New Threat to Forest Industry

The Canadian forest products association says a large U.S. biomass subsidy poses a new threat to the battered industry.
The Group says thousands of forestry jobs in Canada could be at risk unless Ottawa develops a national strategy and provides substantial funding to harness the country’s potential to become a bio-energy superpower.
The United States is looking to bolster its biomass crop assistance program later this month to support the shift from fossil fuels to renewable energy.
Canadian producers fear changes to the program’s criteria could in effect broaden the black liquor subsidy set to expire in December.
It could also raise the cost of fibre since Canadian mills source up to a third of their fibre from the United States.