Overview of Ontario Forests and Forestry (Summary)

(To download a pdf of the full report, click here.)

Ontario’s forest industry has been in the news in recent months as government and industry struggle to address economic challenges and redefine the future of the industry.  The rising Canadian dollar, the softwood lumber dispute, energy prices, outside competition, overcapacity and wood supply issues have all been cited as contributing factors effecting Ontario’s struggling forest industry. In response, the Ontario government is considering a package tomorrow to support this vital industry.  Noticeably absent from the debate is a recognition of environmental performance as a key indicator of long-term success and sustainability.  

The markets are changing. Over two hundred companies have made commitments to phase out of ‘bad’ wood, variously defined as ancient forests, old growth or endangered forests and to give preference for products certified by the Forest Stewardship Council.  A 2003 report by IBM Business Consulting Services that surveyed 30 large corporate buyers of Canadian forest products discovered clear evidence that environmental criteria now play a key role in purchasing decisions, calling it a “greenward shift” in the market for forest products.

 “The shift is real, buyers believe it will continue, and we believe it will have a negative impact on forest regions and producers that do not respond to it.” IBM, 2003.

The financial sector has also become increasingly vocal with new policies by Citigroup, HSBC, Bank of America and JP Morgan Chase.

“Where customers do not have FSC or equivalent certification and are not taking credible action to achieve this, we will consider measures to exit such relationships.” HSBC Bank.

However, Ontario seems oblivious to this greenward market shift.
Clearly this is a dire environmental concern, but it is also economic. The two increasingly in forestry cannot be separated.

Ontario is home to 58 million hectares of forest. The Boreal Forest accounts for the vast majority of Ontario’s forest lands, 49.8 million hectares of the province.   Between 1951 and 1995, 6.6 million hectares of forest were harvested in Ontario by clear cutting. The rate of logging has steadily increased and today almost 200,000 hectares are logged every year. 

In 2002, the practice of clear cutting in Ontario was placed under close scrutiny in a report of Ontario’s Environment Commissioner who termed it, “an experiment on a massive scale” and observed that it was well documented that boreal forests were undergoing significant species conversion with clear cutting one of the main causes. The commissioner warned, “The continued commitment to clear cutting large areas of the original forest seems to run a great risk that that conversion will continue.”  Premier McGuinty has promised to “end the [previous governments] policy of allowing unlimited size clear cuts in Ontario. These massive clear-cuts cause irreparable damage to our forests.” Yet, today clear cutting accounts for 90% of all the logging in Ontario.

Meanwhile, demand for FSC products is skyrocketing.  In fact, the market for ‘sustainable products’ estimated at $227 billion this year in the United States is projected to reach $1 trillion annually by 2020. The global market for products certified by the Forest Stewardship Council is now estimated in excess of $5 billion US.

At the same time, acceptance of products from controversial practices or places is at an all time low. By moving towards Forest Stewardship Council certification, the only certification system endorsed by the majority of conservation organizations and indigenous groups worldwide, and supporting measures to ensure good conservation planning and full protection for threatened species, Ontario’s forest companies can capture a growing green market that will support the transition to long-term sustainability.

Tembec and Domtar have already both committed themselves to securing FSC certification for their forestry operations. As a result, companies like Home Depot  have increased their consumption of products from these companies.

 “By adhering to a standard that respects the values of all forest users, including the First Nations, we believe that the public, governments, customers and investors will also see it as a serious commitment to ensure the sustainability of our operations,”
-Raymond Royer, President and CEO, Domtar Inc.

 “FSC brings key players to the table, giving them a voice to find solutions. Our use of FSC standards puts us at the forefront of demonstrating to customers that we practice responsible forestry.”
-Frank Dottori, CEO, Tembec Inc. 

“As part of Lowe’s ongoing commitment to environmental sustainability and social responsibility, it is our full intention to eliminate sales of wood from environmentally threatened forests, including old growth.” 
Dale C. Pond, Executive Vice President, Lowe’s.

It is clear that Ontario’s forest industry is at a crossroads. In order to chart a sustainable path forward Ontario must address unsustainable harvest rates and the growing need for comprehensive conservation planning and protection of threatened species. Key opportunities for the industry exist in capturing growing green markets though FSC certification, investing in value added and economic diversification, exploring alternative fibre sources and renewable energy and energy conservation.

In the past, the far northern reaches of Ontario’s Boreal Forest have been considered too remote and the forests too uneconomical to log. Ontario’s northern boreal represents one of the last, big wilderness areas in the world. Today however, the vast forests north of the 51st parallel, currently unlogged and without roads are under threat. However, the federal and the provincial Ontario governments, as well as some First Nations communities have stated that they are committed to industrial expansion in the northern boreal. This area is the traditional territory of many First Nation communities with aboriginal and treaty rights over these areas and that rely on them for their livelihood. Any decisions about how these northern Boreal Forests in Ontario are to be used must respect aboriginal and treaty rights.

Done right, Ontario has a tremendous opportunity to ensure that this expansion supports local communities and ensures enough intact forest to maintain ecological integrity and cultural values as well as threatened species such as the woodland caribou.  Done poorly and without proper conservation planning that includes the establishment of large areas off limits to industrial use, this expansion will be ecologically devastating and economically short sighted.