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Petroperu, the state-owned company in Peru, is now open to private investors after a reorganization
Late Wednesday, Peru issued an urgent decree approving the restructuring of?state owned oil firm Petroperu and allowing private investments in key company assets. According to the decree signed by?Peruvian President Jose Jeri, the company may be divided into one or several asset blocks. This includes the Talara refinery which the company has spent $6.5 billion upgrading. Petroperu also operates or has concessions on six crude oil blocks that have limited production. It has a fuel marketing and distribution chain. The Peruvian ministry of energy and mines stated that the decree is intended to "?ensure compliance with financial obligations through the technical management of their assets, laying a foundation for Petroperu's self-sustainability." The ministry stated that the company's "situation is particularly sensitive" with losses accumulating to $479 million between January and 2025 and debts to vendors of $764 millions through December. This is in addition to the $774 million reported losses last year. The company's financial problems are partly due to the debt from the Talara refinery upgrade, which cost more than double the original estimate. This led to the company losing its investment grade rating in 2022. Petroperu has received government financing totaling $5.3 billion from 2022 to 2024. (Reporter Marco Aquino, Editing by Alexander Villegas & Nick Zieminski).
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Ukraine condemns Russian New Year drone attack on power Infrastructure
Volodymyr Zelenskiy, the President of Ukraine, said that a Russian drone had damaged power infrastructure overnight in several Ukrainian regions. Meanwhile, Moscow accused Ukraine of a "deadly" new year's attack on a part of Ukraine under Russian control. "Russia deliberately starts war on the New Year. Zelenskiy posted on Telegram that "over 200 drones attacked Ukraine during the night." Zelenskiy stated that energy infrastructure in seven different regions of Ukraine was targeted. Russia has accused Ukraine of killing 24 people in a drone attack on a cafe and hotel where civilians were celebrating the New Year. The strike took place in an area of southern Kherson controlled by Russia. The Ukrainian military did not respond immediately to a question about Moscow's accusations. Zelenskiy stated that Russia's "holiday season" attacks demonstrated Ukraine could not afford delays in its air defence supply. "(Our) Allies have names of equipment that we lack. "We expect everything that was agreed upon with the United States for our defense at the end December will arrive on schedule," he stated, without elaborating. Zelenskiy has met with President Donald Trump in Florida on Sunday to negotiate a peace framework that will end the nearly four-year war. Donald Trump met with Zelenskiy in Florida, on Sunday, to discuss a framework for peace to end the almost four-year conflict. Both leaders have said that they are close in reaching an agreement. However, there remain thorny questions regarding the post-war control of territories. Ukrainian energy minister said that a "significant" number of households in Volyn, Odesa, and Chernihiv regions, located in western and southwest Ukraine respectively, were cut off from electricity by the overnight strikes. Volant's governor said that more than 103,000 households had lost electricity as a direct result of the attack. The Volyn region lies several hundred kilometers from the frontline and borders NATO-member Poland. (Reporting and editing by Gareth Jones, Ros Russell and Max Hunder)
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Police: Dozens of people are feared dead following explosion at Swiss ski resort bar
Swiss police said that dozens of people were feared to be 'killed' and 100 others injured after an explosion tore into a packed bar during a party on New Year’s Eve in the upscale resort of Crans-Montana, located in southwest Switzerland. The police had previously said that many people were being treated for injuries. A police spokesperson confirmed that more than 100 people were in the bar when the explosion occurred. Fire broke out in the early hours of the morning in Crans-Montana at "Le Constellation", where police, fire brigade, and rescue services had been deployed to help victims. Police said in a statement that the area was completely?closed and a no fly zone had been declared over Crans-Montana. They added that the cause of the explosion remained unknown.
