Australian timber industry news

Trees for Survival Charitable Trust is calling on New Zealanders to play their part in helping to ‘reforest Aotearoa’ by donating a native tree to their nationwide school program. Source: Timberbiz The charity’s inaugural ‘Donate a Native Tree’ appeal kicks off on 27 May and will run until 31 May 2024, aiming to raise as much as possible to help them bring the program to the schools on their waiting list. National Manager Phil Lyons said people can decide to donate a tree for NZ$7, give a monetary donation or join the Trees for Survival community by becoming a regular donor. “Trees for Survival has been blessed with an incredibly passionate team of talented and knowledgeable facilitators, enthusiastic principals, teachers and students, motivated landowners, and incredibly supportive partners and community groups over the years,” Mr Lyons said. “We often get approached by the community asking how they can participate in the program and the answer is simple – just donate. “It only costs NZ$7 to donate a native tree, and the more trees we have, the more students we can provide a hands-on environmental education experience and make a bigger impact across New Zealand.” As an added incentive, every donation made during the Donate a Native Tree appeal will go in the draw to win one of three NZ$50 Mitre 10 gift cards. Every native tree donated to Trees for Survival goes to a local school to be nurtured and grown in their custom-built shade house before being planted by school students on land that will benefit from restoration. “Students develop an understanding that they can have a positive impact through their actions, by helping to improve waterways and increase biodiversity. It’s a powerful thing,” Mr Lyons said. What began with three schools in Auckland has now grown into a nationwide program involving 230 schools in 2024. In 2023 alone, 5,500 students planted 146,280 native plants through the school program, with a total of more than two million native plants and trees planted since the program started in 1991. Having a local focus that can be replicated nationwide is paramount to the program’s success, said Mr Lyons. “When we can connect a school with local landowners and local partners, they’re able to see year-on-year the impact they can make on their local environment. Lyons added that donations and partnership discussions are welcome at any time, not just during their Donate a Native Tree appeal period. “Without more donations, our roots are bound, and we simply can’t grow so please give generously.” The Rotarian initiated charity, Trees for Survival first began in 1991 with a shade house and a plan to inspire New Zealand students how to grow and nurture NZ native seedlings and plant them on erosion-prone and at-risk land across Aotearoa, New Zealand.

Fisher-Price unveiled its all-new wooden toy line, Fisher-Price Wood, for children ages 6 months to 5 years. The products are made with wood from FSC-certified sources and designed to last, allowing families to pass them down from generation to generation. Source: Timberbiz With early childhood development at the forefront of Fisher-Price’s purpose, these wooden toys offer a wide range of fun play patterns from colourful puzzles and blocks to role play, music-making and more that help spark creativity, develop fine motor skills, and stimulate problem-solving. “For 94 years, Fisher-Price has been dedicated to helping children have the best possible start in life through innovative, trusted toys that provide hours of fun and enrichment,” Brian Fitzharris, SVP and General Manager, Fisher-Price, said. “With the debut of Fisher-Price Wood – a line that harkens back to the brand’s very roots, we’re bringing a fresh perspective to the timeless appeal of wooden toys that are affordably priced, made from FSC-certified wood, and designed to nourish a child’s creativity and development.”  

In this new book by Aaron Williams, this third-generation British Columbia logger returns to the forests of Haida Gwaii, to witness a way of life in the grip of change. Source: Timberbiz By the time Williams began learning how to fall a tree, his family had been making clear cuts on BC hillsides for nearly a century. During his father’s generation, the industry started to crumble, and by the time Williams arrived, he knew his future lay elsewhere. But his father continued in the trade, his work taking him into the forests of Haida Gwaii. There, Williams follows him into a season at Collison Point, where the loggers are increasingly unwelcome visitors to the ancient forests. The Last Logging Show captures the spectacular setting of Haida Gwaii and the people who call it home. It unravels the lives and dreams of those who log the forests for a living, who have toiled alongside their Haida co-workers for generations but while old approaches to forestry come to an end, new ways come into being. Thoughtful and compelling, this is a story of connection, community, and the force of fundamental change. Aaron Williams’ first book, Chasing Smoke (2017), was based on his experience fighting forest fires in British Columbia, Alberta, Ontario, Quebec and Idaho.  

Stora Enso’s Chief Financial Officer and Deputy CEO, Seppo Parvi, has decided to leave Stora Enso to assume a role with a company outside of the forest industry. He will leave Stora Enso during the fourth quarter of 2024. Source: Timberbiz “Since joining in 2014, Seppo Parvi has, in his role as CFO and member of Stora Enso’s Group Leadership Team, been integral in transforming Stora Enso to ‘The renewable materials company’,” Hans Sohlström, President and CEO of Stora Enso said. “He has also played an important role as Stora Enso’s country manager Finland, and in developing the forest industry more broadly. On behalf of Stora Enso, I want to express our sincere gratitude for Seppo’s significant contributions to Stora Enso and wish him the very best in his future endeavours,” Stora Enso will immediately begin the search for Seppo Parvi’s successor.

