FOREST TALK

Are ETS planting targets realistic?

IS THE CLIMATE CHANGE COMMISSION RISKING FOREST

planting rates by incentivising more production forestry than needed with the current Emissions Trading Scheme (ETS)? Many in the forestry sector think so.

The final recommendations from the Climate Change Commission were tabled in Parliament recently with Government producing an Emissions’ Reduction Plan later this year.

Farm Forestry Association President, Graham West, says he acknowledges the Commission still expects an additional 380,000 hectares of plantation forests to be planted in the next 15 years as a major means of offsetting greenhouse gas emissions from the rest of the economy.

But he says owners of farmland who are considering planting exotic woodlots may have second thoughts.

“Decision-making about the value of carbon when planting trees is complex enough as it is. Cashflow is a critical factor. Now farmers and forest investors will be looking at even more uncertainty, if carbon credits are under review,” he says.

“The government needs to note that the Commission itself says there is the risk of a perverse outcome of discouraging forest investment through changing the ETS.”

Forest Owners Association President, Phil Taylor, says the 380,000-hectare projection of exotic forests, to meet the Commission’s gas budget, was always going to be problematic to achieve, but even more so now.

“The net stocked area of New Zealand’s plantation forestry has fallen by 40,000 hectares in the past two years. That reduction isn’t a good basis to put the brakes on plantation planting within the next ten years.

“After more than a decade, the ETS has only just begun to work the way it’s meant to. That is to incentivise emissions reduction. It’s a strange time to pull it back.”

Mr Taylor says if the Commission doesn’t get the net emissions reduction it expects from forests over the next 30 years, then the government will have to force tougher and bigger cuts out of transport and agriculture.

He adds though, that he’s waiting to see how Government develops policies to implement the recommendations from the Commission.

“We are pleased the government already seems to have abandoned its ideas of trying to restrict planting forests on the better classes of land where a quarter of the current national estate is already growing.

“And it’s important to realise that the forest contribution to fighting climate change is not confined to the trees themselves, but the downstream use of timber and wood products. The Commission’s reference to forests’ role in ‘a thriving, low emissions bioeconomy’ is hugely important for environmental and economic reasons,” Mr Taylor says.

“Forestry Minister, Stuart Nash, has also made it clear that the government’s Wood First construction policy really means using timber construction wherever possible.” The recent announcement of a timber first strategy for government buildings will no doubt provide some incentive.

Mr West adds that there are also strongly positive features in the Commission’s report.

“The government has been asked to encourage ‘additional carbon storage in smaller blocks of trees on farms’. We hope to see that implemented with some sort of grants scheme.

“We have long advocated for policies which assist ‘mosaic’ landscapes of smaller forest blocks interspersed with other land use. This has been acknowledged.” NZL

Farm Forestry Association President, Graham West. Forest Owners Association President, Phil Taylor.

Nash donations raise uncomfortable questions

SOME $50,000 IN MONEY DONATIONS FOR

last year’s election to Forestry Minister Stuart Nash include at least half from players in the forestry and regional development field.

Some are calling on Mr Nash to return the money even if he did take the donations in good faith.

A spokesperson for Mr Nash says: “After the election the Cabinet Minister met with the Cabinet Office to discuss a range of interests and the management of any possible areas of conflict. The Minister continues to ensure that no conflict exists or appears to exist between his personal interests and his portfolio responsibilities, in accordance with the guidance in the Cabinet Manual.”

His acceptance and disclosure of the donations comply with laws around campaign finance, but critics say it is nonetheless ethically worrying.

Over 16 days in September 2020, he received: $5000 from Andrew Kelly, formerly Managing Director of Lumber Link and a range of other forestry and timber companies; $9503.80 from Tenon, a Taupobased timber company; and $5000 from Red Stag, Rotorua-based timber processing company. Mr Nash’s spokesperson adds: “Minister Nash has an extensive network of contacts in the forestry sector since first graduating from the University of Canterbury with a forestry qualification in 1993.” NZL

Timber first for public projects says Government

Forestry Minister, Stuart Nash.

GOVERNMENT AGENCIES ARE

getting new support to reduce carbon emissions generated by construction of new buildings, with the release of practical guidance to shape decisions on public projects – essentially Timber First for Government.

The Ministers for Building and Construction and for Economic Development and Forestry say the Procurement Guide will help government agencies, private sector suppliers, designers, and construction and industry representatives to make the right decisions.

The advice in the Guide is aligned with the aims of the Building for Climate Change programme, to lower emissions in the construction sector and prepare buildings for the future effects of climate change

“I have long been a champion of greater use of low-carbon materials like timber in building and construction projects, and want that embedded in decision-making and design thinking across the wider public sector,” says Forestry Minister Stuart Nash.

