Forest Products Industry

Modern forestry machines work in some of the most demanding conditions in the off-road world. Harvesters and forwarders operate far from workshops, under rapidly changing loads and in environments where uptime, fuel efficiency and serviceability have a direct impact on productivity. Source: Timberbiz Forestry machines needs an engine designed for demanding off-road applications. “Forestry applications place very different demands on an engine than on-road applications do. The engine must respond instantly to changing loads, work seamlessly with the machine’s hydraulic and control systems, and keep it productive in conditions where downtime is costly,” said Juha Tervala, Managing Director at AGCO. Forestry places very specific demands on an engine. In a harvester, the load changes rapidly as the head feeds, delimbs and cuts timber. In a forwarder, the engine must deliver controlled power when moving heavy loads over uneven terrain, slopes and soft ground. In these conditions, reliable operation is not only about power and torque. The engine must also maintain dependable lubrication and performance when the machine is working on inclines or in tilted positions, as forestry machines often operate on uneven ground for extended periods. “Performance in forestry is created by the whole machine. The engine, hydraulics, software and serviceability must be designed as one integrated system,” said Jarno Ratia, Director of Product Management of AGCO Power. The CORE platform is designed around high torque, low engine speeds, efficiency and adaptability to different applications. Its architecture also supports future powertrain technologies such as hybridization and alternative fuels. The modular CORE family currently includes three engine options for different power requirements: the four-cylinder CORE50, producing up to 165 kW and 950 Nm; the six-cylinder CORE75, producing up to 250 kW and 1,450 Nm; and the latest variant, CORE80, rated at 252 kW with maximum torque of 1,680 Nm. In forestry, serviceability is a direct part of productivity. Machines often operate long hours and far from service locations, so routine maintenance needs to be straightforward, and downtime kept to a minimum. “Good serviceability supports both people and productivity. In cold, dark or remote conditions, a well-designed service layout makes routine maintenance more ergonomic and efficient, while helping the machine return to productive operation sooner,” said Ratia. The technical architecture of the engine also affects serviceability and reliability. CORE engines achieve low emissions without exhaust gas recirculation, or EGR, and without two-stage turbocharging. This supports a simpler engine layout and reduces the number of components in the system. Fuel efficiency, demonstrated by independent DLG PowerMix tests (test reports 7547, 7552, 7435 and 7599), is an important advantage of AGCO Power’s modern CORE engines. Although DLG PowerMix is a tractor test rather than a forestry-machine test, the results provide independent evidence of the efficiency of the CORE engine platform across different load points and engine-speed ranges. The results also demonstrate the importance of powertrain integration. Fuel efficiency is not determined by the engine alone, but by how the engine, transmission, hydraulics and software work together in the complete machine. “Lower fuel consumption immediately affects operating costs. But efficiency cannot come at the expense of response, durability or uptime. That balance is where AGCO Power’s off-road experience makes the difference,” said Ratia.

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As forestry, biomass and material handling operations seek higher productivity, maximum uptime and equipment that can adapt to diverse vehicle platforms, demand is growing for cranes that combine high performance with easy maintenance and installation flexibility.  Source: Timberbiz The new KESLA 2212-2217 truck crane series brings together these qualities in a robust solution designed for demanding loading applications on semitrailers, trucks and heavy-duty truck tractors. The KESLA 2212-2217 has been developed for intensive loading operations where productivity, reliability and ease of maintenance are critical factors. Featuring a stronger extension cylinder, larger hydraulic lines and an updated chain tensioning system, the new cranes deliver enhanced performance and durability for demanding daily use. The new crane series replaces the previous KESLA 2112-2117 models. Efficient loading performance is essential in modern forestry and material handling operations. The new KESLA 2212-2217 series features an upgraded boom and hydraulic system that enable fast, smooth and reliable crane movements. High-strength Strenx 700 steel provides an excellent combination of strength and low weight, contributing to high performance and a long service life. The protected hydraulic system further supports reliable operation in demanding conditions. For machine owners and contractors, equipment uptime is a key productivity driver. The KESLA 2212-2217 has been designed with serviceability in mind, featuring easily accessible maintenance points and practical service solutions that help reduce maintenance time and keep machines productive in the field. The KESLA 2212-2217 is designed for installation on semitrailers, articulated trucks and heavy-duty lorries and offers flexible stabilizer solutions for a wide range of applications. A choice of stabilizer beam and cylinder options allows the crane to be tailored to different operating conditions and vehicle configurations. The new FD3850 stabilizer beam system with side-swinging articulated stabilizer legs is particularly well suited for loading whole trees and utility poles, as well as for working on uneven terrain. The KESLA 2212-2217 combines performance with operator-focused design. The modern high-seat control station features ergonomic adjustments and comfort-enhancing features designed to support operators during long working days. The proC i electric control system provides precise control of hydraulic functions and allows operators to customise machine settings according to their preferences.  

