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Building Technologies Seminar Chicago, IL June 24, 2009

Canada: A World Leader in Supplying Legal & Sustainable

Forest Products

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Overview

• FPAC & Canadian Context

• Key Issues – Harvesting Legally– Regenerating Promptly– Reducing Waste, Increasing Recovery & Recycling– Reducing Greenhouse Gases– Welcoming Independent Scrutiny

• Way Forward

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FPAC & Canadian Context

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FPAC Members

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FPAC Overview

MandateVoice of the Canadian Forest Industry on public policy issues at the

national & international levels

VisionA leader in advancing the global competitiveness

& Sustainable Stewardship of the Canadian Forest Products Industry

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FPAC Sustainability Initiative

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Source: FAO

Forest Products Exports (2006)

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Canada’s Export Markets (2008)

Source: Statistics Canada

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Canada’s Forest Regions

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More than half of Canada’s forest area consist of large intact landscape

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Total Forest Area (Millions of acres)

Global Forest Resources Assessment 2005 (FAO 2006a)

167

170

219

330

404

488

749

766

1,180

1,999

0 500 1000 1500 2000 2500

India

Peru

Indonesia

Democratic Republic of the Congo

Australia

China

United States of America

Canada

Brazil

Russian Federation

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Ownership of Canadian Forests

6%

71%

23%

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Federal Government

Provincial Government

425,000 Private Landowners

Source: Canadian Forest Service, State of Canada’s Forests

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Forest Management Planning and Regulation

• Federal government has indirect responsibilities

– Federal land

– Science

– National Policy & Legislation (fisheries, migratory birds, species at risk)

– International agreements

• Provincial governments have jurisdiction over forest management

– Long term tenures (forest area or volume)

– Comprehensive legislation conditions

– 20-25 year forest management plans

– Rolling 5 year development plans and site specific annual operational plans

– All forest management plans subject to public review prior to approval.

CCFM 2006b, NRCan 1997a

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• Protected areas

• Species at Risk

• Certification

• Riparian Protection

• Clearcutting

• Road Construction

• Reforestation

• Allowable harvest

How do Canadian Regulations Compare?

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Large Natural Disturbances Drive Boreal Ecosystem

Fire & insects account for 80% of boreal disturbance

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Forest disturbances in Canada (1975-2006 )

Compendium of Canadian Forestry Statistics

He

cta

res

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Continual Improvement in Forest Practices

• Ecologically-based forest management

• Harvesting practices reflect the natural evolution of the forest, new scientific information & evolving societal values

• Harvested areas have different sizes and shapes to reflect natural dynamics

• Allowance for wildlife habitat conservation & needs of other users

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Sustainable Forest Management

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Key Issues

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Defining A Sustainable Forest Products Supplier

Responsible suppliers should embrace the following 5 principles:

1. Harvest Legally

2. Regenerate Promptly

3. Reduce Waste & Increase Recycling and Recovery

4. Reduce Greenhouse Gases

5. Welcome Independent Scrutiny

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2222

Note: Size of bubbles represents volume of suspect roundwood, including imports.

Source: Seneca Creek Associates and Wood Resources International 2004

Harvest legally

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FPAC Commitment → Certification (2002)“All FPAC members with woodlands operations in Canada are committed top achieve third-party sustainable forest management certification on those woodland by December 31, 2006.”

Every certification schemes requires legal compliance:– CSA: General Requirement a: compliance with relevant

legislation on the defined forest area.– FSC: Principle #1: Compliance with Laws and FSC

Principles.– SFI: Principle #8: Legal Compliance.

1. Harvest legally

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2. Regenerate promptly

Less than 1% of Canada’s total forest area is harvested annually.

NRCan 2001a, CCFM 2006d, National Forestry Database 2008f

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2. Regenerate promptly

• All harvested areas, by law, must be regenerated (NRCan 2008d).

• “ … recent regeneration efforts have been highly successful” (CCFM 2006d: 69).

• Around 650 millions seedling planted each year (National Forestry Database 2008f).

