INVESTMENT PLAN FOR WOOD AS A SUSTAINABLE BUILDING MATERIAL

Transcription

1 INVESTMENT PLAN FOR WOOD AS A SUSTAINABLE BUILDING MATERIAL APRIL 2010

2 CONTENTS 1. OBJECTIVE CORE VALUE PROPOSITION INTRODUCTION ENVIRONMENTAL REGULATIONS OVERVIEW ENVIRONMENTAL MEASUREMENT OVERVIEW MARKET VERIFICATION OVERVIEW MARKET IMPACT ON WOOD PRODUCTS GOALS & DELIVERABLES A. CARBON B. ENERGY EFFICIENCY REGULATIONS C. LIFE CYCLE ASSESSMENT D. CERTIFICATION E. ECO-MARKETING F. INDUSTRY ACTION GOAL PRIORITIES & TIMING PRIORITIES SUMMARY & BUDGETS PLAN REVIEW AND EVALUATION OF GOALS OUTCOMES FOR FUTURE USE OF WOOD PRODUCTS... 27

3 1. OBJECTIVE To increase the market share for wood products by preferred specification and by mandatory building codes and other regulatory requirements for sustainable building materials in residential and commercial construction. 2. CORE VALUE PROPOSITION The core value for wood products as a sustainable building material is the link between CO2 emissions and carbon stored in wood. Growing trees absorb CO2 and through the process of photosynthesis store the carbon and release oxygen to the atmosphere, with the carbon continuing to be stored for the life of wood products. This value proposition is an important component in many of the plan initiatives to achieve recognition of these fundamental environmental benefits. 3. INTRODUCTION The residential and commercial building sector is currently changing to meet environmental concerns including climate change mitigation, greenhouse gas emission reduction, energy efficiency, carbon pollution reduction, most of which can be generally embraced under the topic heading of sustainable building. This investment plan is intended to maintain and increase the use of all solid timber, reconstituted and engineered wood products in framing and other applications to meet the emerging requirements for environmental performance of building products in the construction of residential and commercial buildings. The intention of the strategy is to ensure that changes in regulations and environmental assessment will favour the rating of wood products in sustainable construction, ensure there is no reduction in competitiveness, and create opportunities from improved assessment outputs to increase usage of wood products in future sustainable building construction. Interpretation of terminology for carbon related environmental issues varies according to the topic area as outlined in this plan, however the broad descriptions used are CO2 emission reduction when referring to building regulations, embodied CO2 impact for building material assessments, and

4 carbon storage when referring to wood product benefits. Currently they may be acknowledged separately, but all these factors are embraced by the Life Cycle Assessment process. As the environmental landscape is rapidly evolving in awareness of climate change in the development of government regulations, environmental assessment, and commercial sustainability activities, this plan will be subject to regular review and updating to meet the emerging market needs. 4. ENVIRONMENTAL REGULATIONS OVERVIEW The pre-eminent national building regulation framework is the Building Code of Australia (BCA) which covers all building construction and includes housing energy efficiency regulations. However, most states have adopted variations to the BCA which are not all favourable in regard to the environmental assessment of wood products. The BCA also identifies sustainability as a core goal, although the requirements are not yet implemented. Initially, energy efficiency regulations were introduced for CO2 emission reduction, however their focus has been on operational energy impact to improve the thermal performance of a building, thereby reducing the amount of heating/cooling energy required, and reducing future CO2 emissions. These regulations ignore the embodied energy of manufacture and products such as timber which absorb CO2 and store carbon, compared to other building products that are high in CO2 emissions during manufacture. It is broadly intended that the sustainability provisions in the BCA should become nationally accepted in the future, and the emerging environmental landscape will have a significant effect on the BCA requirements for construction of buildings. This will be driven by the current government acknowledgement of climate change and the need to reduce greenhouse gas emissions. Recent initiatives such as the Carbon Pollution Reduction Scheme and the National Energy Efficiency Strategy will lead to regulatory reform, especially in the area of building standards. Future regulations will require a scientifically based process for assessing building materials by the BCA and state regulations, and for environmental assessment tools. With government support the Building Products Innovation Council (BPIC) as the key representative group of the primary building material supply sectors including wood products, is pursuing a whole of life Life Cycle Assessment (LCA) approach to be the measure for all future regulations, rating tools, specifications and procurement documents.

