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Sub-program 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-program, NRCan 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.

Non-Financial Performance Information
Expected Result Performance Indicators Targets
Forest industry has increased sales of Canadian wood products in international markets 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 2011 (offshore markets of $3.50 billion and new emerging markets of $99.3 million) by March 31, 2017
Diversity of markets for Canadian wood products Favourable yearly average relative to Herfindhal Index value of 0.397 in 2011 base year by March 31, 2017
Forest industry has increased sales of Canadian wood products in new market segments 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 2011 ($130.3 million) by March 31, 2017
Stakeholders in targeted international markets have positive perception of Canadian forest practices and products Percentage of targeted stakeholders who have a positive perception of Canadian forest practices and products Majority (51%) of targeted stakeholders have positive perceptions by March 31, 2017
Financial Performance Information ($ thousands)
Planned Spending Main Estimates
24,108 24,108


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 

1.1.58 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-program demonstrates lower carbon and environmental impact of forest products compared to other building materials, encouraging the use of wood-based construction systems. This Sub-program includes participation in forest-related international climate change negotiations including those on an agreement on REDD. Scientific knowledge of forest sector processes and Canada’s greenhouse gas inventories are used under this Sub-program to contribute to Canada’s involvement in negotiations on climate change and to ensure that agreements are consistent with Canada’s mitigation goals and national circumstances. 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-program 2.1.2 of NRCan’s 2013-14 Program Alignment Architecture [PAA]) as well as Forest Carbon Policy and Monitoring (in Sub-program 1.1.2 of NRCan’s 2013-14 PAA).

Expected program results for 2013-14:

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. In 2013-14, these fora will include the 19th Conference of the Parties to the United Nations Framework Convention on Climate Change and the 4th Clean Energy Ministerial (CEM). Under the UNFCCC, Canada will support the launch of an international technology centre that will provide clean technology expertise and projects to developing countries. Canada’s engagement in the CEM facilitates clean technology collaboration with major economies, including the US and China. The program will also lead Canada's participation in international initiatives on carbon capture and 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 2014 National GHG Inventory Report to the UNFCCC. NRCan will also engage with domestic stakeholders on forest carbon management and the role of forests and forest management in meeting Canada’s mitigation goals under international agreements.

Performance measures:

International Participation/Negotiations in Climate Change
Key outcomes
Policy and analytical support to federal decision-makers regarding the development and promotion of positions on climate technology that reflect Canada’s interests and circumstances
Provision of strategic policy advice and analysis to senior management on global climate change developments, and the links with natural resource issues, in particular energy
Senior officials are prepared to represent NRCan and Canada in a variety of bilateral and multilateral meetings across various fora
Through engagement and policy support, opportunities are created for Canada to participate in collaborative clean energy technology initiatives
Note: Indicators, targets and tracking methods are currently under development for this program.
Program spending for 2013-14
Total CAA Program Planned Spending
$1,109,000Footnote 1

Performance measures:

Forest Carbon Policy and Monitoring
Key outcomes
Policy and analytical support to Environment Canada, as the lead on LULUCF (Land Use, Land-Use Change and Forestry) and REDD (Reducing emissions from deforestation and forest degradation) issues
Canada's interests and understanding of its circumstances related to LULUCF and REDD are based on sound analysis, and reflected in international negotiations and agreements
Opportunities to maximize the contribution of forest-related actions through international rules are understood
Canada meets forest-related carbon reporting requirements on an annual basis
Canadian leadership on forest carbon monitoring and accounting allows Canada to promote familiarity with and use of Canadian tools and approaches
Note: Indicators, targets and tracking methods are currently under development for this program.
Program spending for 2013-14
Total CAA Program Planned Spending
$1,684,128Footnote 2
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