Agencies that are required to apply Government Procurement Rules must now apply the Procurement Guide to decisions about new buildings with an estimated value of $9 million or more.

Government agencies must now clearly record decisions about the way they choose design options. If they choose a design that is not the lowest possible carbon option to meet their project brief they must identify the reason for this, and have the decision signed off by their Chief Executive.

The Guide is in line with the recommendations of the Climate Change Commission’s final report. It is a first step and will be modified and updated over time. NZL

It’s all about biodiversity

A NEW INTERNATIONAL REPORT SAYS TREATING CLIMATE,

biodiversity and human society as coupled systems will be key to successfully mitigate the effects of climate change.

The international report on Biodiversity and Climate change co-sponsored by IPBES (the 137 nation biodiversity policy platform of the United Nations) and IPCC (the United Nations Intergovernmental Panel on Climate Change) says connecting the climate and biodiversity spheres is especially crucial at this moment when the world seems to be gearing up for stronger actions on both.

“The scientific community has been working for some time on the synergies and trade-offs between climate and biodiversity. Achieving the scale and scope of transformative change needed to meet the goals of the UNFCCC and CBD and the Sustainable Development Goals will need to rely on rapid and far-reaching actions of a type never before attempted,” the report warns.

A key finding of the report is that limiting global warming to ensure a habitable climate and protecting biodiversity are mutually supporting goals.

It has been shown that several land- and ocean-based actions to protect, manage and restore ecosystems simultaneously support climate mitigation, climate adaptation and biodiversity objectives, with multiple contributions to people’s quality of life. These are often referred to as nature-based solutions (NbS).

These include avoiding and reversing the loss and degradation of carbon- and species-rich ecosystems on land (e.g. indigenous forests) and in the ocean.

Sustainable agricultural and forestry practices can improve adaptive capacity, enhance biodiversity, increase carbon storage in farmland and forest soils and vegetation, and reduce greenhouse gas emissions, says the report.

Increasing sustainable agricultural and forestry practices was one of the key actions identified to achieve these aims. This includes measures such as diversification of planted crop and forest species, agroforestry and agroecology. NZL

Demonstrating select felling in continuous cover forest harvesting

Story: Jim Childerstone All the logs in this image were harvested as single trees from the standing forest within 150m of the truck.

WHAT’S THE POTENTIAL OF PERMANENT

carbon forests allowing select stem harvest as an added income under a continuous management system?

This is being ably demonstrated by John Wardle on the family’s 121 hectare Mount Oxford foothill property, ‘Brookside’.

The property includes a mix of native black beech and exotic conifers of which 27ha had been planted in p radiata back in the 1970s.

This has been select-felled over a period totalling 10 sessions of single stem extraction.

And in March this year roughly 40 tonnes of logs per hectare were harvested from a 5.7ha plot totalling 228 tonnes.

This was described by John as one tree out of 10 being felled and processed.

So what are the returns for the Wardle family who have been involved in tree growing and management for more than 50 years?

John reports this system has yielded a $1400 per hectare, per year net income in recent harvests.

To achieve this, a number of crucial factors needed to be taken into consideration.

For a start, only trees measuring 60cm DBH are selected for felling after reaching 30 meters in height.

John Wardle, although 85 years old, undertakes this job.

The woodlot has been pruned to 6 metres, allowing natural regenerating stock to be tended during the growth periods.

But it’s the way the trees are felled and removed that proves to be the most critical exercise, John explains.

A specialist two-man, three-machine logging crew, Curle Logging with Brad Watson and Richard Pierson, takes on the job, essentially a ground-based operation.

This includes a 20-tonne excavator with grapple head, a skidder winch and stationary de-limber on the skid site.

The area is well tracked so that trees are carefully felled manually with minimum damage to growing stock within easy reach of hauler lines.

Whole trees are pulled through the delimber at the landing/loading area.

On an average day John says the crew can handle up to 70 tonnes onto stacks, yielding up to five cuts per stem.

John says only a small percentage of S30, less than 10%, were sold as export, the rest, mostly P and A grades, were sold to local mills.

Apart from a bee-keeping enterprise, the Wardle’s regularly harvest black beech on parts of the remaining property under a similar select stem system.

This was reported by the writer nearly 15 years ago during a field day, including Green Party members who were suitably impressed.

This is carried out through the Sustainable Harvest permit under the 1993 Amendment to the Forestry Act allowing single and small groups of trees to be felled (select stem and coup systems).