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Israel: Forces open fire on West Bank Stone-Throwers, One Dead
Israeli military claimed that its forces shot and killed a Palestinian in the early hours of Thursday morning as they opened fire on people throwing stones at soldiers. The military statement added that two other people were also hit by gunfire on a major road near the village of Luban al-Sharqiya, in Nablus. The statement described the individuals as militants and said that the stone-throwing attack was part of a planned ambush. Palestinian authorities in the West Bank reported that a 26-year old man named Khattab Al-Sarhan had been killed, and another victim was also injured. The official news agency of the Palestinian Authority, WAFA, reported that Israeli forces closed the main entry to Luban al-Sharqiya village in Nablus and blocked many secondary roads. The U.N. reported that more than 1,000 Palestinians were killed between October 2023 - 'October 2025 in the West Bank, mostly as a result of 'operations carried out by security forces, and in some cases by settler violence. In the same time period, 57 Israelis died in Palestinian attacks. (Reporting and writing by Ali Sawafta; Editing by Andrew Heavens).
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Berkshire, which fell on Buffett's final day as CEO and gained 6,100,000.0% over 60 years,
The price of Berkshire Hathaway Class A shares fell by $600, or 0.1%, to $754,800 on Wednesday. Greg Abel will take over as CEO on Thursday. On Wednesday, the price of Berkshire class A shares fell by $600 or 0.1% to $754,800, and that of Class B shares dropped $1.06 or 0.2% to $502.65 Standard & Poor’s 500 dropped 0.7%. Berkshire investors who have owned the company since 1965 when Buffett became CEO, saw a return that was 6,100,000.00%. This is far higher than the S&P's 46,000%. In 2025, the index was outperforming, and it has been doing so for over a decade. Berkshire, however, never had a down year as Buffett tried to acquire his $1.08 trillion company. Berkshire's subsidiaries include the insurer 'Geico', the BNSF railway, dozens manufacturing and energy companies, and retail brands like Brooks, Dairy Queen and Fruit 'of the Loom. The company ended September with cash and?equivalents of $381.7 billion. Abel, age 63, was hired by Berkshire in 2000, when the company acquired MidAmerican Energy (now known as Berkshire Hathaway Energy). Since 2018, he has served as vice chairman of Berkshire, managing the non-insurance business. Buffett will continue to be chairman. He plans to go every day to the Berkshire office in Omaha Nebraska, which is about 2 miles (3 km) from his home. Ajit Jain, vice chairman, will oversee the insurance business of Berkshire, while Abel continues to monitor the BNSF manufacturing, energy and manufacturing businesses. Adam Johnson, the chief executive officer of NetJets' luxury plane unit, will oversee Berkshire’s consumer products, services and retail businesses. Abel was doing this. Berkshire Investments has not announced who will be in charge of its equity portfolio. Apple and American Express were among the 283.2 billion dollars of stocks that Berkshire held as of September 30. Todd Combs, Ted Weschler and other people who worked on the?portfolio were thought to be in line for the position, but Combs has left JPMorgan Chase this month and Buffett stated that Abel can handle it. Berkshire didn't immediately respond to our request for comment. Reporting by Jonathan Stempel, New York; Editing and proofreading by David Gregorio & Alistair Bell
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EIA reports that U.S. crude imports dropped last week, reaching their lowest level since February 2021.
The Energy Information Administration reported that the U.S. imported its lowest amount of crude oil in five years last week, as companies sought to avoid a heavy tax at the end of the year on oil stored in storage. According to EIA, U.S. crude imports fell last week to 4,95 million barrels a day. This is the lowest level since February 2021. John Kilduff, partner at Again Capital, explained that the?ad value tax was a burden on crude oil imports. Kilduff stated that "companies" will delay taking inventory of crude oil and refined products when they reach this point, especially in December. EIA data revealed that the U.S. crude inventory has increased due to lower imports, and robust refining activities. EIA data shows that oil imports from Mexico dropped to 71,000 bpd during the week ending December 26, the lowest ever recorded. This was lower than the previous all-time high for U.S. crude imports from Mexico, which reached 131,000 bpd during the week ending Nov. 28th 2025. The Mexican state oil company, Pemex, must maintain its production at 1.6 million barrels per day (bpd) of crude oil and condensate. This is a sharp drop from the 3.4 millions bpd that it produced 20 years ago. Reporting by Arathy S. Somasekhar in Houston and Georgina M. McCartney; editing by Chizu N. Nomiyama
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Critical Metals CEO expects Greenland deals to be closed in Q1 of 2026.
