Image

Level playing field sought for wood processors

5 September 2022
Marty Verry is the chief executive of Red Stag group, which operates New Zealand’s largest sawmill and holds investments in forestry, cross laminated timber, glulam and property development.

OPINION: The Commerce Commission wants to encourage more competition in the market for structural timber through large-scale investment in new processing.

That, though, requires the Government to start treating wood processors fairly and equitably with foresters when it comes to carbon. International carbon accounting rules allow countries to calculate carbon from forests/wood in two parts.

The first part is the tree growing stage. The second part is the long-term carbon storage stage after the tree is converted into wood products. This stage is known as “harvested wood products” accounting.

The harvested wood products component makes up around one-third of the total forest based carbon accounting credits New Zealand claims in its Kyoto and Paris Accord reporting. The tree-growing stage is the other two-thirds.

The two are treated completely differently by the Government.

Fairness and equity

Since the introduction of the ETS in 2008, tree growing has earned NZUs for foresters to then sell. Forest establishment has been transformed as a result.

New Zealand was experiencing deforestation prior to the ETS but after its introduction, planting rates began doubling every year. MPI research predicted afforestation rates to increase tenfold as the carbon price reached NZ$50, and that is what has happened.

The Government has fuelled this further with various afforestation grant schemes, including a large portion of the NZ$3 billion Provincial Growth Fund that subsidised thee 1 Billion Trees programme.

Now, contrast the treatment of foresters with that of wood processors, who generate the harvested wood products’ carbon value. Not a dollar of value has ever been distributed to wood processors.

Despite many wood processors investing heavily in the expectation that eventually they will be treated consistently and earn NZUs, the Government has to-date pocketed all the accounting value of harvested wood products. Effectively, they have been nationalised.

More >>

Source: Stuff

Read More
Image

Australian timber framing industry gets a boost

Forest and Wood Products Australia (FWPA) is set to spearhead an initiative highlighting the advantages of timber framing in construction, promising a significant boost to its promotion efforts. First established in the Australian Forest Products Association’s Softwood Manufacturing Chamber, and funded by ...
Read more
Image

Who’s transforming our economy with renewable resources?

The opportunities for converting forestry fibre to renewable resources to replace fossil fuel based products are growing every year. The adoption of bioenergy and related technologies / products in New Zealand and internationally, sourced from forestry and wood products companies ...
Read more
Image

New trade agreement a boost for NZ wood processors

Increased export opportunities through the removal of tariffs for 41 wood products included within the ‘Agreement on Climate Change, Trade and Sustainability’ is welcomed by New Zealand’s wood processing and manufacturing industry. ‘Under brand New Zealand we have a leading story to ...
Read more
Image

Södra to become the largest producer of kraft lignin in the world

As a step in the strategy of getting more out of every tree, Södra is now establishing a new business to become a world leader in the production of kraft lignin. Södra’s production facility will be the first commercial facility ...
Read more
Image

Growing the potential of NZ’s forestry sector in partnership

Forestry Minister, Todd McClay, has announced the start of the Government’s plan to restore certainty and confidence in the forestry and wood processing sector. “This government will drive investment to unlock the industry’s economic potential for growth,” Mr McClay says. ...
Read more
Image

Prefab housing – another key to open affordability lock

The use of prefab and modular construction can help to improve the capacity issues the industry is currently facing, HIA Managing Director, Jocelyn Martin said. Ms Martin was speaking at a government roundtable designed to consider the barriers and opportunities for ...
Read more
Image

New generation of logstackers installed in Tasmanian mills

Forico has purchased two New Generation Wagner L90 Logstackers for its mills in northern Tasmania, the first of the new generation machines to be commissioned in Australia. The two new ‘Wagners’ arrived at Long Reach in the East Tamar and Surrey Hills ...
Read more
Image

Pentarch Forestry’s pallet mill in Melbourne is closing

Australia’s largest pallet manufacturing plant, operated by Pentarch Forestry in Dandenong South, Melbourne, will cease operations in July 2024 due to a chronic shortage of hardwood timber. This closure will remove 700,000 hardwood pallets, or about 44% of the country’s ...
Read more
Image

Latest research in hardwood cross-laminated timber

The mass timber industry, renowned for its innovative laminated wood products and potential to significantly reduce carbon emissions, is growing in use for larger construction projects. However, its expansion in areas like Michigan’s Upper Peninsula, with its abundance in hardwood trees, ...
Read more