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Opinion: Colin Jacobs – stop fiddling with forest policies
A typical forest takes 30 years from planting to harvest. That’s 10 election cycles. Up to 10 different governments and ministers of forestry – the previous government had three in eight months – and policies that impact outcomes over the 30-year investment … and that’s for just one harvest cycle. Forestry generates NZ$7 billion per annum and creates 40,000 jobs. The ability to plant forests and register them in the Emissions Trading Scheme (ETS) provides valuable diversification choices for farmers and landowners struggling with economically marginal land, high input costs and depressed prices for sheep and beef. Revenue from registering a forest in the ETS is now essential to meet the much higher costs of actively managing a forest through to harvest. New Zealand cannot meet its international climate change commitments without a sustained contribution from exotic forestry. Our forests are New Zealand’s only bridge to a low carbon economy, buying emitters time to decarbonise by 2050. Forestry could double its economic contribution through developing domestic wood processing and finishing prior to export. Currently, we are in the crazy position where we export raw logs and then import value-added timber products. We should be doing this ourselves and meeting the world’s growing demand for high-quality, sustainable products. The juxtaposition between timber that absorbs and stores carbon and the emissions-intensive production of cement and steel supports timber as the building material of choice in a low carbon global economy. New Zealand is also facing an energy crisis as we transition to an economy based on renewable electricity. Natural gas is the best transition fuel to support this energy and economic transition, but we are rapidly running out. There are now mature technologies that use wood products to generate electricity at scale, as well as to generate process heat and electricity for industrial applications. We can and should be producing alternative energy products with our timber resource and building new clean industries around it. There’s no argument around the massive potential for our forestry industry and its ability to contribute more to our economy, environment and communities. But unless we stop continuously fiddling with forestry policy settings, we are now at real risk of collapsing one of the pillars of our economy. Lewis Tucker operates approximately 30,000 hectares of rotation forestry for timber and carbon on economically marginal land across the country. Most of these blocks have been subdivided away from productive farms, farmers have sold the steep hill country out the back that is unprofitable and tough to farm. This land, typically Land Use Class 6 (LUC 6), is perfectly suited for forestry. These subdivisions provide farmers with important cashflow and diversification options, including growing the more productive parts of their operations. We must protect the right of farmers to make the best land use decisions for their farms and families. But we are now at a crunch point in the policy process. The government’s recent Emissions Reduction Plan (ERP) contains a proposal to prohibit forestry on LUC 6 land from being registered in the ETS, with only a small amount of LUC 6 land allowed to be planted and registered. This possibility is beginning to paralyse the sector. Planting has dried up and the government’s forestry forecasts look well overstated. If implemented, this policy will restrict choices for farmers around what they can do with their own land at precisely the time they need as many options as possible. It also runs the risk of wiping significant market and option value off their properties. In the ERP this possible policy outcome is couched in the context of needing to “protect highly productive land”. Yet much LUC 6 land is not highly productive: it’s economically marginal. Generally, on its own, LUC 6 land is not profitable to farm. It is the land many farmers are choosing to subdivide or plant into forestry. While a large proportion of LUC 6 land is poor for pastoral farming, it does lie at the heart of a healthy, sustainable forestry industry. Up to 10% of the country’s 5 million hectares of LUC 6 land needs to eventually end up in trees, for both economic and environmental reasons. Adopting the potential policy will mean more permanent pine forests – with no intention or capability to harvest – are planted on LUC 7 and 8 land, setting up future generations for a lost opportunity. We share the government’s concern around planting highly productive land. However, limiting ETS-registered forestry on LUC 6 land is drawing the line in the wrong place. Drawing the line on productive LUC 1-5 land makes more sense: it would enable continued growth in pastoral production as well as the rotation forestry that will assist us to meet our climate obligations. We also support a requirement that any forestry planted on LUC 6 land must be maintained for timber harvest. This approach represents the best outcome for the country: for farmers and rural communities, our energy and forestry sectors, our global climate change commitments, and our economy. Colin Jacobs is an executive director of Lewis Tucker and Co. Lewis Tucker and Co is an investment banking, funds management and corporate advisory firm servicing New Zealand’s middle market and specialising in the agribusiness, forestry and food sectors. This article was first published in Farmers Weekly New Zealand.
Categories: Forest Products Industry
Imported timber for world’s largest hybrid building in Sydney
The world’s largest hybrid building currently under construction in Sydney will use European-sourced cross-laminated timber and glulam beams for its 24 timber levels. Source: Timberbiz Speaking at this week’s Timber Construct 2024 conference in Melbourne Tim Allen, from structural engineering company Taylor Thomas Whitting, said the timber components for the $1.5 billion 39-storey Atlassian Central Tower would be sourced from Wiehag and Stora Enso. Mr Allen said that the sourcing of the CLT and glulam was originally designed for an open procurement pathway, “We tried to leave it open to a competitive tender as best as we possibly could,” he said. “This could have been either Australian or European supply, but ultimately, decisions were made, and the timber will now come from Europe. “So, the European supply for this project has been appointed to Wiehag, with the CLT being supplied by Stora Enso.” Mr Allen said the products were currently being fabricated and would start arriving early next year. Located in Sydney’s new Innovation and Technology Precinct, Atlassian Sydney Headquarters will be 180 metres tall and includes a youth hostel occupying the lower levels. To be completed by 2025 and attracting 25,000 workers, the new 40,000m2 world-first commercial tower is a groundbreaking global first. The benchmark design of timber, with a glass and steel facade, includes a mix of outdoor and indoor spaces and reaches over 40 storeys high. Mr Allen described the tower being built next to Sydney’s Central Station as a timber building inside a much, much larger building. “This hybrid building utilizes the performance characteristics of different materials, concrete, structured steel work and mass timber throughout the construction,” he said. “Being a hybrid building, we’re trying to utilize the materials for its benefits and the right application in this aspect. “So, we’ve been able to leverage these benefits and balance of materials combining into an aesthetic and environmental advantages of mass timber with also using the structural performances of benefits of steel and concrete.” The building has concrete foundations as well as a concrete wall throughout the building with concrete “mega floors’’ from level one to level eight. Mr Allen said that these would repeat every four floors. “Next, we have the three timber floors that sit between the mega floors. “And these repeat from level eight to level 32. He said there was about 2000 square meters of timber floor plate. “So that adds to quite a bit of timber. “And finally, we have the structural steel exoskeleton that wraps around the side.” Mr Allen said he was often asked why do we only have three stories of timber sitting between the mega floors? “That’s a one of the outcomes of the fire separation strategy,” he said. Mr Allen said the project had some interesting sustainability goals, including a 50% reduction in up front embodied carbon, 100% renewable energy from day one of operation, and a six-star green star rating.
Categories: Forest Products Industry
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