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11 Jul.2017

LULUCF: Forestry, paper and agri-sectors team up in favor of a dynamic forest reference level

The Environment Committee (ENVI) of the European Parliament today adopted the draft report of the Committee’s Rapporteur, MEP Norbert Lins, on the regulation of Land Use, Land Use Change and Forestry (LULUCF). The policy is of utmost importance for the forest and agricultural sectors as it defines the climate benefits of forest management and the use of wood.

A key element of the regulation is how to account for emissions and removals from forests. As a part of the 2030 Climate and Energy Framework, the European Commission proposed new EU LULUCF accounting rules for forests using a “Forest Reference Level” based on past (1990-2009) management practices and intensity.

Today, the ENVI Committee decided to continue this approach by voting in favor of a compromise to compare forest management intensity in 2020-2030 to the historical period of 2000-2012.

The approach of comparing future forest use to historical management intensity has been heavily criticized by the forest and agricultural sectors. The latter point to the fact that, in order to take advantage of the full potential of long-term benefits from sustainably managed forests and harvested wood products as regards climate change mitigation and adaptation, Forest Reference Levels must take into consideration the most recent data on forest resources and relevant policies. While the efforts made by the EP Committee are to be acknowledged, substantial work is still needed to improve the proposal.

We should not penalize countries that did not use the full sustainable potential of their forests in the past. Member States should be able to use their growing forests for developing a fossil-free bioeconomy and forest owners should be enabled to continue investing in sustainable forest management – the best long-term strategy to maintain the carbon sink and ensure the climate benefits of forests,” says Emma Berglund, Secretary General of CEPF.

Forest resources are growing in Europe and we should promote the use of sustainably-sourced wood from European forests to reach the climate and energy targets and to develop a sustainable bioeconomy. In fact, the EU Forest Strategy calls for management, growth and the use of forests, and this goes far beyond just considering them as a carbon stock,” says Piotr Borkowski, Executive Director of EUSTAFOR.

A dynamic Forest Reference Level is essential for ensuring investments are made where it matters most: in sustainable forest management. Let’s keep Europe’s forests on a pro-growth trajectory that both maintains Europe’s forest carbon sink and unleashes the true potential of its bioeconomy,” says Sylvain Lhôte, Director General at CEPI.

"Use of wood from sustainably managed forests is THE key to concretely tackle climate change. European regulators must have the ambition to set a coherent and lively Forest Reference Level to maintain the forests carbon sink and ensure proper material availability that will allow the society to fully benefit from the carbon storage offered by Harvested Wood Products," says Patrizio Antonicoli, Secretary General of CEI-Bois.

We seriously regret the vote in the Environment Committee,” underlines the Chair of the Copa & Cogeca Environment Working Party, Liisa Pietola. “It is a loss for the rural community’s growth and jobs and the climate. Countries are suffering more and more from extreme weather events and forest fires, and this will penalise them further. We are the only sectors that remove emissions from the atmosphere. The opinion of the Agriculture Committee was completely ignored.”

The umbrella organizations of the forest, paper and agricultural sectors in Brussels urge all MEPs to look at the big picture concerning the climate change mitigation and adaptation of forestry. In the transition period from a fossil-based society, all outlets of forestry are needed and benefits should be examined in the long term.

EUSTAFOR, Copa and Cogeca, CEPF, CEPI and CEI-Bois remain confident that the upcoming discussions in the European Parliament and Council will have a positive impact on the further development of the proposal.

For further information, please contact:

Confederation of European Forest Owners (CEPF):
Secretary General, Emma Berglund - emma.berglund@cepf-eu.org

European State Forest Association (EUSTAFOR):
Policy Advisor, Salvatore Martire: salvatore.martire@eustafor.eu
Communications Director, Juha Makinen: juha.makinen@eustafor.eu

European Farmers and European Agri-Cooperatives (Copa and Cogeca):
Senior Policy Advisor, Evangelos Koumentakos - Evangelos.Koumentakos@copa-cogeca.eu
Press Officer, Amanda Cheesley - Amanda.cheesley@copa-cogeca.eu

Confederation of European Paper Industries (CEPI):
Director General, Sylvain Lhôte - s.lhote@cepi.org
Press Officer, Ben Kennard – b.kennard@cepi.org

European Confederation of Woodworking Industries (CEI-Bois):
Secretary General, Patrizio Antonicoli - patrizio.antonicoli@cei-bois.org
 

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11 Jul.2017

Reaction by Sylvain Lhôte, Director General at CEPI to ENVI (Environment) Committee vote on LULUCF

“The ENVI committee has missed the logic that LULUCF should focus on growing forest through investment rather arbitrarily capping its use as a resource. Freezing, over the next decade, the use of growing forestry will endanger the carbon sink Europe needs in 2050 and beyond” says, Sylvain Lhôte, Director General at the Confederation of Europe Paper Industries.

