Forest Products Industry

Government support for boosting wood processing as outlined in NZ’s second emissions reduction (ERP2) plan is a step in the right direction says the Wood Processors and Manufacturers Association. Source: Timberbiz “Scientific evidence is clear that wood processing can reduce gross emissions by producing high-value products to replace emission intensive ones such as steel and concrete,” said WPMA Chief Executive, Mark Ross. “Having this fact specified within ERP2 highlights that the government now acknowledges the need to implement policies and initiatives targeted at improving the investment environment for high-value wood processing. “Countries are in a race to seize the benefits, and the opportunities wood provides in the transition to a net-zero world. “Countries are using industrial policies to position their companies in rapidly forming global value chains. Initiatives outlined within ERP2 are a start, but there is a lot more that can be done to create an environment that supports our domestic wood processing market.” One initiative, for example, to achieve this boost that appears to have been overlooked in ERP2 is the MBIE procurement policy that is aimed at reducing carbon emissions in building and construction. Yet as a comparison with the wool sector, there is now a minister for wool, with wool procurement being a coalition policy. “As ‘environmental goods’ wool and wood share the same sustainable qualities. Hence, the wood processing and manufacturing industry calls for an equivalent government procurement policy for wood as with wool.” Mr Ross said. “The potential for New Zealand wood products to reduce the carbon footprint of the built environment and drive the growth of a sustainable and prosperous wood industry is immense. In the future we expect that wood solutions will become more mainstream, and their demand will increase. “The low-grade logs we currently export could be used to produce high-value wood products, such as GluLam, remanufactured timber, and laminated veneer lumber.” With an increase in wood processing the biproducts of wood, such as adhesives, paints, polymers, advanced packaging, refined carbon, textiles and plastics will also be able to be developed. This will benefit the economy but will also support future climate change goals in a sustainable manner. Other notable points for the wood products industry within the ERP2 include: progression of the investigation of providing NZ ETS credits for wood processors based on the embedded carbon captured in longer-life timber products, improving the resource consenting framework for wood processing to make it easier to establish new facilities and to re-consent existing ones, continuation of the wood processing growth fund, increasing biomass availability, and establishment of a wood bioenergy taskforce. More details can be found here https://consult.environment.govt.nz/climate/second-emissions-reduction-plan/

New Zealand’s Government has confirmed a 50% reduction to the annual charge for forest owners participating in the forestry Emissions Trading Scheme (ETS), Forestry Minister Todd McClay announced. Source: Timberbiz “This decision delivers on the Government’s promise to rebuild confidence in the forestry sector and support its role in achieving New Zealand’s exporting and emissions targets,” Mr McClay said. The decision follows consultation on amendments to the Climate Change (Forestry) Regulations 2022, which proposed to reduce the annual charge from NZ$30.25 per hectare per year to NZ$14.90. “We have been working with the sector to ensure we get the settings right and restore confidence to the over 4,300 forestry participants in the ETS registry,” Mr McClay said. “It’s now clear that the previous Labour government made a number of decisions that drove up the cost of this Registry and they expected the forestry sector to pay for their mistakes. “The new charge ensures that forestry participants still pay their fair share of the costs to administer the forestry ETS registry, while not bearing the brunt of Labour’s previous decisions,” Mr McClay said. “The work to bring costs back in line continues and we have started a wider review of cost recovery settings to be completed in 2026. “The forestry sector Reference Group was established to increase transparency across the costs of the forestry ETS registry.” The new annual charge will enter into force in January 2025, with invoicing beginning in February 2025. The amendment to regulations will be notified in the New Zealand Gazette.

Forestry Australia has welcomed a new study published in Australian Forestry peer-reviewed journal by the former chief research scientist at the CSIRO, Dr John Raison. The paper, titled A review of the impacts of sustainable harvesting, non-harvest management and wildfire on net carbon emissions from Australian native forests, investigates the science behind claims that timber harvesting increases greenhouse gas emissions. Source: Timberbiz Dr Bill Jackson, Acting President of Forestry Australia said Australian and international studies highlight the potential to lower carbon emissions by producing and using wood products from sustainably managed forests, particularly as substitutes for high-emission building materials. “This paper demonstrates the complexity in accounting for the impacts of changes to forest management on carbon stocks and greenhouse gas emissions from Australian native forests,” Dr Jackson said. “Assessing carbon impacts of forest management needs to consider the full life cycle of forest management, wood production, processing, use and disposal or reuse. “The outcome depends heavily on assumptions about initial conditions, harvest intensity, timber recovery, lifetime of forest products, the impacts of wildfire and the time frame of the analysis.” The paper points out that it is important to get these assumptions right, otherwise policy makers can be ill-informed about the effects of their decisions on carbon emissions. Dr Jackson said policy makers also need to consider the short, and long-term, impacts on carbon stocks of decisions to reduce or cease native forest harvesting. This includes the impacts of wildfire and reduced professional forest and fire management capacity in agencies responsible for timber production. “This paper has implications for development of new emission reduction methods under Australia’s ACCU scheme,” Dr Jackson said. “Appropriate, landscape scale analysis using scientifically sound sampling and surveys of carbon stocks and dynamics are required to inform these methods. “The best opportunities are likely to lie in approaches that improve forest management to better integrate conservation, restoration and sustainable production and use of forest products,” Dr Jackson said. The report can be found at https://www.tandfonline.com/doi/full/10.1080/00049158.2024.2433815#abstract  

