Forest Products Industry

The American Forest Foundation (AFF) will hold the first auction for the Family Forest Carbon Program’s carbon credits in February 2025. The American Forest Foundation Carbon Auction is the first of its kind for a US nature-based carbon project and will offer buyers a transparent and streamlined way to secure high-quality carbon credits while supporting rural communities and family forest owners. Source: Timberbiz More companies than ever are working toward net-zero goals, but there remains an urgent gap in the upfront capital needed to deploy high-quality carbon projects to help meet climate mitigation targets and keep global temperature rise within 1.5°C. Globally, only 1.2% of the annual potential of nature-based solutions has been unlocked by the voluntary carbon market (VCM). Under this status quo, we risk not financing enough projects to produce a sufficient supply of high-quality credits to reach our collective climate goals. Upfront payment addresses that gap. The American Forest Foundation Carbon Auction will help scale financing and deployment of nature-based solutions through a transparent and cost-efficient approach where companies will be able to access all due diligence resources in one central place over several weeks and then bid on credits during a one-week time period in February. This approach will also give the Family Forest Carbon Program the upfront funding it needs to deliver measurable carbon impacts and high-quality ecological and community co-benefits. “Family forest owners are ready to take necessary climate action, and time is of the essence for corporations to invest in nature-based solutions to meet ambitious climate goals,” said Rita Hite, CEO of the American Forest Foundation. “This auction will be a game-changing opportunity for carbon buyers to secure premium carbon credits while supporting family forest owners and rural communities.” How the American Forest Foundation Carbon Auction will reshape the VCM: Closing the Climate Financing Gap: Corporations often seek to buy carbon credits at lower prices and pay upon delivery, yet developers need upfront capital to kickstart their work. The auction will bridge the divide by offering hybrid commercial terms where buyers will provide a partial upfront payment to catalyze the project, with the remainder to be paid upon delivery.   Streamlining the Due Diligence Process: The auction format will address the transactional frictions buyers and developers commonly face when transacting carbon credits, such as the protracted process of discovery, the need to manage multiple sources of due diligence data and the lack of insight into market prices. Through this auction, buyers will have access to the due diligence resources in one central place and the ability to see anonymous competing bids.   Linking Payments to Impact: Companies will prepay through down payments directly tied to project milestones achieved, including landowners and acres enrolled, and verification milestones. This method of down payments will allow companies to tie their upfront investment to measurable impact for communities and the planet.   Incentivizing Early Investment: Companies benefit from significant discounts on credits when they prepay. This helps ensure buyers get carbon credits at a competitive price, protecting against future price increases while safeguarding long-term decarbonization strategies and lowering overall costs.   By providing a share of resources upfront, buyers will be able to ensure that the Family Forest Carbon Program, developed by AFF and The Nature Conservancy, has the funding required to implement next-generation approaches to credit quality, resulting in credits that are highly additional and that also deliver significant co-benefits. “This groundbreaking auction will redefine how corporations invest in nature-based solutions to address the threats of climate change and biodiversity loss,” said Kevin Maddaford, director of US and Canada Carbon Markets at The Nature Conservancy. “It will also advance carbon market access for U.S. family forest owners and support the health of woodlands.”

