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Annual service charges paid by forest owners with trees in the Emissions Trading Scheme (ETS) will be cancelled for the 2023 – 24 year. New Zealand Forestry Minister Hon Todd McClay announced the ETS change while outlining the Government’s vision to grow forestry as part of his address to the Fieldays Forestry Hub. Source: Timberbiz Minister McClay said the government wanted to rebuild confidence in forestry, noting that the charges imposed on growers for administering the ETS felt excessive, with insufficient transparency around them. The introduction of a series of initiatives supporting forestry and wood processing’s growth was also announced by the Minister during his address, including four key priorities to drive more positive outcomes across the supply chain. These included encouragement of economic growth through forestry and wood processing jobs and exports, delivering low emission solutions and products, supporting land use resilience, adaptation, biodiversity and social benefits; and providing carbon removals to support climate goals. New Zealand Forest Owners Association chief executive Dr Elizabeth Heeg welcomed the news removing the ETS charge and supported a more collaborative relationship with the Government to grow forestry in New Zealand. “We look forward to working with officials to ensure that the setting of ETS charges is done with transparency, efficiency and reasonableness,” Elizabeth said. “It has been a challenging time for forest owners. The encouragement from government to add more value domestically and address the climate crisis will go a long way in helping the sector grow revenue and jobs for New Zealand. “New Zealand’s forests – plantation, native or otherwise – are the only tangible means we have at present for mitigating climate change and meeting our 2050 emissions target. “Amendment to the administrative costs forest owners face for forests entered into the ETS will ensure forestry continues to be part of the solution to reducing our nation’s emissions. “We agree with the Government that transparency and collaboration is key and we look forward to helping them deliver their priorities.” The Forest Industry Engineering Association (FIEA) also backed the move. “With our sector delivering the most carbon-friendly set of exports and benefits to land use all while reducing New Zealand’s carbon emissions compared to other materials, it’s great to see Government showing it wants to grow the sector. Everything we do for industry aligns with the intent of today’s vision from the Minister,” FIEA events director John Stulen said. Government’s vision to grow the forestry sector aligns well with FIEA’s events: Spurring economic growth through jobs and exports; (ForestTECH) Delivering low emission solutions and products; (Wood Residues) Supporting land use resilience, adaptation, biodiversity & social benefits; (Wood Residues and Environmental Forestry) and Providing carbon removals to support climate goals. (Carbon Forestry) Annual service charges paid by forest owners with trees in the Emissions Trading Scheme (ETS) will be cancelled for the 2023 – 24 year. Ekos a New Zealand company that works with environmental financing also welcomed the statement by Forestry Minister McClay. “This is a good day for native forests. By removing this crazy service fee on native forests in the NZETS we can now restore more habitat with carbon funding,” Ekos CEO Sean Weaver said. Ekos specialises in using carbon credit revenues to pay for restorative forestry projects. In this way it can finance forest conservation without needing government grants or philanthropy. Ekos forest restoration projects have been hampered in recent years by changing government policy and a new service fee imposed in 2023. “I could never understand why the government encouraged native plantings one minute and the next minute would financially penalise native projects and make them harder to get off the ground”, Weaver said. “Native reforestation projects are financially difficult enough as it is because native trees tend to grow quite slowly. But this service fee – we called it the ‘MPI Bull**** Tax’ in our spreadsheets – just made everything much worse and stopped many of our projects from being financially possible.”  

AFCA will hold industry transition information sessions for its Victorian members, the following events will be held on Thursday 20 June. Source: Timberbiz Information sessions in Bairnsdale for businesses impacted by the closure of native timber harvesting and who are weighing up their options A general member meeting in Traralgon followed by a casual dinner. In Bairnsdale there will be two information sessions for businesses who have been impacted by the decision to close native timber harvesting and weighing up their next steps. Businesses needing information about transition pathways and support programs should attend. Staff from Forestworks and DEECA will be on hand to answer questions. Session 1 – 10-11.30am, Session 2 – 1.30-3pm Centre Room, Club Eastwood, 117 Great Alpine Road, Bairnsdale VIC 3875 A general member meeting will be held in Traralgon, and it will be an opportunity for discussion about AFCA activities and priorities. DEECA and Forestworks will not be at this meeting. Meeting 5.30-6.30pm, followed by a casual dinner (own expense), venue to be confirmed. To confirm attendance at either event please email tim@afca.asn.au

