Government of Canada Invests in the Forest Industry’s Environmental Performance

October 16, 2009

Nackawic — Thanks to an investment by the federal Government, Canada’s forestry sector will now have access to funding that will improve its environmental performance, create jobs and stimulate the industry.

Mike Allen, MP for Tobique-Mactaquac, on behalf of the Honourable Lisa Raitt, Minister of Natural Resources, announced that 24 pulp and paper companies across Canada have qualified for funding under the Pulp and Paper Green Transformation Program.

“The Government of Canada is taking unprecedented steps by investing $1 billion in a program that will build a brighter and more sustainable future for Canada’s forest communities,” said Mr. Allen. “The Pulp and Paper Green Transformation Program will generate new investments in pulp and paper facilities across Canada, making it greener and more sustainable.”

The Pulp and Paper Green Transformation Program allows Canadian pulp and paper companies that produced black liquor — a liquid by-product of the chemical pulping process that is used to generate renewable energy — in 2009 to access this $1-billion fund.

“The riding of Tobique-Mactaquac will also benefit from this investment as the AV-Nackawic facility stands to receive over $36 million from the fund”.

Qualified companies are now required to submit specific project proposals for their facilities. Companies can expect to receive funding for their capital projects in late 2009 or early in 2010. Companies have until 2012 to apply the credits to environmental improvement projects.

Canada’s Economic Action Plan has delivered significant investments to sustain and improve the forest industry in Canada.  The Government of Canada has committed a further $170 million to assist the forest industry in developing innovative products and expanding markets overseas. As well, $40 million has been invested to develop pilot-scale demonstrations developed under the Transformative Technologies Program. Furthermore, the $1-billion

Community Adjustment Fund is creating jobs and maintaining employment in communities affected by the global economic downturn, specifically forest-dependent communities.