CPABC Industry Update - Fall 2015 | Page 6

Green Energy BC’s forestry industry is a world leader in sustainable forest management. BC is the largest bioenergy producer in North America, as most BC pulp mills have power generation capacity. BC has more land certified to internationally recognized sustainability standards than any other jurisdiction in the world. Source: BC Forest Industry: Economic Impact Study, MNP LLP. 2015. Forest’s Environmental Impact Each 10% increase in tree cover in an urban area can have the effect of cooling that area by 1 degree Celsius. About 2/3 of Canada’s plants, animals, and micro-organisms live in the forest. More than 65% of Canadians get their water from river systems, lakes, and reservoirs – sources that largely originate in forested areas. Source: Canada’s forests: Key facts, Natural Resources Canada, 2014. JOBS The forest industry supports 6.5% of jobs in BC, equal to one out of every 16 jobs in industry, or 145,800 jobs. Source: BC Forest Industry: Economic Impact Study, MNP LLP. 2015. Highly Unionized Forecasted average annual demand growth (2012-2022): -1.8% 17,700 2017 Canada-US exchange rate International commodity prices What is Deforestation? 18,000 14,800 2012 Slow recovery in the US economy Diversification into Asian markets 38.5% of workers employed in the forestry and logging industry were under union coverage in 2013, higher than the provincial average of 31.5%. Projected Labour Demand: Risks to the BC Forestry Sector 2022 Source: WorkBC Industry Profile, Forestry & Logging, workbc.ca Deforestation is the clearing of forests to make way for new, non-forest land uses, such as urban development or agriculture. Land that temporarily has no trees is still considered to be a forest when the trees are expected to grow back – such as after fires or harvesting. Source: Canada’s forests: Key facts, Natural Resources Canada, 2014. First Nations Participation Since 2002, the BC Government has signed forest tenure agreements with 175 of the 203 First Nations in BC. Agreements provide $324 million in resource revenue-sharing and access to 63.2 million cubic metres of timber. Source: BC Forest Industry: Economic Impact Study, MNP LLP. 2015. page 6 | I N D U S T R Y U P D AT E