Critical Metals' top boss said that the company expects to complete the remaining 25% of "offtake agreements" for its Tanbreez project in Greenland by early 2026. It will also be open to investment from Washington. Tony Sage, CEO of Rare Earths, said that the Middle East's interest, which includes potential partners in Saudi Arabia and other energy-rich countries such as Bahrain, Oman, Qatar and Saudi Arabia, is a reflection of the efforts made by states with high energy costs to develop a processing capacity for rare earths, supported by lower electricity costs and quicker permits than the U.S. And Europe. Sage says that the company has pre-sold 75 percent of its planned production, divided between Europe and the U.S., in order to diversify supply to reduce geopolitical risks. Trump's administration is intensifying efforts to secure U.S. mineral supply chains, and has shifted some federal funding from grants to direct equity stakes. Washington wants to reduce its reliance on the market leader China. Trump stated last week that Greenland is vital to U.S. national security, and that an envoy that he appointed for the island will "lead" the charge. Four people with knowledge of the matter said in October that Trump administration officials had discussed taking a stake on Critical Metals. We would welcome it even though we did not ask for it. Sage stated that they had asked for a grant through the Defence Production Act. The report said that the Trump administration had considered converting this grant into equity if it were to be awarded. The White House has not responded to a request for comment. Sage stated that Critical Metals will begin mining in 2027 and first production is expected to start by mid-2028. Greenland's capital costs will likely total $500 million, while downstream processing facilities could cost up to $1 billion. Sage also said that the Austrian project for lithium remained on hold until the price of the battery metal recovered. Arunima Kumra in Mumbai, Ernest Scheyder for additional reporting; Veronica Brown and Anil d'Silva for editing.
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The blue-chip FTSE100 stalls at a record high and seals the strongest annual run since 16 years
The UK's FTSE 100 Index paused at record levels on Thursday in the final stretch to 2025, wrapping up its biggest annual gain in sixteen years in a shortened session. The blue-chip FTSE 100 closed 0.2% lower than the previous day, when it had reached a new record. The domestically-focused FTSE 250 midcaps index?declined 0.4%. Markets closed early on January 1 to avoid the New Year's holiday. The FTSE 100, Britain's blue chip index, outperformed major global markets by 2025. This was boosted?by the expectation of more Bank of England rate reductions, its strength in financials,?miners, and its appeal as a relatively inexpensive diversifier during periods of global volatility. The index increased by more than 21% in the past year. This is its best performance since 2009 and a fifth consecutive annual gain. Comparatively, the pan-European STOXX 600 rose 16.6% while the U.S. S&P 500 gained 17.2%. In a close vote earlier in December, the BoE announced its fourth 25 basis-point reduction of the year, and indicated that the pace of easing, which was already slow, could be slowed further. Resources-heavy FTSE 100 gained support from mining companies Fresnillo and Endeavour?Mining, as well as Antofagasta, who benefited from surging prices for gold, silver, and copper this year. Diageo, the world's leading spirits producer, and Bunzl, the largest business supplies distributor, both fell by around 37%. Other record highs were out of reach. The midcap index rose 9% in 2025, but remained almost 8% below the peak of 2021. Meanwhile, the FTSE Small Cap Index rose 10% and closed just 1.5% shy of its 2021 record.
UNIQUE REPORT-' Sustainable' logging operations are clear-cutting Canada's climate-fighting forests
With its vast areas of forest, Canada has the most licensed sustainable timber operations of any nation, according to the not-for-profit companies that attest to the ecological stability of logging practices.
Such forestry-standards groups were born in the 1990s out of rage over tropical jungle damage. Today, they put their leafy seals of approval on toilet paper, two-by-fours and other wood and paper items to ensure eco-conscious customers and investors they were properly produced.