For press related enquiries please contact Ben Kennard, Press Officer at b.kennard@cepi.org or by phone at (+32) 487 39 21 82

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07 Jul.2017

EU launches trade investigation against Turkey following complaint by the European paper industry

Today the EU has decided to launch investigations against Turkey for breach of EU-Turkey Customs Union and WTO rules confirming the validity of a complaint lodged by the European paper industry.

CEPI, the independent voice of the paper industry in Europe, presented a trade complaint (Trade Barrier Regulation (“TBR”)) to the European Commission on the 24 April 2017. The complaint concerned the unfair non-automatic import licensing system established by Turkey concerning, inter alia, EU exports of certain varieties of paper including office paper, books, envelopes and paper used for direct mail marketing (otherwise known as uncoated wood free (“UWF”) paper). This is both the first time a TBR complaint has been launched in almost ten years and the first time CEPI as an industry association has lodged a trade complaint.

"Today’s launch of this investigation is an indictment of the Turkish authorities’ reluctance to maintain a level-playing field when it comes to free trade. Turkey should withdraw, in the spirit of the EU-Turkey Customs Union and its WTO commitments, any unfair trade barriers” say Sylvain Lhôte, Director General at CEPI.

The unfair non-automatic import licensing system puts at risk over €150 million worth of EU exports of these varieties of paper. At a time when global free trade is under increasing pressure the European paper industry urges the Turkish authorities to stand on the side of free trade. The paper industry already exports 22% of its entire produce outside the EU and will continue to remain an advocate for free trade and take a firm stance where this is put at risk.

What can be expected next? Within a five to seven month period the Commission will now engage in a detailed investigation of the concerns raised by CEPI resulting in a report which may warrant the launch of WTO proceedings.

Background to the trade complaint: Following an inconclusive safeguard investigation on UWF imports in 2014-2015, Turkey extended in 2016 an existing import licensing system which targeted €150 million of EU exports of UWF paper products. The Turkish non-automatic import licensing system with regard to UWF paper is based on an arbitrary price threshold and creates a significant and unfair obstacle to EU-Turkey trade. As such, the contested system poses a clear violation of WTO and EU-Turkey Customs Union Agreement.

Publication in the Official Journal of the European Union: the link to the publication can be consulted here.

For more information, please contact Bernard Lombard, Industrial Policy Director at b.lombard@cepi.org or by phone at (+32) 2 627 49 22

For press related enquiries, please contact Ben Kennard, Press Officer at b.kennard@cepi.org or by phone at (+32) 487 39 21 82

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06 Jul.2017

European paper industry’s perfomance resilient in 2016, demonstrates CEPI’s latest key statistics

In the background of increasingly uncertain global markets, European production of paper and board demonstrated resilience in 2016. This not only continues the trend of recent years but exceeds the performance of other key paper-producing regions including the United States and Canada.

European consumption of paper and board has exhibited a rise for the third consecutive year, growing by 0.3% in 2016, driven by stronger demand for certain categories of paper products particularly sustainable packaging, hygiene and speciality papers. The rise in consumption has also had a knock-on effect on imports into CEPI countries which rose by 4.5% in 2016 (7.2% of total European paper consumption). Despite this trend and increased competition globally the industry remains a net exporter, exporting approximately 21% of its production.

On another positive note a 2.7% increase was witnessed in pulp production putting a halt to recent years of decline. This was buoyed by an increase (17.8%) in the export of market pulp to non-CEPI countries, particularly Asia (20.8% increase). Utilisation of paper for recycling has remained relatively stable as in previous years exhibiting a slight increase in 2016. The collection of paper for recycling has also moved in the right direction, displaying a modest increase of 1.0%. At the same time, exports of paper for recycling have increased by 5.6% the majority of which reached Asian markets (91.7%).

Additional information: CEPI’s key statistics, audited by Deloitte, are the primary publication of reference for the most up-to-date statistics on European industry production and market developments. The statistics are a compilation of data received by CEPI members (national associations with pulp and paper companies as members) under the auspices of CEPI’s Statistics Network. Some additional sources, such as Eurostat, have been used where necessary and relevant. Extra statistical information is accessible to members on CEPI’s Members Area and to non-members by subscription. To subscribe for our extensive statistics offer for non-members please visit our website here.