John explains this yields a further $700/ha annually with a big emphasis on conservation values, actively promoting improved habitat for indigenous birds, reptiles and invertebrates.

These efforts earned the Wardle property an Open Space Covenant by the QE2 Trust in 2008.

Retired forestry researcher Nick Ledgard, ex Canterbury University Forestry School and Scion Research congratulated the Wardle’s on their efforts after a recent visit.

Contacted by NZ Logger, he says this system indicates possible limits on clearfell harvesting of plantation forests, eliminating “risks associated with enviromental damage, soil-diversity losses and very obvious visual impacts – all of which attract negative attention from the public”.

“The obvious alternative is continuous cover forestry, but the industry tells us that this is not economic for them. The Wardle’s are demonstrating that this does not have to be the case.”

It is on the cards that with increased prices for logs in the domestic market the Wardle family could bank on even better returns.

This must also beg the question, can permanent carbon forests being established in various parts of the country not incorporate similar systems?

The New Zealand Forest Owner’s Association’s (NZFOA) Phil Taylor, says the NZFOA has only considered a very high level view/policy on permanent carbon forestry. “Our position is that this method is an acceptable approach for sequestering carbon in forests, provided it does not occur on land that might be otherwise used for productive uses – be it forests with harvesting (of any type as long as the harvest is material) or any other primary productive use eg, sheep and beef farming.

“To the extent that you can manage permanent carbon forests with production, all be it not clearfelling, this would be consistent with the FOA position.”

The ETS also provides for production from “Permanent Forests” provided at least 30% of crown cover is maintained at all times, he adds.

This thus appears to be consistent with the FOA position and the ETS regulations, he says, adding that it begs the question whether it is practical to achieve on a significant enough scale to make it qualify as “mainstream forestry”.

For more on biodiversity and ETS targets turn to the coverage of the Carbon Forestry conference on page 14. NZL

To date there have been 10 harvests from this continuous cover forest. The current harvest will remove just three trees (all 60cm+ DBH) from amongst those in the image.

Reprieve for some...

Whakatāne’s packaging mill has been thrown a lifeline.

WHAKATĀNE’S PACKAGING MILL HAS BEEN THROWN A LIFELINE

by a consortium of local and European private equity investors.

As one of the Bay of Plenty town’s biggest employers, the deal (no valuation has been disclosed) will save jobs. The statement announcing the deal said the mill would stop producing packaging for liquid products – essentially paper-based drink packaging – and concentrate on “high quality folding box board, carrier board and food service board, all of which are currently manufactured at the mill”.

The new owners intended to invest heavily in the plant to make it “a more competitive operation to support customers in New Zealand and around the world,” says Ian Halliday, who will become Chairman of Whakatāne Mill.

The consortium is led by London-based Dermot Smurfit, along with Swiss-based investor Raymond Alan Dargan and involves Aucklandbased Ross George, a founder of Auckland-based private equity firm, Direct Capital. Dermot and Ross are listed as 33% shareholders of Power Paperboard, a company recently registered in New Zealand.

Meanwhile, workers at Norske Skog’s Tasman Mill now know for sure they’ll be losing their jobs. The mill stopped production at the end of June, with most taking redundancy this month as a clean-up is completed at the site.

The closure affects about 160 workers, including more than 30 E tū members who work in maintenance.

“There’s a strong sense of mourning that the mill is shutting down – it’s been a big part of the town’s history for several generations and is the reason Kawerau township was built in the first place,” says E tū industry spokesperson Bruce Habgood.

“While the mill now isn’t the huge employer it used to be, there are many other businesses that were created to support it – and they may really suffer ‘death by a thousand cuts’ once the mill is gone.”

Eric Luck, Norske Skog’s Regional President, says the ongoing secular decline of the newsprint industry was the key reason for the decision.

“It’s the end of an era, but the structural change in the newsprint industry provided no viable alternative for paper production at Tasman.

“The domestic market for newsprint has shrunk considerably and so too have export markets. COVID-19 has hastened the decline.

“Unfortunately this closure is a reflection of the challenges that our industry has faced.”

The Tasman Mill commenced newsprint production in 1955 and produced more than 15 million tonnes of paper during its 66-year history.

He says Norske Skog will work to conclude the sale process of the mill’s assets as quickly as possible.

Mr Habgood adds that the closure highlights the importance of workers being unionised, so that they have access to collective agreements that contain redundancy provisions and protections.

“Some of the workers at the mill are of an age and skillset that means they aren’t so employable anymore and might never work again. We also really need businesses to have their own transition plans going forward so that workers have choices and alternatives.”

E tū organiser, Raymond Wheeler, says E tū will also be discussing reskilling and training opportunities for all mill workers.

