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This Sunday 2 February is World Wetlands Day and this year’s theme is ‘Protecting Wetlands for our Common Future’. It reminds us that wetlands are not only crucial for biodiversity. Wetlands play important roles in our communities, industries, and cultural heritage. Source: Timberbiz More than 30% of the world’s wetlands have been destroyed by human activity over the past 50 years. Wetlands are vital for humans and animals, providing clean water and food. We have always, and will always, need healthy wetlands to thrive. Given this destruction, protecting and conserving them is more important than ever. People around the globe celebrate World Wetlands Day every 2 February. This date marks the anniversary of the Convention on Wetlands (Ramsar Convention), signed in Iran on 2 February 1971. Contracting parties, including countries like Australia, have celebrated World Wetlands Day since 1997. It became a United Nations International Day in 2022. In Australia, the convention recognises 67 wetlands, which span over 8.3 million hectares – an area larger than Tasmania. Since last World Wetlands Day, we’ve kept working towards global adoption of the convention. Last May, we joined a year of celebrations for Cobourg Peninsula Wetland. It became the world’s first Ramsar site over 50 years ago. It remains a pristine wonderland for Traditional Owners, wildlife, and visitors. Its preservation is thanks in part to its addition to the Ramsar List, and the sustained efforts of its managers. In June 2024 and January 2025, we represented Australia at the Standing Committee meetings of the Convention on Wetlands in Gland, Switzerland. These meetings showcase global commitment to conservation and produce important real-world outcomes for wetlands. In 2024, record attendance of 190 delegates from 60 countries developed a new strategic plan and saw proposals to update global waterbird population estimates. We also funded a Pacific youth role in conjunction with the Secretariat of the Pacific Regional Environment Programme (SPREP). This role will teach young Pacific peoples to care for their wetland resources. As we reflect on what we’ve accomplished, we recognise we must all do more to protect these vital ecosystems for future generations. Cobourg Peninsula in the Northern Territory is the world’s first listed Ramsar site. It was listed for its: diversity of coastal and inland wetland types support for populations of threatened species including endangered turtles maintenance of regional biodiversity support for life-cycle functions such as turtle and waterbird breeding important fish nursery and spawning habitats. The Garig Gunak Barlu National Park (Cobourg Peninsula) is jointly managed by Traditional Owners and the Northern Territory Government. The Northern Territory Parks and Wildlife Commission works with the Arrarrkbi people, the Traditional Owners of the land. The Arrarrkbi people are both decision-making partners in the management of the national park through its Board of Management, and contributors of traditional knowledge to managing the peninsula. Being joint decision-makers at Cobourg Peninsula means the Arrarrkbi people can continue their spiritual and cultural connections with the land and sea, as well as contribute invaluable knowledge look after the peninsula for future generations. The Cobourg Peninsula celebrated its 50th anniversary as a Wetland of International Importance in May 2024. Australia was one of five founding nations to sign the Ramsar Convention. We also designated the world’s first Wetland of International Importance under the convention. This was the Cobourg Peninsula in the Northern Territory, listed in 1974. Since then, Australia has listed 67 of its wetlands under the convention. Every state or territory is home to a Ramsar wetland, and they cover more than 8.3 million hectares. Iconic Australian sites include: Kakadu National Park (NT) Roebuck Bay (WA) Gippsland Lakes (Vic) Moreton Bay (Qld) Blue Lake (NSW) Macquarie Marshes (NSW) Coorong (SA) Australia continues to play an important role in making sure the convention meets its goal of preserving Earth’s wetlands. We do this by supporting the adoption and implementation of the convention’s principles in Australia and Oceania.