In a time when sustainable energy has become a necessity, Finland is emerging as a leader in innovation and adaptability. It was recently reported that the country is ready to rely entirely on bioenergy for months if needed. This remarkable ability shows Finland’s dedication to renewable energy and has significant effects on the forest products industry. For those in this field, understanding these effects is vital. Source: ResourceWise Bioenergy has risen up as Finland’s largest renewable energy source, playing a pivotal role in reducing carbon emissions and ensuring energy security. This is particularly significant given the increasing volatility in global energy markets. According to Finnish Bioenergy Association expert Erika Laajalahti, Finland is uniquely positioned to harness biogenic carbon dioxide from various sectors ranging from the forest industry to biorefineries and waste-to-energy plants. This capability not only supports energy production but also enables Finland to reduce emissions through innovative carbon capture, utilization, and storage (CCUS) technologies. The potential for capturing biogenic CO2 is substantial. Finland generates approximately 28 million tons annually from large point sources. The amount nearly matches the country’s total fossil emissions in 2022. This volume emphasizes the significance of bioenergy as a sustainable resource and the potential for transforming Finland into a leader in carbon-neutral energy solutions. For bioenergy professionals, Finland’s strategy serves as a model for integrating renewable energy in a manner that benefits both the environment and the economy. Several significant projects are underway in Finland, showcasing its commitment to sustainability and innovation in the forest products industry. One notable initiative involves a collaboration between Metsä Group, a major player in the Finnish forest industry, and Andritz AG, an Austrian technology company. Together, they are exploring the feasibility of constructing a carbon capture facility adjacent to a bioproduct mill capable of capturing four million tons of carbon dioxide annually. Metsä Group’s Kemi bioproduct mill, already the largest wood-processing mill in the northern hemisphere, underscores the scale and ambition of this project. Following the feasibility study with Andritz, the project is expected to advance to the pilot phase at Metsä Group’s Rauma mill by 2025. This initiative highlights the potential for transforming CO2 from a problematic emission into a valuable resource. It is paving the way for sustainable industrial practices at a much broader scale. The forest products industry stands to benefit significantly from such advancements. By converting captured carbon into new materials, the industry can generate additional revenue streams while enhancing its environmental credentials. This approach aligns with the growing demand for sustainable products and presents an opportunity for businesses to differentiate themselves in a competitive market. The successful implementation of carbon capture technologies could revolutionize the forest products industry, introducing a high-volume, wood-based raw material. This shift would position the industry as a key player in the transition to a low-carbon economy. However, it also poses challenges that industry professionals must address. Firstly, the volatility of energy prices, driven by unpredictable wind and solar power generation, impacts the economics of bioenergy. While wood-based energy provides some stability, the industry must adapt to fluctuations in electricity prices. Investments in electricity-based boilers, designed for use during low-price periods, are already underway. However, regulatory challenges persist, particularly in Europe, where wood combustion faces scrutiny despite being considered carbon neutral. When looking at prices, the current energy shortage has led to pulpwood combustion and the diversion of saw logs to pulp production. This has resulted in unusually high log prices while the sawn timber prices are low. Pulpwood prices have also increased substantially. This situation demands a strategic approach to resource management, balancing immediate energy needs with long-term sustainability goals. For professionals in the forest products industry, navigating these complexities requires a deep understanding of market dynamics and a commitment to sustainable practices. Finland’s ability to rely on bioenergy for sustained periods exemplifies the potential of renewable energy in driving economic growth and environmental sustainability. For the forest products industry, this development presents both opportunities and challenges. For more information visit: www.resourcewise.com  

Stora Enso has opened its dry forming production unit in Skene, Sweden. The facility is the largest and most advanced of its kind, marking a significant milestone in sustainable packaging technology. Source: Timberbiz The Skene production unit utilizes an innovative dry forming process to produce high-performance formed fibre products, such as cup lids, designed to replace traditional plastics in food and beverage packaging. Unlike conventional wet forming, the dry process reduces water and energy consumption significantly, thus offering an even more sustainable manufacturing method for fibre-based packaging. Additionally, any excess material is recaptured and reused, ensuring a circular process with minimal waste. At the heart of this innovation is the advanced technology developed by PulPac, the leading company in the field. Its dry moulded fibre technology provides efficient production at high speeds, enabling Stora Enso to meet growing market demand for fully renewable, recyclable, and biodegradable fibre-based packaging solutions. The products produced with dry forming technology offer a significantly lower CO2 footprint compared to single-use plastics. The dry forming process offers also flexibility in barrier additives for customized functionality as well as an excellent surface finish with the option to advanced decoration possibilities. “Stora Enso is the first producer to successfully implement this new dry forming technology on a large scale,” said Anna Stenström, Operation Director at the Skene Production Unit. “We are truly excited to pioneer this new approach and to explore all the possibilities it offers to shape the future of sustainable packaging.” Juuso Konttinen, Senior Vice President of Biomaterials Growth Businesses at Stora Enso, said that the Skene production unit represents another great advancement in biomaterials by Stora Enso. “Dedication of our team and the collaboration with PulPac and other suppliers has enabled us to scale up this innovative technology to meet the continuously growing demand for high-quality and more sustainable products,” he said.