Yet research shows Canadian forests have actually seen a few of the world's biggest decreases in environmentally critical main and old-growth forests over the last 20 years, even as sustainability-certification programs grew to include almost all of Canada's logging.
To track damage of older forests in these accredited zones, Reuters evaluated forestry data in Ontario, a major logging province. The analysis found that about 30% of the licensed boreal forests harvested from 2016 to 2020 were at least 100 years of ages. That resulted in the loss of 377 square miles of these older forests, an area the size of New york city City and Washington D.C. integrated, the analysis found.
Canada's forests-- accounting for 9% of the world's total--. are considered important to including international warming. Ecological advocates have actually long pressed to end visiting. main or old-growth forests, which soak up far more. climate-damaging carbon than logged-and-replanted locations. Main. forests are those that reveal no sign of previous harvesting. They. can consist of old-growth areas-- some with trees hundreds or. thousands of years old-- however also fairly newer forests. that, for example, might have regrown after wildfires.
Forest-certification nonprofits have chosen to enable logging. of older forests through a host of concessions to industry. The. harvesting of such areas in Ontario came in spite of the reality that. 94% of the province's managed forests are certified by one of. the 2 dominant environmental-certification organizations in. Canada, the analysis found. Reuters analyzed satellite-derived. logging information, government forest-age quotes and. forest-certification maps to approximate the harvest of forests at. least 100 years of ages in Ontario's licensed zones.
Why the heck are they enabling logging-- licensed logging. -- in main forests that are over 100 years old? asked. Dominick DellaSala, a conservation biologist with ecological. group Wild Heritage who studies Canadian logging impacts. For. Canada to claim that it's doing sustainable management, it's. absurd. To put a certification seal of approval on it is more. disconcerting.
The quick loss of older Canadian forests highlights the. flaws of certification programs that have actually come under heavy. influence of the logging and forest-products industries, a. Reuters examination has discovered. The damage has come under the. watch of the Forest Stewardship Council (FSC), the world's very first. such certification organization, founded in 1993 with. ecologist support; and the Sustainable Forestry. Effort (SFI), a competing established by a timber and. forest-products trade group the list below year.
This account is based upon the Reuters analysis of Ontario. forests, a review of numerous pages of FSC and SFI audits,. in addition to policy and method files, and interviews with 20. present or former FSC staff members or members and more than a. half-dozen researchers who study the environmental impacts of. Canadian logging.
In a declaration, FSC stated it has not fluctuated from its. original dedication to responsible forest management which. its certification requirements are robust and trustworthy. SFI said. its requirements are strong and constantly improving and that. its certification has actually ended up being a extremely relied on solution to the. growing demand for products from sustainably managed forests.
Neither company commented on the Reuters analysis or on. whether they thought about gathering large areas of century-old. forests to be sustainable.
The FSC and SFI accredit logging business' practices in. particular forests and examine consumer-product supply chains. Their seals of approval-- a leaf insignia for SFI, and a tree. with a checkmark for the FSC-- have actually ended up being essential to wood. and forest-products companies amidst rising pressure for ecological. stewardship.
But these business hold immense take advantage of over the big. forest-certification nonprofits, which depend heavily on the. market for funding through certification charges, Reuters found. And because its creation, the FSC has watered down its forestry. standards in action to the competitive threat posed by SFI and. other industry-friendly certifiers, according to. ecologists and more than a lots existing and previous FSC. staffers and members, who recommend the company on policy and. strategy.
Companies are totally free to choose which certifier to utilize,. permitting them to prevent those with stricter standards and providing. them influence to lobby all certifiers for permissive policies, stated. the FSC staffers and members.
Extensive accreditation of British Columbia lumber. operations over the previous two decades hasn't stopped the. disappearance of more than half of the province's old-growth. woodlands over that duration. Logging caused the large majority of. the decreases in the most significant old-growth trees storing one of the most. carbon, according to one 2021 study in the Canadian Journal of. Forest Research and another last year in the journal Frontiers. in Forests and Global Modification. Studies in 2009 and 2017 analyzed. areas of Quebec forests and discovered areas of forests. controlled by trees more than a century old had diminished to. in between 13% and 28% of the forest amid heavy logging. Without. logging, these older areas would account for in between 40% and. 68% of these forests, the scientists estimated.
