1. Effect of Climate Change on Canada’s Forests and Rural Communities Senate Standing Committee on Agriculture & Forestry Avrim Lazar President & CEO Forest Products Association of Canada February, 2002

2. FPAC Overview FPAC is the voice of Canada's wood, pulp, & paper producers nationally and internationally FPAC member companies operate in 350 rural communities and 1200 communities overall 1 million Canadians depend upon the forest industry for their livelihood

3. FPAC Overview FPAC member companies together have responsibility for 75% of Canada's working forests Third-party certification of our companies' forest practices are a condition of membership in the association, a world first

4. Key FPAC Comments 1.Climate change is a real issue that needs to be addressed 2.Concerned about impacts on forests and the communities that depend upon them 3.Policy emphasis to date has been on mitigation while focus on impact and adaptation has been minimal

5. FPAC & Climate Change FPAC members are managers of carbon –Core of our business –From planting trees to suppressing fires to carbon stored in our solid wood products High industry and rural community exposure to impacts of climate change

6. FPAC Members Track Record Have acted early on a serious global problem –1 tonne product generates 38% less CO2 than in 1990 –Total ghg emissions reduced by 26% while at the same time we have grown our production by over 20% Mitigation activities have focused on: –Energy efficiency & conservation –Fuel switching to less carbon intensive and/or greenhouse gas neutral fuels (biomass) –Extensive recycling of post-consumer paper

7. Actual to 2001; maintain 2001 level to 2010; Source: EC National GHG Inventory; Statistics Canada; CIEEDAC; FPAC -26 -6 Pulp and Paper Emissions vs. Kyoto Target (Percentage of 1990 Emissions)

8. Forest Carbon Management Forests offer opportunities to mitigate climate change –CO2 sequestration of healthy growing forests –Ecological services (water and soil conservation) –Climate stabilization Forest Products –Storage in forest products pool Sustainable forest management –Forest regeneration –Intensive silviculture –Fire prevention –Insect and disease management –Soil conservation

9. Potential Impacts on Forests Insect and disease infestation –No natural defence in native ecosystems –Expansion of pest range Biodiversity impacts –Changing ecosystems, eco-regions –Introduction of exotic and invasive species Increased forest fire disturbance –Frequency, intensity and duration Shifting tree species distribution –Forest ecosystems turn to Grasslands –Impact on tree improvement programs –Difficult regeneration of drought-intolerant species

10. Potential Impact on Communities Dramatic climate events –Natural disasters impacting our communities Change or loss of traditional activities –Hunting, fishing, tourism Restructuring of rural economies – Job impacts – Tax implications for governments

11. Potential Impact on Industry Decreased fibre supply –Growth and yield changes –Loss of fibre to natural disturbance –No return on past tree improvement investments Increased operational costs –Forest protection costs Insects, disease, fire –Harvesting and transportation period –Regeneration difficulties –Inventory management –Water supply –Technology re-tooling

12. Adaptation Strategies Understand nature, extent and rate of climate change impacts on forest resource Increase adaptive management activities in forestry and manufacturing operations Maximize mitigation opportunities in both forests & manufacturing

13. Recommendations Collaborative research into climate change impacts and mitigation measures –Studies to determine response of ecosystems to climate change (eg. forest stands and species distribution) Forest ecosystem monitoring ( early warning ) –Natural disturbances –Forest productivity –Exotic species National forest inventory system –Understand baseline –Track changes Afforestation –Forest 2020