Having a ‘Just Transition’ plan in place is crucial to ensuring workers have a future when businesses close, and this includes provisions such as social insurance as the Government proposed in Budget 2021, he says.

“A Just Transition is vital, both now and for future generations to come, and is a concept which the Climate Change Commission has recognised is key in transitioning to a low-carbon future.

“We also need to continue to progress the Industry Transformation Plan (ITP) for the forestry and wood processing sector and see what can be done to bring more of the manufacturing supply chain back to Aotearoa New Zealand.” NZL

Australian forestry contractors struggle as last fire salvage wood goes

AUSTRALIAN FORESTRY CONTRACTORS MAY HAVE DELIVERED

their last load of fire-salvaged wood to the Hyne Mill at Tumbarumba, but for forest contracting businesses and their workers, there is no cause for celebration.

“These businesses need urgent support and assistance to service their business debts, with equipment that no longer has a use or can be sold in support of their workers,” says Australian Forest Contractors Association (AFCA) General Manager, Stacey Gardiner.

“The forestry industry and governments have known this resource cliff has been coming since the bushfires. While there has been support and grants made available to the industry to support bushfire recovery, very little to none of this has reached forest contracting businesses,” she adds.

Forest contracting businesses face a significant reduction in contract quotas in plantation resource in the South West Slopes region. The Forestry Corporation of New South Wales has cancelled contracts with forest contracting businesses. New contracts were recently awarded based on reduced volumes which have left many businesses with reduced or no future work, and significant exposure with large debts unable to be paid.

“The resource reduction is expected to result in over 50 direct forest contracting workers being laid off by year-end. This includes those that worked tirelessly to harvest and haul the salvaged wood to the mills. The indirect impact on the region, businesses and jobs will be significant,” Ms Gardiner adds.

The New South Wales South West Slopes forestry region around Tumut and Tumbarumba was hit particularly hard by the bushfires with around 45,000 hectares of softwood plantations (about 40% of the area planted) burnt.

Unfortunately, over half the burnt trees in the fire-affected region were too young to save, with the salvage focus on getting all the trees older than 19 years and as much as possible of those over 12 years.

All up, around 2.7 million tonnes of timber has been salvaged in the Tumut/Tumbarumba region.

Work is also well underway to regenerate the forests damaged during the blazes with 4,500 hectares replanted last year and another 7,000 hectares on track for this year. NZL

Oil and logs up and rising

PRICES FOR OIL AND LOGS ROSE SHARPLY

in the March 2021 quarter, while import and export prices continued to fall overall, says Stats New Zealand.

Export prices for forestry products rose 7.0% in the March 2021 quarter. Within that category, prices for wood exports rose 9.1% over the quarter to reach the highest prices on record, slightly exceeding the previous peak in the June 2020 quarter.

“Strong international demand for logs, especially from China, continues to drive up prices for New Zealand wood,” says Business Prices Delivery Manager, Bryan Downes.

Overall, overseas trade index (OTI) import and export prices both fell 0.8% in the quarter to March 2021. Prices remained well below those recorded a year ago, with annual falls of 6.3% for imports and 7.2% for exports.

Terms of trade rose 0.1% in the March 2021 quarter but remained down 0.9% annually. The terms of trade measures the purchasing power of New Zealand’s exports abroad and is an indicator of the overall state of the economy. A rise in the terms of trade means New Zealand can buy more imports for the same amount of exports.

Falling import prices were led by electrical machinery and apparatus, down 6.1% on the quarter, while falling export prices reflected price decreases for dairy products (down 2.4%) and meat (down 1.5%).

“Although commentators are predicting rising inflation as the global economy recovers from the COVID-19 pandemic, we’re not yet seeing that reflected in our headline OTI figures,” says Mr Downes.

“Instead, we’ve seen modest declines across most goods categories, offset by strong growth in prices for particular commodities, including oil and logs.”

Import prices for petroleum and petroleum products rose 13.8% in the March 2021 quarter, as COVID-19 restrictions have eased around the world. However, prices remain well below pre-COVID-19 levels, down 30.3% in the year to the March 2021 quarter.

“The recovery in oil prices, globally, reflects increasing demand as economies emerge from lockdowns and travel restrictions, as well as tightening supply due to reduced oil production,” Mr Downes says.

Services import prices rose 12.0% while export prices fell 0.4% in the March 2021 quarter, leading to an 11.1% fall in the services terms of trade.

The increase in import prices was carried by a 52.2% increase for transportation services – setting new records for the largest quarterly increase and highest levels since the series began.