For more information, please contact Eric Kilby, Statistics Manger at e.kilby@cepi.org or by phone at (+32) 32 2 627 49 37

For press related enquiries, please contact Ben Kennard, Press Officer at b.kennard@cepi.org or by phone at (+32) 487 39 21 82

About CEPI:
The Confederation of European Paper Industries (CEPI) is the pan-European association representing the forest fibre and paper industry. Through its 18 national associations CEPI gathers 495 companies operating more than 900 pulp and paper mills across Europe producing paper, cardboard, pulp and other bio-based products. CEPI represents 22% of world production, €81 billion of annual turnover to the European economy and directly employs over 175,000 people

 

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01 Jun.2017

European paper industry reaction to the US administration's withdrawal from Paris Agreement on climate change

"The US administration’s decision to step down from the Paris Agreement sadly puts at risk the global efforts needed to address climate change. It also regrettably reflects a view that climate action would undermine industry competitiveness. To make the case for action - and win back the US, Europe must decisively demonstrate that decarbonisation can go hand in hand with industrial competitiveness and investments. The European paper industry has a vision through its Investment Roadmap to decarbonise by 80%, create 50% more added value and increase its investment by 40% by 2050. This should be done in the background of a Paris Climate Change Agreement which provides a solid framework for climate action and fosters a global level playing field" says Sylvain Lhote, Director General at CEPI

 

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19 May.2017

PAMSA´s Jane Molony Named President of the International Council of Forest and Paper Associations

SÃO PAULO – The International Council of Forest and Paper Associations (ICFPA) announced Jane Molony as its new president. Molony, Executive Director of the Paper Manufacturers Association of South Africa (PAMSA), will serve in this capacity for the next two years.

“Across the world, wood, paper and tissue products touch lives every day in ways that often go unnoticed. Without our industries’ products, many people would not be able to teach, read or learn; businesses would not be able to ship merchandise, or protect goods; nor would people be able to improve their lives through the basics of personal hygiene. Forest and paper products also have a great environmental and economic story to tell. It is a story that has been proudly told by the ICFPA for 15 years. I am particularly honoured to take charge of this group of leaders,” said Molony.

Molony was elected at the ICFPA’s annual meeting in Berlin, Germany. The meeting was attended by 18 representatives from ICFPA members associations, who discussed future activities, cooperation and sustainability-related issue.

Molony succeeds Elizabeth de Carvalhaes, president and CEO of the Brazilian Tree Industry, who served as ICFPA president for the past three years.
“It has been a privilege to help the ICFPA continue its legacy of advocacy on important issues of interest of this global industry, and I have put significant efforts in communication. I believe this industry has a remarkable story to tell and we are just scratching the surface when it comes to public awareness and understanding of the sustainable benefits of the global forest products industry,” said Carvalhaes. “It was a great pleasure and honor to be part of this important forum and network of leaders and Ibá will continue to advocate towards the global forest industry and the plantations based industry locally and globally.”

“On behalf of the entire ICFPA, I would like to thank Elizabeth for her leadership and guidance,” said Molony. “I look forward to continuing to work with her and the other members of the steering committee to ensure a strong global forest products industry.”

The ICFPA represents more than 30 national and regional forest and paper associations around the world.

For more information about the sustainability of the global forest and paper industry, visit icfpa.org.
 

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24 May.2017

Methodology for the development of a systematic approach to derive suitable BAT-AELs ranges

The above signatories have signed a proposal for the development of a systematic approach for deriving suitable BAT1-AEL2s ranges, submitted to DG Environment of the European Commission. 

The legal obligation for permitting authorities to set the emission limit value for a given pollutant at a level that ensures that, under normal operating conditions, emissions do not exceed the BAT-AEL, has far-reaching consequences. BAT-AELs have to be implemented as ELV3s and industrial installations have to comply with those. A systematic approach to derive the BAT-AEL as a result of the BREF review process and the data collection performed in that context is therefore a must. A robust and transparent approach will secure consistency for stakeholders throughout the BREF review process, as well as for regulators and operators at permitting level. Based on both the Guidance published in the Official Journal of the EU in March 2012 and on our combined industrial experience, we have outlined in this paper an approach which should help deriving both ends of the BAT-AEL range systematically. This is crucial if one wants to preserve the integrity of IED implementation through appropriately-designed and truly applicable BAT conclusions, technically achievable and economically viable BAT-AELs.

Save

1. Best Available Techniques

2. Associated Emission Levels

3 Emission Limit Values

More on BREF (Joint Research Center website).