5 International experience supports the LCA approach as the most appropriate methodology with UK, Canada and some EU states adopting LCA in their government regulations. This indicates that LCA is becoming the global standard for assessment, coupled with third-party determination of building material average values in each sector. 5. ENVIRONMENTAL MEASUREMENT OVERVIEW The recognition of environmental values varies considerably amongst the various voluntary rating tools currently available, often with focus on specific issues at the exclusion of others that have an impact on overall values. In this process there are many programs that do not favour wood products due to their limited scope of evaluation. Wood products have high environmental values if whole of life is the basis of assessment. To develop a more appropriate current measurement for wood products in energy efficiency regulations and measurement tools, a whole of life approach is being pursued to improve the contribution by wood products to greenhouse gas emission reduction by carbon storage, and realise lightweight structure benefits over thermal mass in buildings. A program for change is underway to ensure the measurement tools currently available in the market will reflect improved outcomes for wood products assessments. An emerging need for residential building designers is determination of the net carbon footprint for an individual house, and the required wood product life cycle inventory data needs to be available for use in a carbon calculator measurement tool to assist designers. In future environmental measurement, acceptance of an LCA approach will require an agreed consistent LCA methodology and protocol for all building materials. The Australian Life Cycle Inventory (AusLCI) database for all materials used in construction based on third party evaluation is well underway, with the wood products sector leading in preparing its data for inclusion. A fully populated LCI database for national average product group performance and an agreed LCA protocol for sustainable building will then provide the common materials assessment process for all government environmental regulations (BCA, BASIX, local planning, etc); environmental rating tools (GreenStar, NABERS, etc); green specifications (Ecospecifier, Ecoselector, etc); procurement documents; and company product environmental claims.

6 6. MARKET VERIFICATION OVERVIEW Market verification of environmental values is an important requirement to provide adequate assurance to markets of the product certification and environmental credentials of wood products. These demands are currently typified by forestry certification, chain of custody requirements, lawful logging identification, etc. however the new environmental regulations and assessment values will create an even greater need for adequate building product verification. Environmental marketing will become a major requirement for communication of product values to target markets, requiring an industry developed and co-ordinated eco-marketing program. This would include eco-labelling concepts and information developed for specific market sectors to achieve market awareness of the basic issues such as carbon storage and greenhouse gas reductions, supported by comprehensive technical data on the environmental performance of wood products. This is an important market opportunity for wood products which will provide the potential for greater market awareness and subsequent increase in specification of wood products as a sustainable building product. 7. MARKET IMPACT ON WOOD PRODUCTS The wood products industry has a current opportunity to be active in the implementation of this emerging environmental focus by participating in the process of regulatory change, and the development of building product assessment programs. This is essential to ensure a level playing field is established for all building products to ensure the high environmental values of wood products are recognised and included. In addition, commercial activities such as Zero Emission Housing are being developed to benefit from the high priority placed on sustainability by consumers, government, building designers and developers, which are leading to greater awareness of environmental issues in the marketplace. This trend is increasing, and the wood products industry needs to participate and keep pace with the major changes that are underway, and be pro-active in representing its environmental values. The SWOT analysis and goals stated in this plan are to direct the assessment of wood products to take into account these environmental values, which will

7 influence greater recognition of wood products contribution to sustainable building. The impact on short term demand will be for increased use in sustainable residential construction, and longer term increase when more favourable building regulations and environmental assessment processes become mandatory. Other components of the plan recognise the requirement for active industry participation and more research and technical data to be developed on wood products. This is to meet the needs of environmental measurement and assessment and will be used in the process of establishing the new regulations and comparative values to other building products to ensure the outcomes provide a competitive advantage to wood products. The market impact from environmental regulations can be highly significant. An example is the regulations introduced in UK in 2006 which has led to continued growth with an increase of timber framed housing in 2007 of 11% in one and two storey houses, and 28% in commercial buildings. This outcome was described as coming from timber frame s ability to comply with, and often exceed, the current and future requirements of Building Regulations and the low carbon aims of the Code for Sustainable Homes. Other countries such as Canada and some EU states have observed similar market expansion from the introduction of sustainability regulations, and the NZ timber & wood products procurement policy has also increased use in government buildings. This international experience indicates the potential importance of environmental policies and regulation to wood product markets. Contained in this plan is an assessment of likely future outcomes for use of wood products in sustainable building construction, and the positive market share growth potential from implementation of the strategies contained in the plan.

