The Path forward for a Forest Bioeconomy Framework for Canada: The Role of the CCFM
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1 1 The Path forward for a Forest Bioeconomy Framework for Canada: The Role of the CCFM Matthew Bock, NRCan, CFS Biomass North AGM and Forum October 25, 2016
2 2 Current challenges driving future change Since 2007, the forest sector has faced significant cyclical, structural, and environmental pressures: Appreciating Canadian dollar Collapsing newsprint demand Global recession Insect infestations (e.g. SBW and MPB) Increasingly complex societal, trade, and environmental context in which we operate: Expanding global middle class with new product demands Forest products recognized as sustainable and climate change mitigation options 2
3 North America Newsprint Demand 3 For example Newsprint gone? Fires to increase?
4 4 Canadian Forest Industry A lot to be proud of Sustainable producers of forest products Environmental : Social : Economic A growing culture of transformation Most companies are pushing a new product Continuing a tradition of innovation on cost Industry size - + Graphic paper -- N/A Bioeconomy + +++
5 5 What is the bioeconomy Bioeconomy: The economic activity generated from the conversion of renewable biological resources (e.g., biomass derived from forestry and agricultural sources) into value-added bio-based products, including bioenergy. Biomass For the production of value added products. food, feed, bio-based products and bioenergy Through scientific advances life sciences, agronomy, ecology, food science, biotechnology, nanotechnology, and engineering 5
6 6 The forest bioeconomy: Canadian context Canada has a clear and present opportunity to provide global leadership in the bioeconomy. 9% of world s forests, 43% of global certified forests 1.2% of GDP, 7% of all exports 348 M ha of forest 161 M ha certified To address current issues: Climate change mitigation, Trade vulnerability Sustainable resource management Creation of clean jobs Competitiveness Less than 0.05 M ha deforested Source: State of Canada s Forests Report,
7 7 Canadian Council of Forest Ministers Since 1985, the CCFM brings together federal, provincial, and territorial ministers Promote cooperation between governments and other ministerial councils Develop and maintain the scientific information base Demonstrate international leadership Promote forest management Share information on issues impacting on the forest sector Provide a framework within which agreements can be signed and implemented CCFM released the Innovation Action Plan ( ) in June 2016 Three Pillars: collaboration, engagement, and mobilization Commitment to develop a Forest Bioeconomy Framework for Canada CCFM is engaging stakeholders through through engagement sessions & collaborative dialogues Canada is current chair Next Ministerial in Ottawa, September
8 8 New products, end-uses, and destinations New products Bioeconomy Biofuels Bioplastics Pellets / BioChar Off-shore trade Asia China trade has grown 1400% in a decade GROWING THE PIE Non traditional construction Midrise Tall Wood Bridges New mechanisms: support market entry and access for established companies, SMEs, domestic markets, international supply chains to diversify products & technologies
9 9 Our innovation has been successful Projects have strong returns Dozens of projects with ROI s > 20% Examples of success include: Lignin: FPInnovations TBay pilot WestFraser s plant & plywood Cellulose Fibrils: from lab to new products in less than four years Advanced Building Systems: building on CLT, wood panels and engineered beams with tall wood buildings and building codes Cellulose Fibrils 9
10 10 and is catalyzing regional opportunities Domtar Dryden producing enhanced softwood pulp fibre additive in traditional papers and in nontraditional markets, such as fibre reinforcement for cement and fiberglass Resolute /FPInnovations Thunder Bay lignin extraction pilot plant prove out the concept leading to full commercial scale plant Ensyn Renfrew wood-based biofuels from pyrolysis technology High replicability potential and interesting opportunity Whitesand First Nation community sustainability Initiative forest bioenergy and biomass operation that will displace diesel to electrify three Indigenous and non-indigenous communities Project-by-project, our partnerships and collaborations are advancing the bioeconomy 10
11 11 but there still has room to grow In spite of efforts and successes, top Canadian companies are trending down in R&D spending Canada s innovation is ranked C (2014, Conference Board of Canada) Canada invests roughly 1.6% of GDP in R&D compared to 2.4% OECD average (2014) Companies face challenges progressing along the innovation chain Need to capture momentum by aligning and coordinating to mobilize the forest bioeconomy and adapt to new environmental and social pressures Research and development Pilot and demonstration Scale-up and commercialization Market access and development 11
12 12 Bioeconomy benefits hinge upon The sustainability of biomass supply Environmental The eco-credentials of bioenergy and bioproducts Livable Viable The economic competitiveness of bioenergy and bioproducts The alignment and coordination of actors across the forest sector Socially acceptable Implementation Equitable Economic 12
13 13 CCFM: mobilizing innovation through alignment Aligning stakeholders Capitalizing on competitive strengths Creating and realizing opportunities Evolving while providing continuity Forming collaborative partnerships Fostering an innovative culture Making strategic investments 13
14 14 Key questions Scope of the bioeconomy Role for the forest sector Critical success factors to advance the bioeconomy 14
15 15 ANNEX 1: Charting the path forward what we ve heard September 2016 Forest Innovation Workshop 60+ participants from industry, academia, and P/Ts Key elements identified for a forest bioeconomy framework for Canada: Addressing regulatory barriers De-risking investments Communicating opportunities Research and development funding Stakeholder collaboration and alignment Ownership and intellectual property challenges 15
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