Conversations around trees on farms are often centred on tall trees, but the importance of the vegetation layers below the canopy can’t be understated in supporting biodiversity. Source: Timberbiz Due to grazing pressure or the presence of exotic pasture grasses, many patches of remnant vegetation do not have ongoing tree recruitment, grass tussocks or shrubs. Infill planting that includes native grasses, herbs, shrubs and small trees is vital to provide healthy habitats for bird and insect life. Jon Finch, Entomologist at the Tasmanian Institute of Agriculture, notes the importance of creating and protecting diverse understory for wildlife. “We really need to think about adding multiple layers to our plantings and allowing that to be undisturbed and not grazed, sprayed or managed,” he said. “Everything from grasses, which are important for holding soil together and providing food, to native herbs and flowering plants that produce nectar and pollen, to shrubs providing structure, shelter and food, then above that small and large trees that slow wind speed and provide shade. “Having these diverse plantings brings structural complexity back into the landscape, which wildlife needs to survive and prosper.” Both insects and birds play significant roles on agricultural land, providing services for pest control, pollination and soil health. Like insects, birds play a vitally important role in healthy ecosystems. Despite their importance to healthy ecosystems, there are signs that birds and insect populations are struggling, largely due to loss of habitat. For birds, loss of habitat is paired with an increase in introduced species that are over-abundant. Establishing or maintaining a healthy understory is an important part of supporting bird and insect communities. The first step is to protect areas of remnant vegetation, which often contains vegetation of mixed ages, including dead trees and tree hollows, which are extremely rare on farms yet a vital habitat providing shelter and resources for threatened species. In areas where tall trees require infill planting, caging individual tree seedlings for protection against browsing or damage from deer is an effective approach embraced on many farms.

Regular electricity shortages over New Zealand’s colder months could be a thing of the past if New Zealand diversified its heating sources to include biomass as a fuel. Brian Cox, executive officer of Bioenergy Association said New Zealanders were getting too familiar with this message from the energy sector at the same time every year. Source: Timberbiz “The announcement from Transpower that there may be insufficient generation to meet demand on the morning of 10 May is a situation which will become more common if there is too much reliance on electricity for energy supply. This is compounded by the announcement last week by the gas industry about looming gas shortages. “This is a situation of putting too much focus on a single form of energy.” With continuing strong population growth, a focus on decarbonising industry, and greater electrification of the vehicle fleet, Mr Cox said New Zealand risks being caught seriously short in electricity generation capacity for years to come. “And of course uncertainty over the future of the Lake Onslow hydro battery project has been hanging over the market for almost a decade. It has meant while those demand factors have been growing, generators have been hanging back from making any generation commitment, lest they be left with stranded assets if Onslow went ahead,” he said. While a decision on Onslow has been made for it to not go ahead, long lead times to create more generation capacity create a real squeeze on New Zealand’s electricity generation supply for several more years yet until those new generation assets come on stream. “If ever there was a time to have a joined-up national energy strategy, that time is now. And if we did, it would be very timely to include the use of biomass alongside electricity as an energy source for industrial processes, like heating and steam generation,” Mr Cox said. Mr Cox pointed to forestry firm OneFortyOne that recently signed an agreement with Canterbury Woodchip Supplies to take forest slash and turn it into biofuel to replace coal for heating horticulture crops in Nelson. “That company aims to reduce its slash and forest waste from its forests by 75,000 tonne over the next five years. That is the equivalent of 2000 logging trucks’ worth of timber.” With almost a third of New Zealand’s household waste comprising greenhouse gas emitting food scraps, there is also an ample feedstock source to enable the supply of biofuel for heating,” he said. The food waste sources for biogas production are diverse, including byproducts of food processing in the vegetable, meat, and dairy sectors, along with the methane gas emissions from landfills largely generated through waste food and organic matter within them. “A recent PowerCo report on renewable biogas highlights the potential this sector has to contribute to NZ’s climate change goals and energy sources.” Released in March the report identified the potential for an additional 18PJ of renewable biogas that could be sourced from waste processes, half from the North Island and half from the South Island. If tapped it means NZ could produce 23PJ a year, representing a reduction of 3.7 million tonnes of CO2 and equating to as much as 27% of NZ’s lower end of targeted gas reduction of 14m tonnes of CO2. Piped through the gas supply network, it represents about a 9% increase in NZ’s source of renewable energy. For companies needing gas for food processing, the use of onsite anaerobic digestors to produce biogas for their own use, also represents the next level in energy awareness. “Between forestry and food waste there is a very deep resource of biofuels that would go a long way to not only help remove this seasonal squeeze on electricity, but also make a major contribution to New Zealand’s efforts to reduce its greenhouse gas emissions profile for the industrial sector.”