8 TABLE 1: INVESTMENT PLAN SWOT ANALYSIS & GOALS MATRIX OPPORTUNITIES (EXTERNAL) STRENGTHS (INTERNAL) STRATEGIC INITIATIVES THREATS (EXTERNAL) WEAKNESSES (INTERNAL) STRATEGIC DEFENCE A. CARBON High public interest in carbon and climate change impact issues. Carbon Pollution Reduction Scheme has potential to increase cost of energy intensive building products compared to wood products. Current interest by designers and builders to analyse the carbon footprint for building designs. Wood products store carbon helping to reduce atmospheric CO2 and lessening climate change impact. Wood products have lower embodied energy (and carbon emissions) compared to some other building materials. Raised awareness of the carbon benefits of wood products from the Wood. Naturally Better. campaign. A.1 Develop a carbon calculator for wood products in housing. A.2 Develop a program to demonstrate to designers and builders how they can increase carbon storage by using more wood in sustainable buildings. A.3 Promote to consumers and specifiers the carbon storage benefits of wood products. International carbon trading rules do not recognise carbon stored in wood. Current Zero Emission House (ZEH) initiatives in Australia follow international approach and only focus on operational energy. Competitive building product sectors may develop community awareness programs unfavourable to wood product carbon benefits. Fragmentation of wood products industry compared to some other materials (eg. steel) diminishes influence with government. FWPA has limited R&D and promotional budget. FWPA is excluded from lobbying government bodies under the restriction on agripolitics. FWPA activities are usually focussed within the sector and often do not leverage other stakeholder initiatives. F.1 Lead industry group to work with Australian government and international forest industry groups regarding carbon trading rules. F.1 Lead industry group to build relationships with other key stakeholders to identify and leverage opportunities.

9 OPPORTUNITIES (EXTERNAL) STRENGTHS (INTERNAL) STRATEGIC INITIATIVES THREATS (EXTERNAL) WEAKNESSES (INTERNAL) STRATEGIC DEFENCE B. ENERGY EFFICIENCY REGULATIONS Interest by Federal and State governments to utilise a more holistic approach to second generation energy efficiency regulations. Potential for State government acceptance of embodied energy inclusion in star ratings to increase usage of wood products. Lightweight structures using wood products can be more energy efficient than heavy mass materials. State governments, particularly in Queensland, have opened up opportunities for acceptance of lightweight construction. B.1 Building regulations to include Life Cycle B.2 Building energy rating tool (star ratings) B.3 Building site constraint factors for energy rating B.4 Thermal mass in timber buildings B.5 Energy efficiency in timber buildings Operational energy is easier for consumers to understand. Other material groups have a commercial advantage in promoting operational energy. State governments may increase sustainable building regulations for star ratings beyond agreed national levels for operational energy requirements. No organisation within the wood products sector has a mandate to influence energy regulations or LCA rules. FWPA is excluded from lobbying government bodies under the restriction on agripolitics. Industry may not appreciate the major market impact of energy efficiency regulations on wood product usage in the future. F.1 Lead industry group to be adequately resourced to ensure implementation of acceptable changes to energy regulations and LCA rules.

10 OPPORTUNITIES (EXTERNAL) STRENGTHS (INTERNAL) STRATEGIC INITIATIVES THREATS (EXTERNAL) WEAKNESSES (INTERNAL) STRATEGIC DEFENCE C. LIFE CYCLE ASSESSMENT The AusLCI and BPIC processes could assist in the adoption of full Life Cycle Assessment approach in current and future building regulations. Regulatory use of LCA will reduce influence of voluntary environmental measurement tools. In a full Life Cycle Assessment international experience shows wood products rate better than competitive materials. Australian wood products Life Cycle Inventory data now available as prepared by a third party (CSIRO) for undertaking Life Cycle Assessment. Wood products high positive end-of-life market opportunities (reuse, recycle, biomass energy recovery) C.1 LCA for building materials assessment C.2 LCA for residential construction C.3 Additional LCI data for wood products Competitive building material sectors may reject BPIC development of LCA process. Government regulators may reject adoption of full LCA approach in the Building Code of Australia. Other building material groups may increase LCA weighting away from carbon to other environmental values If mandatory LCA only includes operational energy not whole of life - wood products will be disadvantaged against competitive materials. The role of biodiversity in LCA is yet to be clarified which may influence wood product assessments. State Governments are increasing their product stewardship and extended producer responsibility requirements A Life Cycle Assessment for Australian buildings not yet undertaken to confirm LCA outcomes using available LCI data. Inadequate information on wood products service life and maintenance requirements. Wood product values may be diminished by maintenance factors and end-of-life contamination, chemical treatments and paints. End of life and re-use volumes for wood products are poor compared to other building materials Wood products representation in BPIC and negotiation of building material outcomes will require overall industry support and agreed input. C.4 Biodiversity surrogate study C.5 Voluntary environmental check lists C.6 Post-consumer opportunities C.7 Verification of environmental claims