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Japan’s lumber market is increasingly turning toward domestically sourced timber, with growing use of sugi (Japanese cedar) driven by government policies, maturing forest resources, and rising import costs. Source: Fastmarkets While imported spruce remains the preferred material for many structural applications, market participants said sugi is gaining acceptance in selected framing uses, aided by government initiatives promoting domestic timber. Bumpei Nishishita, president of Japanese wood products company Kyoei Lumber, told Fastmarkets that the shift toward domestic species represents a long-term structural change rather than a temporary response to market conditions. Recent developments have only reinforced the trend. Since late last year, spruce availability from Scandinavia and Eastern Europe has declined due to disease infestations and severe storms, tightening supplies of spruce while increasing the share of pine available to buyers, a species Japanese customers are generally reluctant to use. Supply constraints have been compounded by the closure of Vida’s Urshult and Orrefors sawmills in Sweden, removing around 260,000-265,000 cubic meters of annual lumber production capacity, according to Fastmarkets Q1 World Timber Price Quarterly. The Urshult facility alone produced approximately 185,000 cubic meters of spruce lumber per year and counted Japan among its core export markets. Moreover, the weak yen has continued to inflate the cost of imported wood, despite policy discussions between the United States and Japan regarding exchange-rate stability. A trader in Germany cited the maturation of Japan’s post-war sugi and hinoki (Japanese cypress) plantations, along with the need to actively manage those forests, as key drivers of long-term growth in domestic timber consumption. Japan’s wood self-sufficiency rate has more than doubled, rising from 18.8% in 2002 to 42.5% in 2024, according to government data. The country’s latest Forest and Forestry Basic Plan also targets an increase in domestic wood consumption to 42 million cubic meters by 2035 from the current 35 million cubic meters, raising self-sufficiency to 49%. The government has sought to reinforce the shift through measures including subsidies, sustainable procurement requirements and the Act on the Promotion of Wood Use in Public Buildings, which encourages greater use of domestic timber in public construction. Although interest in domestic species is growing, market participants said sugi remains a partial substitute rather than a direct replacement for imported spruce. “Japanese cedar offers exceptional natural durability, resistance to insects and mould, and a very low density of approximately 380 kilograms per cubic meter, making it lightweight and dimensionally stable for cladding and non-structural uses,” the trader in Germany said. In addition, Japanese producers “are seeing growing interest in using sugi for structural applications, including 2×4 construction,” Nishishita said. However, spruce’s higher density, stiffness and superior load-bearing capacity continue to make it the preferred choice for structural framing, studs and trusses. Additionally, while regional builders, architects and companies involved in certain non-residential timber projects tend to be more receptive to using sugi, price, quality, drying, structural performance and supply reliability remain important considerations, according to the Kyoei Lumber president. “Domestic origin alone is not enough reason for customers to switch materials,” he said. Market participants said Japan possesses significant forest resources, but increasing domestic wood consumption will require improvements across the forestry supply chain. More than 10 million hectares of planted sugi and hinoki forests exist across the country, with about 60% already mature enough for harvesting, the German trader said. However, labour shortages, fragmented forest ownership and weak forestry profitability continue to constrain output. “The challenge is not simply the volume of standing timber,” Nishishita said. “We need a stronger supply chain from the forest to the building site, including harvesting, sawmilling, kiln drying, quality control and logistics.” One area for improvement is meeting the rigorous sub-20% moisture-content standards expected by modern pre-cut housing manufacturers, a requirement that has historically constrained supply. Nishishita said current subsidies for locally sourced wood should be viewed as a starting point rather than a long-term solution for encouraging domestic sourcing. “The market becomes sustainable only when builders continue to choose domestic timber without subsidies because it is competitive, reliable and easy to use,” he said. “Japanese sugi should not only replace imported wood. It should become a material that the world chooses for its own value.” While sugi is unlikely to fully displace imported spruce in high-strength applications, government support, maturing forest resources and investment in the forestry supply chain are expected to expand its role in the years ahead.