Forest & Wood Products Australia will open a Call for Proposals for its Forestry Research Program on Monday 6 January 2025. This program supports research, development, and extension activities that deliver measurable benefits to Australia’s commercial forest growers. Source: Timberbiz FWPA is seeking innovative proposals aligned with its 2023-2028 Strategic Plan, focusing on key RD&E priorities that reduce risk, loss and cost, and increase productivity. Specific industry priorities are identified in its grower RD&E investment plans: Climate Change Damage Agents Forest Operations & Supply Chain Impact of Fire Native Forest Silviculture Plantation Silviculture & Nutrition Tree Breeding & Genetic Improvement Proposals addressing areas of research outside of the priority topics may be considered if there is demonstrated strong support from the forest-growing industry. The FWPA Forestry Research program uses a two-stage process for applications: Submission of Concept Notes Submission of Full Project Proposals Successful projects are expected to commence in the 2025/26 financial year. Key Dates for Applicants Applications Open: Monday, 6 January 2025 Concept Notes Due: Monday, 3 February 2025 Full Proposals Due: Monday, 7 April 2025 FWPA strongly encourages applicants to engage early with industry partners to ensure meaningful collaboration and alignment with industry needs. For more information visit the Forestry Research Program webpage or contact our R&D team here.

The Forestry Corporation has released its Annual Report 2023-24 and, in the overview, outlined many of the challenges and achievements for that period. Source: Timberbiz The outline stated that the year ended 30 June 2024 (FY24) was a challenging one for Forestry Corporation of NSW. Sales of softwood timber fell short of targets for a second consecutive year due to a persistent downturn in the structural lumber market. As softwood sawlogs are primarily used in the construction of new homes, the decline in housing starts over recent years has contributed to this shortfall. While demand for hardwood timber, which is not tied to new housing construction, remained strong, production and revenue were well below expectations due to a range of complex external factors including weather, regulatory changes and legal challenges. During the year, the Government introduced several regulatory changes, including new protections for koala hubs within the proposed Great Koala National Park assessment area and additional safeguards for southern greater gliders. Identifying and protecting the habitat of threatened and endangered species is a fundamental tenet of responsible forest management and Forestry Corporation is committed to implementing the new Government regulations. However, in the context of this annual financial report, it must be acknowledged that these regulatory changes reduced timber production and revenue for the year and increased operational costs. During the year Forestry Corporation invested approximately $92 million in expanding its plantation estate, acquiring 6,500 hectares of planted and plantable land in softwood regions, which will increase the softwood timber resource available to the community for future generations. In May it issued the first ever investigation permits for potential renewable energy in softwood timber plantations. You can download the annual report here.

One of the finest pines growing in NSW State forests has been selected to take pride of place in the foyer of Government House as a decorated Christmas tree. Source: Timberbiz It’s a Christmas tradition that for decades has brought festive season cheer to visitors to Sydney’s heritage-listed ‘Castle by the Sea.’ Sourced from Penrose State Forest, the radiata pine has been beautifully decorated in time for the regal Christmas reception of Her Excellency the Honourable Margaret Beazley AC KC, Governor of New South Wales. The five-metre-high pine was transported from the Southern Highlands to Sydney after a rigorous selection process by Forestry Corporation to find a perfectly shaped Christmas tree. Forestry Corporation has also supplied a 3.5-metre pine to feature as the Christmas showcase at nearby Vaucluse House. “It’s always a great pleasure for staff to find the perfect Christmas trees for Government House and Vaucluse House,” Forestry Corporation’s Moss Vale Area Supervisor Tom Bagnell said. “These pines will bring Christmas cheer to many, but they also represent the contribution that our pine estates and the NSW timber industry make to building new homes across Australia.” Each year pine plantations in NSW State forests generate enough timber to build 40,000 new homes – that’s the equivalent of the homes in Orange, Bathurst and Oberon. “Radiata pine harvested from our State Forest plantations is used in construction and landscaping and the everyday pulp and paper products that the state relies upon,” Mr Bagnell said. Every tree that is sustainably harvested in State forests is replanted. Over the past five years, Forestry Corporation has raised 50-million seedlings in nurseries that have been hand planted NSW State Forests to ensure long-term timber supplies for future generations. Radiata pine (Pinus radiata) has been grown in the local Moss Vale area for over a century. The plantation from where these pines were selected was replanted in 2018 and those compartments will reach maturity as structural timber at an age class of 25 to 30 years. Penrose State Forest was one of the earliest pine plantations established in NSW in 1920. Forestry Corporation has grown pine on the site ever since with extensions to the plantation area in the 1960s and 1970s.