11 OPPORTUNITIES (EXTERNAL) STRENGTHS (INTERNAL) STRATEGIC INITIATIVES THREATS (EXTERNAL) WEAKNESSES (INTERNAL) STRATEGIC DEFENCE D. CERTIFICATION Independent, third party certification is likely to be a requirement of all building products in the future Wood products are further advanced than many other building material groups. Third party verification of sustainable source claims are in place forest certification schemes apply to most Australian and some imported wood products. D.3 Forest certification Chain of custody certification and compliance along the full supply chain may be forced on wood products by regulators which may incur high costs. Imported timber from non-certified forests may influence the assessment of wood products. Chain of Custody Certification for wood products not yet fully implemented. Capability of wood products distribution chain to supply ecologically specified products to meet market demand. D.1 Chain of Custody certification D.2 Lawful logging identification D.4 Distribution chain development E. ECO-MARKETING Eco-marketing programs for wood products will enable communication of environmental values and benefits. Inclusion of wood product environmental values in the future National Construction Code. Existing wood products are already suitable for sustainable buildings. Existing international programs for wood products in sustainable buildings available for use in Australia E.1 Eco-labelling program E.2 Eco-marketing promotions Lack of agreed national standard for Ecolabelling schemes. Major non-wood building material sectors may be given an advantage by concessions in environmental regulations. Industry may not adopt eco-marketing and eco-labelling as an opportunity for market communication and product acceptance. Eco-labelling schemes may be biased unless agreed national standard introduced. F.1 Lead industry group be adequately resourced to ensure implementation of acceptable national standards for ecolabelling.

12 OPPORTUNITIES (EXTERNAL) STRENGTHS (INTERNAL) STRATEGIC INITIATIVES THREATS (EXTERNAL) WEAKNESSES (INTERNAL) STRATEGIC DEFENCE F. INDUSTRY ACTION Influence the process of regulatory change and assessment to enhance the recognition of wood product environmental benefits Wood products store carbon helping to reduce CO2 and lessening climate change impact. Wood products have lower embodied energy compared to some other building materials. F.2 Communication to generate awareness within industry. Other building material groups may gain benefits through strong representation to improve their environmental values assessment. Currently no coordination of industry representation and participation in development of regulations and environmental assessment of building materials. Communication of progress in development of sustainable regulation is required for industry awareness and support. F.1 A lead industry group for wood products in sustainable building be created and adequately resourced

13 8. GOALS & DELIVERABLES A. CARBON A.1. Carbon Calculator for housing Goal to develop a simple tool that can be used by builders, designers and industry for assessing the embodied carbon footprint of residential housing designs to determine the impact on CO2 emissions by using different building materials compared to the carbon storage benefits of wood products. Issue current national regulation requires the reduction of CO2 emissions, but the initial response by regulators has been to focus on energy use during the operational phase of the building. A tool that measures the carbon footprint including embodied carbon will demonstrate positive wood product benefits over other non-wood materials. Deliverables a carbon calculator tool that can be used as a standalone resource or as an add-on module to the current second generation operational energy AccuRate based rating tools to be used by builders, designers and energy raters to assist in assessing building material choices to maximise wood products usage. A.2. Carbon Storage Housing Goal to create an understanding by designers, builders and regulators that carbon storage in wood products used in residential housing assists in reducing net CO2 emissions, providing an additional benefit beyond the current operational energy focus of Zero Emission Housing (ZEH) initiatives. Issue The concept of wood stores carbon to reduce net CO2 emissions is not readily understood by consumers and users of wood products, which requires participation in current CSIRO and government supported ZEH projects for future development of appropriate housing designs with better than net CO2 emissions Deliverables housing designs and technical guides incorporating a range of techniques aimed at achieving better than net CO2 emissions utilising wood products. Design guides to provide practical information on wood products carbon storage benefits beyond ZEH operating energy for inclusion in educational programs to the community and specifiers with potential industry promotions via display house examples.