  A two-year research project has shed light on the promising opportunities for regional New Zealand to adopt short rotation forestry (SRF) for bioenergy production. The findings show that leveraging short rotation forestry will not only diversify regional economies, but also contribute to sustainable land management and generate environmental benefits as New Zealand looks for ways to transition to a circular bioeconomy and meet its net-zero emissions targets by 2050. Source: Timberbiz Silviculture and forest carbon scientist Alan Jones says Scion’s modelling shows that short rotation forestry as a feedstock for bioenergy has the potential to replace 6% of New Zealand’s annual fossil fuel demand from less than 1% of the land area. “We’ve built on research from a decade ago and assessed the feasibility of rapidly upscaling bioenergy production from forests. We’ve found there are particular regions well-suited to short rotation forestry which provides a real opportunity for communities to transform their economic base and reshape New Zealand’s energy future,” he said. A key outcome from Scion’s research is a ‘how to’ guide for short rotation forestry targeting landowners, forest investors, and government agencies. It not only outlines the feasibility of SRF but also identifies specific regions most suitable for it in New Zealand. Scion’s research recommends that short rotation forestry should be established on lower value land (Land Use Capability Class 5-7) in locations where transport distances to processing locations can be minimised. Regions highlighted include the Central North Island, Northland, the East Coast and Otago. The ideal species for short rotation forestry is Pinus radiata, owing to its rapid growth rates and high degree of adaptability and disease resistance in a range of growing locations. Other options include Eucalyptus fastigata and Eucalyptus regnans for their potential to rapidly yield large volumes of woody biomass from young age trees. Trees are generally planted in dense stands and managed to intensify rates of wood production for renewable energy, such as wood pellets, torrefied briquettes or liquid biofuels for marine and aviation sectors. SRF is a forestry practice that involves growing and harvesting trees on a short rotation cycle which, according to Scion’s modelling, would ideally be between 12 and 18 years for the production of wood biomass. This is considerably shorter than the conventional 28-year harvesting cycle. One of the key advantages of SRF is its ability to provide a steady supply of biomass for energy production on relatively economically marginal land, with plantations harvested multiple times. Additionally, SRF can reduce greenhouse gas emissions by displacing fossil fuels and promoting carbon sequestration in the form of sustainably harvested living trees. Scion’s research responds to signals from the Climate Change Commission that indicate the rising importance of bioenergy from forests in the coming decade. It also presents owners of low production grazing land on steeper hill country with alternative options to maximise productive capacity and increase economic viability. Several challenges could impede the future widespread adoption of SRF in New Zealand – primarily low value of bioenergy feedstock under present market conditions. Considerations such as land costs and transportation distances further complicate the potential adoption of SRF bioenergy nationally. To address these challenges, Scion’s analysis proposes integrating the Emissions Trading Scheme (ETS) carbon value of standing trees in SRF plantations into their economic assessment, which provides additional incentives for investment. Mr Jones says the guide provides a glimpse of what could be possible in the future for short rotation forestry as a vehicle to scale up bioenergy production. But the benefits would go much further if decentralised processing of harvested material was promoted to stimulate regional economies and fast-track bioenergy availability. “It’s about developing forest systems that are optimised for bioenergy. But in more economically disadvantaged regions, it also makes sense to build and establish processing facilities there because the energy itself is a lot cheaper to transport once it’s chipped and dried or transformed into liquid biofuels. To validate theoretical findings, Scion is collaborating with the Ministry for Primary Industries (MPI) on developing designs for forest bioenergy trials. These trials will involve rigorous testing of growth rates, optimal density, and tree health for different species, including Pinus radiata and Eucalyptus varieties. The collaboration represents a critical step in moving from theoretical models to practical implementation, addressing the complexities and uncertainties associated with on-the-ground application. Scion researchers are also looking at optimising tree genetics and ways to optimise tree genetics by re-evaluating past stock for its compatibility with bioenergy. Conventional tree breeding over the past 50 years has focused on timber quality, minimal branching and straightness. As a feedstock for bioenergy, Mr Jones says optimal trees have very different traits. “We want high levels of branching, and we don’t mind growing bendy stems because we also want high resin production and high wood density. So, some of the traits that would have been conventionally bred out of that breeding stock in the past, we’re looking to bring back in for bioenergy.” By 2035, one scenario suggests 150,000 hectares of dedicated bioenergy forest could contribute to at least 5% of domestic fossil energy demand, displacing the equivalent of 3 Mt of CO2 emissions from oil combustion per year, or 4 Mt CO2 from coal.

FSC Australia will hold its 17th Annual General Meeting of Responsible Forest Management Australia Limited (FSC Australia) and Membership Networking Event, scheduled for Thursday, 30 May at the Terrace Room, National Arboretum in Canberra. Source: Timberbiz This event promises informative presentations from the FSC ANZ team, presenting comprehensive updates on its accomplishments over the past year and outlining ongoing initiatives for 2024 and beyond. The proceedings will commence with the Annual General Meeting, followed by networking opportunities over refreshments. The AGM will start at 10.30am and finish at 4.00pm with networking from 4pm until 5pm. For those unable to attend in person, you can register for virtual attendance and a viewing link will be provided for access to the presentations. This link is solely for viewing – interaction, queries, or voting will not be facilitated. You can vote using a proxy form but it must be submitted by 10am 28 May 2024. Upon registration, you will receive comprehensive details about the day’s program, including directions to the venue, parking instructions, and more. For any inquiries email info@au.fsc.org  

Applications have opened for research projects that will advance research and innovation in Australian forest and wood products. Source: Timberbiz The first of four $5 million national open calls for forestry research projects have opened, aimed at establishing new high-value wood products, developed in Australia. The funding is part of the Albanese Government’s grant agreement with the University of Tasmania (UTAS) to establish and manage the $100 million Australian Forest and Wood Innovations (AFWI). The annual national open calls are open to applications from all Australian-based researchers supporting the forest and wood product industries and is not limited to the AFWI research centres. Minister for Agriculture, Fisheries and Forestry, Murray Watt said the open call will allow industry and researchers to undertake projects that will make a positive impact on Australia’s forest and wood product industries. “We’ve cast the net wide to ensure a broad range of Australians get the chance to share their ideas on how to propel the industry forward,” Minister Watt said. “Establishing AFWI was an election commitment which we are proud to deliver and forms part of our record $300 million investment in the industry. “This program will help to deliver a sustainable future for the industry, by helping to unlock the full potential of wood as the ultimate renewable material, while also supporting a future made in Australia.” University of Tasmania Deputy Vice-Chancellor (Research) Professor Anthony Koutoulis said this funding presents an opportunity for researchers to develop novel and impactful ideas that support the sustainable production of wood products. “AFWI is committed to fostering innovation and empowering researchers to enhance the research capacity and capability in the forest and wood products sector now and into the future,” Professor Koutoulis said. “Encouraging collaboration between researchers and industry is vital for impactful projects. “With robust industry support and anchoring research on what really matters, research outcomes become readily applicable, ensuring lasting benefits for Australian communities.” Project applications close on 12 July 2024. For further details on this funding scheme, including eligibility requirements, refer to the relevant Grant Guidelines and Application form template on the AFWI website https://www.afwi.au/

