17 Feb 2025
REPORT SAYS NSW CAN END NATIVE FOREST LOGGING AND MAINTAIN REGIONAL JOBS
A new report details how New South Wales can transition out of native forest logging while sustaining regional jobs.
The Frontier Economics report, commissioned by the World Wide Fund for Nature-Australia, lays out the reforms which, if funded by the NSW government, could support about 1,200 positions following the end of native forest logging.
This compares with an estimate that direct employment in public native forest logging in NSW is about 1,070.
Frontier Economics says jobs could be created through a government-funded structural reform package focussed on developing alternative sources of hardwood supply, investing in innovative manufacturing and processing of timber, and transitioning native forests into protected areas.
Alternative hardwood supply
To replace state forest hardwood, the government’s structural reform package should provide support to expand hardwood plantations, and deliver greater incentives and investment in regenerative forestry and agroforestry.
There is increasing interest in these different approaches to forestry because of the environmental, economic and social benefits. Regenerative forestry plants forests on marginal farmland. Trees are selectively harvested rather than clear felled. The retained forest increases biodiversity, resilience against extreme weather events like droughts and floods, improves soil, and boosts agricultural production.
The City of Greater Bendigo created the Crosbie Regenerative Forest by planting 90,000 eucalyptus seedlings on a degraded sheep property. What was once a largely barren landscape is now home to over 250 species of plants and animals. It is a permanent forest managed and selectively harvested by wood4good.
Agroforestry (growing trees alongside crops or pasture) can create similar benefits for soil and help protect livestock and crops from harsh weather. There are agroforestry success stories from around the world.
Investing in new manufacturing technology
It’s crucial the government package supports investment in new technology and systems to process hardwood. For example, 3RT technology creates structural grade hardwood products from plantation thinnings, which are normally turned into wood chips and exported. Engineered wood products can provide a financial return on hardwood plantations sooner and help ensure Australia has locally sourced building supplies rather than relying on imports.
Transitioning public native forests to protected areas
Transitioning about two million hectares of forests, currently allocated for public native forest logging, into protected areas would require new roles in forest management and restoration.
Through these interventions, Frontier Economics estimates about 1,200 full-time equivalent positions in NSW could be supported over the medium to longer term.
This includes more than 80 jobs to maintain new and existing hardwood plantations, over 550 jobs in hardwood manufacturing with the potential for more as plantations mature, and over 550 jobs to manage and restore the two million hectares of additional protected forest areas.
Jailene Santana, Forest Futures Specialist, WWF-Australia, said:
A plan to support employment in bush economies is a crucial step towards ending the destruction caused by native forest logging.
Native forest logging runs at a loss, is a burden on taxpayers, and the jobs associated with it are not secure.
But the NSW government can change that narrative.
It has an opportunity to invest in reforms that provide sustainable employment, improve regional economies and community wellbeing, and buffer NSW against some of the impacts of climate change and biodiversity loss.
It’s the NSW government’s responsibility to manage a just transition out of native forest logging.
That must include support for impacted Aboriginal communities to move into jobs in forest management, expanded plantations, new hardwood manufacturing techniques, and First Nations tourism.
Frontier Economics Managing Director Danny Price said:
Our analysis shows that ending native forest logging alongside a carefully thought-out structural support package could deliver more jobs than are currently provided by native forest logging.
There is no need for job losses if the transition is carefully planned and implemented.
In the absence of much needed change, the public native forest sector is set to continue its decline and shed more regional jobs in the process.
Lead author and economist with Frontier Economics Graham Phelan said:
The NSW government has an important role in coordinating the transition out of public native forest logging and attracting investment to assist the sector move to a more sustainable footing.
Regions like the Bega Valley and Port Macquarie-Hastings have shown they can adapt to changes in public native forest logging.
With the right investments these communities have a real opportunity to benefit from a more sustainable hardwood sector.