COFI 2026 Conference in British Columbia

COFI 2026 Conference in British Columbia: Compelling Forestry Economics amid Rising Losses

    The British Columbia Forestry Industry Council (COFI) 2026 conference opened on April 9 with a powerful economic argument in favor of forestry — despite the fact that the sector continues to incur new losses. Provincial Premier David Eby announced an easing of the industrial carbon tax for pulp mills, recognizing the need to support the industry in the face of a "perfect storm": American duties, a shortage of economically affordable wood, bureaucratic barriers and the effects of wildfires. Against this background, however, there are also positive signals: technology giants in the United States (Meta) are actively using bulk wood to build data centers, and companies in British Columbia are getting new logging licenses.

Key Announcements of COFI 2026

1. Carbon tax mitigation for pulp mills

    Premier David Eby, speaking at the conference, announced the government's plans to mitigate industrial carbon prices for the province's pulp mills. Although the province abolished the consumer carbon tax last year, industrial pricing of emissions remained in place, a mechanism designed to encourage producers to reduce pollution. However, Ebi acknowledged that pulp mills cannot easily reduce emissions from lime kilns.

"Setting costs without a reason, without an end goal, is not what we want to do" — David Eby, Premier of British Columbia

2. Reduction of logging volumes and the crisis of the industry

    Kim Haakstad, President and CEO of COFI, expressed serious concern in response to the provincial budget of 2026: the budget provides for logging at the level of 29 million cubic meters. Over the next three years, this is well below the provincial allowable annual deforestation volume (AAC) of approximately 60 million cubic meters. COFI calls for an increase to 45 million cubic meters, which is estimated to generate almost $600 million in additional annual revenue for the province.

    The industry is facing factory closures and job losses across the province. Just a few days before the COFI convention, the last workers left the Domtar pulp mill in Crofton.

3. Political discussion: external tariffs vs internal problems

    The interim leader of the opposition Conservative Party of British Columbia, Trevor Halford, also spoke at the convention, offering an alternative view of the crisis.:

"David Eby will come here and blame American lumber duties for the decline of your industry... But we all know that there are deeper structural internal issues that we have overlooked here in British Columbia." — Trevor Halford, Interim leader of the Conservative Party of British Columbia

    Halford stated that under the NDP, the approach to the forestry industry was "managing decline" rather than working to stimulate growth and create jobs.

    Ebi, in turn, recognized the need to reduce bureaucratic barriers.:

"This does not mean that I consider the provincial government to be completely exempt from responsibility. We have an important role to play in making life easier for the sector by making processes more predictable and speeding up the issuance of permits."

New features: logging licenses

    Against the background of the general crisis, there is also positive news for small and medium-sized businesses. The Box Lake Lumber Products company from Nakusp has received a five-year logging license in the area west of Slocan. The license allows approximately 445 trucks of timber to be harvested annually on steep mountain slopes where the wood has been damaged by forest fires and pests.

    The license is part of the province's Value-Added Accelerators program, which provides wood to small and medium-sized timber companies. The President of the company highly appreciated the support of the Ministry and Interfor.

Key indicators and initiatives of COFI 2026:

Importance for the global market

    The COFI 2026 conference in British Columbia reflects key global trends in the forestry industry:

1. - Pressure on traditional markets: U.S. duties and structural issues continue to put pressure on producers in British Columbia, one of the largest lumber exporters in the world.
2. - New demand drivers: Mass-produced wood is becoming a strategic material for technology giants (Meta), which opens up new markets for engineered wood.
3. - Transition to deep processing: New Zealand, like Russia and other exporting countries, is aware of the need to move away from exporting raw materials to high-value-added products.
4. - Climate risks: Forest fires, droughts and invasive insects are becoming increasingly important factors affecting the supply of timber and the management of forest resources.
5. - Government support: Governments in British Columbia are beginning to ease the tax burden on the industry, recognizing its strategic importance to the economy and jobs.

Tags: #British Columbia #Canada #forest_industry #COFI #forestry #mass_wood #sustainable building #forest fires #tariffs #USA #Meta #StoraEnso #New Zealand