In the heart of Paris, the Program for the Endorsement of Forest Certification (PEFC) Forest Forum 2024 convened the 56 PEFC national governing bodies to confront the pressing challenges of climate change in forest management. Source: Timberbiz Against the backdrop of a warming world, forests have emerged as crucial allies, offering both resilience and solutions to combat the climate crisis. The forum spotlighted the role that forests play in adaptation, mitigation, and decarbonisation strategies and discussed the role of forest certification in international efforts to reduce deforestation and forest degradation. Responsible Wood, the Australian and New Zealand national governing body for PEFC, took centre stage, advocating for enhanced recognition of sustainable forestry practices through forest certification and ensuring that Australian and New Zealand circumstances are taken into account during the evolving nature of forest certification. Simon Dorries, CEO of Responsible Wood, emphasised the pivotal role of responsible forest stewardship in mitigating the impacts of climate change. “Forests are indispensable carbon sinks and ecosystems, supporting biodiversity and livelihoods,” he said. “Responsible Wood is dedicated to ensuring that we can demonstrate that our forests are managed sustainably, safeguarding their resilience and ecological integrity, especially in the face of evolving regulations like the EU Deforestation Regulation.” Dr Tony Bartlett, Chair of Responsible Wood, stressed the necessity of collaborative efforts to address global forest challenges. “As stewards of the land, it’s our responsibility to implement practices that balance environmental conservation with economic viability and social responsibility,” Tony noted. “Through initiatives like the PEFC Forest Forum, we exchange knowledge and best practices to ensure a sustainable future for our forests amidst regulatory shifts,” Mr Bartlett said. Matt de Jongh, Sustainability Manager at Responsible Wood, highlighted the significance of forest certification schemes in promoting responsible forestry. “Certification offers consumers assurance that wood products originate from well-managed forests,” Matt described. “Supporting certified products empowers consumers to contribute to forest preservation and climate change mitigation, aligning with evolving regulations and industry standards,” Mr de Jongh said. Jonathan Tibbits, Marketing and Communications Manager at Responsible Wood emphasised the importance of raising awareness about sustainable forestry practices saying that effective communication is vital to foster a culture of responsible consumption. Through targeted campaigns and educational initiatives, Responsible Wood aims to empower individuals to make informed choices that support forest conservation, in line with regulatory requirements such as the EU Deforestation Regulation. Suzette Weeding, Vice Chair of PEFC, commended Responsible Wood’s commitment to sustainability and collaboration. “Responsible Wood exemplifies the principles of responsible forest management endorsed by PEFC,” Weeding praised. “Their dedication to promoting sustainable practices not only serves as a model for the industry but also aligns with regulatory frameworks, such as the EU Deforestation Regulation, ensuring forests remain resilient ecosystems for future generations,” she said. At the PEFC Forest Forum 2024, stakeholders shared insights and innovations, addressing the pivotal role of responsible forestry in tackling climate change and navigating evolving regulatory landscapes. As the discourse continues, Responsible Wood remains steadfast in its mission to champion sustainability, ensuring forests thrive amidst global challenges.

Famed designer Pininfarina and the Morgan Motor Company teamed up to design a new open top vehicle the Midsummer. Created in recognition of the heyday of European barchetta designs, this is special – limited to just 50 examples. Source: Timberbiz Midsummer represents the shared vision of Morgan and Pininfarina, who have collaborated to reinterpret and celebrate the timeless Morgan silhouette. As a unique celebration of the coachbuilding heritage of both Morgan and Pininfarina, Midsummer exhibits the skill of Morgan’s craftspeople more than any previous model. Inspired by marine applications, the beautifully sculpted wooden structures surround the cabin and create a shoulder line. Hand formed using high-quality and durable teak, hundreds of individual layers of wood are delicately laminated together to complete each section. Selected with meticulous attention-to-detail, each layer of teak is no more than 0.6mm thick. Each vehicle will feature nine individually crafted teak sections, taking more than 30 hours to skilfully create, and utilising 83m2 of sustainably sourced teak. Most notable are the dashboard tops, which feature 126 layers of teak each, and the door top sections which feature 120 layers each. Using multiple layers as opposed to a single piece of wood, adds strength and durability, necessary for exposed elements. Morgan has been known in the past for using wood in its vehicles but namely in the chassis and vehicle frame but now it has taken that a step further in this design. All the Midsummer cars have already found buyers. The car’s first public showing is expected to be at the 2024 Goodwood Festival of Speed in July.

