Natural Resources Committee on Oct. 30th, 2020

[Beth MacNeil]

With the government programs that we have in place and with the renewal of our forest sector programs prior to COVID, which were launched this summer, and the COVID-related measures aimed at employees, we've been able to help provide support at the worker, the firm and the sector levels.

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

Thank you.

To go back to the environmental focus here, there is an expectation out there for bioproducts and biofuels to reduce demand for fossil fuels. Has your department calculated Canada's competitive capacity for producing these products?

[Beth MacNeil]

I'll have to defer to my colleague Jeff Waring.

Jeff, are you aware of that? Do we have that analysis?

[Jeff Waring, Director General, Trade, Economics and Industry Branch, Canadian Forest Service, Department of Natural Resources]

In terms of a complete landscape perspective, no, we haven't gotten into that kind of detail.

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

How much of a reduction is possible for emissions, and how soon could it happen if we were to shift into biomass, bioproducts and biofuels?

[Beth MacNeil]

I think it will be similar to Jeff's answer. I don't have the analysis today. We can check back with colleagues in our department and our colleagues at—

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

Are those studies ongoing as things we're actively pursuing, or have we started pursuing them to get that information yet?

[Beth MacNeil]

I'm not the expert in this area. I'll have to take the question back to my colleagues at Environment Canada and to my colleagues at NRCan.

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

It's important to make sure people know that we have a plan, or that if we don't have a plan, we're on our way to getting a plan, so yes, I would appreciate that.

Last, there's one other point I want to touch on again. We've talked a little bit about the issues with trade with the U.S. The Prime Minister has expressed that when it comes to the U.S. election, either outcome will be significant for Canada. I'm wondering if it would be fair to say that your department shares this outlook.

[Beth MacNeil]

I will not comment on the trade disputes and the state of the trade disputes. That's for Global Affairs Canada.

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

As far as our forestry and natural resources sector is concerned, would your department expect for there to be consequential policy differences or changes resulting from the American election? I'm just wondering if there is some forethought going into a sector strategy, depending on what the outcome will be, based on what our biggest trading partner is doing.

[Beth MacNeil]

We have an excellent relationship with the United States and my counterparts in the U.S. I don't expect that to change.

[The Chair, Liberal, James Maloney]

Thank you, Ms. MacNeil. Thanks, Mr. Patzer.

Mr. Weiler, you're going to take us home and end our week on a positive note. It's over to you for five minutes.

[Patrick Weiler, Liberal, West Vancouver—Sunshine Coast—Sea to Sky Country, BC]

Thank you, Mr. Chair.

Thank you, Ms. MacNeil, for joining our committee again.

In your opening remarks, you mentioned that the federal government is providing up to $30 million for small and medium-sized enterprises in the forestry sector to help defray the costs of safety and health measures related to COVID. I know how important this has been. I've heard from a mill in my riding about the additional costs they were facing.

I'm hoping you can give us an idea and a little bit more information about how this money is being distributed.

[Beth MacNeil]

This program is being administered by the provinces. We've been engaging with them for a number of months now. We're in the process of developing contribution agreements with the individual provinces across Canada, and they'll be disbursing the funds.

[Patrick Weiler, Liberal, West Vancouver—Sunshine Coast—Sea to Sky Country, BC]

Thank you.

To follow up on MP Lefebvre's comments earlier about the work that our government is doing to help with access to new international markets, I was hoping you could go into a little bit more detail there. You mentioned that we are looking to expand further in some markets in Asia. I'm wondering what those efforts look like, what types of products we're looking to expand, and how that relates to the innovation that we're seeking in the forestry sector.

[Beth MacNeil]

Part of the expanding market opportunities program is actually a training component. We develop modules. When we consider markets overseas—for instance, China—we're actually working with ministries of housing for them to understand what mass timber construction and building with wood can do, the safety of it and its contribution to the green economy. We're working with architects and engineers in these other countries and doing a knowledge exchange to increase the demand for wood products coming from Canada.

[Patrick Weiler, Liberal, West Vancouver—Sunshine Coast—Sea to Sky Country, BC]

Thank you.

I remember quite clearly that right after the Olympics, there was a major trade mission to different areas of Asia to promote wood as a building product, and particularly, to follow on MP Zimmer's comments, to promote using the wood infested by pine beetles as an option to help take advantage of something that would otherwise go to waste.

To follow up on that, you mentioned in your comments that we're well placed to be a leader in the circular bioeconomy. I'm wondering how NRCan describes what the circular economy is.

[Beth MacNeil]

That's a good question.

Mr. Chair, I'll provide what is a very simple definition in my mind. Hopefully, it's accessible. There's a “what” and a “how” when we're thinking of bioproducts and the circular bioeconomy. I would say that bioproducts are the “what” and the circular bioeconomy is the “how”. That means replacing non-renewable products with renewable products. It might be that a good example, as we have discussed, is increasing the use of wood in low- and mid-rise construction and the changing of those standards.

[Patrick Weiler, Liberal, West Vancouver—Sunshine Coast—Sea to Sky Country, BC]

Thank you.

Mr. Chair, how much longer do I have left?

[The Chair, Liberal, James Maloney]

You have one minute.

[Patrick Weiler, Liberal, West Vancouver—Sunshine Coast—Sea to Sky Country, BC]

Great.

I'd like to follow up on some of the comments that were made earlier about our work with indigenous communities. I was hoping that you could expand on some of NRCan's work with indigenous communities on forestry projects.

[Beth MacNeil]

Thank you.

There are two programs. There is the indigenous forestry initiative, in which we work with communities on forest management plans or economic revitalization and stability. It might be, let's say, a pellet mill operation introduction to the bioeconomy. We also have another program for off-diesel operations in remote and rural communities. What we're trying to do there is use forest biomass for the production of heat and energy. It's making a real difference in these communities.

[Patrick Weiler, Liberal, West Vancouver—Sunshine Coast—Sea to Sky Country, BC]

That's great.

You mentioned some of the benefits of building with wood products. I went to law school across the street from where the 18-storey building was constructed at UBC, where we have the tallest building in Canada built with wood products. I'm just wondering what level of coordination NRCan has with ISED on the national building codes.

[Beth MacNeil]

Jeff, can I turn to you for that question?