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August 2009

Certified Forestry Is In Trouble, U.N. Report Says

The certified-forestry movement is running out of steam, a United Nations report suggests.

"The pace of expansion of global certified forest area has slowed dramatically in the last three years," says the international agency's recently released Forest Products Annual Market Review, 2008-2009. The proportion of "industrial roundwood" coming from forests certified by such environmental organizations as the Forest Stewardship Council (FSC) has actually decreased recently, to 25.9%, it says.

"Certified forest area increased by around 50 million hectares a year between 2001 and 2005 – mainly due to a rapid increase in certified forest area in North America – then the rate slowed by half to 25 million hectares a year in 2006 and 2007. More recently the rate has stagnated even further, not exceeding 4 million hectares between May 2008 and May 2009." Certified forestry has actually lost some ground in North America and Europe, the U.N. report adds.

One culprit is that the sustainable-forestry movement is running out of low-hanging fruit: "Now that many of the largest state- and industry-owned lands in the developed world are already
certified, the certification movement faces the significant challenge of expanding in more difficult
areas" such as small forestry operations and developing countries.

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Norway’s Statkraft to invest up to $1.4 bln with Södra

The Swedish forestry and timber product company Södra and the Norwegian energy company Statkraft have signed an agreement of intent on renewable energy valued at up to SEK 10 billion (Euro 1 billion). The agreement initiates a range of investment projects and cooperative agreements in the energy sector.

Over 10,000 jobs already lost in Finnish forestry sector

Finnish forestry’s contribution to the national economy has dropped by half since the start of the new millennium.

FEATURE-Carbon traders bet on California redwoods

GARCIA RIVER FOREST, Calif., Aug 21 (Reuters) - A stand of young redwoods, survivors in what was once a magnificent forest of towering giants, could play a small part of the battle to slow global warming -- and forms part of an emerging market.

Global forest destruction seen overestimated?

RIO DE JANEIRO (Reuters) - The amount of carbon emissions caused by world forest destruction is likely far less than the 20 percent figure being widely used before global climate talks in December, said the head of the Brazilian institute that measures Amazon deforestation.

Study doubts UN calculation of climate change costs

The global cost of adapting to the effects of climate change will be at least two or three times higher than estimated by the UNFCCC, a new report states.

International Paper Treads Monsanto’s Path to ‘Frankenforests’

Aug. 28 (Bloomberg) -- International Paper Co., the world’s largest pulp and paper maker, plans to remake commercial forests in the same way Monsanto Co. revolutionized farms with genetically modified crops.

International wood pellets markets - a retrospection on 2008

The use of wood pellets as fuel for domestic stoves and boilers and for co-firing in thermal power plants has been an amazing success story over the past 10 years. Recently, the exorbitant speed of growth caused supply problems and a slowdown of markets, but the next boom is waiting, says Christian Rakos.

Rising New Zealand Dollar a threat for wood processing industry

Wood processing company Winstone Pulp International says the rising New Zealand dollar is a major concern.

Sawlog prices near 5-year low globally

The Global Sawlog Price Index (GSPI) in the 2Q/09, increased for the first time since late 2007, reaching $68.87/m3. The Index, which is based on conifer sawlog prices in 19 key regions worldwide from 1995 to present, was still close to its lowest level in five years.

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by Dr. Radut