The Forest Bioeconomy in Ontario

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1 The Forest Bioeconomy in Ontario -- A policy discussion Natural. Valued. Protected. Presented by Jonathan Halasz, MNRF

2 Presentation Overview Why this discussion? Goals and methodology Classifying the bioeconomy and its policies Research findings

3 Why this discussion? Markets for traditional forest products have been in decline since the mid-2000s. FPAC: let s generate $20 billion in economic activity from new innovations and new markets by Policy will play an crucial role in making these goals a reality.

4 Why this discussion? The bioeconomy business is booming globally. As a heavily forested nation, and province, this presents an immense opportunity that we seem to be missing out on. MNRF staff were interested in improving understanding about the distribution of relevant policies across Canada, and in other jurisdictions.

5 Goals for Research There were two primary questions MNRF staff were interested in clarifying through their research: 1. How robust is the distribution of policies and programs relevant to the development of the forest bioeconomy? 2. What types of initiatives are utilized in other more established jurisdictions to foster a viable forest bioeconomy?

6 Ontario s Forest Bioeconomy

7 Discussion Paper Methodology Forest Bioeconomy Definitions Role of Policies to Support Bioeconomy Policy Classification Domestic Policies & Programs Targeted Bioproduct Type of Policy Initiative Targeted Section of Value Chain Jurisdictional Scan & Comparison Conclusions and Recommendations

8 Forest Bioproducts Bioproducts are goods made in part, or in whole, from organic biomass. Forest bioproducts are generally classified as either biochemicals, biomaterials, or bioenergy. They are derived from production by-products, and forest fibre which is generally not used in conventional production processes.

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10 Policy s Role Government policies and programs can have a large influence in the uptake of new products or industries. As a unique and innovative cross-sector industry, the bioeconomy s development requires a holistic view of its complex interrelationships, and effective policies to support them.

11 Classifying Policy Tools Given the complex nature of the bioeconomy, it shouldn t be surprising that there are a wide range of policy tools that can influence bioeconomy activities. Identified policy instruments available to decision-makers are: Financial Incentives Research Support Information programs Procurement, demonstration, and pilot programs Regulations, standards and guidelines

12 Bioeconomy Value Chain Government policy, forest tenure system, incentives and subsidies that impact the supply and cost of intermediate inputs UPSTREAM Government policy, incentives and subsidies that impact the supply and cost of factor inputs MANUFACTURING Woody material feedstock Energy Other Bio-refinery Labour Capital Land Subsidies and incentives for production and storage of bio-products D E L I V E R Y Subsidies and incentives for R&D Subsidies and incentives for purchase and consumption of bio-products C O N S U M P T I O N Government targets for use of bio-products End User Production Consumption

13 Policies by Bioproduct Policies by Product Target Fuel Electricity Heat Chemicals & Materials ***due to the high volume of poliices and programs relating to bioenergy in Ontario, MNRF staff decided to split the category into three component parts: fuel, electricity, and heat.

14 Policies by Instrument Financial Incentives Policies by Instrument Research Support Information Programs Procurement Regulations

15 Policies by Segment Target Policies by Value Chain Target Upstream Manufacturing Delivery Consumption

16 Domestic Observations Policies are focused toward fuel & electricity Policies are focused toward research and financial incentives Policies are focused toward manufacturing and delivery

17 Jurisdictional Trends Cluster development Promotion of multiple types of bioproducts Focused innovation centres Emphasis on collaboration between publicprivate organizations Consumption as well as R&D focus More aggressive procurement plans Strategic vision and plan for development of the forest bioeconomy.

18 Recommendations A comprehensive bioeconomy strategy is needed to set out a vision for the direction of Ontario s bioeconomy and to help fill gaps in the bioeconomy value chain. Government industries whose mandates overlap should collaborate more to improve focus and bioeconomy outcomes. Ontario needs bioeconomy actors across the forest sector both in industry, and outside, to act as champions for the bioproduct sector. Policies must diversify targets.

19 Ongoing Initiatives Climate Change Action Plan

20 Thank you! Questions? Jonathan Halasz Forest Innovation Policy Intern Ministry of Natural Resources & Forestry

21 All photos courtesy of MNRF, except cover photo, provided by S. van der Wel under Creative Commons Attribution-Share Alike 2.0 Generic License. Available online from: