Transforming the Canadian Pulp and Paper Industry
By Chantal Hunter
September 2010
As world demand for forest products continues to rise, more and more consumers are looking for products that leave a smaller environmental footprint.
That’s why the Government of Canada is supporting the forest industry’s transformation toward a more sustainable future, one that’s based on innovation and environmental performance. Alongside current initiatives aimed at the development, piloting and commercialization of new products, a new federal program — Natural Resources Canada’s (NRCan’s ) Pulp and Paper Green Transformation Program (PPGTP) — is enabling pulp and paper mills to improve their environmental performance and generate renewable energy, all while helping to revitalize the Canadian pulp and paper industry.
Investing in the Evolution of Canada’s Pulp and Paper Industry
The Pulp and Paper Green Transformation Program provides pulp and paper mills with one-time access to $1 billion in funding for capital investments that improve environmental performance in energy efficiency, the production of renewable energy from forest biomass and other areas.
This investment allows mills to take advantage of waste heat, increase the production of steam from wood waste and boost their capacity to generate bioenergy, among other green projects. These and other similar changes will lead to significant environmental benefits, including a reduction in greenhouse gas emissions, increased energy efficiency and reduced industrial odour and noise.
“The Green Transformation Program is helping Canada’s pulp and paper sector become more commercially sustainable by supporting investments in green technologies,” says the Honourable Christian Paradis, Minister of Natural Resources. “The Government of Canada’s investments in the forest sector are helping to drive the industry’s renewal by encouraging new markets and new product lines such as renewable energy.”
Distributing the Funds
Thirty-eight pulp and paper mills across Canada, representing 24 companies, generated credits under the PPGTP, based on their 2009 production levels of black liquor, a liquid by-product of the pulping process that is burned to produce 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 money provides qualified pulp and paper facilities with the opportunity to invest in equipment that relies less on fossil fuel energy sources and reduces greenhouse gas emissions, while transforming mills into more efficient producers and suppliers of renewable energy.
Far-Reaching Benefits
Canada’s pulp and paper sector is a $30-billion industry that directly employs almost 75,000 Canadians in communities across the country. Canada is one of the most successful global pulp and paper sectors, shipping 65 percent of its products around the world.
The PPGTP is supporting the pulp and paper sector in Canada by laying the groundwork for a greener, more competitive industry that is able to contribute to the growth of a domestic clean energy market. These investments will also contribute to the industry’s competitive advantage as a global leader in environmental performance.
“This will save jobs and help us maintain our edge as the greenest suppliers of pulp in the world,” says Avrim Lazar, CEO of the Forest Products Association of Canada (FPAC), an industry group that represents many of the country's forest companies.
To learn more, visit the Pulp and Paper Green Transformation Program (PPGTP).
To read about related articles, see Clean Energy
For information on reproducing articles, please see our non commercial reproduction section.


