IWC/CFA News - November 26, 2010

Timber from Brazil Amazon more easily going west

With five new bridges to be completed in 2011, the interior of the Amazon basin will gain its first road outlet, through Peru, to the Pacific Ocean. At the same time the Brazilian government has released logging concessions amounting to one million hectares this year, expected to increase to 11 million within five years. These transportation improvements coupled with a large increase in logging concessions will make it far easier to export timber to the Asian market.

(Sources: ITTO, CNN)

 

Russia to cut export tariffs on timber in 2011

There have been discussions for 17 years whether Russia will enter WTO or not and gain access to low tariff markets. Prime Minister Igor Shuvalov is, after successful negotiations with the EU, close to signing an agreement to join during 2011. Upon entering the WTO, the export tariffs on timber will likely drop, foreseeably affecting the world wide log trade. China and Scandinavia have decreased Russian imports while Oceania and US Pacific Northwest have increased exports to Asia to replace Russian fiber. Removal of Russian timber tariffs could have a deleterious effect on the US Pacific Northwest, a region that in Q3 exported approximately one million cubic meters of logs to China. (Sources: RISI, Reuters)

 

Carbon credits from forestry in progress

Despite low hopes for any big movements in the allowances for carbon credits in the post Kyoto 2012 Protocol at the climate convention in Cancun starting end of November, some positive light can still be seen. There are discussions that the EU may allow carbon credits from protected forests under the REDD programme. Also, Governor Arnold Schwarzenegger wants to include forest based offset credits into California's cap and trade scheme, which is planned to start in 2012.

(Sources: Carbon Positive, Bloomberg, Reuters)

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The International Woodland Company A/S

Homepage: www.iwc.dk

E-mail: pha@iwc.dk

 

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