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Recent data from the Clean Energy Regulator shows a significant increase in Australian Carbon Credit Units (ACCUs) and Safeguard Mechanism Credit retirements, alongside a decline in SMC issuance — reinforcing that compliance demand is strengthening as baselines tighten. Source: Timberbiz In practical terms, this means many large emitters are relying more heavily on carbon credits, with fewer internal or lower-cost alternatives available, and there is increasing pressure to secure supply ahead of further tightening. This shift is sharpening focus not just on accessing ACCUs, but on securing the right types of credits — those that can withstand regulatory scrutiny, support disclosure obligations and align with long-term decarbonisation strategies. And it’s in this environment that plantation forestry ACCUs are attracting growing interest. Plantation forestry is not new to the Australian economy. It underpins an approximately $25 billion renewable manufacturing sector and has operated within a corporate and regulatory environment for decades. The industry supports the production of construction timber, pulp and paper, and packaging and fibre products — all of which play a critical role in housing supply, domestic manufacturing capability and regional employment. It also contributes to climate outcomes through carbon sequestration and the substitution of more emissions-intensive materials. Billie Jones, SFM’s Carbon Projects Manager, says the emergence of plantation forestry in the carbon market is a natural extension of this established role. “Plantation forestry has always delivered across multiple dimensions — economic, environmental and regional. What we’re seeing now is the formal recognition of its carbon value within a regulated framework,” Ms Jones said. “For corporate buyers, that’s important. These are not one-off projects — they’re part of an established industry with real assets, long-term management and well-understood systems.” Under the ACCU Scheme’s plantation forestry method, eligible activities can generate carbon credits by increasing the amount of carbon stored in plantation forests. This includes practices such as transitioning to longer-rotation plantations, maintaining forest cover where it might otherwise be lost, or establishing permanent forest outcomes where appropriate. These projects operate under legislated rules, with defined accounting approaches and requirements for monitoring, reporting and where required, independent audit. According to SFM Managing Director Strategy, Risk and Trading David Wise, this level of structure is becoming increasingly important for corporate buyers. “There is a growing expectation that companies can clearly explain and stand behind the offsets they use,” Mr Wise said. “Plantation forestry ACCUs sit within a regulated Australian framework, with defined methodologies and reporting requirements. That gives buyers a level of transparency and confidence that is increasingly valued.” As demand for ACCUs grows, so too does scrutiny around credit quality and availability. At the same time, international carbon markets continue to develop — including through mechanisms under the Paris Agreement’s Article 6 — but are not yet delivering consistent global standards or supply certainty. This is placing greater emphasis on domestic ACCUs, particularly those that can meet both compliance needs and rising expectations around integrity. Mr Wise notes that this is changing how organisations approach procurement. “We’re seeing a shift toward more deliberate, forward-looking strategies,” he said. “It’s not just about sourcing volume. It’s about securing the right credits, in the right structure, with a clear line of sight to delivery and disclosure.” While high-quality ACCU projects are being developed, connecting that supply with the right corporate buyers — under the right commercial structures — remains a key challenge in the market. SFM is working in partnership with leading Australian carbon platform, Clima to address this. Clima specialises in carbon market advisory and transaction services, operating across project origination, corporate procurement and secondary market activity. Clima’s Managing Director, Guy Dickinson says this role is becoming increasingly important as the market matures. “Large emitters are managing complex, multi-year compliance obligations, often alongside significant reputational considerations,” Mr Dickinson said. “What we do is help translate carbon supply into structured procurement strategies — whether that’s long-term offtake agreements, portfolio construction or market access — so that buyers can secure ACCUs