14 A.3. Carbon storage awareness campaign Goal to create general community awareness that wood products store carbon and help to reduce the impact of climate change due to CO2 emissions. Issue - The concept of wood stores carbon for environmental benefit is not readily understood by consumers and users of wood products. Deliverables current implementation of FWPA Wood Naturally Better communications campaign.

15 B. ENERGY EFFICIENCY REGULATIONS B.1. Building regulations to include Life Cycle Goal influence Building Regulations change to include recognition of the full Life Cycle of greenhouse gas emissions including acknowledgement of carbon storage in wood products. Issue - national regulation to date requires the reduction of carbon, but the response by regulators has been to focus on energy use during the operational phase of the building. Deliverables provide demonstration through independent reports that current state based and national energy efficiency regulations focus only on operational energy and that further reduction in greenhouse gas emissions can be achieved by Life Cycle consideration of the contribution from carbon in manufacture, construction and disposal. B.2. Building energy rating tool (star ratings) Goal to assist in development of a simplified method of recognising the embodied energy impact of building materials that can be used in both a regulatory capacity for star-rating systems, and as an information tool by industry and consumers. Issue environmental tools and check lists to date are based on subjective opinions of the tool providers and may include bias against wood products. A form of acceptable independent measuring outcomes will assist in correcting prejudiced content to enable increased use of lightweight timber frames in construction. Deliverables an independent environmental rating specification for residential building products that is embodied energy focussed to allow the embodied energy benefits of wood products to be recognised. B.3. Building site constraint factors for energy rating Goal to have the environmental benefits of suspended timber floors on constrained building sites recognised in national BCA Energy Efficiency regulations and energy rating tools. Issue current energy rating software penalises lightweight structures made from wood products and favours mass structures. Regions within Australia recognise constrained sites such as sloping, low lying, flood prone and poor geological conditions and provide concessions for these sites.

16 Deliverables evidence to support the inclusion of an adjustment factor in AccuRate energy rating software for lightweight suspended timber floors on constrained building sites. B.4. Thermal mass in timber buildings Goal to establish where and how much additional thermal mass is required in timber framed buildings to have similar benefits when compared to mass structures and have this recognised in government regulations for residential construction. Issue reduced specification and use of lightweight wood products, i.e. flooring and cladding, from mass structure claims of thermal benefits from mass. Deliverables cost effective construction techniques for timber framed structures that incorporate beneficial thermal mass performance to encourage change in regulations. B.5. Energy Efficiency in timber buildings Goal to establish and provide guidance on energy efficiency measures such as solar access, ventilation, insulation, shading and mass to match or improve on mass structure performance. Issue mass building material claims of thermal benefits from the incorporation of mass in structures has a negative impact on the use of lightweight wood products. Developing independent scientific supported guides and measures that show benefits similar or greater than mass materials will increase usage of wood products. Deliverables independent scientifically supported guides on techniques that include energy efficiency measures for lightweight timber building focussing on solar access, ventilation, insulation and shading.

17 C. LIFE CYCLE ASSESSMENT C.1. LCA for building materials assessment Goal for LCA to be recognised nationally for all building materials assessment schemes and regulations, supported by a national LCI database and an LCA protocol for building construction. Issue There is no agreed methodology for assessment of environmental claims for building systems and they cannot be measured comparatively. The environmental benefits of wood products will be recognised from an agreed methodology for the materials assessment process (LCA) through an industry supported process, with national average values developed (LCI) for Government environmental regulations, environmental rating tools, green specifications, and procurement documents. Deliverables the most favourable position for wood products in the assessment of building materials through active industry participation in the BPIC project for LCA/LCI protocol and methodology for future building materials assessment. C.2. LCA for residential construction Goal to compare the environmental performance of wood products by LCA techniques in typical residential housing construction for various climatic conditions throughout Australia. Issues information that supports the environmental credentials of wood products in residential construction is currently not available in a form adequate for the LCA assessments to be developed. Deliverables a detailed comparison of the environmental impacts including embodied and operational energy, for different types of construction over the life of houses in various Australian climatic conditions, using a range of LCA environmental metrics to determine the likely values and sensitivity analysis for future LCA outcomes. C.3. Additional LCI data for wood products Goal identify what gaps in knowledge exist in full life cycle assessment for wood products including LCI data not available. Issues - LCA methodologies make assumptions on many aspects such as product and building life, maintenance requirements, operational issues, etc. For timber structures there is very little scientific independent support information available that supports wood products.