Regeneration Method(Source: NRCan 2008d)

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Deforestation – 20% of GHGs (IPCC)

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Reduce Waste & Increase Recycling & Recovery

Reduce Waste & Increase Recycling & Recovery

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Canadian Recovery Rates 1990-2008

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In 2003, members committed to increase recovery rate to 55% by 2012

64.6%

Source: PPPC

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• Percentage of harvested fibre that is converted into useful products increased from 61% in 1970 to almost 90% in 2006

• Remaining 10% (bark and wood-waste residue from solid wood processing and pulping processes) is to a large extent being used as biomass fuel.

Increasing Resource Efficiency

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Carbon Neutrality

“Forest Industry carbon-neutrality by 2015 without the purchase of carbon offset

credits”

October 31st 2007

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Forest Sector GHG Emissions and Energy use

• GHG emissions in 2002 were unchanged from 1980.• 23% increase in energy use

Source: CCFM 2006d

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Forest Sector Energy Sources

• Greater reliance on cleaner fuels

Source: CCFM 2006d

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0

20

40

60

80

100

120

140

160

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

mil

lio

ns

of h

ecta

res

cert

ifie

d

End of year

SFM Certification in Canada 1999-2009

CSA SFI FSC

0.6

9.717

32

50

110

85

131138

146 *

83

27

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2008 Year-end

Source: Metafore's Forest Certification Resource Center, www.certifiedwood.org

* Double counting of areas certif ied to more than one standard has been removed from this figure.

Source: Metafore 2009

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Canadian Certification in the Global Context

~10% of world’s forests are certifiedCanada = 40% of all world’s certified forests

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102.8

200.0

27.3

122.1

0

50

100

150

200

250

FSC PEFC

Source: Metafore's Forest Certification Resource Center, www.certifiedwood.org

2008 Year-end

Canada's Contribution to International Programs

Worldwide Worldwide In CanadaIn Canada

FSC International PEFC

FSC Canada (Endorsed under FSC

International)

CSA & SFI (Endorsed

under PEFC)

Source: Metafore 2009

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Open & Transparent Approach: Tours

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Way Forward

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A Sustainable Supplier: FPAC Commitments

Certification (2002)– All FPAC members with woodlands operations in Canada are committed to achieve third-party sustainable forest

management certification on those woodlands by December 31, 2006.

Sustainability Initiative (2005)– SFM Principle: “ Practice sustainable forest management in all our operations in accordance with recognized standards &

ensure that wood supply is from legal sources.”

Illegal Logging (2006)– …”Purchasing and using wood coming only from legal sources, and firmly condemning corruption and criminal

activities related to illegal logging.

Traceability (2006)FPAC members commit to tracing their fibre supplies back to the forest area of origin, by the end of 2008, to assure

customers that the wood fibre they are using comes from legal sources.

New Allocation (2006)– Planning for conservation of ecological and cultural values prior to new forest tenures in unallocated parts of

Canada’s boreal forest

Carbon-neutrality (2007)– By 2015 without the purchase of carbon offset credits

• \

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Green Procurement

• Public & Private Policies• Procurement• Lending• Green Building

• Proactive & Reactive• Monitoring • Networking• Use third party (PWC) • Create synergies with like-minded orgs

• Position/Data Development• Inclusiveness (certification)• Life Cycle Assessments

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Tools for Customers

Responsible Purchasing: www.fpac.ca

Forest Products Market Monitoring Hub

Fact Sheets on Key Market Issues– Boreal Forest– Certification– Climate Change– Green Procurement/Financing– Harvesting Methods– Illegal Logging– Old Growth– Recycling– Water Quality– Woodland Caribou– Air Quality

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Publications

Available in:

EnglishFrenchItalianSpanishGermanKoreanJapaneseChinese

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Life cycle assessment shows wood is a good choice

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Way Forward

• Harvest Legally• Regenerate Promptly• Reduce Waste,

Increase Recovery & Recycling

• Reduce Greenhouse Gases

• Welcome Independent Scrutiny

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FPAC Members