To Meet New Zealand’s Carbon Goals, Forestry Minister Urges Harvested Logs be Processed Domestically

New Zealand’s Forestry Minister Peeni Henare has announced a $57 million (NZD) fund to promote investment in domestic wood-processing facilities, according to a report by “Newsroom” (4-28-23). The move comes as the government seeks to push wood as a carbon-friendly alternative in construction, fuels, packaging, and even biochemicals and pharmaceuticals.

At the annual conference of the wood processing and manufacturing sector recently held in Rotorua, Minister Henare announced that beginning in July, the Wood Processing Growth Fund will be providing about $3 million a year for research, businesses cases, pilot studies, and market development around onshore wood processing projects. The rest of the funds—the majority—is available for companies wanting to build plants or invest in equipment and technology.

According to “Newsroom,” Minister Henare said, “Countries around the world are seeking to reduce emissions, and our comparative advantage of turning sunlight into wood products that are low carbon by their very nature is almost unsurpassed.”

Te Uru Rākau – New Zealand Forest Service does note there are risks in the strategy. Log harvests are forecast to decline by 15% by 2035, putting pressure on supplies for any new processing plants.