18 Deliverables independent scientific research that fills the gaps in timber use in LCA, including understanding of key metrics affecting timber and wood products in LCA additional LCI data on wood products for inclusion in the national AusLCI database for use in future full LCA assessments, eg treated timber information to support the service life of wood products expected life of cladding, house frames, etc. realistic information on the maintenance requirements for wood products C.4. Biodiversity surrogate study Goal to determine a more equitable metric for biodiversity than only land use in current Life Cycle Assessment methodologies. Issue currently there is no agreed approach to defining biodiversity in LCA which may be filled with metric not be beneficial to the timber industry. Deliverables independent scientific research that supports a more holistic approach to biodiversity to improve forestry impact ratings for wood products performance in future LCA s. C.5. Voluntary environmental check lists Goal understanding of current and proposed environmental check lists and assessment of their affect on the use of wood products. Issues there are many existing mandatory and voluntary environmental check lists that have measurement of wood product values that are inconsistent. These inconsistencies affect wood product use and specification. LCA techniques will affect this in time, but much damage could occur prior to LCA becoming more widely available and accepted. Deliverables a plan and supporting scientific evidence for greater acceptance of wood product environmental values in environmental check lists that is not dependent on LCA techniques. C.6. Post-consumer opportunities Goal improve recovery and reduce environmental impact of postconsumer wood. Issue LCA techniques require the consideration of the whole of life of products, and wood has a great story in manufacturing and use but is presently poor in disposal or reuse. Competing non-wood building materials have better claims to recycled and reuse than wood products allowing greater opportunity for their environmental claims. In addition, state governments around Australia are focussing on reducing the disposal of post consumer wood at landfills.

19 Deliverables activities and processes that lessen the barriers and enhance the reuse of post-consumer wood products, and encourage improvement in annual data collection on recovery of post-consumer wood. C.7. Verification of environmental claims Goal establishment of nationally agreed methodology for environmental claims by manufacturers of building materials, products and systems. Issue building material environmental claims, labelling and declarations are becoming more common. Many are self declarations utilising biased information to support their claims or by organisations that have prejudiced views on wood. As with the development of LCA there is a need to ensure national scientific supported agreed methodologies are used in making any environmental claims. Deliverables Methodology for evaluation of claims for individual products with performance differences to the national average values in the LCI database, to ensure environmental claims are correctly assessed. Protocols and rules to governing use of LCI data Acceptance by government regulators that the methodology and rules are acceptable D. CERTIFICATION D.1. Chain of custody certification Goal to manage the introduction of chain of custody certification along the supply chain for Australian produced and imported wood products. Issue with the acceptance of verification of product claims such as forestry certification, compliance to environmental standards, claims of lawful procurement, there will be a need to track the product through the supply chain. Influencing the appropriate level of review will minimise the expense incurred by the industry and its customers. Deliverables a fully implemented chain of custody system for wood products that is understood by the design and supply chain, is industry-driven and not forced by government or environmental groups, and is flexible to include other verification that may be required in the future.

20 D.2. Lawful logging identification Goal to assist with the national adoption of agreed methods to identify lawfully procured local and imported timber and wood products. Issue Government focus on ensuring wood products are lawfully procured is difficult to implement as there are no agreed methodologies. As the availability of evidence of lawfulness varies from the source countries there is no one method available to utilise. Deliverables a nationally accepted method of identifying lawfully procured timber and wood products including management of introduction into the supply chain. D.3. Forest certification Goal national adoption by all producers and markets of industry-acceptable forest certification schemes for environmental assessment of wood products. Deliverables acceptance of wood product forestry values in all environmental regulations and rating tools to improve comparisons to competitive materials for greater specification of wood products. D.4. Distribution chain development Goal capability of timber market segments to obtain ecologically verified wood products through the supply chain. Deliverables development of distribution chain capability for supply of ecologically specified wood products to meet increasing market demand for sustainability.

