1 Building Technologies Seminar Chicago, IL June 24, 2009 Canada: A World Leader in Supplying Legal & Sustainable Forest Products

2 Overview FPAC & Canadian Context Key Issues –Harvesting Legally –Regenerating Promptly –Reducing Waste, Increasing Recovery & Recycling –Reducing Greenhouse Gases –Welcoming Independent Scrutiny Way Forward 2

3 FPAC & Canadian Context

4 FPAC Members

5 FPAC Overview Mandate Voice of the Canadian Forest Industry on public policy issues at the national & international levels Vision A leader in advancing the global competitiveness & Sustainable Stewardship of the Canadian Forest Products Industry 5

6 FPAC Sustainability Initiative 6

7 Source: FAO Forest Products Exports (2006)

8 Canada’s Export Markets (2008) Source: Statistics Canada

9 Canada’s Forest Regions

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

11 Total Forest Area (Millions of acres) Global Forest Resources Assessment 2005 (FAO 2006a)

12 Ownership of Canadian Forests 12 Federal Government Provincial Government 425,000 Private Landowners Source: Canadian Forest Service, State of Canada’s Forests

13 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

14 Protected areas Species at Risk Certification Riparian Protection Clearcutting Road Construction Reforestation Allowable harvest How do Canadian Regulations Compare?

15 Large Natural Disturbances Drive Boreal Ecosystem Fire & insects account for 80% of boreal disturbance

16 Forest disturbances in Canada ( ) Compendium of Canadian Forestry Statistics Hectares

17 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 17

18 Sustainable Forest Management

19 Key Issues

20 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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22 Note: Size of bubbles represents volume of suspect roundwood, including imports. Source: Seneca Creek Associates and Wood Resources International 2004 Harvest legally

23 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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25 2. Regenerate promptly Less than 1% of Canada’s total forest area is harvested annually. NRCan 2001a, CCFM 2006d, National Forestry Database 2008f

26 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)

27 Deforestation – 20% of GHGs (IPCC)

28 Reduce Waste & Increase Recycling & Recovery

29 Canadian Recovery Rates In 2003, members committed to increase recovery rate to 55% by % Source: PPPC

30 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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32 Carbon Neutrality “Forest Industry carbon-neutrality by 2015 without the purchase of carbon offset credits” October 31 st 2007

33 Forest Sector GHG Emissions and Energy use GHG emissions in 2002 were unchanged from % increase in energy use Source: CCFM 2006d

34 Forest Sector Energy Sources Greater reliance on cleaner fuels Source: CCFM 2006d

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36 Source: Metafore 2009

37 Canadian Certification in the Global Context ~10% of world’s forests are certified Canada = 40% of all world’s certified forests

38 Source: Metafore 2009

39 Open & Transparent Approach: Tours 39

40 Way Forward

41 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, 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 \ 41

42 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

43 Tools for Customers Responsible Purchasing: 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 43

44 Publications Available in: English French Italian Spanish German Korean Japanese Chinese

45 Life cycle assessment shows wood is a good choice

46 Way Forward Harvest Legally Regenerate Promptly Reduce Waste, Increase Recovery & Recycling Reduce Greenhouse Gases Welcome Independent Scrutiny 46

47 FPAC Members