007 Strategic Plan. The PEFC Board of Directors has carefully considered the recommendations in its last meeting and accepts them as a valuable contribution to and follow up on the PEFC strategy launched last October. PEFC says it “is pleased to respond positively to the first recommendation, which advises PEFC to publish the governance review to validate its commitment to transparency.

Furthermore, the Board has instructed PEFC to prepare changes to its statues and other documents to enable the creation of a Stakeholder Forum. This Forum is being created to provide stakeholders with whom PEFC has until now not been able to engage with successfully with rights and responsibilities in the organisation. The General Assembly, which will take place in Canberra, Australia at the end of October 2008, will decide about the creation and exact set-up of this new body. “We have now the mandate to implement some of the operational elements recommended in the Governance Review”, said Ben Gunneberg, Secretary General of PEFC International. “And we are currently consulting with our members on these and expect to be able to consider other elements in due course.” The review was facilitated by London-based Z/Yen Group, which convened the international governance review panel to undertake the review.

The panel, chaired by Lord Jamie Lindsay of UKAS (United Kingdom Accreditation Service), included Björn Andrén of Holmen Skog AB, John Dee of Planet Ark, Hans Drielsma of Forestry Tasmania, Dr. Maharaj Muthoo of the Hari Environment & Development Society, Frederick O’Regan of the International Fund for Animal Welfare, and Dirk Teegelbekkers of PEFC Deutschland e.V. “We are very pleased with the work of the panel. I’d like to use this opportunity to again thank them and all other participants in the review process for their excellent contribution”, Mr. Gunneberg added. “We also welcome further feedback from interested partners while we are considering how best to follow up on the recommendations.” The review can be downloaded from http://www.pefc.org/internet/resources/5_1184_1877_file.2187.pdf

Communities across Scotland are getting more support to develop woodland crofts with the announcement of a new project officer to drive forward the initiative.

Sandra Holmes has been appointed as the new Woodland Crofts Projects Officer with a role of kick starting the initiative to get woodland crofts up and running. The initiative is being funded jointly by Forestry Commission Scotland and Highlands and Islands Enterprise.

Woodland crofts have the potential to support and sustain rural livelihoods, with community groups owning and managing woodland for economic, social and environmental gain. Announcing the new appointment, Environment Minister Michael Russell said: “Crofting is part and parcel of Scotland’s cultural heritage and we are committed to sustaining and safeguarding this way of life.

Woodland crofts will provide a range of opportunities for rural business and the promotion of a sustainable lifestyle. “It is important that we make it attractive for people to stay or move to remoter rural areas and the development of woodland crofts is another important step to making this happen. The appointment of Sandra will act as a catalyst to give communities advice and support to purchase land and develop it into a successful woodland croft. ” These crofts could provide scope for local business development and opportunities to live and work in remote rural areas. Sandra Holmes, Woodland Crofts Projects Officer, said: “Woodland crofts will provide new opportunities for people to access crofts. It is important that the public benefits of woodland crofts are safeguarded, and this will be achieved by creating crofts without the right to buy and with the community landlord retaining control of croft allocations. Combining community ownership and crofting tenure in this way has the potential to provide real and lasting benefits for rural communities.” Under the National Forest Land Scheme, land for woodland crofts has been added as a fourth option along with existing options of community acquisition, land for affordable housing and sale of surplus land.