Read the full document:

Save

Save

 

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19 May.2017

Circular Economy: three leading industries renew call for a single measure of ‘real’ recycling rates

Member States today agreed their negotiating mandate on Circular Economy waste proposals, paving the way for trialogues with the European Commission and Parliament. EUROFER, CEPI and Eurometaux now appeal for all EU institutions to prove their Circular Economy ambition, by working constructively towards a single measure of real recycling.

Axel Eggert, EUROFER’s Director General: “Every institution has now acknowledged that Member States need to start calculating recycling rates at the same point, which is not the case under present legislation. However, the Parliament has been the only institution to propose the right solution: a single measure without derogation. We’ll be working with policymakers to make the best of the proposals, and to aim for one measurement at the input point of the final recycling process. The worst possible outcome is one where we are left with a permanent loophole that allows Member States to circumvent requirements”.

Sylvain Lhote, CEPI’s Director General: “Today three of Europe’s recycling leaders have united to emphasise the importance of measuring ‘real’ recycling rates. Making the Circular Economy happen in Europe means we must be able to measure the actual recycling rate. This will allow better targeting of investment where it matters most - better systems of collection and sorting that enhance the quality and quantity of what is recycled which in turn boost industry development”

Guy Thiran, Eurometaux’s Director General: “Until we have a common method to measure how much of our waste gets recycled, it doesn’t matter whether the EU’s headline recycling target is 65 per cent or 70 percent. EU negotiators need to make a strong calculation method their top priority. We can only gage the realism and ambition of recycling targets once we know what Member States will be measuring”
 

About CEPI: CEPI is the pan-European association representing the forest fibre & paper industry. Through its 18 national associations CEPI gathers over 500 companies operating 940 paper mills across Europe producing paper, cardboard, pulp & other biobased products. Building on its target of achieving a 74% effective recycling rate within the next three years CEPI is at the forefront of making the low-carbon circular bioeconomy a reality in Europe through its 2050 ‘Investment Roadmap’.

Contact Person: Ben Kennard, Press Officer, b.kennard@cepi.org

About Eurometaux: Eurometaux is the decisive voice of non-ferrous metals producers and recyclers in Europe. With an annual turnover of €120bn, our members represent an essential industry for European society that businesses in almost every sector depend on. Together, we are leading Europe towards a more circular future through the endlessly recyclable potential of metals.

Contact Person: Chris Heron, Communications & Public Affairs Manager, heron@eurometaux.be, +32 493 18 89 63

About EUROFER: The European Steel Association (EUROFER) is located in Brussels and was founded in 1976. It represents the entirety of steel production in the European Union. EUROFER members are steel companies and national steel federations throughout the EU. The major steel companies and national steel federations in Switzerland and Turkey are associate members.

Contact Person: Charles de Lusignan, Communications Manager, charles@eurofer.be

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19 May.2017

CEOs of the Global Paper and Forest Industry discuss future direction of industry

SÃO PAULO – The International Council of Forest and Paper Associations (ICFPA) eighth biennial International CEO Roundtable today took place in Berlin, Germany. More than 20 forest based industry CEOs and association leaders from around the world met to discuss industry innovation, sustainability aspects, current political aspects and future trends that may impact the industry at local and international levels.

“The global forest and paper industry stands firm in achieving its sustainability commitments based on its common values. Today’s conference provides us with an opportunity to reaffirm these values in today’s interconnected and fast-paced world,” said Peter Oswald, Mondi Group CEO designate (from 11 May 2017), who chaired the roundtable.

The CEOs discussed industry improvements in sustainability practices and innovation. They also watched the 3 global finalists of the Blue Sky Young Researchers and Innovations Award presenting their projects in a wide range of activities relevant to forest-based science, products using forest-based raw materials, process improvements or other innovations throughout the value chain. The global finalists of the Award and their respective projects can be found here

Keynote speaker Prof. Dr. Michael Huether, economist and director of the Institute der deutschen Wirtschaft, provided insights about the effects of Global Political Disruption on the forest based industry.

The next ICFPA International CEO Roundtable will take place in Canada in 2019.

Note to editor:

The ICFPA represents more than 30 national and regional forest and paper associations around the world which can be found here.

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17 May.2017

European paper industry reaction to Fertilizers Europe “alternative facts” in “Allowances balance calculation in the EU ETS” Ecofys report

On 15 May 2017 Ecofys published the report “Allowances balance calculation in the EU ETS”, commissioned by Fertilizers Europe.

The document is full of omissions in data collection and analysis. Although the authors acknowledge such shortcomings throughout the whole report, they still conclude that, even with improved accuracy “by performing an extensive data collection […] it is expected that the main conclusions of this study would remain the same”. In other words: the results would be the same, regardless of facts and figures.

