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«Trends and Prospects UNECE Committee on Forests and the Forest Industry November 3, 2015 Prepared by: Policy, Economics and Industry Branch Canadian ...»

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geotextiles; home insulation; air, liquid and gas filters; and noise absorbents.

 Installation of an innovative anaerobic digestion system at a pulp mill to produce biogas which can then be used to generate electricity and heat.

 Implementation of an organic rankine cycle system at a lumber processing facility to generate electricity using biomass-derived waste heat.

 Development of a commercial-scale recovery process to produce kraft lignin that can be used in a variety of innovative applications such as to displace components in commercial glues used for plywood, medium density fibreboard and laminated veneer lumber manufacturing.

 Optimizing processes to develop advanced strand-based specialty and oriented strand board commodity products on a single production line.

 Building Canada’s first manufacturing plant for prefabricating a panelized system that meets the rigorous Passive House Standard.

 Developing the first made-in-Canada Passivhaus wood window system to produce energyefficient windows for passive houses.

 Developing a portfolio of new, premium value grades of Northern bleached softwood kraft (NBSK) pulp (which have greater fiber bonding performance properties compared to conventional NBSK grades) that can be used to produce tissues, towels and personal care products and also incorporated into non-traditional, growing, and value added markets such as fiber reinforced materials, including cement applications.

 Implementation of innovative fibre preheating technologies that increase the productivity in two separate particle board and medium density fibreboard facilities.

Markets Expanding Market Opportunities Program The Expanding Market Opportunities Program (EMO) helps to increase and diversify market opportunities for Canada's forest sector by promoting broader use of Canadian wood products.

The program provides funding to forest product associations to support market diversification and expansion activities such as: branding, demonstration of Canadian wood-frame construction techniques, international representation through in-market staff in offshore offices and technical support to address market access and regulatory issues. In addition, the program supports quality assurance and activities that reinforce the forest sector’s environmental reputation through the promotion of Canada’s strong record on sustainable forest management and a preferred global source of sustainable forest products. Activities in this area also include the development of science and outreach products related to forest management in Canada’s boreal forest.

Over the past decade, this multi-faceted market diversification strategy has helped Canada’s wood product sector increase its exports to emerging and fast-growing Asian economies. For example, the value of Canadian wood product exports to China increased almost 18-fold between

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2005 and 2014 to $1.9 billion. In South Korea, they grew by 204 percent to $221.6 million during the same period.

In North America, the EMO program has supported industry efforts to increase wood use in nonresidential buildings such as schools, health care facilities and commercial outlets and in mid-rise buildings up to 6-storeys. As a result, wood has been used in more than 2,063 non-residential construction projects in Canada and the United States since 2007, representing an estimated $954 million in new wood sales for the wood products sector.

The program has also supported the efforts of the National Research Council (NRC) to undertake scientific research which led the Canadian Commission on Building and Fire Codes to unanimously approve new provisions for mid-rise wood construction for up to 6-storeys in the 2015 edition of the National Building Code of Canada (NBCC). The vote took place in late March 2015 and the new edition of the NBCC is expected to be released by the end of calendar year 2015.

EMO also continues to help advance public acceptance of taller wood buildings and realized a number of milestones under the Tall Wood Building Demonstration Initiative (TWB). Led by NRCan with support from the Canadian Wood Council (CWC), FPInnovations and NRC, TWB research and development activities enabled the development of Origine, a 13-storey condominium building in Quebec City, and inspired the Quebec Government’s interest in tall wood buildings. TWB funding was also instrumental in the development of an 18-storey hybrid mass timber students’ housing complex at the University of British Columbia (UBC), with construction expected to commence in the early Fall 2015. This will be the world’s tallest wood building.

At the provincial level, the Quebec Government became the first jurisdiction in North America to officially allow the construction of tall mass timber buildings —up to 12 storeys— with the release a technical guide entitled, Bâtiments de construction massive en bois d’au plus 12 étages (French only) in August 2015. An English translation is planned due to the great interest in the Guide by other jurisdictions across Canada.

Climate Change Adaptation In 2008, the Canadian Council of Forest Ministers (CCFM) stated, in A Vision for Canada’s Forests: 2008 and Beyond, that “consideration of climate change and future climate variability is needed in all aspects of sustainable forest management.” In the same year, provincial and territorial Premiers, through the Council of the Federation, requested the CCFM Climate Change Task Force (CCTF) to undertake collaborative work on adaptation in forestry. Phase 1 of this effort was completed in 2010 and provided an assessment of tree species vulnerability and management options for adaptation (www.ccfm.org/pdf/TreeSpecies_web_e.pdf ).

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forests and in the forest sector. A scalable, nationally-applicable vulnerability assessment framework for sustainable management under climate change and related adaptation knowledge syntheses have been developed and are now being disseminated to enable members of the forest sector to incorporate consideration of changing climatic conditions into sustainable forest management. The tools and techniques being provided to the sector are designed to be readily mainstreamed into day-to-day forest management planning and decision-making processes, and are being field tested through several case studies across Canada. They are described in a special series of nine reports by the CCFM that are now all available at www.ccfm.org.

The CCFM is currently supporting work on a third phase (2015-2016) of the CCTF. The CCTF will be analyzing approaches for incorporating climate change into sustainable forest management criteria and indicators, supporting a Forestry Adaptation Community of Practice (FACoP, http://www.ccadaptation.ca/facop), and building climate change considerations into the work plans of the CCFM Forest Pest and Wildland Fire working groups.

Recognizing that business and industry lack timely access to applicable information on climate change impacts and adaptation, the 2011 federal budget provided funding for five years for work by nine federal departments on climate change adaptation. The main goal of the Natural Resources Canada (NRCan) program is to enhance competitiveness in a changing climate.