Australia’s investment in agricultural research and development has reached almost $3 billion in 2023-24, the latest ABARES release has shown. Source: Timberbiz This long-term commitment will lead to improvements in agricultural productivity, sustainability and modernisation. The private sector accounts for the largest growth in investment in the sector, with a nearly 5% annual growth rate from 2005-06. ABARES Executive Director, Dr Jared Greenville, said ABARES’s latest data, Agricultural research and development (R&D) investment in Australia – 2023-24 update, found total agricultural R&D funding was increasing steadily, largely from the private sector. “Agricultural R&D investment is what underpins innovation in the sector, and the flow-on benefits for farmers are considerable,” Dr Greenville said. “We know that every $1 invested in agricultural R&D, generates an almost $8 return for farmers over 10 years, which is a great incentive for the private sector to make these important investments.” According to ABARES, total agricultural R&D funding has continued to increase gradually, from $2.91 billion in 2022-23 to $2.98 billion in 2023-24. “Overall, investment in agricultural R&D is increasing steadily, but we’ve seen the private sector just overtake the public sector as the main funder of agricultural R&D investment,” Dr Greenville said. “There is a healthy mix of public and private R&D investment, reflecting a strong and robust innovation system with a good mix of long-term discovery research and practical commercialisation of technology. “Private sector investment has the advantage of focussing on commercialising new technologies, so it has far-reaching benefits for Australian farmers.” Dr Greenville said the strength of Australia’s agricultural R&D system was underpinned by the rural Research and Development Corporations (RDCs). “The RDCs are a unique investment partnership between industry and government, and their funding has grown steadily over the years as productivity has increased,” Dr Greenville said. “Each RDC delivers tangible, practical improvements for their industries, particularly in terms of productivity and sustainability.” Read the full report here: https://www.agriculture.gov.au/abares/research-topics/productivity/agricultural-research-and-development-investment-in-australia

Neville Smith Forest Products (NSFP) is a trailblazer in Tasmania’s forestry sector, renowned for its commitment to sustainability, innovation, and responsible sourcing. During a visit to NSFP’s Mowbray facility in Tasmania, Matt de Jongh, Sustainability Manager at Responsible Wood, had the opportunity to explore the company’s operations and discuss their approach to sustainable forestry practices with Brett Stevenson, Group Forestry Resource Manager at NSFP. Source: Timberbiz NSP has a heritage spanning 100 years and it is known for producing high-quality hardwood products, all sourced from sustainably harvested regrowth and plantation forests. The company was among the first in the timber industry to embrace sustainable forestry practices, holding PEFC certification for their commitment to environmentally responsible harvesting. “Our focus has always been on sustainability and innovation,” said Mr Stevenson. “We believe in using every part of the tree and finding ways to add value to the timber we harvest. This is at the core of what we do and drives us to continually improve.” NSFP’s products are used across Australia in building, construction, and consumer sectors, known for durability and quality. The company sources all its timber from Responsible Wood-certified forests, which ensures that the timber is sustainably harvested, and the forests are managed in a way that promotes regeneration and biodiversity. “NSFP’s approach to sustainability is truly impressive,” Mr de Jongh said. “They take responsibility for the entire lifecycle of their products, from how the timber is harvested to how they utilise by-products like sawdust and off-cuts. It’s a zero-waste philosophy that’s setting new standards in the industry.” One of NSFP’s most innovative initiatives is its pellet processing facility at their dry mill in northern Tasmania. This facility converts waste from the milling process into high-value wood pellets for heating and cooking, ensuring that nothing goes to waste. This initiative earned NSFP the EPA Sustainability Award for Tasmania in 2020. “Our wood pellet facility is a testament to our commitment to reducing waste and maximizing the value of our resources,” Mr Stevenson said. “By converting sawdust and off-cuts into pellets, we’re not only reducing our environmental footprint but also providing a valuable product for consumers.” NSFP holds Responsible Wood certification, which assures that their timber products are sourced from sustainably managed forests. This certification is part of their long-standing commitment to responsible forestry practices, ensuring that