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Alberta

Poor forest management, not climate change causing record wildfires: Forest Products Association of Canada and the Indigenous Resource Network

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Wildfire EWF-031 located southeast of Edson, AB. Image provided by the Government of Alberta.

Article submitted by Derek Nighbor, President and CEO of the Forest Products Association of Canada (FPAC) and  John Desjarlais, Executive Director of Indigenous Resource Network (IRN)

Canada’s present and future wildfire threat demands more sustainable forest management

By Derek Nighbor and John Desjarlais
It may only be June, but Canada is facing one of its most extreme wildfire seasons in history. Already, over seven times the forested land base that Canada’s foresters sustainably harvest on an annual basis has been scorched by fire.

A 2021 study by the Canadian Forest Service, suggests the threat to communities is expected to increase in the future. It also highlights that remote First Nations communities made up almost one-third of all evacuees and evacuation events in recent decades and will be at the forefront of the impact in the future years.

To chart our path forward, it is important to recognize that 60% of the trees in Canada’s boreal forest are in the 61-140 year age range. As trees reach maturity, they lose their ability to sequester carbon and are at greater risk of succumbing to the effects of drought, windstorms, pests, and fire. And as our climate continues to change, the severity of these disturbances will continue to escalate.

Simply protecting forests across a natural fire-prone region like the boreal is not an effective climate strategy. Nor is it an effective public safety plan. This is further supported by findings of Parks Canada that show many of Canada’s parks are now net carbon sources due to worsening natural disturbances.

Indigenous leadership offers a deep understanding of how the forest evolves and how it can be managed in a way that is both environmentally and economically sustainable. For centuries, Indigenous communities have renewed and regenerated the forest, preserving biodiversity, and mitigating the impacts of wildfire by removing excess fuel (dead or decaying wood that can be kindling for the next fire) through cultural burns. These practices in turn make forests less prone to other disturbances like insects and disease.

In Finland, Norway and Sweden a January 2022 publication by the International Boreal Forest Researchers Association (IBFRA) shows how an active approach to forest management is paying dividends. Fire and natural disturbance levels are 50-60 times less than they are in Canada. Furthermore, Scandinavians are getting 5 to 7 times the amount of wood out of the same sized plot of land compared to Canada to produce low carbon products for domestic infrastructure, household, and bioenergy needs.

Much of the wood harvested to reduce fuel in the forest may be of insufficient quality for milling into lumber or other solid wood products. However, it presents an opportunity for bioenergy which is already Canada’s second largest source of renewable energy, provides five times the energy of wind and solar combined, and is the largest source of renewable energy in half the provinces. The CHAR Technologies-Lake Nipigon Forest Management Inc. partnership is a great example of what is possible. The proposed renewable natural gas (RNG) and biocoal plant in the Lake Nipigon Ontario area, will maximize the value of low-grade wood and help produce a steady, yearly revenue stream for Indigenous communities in the area.

There is a way to ensure our forests remain both productive and sustainable in Canada, and it’s not a choice between the environment and forest management. The two go together. We need to embrace more active management of our forests, collaboration with Indigenous communities, and look to lessons learned from the Nordic countries to help get us there. In the face of a changing climate, active management of our forests is more important than ever.

Derek Nighbor is the President and CEO of the Forest Products Association of Canada (FPAC).
John Desjarlais is the Executive Director of Indigenous Resource Network (IRN)

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Alberta

Energy sector will fuel Alberta economy and Canada’s exports for many years to come

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From the Fraser Institute

By Jock Finlayson

By any measure, Alberta is an energy powerhouse—within Canada, but also on a global scale. In 2023, it produced 85 per cent of Canada’s oil and three-fifths of the country’s natural gas. Most of Canada’s oil reserves are in Alberta, along with a majority of natural gas reserves. Alberta is the beating heart of the Canadian energy economy. And energy, in turn, accounts for one-quarter of Canada’s international exports.

Consider some key facts about the province’s energy landscape, as noted in the Alberta Energy Regulator’s (AER) 2023 annual report. Oil and natural gas production continued to rise (on a volume basis) in 2023, on the heels of steady increases over the preceding half decade. However, the dollar value of Alberta’s oil and gas production fell in 2023, as the surging prices recorded in 2022 following Russia’s invasion of Ukraine retreated. Capital spending in the province’s energy sector reached $30 billion in 2023, making it the leading driver of private-sector investment. And completion of the Trans Mountain pipeline expansion project has opened new offshore export avenues for Canada’s oil industry and should boost Alberta’s energy production and exports going forward.