After 22 intensive weeks of theoretical and practical work, it was finally time for graduation for the first batch of trainees who completed SCA’s forest machine operator training. Source: Timberbiz The group celebrated with a lunch and diploma ceremony. “We have successfully created a very good training program where we included all the planned educational modules,” said Björn Eriksson of SCA, one of those responsible for the training. Marcus Dahlstedt is one of the participants and he will now work as a forwarder driver in SCA’s felling team in Sundsvall. “I am very satisfied with the training. It has been very enjoyable and a good mix of theory and practical elements in the forest,” he said. I used to work at Valmet, but I like being in the forest, and for me, the training was an opportunity to switch careers. That the training was paid was crucial for being able to change professions. The setup that you are matched with an employer early in the training is very good. I did my internship with the Sundsvall team and now it feels completely natural to step in on a real basis.” The first training session was located in Sollefteå and out of over 210 applicants, four women and eight men were selected. Almost all are now moving on to jobs as forest machine operators, with SCA and SCA-contractors. “Changed conditions at a contractor have unfortunately affected the employment for one of the participants, but we are hopeful that it will be resolved soon. The goal of the training was that everyone would work with one of our skilled contractors or in SCA’s own forest machine teams when the training was complete,” said Magnus Eriksson, head of Operational Development Production, who is responsible for the training. On February 24, 2025, the second training session begins. It has also attracted many applicants for the 12 spots. “We look forward to meeting the next batch of forestry machine operators. A significant difference in the second training session is that it will be winter when the training starts, which means we need to make some adjustments to the schedule to make the various educational modules as good as possible,” Mr Eriksson said. For Mr Dahlstedt, full-time forest machine operation awaits. “I look forward to beautiful days in the forest and being able to manage my workday myself. I enjoy working alone. The plan is to keep working like this for a while, and then we’ll see what happens. Running my own business is a vision, but there are many other exciting jobs within SCA as well. We gained good insight into that through the training and all the different professional roles that contributed their knowledge to our education. It is inspiring for the future.”  

The forest products industries faced a year of significant change in 2024, marked by shifting market dynamics and unexpected challenges. From fluctuating demand and pricing to an increasing emphasis on biofuel innovations, the sector underwent remarkable transformations. Source: Timberbiz As part of its annual tradition, ResourceWise is sharing key insights and forecasts for the year ahead. Here are eight pivotal predictions that will shape the forest products industry in 2025. The Year of Supply Chain Transparency This year is poised to become a pivotal year for supply chain transparency, particularly for forest product companies and landowners. A wave of new regulations is on the horizon, coupled with the gradual rise of voluntary compliance requirements. What does this mean? Although the European Deforestation Regulation (EUDR) was delayed until January 2026, it remains a priority, with the EU Parliament reaffirming its commitment to the initiative. While the industry has gained an additional year to comply, the pressure to adapt is building. Moreover, end users of forest products, especially consumer facing companies, are committing to increased transparency. Voluntary carbon markets continue to play a key role in corporate ESG strategies. While physical decarbonization is considered more effective and credible, there isn’t enough supply to meet the growing demand. As a result, the market for carbon credits and offsets often criticized for credibility issues, will require greater transparency to thrive. At the same time, the traditional timberland value model, centred on stumpage, is evolving (see Prediction 3). Landowners will increasingly need to adopt voluntary carbon standards to unlock new revenue streams from their forests. This shift will demand heightened transparency, marking a significant transformation in the industry. Eastern and Western Economies Drift Further Apart Amid Renewed Trade Tariffs The decoupling of Eastern and Western Hemisphere economies is set to continue, driven by a potential “second wave” of Trump-era trade tariffs targeting heavily subsidized economies. This is in addition to European trade actions banning or penalizing imports of Chinese made goods, most notable electric vehicles. This shift could have several key implications: China’s paper industry: Already facing overcapacity, China’s paper sector may experience further declines in demand if manufacturing offshoring accelerates. To prevent deflation, the country will need to address its existing excess production capacity. European investment in North America: European companies, grappling with the risks of deindustrialization due to stringent regulations and energy policies, are increasingly diversifying beyond the EU. For example, SAICA’s plans to establish a paper mill in Ohio, highlights this growing trend of investment in the North American market. Timberland Values Pivot to Carbon Amid Shifting Market Dynamics The value of timberland is increasingly shifting from traditional stumpage uses to carbon and environmental services. In many cases, new timberland investors are assigning substantial value to carbon as a key factor in underwriting timberland assets. This trend is largely driven by stagnant wood fibre markets and long-term forecasts showing