their operations meet the highest environmental, social, and economic standards. “Having Responsible Wood certification is essential to our business,” Mr Stevenson said. “It’s not just about meeting regulatory requirements; it’s about demonstrating our commitment to sustainability and giving our customers confidence in the products they’re buying.” The company continuously invests in research and development, finding new ways to enhance the value of their timber products. As an example the TimberBuild brand transforms timber shorts, traditionally a by-product of the milling process into functional and beautiful timber panels. “We’re always looking for ways to innovate and add value to our timber,” Mr Stevenson said. “Our TimberBuild panels are a great example of how we turn what would have been waste into a high-quality product. It’s about making the most of our resources and ensuring that nothing goes to waste.” Certification is increasingly important in today’s environmentally conscious marketplace. For NSFP, their Responsible Wood certifications are a key part of their business strategy, ensuring that their products meet the growing demand for sustainable materials. “Certification is critical for us,” Mr Stevenson said. “It gives us credibility in the marketplace and ensures that our customers can trust that the products they’re using are sustainably sourced.” The company also works closely with local communities, indigenous groups, and other stakeholders to ensure that their forestry operations are not only sustainable but also socially responsible. “Collaboration is key to what we do,” Mr Stevenson said. “We work with a range of stakeholders to ensure that our operations benefit everyone involved, from the local communities to the environment.” For Mr de Jongh, this collaborative approach is a shining example of how the forestry industry can work together to achieve shared sustainability goals. “NSFP’s partnerships with local communities and other stakeholders are a model for how the industry can work together to create positive outcomes for people and the planet.” Responsible Wood plays a crucial role in NSFP’s operations, providing a framework for sustainable forestry practices and ensuring that their products meet the highest environmental standards. “Responsible Wood certification gives us the confidence to say that we’re doing the right thing,” Mr Stevenson said. “It provides a clear set of guidelines that help us manage our forests responsibly and ensure that our products are sustainable.” Mr de Jongh said that Responsible Wood is about more than just certification. “It’s about fostering a culture of sustainability in the forestry industry. Companies like NSFP are leading the way, showing that responsible forestry is not only possible but also profitable.” For businesses looking to follow in NSFP’s footsteps, certification under Responsible Wood or PEFC offers a pathway to demonstrate commitment to sustainability. With consumer demand for certified products on the rise, certification can provide a competitive edge in the marketplace. “If you’re thinking about certification, my advice is to go for it,” Mr Stevenson said. “It’s a rigorous process, but the benefits are worth it. Not only does it help protect the environment, but it also opens up new opportunities for your business.”  

New Zealand’s Employers and Manufacturers Association (EMA) has delivered the Harm Reduction Action Plan for Manufacturing, the Project Whakahaumaru report, highlighting an estimated NZ$1.23 billion burden on the New Zealand economy each year from work-related injuries in the sector. Source: Timberbiz Manufacturing contributes more than 60% of New Zealand’s exports and employs nearly 230,000 people across 23,000 businesses. However, it is the only major industry sector not to show a decline in the incidence of work-related injuries over the last decade. Project Whakahaumaru (‘to safeguard and protect’) was supported by ACC and brought together 250 representatives from manufacturing and aligned sectors. The report reveals that the costs of annual ACC claims in manufacturing now surpass NZ$165 million per annum, from a base of NZ$91 million in 2015. Each compensation claim today amounts to 25 days off work on average, compared with 20 days off work 10 years ago. The costs of work-related injuries in manufacturing now amount to 19% of ACC’s total weekly compensation costs, compared with 15% in 2015. Increases in soft tissue injuries, such as strains and sprains from carrying and lifting, are a key reason for the growth in compensation claims. Key subsectors of manufacturing where the cost of harm is high include food, metal, furniture, wood, machinery and equipment, along with labour supply services. Identifying obstacles to reducing harm EMA initiated the project in March 2024 with support from ACC. The report will inform a long-term approach to improving outcomes from workplace harm in