21 E. ECO-MARKETING E.1. Eco-labelling program Goal to assist in the establishment and implementation of an independent nationally agreed eco-labelling program that provides manufacturers with a scheme to promote verification of their wood product environmental values to specifiers and consumers. Deliverables an initiative for wood products manufacturers to communicate their particular environmental attributes to consumers and specifiers and to promote wood products as verified environment friendly products in the marketplace. E.2. Eco-marketing promotion Goal to create building designer and specifier awareness that wood products store carbon to improve building environmental performance ratings. Deliverables - to undertake a marketing and promotion program that generates acceptance and specification of wood products to increase market share for wood products in residential and commercial buildings

22 F. INDUSTRY ACTION F.1. Lead industry group Goal for the formation of a lead industry group to adequately represent the wood products industry in support of sustainability driven changes to regulations and determination of new methodologies, assessments and standards. Issue currently the industry is fragmented and there is no single group to nationally represent wood products in the development of government regulations or building codes, and specifically the development of wood products values in the BPIC outcomes. Industry representation is essential for the environmental values of wood to be acknowledged from active participation in these processes, and should also assist industry understanding and acceptance of the outcomes from the various organisations and government departments involved in the process of change in the transition to sustainable building requirements. Deliverables establishment of a broadly representative industry structure to deliver a single voice for wood products as environmentally beneficial materials in future regulations and assessments of sustainable building material performance, to achieve the maximum market opportunities for all wood product sectors. F.2. Communication Goal to establish engagement and communication with the wood products industry to generate awareness of the process for change and future implementation of new regulations and assessments for sustainable building materials. Issue as the development of regulations and assessment of individual wood products will have impact on the wood products industry, there is a need for communication to assist understanding the likely outcomes and opportunities that may emerge from the changes to be implemented. Participation by producers and others in the industry will assist effective engagement in the process development. Deliverables a high level of awareness by the wood products industry of the impact from regulatory changes and potential market opportunities available from sustainability in residential and commercial construction.

23 9. GOAL PRIORITIES & TIMING GOAL A. CARBON PRIORITY RATING TIMING A.1. Carbon Calculator for housing 1 Jul A.2. Carbon Storage Housing 1 Jul A.3. Carbon storage awareness campaign 1 Current B. ENERGY EFFICIENCY REGULATIONS B.1. Building regulations to include Life Cycle 1 Jul B.2. Building energy rating tool (star ratings) 1 Jan B.3. Building site constraint factors for energy rating 2 Jul B.4. Thermal mass in timber framed buildings 2 Jul B.5. Energy efficiency in timber buildings 2 Jul C. LIFE CYCLE ASSESSMENT C.1. LCA for building materials assessment 1 Current 2012 C.2. LCA for residential construction 1 Jul C.3. Additional LCI data for wood products 1 Jul C.4. Biodiversity surrogate study 1 Jul C.5. Voluntary environmental check lists 2 Jul C.6. Post-consumer opportunities 2 Jul C.7. Verification of environmental claims 3 Jul D. CERTIFICATION D.1. Chain of custody certification 1 Jul D.2. Lawful Logging identification 1 Jul D.3. Forest certification onwards D.4. Distribution chain development onwards E. ECO-MARKETING E.1. Eco-labelling program onwards E.2. Eco-marketing promotion onwards F. INDUSTRY ACTION F.1. Lead industry group onwards F.2. Communication onwards

24 10. PRIORITIES SUMMARY & BUDGETS PRIORITY 1 & 2 GOALS ONLY PRIORITY 1 GOALS Budget 2009/10 Budget 2010/11 Budget 2011/12 A.1. Carbon Calculator for housing 150,000 50,000 A.2. Carbon Storage Housing 50,000 50,000 50,000 A.3. Carbon storage awareness campaign B.1. Building regulations to include Life Cycle 75,000 75,000 75,000 B.2. Building energy rating tool (star ratings) 50,000 75,000 50,000 C.1. LCA for building materials assessment 100, , ,000 C.2. LCA for residential construction 100, , ,000 C.3. Additional LCI data for wood products 100, , ,000 C.4. Biodiversity surrogate study 50,000 50,000 50,000 D.1. Chain of custody certification 75,000 75,000 D.2. Lawful Logging identification 75,000 75,000 75,000 PRIORITY 2 GOALS B.3. Building site constraint factors for rating 50,000 50,000 B.4. Thermal mass in timber buildings 50,000 50,000 B.5. Energy efficiency in timber buildings 50,000 50,000 C.5. Voluntary environmental check lists 50,000 50,000 50,000 C.6. Post-consumer opportunities 5,000 75,000 75,000 C.7. Verification of environmental claims 50,000 50,000 50,000 D.3. Forest certification 25,000 25,000 Budget cost totals ($) 1,150,000 1,100, ,000 Management and Contingencies ($) 345, , ,000 Note: The priority 3 goals are not included as they have yet to be fully evaluated for resources required and budget costs