In recent years, Precision Forestry has emerged as a transformative approach, leveraging advanced technologies to collect and utilize data, to optimize forest management practices for sustainability, efficiency, and productivity. Source: Timberbiz This data-driven approach enables forest owners, including us as one of the largest private forest owners in the world, to make informed decisions at a fine scale, tailoring forest management actions to specific areas or even individual trees. Stora Enso’s Precision Forestry program uses modern tools and technology such as drones, satellites, laser scanning (lidar), and harvesting machines to collect detailed forest data for planning forestry operations and biodiversity actions. With this granular data, we can recognize tree species, tree height and diameter, and wood stock volume in the forest, as well as harvester location or forest damage caused by wind or insects. Artificial Intelligence (AI) is in the core of Precision Forestry. With AI, we can combine the multiple data layers in our digital Precision Forestry platform and create an accurate Digital Twin of Forest. This enables us and other forest owners to map, model and manage ecosystems precisely, and at the same time maximize the value of forest assets. There are five ways to enhance forest management with Precision Forestry. Optimized terrain routing for forest machines Precision Forestry and its terrain data allow us to optimize the routing for forest machines, and to find the most optimal wood storage locations along forest roadsides. When optimising routes, the key is not only to find the shortest route to minimize CO2 emissions, but also to consider biodiversity and how best to protect it. Early detection of forest damage With the help of data collected through satellites and drones, we can detect forest damages, such as spruce bark beetle exposure, much faster and more efficiently than the human eye. Bark beetle damage detection is in use in our own forest assets in Sweden. This service will be available also for private forest owners in Finland during this year. Efficient forest area mapping with drones and remote sensing When mapping large forest areas, forestry experts can use drone pictures on a computer instead of having to map the area on foot. This greatly improves efficiency, as fixed wing drones can scan even 1,000 hectares of forests per day. In Finland, Stora Enso is currently using drones to scan forests for tree and species mapping. This helps to detect potential retention trees already before harvesting, leading to better forest management planning. In Sweden, we are also testing drones to analyse the forest harvesting footprint after felling. Forest area mapping is efficient with drones and remote sensing Enriched biodiversity data for Finnish private forest owners By combining forest and biodiversity data from various sources, we can model and manage biodiversity and wood production side-by-side. This helps to ensure, that the forest management decisions we make today not only maximise the financial value for forest owners, but also have a positive impact on biodiversity. In 2024, the goal is to make biodiversity data available for Finnish forest owners in the companys’s digital forest management application eMetsä. In addition to the traditional forest data, the new biodiversity data will include, for example, information about mixed species stands that have two or tree species, and no single tree species makes up more than 65% of stand volume, and information about stands where over 50% of trees are broadleaved. Achieving our biodiversity targets requires high-quality, auditable forest data Stora Enso has developed a science-based framework to verify its net positive impact (NPI) on biodiversity. The framework enables forecasting of biodiversity impact, which allows operations to be adapted towards a net positive goal. To achieve its NPI targets and measure progress, the company needs a wide range of auditable biodiversity data. For example, in Sweden it is mapping standing deadwood and broadleaved trees, which are crucial for forest biodiversity. With satellite data, it can provide more precise information about the location of broadleaved trees within a forest stand, leading to better planning of protection zones and to the possibility to leave them where broadleaved trees are detected. Continuous platform and business development Precision Forestry represents a paradigm shift in forest management, leveraging technology to optimize productivity, conserve biodiversity, and mitigate environmental impacts. As an agile digital platform, Precision Forestry is constantly developed through several business projects. This requires close collaboration and data collected together with internal teams and external partners. As technology continues to advance, the potential for Precision Forestry to revolutionize the way we interact with and manage forests is boundless. It offers new business initiatives, and opportunities for innovation and stewardship in the face of global environmental challenges. “This innovative approach not only enhances the value of our forest assets but also ensures that we can achieve a balance between economic, social, and environmental goals for a sustainable future.”, concludes Jani Kaskinen, Vice President, Precision Forestry, Stora Enso.

As part of Business Finland’s Veturi funding for forest machine manufacturer Ponsse, Sitowise is working with Ponsse to explore the potential of artificial intelligence for smarter planning and optimization of logging. Source: Timberbiz The aim of the project is to explore the use of AI and remote sensing data, as well as other data sources such as harvester data, to produce intelligent map data and services and to increase our understanding of potential customer needs. The main target groups are organizations involved in logging and timber harvesting. “The project will explore possible ways to produce intelligent map layers to facilitate harvesting planning, such as data describing terrain conditions, harvestability and wood quality,” said Sanna Härkönen, Product Business Lead at Sitowise. Bitcomp Oy (now part of Sitowise Oy) currently has a strong position in the market for services to the Finnish forestry sector. “We have already developed an easily scalable, cloud-based computing platform that we can use for AI-based data production. This will also allow for the convenient distribution of global map data. On top of this technology, we can explore and develop new services and products,” said Härkönen. The aim of the project is to identify and formulate tools that could help facilitate the most important work steps for customers. “The aim is also to explore the potential benefits of such map layers and tools along the entire logging value chain. The tools could, for example, help machinery companies to better optimize the use of their equipment and improve the preservation of environmental and natural values during harvesting,” said Härkönen. The benefits are expected to reach down to the operator level, as intelligent data can reduce the cognitive load on operators and improve the quality of their work. “The project will also look at different optimization methods to help plan harvesting and identify ways to take into account different forest use objectives. It also aims to test smart data in practice with test users, so that solutions can be better tailored to the needs of customers and users,” said Härkönen. Ponsse has existing international networks and activities across a wide range of regions in Europe, North America and South America, which are also the focus of this project. Business Finland awarded Ponsse’s and Epec’s FORWARD’27 program with 10 million Euro in funding in a challenge competition for leading companies. In addition, Business Finland awarded 20 million Euro in funding to the ecosystem companies surrounding the programme. The total budget of the Sitowise project is around 1.2 million Euro and the project will run for two years.  