in a way that is both cost-effective and defensible.” Through this partnership, SFM’s plantation forestry projects are being brought to market and matched with corporate buyers seeking compliance-grade carbon supply. There is also a timing dimension that is becoming increasingly relevant. As Safeguard Mechanism baselines decline through to 2030, demand for ACCUs is expected to increase. At the same time, the availability of higher-integrity, domestically generated credits remains finite. This dynamic is encouraging some organisations to move earlier — securing supply through forward agreements rather than relying on spot market availability. Mr Dickinson notes that this approach is increasingly being viewed through a risk management lens. “For many buyers, the question is no longer whether they will need ACCUs — it’s when and under what conditions they secure them,” he said. “Taking a structured approach now can provide greater certainty on price, availability and quality over time.” As Australia’s carbon market becomes more sophisticated, procurement decisions are becoming more nuanced. Buyers are placing greater emphasis on how credits are generated, how they are verified, and how they can be justified within internal governance frameworks and external disclosures. Plantation forestry ACCUs — grounded in a legislated methodology and linked to an established domestic industry — represent one pathway that is gaining traction in this environment. “The market is moving toward greater transparency and accountability. In that context, the ability to demonstrate where your carbon credits come from, how they’re generated, and how they fit within your broader strategy is critical, Mr Wise said. As the market continues to develop, closer engagement between project proponents, intermediaries and corporate buyers will play an important role in ensuring that supply and demand are effectively aligned. Through its partnership with Clima, SFM is working to facilitate that connection — helping ensure that high-integrity plantation forestry ACCUs are accessible to the organisations that need them.

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A fatal incident near Dannevirke in New Zealand is a reminder that forestry businesses must verify worker competence, provide effective inductions and supervision, and have robust systems for people working alone. Source: Timberbiz Trevor Beale was prosecuted by WorkSafe New Zealand after his employee Tejay Alan Debenham died while felling trees at a rural property on Weber Road on 17 November 2023. Mr Debenham was working alone and unsupervised when a tree limb struck him causing him to fall off a nearby cliff. The site contained multiple high-risk hazards, including large wind-affected trees, suspended and interlocked branches, restricted escape routes, and trees growing close to an eroded cliff edge. In the Dannevirke District Court on Monday 7 September Mr Beale was ordered to pay NZ$254,740 in reparation to Mr Debenham’s family as well as legal costs of NZ$1,000 and was fined NZ$5,000. WorkSafe’s Central Region Manager, Nigel Formosa, says the lessons to be learned extend well beyond this case. “Tree felling is high-risk work. Before it begins, businesses must know who is competent to do it, what supervision is required, and how the site’s hazards will be controlled. Taking someone’s word for their training or experience is not enough,” he said. “An induction must be more than a conversation. It should be structured, documented and checked for understanding, with clear task limits and controls that are reinforced throughout the work. “If a worker is inexperienced or not yet competent, they must receive training and close supervision. High-risk work must not proceed simply because the usual supervisor is unavailable. “Where people work alone or remotely, businesses need a reliable check-in and check-out system that reflects the level of risk, assigns responsibility for monitoring, and triggers action if contact is missed. Those arrangements must be confirmed – not assumed.” The prosecution identified four reasonably practicable steps that were not taken: confirming Mr Debenham’s experience, training and qualifications; completing an adequate induction; ensuring appropriate supervision; and putting an adequate check-in and check-out procedure in place. Forestry businesses should review whether their systems work in practice. This includes documenting worker competence, reassessing hazards when conditions or personnel change, using mechanised felling where reasonably practicable, ensuring a competent person is in charge, and stopping work when the required controls or supervision are not available.