25 11. PLAN REVIEW AND EVALUATION OF GOALS The intention of this investment plan outlined in the vision and mission statement is to increase the market share for wood products by preferred specification and by mandatory building codes and other regulatory requirements for sustainable building materials in residential and commercial construction. The goals have been grouped under topic headings that define the primary areas considered in the plan, and the review of plan performance can be linked to these basic topics. In addition, the goals have been prioritised to ensure the focus in plan implementation is maintained on goals that have the greatest impact on achieving the outcome in the vision and mission statement. Future plan review could be assessed initially on the priority 1 and 2 goals performance measurement as follows: A. CARBON A.1. Carbon Calculator for housing completion of software and use of program for housing carbon calculation by target markets A.2. Carbon Storage Housing completion of housing designs and technical guides for achieving better than net CO2 emissions utilising wood products. A.3. Carbon storage awareness campaign current implementation of FWPA Wood Naturally Better communications campaign. B. ENERGY EFFICIENCY REGULATIONS B.1. Building regulations to include Life Cycle supply of independent reports for energy efficiency regulations to reduce greenhouse gas emissions by Life Cycle inclusion. B.2. Building energy rating tool (star ratings) completion of an environmental rating specification for residential building products that is embodied energy focussed. B.3. Building site constraint factors for energy rating evidence to support an adjustment factor in energy rating software for timber floors on constrained building sites. B.4. Thermal mass in timber framed buildings construction techniques for timber framed structures with beneficial thermal mass performance for change in regulations.

26 B.5. Energy efficiency in timber buildings supply of guides on techniques for energy efficiency measures in lightweight timber buildings. C. LIFE CYCLE ASSESSMENT C.1. LCA for building materials assessment completion of BPIC project with favourable outcomes for wood products assessment. C.2. LCA for residential construction completion of a comparison of the environmental impacts in embodied and operational energy for different types of construction. C.3. Additional LCI data supply of independent scientific research that fills the gaps in timber use in LCA. C.4. Biodiversity surrogate study completion of research and recommendations. C.5. Voluntary environmental check lists - implementation of plan and achievement of changes required in majority (over 5) of voluntary checklists C.6. Post-consumer opportunities preparation of activities and processes that lessen the barriers and enhance the reuse of post-consumer wood products. C.7. Verification of environmental claims - adoption of methodology by LCA practitioners and building materials companies making environmental claims D. CERTIFICATION D.1. Chain of custody certification - implementation of certification for the majority (over 5) of wood products in the supply chain D.2. Lawful logging identification implementation of a method of identifying lawfully procured timber and wood products. D.3. Forest certification - the majority (over 8) of forests to be certified with an industry-acceptable scheme E. ECO-MARKETING E.1. Eco-labelling program - to promote wood products as verified environment friendly products in the marketplace E.2. Eco-marketing promotion - generate acceptance and specification of wood products to increase market share for wood products in residential and commercial buildings

27 F. INDUSTRY ACTION F.1. Lead industry group - establishment of wood products as environmentally beneficial in future regulations and assessment of sustainable building materials. F.2. Communication - a high level of awareness by the wood products industry of the impact from regulatory changes and potential market opportunities available from sustainability in residential and commercial construction.

28 12. OUTCOMES FOR FUTURE USE OF WOOD PRODUCTS Estimates of potential outcomes for wood product markets in 5 years resulting from investment plan influence on markets from implementation (positive outcome) and non-implementation (negative outcome) Wood product Positive outcome Negative outcome Residential housing market Structural timber and engineered wood products Panel products Flooring panel & strip Cladding and linings Fix-out timber and doors Joinery timber Window timber Outdoor timber Multi-Residential market Structural timber and engineered wood products Panel products Flooring panel & strip Cladding and linings Fix-out timber and doors Joinery timber Window timber Outdoor timber Commercial building market Structural timber and engineered wood products Panel products Flooring panel & strip Cladding and linings Fix-out timber and doors Joinery timber Window timber Furniture % +5% +5% % +15% +1 +5% % +15% +5% % +25% +2-5% -5% -1-5% -5% -5% -5% -5% -5% -5%