Le potentiel écologique et économique du bois massif dans la construction

The widespread adoption of wood, particularly solid wood (or large timber, for structural and load-bearing elements), to replace or coexist with concrete and steel, could reduce building greenhouse gas (GHG) emissions by up to 25%, according to RBC bank.

In a note published on November 1st (Timber structure: what is the contribution of wood to ecological construction in Canada?), Myha Truong-Regan, head of research at RBC’s Institute for Climate Action, points out that producing solid wood emits much less GHG than producing concrete and steel.

The production of concrete and steel requires very high heat – between 1400 and 1600 degrees Celsius – to transform raw material in blast furnaces or ovens. On the other hand, such heat is not necessary to produce solid wood.

For example, according to the International Energy Agency (IEA), the energy to power blast furnaces – of fossil origin, such as coke/coal – to produce steel accounts for 87% of the emissions generated in the production process of this input.

The Intergovernmental Panel on Climate Change (IPCC, an organization under the United Nations) also advocates the use of wood in construction.

According to the IPCC, wood products can replace construction materials with higher fossil fuel intensity, such as concrete, steel, aluminum (made from fossil fuels), and plastic, which can lead to significant reductions in GHG emissions.

In 2022, the building sector was the third largest carbon emitter in Canada. Its emissions reached 92 million tonnes (Mt) of CO2 equivalent, accounting for 13% of total emissions across all sectors.

The building sector is surpassed by the production of oil and natural gas as well as the transportation sector.

The RBC note emphasizes that solid wood was first used in 2007 as a complement or alternative to concrete and steel in Canada – excluding buildings constructed at the end of the 19th century with large timber.

Limited use of solid wood in North America

In 2022, there were 661 solid wood projects completed in Canada, with 30% in Quebec, which ranks second after British Columbia (42%). Ontario – by far the most populous province – is home to 15% of projects completed in the country.

In a building, for example, wood can be used to construct floors, walls, and windows, as well as insulation and roofing.

That being said, solid wood is currently very rarely used in North America, as can be seen in this table.

Solid wood represents barely 1% of the construction materials used, while concrete and steel total 81%. (Source: RBC)

The increased use of wood would also have economic implications in Canada, notes Myha Truong-Regan.

“In addition to emissions reductions, the increased use of solid wood in building construction could, with a conservative estimate, grow the solid wood market by one billion dollars by 2030,” she writes in the 12-page note.

In her view, there are also business opportunities elsewhere in the world.

In 2022, the global solid wood market generated sales of 1.6 billion dollars (CA). This year, it is expected to reach 1.9 billion and more than double to 4.9 billion by 2030.

At the end of the decade, Canada’s share in the global market would be 20% – as it is in 2023.

Constraints on sector growth

While the potential for growth in the solid wood industry is significant, there are two major obstacles to the development of this sector in Canada, according to RBC.

On one hand, insurance premiums related to building construction with solid wood “can be up to 10 times higher than those associated with a similar building designed in steel and concrete,” notes Myha Truong-Regan.

It goes without saying that this increases project costs, making them less competitive compared to buildings made solely of concrete and steel.

On the other hand, the barriers to entry into the industry are very high due to initial capital costs. “The high cost of manufacturing equipment also prevents new players from entering the solid wood sector,” says Myha Truong-Regan.

For example, to start a business, the cost of manufacturing equipment is $200 million, for an area of 50,000 square meters (or 538,195 square feet).

In this context, RBC believes that regulatory authorities and governments must do two things: standardize insurance underwriting to lower costs and continue to fund capital grants to help new entrepreneurs.