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08 May.2015

Global Forest and Paper Industry Releases Policy Statement on Paper Recycling

The International Council of Forest and Paper Associations (ICFPA) released its policy statement on paper recycling. The statement was approved at the ICFPA’s annual meeting held on May 5th in Washington, D.C.

The full statement is available at http://www.icfpa.org/uploads/Modules/Publications/icfpa-statement-on-paper-recycling.pdf.

“Forest and paper associations around the world recognize the importance of paper recovery for recycling,” said outgoing ICFPA President Donna Harman. “With this policy statement, we are encouraging national governments to pursue best practices to enable recovered fiber to find its highest end-use.”

The global paper recycling rate stands at about 58%. Some developed countries have achieved as high as 70 to 75%. Many developing countries are establishing infrastructure to help improve paper recycling rates.

The statement calls for educating citizens on the importance of recycling, allowing the marketplace to determine recovered fiber’s best end-use, and ensuring functioning waste markets while respecting national contexts and systems. The ICFPA believes that extended producer responsibility (EPR) systems “should not be a preferred choice where existing markets for collections and reuse of recovered paper are efficient and effective.” Instead, improved sorting of waste should be prioritized to increase and ensure the quality of recovered fiber.

The ICFPA’s statement is the latest in a series of policy statements underwritten by its members associations. All ICFPA policy statements are available at icfpa.org/resource-centre/statements.

The ICFPA represents more than 30 national and regional forest and paper associations around the world. Together, ICFPA members represent over 90 percent of global paper production and half of global wood production.

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

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29 Apr.2015 ,

Strategic choices for ETS Post-2020: Allow energy intensive industries to be competitive and grow in Europe

The Alliance of Energy Intensive Industries, representing over 30.000 European companies and 4 million jobs, wishes to be an active contributor in the upcoming revision of the EU ETS. This paper contains Alliance proposals on carbon leakage protection, free allocation principles and competitiveness under ETS Phase IV to ensure simple, fair, predictable and effective rules i.e.:
- Carbon leakage protection needs to be the first element of the ETS revision based on the same criteria and assumptions as under Phase III, as well as on technically and economically achievable benchmarks;
- An EU-wide harmonized system must be put in place, which fully off-sets direct and indirect costs at the level of the most efficient installations in all Member States; therefore, no cross-sectoral correction factor should be applied to free allocation;
- Allocation methodology must be closely aligned with real/recent production levels;
- Innovation support must be extended to industrial sectors;
These principles are fully compatible with the March and October 2014 European Council Conclusions and reflect the industry contribution to the Commission questionnaire, following the meeting with Commissioner Arias Cañete in February 2015. Those principles are further detailed below.


Best industrial performers must not be penalized by ETS allocation rules
The concept of declining free allocation for industry is in contrast to the need for full protection against carbon leakage and should not serve as a justification to reduce protection. The limit on the total issuance of allowances in ETS sectors defined by Heads of State and governments covers both free allocation and auctioning. They did not impose a decrease of free allocation as such. On the contrary carbon leakage provisions should be improved in order to encourage carbon-efficient production and growth in Europe, and allocation must be guaranteed at the level of realistic benchmarks. Only predictable and effective carbon leakage measures will enable companies to invest in innovative solutions in Europe.


Accordingly there should be no direct and indirect cost at the very least at the level of most efficient European installations in sectors at risk of carbon leakage.
The effect of the cross sectoral factor (CSCF) is that even the best performers cannot achieve these levels due to economic, technical or thermo-dynamical limits. Ignoring this turns the EU ETS into a penalty system rather than an incentivising system.
For that reason, all our sectors call for a deletion of the CSCF, in accordance with the European Council conclusions of 23-24 October 20141.


