Industry News

Forest stakeholders call for a stronger EU Forest Strategy to reach UN and Paris Agreement goals

Last December, the European Commission published a progress report on the implementation of the EU Forest Strategy, discussed by the European Parliament in January.

This report comes at a time when forests and the forestbased sector are recognised as essential players in responding to major societal and environmental challenges.

In a round table organised on 4th February, the European forest-based sector conveyed a joint and clear message: an updated and stronger EU Forest Strategy is needed to ensure that in the coming decades forestrelated EU policies are better coordinated and endorse sustainable forest management and the multifunctional role of forests in a consistent way.

Forests and the forest-based sector are increasingly expected to deliver on recent and coming horizontal and sectoral EU policies (e.g: the Renewable Energy Directive; the updated EU Bioeconomy Strategy; the LULUCF Regulation; the future Common Agricultural Policy; Sustainable Investments).

A coalition of forest and forest-based sector associations - including CEI-Bois, CEPF, CEPI, COPA COGECA, EUSTAFOR, UEF and FECOF - have brought together around 60 representatives from EU institutions, the Romanian Presidency of the Council, research and stakeholders to exchange views on the future of the EU Forest Strategy and explore possible ways forward to strengthen sustainable forest management in EU forest-related policies.

During the discussion, several stakeholders highlighted that the Commission progress report refrains from making concrete recommendations for the post 2020 period and reiterated their call for an updated and stronger EU Forest Strategy to provide consistency among EU policies.

Mr Ionel Popa, a representative of the Romanian Presidency, indicated that the Council is working on its conclusions on the progress report that will also cover the role of the EU Forest Strategy beyond 2020. Ms Jytte Guteland, Member of the European Parliament, stated that “the EU Forest Strategy should help to develop common ideas on sustainable forest management in order to ensure consistency when working on EU policies dealing with forests”. Mr Nils Torvalds, Member of the European Parliament commented: “Forestry can play a great role in achieving climate change objectives, but it can’t do this alone.”

 

[News URL: http://cti-timber.org/content/forest-stakeholders-call-stronger-eu-forest-strategy-reach-united-nations-and-paris]

Tree Farm Token project aims to combine technology and forestry investment

The Dominican company Tree Farm Token has launched an international investment project to develop, manage and commercialize a plantation of 2,600,000 mahogany trees on a 2,000-hectare site in the Dominican Republic.

Currently on initial fundraising phase, Tree Farm Token project aims at combining digitalization and forestry. Tree Farm Token commits to grow the trees following an intensive tree management plan, controlled by external auditors and addressed to maximize the commercial wood volume per tree.

In details, the land is planned to be split into 20 self-sufficient farms, managed individually. Tree Farm Token investors buy the trees at an early stage, paying the sowing price. Investors pay no maintenance costs, as the operation is self-financing.

"After 10 years, once mahoganies have reach adult age and cutting size, they will be commercialized in the wood market for a total approx. value of 1,8 billion euros, in a realistic scenario," explain the Tree Farm Token Team. 

Tree Farm Token will manage the sale of adult mahoganies to international wood trading companies, addressing the full profit to pay the investors (owners of the tokens). Tree owners can also sell their trees in regulated online markets before the plants reach maturity.

"Most trees take several years to grow. The long term required for trees to reach maturity and be commercialized is a barrier for some potential investors," says Tree Farm Token CTO Alexis Texeiro. "A new market player aims at demolishing this barrier by digitalizing the trees and trading them in online platforms. This solution brings a liquidity tool for those investors whom would like to make their profits before the trees are sold."

Beyond the commercial implications of the operation, Tree Farm Token project should also bring social and environmental benefits to local communities. "Besides creating around 500 jobs, we have agreed with the Dominican Government to contribute to the their reforestation policies by creating a forest of more than 2 million trees," underlines Mr Texeiro.

"Furthermore, in Tree Farm Token we have also agreed to create Bigotes Blancos, a social action association with the objective that no children in the region starts their day without having breakfast."

Speaking about the environmental impact of the project Mr Texeiro adds: "Each mahogany tree can offset 47kg CO2 per year. 2,6 million mahogany trees can offset the total CO2 emissions of a tourist enclave like Punta Cana."

For more information, visit www.treefarmtoken.io

 

[News URL: http://cti-timber.org/content/tree-farm-token-project-aims-combine-technology-and-forestry-investment]

Bidwells' Winter 2018 Report shows stabilising prices of UK coniferous timber

Property Consultants Bidwells have released their Winter 2018 Timber Price Database which looks at the standing conifer timber prices achieved six months to December 2018.

According to the report, prices in the UK Timber Market has stabilised following major increases over the previous half year. 

Returns from the sale of 776,970 cubic metres of private sector coniferous timber grown in Scotland, Northern England and a small amount in Wales with a total standing value to the grower of £29.8 million suggest that the meteoric rise in timber prices experienced in the half year between October 2017 and March 2018 has levelled off.

Data submitted from 121 coniferous transactions suggests that prices have risen slightly between April and September 2018, though it is more accurate to say that values have been maintained at their previously high levels.

Continued weakness of sterling remains a major factor in UK grown timber prices, but high global demand and tightness of supply suggests no reason why the big picture will change in the foreseeable future.

Raymond Henderson, Forestry Partner at Bidwells commented: “It is always difficult to predict the future, given the influence which global demand and exchange rates have on domestic timber values, but the overall macro-economic situation of increasing demand and tightening supplies suggests no reason to suspect a weakening of prices over the short term.

“We do of course live in strange times where informed projections are apt to be overtaken by events and the ongoing uncertainties created by the unfolding drama of the UK’s withdrawal from the EU – or possibly not as the case may be – make crystal ball gazing murkier and less certain than ever.  That said, the fundamentals of timber sales should not alter too drastically regardless of our membership of the European club.”

Reports are produced on a sixth monthly basis and new contributors are welcome. All information is treated in the strictest confidence.

To view the full insights and research, click on the report here

 

[News URL: http://cti-timber.org/content/bidwells-winter-2018-report-shows-stabilising-prices-uk-coniferous-timber]