the sector. “Manufacturers play a huge role in the New Zealand economy, employing approximately 10% of the national workforce. It’s crucial we balance economic benefits with worker health, safety and wellbeing,” John Fraser-Mackenzie, EMA’s Chief Executive, said. “By safeguarding and protecting workers, we are directly improving business outcomes for the whole country. It’s vital we deliver an action plan that gets this right and delivers practical support to businesses and workers on the factory floor.” Renee Graham, ACC’s Head of Injury Prevention, said that Project Whakahaumaru provides an important foundation for improving health and safety outcomes for the sector. “Manufacturing is behind other sectors such as construction, farming, forestry, retail and logistics which are already taking coordinated action to reduce harm in their sectors. “There’s a real opportunity to improve outcomes for workers and businesses in manufacturing. ACC is committed to working with the industry to help prevent harm and help address the rapidly rising costs.” Wendi Bains, Chief Safety & Sustainability Officer at Fletcher Building, is the Chair of the Project Whakahaumaru Steering Group. She said that the manufacturing sector is full of wonderful businesses that are committed to providing a safe workplace for their people. “Despite ongoing efforts, the sector continues to experience a high rate of work-related injuries compared to other industries. The statistics and stories are compelling, we need to do better. “Improving the health, safety and wellbeing of our workers is critical, and it is imperative that we, as business leaders, take decisive action to ensure the survival and prosperity of our industry. Whakahaumaru has given us a solid plan to start to address this, targeting sector specific issues. However, as we all know, execution is key.” Project Whakahaumaru revealed that businesses most vulnerable to high numbers of injury claims are small to medium enterprises (6-99 employees), rather than single operators or large companies. Age groups at both ends of the workforce have higher rates of injuries. Older workers (60+) account for a much higher share of the lifetime costs, while workers under 25 are also at heightened risk. Ethnic minorities are disproportionately affected, with Māori, other ethnicity and residual category groups showing the highest claims incidence. Pacific peoples experience a noticeably higher rate compared to their European and Asian counterparts. Manufacturing businesses and leaders cite challenges in addressing the high incidence of work-related injuries in the sector. These include complex regulations, ambiguous rules and a lack of clear guidance. Diverse workforces, both generationally and culturally, can hamper communications and understanding, contributing to lower levels of health and safety prioritisation. Workers in the manufacturing sector cite a lack of training and production pressures as impediments to improving safety and wellbeing. In addition, insufficient attention to safety by leaders, as well as reactive measures only taken after incidents occur, were also picked up in discovery by Project Whakahaumaru. The key objective of the action plan is to significantly reduce workplace harm, improve recovery-at-work outcomes and reduce associated costs in the manufacturing sector through evidence-based interventions. These will include advances in technology, workplace design, workforce development, and leadership enhancement. The action plan recommends establishing a sustainable industry-wide leadership model, to ensure continuous improvement and effective implementation of the plan. Project Whakahaumauru is the first phase in the development of a comprehensive plan for manufacturing, commissioned by ACC and WorkSafe. ‘Whakahaumaru’ means to safeguard or protect. It refers to the action of making people or places safe and secure by ensuring the absence of danger or risk of harm. It reminds us to always put action to our words in creating safe workplaces within our industry. The Project Whakahaumaru methodology combined quantitative data analysis, stakeholder consultations, and reviews of best practices from around the world. This included examining ACC and WorkSafe claims data and integrating insights from successful international models. Approximately 250 stakeholders from the manufacturing sector, including leaders and workers, along with health and safety professionals contributed to the discovery process, taking part in focus groups, one-to-one interviews, co-designed workshops and surveys. The Project Whakahaumaru report can be downloaded at: Project Whakahaumaru – A Workplace Harm Reduction Plan. The EMA will host a Webinar on Thursday 21 November, to explore in depth the insights and information gained by Project Whakahaumaru, as well as details of the new Harm Reduction Action Plan for Manufacturing that has emerged from the discovery process.