that tree growth will far exceed harvest rates in the years to come. The US South Will Attract Global Attention with Competitive Pulp Mill Prospects The U.S. South boasts the lowest risk-adjusted softwood costs globally, making it a prime location for investment. Combined with low energy costs, growing markets for pulp mill byproducts such as carbon CDRs and e-fuels, and its proximity to the world’s largest consumer market, the region is set to attract significant investment in pulp mills, including an announcement for a greenfield pulp mill. Many domestic companies (Green Bay, Georgia Pacific) have announced significant investments — will a foreign company follow with the first North American greenfield pulp mill in 20 years? Lumber Market to Rebound in Late 2025 with New Mill Announcements on the Horizon The lumber market is projected to rebound in the latter half of 2025, driven by anticipated declines in interest rates and a resurgence in construction activity. Across North America, over 2 billion board feet of production capacity were shut down in 2023 and 2024. By the end of 2025, we expect announcements of new mill openings to signal a revival in the industry. Global Investors Will Eye the US Forest Products Market Due to Competitive Advantages The US forest product manufacturing sector is attracting significant interest, and we expect a major acquisition by a Latin American or European forest products company in 2025. The U.S. market remains highly appealing to investors, particularly those in the forest products industry, due to its abundant and competitively priced wood raw materials. With the economy growing at a steady 3%, the US provides a favourable environment for investment. Additionally, concerns over tariffs are encouraging companies to establish a foothold in the U.S. market to avoid being excluded. In contrast, Europe faces slower economic growth and a regulatory and business climate that shows little sign of improvement. High Fiber Costs in the Nordics Will Force Pulp Mill Closures Amid Russia-Ukraine Crisis Persistently high wood fibre costs in the Nordics, driven by the ongoing Russia-Ukraine war, are expected to lead to the closure of pulp mills in the region. The industry will be compelled to adjust its operations to align with the limited availability of affordable fibre. AI Won’t Take Over the World While AI won’t completely take over the world, it does represent a transformative shift in productivity arguably even more significant than the personal computer revolution. This shift will further widen the valuation gap between industries that adopt AI and those that resist it. If our industry fails to embrace AI, we risk being left behind. The consequences will be clear: diminished investment, declining efficiency, and a resulting drop in both profits and growth.  

Investigators at UK-based non-profit, Earthsight, say they have uncovered a booming trade in illegal Russian timber stretching throughout Europe and breaching war sanctions. Source: Timberbiz The investigation ‘Blood-stained birch: exposing the EU trade in Russian conflict ply,’ claims to have caught firms on camera, in voice calls and through internal documents arranging a steady flow of Russian plywood into the EU. These companies are selling illegal wood across the continent, and customers include important manufacturers of climbing walls, toys, flooring, furniture and other products. Posing as buyers over a 9-month period, the investigative non-profit Earthsight recorded traders admitting the practice is illegal, calling it a “gold mine” and suggesting techniques to avoid detection. The UK-based NGO estimates that more than 500,000 cubic metres of blood timber, with a retail value of over 1.5 billion Euros, has flowed from Russia through third countries and into the EU since sanctions were imposed in July 2022. The imports are now at some of the highest levels ever seen. According to Earthsight more than 700 cubic metres are arriving at EU ports and borders every day, equivalent to 20 large lorries or shipping containers. All 27 EU member states receive likely illegal ply, Earthsight says the largest volumes are shipped to Poland, followed by Germany, Spain, Portugal, Italy and Estonia. Long valued in construction for its physical properties, in recent years consumption of birch plywood in the US and Europe has skyrocketed. It is used in an increasing number of everyday products and has taken the interior design world by storm, with multiple social media influencers and design blogs recommending its use in kitchens and furniture. Earthsight says seven of the top 10 Russian birch ply exporters are still supplying the EU, the investigation found. Two of these firms are linked to billionaire oligarchs who met with Putin on the day of the invasion of Ukraine. One, Alexei Mordashov, is on the EU’s sanctions list while the other, Vladimir Yevtushenkov, is the main shareholder of Russia’s largest logging firm. Belarusian state-owned firms are helping facilitate the trade and also selling banned wood products to the EU, according to Earthsight’s investigation. Timber contributes significantly to Russian GDP and exports. All forests are state owned. The military even directly controls and profits from forests that cover more than one and a half times the size of Belgium. Earthsight did not investigate the precise origin of Russian timber entering Europe. To hide the trade, Russian firms told Earthsight they launder the ply via third countries, often Kazakhstan or Turkey. Most flows through China, where firms recorded by Earthsight were the most brazen about sanctions busting. Trade statistics and customs records examined by Earthsight show the business is booming. Several EU firms admitted buying illegal Russian plywood in covert recordings. Although these firms are traders, selling the ply on to others, the investigation also names several prominent EU customers of firms which admitted laundering Russian plywood.

