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2010/89 (a)

Backgrounder

Government of Canada Delivering a Smarter, Stronger, More Sustainable Future for Canada’s Forest Sector


After one year, the Government of Canada’s Pulp and Paper Green Transformation Program (PPGTP) is making a real difference in the renewal of the country’s pulp and paper sector. The program is supporting smart investments that improve the environmental performance of mills and helping to position the industry at the forefront of the clean energy economy.

Since receiving its first project proposal in October 2009, almost two dozen PPGTP funding announcements have been made. The PPGTP is helping Canada’s pulp and paper industry to renew operations through investments in modern environmental technology and equipment. Companies are improving their energy efficiency, increasing renewable energy production from wood biomass and lowering their greenhouse gas emissions.

The Government of Canada recognizes the vital role the forest sector plays as an economic engine in rural communities, a driver of innovation and key player in the growing bioeconomy.

Diversification of products is essential to the sector’s continued evolution and future success. As newsprint and other traditional paper markets continue to face challenges, there is a heightened need to find new and more efficient ways of using wood, wood fibre and its byproducts.

That is why the Government has worked with industry, provincial governments and other key stakeholders to help transform the industry and to help it take advantage of the growing bioeconomy where innovation and environmental performance are key.

A central part of the federal forest sector strategy, the Pulp and Paper Green Transformation Program is laying the groundwork for a greener and more sustainable forest sector — for today and for the future. The success of the program is complemented by other strategic Government of Canada investments including the Investments in Forest Industry Transformation Program, and support for innovation and market expansion under the Transformative Technologies Program, Canada Wood Export Program, Value to Wood, and North America Wood First Program.

How the Pulp and Paper Green Transformation Program Works

Thirty-eight pulp and paper mills across Canada, representing 24 companies, generated credits under the $1-billion Pulp and Paper Green Transformation Program based on their 2009 production levels of black liquor, a liquid byproduct of the pulping process used to generate heat and power. Qualified companies are required to submit project proposals for their facilities and have until March 31, 2012, to apply the credits to environmental improvement projects. The program is working with these companies as they prepare their project proposals, and projects undergo environmental assessments.

Under the terms of the program, eligible firms can invest the credits generated at one mill in any of their pulp and paper facilities across Canada. This program does not limit funding recipients from seeking grants from provincial, municipal or other funding sources to help ensure they meet their environmental stewardship goals.

By investing in clean energy technologies, this program is helping the forest industry contribute to the growth of a domestic clean energy industry, creating and maintaining high-quality jobs for Canadians while helping to sustain our environment.

More details about the program and its eligibility requirements are available at http://cfs.nrcan.gc.ca/subsite/pulp-paper-green-transformation.


Richard Walker
Director of Communications
Office of the Minister
Natural Resources Canada
Ottawa
613-996-2007

Media Relations
Natural Resources Canada
Ottawa
613-992-4447

NRCan's news releases and backgrounders are available at www.nrcan.gc.ca/media/index-eng.php.