Current carbon leakage assessment methodology remains valid
The carbon leakage risk will not decrease and may well increase on the contrary:
- It can currently not be expected that there will be a large breakthrough in negotiations at international level that would lead to climate policies, imposing equivalent carbon costs for industries located in competing regions.
- Meanwhile, the GHG reduction target will be increased to 43% for EU ETS sectors compared to 2005 levels (meaning that the cap will be tightened)
- The Market Stability Reserve will result in rapid carbon price increases.
All Energy Intensive Industries should receive full protection at the level of the benchmark. Consequently, the quantitative and qualitative carbon leakage risk assessment criteria and assumptions as defined in 2008 remain fully valid and must remain unchanged. Energy Intensive Industries are characterised by long investment cycles. The carbon leakage list must only be updated at the beginning of each trading period.
Also, since the risk of carbon and investment leakage remains as acute as ever for EU industry, introducing differentiation in the level of protection will lead to unequal and incomplete protection for sectors at risk, and could have negative repercussions on EU industrial value/supply chains.


Establishing technically and economically achievable benchmarks
The benchmarks should be updated maximum once, ahead of each trading period to provide planning certainty for participants, decrease the administrative burdens and provide an appropriate reward for those that have invested in emissions efficiency.
The update of the benchmark values should be based on data collection from the EU companies. The process of establishing benchmarks must be as transparent as possible. If in a sector, no relevant changes in technology have taken place, such sector can request a simplified approach for data collection.
These benchmarks have to be representative for the sectors and based on representative technologies that have been adopted by the European market. Over-ambitious benchmarks artificially increase costs to industry overall and de facto undermine the effectiveness of the carbon leakage provisions. The current rules are already very stringent, as benchmarks are set according to the average of the top 10% most efficient installations in the sector; hence, even without the cross-sectoral correction factor, around 95% of the installations have to purchase allowances.


Indirect carbon costs need to be fully compensated throughout Europe
The current implementation of carbon leakage measures to deal with indirect carbon costs has resulted in a fragmented approach as eligible sectors exposed to electricity price increases due to carbon costs may only receive from few Member States a partial financial compensation. This creates an uneven playing field in the internal EU market, and creates a disadvantage for those installations that are not receiving any, or only partial, compensation, vis-à-vis extra-EU competitors.
While designing the new system, several measures/principles should apply:
- EU-wide harmonized system, which fully off-sets indirect costs (100% of the CO2 cost-pass through in electricity prices) at the level of the most efficient installations in all Member States and reflects most recent production levels. Sectors with a fall-back approach should also be properly treated.
- Cost compensation could be assured using different complementary mechanisms (free allocation and/or harmonised financial compensation).
- Mechanisms should ensure predictability over the entire trading period by being described in the revised directive. The current system is unpredictable, as it relies on a state aid compensation assessment, and is granted annually, digressive and uncertain for future years.
- The eligibility assessment for such an EU-wide scheme should be based on a consistent methodology that identifies qualified sectors on the basis of their exposure to indirect carbon costs or their total electro-intensity.
- As indirect costs arise from the price setting mechanism prevailing in the power sector (marginal price setting), an EU-wide compensation scheme should be in place without delay.
For the longer term, the Commission should also assess the possibility of redesigning the electricity market in a way that prevents carbon cost pass through in electricity prices to sectors at risk of carbon leakage.


System based on real/recent production must replace the ex-ante straightjacket approach
Moving to an allocation methodology closely aligned with real/recent production levels would provide the required allowances at the level of the benchmark to companies expanding or restarting production to avoid undue costs, help prevent over- or under-allocation, stop rewarding ETS participants for moving production overseas and ensure simplified and fairer rules as regards new entrants, capacity increases or decreases, plant rationalisation and partial cessation. For example, the reference period could be the rolling year n-2. The required production data are already available as verifiers have to ascertain the activity data needed for the allocation. The bureaucratic burden will be therefore minimal.
For installations covered by fall-back approaches as opposed to benchmarks, emission reductions resulting from efficiency measures should not result in a penalty.


Creating a reserve for growth
To ensure sufficient availability of allowances for free allocation for industry, a reserve for growth would be needed. This reserve for growth would act as a buffer to ensure predictable access to both free allocation and auctioned allowances.
There are several ways to operate this proposed reserve for growth:
- It can be filled with unused free allowances due to lower production in phase III, back-loaded allowances, un-allocated allowances from New Entrants Reserve. Then it can provide allowances for growth in case of higher production.
- In addition, the Market Stability Reserve could also be used as the source for granting such allowances, if it would be designed as a sink for unused allowances from which allowances could be released for said purpose.