The New Zealand Institute of Forestry (NZIF) has welcomed the Government’s proposed amendments to the Crown Research Institutes (CRIs) as potentially beneficial, particularly with the introduction of a focus area on the bioeconomy. Source: Timberbiz These changes align with numerous recommendations outlined in the Chief Science Advisor’s recent report, although not all recommendations have been implemented. NZIF supports the removal of the ban on gene technology, provided it is implemented responsibly. This modification offers substantial potential to advance innovation in forestry and related sectors, ensuring New Zealand’s continued leadership in sustainable and cutting-edge practices. Furthermore, the proposal to retain intellectual property (IP) in commercialised outcomes has the potential to drive technological advancements and foster innovation. However, NZIF cautions this approach may also lead to the neglect or underfunding of long-term, critical research areas, such as environmental sustainability and climate resilience, which are essential for the forestry sector and the broader ecosystem. NZIF raised concerns last year regarding the inadequate funding for science, which has adversely affected forestry research. We support a merger approach which aims to address this issue. However, NZIF remains concerned about the absence of additional funding accompanying these structural modifications. Restructuring initiatives often require substantial resources, time, and staff attention, potentially diverting focus from critical research priorities. This is particularly concerning given the recent Long-Term Insights briefing prepared by the Ministry for Primary Industries (MPI), which highlights the risk of the forestry sector being overlooked in the short-term priorities of bioeconomy science. “While we perceive opportunities in these proposed alterations, particularly with the focus on the bioeconomy and advancements in gene technology, we must ensure critical areas such as environmental and climate research are not compromised. The forestry sector plays a pivotal role in New Zealand’s future, and it is imperative its needs are adequately addressed in these strategies,” James Treadwell, President of NZIF said. The New Zealand Institute of Forestry (NZIF) strongly advocates for the continued prioritisation of the forestry industry within the development of bioeconomy strategies. Long-term investments in forestry-related research are crucial to fortify the sector’s contribution to New Zealand’s economic growth, environmental sustainability, and climate objectives.” NZIF remains steadfast in its commitment to collaborating with the Government, Crown Research Institutes (CRIs) / Public Research Organisations (PROs), and other relevant stakeholders to ensure the proposed changes deliver tangible benefits for the forestry sector and the nation as a whole.

Design and build professionals are invited to the first Timber Futures Seminar, hosted by WoodSolutions. The event will highlight the latest advancements in timber design and construction, offering solutions to global economic and environmental challenges in the built environment. Source: Timberbiz The seminar features a great line up of expert speakers, with keynote by Andrew Waugh of Waugh Thistleton Architects, a global pioneer in sustainable timber construction. Attendees will gain insights into how timber’s innovative applications are driving sustainable and economic solutions for the construction industry. Learn from renowned architect Andrew Waugh, who will discuss timber’s role in addressing economic and environmental challenges, alongside academics Dr Duncan Maxwell and Dr Richard Nero. Discover how advanced timber systems can shape the future of design and construction while connecting with industry professionals and peers. Understand timber’s potential to transform the built environment in response to global challenges like climate change and resource efficiency. This event is designed for architects, engineers, builders, and students, offering a platform to explore cutting-edge research, and stay at the forefront of sustainable building practices. “We are pleased to welcome Andrew Waugh to Australia for this seminar,” Kevin Peachey, Head of Built Environment Programs at WoodSolutions and Forest & Wood Products Australia, said. “His visionary work across the globe demonstrates how timber can address Australia’s economic and environmental challenges. This is a unique opportunity for our design and build professionals to learn from one of the leading minds in sustainable architecture and explore how timber can play a transformative role in the future of construction.” The event will be held on 10 February 2025, from 4:00pm – 7:00pm at the Carrillo Gantner Theatre, Sidney Myer Asia Centre, Room B02, Swanston St, Parkville, Victoria. You can register at https://www.eventbrite.com.au/e/woodsolutions-timber-futures-seminar-tickets-1202833931669?aff=MediaRelease