Thank you very much, Chair.
I forgot to mention that I am the assistant deputy minister for the Canadian Forest Service.
Good afternoon, gentlemen, and lady, around the table. Thank you for the opportunity to discuss the importance of forests and the forest sector and their role in Canada's clean growth and climate change strategy. We are, I believe, at a pivotal moment when climate change is one of the greatest challenges of our generation. Investing in science, clean technology and innovation is the new imperative for a low-carbon economy.
We believe there can be no global solution to climate change without the forest sector. That statement is backed by science. Keeping global temperature increases to two degrees or less means we need to very substantially reduce fossil fuel emissions and increase land-based carbon sinks.
The work of the Intergovernmental Panel on Climate Change makes it clear that forests, in particular, have a large role to play. The IPCC says:
In the long term, a sustainable forest management strategy aimed at maintaining or increasing forest carbon [sinks], while producing an annual sustained yield of timber, fibre or energy from the forest, will generate the largest sustained mitigation benefit.
Federal programs are important, but, as you know, provinces and territories control the majority of the land base and resources. I am encouraged that provinces and territories are taking greater interest than ever before to understand the potential to reduce GHG emissions and increase carbon through actions involving forests and wood use.
If we consider forest carbon estimation, the managed forest in Canada covers 226 million hectares. The annual GHG inventory report shows that our managed forest already absorbs vast amounts of carbon from the atmosphere. At the same time, harvesting results in storage of carbon for decades in products such as lumber used in housing, even though, over time, there are emissions when the products are eventually disposed of.
When we consider the role our managed forests in Canada play, as a source or a sink, we need to consider three things: first, how forest management affects emissions and removals; second, the carbon stored in wood products; and third, how forest products and bioenergy can replace other products and fossil fuels that produce more emissions.
Canada's GHG inventory shows that our managed forests and associated products were a net sink of 27 megatonnes in 2016. It's important to note that this does not include the impact of fire or vast pest infestations such as the mountain pine beetle. Those two alone resulted in emissions of about 90 megatonnes in 2016.
How do we produce these numbers? At Natural Resources Canada, we use the national forest carbon monitoring accounting and reporting system. At its core is the forest carbon budget model, a model initiated in 1989 by Canada—by us—continuously improved since then, and internationally recognized and adopted by many countries.
I'll touch briefly on forests and climate change mitigation. The key question here is, what can we do to increase the carbon storage and reduce GHG emissions associated with forests and wood products? NRCan has looked at this question in collaboration with our partners in the provinces and territories, and some of the analysis was done in preparation for the pan-Canadian framework on clean growth and climate change.
The analysis shows that mitigation actions with significant potential for emissions reductions in the long term, by 2030 and beyond, include four things. The first is forest management actions, such as enhancing restoration of forests after fire and insect damage like we see in British Columbia and Alberta, and ensuring maximum utilization of fibre, including residue.
The second is increasing afforestation to create new forests, using marginal agricultural land—planting trees.
The third is increasing the use of long-lived wood products to replace more emission-intensive materials, for example, replacing concrete and steel with mass timber buildings wherever possible.
Finally, fourth is increasing use of wood for bioenergy in place of fossil fuels, for example, by reducing burning slash piles of harvest residues. We can use these in the form of pellets for bioenergy and bioheat.
By 2050, carbon sequestration in forests and wood products could represent one of the largest mitigation opportunities for Canada. However, note that the actions need to take place today and in the near term if we are to achieve this benefit by 2050, because in Canada it takes a long time to grow trees.
These analyses informed the pan-Canadian framework. The PCF commits us to enhancing carbon storage in forests, generating bioenergy and bioproducts, encouraging greater use of wood in construction projects, and advancing innovation for GHG-efficient forest management practices. When Canadians think of how forests can help mitigate climate change, it is often limited to notions of tree planting, but that isn't the case from our perspective. Similarly, conservation appears like a good opportunity to leave the forests in place and not harvest them, but that is without taking into account the increasing frequency of fire and insect outbreaks, and without considering what would replace wood products if we reduce harvest, so that you're using more emission-intensive products. Conservation is definitely important, but it's often not the most effective long-term GHG emission strategy.
One pan-Canadian framework commitment involves looking at innovative practices in the forest sector to increase stored carbon in forests. ECCC's low-carbon economy fund is providing support in the order of $202 million in this area. B.C., Alberta, Quebec, P.E.I. and the Northwest Territories are accessing this to accelerate restoration of forests after fires and pest insects, and they're planting new forests.
A second PCF commitment involves increasing the use of wood in construction to store carbon over the long term. This increases the use of a renewable resource, while replacing conventional emissions-intensive building products, and is a goal of our NRCan $40-million green construction through wood program. An example of this is Brock Commons, at the University of British Columbia. Up until about a month ago Canada was a world leader in having the tallest wood building—18 storeys built in nine and half weeks.
A third pan-Canadian framework commitment involves identifying opportunities to produce renewable bioproducts and fuels, something that we're quite proud of. To this end, $55 million of NRCan's $220-million clean energy for remote and rural communities program—we call it CERRC—is supporting projects to replace fossil fuels with local forest biomass for heating, and we're focusing on indigenous communities across Canada to do this.
These are just some of the ways the forest sector will help us tackle the key issue of climate change, as well as lead environmental performance, drive clean growth and innovation, and at the same time make real reconciliation with indigenous peoples.
Here are some key points as I close. We cannot forget that forest carbon emission and storage is not only affected by humans but by the changing climate itself, which increases the frequency and magnitude of fires in Canada, has an effect on growth rates and survival, and enhances insect outbreaks. The last two fire seasons in the west, as well as the outbreak of mountain pine beetle and the spruce budworm infestations on the east coast, are all causing large emissions.
We need to think about what actions can reduce GHG emissions, while contributing to climate change mitigation. Our federal programming is doing a lot, and I believe further opportunities exist.
Thank you.