Such a statement would be sufficient to disregard this alleged “objective study”.

Yet in CEPI we are strongly convinced that facts and figures are essential to developing informed decisions. CEPI facts and figures are backed by our in-house statistical team and are third-party verified. We believe this ethos should equally apply to others.

As the Ecofys document is built on an impressive amount of misleading or “adjusted” information, we believe it is imperative to rectify the claims against the pulp and paper industry:

1. Sector definition and cross-boundary heat flows

A whopping 20% of additional carbon emissions for our industry are not accounted for in the Ecofys report.

In the ETS, emissions from heat are allocated to the heat consumer, not the heat producer (where emissions effectively take place). Heat-related emissions are thus not counted under the ETS registry codes “pulp and paper” but under “combustion installation”, even if these emissions happen within the perimeter of the industrial site.

The impact of these emissions is massive: the sector actually moves from having a surplus to having a shortage of allocations[1].

Ecofys is well aware of the impact heat flows calculations has on industry allocation, particularly for the pulp and paper industry. Yet, it decides to disregard them, concluding that “indicatively” the pulp and paper industry has “an allowance surplus that carries long into phase IV”.

Clearly, by using “alternative facts”, anything can be “indicatively assumed”. 

2. Emission levels in Phase III

Despite concrete achievements, our sector’s emission reductions have not matched the allocation reductions induced by the cross-sectoral correction factor. For example, in 2016 only our sector was 4% under-allocated.

Our sector is under-allocated and, unless major disruptions happen, will remain so until at least 2020. The regulatory impact post-2020 is still unknown.

Any increase in allocation surplus for our sector, as illustrated in the Ecofys report from 2014 to 2020, is unreal and unrealistic.

3. Emissions carried over from Phase II

First and foremost, the above-mentioned cross-border heat flow applies also here. The figures lack data on emissions from combustion installations in the paper industry. Had these figures been taken into consideration, they would have shown a cumulative surplus in line with other industrial sectors. This comes to no surprise as the pulp and paper industry, like all industries, was heavily hit by the economic and financial crisis.

Moreover, at the beginning of Phase II, in 2008, the pulp and paper industry had 872 open permits in the ETS. In 2013, at the beginning of phase III the open permits were reduced to 825.

Many of the installations that closed were small and medium enterprises, often family-owned. When an installation closes those allowances are gone: either released to the market or cancelled. There is no intra-company transfer.

Unused allowances released to the market could be in anyone’s account, including in fertilizer companies.
Assuming that all those allowances remained at the disposal of the pulp and paper industry for future use, painting the image that the sector is sitting on an immense amount of unused credits, is purely fictional.

4. Carbon intensity improvements (past, present, future)

The pulp and paper industry is proud of the achievements reached in reducing carbon emissions over the past years. Since 2005, when the ETS began, we have reduced our carbon intensity by around 21%.

This was the result of real investments and it lead to the creation of jobs and growth. In the recent years we have been investing 3.5 bn €/year, including investments in energy efficiency and higher use of renewable energy sources.

In fact, in some countries we have even achieved an impressive 75% emission reduction since 2005, without jeopardising international competitiveness.

The Ecofys report, on the contrary, retroactively assumes no historic emission intensity improvement occurred. Nor future emission intensity improvements are foreseen.

We strongly disagree.

5. The misplaced logic of “improvements are not possible”

The carbon footprint of the pulp and paper industry is already very low (0.7%of EU GHG emissions) and will further reduce.

We see tremendous potential in linking the low-carbon economy to the bioeconomy and the circular economy. Our mills are already producing cost-effective low carbon solutions to replace carbon intensive products.

For instance, looking at fertilisers:
• Bio-based fertilisers → ETS benchmark: 0.02 - 0.12 tCO2/t (pulp)
• Fossil-based fertilisers → ETS benchmark: 1.619 tCO2/t (ammonia)

There is definitely some untapped potential to be exploited!

The Ecofys report, on the contrary, assumes no improvement in carbon-intensity both in the past and the future. Meaning rewarding incumbents and putting up barriers to innovation.

We strongly disagree.

In conclusion

Climate change is a serious threat, and needs to be treated seriously. We need to refocus on investments in the EU economy, driving the transition towards a low-carbon economy where Europe leads by example

Within this context, the ETS needs to promote and reward those investing in low-carbon technologies and solutions.

All sectors are important and should be treated equally. And they all need to contribute.

The clock is ticking and 2021 is just around the corner. We need to close the ETS negotiations as soon as possible, to give industry the regulatory predictability needed to start planning the next wave of low-carbon investments.
 

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