In a world striving to address climate change, Alberta’s hydrocarbon-heavy energy sector faces challenges. At some point, the world may start to consume less oil and, later, less natural gas (in absolute terms). But such “peak” consumption hasn’t arrived yet, nor does it appear imminent. While the demand for certain refined petroleum products is trending down in some advanced economies, particularly in Europe, we should take a broader global perspective when assessing energy demand and supply trends.

Looking at the worldwide picture, Goldman Sachs’ 2024 global energy forecast predicts that “oil usage will increase through 2034” thanks to strong demand in emerging markets and growing production of petrochemicals that depend on oil as the principal feedstock. Global demand for natural gas (including LNG) will also continue to increase, particularly since natural gas is the least carbon-intensive fossil fuel and more of it is being traded in the form of liquefied natural gas (LNG).

Against this backdrop, there are reasons to be optimistic about the prospects for Alberta’s energy sector, particularly if the federal government dials back some of the economically destructive energy and climate policies adopted by the last government. According to the AER’s “base case” forecast, overall energy output will expand over the next 10 years. Oilsands output is projected to grow modestly; natural gas production will also rise, in part due to greater demand for Alberta’s upstream gas from LNG operators in British Columbia.

The AER’s forecast also points to a positive trajectory for capital spending across the province’s energy sector. The agency sees annual investment rising from almost $30 billion to $40 billion by 2033. Most of this takes place in the oil and gas industry, but “emerging” energy resources and projects aimed at climate mitigation are expected to represent a bigger slice of energy-related capital spending going forward.

Like many other oil and gas producing jurisdictions, Alberta must navigate the bumpy journey to a lower-carbon future. But the world is set to remain dependent on fossil fuels for decades to come. This suggests the energy sector will continue to underpin not only the Alberta economy but also Canada’s export portfolio for the foreseeable future.

Jock Finlayson

Senior Fellow, Fraser Institute
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Alberta

The beauty of economic corridors: Inside Alberta’s work to link products with new markets

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From the Canadian Energy Centre

Q&A with Devin Dreeshen, Minister of Transport and Economic Corridors

Devin Dreeshen, Alberta’s Minister of Transportation
and Economic Corridors.

CEC: How have recent developments impacted Alberta’s ability to expand trade routes and access new markets for energy and natural resources?

Dreeshen: With the U.S. trade dispute going on right now, it’s great to see that other provinces and the federal government are taking an interest in our east, west and northern trade routes, something that we in Alberta have been advocating for a long time.

We signed agreements with Saskatchewan and Manitoba to have an economic corridor to stretch across the prairies, as well as a recent agreement with the Northwest Territories to go north. With the leadership of Premier Danielle Smith, she’s been working on a BC, prairie and three northern territories economic corridor agreement with pretty much the entire western and northern block of Canada.

There has been a tremendous amount of work trying to get Alberta products to market and to make sure we can build big projects in Canada again.

CEC: Which infrastructure projects, whether pipeline, rail or port expansions, do you see as the most viable for improving Alberta’s global market access?

Dreeshen: We look at everything. Obviously, pipelines are the safest way to transport oil and gas, but also rail is part of the mix of getting over four million barrels per day to markets around the world.

The beauty of economic corridors is that it’s a swath of land that can have any type of utility in it, whether it be a roadway, railway, pipeline or a utility line. When you have all the environmental permits that are approved in a timely manner, and you have that designated swath of land, it politically de-risks any type of project.

CEC: A key focus of your ministry has been expanding trade corridors, including an agreement with Saskatchewan and Manitoba to explore access to Hudson’s Bay. Is there any interest from industry in developing this corridor further?

Dreeshen: There’s been lots of talk [about] Hudson Bay, a trade corridor with rail and port access. We’ve seen some improvements to go to Churchill, but also an interest in the Nelson River.

We’re starting to see more confidence in the private sector and industry wanting to build these projects. It’s great that governments can get together and work on a common goal to build things here in Canada.

CEC: What is your vision for Alberta’s future as a leader in global trade, and how do economic corridors fit into that strategy?

Dreeshen: Premier Smith has talked about C-69 being repealed by the federal government [and] the reversal of the West Coast tanker ban, which targets Alberta energy going west out of the Pacific.

There’s a lot of work that needs to be done on the federal side. Alberta has been doing a lot of the heavy lifting when it comes to economic corridors.

We’ve asked the federal government if they could develop an economic corridor agency. We want to make sure that the federal government can come to the table, work with provinces [and] work with First Nations across this country to make sure that we can see these projects being built again here in Canada.

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