Herb Hammond, an experienced forest ecologist, ran a British. Columbia not-for-profit company that carried out a few of Canada's. initially FSC audits in the late 1990s. He later on left the. organization, annoyed with what he described as too many. compromises with industry.
It's easy to pull the wool over people's eyes about what is. great forestry, he stated. Certification has ended up being a. little a pet's breakfast. It does not really suggest anything.
A 'CHESS RELOCATION'
Forestry certification has become common in the global. forest-products trade, assisting business such as Procter && . Gamble, Starbucks and Penguin Random Home appeal to. eco-conscious consumers and investors. Those three companies. decreased to comment.
The certifying trend began in the 1990s when environmental. organizations including Greenpeace, Buddies of the Earth and the. World Wildlife Fund helped release the FSC after stopping working to. safe forest-conservation promises from federal governments worldwide. They wished to incentivize business instead with a market-driven. system that branded items as sustainable, stimulating demand. from critical buyers. The FSC was established in 1993 with a. membership of organization, environmental and community. agents.
Still, lots of companies were wary of aligning with. environmentalists. The following year, the American Forest &&. Paper Association, a trade-group, started the SFI as an. industry-friendly alternative. The trade association said its. discussions about sustainable forestry began previously, in 1990,. and consisted of input from academics and preservation groups.
Competitors from the industry-backed SFI required the FSC to. reckon with how to preserve rigorous forestry standards while. hiring companies to certify, 10 present and former FSC. members stated. A 2002 FSC management report highlighted the need. to quickly increase the supply of qualified wood or run the risk of. losing out to an ever-increasing number of completing. accreditation schemes.
The FSC introduced an internal push to improve its market share. that led to compromises with market and weaker harvesting. limitations, according to FSC documents and the FSC members.
Compromising FSC requirements didn't stop the SFI's development,. nevertheless. The FSC accredited about 46 million hectares of Canadian. forests at the end of 2023, less than half the SFI's 119 million. hectares, according to the Forest Products Association of. Canada, a market group. Worldwide, the FSC accredits 160. million hectares compared to 295 million hectares by the. Programme for the Recommendation of Forest Accreditation (PEFC). The PEFC is a global company that oversees the SFI, which. covers The United States and Canada, and affiliated certifiers in other. areas.
Both the FSC and the SFI largely make it through on industry-paid. charges. FSC International reported in 2022 that such fees. accounted for 86% of its $58 million in annual earnings. The SFI. derived 77% of its $12 million in profits from such fees,. according to its 2022 tax return.
Some ecological groups and supporters, while acknowledging. the FSC's drawbacks, continue to view the organization as the. best option amongst imperfect alternatives. Jen Skene, a policy. director at the Natural Resources Defense Council, said FSC. certification represents a minimum standard.
FSC is the most reputable certification system out there,. she said, while adding that it must be deemed a floor, not. a ceiling for sustainability standards.
FSC told Reuters it had actually not damaged requirements in action. to SFI competition. Instead, FSC said, the competition has prompted. it to improve and fine-tune its certification process to make sure. it stays the gold requirement for responsible forestry.
SFI said competition among certifiers does not exert a. down pressure on requirements but rather promotes continuous. improvement. The PEFC stated it allows regional groups including. the SFI to develop their own standards, which the PEFC said. adds to long-lasting commitment to sustainable forest. management practices.
Though some corporations prefer FSC-certified wood, few. clients understand the difference among accrediting groups and their. labels.
Peter Wood, a forestry speaker at the University of British. Columbia who has served on FSC-rulemaking committees, called the. SFI's creation a chess move.
The industry wished to take the power far from FSC, and it. worked, he stated. Now, everything is certified.