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Tasmanian Primary Industries Minister Gavin Pearce will neither confirm nor deny expressing support for the sale of Tasmania’s biggest farm, Rushy Lagoon, in a conversation with the buyer last year, despite the state government’s subsequent criticism of the deal. Source: The Mercury Rushy Lagoon spans nearly 22,000ha in Tasmania’s far north-east and its sale to UK forestry company Gresham House was signed off by Australia’s Foreign Investment Review Board and Treasurer Jim Chalmers in July. The farmland will be converted for a 9000ha pine plantation and used for carbon credit generation, with the Commonwealth-owned Clean Energy Finance Corporation investing $69m into the broader $142m project. The Tasmanian government has raised concerns about the process that led to the agricultural land being sold for carbon sequestration. Labor resources spokesman Shane Broad told state parliament on Tuesday that he understood Mr Pearce “had a conversation” with a representative of Gresham House in November 2025, during which he “expressed … support for the plantation proposal [and] said that landowners should be able to do what they want with their properties within the law”. “You offered to troubleshoot any pushback they encountered, and you even gave them your personal phone number in case any issues popped up,” Dr Broad said. “Why did you change your mind about Gresham House’s plans for Rushy Lagoon?” Mr Pearce would not confirm the conversation had taken place but said the government did not have “an issue with plantation or forestry on farms” nor object to foreign investment. “What we have an issue with, what I have an issue with, is the process, and the fact that $69m dollars from the Clean Energy Finance Corporation can be used to advantage one purchase or over another,” he said. “In terms of my support for exactly the issues that you raise around supporting prospective buyers into our state or prospective agricultural operators into our state, then that is a matter between them and I.” The Liberals have ordered a parliamentary inquiry into the sale of Rushy Lagoon, with the terms of reference focusing on the Commonwealth government’s “influence” on the transaction. Premier Jeremy Rockliff has described the property as “one of Tasmania’s premier agricultural enterprises” and said there was “genuine community concern about the implications of the sale”. In a statement issued after Question Time, Dr Broad accused Mr Pearce of “hypocrisy” and defended Gresham House’s plans for the land, saying work was under way to “improve” the property, which he argued would create jobs and allow cattle production and irrigated cropping to continue.

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Timberlink has appointed Sarah Bellman as its new Chief Executive Officer following the retirement of Paul O’Keefe. Source: Timberbiz Ms Bellman joins Timberlink with extensive strategic, customer and operational leadership experience across the manufacturing, mining, and quarrying sectors. Throughout her career, she has earned a reputation for strengthening operational capability, delivering sustainable commercial growth, and leading high-performing teams. With more than a decade of executive leadership experience at Hanson Australia and Heidelberg Materials Australia, most recently as General Manager, Southern Region, she brings a proven track record of leading complex operations and achieving strong commercial results. Ms Bellman has also made a significant contribution to the broader construction materials industry through leadership, governance and industry advocacy roles, as Chair of the Cement Concrete and Aggregates Association in Victoria and South Australia and Director of the Institute of Quarrying Australia. “The Board is confident that Ms Bellman’s combination of manufacturing and heavy industry experience together with her proven ability to lead customer delivery, operational excellence and drive organisational performance, supports Timberlink’s strategy and growth ambitions,” Ken Boundy, Chairman of Timberlink Australia & New Zealand said. Ms Bellman will be based in Timberlink’s National office in Scoresby, Victoria and will commence on 16 November 2026. “I am honoured to be joining Timberlink who play a vital role in the use of sustainable building materials and supporting Australian manufacturing in regional communities. I look forward to working with our dedicated team, customers and partners to build on the company’s strong legacy and drive future growth,” Ms Bellman said. Mr O’Keefe will remain with Timberlink to support an effective transition until he retires as planned in mid-December 2026.