“The dramatic rise in import prices for transportation services reflects increased costs for sea transport,” Mr Downes says. “Container shortages, port congestion, and increasing demand for consumer goods has led to increased shipping costs around the world.” NZL

Wood Engineering Technology’s current production site and greenfield for expansion.

New Zealand innovation at its best

WOOD ENGINEERING TECHNOLOGY HAS OPENED ITS OPTIMISED

Engineered Lumber (OEL) production line in Gisborne. The plant is the only one of its type in the world and the company’s breakthrough product, OEL, is one of only seven engineered lumber products ever commercialised.

Speaking at the opening, Wood Engineering Technology Chair, Angus Fletcher, said, “This is the biggest development in wood processing in over 30 years. But more importantly OEL is helping New Zealand address its biggest challenges – climate change, productivity, regional development, and the need for higher density housing.

“For years New Zealand has been talking about moving up the value chain to improve our productivity in the primary industries. Our disruptive technology turns unprocessed logs, that would have otherwise been sent overseas, into an innovative high value product. And it does it in a fully automated, artificially intelligent, robotic factory in less than 12 hours while creating skilled, higher paid jobs in our regions. New Zealand innovation at its best.”

Opened by Forestry Minister, Stuart Nash, he also highlighted the construction of Wood Engineering Technology’s second OEL production line. When complete the Gisborne location will have six production lines, producing up to 140,000 cubic meters of OEL, and employing over 130 people.

“OEL is 40% stronger than structural lumber. This, and its guaranteed consistency, creates opportunities for wood-only, higher density, multi-storey residential buildings. OEL is an affordable zero carbon substitute for concrete and steel in building and construction. We are getting a lot of interest from those involved in providing social housing.

“The environmental credentials also stand out. Our research shows that one cubic metre of OEL has absorbed over 900kg of CO2 from the atmosphere, while the same volume of concrete releases over 400kg of CO2 into the atmosphere. OEL is produced in a Net Zero Energy plant and can play a leading role in helping to decarbonise our built environment.

“It also addresses the New Zealand productivity issue. OEL adds 300% to the value of an unprocessed log and has a productivity of greater than $500 per worked hour. The New Zealand average is only $68 per hour worked. Our little plant in Gisborne is certainly punching above its weight.

“After 16 years in development, we would not be here today without the support of our partners and funders. Specifically, I must thank the Government’s Provincial Growth Fund, Technology NZ, Callaghan Innovation, Scion and Trust Tairawhiti.” NZL

Forestry Minister Stuart Nash (right), with Taha Rakau Stuart, Rongowhakaata Poutikanga, turning the sod on Wood Engineering Technology’s second OEL production line in Gisborne.

Forestry champions toasted

Skilled Professional of the Year, Ben McArthur (right), with the Chairman of the Eastland Wood Council, Daniel Williams. Photo: Stephen Jones Photography.

THE FORESTRY INDUSTRY OF TE TAIRĀWHITI RECOGNISED THE

skill and expertise of the best across the industry at the recent 2021 Eastland Forestry Awards.

More than 60 entries were received across the 14 sections and in the end, it was Ben MacArthur from Speirs Logging who was crowned the Supreme Skilled Professional of the Year after earlier winning the award for Faller Mechanised or Manual Excellence.

Ben has been at the forefront of using certain machines and a key contributor to innovation and mechanisation on the East Coast. He started in the industry as a teenager and has worked his way up to be a respected foreman and high-skilled mentor and leader. Speirs Logging, known for its high production rates and focus on reducing environmental impact, also took the Crew of the Year crown.

Dan Gray from Forest Management Solutions was honoured for his outstanding health and safety commitment, and particularly for his drive to keep forestry drug-free.

Judges were most impressed to see an array of environmental initiatives underway throughout Te Tairāwhiti, but the award went to Forest Enterprises for its commitment to always putting the environment first.

Other awards included Jess Bourke from Logic Forest Solutions, who won the Emerging Leader prize, Aratu Forests’ Wayne Trafford for Outstanding Innovation Excellence, Kilioni Tuakalau from Vailea Silviculture for Forestry and Establishment Excellence, Grant Walker from Raywood Contracting as the Roading Civil Excellence winner, Mike Blazey from Stirling Logging for Harvesting Excellence, Kevin McKay from McKay Cartage for Cartage Excellence, Maria Jeffery from Stubbs Contracting for Woman in Forestry Excellence, Samantha Harrison from ISO Limited for Logistics Excellence and Hoana Materoa Rewi-Kurangi who won the Industry Support Services Award.