New Zealand’s consultation to update carbon auction price settings for its emissions trading scheme failed to provide certainty to the market, with the government’s option to lower the auction floor denting market confidence and pushing prices down. Source: S&P Global The consultation released on May 15 was part of an annual review of the price and volume settings for the quarterly auctions of New Zealand Units, under which the government must consider the advice of its national climate body, Climate Change Commission. The latest consultation will review the settings for 2025-2029 but the government cannot change settings for the next two years without citing specific circumstances. The consultation sought public response on whether the government should follow CCC advice to cut the auction volume of New Zealand Units for 2025 by more than half to 5.9 million from 12.6 million to align the ETS with the country’s national climate target. CCC said in March that the estimated surplus of NZUs had grown to 68 million units from 49 million units at the end of September 2023. “The internal modelling shows that the Commission’s proposed settings are more likely to be in strict accordance with meeting emissions budgets across the scenarios tested than current settings,” according to the consultation document released by the government. The government added that CCC’s proposed settings were likely to lead to higher NZU prices, providing greater incentives for emissions reductions and removals. It, however, sought feedback on whether there were any particular circumstances that would allow the government to justify lowering the auction volumes for 2025-2026. “I think it shows that the government is largely supportive of the auction volume cuts that the CCC has proposed,” a carbon trader said, adding however that the consultation also raised uncertainty around the auction price floor. The auction floor price is the minimum price at which NZUs can be sold and was set at NZ$64/mtCO2e for 2024. While the CCC had recommended keeping the price settings unchanged, the government also provided the option to lower the price settings for the auction floor and the cost containment reserve trigger price, without providing any figures. The CCR trigger price leads to additional units being released for sale to balance prices. “A lower price corridor could apply from 2025 if there are circumstances that enable changes to be made to the first two years of settings,” according to the consultation document. There was no option provided to increase the price floor, with the government saying that a higher floor would be above the spot price and could encourage speculation. Market sources said the option for lower price settings was seen as negative. The government also provided the option to increase the CCR volumes to reflect the potential reduction in surplus NZUs. The CCR trigger price leads to additional units being released for sale to balance prices. The government has previously said that CCC recommendations cannot be taken as final word but the previous high court ruling will prevent them from rejecting the climate body’s advice outright, a second carbon trader said. A High Court ruling in July 2023 ordered the previous Labor government to reconsider its lower ETS settings after a climate group sought a judicial review of the government’s December 2022 decision to not follow the CCC advice. The consultation will close on June 14, with final settings expected to be released by the end of September. The NZU trading volumes jumped on a daily basis on May 15, with a total of 75,000 mt traded through the day compared with just 15,000 mt the day before. NZU price traded up earlier in the day to NZ$56/mtCO2e ($33.94/mtCO2e), before drifting down to NZ$54.25/mtCO2e. Platts, part of S&P Global Commodity Insights, assessed the price of NZUs at NZ$54.25/mtCO2e on May 15, down 25 cents on the session. The market was oversupplied, and traders were protecting themselves by taking quite destructive actions, the second carbon trader said. The pricing was at the marginal level of supporting forestry and seemed generous considering the incoming future supply, the trader added.  

The effects of bushfires, floods, storms and other extreme weather events are becoming increasingly impactful on our communities, environment, and economy in Australia and, in turn, the need for resilient housing is growing. Source: Timberbiz The Insurance Council of Australia (ICA) reports that Australians are five times more likely to be displaced by a natural disaster than someone living in Europe and the costs associated with those events are significantly growing. The ICA also reports that the costs directly related to repairing or replacing homes and their contents after natural catastrophes have increased significantly over the past 15 years, and indirect costs are even bigger. The result is that many properties are becoming uninsurable and local Councils are encountering additional planning problems. Improving the climate resilience of new and existing homes would contribute to reducing these costs, allow for sustainable market growth opportunities, and facilitate improvements in the housing supply crisis. This new WoodSolutions guide, the Resilient Timber Homes Guide, details how sustainable timber homes can be designed and built with a Code+ approach to resilience. It indicates that opting for a resilient timber home presents a proactive solution to mitigating climate challenges while providing safety and improved wellbeing to building occupants. The guide also details the increased value for the investors and the whole community through resilient design. The growing emphasis on minimizing the carbon footprint of buildings presents another compelling reason for the Australian insurance and real estate sectors to actively engage in mitigating disaster risks which will position them as providers of safety, wellness and future-proof value to their clients, and the community. Engineered Wood Products are now widely utilised for their sustainable properties that are essential for meeting decarbonization goals. Consequently, there is a demand for these products and the structures employing them to exhibit resilience and durability that surpasses minimum code requirements. This new design guide on resilient timber homes can be used by the building and construction industry in conjunction with other WoodSolutions resources that educate on specific performances such as durability, thermal efficiency, fire, and more. This library of free resources supports climate-conscious planning decisions and smarter real estate development options through resilient design and building initiatives. This ground-breaking guide is a result of the Resilient Timber Homes program, launched by FWPA, in partnership with industry leaders and in collaboration with outstanding experts in this field. Its primary aim is to foster innovation in construction solutions via a recently completed design competition, the implementation of this comprehensive design guide, and the facilitation of targeted research and development initiatives. Resilient Timber Homes are poised to create substantial growth in the demand for innovative, sustainable, and cost-effective wood-based products and services over the coming years. This heightened demand will result in a stronger and more resilient supply chain—an advantageous outcome for both the environment and the broader building sector. Download the free guide here.

Tasmania’s largest private forest and land asset manager Forico will welcome a new Chief Financial Officer (CFO), Chris Oddie, from 24 June 2024. Source: Timberbiz Mr Oddie is a Chartered Accountant with more than 30 years’ experience in senior executive finance, commercial and operational management, gained across the agribusiness, construction, community services, financial services and logistics sectors both in Australia and overseas. Most recently he has occupied CFO and Company Secretary roles with Regional Livestock Exchanges, Li-Ve Tasmania, and Spectran Group, where he shaped business growth and successfully managed company transformation and change. “It was vital for Forico to secure a talented and capable individual who can add value in a dynamic business environment and Chris emerged as a clear stand-out,” said Forico CEO Evangelista Albertini. “Chris’s wealth of experience in CFO and executive roles positions him optimally to continue Forico’s work in placing financial management front and centre in sustainable decision making and maintaining the leadership role we have forged in this. “The approach of mandatory nature-based reporting sees increasing demands placed on finance and accounting capacity in businesses worldwide. Forico has carved a leadership niche in this new reporting landscape, and we have no doubt Chris will enable us to achieve our vision of forestry as the industry at the centre of a sustainable future.”