RACE TO THE BOTTOM
FSC's early standards highlighted the need to safeguard main. and old-growth forests. One pivotal provision read: Main. forests ... will be conserved. Such areas shall not be replaced. by tree plantations or other land usages.
However business grumbled the policy was too limiting and. difficult to enforce, said Grant Rosoman, a Greenpeace forests. advisor and former FSC International board member.
FSC members spent years disputing policy changes and in 1999. eliminated requirements to save primary forests. Rather, the. FSC adopted a more subjective requirement to safeguard forests. with high preservation value, based upon an intricate matrix of. ecological, financial and cultural qualities.
That unclear language, still in effect, gives business broad. impact over which forests get approved for protection. It has likewise. spawned a market of specialists-- hired and paid by. forest-products companies-- to perform studies determining which. forests have high conservation value, according to FSC audits. and six current and former FSC members.
Rosoman of Greenpeace was among the FSC's members who. approved the language at the time. He now regrets it, believing. its subjectivity allowed damage of critical forests. The. continued logging of main forests and old-growth forests was. never ever dealt with, he stated.
FSC acknowledged that its rules enable accredited logging in. such areas but said the high conservation worth designation aims. to ensure such harvesting is performed with the greatest level. of analysis and duty.
In another significant concession, FSC in 2004 presented the FSC. Mix system, which created a brand-new label for products including. up to 30% wood from non-certified sources.
The relocation came after pressure from pulp-and-paper companies. consisting of Klabin of Brazil, SCA of Sweden and Mondi of South. Africa, along with book publishers and furniture makers,. stated Rosoman, who took part in the negotiations.
Mondi did not comment. SCA said it might not address its. role at the time due to the fact that the business has actually since been divided into. 2 firms. Klabin did not address concerns on whether the. business affected the FSC Mix guidelines. However it said the label. alleviated the logistical concern of separating wood from certified. and non-certified sources, a view echoed by SCA.
FSC Mix has given that become the certification group's dominant. label, accounting for more than three-fourths of the FSC-product. trade, according to a 2017 FSC paper. The paper added that FSC. Mix was the main source of income for the operating costs of. FSC.
The FSC informed Reuters it does not know what portion of. FSC-certified items use the Mix label today. The label, it. said, helps business shift to more sustainable. practices.
FSC Mix guidelines provide companies wide latitude to use the label. Some consumer-products companies are enabled to put the Mix label on. products that contain no FSC-certified material at all because. the FSC gives them credit for certified content in other. items they offer.
The SFI likewise offers a label-- SFI Licensed Sourcing--. that makes no assurances that items contain any wood from. licensed forests, so long as business meet certain other. conditions.
Phil Guillery, a previous FSC United States board member and. supply chain stability director, stated permitting uncertified wood. into the FSC system brought a lot more timber and forest-products. companies into the organization and gave them more influence.
They understood and learned about the politics of FSC, and. they became extremely effective, he said.
Wood, the University of British Columbia lecturer, served on. 2 FSC groups that starting in 2011 attempted to revamp what. internal critics had actually called a weak system of company. self-assessments to guarantee their FSC Mix products did not. contain wood from undesirable sources, such as unlawfully. gathered forests. The guidelines modifications took eight years in a. procedure that was greatly affected by market, he said.
The FSC informed Reuters the procedure resulted in a considerable. reinforcing of rules governing non-certified wood. Wood had a. various take, stating the limitless deliberations did little to. screen out problematic sources of timber. He called his. involvement a horrible experience.
I just wished to turn away from the whole project, he. stated, and alert people: 'Don't trust it.'
QUALIFIED FOREST DESTRUCTION
Environmentalists slam the FSC but normally take a. harsher view of the SFI, mentioning its founding by a market. group and weaker forestry requirements.
The SFI disagreements that it serves just industry interests,. informing Reuters its standards show input from a varied group. of collaborators including ecologists on its board.
Environmental groups consisting of the Sierra Club, Stand.earth. and the Natural Resources Defense Council state the impact of the. SFI's industry-friendly method is clear in British Columbia,. where the organization has actually dominated accreditation.
