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Arbor Resources Blog Updates

​Chinese imports of softwood and hardwood wood products will be
significantly altered in 2022 if Russia’s log export ban is implemented
China is the world’s largest importer of softwood and hardwood logs, and for many decades,
Russia has been a significant log supplier for them. This relationship may change in 2022
if Russia implements their proposed ban on exports of softwood logs and valuable
hardwood logs, while also introducing export taxes on green lumber. All these policy
changes are designed to encourage increased domestic production of higher-valued forest
products.
The Russian parliament has not yet announced the final legislative proclamation, so it is
not clear if there will be a complete or phased-in ban, a significant export tax, or even the
possibility of a state-owned export monopoly. However, a signal has been sent to the
marketplace that Russia will no longer be a major supplier of softwood and hardwood logs.
One consequence of this decision is that Chinese wood manufacturers will need to explore
new long-term log supply regions.
In 2020, China imported almost 6.5 million m3 of logs from Russia, predominantly
softwood species. The trade was substantially less than in any year during the past two
decades. Nevertheless, Russia was still the largest supplier of hardwood logs to China in
2020 (more prominent than any other source of temperate or tropical logs) and the thirdlargest
supplier of softwood logs.
It is crucial to keep in mind that China has shifted from sourcing logs from Russia to
European suppliers the past few years as insect-infested timber in Central Europe has been
in temporary abundance. From 2018 to 2020, softwood log imports from Europe increased
from 1.3 million m3 to 12.3 million m3, while Russian-supplied logs fell from 7.8 million
m3 to 4.2 million m3. However, shipments from Europe are not sustainable long-term.
According to the just-released study by the consulting firms Wood Resources International
and O’Kelly Acumen (Russian Log Export Ban in 2022 - Implications for the Global
Forest Industry), China is expected to source more sawlogs from Oceania, Europe, and the
US short-term. Longer-term, the study anticipates that China is likely to shift further from
WRI Market Insights 2021
- a subscription service from Wood Resources International
Global Sawlog Markets
Wood Resources
International
importing logs to lumber, thus creating opportunities for lumber manufacturers, mainly in
Europe and Russia, to increase shipments to this growing market.
The excerpt above is from the just-released Focus Report “Russia Log Export Ban in 2022 –
Implications to the Global Forest Industry”, published by Wood Resources International LLC
and O’Kelly Acumen. For more information about the study or to inquire about purchasing the
60-page report in easy-to-read slide format, please contact either Hakan Ekstrom
(hakan@woodprices.com) or Glen O’Kelly (glen.okelly@okelly.se). A Table of Contents of the
report is available on our website. Click here!
Contact Information
Wood Resources International LLC
Hakan Ekstrom, Seattle, USA
info@WoodPrices.com

ETS forestry improvements unveiled

14/12/2018

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​New Zealand’s Forestry Minister Shane Jones announced this week the first set of improvements to the Emissions Trading Scheme (ETS) – the country’s main tool for reducing greenhouse gas emissions – following extensive public consultation. 

“The ETS should be able to deliver effective emissions pricing, be simple and credible to encourage new forests and discourage deforestation” Shane Jones said. “Cabinet has approved the first set of improvements, which includes the addition of permanent forests to the scheme. This will provide more incentives for landowners to integrate trees into their landscapes, enable them to them to diversify their income while also providing long-term environmental benefits”. 

“We’re making good on our promise to encourage more forestry and make better use of land, especially on erosion-prone land. By establishing a permanent forest, with indigenous or exotic species, land owners will be able to better optimise their non-productive agricultural land and enjoy income from the sale of New Zealand units, while also increasing biodiversity and reducing erosion. 

“Other changes are geared towards helping reduce both complexity and the barriers to forest owners being part of the ETS. These provide a solid foundation for future planting efforts, which could see us double the number of trees planted. 

“We’ve listened to extensive feedback, and I think forest owners, businesses and landowners will welcome these changes, which will come into effect after the final round of ETS improvements have been made next year. 

“We have also consulted on a new accounting option for post-1989 forests in the ETS – known as averaging. Cabinet will consider this and other improvements early next year,” Shane Jones said. 

Notes:

- A new permanent post-1989 forestry activity within the ETS will replace the current Permanent Forestry Sink Initiative. 

- Currently it’s not possible to enter a post-1989 forest as a permanent forest in the ETS, even if it will never be harvested. 

- The changes will not come into effect until the amendments to the Climate Change Response Act 2002 go through Parliament. 

- Current participants in the PFSI will not be adversely affected by the conversion of the PFSI into the new Permanent Forestry activity within the ETS. Te Uru Rakau will be in contact with these landowners to advise them about their options, including to support their transfer into the ETS. 

- The operational improvements will remove barriers to participation and compliance. Changes to offsetting and tree weed provisions will increase land-use flexibility while ensuring that the ETS supports afforestation and discourages deforestation. 

- The changes also address a long-standing issue which relates to multiply-owned Maori land and the challenges they face accessing exemptions from pre-1990 deforestation liabilities.
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    Author
    ​FRANK T DAVIS 

    A SURLY AND CYNICAL OLD CURMUDGEON WITH A JAUNDICED VIEW OF THE POLITICAL ELITE .

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