Avrim Lazar President & CEO Forest Products Association of Canada February, 2002

1. Effect of Climate Change on Canada’s Forests and Rural CommunitiesSenate Standing Committee on Agriculture & Forestry Avrim Lazar President & CEO Forest Products Association of Canada February, 2002

2. FPAC Overview • FPAC is the voice of Canada's wood, pulp, & paper producers nationally and internationally • FPAC member companies operate in 350 rural communities and 1200 communities overall • 1 million Canadians depend upon the forest industry for their livelihood

3. FPAC Overview • FPAC member companies together have responsibility for 75% of Canada's working forests • Third-party certification of our companies' forest practices are a condition of membership in the association, a world first

4. Key FPAC Comments • Climate change is a real issue that needs to be addressed • Concerned about impacts on forests and the communities that depend upon them • Policy emphasis to date has been on mitigation while focus on impact and adaptation has been minimal

5. FPAC & Climate Change • FPAC members are managers of carbon • Core of our business • From planting trees to suppressing fires to carbon stored in our solid wood products • High industry and rural community exposure to impacts of climate change

6. FPAC Members Track Record • Have acted early on a serious global problem • 1 tonne product generates 38% less CO2 than in 1990 • Total ghg emissions reduced by 26% while at the same time we have grown our production by over 20% • Mitigation activities have focused on: • Energy efficiency & conservation • Fuel switching to less carbon intensive and/or greenhouse gas neutral fuels (biomass) • Extensive recycling of post-consumer paper

7. Pulp and Paper Emissions vs. Kyoto Target (Percentage of 1990 Emissions) -6 -26 Actual to 2001; maintain 2001 level to 2010; Source: EC National GHG Inventory; Statistics Canada; CIEEDAC; FPAC

8. Forest Carbon Management • Forests offer opportunities to mitigate climate change • CO2 sequestration of healthy growing forests • Ecological services (water and soil conservation) • Climate stabilization • Forest Products • Storage in forest products pool • Sustainable forest management • Forest regeneration • Intensive silviculture • Fire prevention • Insect and disease management • Soil conservation

9. Potential Impacts on Forests • Insect and disease infestation • No natural defence in native ecosystems • Expansion of pest range • Biodiversity impacts • Changing ecosystems, eco-regions • Introduction of exotic and invasive species • Increased forest fire disturbance • Frequency, intensity and duration • Shifting tree species distribution • Forest ecosystems turn to Grasslands • Impact on tree improvement programs • Difficult regeneration of drought-intolerant species

10. Potential Impact on Communities • Dramatic climate events • Natural disasters impacting our communities • Change or loss of traditional activities • Hunting, fishing, tourism • Restructuring of rural economies • Job impacts • Tax implications for governments

11. Potential Impact on Industry • Decreased fibre supply • Growth and yield changes • Loss of fibre to natural disturbance • No return on past tree improvement investments • Increased operational costs • Forest protection costs • Insects, disease, fire • Harvesting and transportation period • Regeneration difficulties • Inventory management • Water supply • Technology re-tooling

12. Adaptation Strategies • Understand nature, extent and rate of climate change impacts on forest resource • Increase adaptive management activities in forestry and manufacturing operations • Maximize mitigation opportunities in both forests & manufacturing

13. Recommendations • Collaborative research into climate change impacts and mitigation measures • Studies to determine response of ecosystems to climate change (eg. forest stands and species distribution) • Forest ecosystem monitoring (early warning) • Natural disturbances • Forest productivity • Exotic species • National forest inventory system • Understand baseline • Track changes • Afforestation • Forest 2020