The province, a showcase of Canada's raw beauty and diverse. ecosystems, has seen old-growth forests decrease by more than 50%. over the last twenty years, according to the 2021 and 2023. studies. A subset of highly productive old-growth woodlands--. forests with the largest trees saving the most carbon, and also. the most attractive to logging companies-- has declined by an. approximated 85%.
The SFI became the certifier of choice in British Columbia. largely due to the fact that market viewed the FSC's early guidelines as too. burdensome, said Karen Tam Wu, an FSC specialist during the 2000s.
The wood market and Canada's government share in the. logging wealth. Canada's forests are normally on public land,. which implies provincial federal governments get a cut of the profits from. every dropped tree. In British Columbia, that amounted to more than. $ 7.3 billion over the decade ending in March of this year,. according to the province's forest ministry.
British Columbia in 2020 revealed a strategy to protect its. decreasing old-growth forests after years of public pressure. A. year later on, authorities launched maps revealing at-risk areas where. it required a deferral of logging. But the federal government never ever. barred visiting those zones, instead leaving it to industry. discretion.
Some significant companies picked instead to continue harvesting,. including Vancouver-based Canfor Corp, an international timber-and-pulp. manufacturer.
Canfor in 2022 whacked about 3,700 acres of old-growth. forest the federal government had recommended for deferral of logging,. according to satellite images analysis from Stand.earth. The. provincial federal government stated previously this year that more than. 50,000 acres of old-growth forest had been gathered in areas it. sought to protect.
BC's Ministry of Forests stated it is not seeking to end all. old-growth logging which harvesting in some areas is. possible and essential to support regional, sustainable tasks. while safeguarding forests.
SFI certified Canfor's large western Canada operations in. 2019, 2021, 2022 and again last year. None of the openly. launched audit summaries ever discussed the cutting of. old-growth forests. Significant auditing firm KPMG, which conducted. the evaluations, had no remark.
Nothing in SFI's standards would have avoided logging of. old-growth forests.
SFI said old-growth-forest harvesting in British Columbia is. contentious, including settlements among governments,. industry and indigenous communities. It said its standards. require compliance with all appropriate laws.
Canfor stated it is dealing with native groups,. neighborhoods and government to review old-growth management and. look for input into our proposed harvesting.
' LIKE PRINTING CASH'
Logging companies' capability to select their own watchdogs. poses the biggest barrier to promoting high sustainability. standards, environmental advocates said.
The auditing structure all but assurances logging business. can get certified, said Simon Counsell, who was an FSC starting. member while with the not-for-profit group Pals of the Earth. He's. now an FSC critic.
There's a clear, vested financial interest for the. auditor, since giving FSC accreditations leads to more. auditing opportunities, Counsell said. It's like printing. cash.
The FSC stated it prevents conflicts of interest by outsourcing. evaluations and accreditation to independent auditors who take a look at. business' forestry practices and are paid by the firms being. accredited. The companies, it said, pay a separate yearly. administration charge based upon their forest-products profits that. goes to the FSC after being collected by the auditor.
In one example of industry impact over sustainability. audits, a significant Canadian wood company, Resolute Forest. Products, defeated an effort in 2014 to remove its FSC. certification in a western Ontario forest by taking legal action against and. eventually shooting its auditor.
Resolute for many years dealt with charges from researchers and. environmentalists that its clear-cuts in the FSC-certified Black. Spruce Forest had actually decimated environment for threatened forest. caribou. As early as 2012, auditors at the Rain forest Alliance,. a nonprofit employed by Resolute, found the lumber company failed. to fulfill FSC habitat-protection requirements. Another 2013. Jungle Alliance audit took a look at grievances from ecological. groups that Resolute's logging will lead to the extirpation of. caribou from the Black Spruce Forest.
Auditors suspended Resolute's accreditation in January 2014,. mentioning a failure to satisfy FSC forest-protection requirements. In. May 2014, Resolute sued the Rain forest Alliance and its. auditors, personally, calling their reviews flawed and biased. The company sought $400,000 in damages. It likewise asked for an. injunction obstructing the audit's public release, which an Ontario. court gave. The suit noted that accreditation was. important to Resolute's service design.