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Forestry Australia has made clear that its proposed Enhancing Native Forest Resilience carbon method is designed not to enable additional native forest harvesting, but to support scientifically demonstrated improvements in forest carbon, health and resilience. Forestry Australia President Dr Michelle Freeman said this misrepresents both the organisation and the proposal. Source: Timberbiz “Forestry Australia is the professional association for forest scientists, managers and other forestry professionals working across Australia’s forests and landscapes,” Dr Freeman said. “Our members work across conservation, native and plantation forest management, recreation, research, fire management, Indigenous engagement, farm forestry, environmental services and restoration. “Our proposed method reflects that breadth. It is not about logging more forests. It is about using carbon investment to support genuine, additional and scientifically demonstrated improvements in forest carbon and forest health and resilience.” The proposed method is intended to apply across different forest tenures and management objectives, including potentially national parks and conservation reserves, Traditional Owner-managed forests, private forests and state forests. It recognises that Australia’s forests are diverse, face different pressures and cannot be managed through a single prescription. Climate change, severe wildfire, drought, pests, invasive species and disease are increasing pressures on forests. In some landscapes, active intervention may be needed to restore forest condition, support regeneration and improve resilience. “Forest management is not a binary choice between harvesting a forest and leaving it alone,” Dr Freeman said. “Active and adaptive management in forests includes assisted regeneration, ecological restoration, cultural and prescribed burning, ecological thinning, pest and weed control, protecting habitat trees, post-fire recovery, or changing or deferring harvesting.” “The intervention should follow the science and the needs of the forest, not a predetermined land-use outcome.” The proposed carbon method takes a multifunctional, landscape-scale approach, recognising that forests provide multiple values including biodiversity, carbon storage, water, cultural values, recreation and renewable forest products. Forestry Australia has identified practical examples where carbon investment could support better forest outcomes, including assisted regeneration of Alpine ash forests affected by repeated severe fires and management of heavily stocked cypress pine forests where growth has stagnated. At the centre of the proposal is a simple principle: carbon credits should reward demonstrated carbon outcomes, not particular land uses. “The critical question is whether an intervention delivers a genuine, additional and conservatively measured carbon benefit, supported by sound science and environmental safeguards,” Dr Freeman said. A high-integrity method should therefore include credible baselines, robust carbon accounting, transparent modelling, appropriate treatment of leakage and permanence, environmental safeguards and ongoing monitoring. Forestry Australia submitted the proposal through the Australian Government process for developing new methods under the Australian Carbon Credit Unit Scheme. The Emissions Reduction Assurance Committee assessed it as having “excellent alignment” with the Offsets Integrity Standards and suitable for further method development when resources permit. “Carbon markets can provide important investment in healthier, more resilient forests, but only where the carbon benefits being credited are real,” Dr Freeman said. “The same integrity test should apply to every project: does it deliver genuine, additional and defensible climate benefit?” Dr Freeman said Australia also needed a broader conversation about the future of its native forests. “Reducing this discussion to whether someone is ‘for’ or ‘against’ native forest harvesting does not help us address the complex challenges our forests face. “We should instead ask how the best available science can help maintain healthy, resilient forests that store carbon, conserve biodiversity and provide the environmental, cultural, social and economic values Australians expect from them. “That is the purpose of Forestry Australia’s proposal. The management should follow the science. The carbon accounting should follow the evidence.”

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Forest & Wood Communities Australia says the Senate vote allowing the Improved Native Forest Management (INFM) carbon method to survive does not resolve the serious scientific, economic and carbon-accounting concerns surrounding the scheme. Source: Timberbiz The Senate rejected the disallowance motion 34 votes to 27 after the majority of Federal Greens reached an agreement with the Albanese Government. Three Greens senators – Nick McKim, Vanessa Bleyer and Jordon Steele-John broke ranks and voted to disallow the method. AFPA is concerned and disappointed Australian Forest Products Association (AFPA) has also expressed disappointment and concern after the Senate voted to support the Federal Government’s approval of the controversial Improved Native Forest Management (INFM) method. AFPA says it has been working closely with the Coalition, including Senator Ross Cadell and the crossbench on the disallowance motion seeking to stop the flawed new carbon method. The decision means the INFM method can be used on other projects and will also allow the NSW Government to formalise the establishment of the Great Koala National Park.  