Judges, Ian Brown, Woodhill Consulting Managing Director, Alan Paulson, Managing Director of Tairāwhiti Timber Training, and Jeff Cornwell from Health and Safety New Zealand, faced a tough task to find just a single winner in many of the sections, saying they debated long and hard over most sections. “It is good to see we have a lot of skilled men and women out representing so many different parts of our industry,” says Alan. “The level of skills, training and caring is impressive.”

Long-time forestry and trucking stalwart, Dave Pardoe, was honoured for his passion and commitment to the industry after decades of work and, more recently, driving the Tairāwhiti Road Transport Training Trust where he is endeavouring to fill a critical need in the region.

Eastland Wood Council CEO, Philip Hope, remarked, “I would like to thank the sponsors and acknowledge all of the nominees, their families and colleagues for enhancing the reputation of the forestry industry in Tairāwhiti. We too are grateful for the leadership of the forestry companies and service providers who have supported the Council in recognising and celebrating excellence in our industry”.

MC for the evening for the awards, which were held at the Farmers Air Events Centre, was comedian and television show host, Jeremy Corbett.

Awards

• Skilled Professional of the Year (sponsored by Eastland Wood Council):

Ben MacArthur (Speirs Logging). • Emerging Leader (sponsored by Ernslaw): Jess Bourke (Logic Forest

Solutions). • Logistics Excellence (sponsored by Pacific Haulage): Samantha

Harrison (ISO). • Woman in Forestry (sponsored by Blackstump Logging): Maria Jeffery (Stubbs Contractors). Runner-up: Henrietta Raroa (Rewi Haulage

Logistics). • Outstanding Health and Safety (sponsored by ISO): Daniel Gray (Forest Management Solutions). • Industry Support (sponsored by FICA): Hoana Materoa Rewi-Kururangi (Rewi Haulage Logistics). • Forestry and Establishment Excellence (sponsored by Competenz):

Kilioni Tuakalau (Vailea Silviculture). • Faller Mechanised or Manual Excellence (sponsored by Forest

Enterprises): Ben MacArthur (Speirs Logging). Runner-up: Peter Oliver (Stubbs Contractors). • Harvesting Excellence (sponsored by Summit): Mike Blazey (Stirling

Logging). Runner-up: Izaac Davey (Lift Harvesting). • Cartage Excellence (sponsored by MITO): Kevin McKay (McKay

Cartage). Runner-up: Steven Kent (Pacific Haulage). • Crew of the Year (sponsored by UDC): Speirs Logging. Runner-up: Wild

Hog Logging. • Environmental Initiative Management (sponsored by Transdiesel):

Forest Enterprises. • Roading Civil (sponsored by Eastland Port): Grant Walker (Raywood

Contracting). • Outstanding Innovation Excellence (sponsored by JNL): Wayne Trafford (Aratu Forests).

Sponsors:

GOLD – UDC, ISO, Transdiesel, Ernslaw One, JNL, BDO, Forest Industry Contractors Association, Eastland Wood Council

SILVER – Aratu Forests, Competenz, Eastland Port, Summit, MITO, Forest Enterprises, Pacific Haulage, Te Uru Rakau – NZ Forest Service, WIDE Trust

BRONZE – Ngati Porou Forests, Universal Engineering, Bain & Sheppard, Shaw’s, Integrated Safety Solutions, Trimble, NZME, NZ Safety Blackwoods, Finance NZ, PF Olsen, The Gisborne Herald, Deals on Wheels NZL

New broom sweeps clean

IN OCTOBER 2020 THE FORESTRY AND

Wood Processing Workforce Council decided it required the services of a professional project manager to assist in gaining better traction with its initiatives. In January 2021 Nick Fahey was contracted for a period of six months to provide professional project management services for the Council. Nick has 20 years project management experience across the public, private and community sectors. The position is funded by a grant from the Forestry Growers Levy Trust.