Through the Forest Change initiative, NRCan is continuing working with members of the forest sector to develop and transfer targeted adaptation information, knowledge, and tools to help mainstream adaptation into sustainable forest management policies and practices to enhance competitiveness. This is meant to help members of Canada’s forest sector, notably the industry, to understand climate change-related risks and address associated costs and opportunities. The Canadian Forest Service of NRCan will be disseminating to the public, adaptation information and tools as they become available. In addition, trends and projections will be provided based on a logical and cohesive set of indicators of the effects of climate change on forests and forest management systems. Actionable science and decision-quality information relevant to competitiveness under a changing climate, including a range of knowledge products such as maps, synthesis reports, guidebooks, climate projections and decision-support systems, will also be distributed. Multidisciplinary information and knowledge on past and projected climate change impacts is being analysed to produce an integrated assessment of the implications of climate change on Canada’s forest and forest industry under a range of future, “what-if” climate scenarios. The integrated assessment will identify potential areas and timing of vulnerabilities to inform policies and investment by the public and private sectors.

Provincial and territorial governments are also continuing to advance adaptation of sustainable forest management activities. Within several jurisdictions, vulnerability assessments are being conducted at the forest management unit and regional level as a basis for incorporating climate change considerations into day-to-day management activities. Through the Forestry Adaptation working group of the Adaptation platform of NRCan, a Compendium of Forest Adaptation activities in Canada was developed to document what is currently happening within Canadian organizations or jurisdictions with respect to policy and regulation on forestry adaptation, and new forest management practices that incorporate climate change considerations. Also, membership of FACoP is growing and has facilitated the sharing of best practices and lessons learned in adaptation among researchers, policy-makers, and forest managers across Canada.

November 2015

International efforts

Canada continues to actively participate in the United Nations Framework Convention on Climate Change (UNFCCC) and is committed to negotiations aimed at producing a comprehensive, legally binding agreement by 2015 that would enter into force in 2020. In these negotiations, Canada supports inclusion of forest and other lands in a manner that contributes to reducing anthropogenic emissions and enhancing carbon removals, and that strengthens incentives for sustainable land management, while taking into account national circumstances.

Canada has participated actively in international negotiations under the UNFCCC on the development of a methodological framework to Reduce Emissions from Deforestation and Forest Degradation and to enhance sustainable forest management in developing countries (REDD+). The Warsaw Framework for REDD+ was agreed in December 2013, with additional guidance agreed in June 2015. Canada also participated in the REDD+ Partnership, a global voluntary initiative which was launched in 2010 to build momentum for REDD+, and which completed its work in December 2014. In September 2014, Canada endorsed the New York Declaration on Forests which has a global goal to halve the loss of forests by 2020 and to end net deforestation altogether by 2030.

In May 2015, the Government of Canada demonstrated its commitment to addressing climate change by submitting Canada’s Intended Nationally Determined Contribution (INDC) to the UNFCCC (http://www4.unfccc.int/submissions/INDC). Under the INDC Canada intends to achieve an economy-wide target to reduce its greenhouse gas (GHG) emissions by 30% below 2005 levels by 2030. As part of this, Canada’s intends to account for its land sector using a netnet approach, account for harvested wood products, and exclude the impacts of natural disturbances.

Canada has also demonstrated its commitment to addressing climate change by providing international climate finance in support of mitigation actions by developing countries and support for adaptation by the poorest and most vulnerable countries. Canada has fully delivered on its fast start financing commitment by providing $1.2 billion over 2010-2013, including funding for the Forest Carbon Partnership Facility, the Congo Basin Forest Fund, the Congo Basin Forest Partnership, and the BioCarbon Fund. Canada has also committed to providing $300 million to the Green Climate Fund, which is aimed at supporting projects, programs, policies and other activities to address climate change in developing countries, including REDD+.

Domestic Emission Reduction Efforts

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Environment Canada’s most recent Canada’s Emissions Trends report (December 2014) detailed projections of progress toward Canada’s 2020 GHG emissions reduction target. The report shows that Canada’s 2020 GHG emissions are projected to be 130 Mt lower relative to a scenario with no action. The projected reduction is a result of collective action by governments, consumers and businesses. Emissions intensity (emissions per dollar of GDP) has shown an average annual decline since 1990, a trend that is projected to continue to 2020. Emissions per capita (tonnes per person) have also been decreasing since 2005, and this is also projected to continue to 2020. However, the projections also indicate that further efforts will be required in order to meet the 2020 target. The 2015 version of Canada’s Emissions Trends, as well as Canada’s Second Biennial Report to the UNFCCC, due by the beginning of 2016, will provide the latest projections, including from the Land Use, Land-Use Change and Forestry (LULUCF) sector.

The Government of Canada is implementing a sector-by-sector regulatory approach to reduce GHG emissions. The government has already taken action on two of Canada’s largest sources of GHG emissions—transportation and electricity. Regulations for passenger vehicles and light trucks are already achieving GHG reductions and, along with regulations for heavy-duty vehicles and coal-fired electricity will yield further results in the coming years. The federal government is currently developing additional regulatory measures that will establish more stringent standards in the transportation sector for heavy-duty vehicles of post-2018 model years; gradually phase down use of hydrofluorcarbons; reduce GHG emissions from natural gas-fired electricity, as well as from chemicals and nitrogen fertilizers; and, reduce methane emissions from the oil and gas sector.

Canada’s regulatory approach is aligned with that of the United States, where appropriate, recognizing the importance of cooperative action in an integrated North American marketplace.

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