The deal also creates further questions about the future value, transparency and integrity of ACCUs by excluding coal and gas offsets. Following the vote, AFPA met with Assistant Minister Wilson to raise more concerns about the method’s lack of transparency, potential impacts on ACCU values, and implications for managed forests and the private native forestry sector. We also highlighted ongoing concerns about unresolved technical issues with FullCAM. Forestry Australia analysis shows flaws in INFM Forestry Australia’s recent analysis showed the INFM method could overstate carbon benefits by 40 to 100%, raising serious questions about the integrity of the scheme. Over-crediting means issuing more carbon credits than the actual carbon saved or removed from the atmosphere — a problem that could undermine confidence in Australia’s entire carbon market. FWCA Chair Steve Dobbyns said the parliamentary vote settled a political question, but it did not settle whether ACCUs generated under the method represent genuine, additional and conservatively calculated carbon abatement. “You cannot fix a carbon-accounting problem with a political deal,” Mr Dobbyns said. “Whether the Greens support the INFM, the Coalition opposes it or Labor promotes it is ultimately irrelevant to the integrity test. “An Australian Carbon Credit Unit is supposed to represent one tonne of genuine carbon dioxide equivalent abatement. That requires evidence, not political agreement.” Formal request lodged with Emissions Reduction Assurance Committee FWCA has already lodged a formal request with the Emissions Reduction Assurance Committee under section 255AA of the Carbon Credits (Carbon Farming Initiative) Act seeking a statutory review of the INFM method. That request asks ERAC to examine unresolved issues including: the method’s arbitrary 40% ceiling on indirect carbon leakage; evidence that reductions in Australian native forest timber production are substantially displaced to imported timber; whether projects based on pre-existing government commitments satisfy the statutory additionality test; Forestry Australia’s concerns about FullCAM modelling and potentially substantial over-crediting; the relationship between the 15-year regional harvesting constraints and 100-year carbon protection obligations; and significant changes made to the method following public consultation. Mr Dobbyns said none of those fundamental issues had been resolved by this week’s agreement between Labor and the Greens. “The Greens say they have secured an increase in the required reduction in harvesting to 25 per cent in 2028 and 30% for projects registered after 2030, changes to plantation definitions and restrictions on who can purchase credits from projects such as the Great Koala National Park. “But the Federal Government’s own announcement says the Assistant Minister has asked ERAC for advice on variations to the method, including the proposed 30% threshold and plantation definitions. “So, before anyone declares the method ‘fixed’, we need to distinguish between a political undertaking and an amended methodology determination.” Mr Dobbyns said increasing the amount of timber production that must be removed from a region did not resolve the leakage problem and could potentially increase it. “If Australia removes more domestic hardwood production while Australian demand for timber remains, the obvious question is where the replacement timber comes from,” he said. “Recent Australian research found that approximately 81% of reductions in native forest hardwood production were displaced to imports. That does not automatically mean 81% carbon leakage, but it makes rigorous leakage assessment essential. “Yet the INFM method prevents the indirect leakage deduction from exceeding 40%, even if an independent assessment were to conclude that the actual carbon leakage was higher. “That is precisely the sort of issue ERAC should independently examine.” FWCA also noted that Forestry Australia has warned that structural features of the INFM method could overstate claimed abatement by between 40 and 100% before the full effects of leakage and carbon stored in harvested wood products are considered. “These are not arguments about whether people like national parks or whether koalas should be protected,” Mr Dobbyns said. “FWCA supports effective conservation based on sound science. The issue is whether taxpayers and Australian businesses should be required to pay for carbon credits unless the claimed carbon benefit can withstand rigorous independent scrutiny. “The Great Koala National Park was a government election commitment made before the INFM existed. It was announced as government policy and public funding had already been identified. “If the park was going to be created anyway, the fundamental additionality question remains: what extra carbon abatement is the taxpayer or ACCU purchaser actually buying?” Mr Dobbyns said the extraordinary division within the environmental movement reinforced the case for an independent examination rather than treating the Senate vote as the end of the debate. Three Federal Greens senators have publicly questioned whether the Great Koala National Park credits would be additional, while the Greens in Western Australia and Tasmania and prominent environmental campaigners have also opposed the INFM. “FWCA does not necessarily agree with their broader views on forestry or carbon markets, but on one point there should be common ground: carbon credits must represent real additional abatement,” Mr Dobbyns said. “The Senate has voted. The integrity questions remain.” “ERAC should now undertake the statutory review requested by […]

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