Nick’s first task as Project Manager for the Council was to undertake a review of the initiatives the Council had scoped out since early 2020 and to make a set of recommendations about which best fitted the Council’s mandate under its Action Plan, and how these might be more effectively progressed. The Council has approved all of Nick’s recommendations and as a result has refocussed its efforts on four projects. These are: • Job Enrichment Through Mentors – General Skills Project: Designed to provide forestry trainees with a mentor-supported Unit Standard-based training programme that will extend their industry knowledge beyond simple task-based training to impart a more holistic understanding. A limited silviculture pilot to trial an App to support the programme is currently being developed. • The Leadership Programme – Lifting Capability Project: This programme has already been rolled out by the Forestry Industry Safety Council (FISC), through independent facilitators, to nearly 500 forestry workers and contractors and the programme development continues. This particular project aims to correct the perception that leadership skills are ‘soft’ skills rather than essential skills, and gain NZQA accreditation and, therefore, eligibility for TEC funding. In addition, it aims to capture knowledge of successful leadership training and capability building programmes, at all levels, within the forestry sector. • Forestry Employment Standards Project: Aims to achieve industry-wide agreement to adopt standards that support fair pay and working conditions, and encourage improvements in workplace employment practices that attract, appropriately remunerate, develop and retain a skilled, safe, and productive workforce. The project is currently in the process of gaining industry feedback on fair pay and working conditions, before shifting its focus to bringing parties together to develop a set of standards. • Assess Current Qualifications Project: A stocktake of current available vocational and tertiary education qualifications in forestry and wood processing has been created, and once its coverage is confirmed, the next steps will include gaining industry feedback for a gap analysis and providing a channel for the industry’s views on what is and is not working in workforce training. Consultation is underway with the newly established Food & Fibre Centre of Vocational Excellence (FFCoVE) to avoid duplication of effort and to ensure the project’s findings contribute to wider efforts in the vocational education sector. Project Manager, Nick Fahey.

In addition to clarifying aspects like scope and approach, and putting a rigorous project framework in place, a major part of refocusing these projects is gaining funding for those parts of the programme that currently lack this. The intention is that, over the next months, significant funding will be secured, and the Council will be able to more fully deliver on the transformational role for which it was established. Watch this space for updates.

The Forestry and Wood Processing Workforce Council was established in early 2020 to oversee the high-level Action Plan to develop workforce capability for the industry. It does this by working on projects to meet objectives in the Action Plan.

Find out about the Forestry and Wood Processing Workforce Action Plan 2020-2024 at: http://www.mpi.govt.nz/dmsdocument/40366Forestry-Wood-Processing-Workforce-ActionPlan-20202024. NZL

Felling and crosscutting made easy

THE NEW H423 FROM WARATAH FORESTRY EQUIPMENT IS

designed to carry out a wide range of harvesting jobs from early to late thinnings, and even light regeneration harvesting. With multi-tree-handling qualities, a compact frame design and a strong power-to-weight ratio, it is designed for fast and precise felling and crosscutting.

“The Waratah H423 provides fantastic performance in thinnings,” says Brent Fisher, Product Marketing Manager for Waratah. “Its short frame, fast feeding and optimal capacity position this model to make quick work of any thinning job that comes its way.”

Ideal for thinnings and other fellings where the tree diameter at breast height is 150-350mm (6-13 in.), the 955 kg (2,105 lb.) H423 features strong, fast feeding in a nimble design.

Additionally, the H423 boasts a 420mm (16.5 in) tip-to-tip delimbing diameter, providing ample range, and when combined with its 580mm (22.8 in) cutting capacity and optional multi-treehandling equipment, it offers productivity in varied diameter stands.

The H423 also hosts a variety of features that make it both reliable and easier to service – extending productive time.

This new model features next generation hose routing from the boom to harvester head and well protected hoses to the feed motors, making interference from understory or limbs a thing of the past. Likewise, serviceability to the main valve is easier and possible thanks to a new hinged valve cover and improved access to greasing points.

The Waratah H423 is currently available to customers in New Zealand, Europe, the United States, Canada, Australia, Russia, the Asia-Pacific and Latin America. NZL

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A changing landscape

CARBON FORESTRY 2021 LEFT

delegates with plenty to think on. One of the primary messages that emerged was a sense of how much there is still to learn and all the potential, challenges and scope that brings with it. Highlighted too was the danger in assuming too much or forecasting too precisely. We are, literally and metaphorically inhabiting a changing landscape.

This was made clear by keynote speaker, Chairperson of the Climate Change Commission, Dr Rod Carr, who kept delegates enthralled over zoom with his wealth of knowledge on the subject.

The Commission “is not all things climate change” he emphasised, rather taking an advisory role on policy to achieve statutory targets and the role New Zealand needs to play in this challenge “that belongs to the world”.

In helping New Zealand achieve and sustain net zero emissions, there are a range of likely scenarios or pathways to take, with forestry just one piece of the pie, encompassing agriculture, energy and other essential components, he said.

“Without forestry, New Zealand can’t achieve its domestic targets. With forestry come risks and opportunities. We must continue to plant exotic forests for carbon sequestration and to support the bioeconomy, which requires a substantial rate of planting that in turn offers challenges as well as business opportunities,” he said.

This requires a new set of skills, a more diverse range of trees, typically native and longer growing, so that we don’t just create carbon stores but hold our emissions past the 2050 deadline with forests acting as carbon sinks too, he explained.