Building enough homes for all Australians is again at the centre of Federal policy decisions, with the Opposition’s Budget reply acknowledging the critical importance of addressing housing supply challenges, said Master Builders Australia CEO Denita Wawn. Source: Timberbiz “To solve the housing crisis, we need to see action beyond the housing portfolio with skills, migration, infrastructure, industrial relations, defence, social services, and industry portfolios pulling in the same direction. “Builders applaud the Opposition for calling out the damaging impacts of recent industrial relations reforms and commitment to remove this complex legislation and provide more certainty for business. “The Government’s recent industrial relations legislation ultimately make home building more expensive and blow out supporting infrastructure projects. “Recent modelling found under a best-case scenario, new industrial relations laws will see at least 15,000 fewer homes and almost 8,000 fewer jobs and cost the economy over $113 billion over the next five years. “Master Builders welcomes the Opposition’s decision to extend and expand the instant asset write-off for small business to $30,000, $10,000 more than the Government’s policy but more support is needed. “The viability of the building and construction industry remains key to bringing down inflation and boosting economic growth. “We must reduce the time it takes to build and minimise increasing construction cost blowouts in infrastructure, commercial and housing projects. These costs are ultimately passed on to consumers or taxpayers. “We know higher than anticipated migration levels have exacerbated an already constrained housing system, but the Opposition has rightfully not shut the door on the very tradies we need to build more homes. “The industry needs half a million new workers over the next three to five years which we cannot fill domestically alone – skilled migration represents a vital piece of the puzzle. “Both major parties have this week committed to ensuring Australia is an attractive destination for skilled migrant tradies. “With considerable numbers of older workers retiring from the construction industry each week, the pressure to replace their decades of experience and upskilling is considerable. “We welcome incentives to encourage older workers back into the workforce without reducing pension payments. “As we gear up for the Federal Election, both major parties are now on notice to produce a plan to ensure that all policy levers are being pulled in the same direction to strengthen the industry and boost housing supply,” Ms Wawn said.  

Australia’s forest products sector has welcomed the Federal Government’s ongoing support in the 2024-25 Federal Budget. Source: Timberbiz “The Budget builds on the Australian Government’s investment since 2022 to boost timber and wood fibre supply, enhance manufacturing productivity, develop strategic industry policy planning and fund training and skills,” Australian Forest Products Association CEO Diana Hallam said. “The $3.4 million provided over four years in this Budget for development of a National Timber Fibre Strategy and a review of the 1992 National Forest Policy Statement ($1.8 million) with the states and territories will help industry plan for the long-term. Additional measures announced in biosecurity and firefighting, including aerial capabilities, are also acknowledged and appreciated.” The AFPA also welcomed the $48 million over four years to implement further reforms to the Australian Carbon Credit Unit scheme, including the establishment of a Carbon Abatement Integrity Committee to oversee the new proponent led method development. The AFPA has developed a new proponent-led method to encourage timber in the built environment which can reduce embodied emissions in midrise building by around 50%. Acknowledging the Government’s $11 billion investment in housing, Ms Hallam said the AFPA would focus its attention on working with the Government to promote and integrate Australian forest products into its housing, climate and economic agendas. “You cannot build housing without materials and timber is a key climate friendly material that will help Australia meet its net-zero by 2050 goals that were recommitted to in this Budget,” she said. “As outlined in AFPA’s How Timber Can Help Solve Australia’s Housing Crisis launched in conjunction with Master Builders Australia this week, our industry has the timber ready to go right now to build the homes of tomorrow, 50,000 more homes annually in fact. “It’s therefore disappointing no immediate measures to harness this opportunity have been included in the Budget, especially in light of plans for 40,000 new social and affordable homes under the Housing Australia Future Fund and Housing Accord. “While there is also a big Budget focus on new technologies and the Future Made in Australia Strategy, there is little evidence that the Government has considered the increased role Australia’s forest products sector can play. Many countries have identified green business opportunities as they progress towards net-zero that involve forestry industries, Australia should be no different. “The forest, wood and paper products sector is Australia’s sixth largest manufacturing industry and forestry plays a unique role in climate change mitigation. Timber is an economic carbon capture and storage technology which works at scale. Not only do our trees sequester carbon whilst growing, but once harvested, the timber is a permanent, or long lived, store of carbon in the built environment. And, in Australia, every tree harvested in forestry is replaced with at least another tree,” Ms Hallam said. “The power of embodied carbon in timber and wood as a climate solution that will help Australia meet its emission reduction targets is a proven technology that can help Australia transition to net-zero.”