Recently multiple publications have claimed VicForests did not conduct night surveys. This is demonstrably false according to VicForests. VicForests undertook surveys both at night and during the day given the differing needs of the array of species that make up the valuable biodiversity of our forests. Source: Timberbiz VicForests staff accumulated 1000s of hours conducting night surveys. Since 2017 VicForests staff and contractors have been responsible for: 1930 night surveys, including 1344 spotlight transect surveys 2219 surveys using remote cameras that detect animals day and night. These are deployed in the forest for a set period, sometimes as long as a month and sometimes on a repeat basis. These surveys resulted in over 27,000 species detections being made. VicForests uploaded all survey results to the publicly available Victorian Biodiversity Atlas (the VBA). VicForests is a major contributor to the VBA, which provides vital information about species location and habitats. VicForests surveys were performed in accordance with recognised survey standards, usually those developed and issued by the Department of Energy, Environment and Climate Action and its predecessors. We reiterate that false claims do harm. This includes the impact on the mental health and wellbeing of people who have dedicated themselves to the management of forests for future generations.

The latest data from the United States Department of Agriculture shows stellar growth in the export of American red oak lumber to Australia in the first quarter of 2024. Source: Timberbiz Compared with the same period in 2023 there has been a value increase of 1687% to over US$4 million in this species alone, a volume increase of 1531% to nearly 4,000 cubic metres. The ever-popular American white oak also experienced growth of 52% in value and 64% in volume in this period, but this is the first time that its share has been overtaken by its close relative. “We have been promoting the benefits of American red oak in Australia for the last few years,” Roderick Wiles from the American Hardwood Export Council said. “It shares many of the characteristics of American white oak and is readily available and a cost-effective choice, so I am not surprised that it’s taken hold in the Australian market. We always encourage specifiers to look to use what the forest provides; too much focus on the best grades of a few popular hardwood species increases pressure on one part of the resource and encourages waste. “There are over 22 commercial species in the US forest and red oak is the most abundant, accounting for 18% of the hardwood growing stock. Some of Australia’s importers have recognised and seized the opportunity to encourage buyers to consider red oak.”

The use of prefab and modular construction can help to improve the capacity issues the industry is currently facing according to HIA Managing Director, Jocelyn Martin. Source: Timberbiz Ms Martin was speaking at a government roundtable designed to consider the barriers and opportunities for prefab housing hosted by Minister Ed Husic in Melbourne. Participants at the roundtable recognised that there were still a number of barriers preventing prefab and modular construction reaching its potential. “Addressing gaps in the National Construction Code is critical, as is a clearer understanding of the chain of custody in the manufacturing and building process, financing and business models and insurance,” Ms Martin said. “A better understanding of terminology is also needed. There are many options for construction from modular floor and wall panels through to fully completed homes. “Often people see prefab and modular as being an inferior housing option, but there are a range of builders doing some beautiful work, producing amazing homes. In addition, the use of moduar components has the potential to improve energy efficiency and apply innovative manufacturing techniques.” Participants at the roundtable committed to investigate improvements to contractual terms and financing models and to address the shortcomings of the Code as quickly as possible.

Timber Queensland is warning of a looming building materials crisis due to a lack of policy and budget measures for increasing future timber supply to help meet the state’s rising housing demand. Source: Timberbiz “While we support the critical need to accelerate housing and building projects for a growing population, the 2024-25 budget is weak when it comes to supporting essential supply chains such as timber for meeting the future construction of houses,” said Timber Queensland CEO Mick Stephens. “Up to 90% of homes in Queensland rely on local plantation softwood for timber framing and Queensland native hardwood and cypress is used extensively for structural beams and posts, flooring, cladding and decking products as well as for furniture and cabinetry. “With high forecast housing demand, the state budget does not address longer term measures to expand investment in farm forestry and new plantations for future timber supply while the government is dragging its feet on securing future hardwood supply from state-owned and private native forests. “Back in 2019 the Queensland Government committed to a Native Timber Action Plan to secure jobs and a long-term future for the hardwood industry. It’s now 2024 and we have no action other than one line in the budget papers to implement the plan with no funding commitments. “Lack of action on the plan is putting in jeopardy an ability to guarantee essential building materials from a $700 million hardwood industry supporting 6000 jobs across the state. “Over $140 million in new mill investment is stalled as hardwood supply contracts from state forests expire at the end of 2024.” Key measures to increase future hardwood supply we have recommended to Government include: implement new 20-year hardwood supply contracts from existing state forests and other crown land for processors as soon as possible. provide certainty for native forest owners to manage and invest in the responsible management of their forests by providing a long-term right to harvest, in accordance with the appropriate code of practice or management plan, to remove sovereign risk; and provide greater support for private forestry education and extension services so that farmers and landowners, including traditional owners, can implement best forest management practices to increase timber yields, profitability and related environmental benefits. “Recent research has found that state forests in South and Central Queensland generate better long-term environmental and social outcomes compared to if they were managed as national parks, with sustainable timber production an important benefit,” Mr Stephens said.