The suit was settled in 2015, with the alliance concurring. to designate brand-new auditors to renovate Resolute's unfavorable evaluation. The. follow-up audit discovered Resolute satisfied FSC requirements and had. dealt with the problems from the earlier audit.
Chris Wedeles, one of the original auditors Resolute sued,. said he was disappointed that the new auditors examined the. very same evidence and pertained to a different conclusion.
The Rainforest Alliance renewed Resolute's certification. Undaunted dumped the alliance anyway, moving its auditing. business in 2016 to SAI Global, which has re-certified the. business every year because.
After the settlement, Resolute's then-CEO Richard Garneau. told FSC's global director general in a 2015 letter that. the firm would take out of FSC unless the certifier dealt with. the business's grievances about burdensome FSC requirements. A. leading Undaunted executive was chosen to FSC Canada's board in 2021. and continues to serve today.
Resolute did not respond to questions about its forestry. practices or its claim but said it supports the highest. standards in forestry management.
SAI Global, Garneau and the Rainforest Alliance, which no. longer carries out FSC forestry audits, declined to comment.
The FSC stated it was not associated with the conflict in between. Resolute and its auditor which it wasn't affected to change. its standards by Garneau's 2015 letter. FSC indicated current. suspensions of certifications in Quebec as evidence of its. dedication to protect caribou.
Meanwhile, problems with caribou in the Black Spruce Forest. continue.
In 2020 and 2021, SAI Global auditors found that Resolute. might not corroborate the effectiveness of its. caribou-conservation plan. The auditors dealt with the matter,. however, after an Undaunted specialist argued that logging would. decrease to a level that could sustain caribou populations--. though not until 2039.
BULLDOZING FORESTS FOR OIL
One of the world's largest stretches of certified forests is. in northern Alberta, where the FSC has actually accepted the logging. practices of Alberta-Pacific Forest Industries Inc.
. Over the last twenty years, about 878,000 acres of these. woodlands, a location more than twice the size of Los Angeles, have. been set aside to make way for oil companies to operate open-pit. mines, drilling websites and pipelines in Canada's oil sands. The. oil exploration involves clear-cutting and bulldozing the. forest. Some ecologists consider it one of the world's. most devastating industrial tasks.
Alberta-Pacific Forest Industries holds logging rights to. the forest, that includes old-growth forests, according to. company disclosures and ecological research studies. A clause in the. business's contract with Alberta permits regulators to designate. chunks of the woods for oil-and-gas development.
When that happens, the FSC allows Alberta-Pacific to do a. carve-out: eliminating the FSC certification from the land significant. for oil advancement, while keeping accreditation for the. surrounding forest. The plan has actually enabled Alberta-Pacific. to maintain accreditation in the area since 2005 despite the. oil-related damage.
FSC said it motivates qualified firms to participate in. dialogue and utilize their impact to impact land-use decisions. such as oil-and-gas advancement. But the company said such. choices are outside of FSC's direct accreditation scope and. are governed by provincial and national laws.
Alberta-Pacific said it is proud to have actually been FSC-certified. considering that 2005 which it has a goal of maintaining biodiversity. and other forest values. It said FSC's policies allow. carve-outs for oil development because the resulting. ecological effects are beyond the full control of. Alberta-Pacific.
Alberta-Pacific earns money from the oil development: Under. a contract with Alberta, it receives settlement from. oil-and-gas firms for the ruined forests. It can likewise offer. wood from forests cleared for oil mining under the FSC Mix. label, FSC audits program.
Some of the oil is extracted through surface area mining, a. procedure that needs the forest to be bulldozed and removed of. vegetation and soil to make way for pits that can be numerous. feet deep.
The mining is completely unsustainable, said Barry Robinson,. an Alberta ecological attorney who has specialized in. oil-and-gas problems. It will be generations before it ever grows. trees once again.
(source: Reuters)