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6    MARKET BEATS                                                                 MAY/JUN 2026 FDM ASIA | www.fdmasia.com






         Riekkinen                                              On fires, Lima argued that the spike in late 2024 should be
                                                             seen less as a policy breakdown than the result of exceptional
                                                             climate conditions: a strong El Niño, North Atlantic warming
                                                             and two consecutive years of drought that left the Amazon
                                                             far more flammable.
                                                                He said the government has since stepped up its response

                                                             with  $380  million  for  fire  control,  new  prevention  rules  and
                                                             more support for state fire brigades and municipal involvement.
                                                                “A good year is a good year, but you need good years
                                                             forever if you’re going to conserve the tropical rainforest,” said
                                                             Matthew Hansen, a remote sensing scientist at the University
          closely to shifting cultivation patterns, demand for wood fuel   of Maryland and director of its Global Land Analysis and
          and poverty.                                       Discovery (GLAD) laboratory. “And we like  the news from
            Fires increasingly interact with those pressures. They have   this year.”
          consumed twice as much tree cover in the past three years

          as they did between 2003 and 2005, according to WRI.   Federal government allocates $12 million to B.C.
            In the tropics, most fires are sparked by human activity,   Forestry sector
          but hotter and drier conditions linked to climate change are   The federal government has announced it is investing about
          making forests more flammable and allowing wildfires to   12  million in British  Columbia′s forestry  sector, following
          spread farther and cause more damage.              recent support of 1.5 billion for other Canadian industries hit
            Brazil, which encompasses two-thirds of the Amazon, the   by tariffs, reported from mfat.govt.nz.
          world’s largest rainforest, recorded the largest absolute area   Energy Minister Tim Hodgson made the announcement

          of primary forest loss. But it cut that loss by 42 percent from   at a sawmill in Richmond in recent days.
          the previous year.                                    Hodgson said the funding will prioritise 14 projects that
            The report attributes the decline to stronger environmental   use low-carbon wood technology, expand the use of mass
          policy and enforcement under President Luiz Inácio Lula da   timber in construction, or are Indigenous operated.
          Silva.                                                He said the investment is part of Canada's strategy to
            The improvement stands in stark contrast to 2024, when   diversify its wood production and become less reliant on the
          Brazil’s Amazon suffered its worst drought on record, fuelling   US amid its "unjust" tariffs.
          unprecedented forest fires.                           "What  we've  been doing is working  with  the  industry,
            André Lima, Brazil’s secretary for deforestation control,   working with provinces, working with Indigenous communities

          said in a phone interview that the country’s forest policy rests   on  a transformation," Hodgson said, adding the  goal is to
          on “two agendas that are intertwined”—curbing deforestation   become less reliant on commodity products.
          and controlling fires.                                British Columbia Premier David  Eby was  critical of the
            He said the government relaunched the federal anti-  federal government after tariff relief announced in recent weeks
          deforestation plan in 2023 under Lula and is now beginning   omitted the lumber industry, which has been combating US
          to see results. Citing Brazil’s official data, Lima said Amazon   duties and fees for decades.
          deforestation fell 50 percent in 2025 compared with 2022.  Eby said he was concerned that it was prioritising other
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