May’s a funny month, you’re hanging onto the autumn weather and good times that were had over summer, knowing fully well that winter is around the corner, and it’s going to get cold and ugly. This is usually the case for our industry as log prices generally start heading south in late autumn and rain is not our friend. However, winter came early in terms of southward heading log prices, with a significant drop in April that extended into May with mainly flat pricing at the NZ$106/JAS level for A grade. Thankfully the weather has played ball with reasonably dry conditions to date, but this is cold comfort if your logging gear is parked in the paddock. There were some hopes that May would see a price increase of substance but, with both the foreign exchange rate and the shipping costs having Julie Anne Genter levels of volatility during April and early May, our hopes have been dashed. There is some good news simmering away in the background as Chinese on port inventories stabilise and demand increases into the 72km3 per day range. Supply from NZ has dropped significantly following the poor April prices and a quickly slowing CNI salvage volume. This will likely not have an impact on the CFR price (sales price in China) in the short term until inventory gets to an uncomfortably low position. The Chinese economy grew at a faster rate than predicted in Q1 with GDP at 5.3% against a Reuters poll of analysts that expected 4.6% however, it looks like the growth was primarily front loaded with March data weakening. Property remains the red-haired stepchild with Reuters reporting new house prices falling faster in March than any time in the previous eight years. Sales plummeted 23.7% in March compared to 20.5% for the previous two months so it’s clear that any significant rebound in construction is still a pipe dream. A recent Chinese trade delegation to NZ was wowed at our wooden commercial construction, and there was a definite interest in understanding how NZ’s construction techniques and technology could be commercialized in China. It was clear that the aging Chinese population is reasonably cashed up and not necessarily interested in living in a 500-story concrete and steel apartment block. If we could help develop this market segment it may provide significant demand for NZ radiata by placing more wood into a smaller but differentiated construction sector. For perspective, the wood usage per capita in China is less than 0.4m3, compared to India at 1.61m3, and a global average of 0.55m3. This indicates that there is potential of an additional demand of 210 million cubic metres if China reached the global average. There’s been a significant reduction in non-NZ supply into China in the past 12 months with Europe dropping to around 250Km3 per month and the Pacific Northwest steady at 180Km3. Australian export supply is minimal and is primary headed to India, and NZ also has a couple of vessels destined for the capital of cricket. While we still have fumigation issues with Indian shipments, any vessel headed to our commonwealth partners takes supply away from China which is a positive. Domestic demand still remains solid although the indicators are not looking flash for the NZ construction sector in the short term. Although core inflation was lower than expected, non-tradable inflation was stickier than a half-sucked wine gum, which will give Adrian Orr the mandate he needs to keep beating us over the head with his interest rate bat. Understandably, until we see a reduction in interest rates, the NZ construction sector will remain decidedly average. Nothing to see here on the carbon front with NZU’s trading in the mid $50’s for the last few months. It’s the same story as previous months with plenty of supply and average demand as most large emitters have covered off their obligations in the short term and the speculators have left the building, for the time being. This price point still provides for a very tidy return of around $1,605/ha and, with current returns from sheep, there will be many farmers very thankful for including carbon in their cashflow. So, in summary, it’s been a very volatile few months in terms of export price, and we’re currently stuck on a rinse cycle. It’s unlikely that June will see us over the NZ$120/m3 hurdle, but we are forever hopeful. It will more than likely be August before returns are at a level that will stimulate increased supply. Let’s hope the spin cycle is a bit more user friendly. Marcus Musson is a Forest360 Director. He holds a Bachelor of Forest Science with Honours from Canterbury University, New Zealand, and specialises in steep slope cable harvesting, marketing and value recovery initiatives.  

In today’s world, where environmental conservation is at the forefront of global concerns, ensuring the responsible management of our forests is paramount. One crucial tool in achieving this goal is the PEFC (Programme for the Endorsement of Forest Certification) certification. This certification plays a vital role in safeguarding our forests and promoting sustainability. But what exactly is PEFC and Responsible Wood certification, and why does it matter for our forests? PEFC certification is a globally recognised standard for promoting sustainable forest management. It provides assurance to consumers that wood and paper products bearing the PEFC label come from responsibly managed forests. The PEFC and Responsible Wood certification process involves rigorous assessments of forest management practices against a set of strict criteria, including environmental, social, and economic aspects. One of the key reasons why PEFC and Responsible Wood certification matters for our forests is its focus on sustainability. Sustainable forest management aims to balance environmental, social, and economic considerations, ensuring that forests can continue to meet the needs of present and future generations. By adhering to PEFC standards, forest managers commit to preserving biodiversity, protecting water resources, and minimising the environmental impact of forestry operations. Moreover, PEFC and Responsible Wood certification contributes to the fight against deforestation and forest degradation. By promoting responsible forest management practices, PEFC helps combat illegal logging and encourages the conservation of valuable forest ecosystems. This is particularly significant in regions where deforestation poses a severe threat to biodiversity, climate stability, and local communities. Another crucial aspect of PEFC and Responsible Wood certification is its emphasis on stakeholder engagement and social responsibility. PEFC standards require forest managers to engage with local communities, indigenous groups, and other stakeholders to ensure that their interests and concerns are taken into account. This inclusive approach fosters transparency, accountability, and trust within the forestry sector, ultimately benefiting both people and forests. Furthermore, PEFC and Responsible Wood certification supports the market demand for sustainable wood and paper products. As consumers become increasingly aware of environmental issues, there is growing demand for products that are sourced from responsibly managed forests. The PEFC label provides assurance to consumers that they are making a sustainable choice, thus driving market demand for certified products and incentivising more forest managers to adopt sustainable practices. In Australia, where forests are not only valuable ecosystems but also integral to the cultural identity of indigenous communities, PEFC and Responsible Wood certification holds particular significance. By promoting sustainable forest management practices, PEFC helps preserve Australia’s unique biodiversity and ensures the long-term viability of its forestry industry. Moreover, PEFC and Responsible Wood certification aligns with Australia’s commitment to sustainable development and environmental stewardship, contributing to the nation’s efforts to mitigate climate change and conserve natural resources. PEFC and Responsible Wood certification helps foster collaboration and knowledge-sharing within the forestry sector. By bringing together stakeholders from government, industry, academia, and civil society, PEFC creates a platform for exchanging best practices, innovative ideas, and scientific research. This collaborative approach enables continuous improvement in forest management techniques, leading to more effective conservation efforts and better outcomes for both forests and communities. Additionally, PEFC and Responsible Wood certification enhances the competitiveness of forest products in the global market. With growing awareness of sustainability issues, many businesses and government agencies around the world require certification as a prerequisite for purchasing wood and paper products. By obtaining PEFC and Responsible Wood certification, forest managers gain access to these markets and can command premium prices for their certified products. This not only benefits certified forest owners but also incentivises others to improve their practices to remain competitive in an increasingly sustainable marketplace. Ultimately, PEFC certification helps drive positive change throughout the forestry supply chain, from forest management to product manufacturing and distribution, ensuring a more sustainable future for our forests and planet. PEFC and Responsible Wood certification plays a crucial role in ensuring the sustainability and responsible management of our forests. By adhering to PEFC standards, forest managers demonstrate their commitment to environmental stewardship, social responsibility, and sustainable development. Through certification, consumers can make informed choices that support the conservation of forests worldwide. As we strive to build a more sustainable future, PEFC and Responsible Wood certification serves as a valuable tool in safeguarding our forests for generations to come.