NSW Hardwood Shift to Fibreglass, Steel Raises Emissions

New South Wales Material Supply Changes

New South Wales will likely import hardwood timber or adopt fibreglass and steel alternatives for applications previously met by native timber, according to Andrew Hurford, President of Timber NSW.

This change follows the Minns Government’s plan to establish the 476,000-hectare Great Koala National Park, which includes a moratorium on harvesting timber from 176,000 hectares of state forest.

Hurford cautioned that these substitute materials, such as fibreglass made from petrochemical resins and steel produced from coal and iron ore, come with significantly higher emissions compared to the timber industry’s output.

Emissions Concerns from Material Substitution

The replacement of timber power poles with fibreglass and steel is expected to increase the overall environmental impact, Hurford stated on ABC Mid North Coast’s rural report. He argued that Australia’s reduced domestic timber production would necessitate imports to meet demand, potentially sourcing wood from countries with less stringent sustainable harvesting practices.

This perspective was also shared by Hurford at an industry roundtable earlier this year at NSW Parliament House, where discussions focused on the state’s native hardwood supply chain. The Minns Government had previously indicated that the harvesting moratorium would affect six of the region’s more than 25 timber mills and impact approximately 300 jobs.

Government Funding and Carbon Credit Mechanism

The Minns Government plans to help fund the Great Koala National Park through the sale of carbon credits generated from the 176,000 hectares of state forest. This strategy depends on registering a carbon project under the Improved Native Forest Management (INFM) carbon method.

Federal Assistant Minister for Climate Change and Energy Josh Wilson stated earlier this month that this method incorporates “conservative discounts for the possibility of carbon leakage,” addressing concerns about increased imports.

NSW Environment Minister Penny Sharpe welcomed the Senate’s rejection of a bid to block the method, noting its potential to facilitate conservation initiatives.

Procurement Implications for Asia-Pacific

Building material procurement teams in Asia-Pacific should assess the embodied carbon of structural and utility materials as regions like New South Wales adjust their native timber harvesting policies. A reduction in local timber supply in Australia could increase demand for imported hardwoods globally, potentially influencing prices and supply chain stability for Asian buyers.

Procurement managers must verify the origin and processing standards of both timber and alternative materials like fibreglass and steel to ensure compliance with sustainability goals and accurately account for their carbon footprints. This development highlights the need for transparent data on material emissions across diverse supply chains.