The challenge is significant, needing to add some 20,000 hectares a year by 2025 alone and will require industry cooperation as well as government support in research, science and education, he added. In this way we can enlist those with the knowledge and skills to contribute to creating a legacy for our children rather than allowing the market to disenfranchise unborn generations.

That being said, we also need to protect our established carbon stocks and the impact of forests on communities needs to be understood and mitigated. Increased planting will create additional demands on forestry output too, all in all creating enormous demands as well as opportunities for the sector.

In short, the forestry sector has a significant part to play in meeting international obligations. “Every tonne of emissions we don’t reduce through domestic action we will have to pay someone else in the world to do on our behalf. This could cost billions into the future,” Dr Carr concluded.

Other speakers were equally engaging. Director of Institutional Commodities for Jarden, Nigel Brunel, said carbon delivery has been described as “the non-delivery of an invisible substance to no-one”. What this means in real terms is that we have come a long way from the intensity-based, carbon tax first established as an international agreement in the late nineties. Simple cap and trade wasn’t much better but the Paris Agreement of 2015 kickstarted the more collaborative approach we see today. The concept may have begun at a glacial pace, but so-called Carbon forestry is now doing more than taking root.

A solid message that emerged from the conference is that forestry is now our cheapest source of carbon removal and can help meet targets for transmission to a low carbon economy in a cost-effective way. The forestry Emissions Trading Scheme (ETS) is delivering positive climate change and economic rewards.

So just who is buying this invisible carbon? Managing Director of New Zealand Carbon Farming, Matt Walsh, knows that answer. With some 67 million trees in the company portfolio, about 90,000 hectares in all, primarily on marginal land, the company can boast 22 million tonnes of carbon stored (equivalent to taking all cars off New Zealand roads) in consultation with land partners including iwi groups and poor communities who benefitted with significant payouts.

That being said, there are three primary buyers – voluntary, compliance and investment buyers.

Voluntary buyers generally want units

Above: Director of Institutional Commodities for Jarden, Nigel Brunel. Below: Managing Director of New Zealand Carbon Farming, Matt Walsh.

with environmental and social attributes – to tell a story and maintain their brand.

Compliance buyers are those legally required to buy offsets and surrender them to Government, typically via emissions trading schemes eg, oil companies. They want the lowest cost unit but are becoming conscious of social responsibility.

Then there is the growing segment of investment buyers who expect strong future demand. The auction programme is proving to be a fascinating taste of what this group will bring, moving forward.

One thing is clear, said Mr Walsh, global demand is greater than supply, particularly for voluntary units, and opportunity abounds.

And it’s not just any unit buyers want – it’s about quality. Therein lies an opportunity for New Zealand to lead. The attributes that count? • Native trees – the market pays extra for carbon credits that come from native trees. • The ETS Permanent Forest Category to be introduced in 2023 creates extra quality attributes for the carbon credits that come out of it and will command a

higher price premium. • Biodiversity benefits – creating habitats for wildlife and encouraging biodiversity. • Social benefits are increasingly important, giving back to our communities. • Similarly, community benefits add value. • Native regeneration (or reversion) is a science-based approach based on 50 years of Kiwi research.

So, sums up Mr Walsh…

Buyers are increasingly sophisticated about unit quality.

The trend is towards buyers seeking higher quality units.

Units with additional quality ‘attributes’ will enter the market.

Of course these attributes could combine and ultimately, the more climate capital New Zealand attracts, the less taxpayer money we’ll need to spend reaching the Paris target, he adds, keeping in mind ensuring that we stick to the regulations in this increasingly competitive, undersupplied global market.

That’s just a taste of what this fascinating conference had to bring. A case study in Hawke’s Bay demonstrated the true possibilities as exotics enabled natives and climate change mitigation came to the fore – an example of how mitigation, adaptation, biodiversity, conservation and community wellbeing can all come together to invest in our ecological infrastructure.

The economics are challenging and forest conservation itself comes at a cost, said EKOS CEO Dr Sean Weaver. Exotic hardwoods, mixed hardwoods and natives, pinus radiata, indigenous forest – take your pick. Ultimately cost-benefits need to weigh up to manage the risk for both the investor and the landowner.

As commentator, Rod Oram, summed up, “There is a sense of great opportunity and a great sense of ambition around progressing with the issues we are wrestling with. Natural capital is driving our transformation. Often the biggest opportunity lies where your biggest challenge is. Biodiversity and climate change are intimately linked so issues that drive climate change also impact diversity loss – we can tackle both simultaneously. The biodiversity crisis is also a business crisis. None of this is simple. Everything is challenging. Everything is full of possibility.” NZL

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