This is the last edition of Wood Matters for the year. Many of the articles this month have a reflective tone, which often happens at this time of the year. Much has happened throughout the year, but the notable features have been relatively stability in the log market, and the commensurate benefits of lower volatility in the forest-to-market supply chain – something that benefits many businesses in, and close to, the sector. The other notable feature has been the abandonment of any meaningful policy settings in the Emissions Trading Scheme. PF Olsen has been involved with a number of parties who, as one would expect (and as the government had wanted), responded to the ETS and invested in new forest planting and other carbon-related initiatives. These people have received a clear message from the government – don't respond entrepreneurially to policy settings established by the government as we are just as likely to reverse them. Better to sit around and do nothing. The rhetoric that NZ is paying an international price for carbon is bollocks as most other countries either block, or put a restriction on, the use of ultra-low cost units, or have a floor price for carbon. What the NZ government has achieved with its ETS is a really high-cost way of achieving absolutely no behavioural change and little re-allocation of resources into green-house gas reducing activities. All this at a time when the IPCC has upgraded the likelihood of human-induced climate change (and its likely devastating effects) from very likely to extremely likely.

On a more positive note, thanks to all PF Olsen's clients, suppliers, contractors and log purchasers for working with us for 2012. We look forward to working with you again in 2013. And to all the Wood Matters readerswe hope you have gained something from our articles and commentary.

From PF Olsen, have a very Merry Christmas and wishing you a Prosperous and Happy New Year.

In accordance with past practice, we will skip any January edition of Wood Matters but be back with gusto in February 2013.