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Sub-activity 1.1.2

Forest Products Market Access and Development


Canada's forest sector relies heavily on a single market (the United States) for exports of commodity forest products (mainly wood used in residential construction). But in the face of growing global competition, it can no longer rely solely on traditional markets and/or traditional end-uses of products to remain competitive. Canada must develop opportunities for new forest products and end-uses in existing markets, and diversify markets to expand sales. It must also reduce barriers to market access posed by trade restrictions, tariffs, regulations as well as misconceptions of the strong environmental record of Canada's forest sector and its products. Through this sub activity, Natural Resources Canada provides financial contributions to Canadian forest industry associations to support initiatives aimed at expanding exports to international markets and increasing the use of wood in North American non-residential construction. It also provides financial contributions and science-based information to industry partners to support the development and dissemination of information products aimed at promoting the environmental reputation of Canada's forest sector in international markets. This sub activity also provides expertise to other federal departments in support of Canada's international negotiating positions on key trade and environmental issues, and analysis that influences policy decisions on key competitiveness opportunities.

Non-Financial Performance Information
1 Expected Result Performance Indicators Targets Status Results
Increased sales of Canadian wood products in international markets and new market segments Dollar value of wood product sales in targeted offshore markets (China, Korea, Japan and Europe (EU 27)) and other new emerging markets (e.g., India Middle East) 10% increase in dollar value relative to base year value in 2007 (offshore markets $2.471 billion) by 31/03/2013 To be provided in the corresponding DPR To be provided in the corresponding DPR
Dollar value of wood products used in non-residential construction projects built with wood as opposed to traditional means (Canada and US) 10% increase in dollar value relative to base year value in  2007 ($25 million for Canada, $0 for targeted parts of the US) by 31/03/2013 To be provided in the corresponding DPR To be provided in the corresponding DPR
Diversity of markets for Canada's wood products

Measure: Using the change in the values of the Herfindahl index to measure Canada’s success in diversifying its wood product exports away from one core market (i.e., the United States) and towards offshore markets over time
Favorable 5 year trend by 31/03/2013 To be provided in the corresponding DPR To be provided in the corresponding DPR
Positive perception of Canadian forest practices and products among targeted stakeholders in key international markets Percentage of targeted stakeholders who have a positive perception of Canadian forest practices and products Majority (51%) of targeted stakeholders have positive perceptions by 31/03/2013 To be provided in the corresponding DPR To be provided in the corresponding DPR
Financial Performance Information ($ thousands)
Planned Spending Total Authorities Actual Spending
7,147 7,147 To be provided in the corresponding DPR

FSDS Theme I – Addressing Climate Change and air Quality

FSDS Goal 1 – Climate Change

Reduce greenhouse gas emission levels to mitigate the severity and unavoidable impacts of climate change.

FSDS Target 1.1 – Climate Change Mitigation

Relative to 2005 emission levels, reduce Canada’s total greenhouse gas emissions (GHG) 17% by 2020.

FSDS Implementation Strategies – Forestry 

1.1.55  Support the development and adoption of clean and renewable energy technologies in the forest sector and the use of wood as green building material in Canada and abroad. (NRCan)

1.1.58   Negotiate international agreement to reduce emissions from deforestation and forest degradation (REDD). (NRCan)

How Activity Supports FSDS Target

Life cycle analysis of wood building products conducted under this Sub-activity demonstrates lower carbon and environmental impact of forest products compared to other building materials, encouraging the use of wood-based construction systems. Furthermore, scientific knowledge of forest sector processes and Canada’s greenhouse gas inventories attained under this Sub-activity contribute to Canada’s negotiations on climate change. Thus, this work contributes indirectly to FSDS Target 1.1 – Climate Change Mitigation.

Program Name: International Climate Change Participations/Negotiations

CAA Theme: International Actions

Description of International Climate Change Participations/Negotiations:

NRCan’s International Climate Change Participation/Negotiations is a horizontal policy program involving policy development, analysis and advice, as well as strategic engagement in international climate change and other fora. NRCan activities include international participation/ negotiations in climate change (in sub-activity 2.1.2 of NRCan’s 2012-2013 PAA) as well as Forest Carbon Policy and Monitoring (in sub-activity 1.1.2 of NRCan’s 2012-13 PAA).

Expected program results for 2012-13:

The International Climate Change Participation/ Negotiations program provides strategic policy advice to Government of Canada decision makers on key global climate change developments and other issues related to NRCan’s mandate. NRCan’s program supports the development of climate technology policies and positions that are aligned with Canada’s interests. The program also advances Canada’s international climate change objectives in a range of high-level climate change-related fora, including the UNFCCC and the CEM. Canada’s engagement in the CEM facilitates clean technology collaboration with major economies, including the U.S. and China. The program will lead Canada's participation in international initiatives on Carbon Capture Storage (CCS).

NRCan will also work on forest carbon issues through contributing to international negotiations on GHG accounting and reporting rules for forest carbon, conducting analysis of key forest carbon options that contribute to climate change mitigation, and continuing to develop Canada’s National Forest Carbon Monitoring, Accounting and Reporting System. This system will provide forest-related information for Canada's 2013 National GHG Inventory Report to the UNFCCC. NRCan will also engage with domestic stakeholders on forest carbon management and the role of forests in meeting Canada’s mitigation goals under international agreements.

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