Support to innovation
The extension of innovation support to industrial projects is welcome. However, it should not happen at the detriment of carbon leakage protection by reducing or limiting the amount of free allocation. Industry exposed to carbon leakage risk will struggle to invest or innovate without predictable efficient carbon leakage protection.
The revenues from auctioning should be reinvested for low carbon technology support, as foreseen in the ETS Directive, or energy efficiency, but more importantly they should be used by Member States to stimulate economic growth and relevant R&D investments. Innovation funding under EU ETS should be allocated to energy intensive sectors appointed in Annex I of the directive. The NER400 should be technology-neutral and refer instead to R&D and deployment of new technologies for those Annex I sectors.
In order to achieve a realistic policy and to allow for effective reduction of emissions, there is a need to identify the abatement possibilities in the industry (linked to technological, thermo-dynamic and physical/chemical limits that cannot be overcome due to feedstock, process emissions and lack of break-through technologies). Some sectors have already developed 2050 decarbonisation roadmaps, in which transformation technologies are mentioned. A dedicated fund taking into consideration these abatement possibilities will bring innovative technologies (e.g. industrial breakthrough technologies, including CCS and CCU for industry) forward and secure buy-in of industry sectors.


Industry needs an objective impact assessment for Phase IV ETS
In light of the better regulation policy of the new Commission, an objective impact assessment on the different European energy intensive industries is crucial, taking into account their ability to reduce emissions (low carbon roadmaps). Any flawed impact assessment could lead to wrong policy decisions for the energy intensive industries in Europe.

 

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1 See legal opinion on article 2.9 by Luther of April 2015

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14 Apr.2015

5th European Paper Recycling Awards call for candidates is open!

The European Recovered Paper Council (ERPC) launched a call for candidates for the 2015 European Paper Recycling Awards. The awards will identify projects, initiatives and campaigns that contribute to Europe’s sustainability through activities supporting paper recycling. Winners will be announced at the official awards ceremony taking place at the European Parliament on 14 October.

Now in their fifth edition, the awards are open to all entities based in Europe, including schools and universities, NGOs, national and regional authorities, companies and associations.

Read the press release here.

To apply, please visit the ERPC website at www.paperforrecycling.eu

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09 Mar.2015

Open letter to Jean-Claude Juncker on the withdrawal and renewed discussion of the circular economy package

CEPI together with other representatives from industry, NGOs, municipalities and public service providers addressed an open letter to Commission president Jean-Claude Juncker. In this letter, they underlined the importance of publishing a new Circular Economy proposal within a short timeframe. According to the co-signatories, this would enable our European economy to rebound through the creation of a circular economy.

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18 Feb.2015

RISI Announces New Event Partnership with CEPI

Cooperation between the groups will mean better programmes for both RISI's 2015 European Conference and CEPI’s European Paper Week.

Boston, 11 February (Press Release) – RISI, the leading information provider for the global forest products industry, today announced a new event partnership with the Confederation of European Paper Industries (CEPI). The agreement will enhance the programme for both RISI’s 2015 European Conference and CEPI’s European Paper Week. It also provides discounts for CEPI members to enable them to attend both events.

"RISI and CEPI share a long history of serving the needs of the European paper industry. This agreement will allow us to combine our resources and provide critical information to those operating in this market. Both events will present critical information to help our clients and constituents navigate these troubling economic times," said Iain Murray, Vice President of Conference Services at RISI.

As part of the new agreement, RISI economists will present at CEPI's European Paper Week and speak on market trends, challenges and opportunities in the European pulp and paper market. In turn, CEPI will provide commission updates and Marco Mensink, Director General of CEPI will present on “A Survival Guide to Europe.” This presentation will discuss the current issues in Europe affecting the European pulp and paper industry.

RISI's European conference will take place from March 9-11 in Amsterdam, Netherlands at the Hilton Amsterdam Hotel. The European Paper Week will take place 17-19 November 2015 in Brussels, Belgium. More details will be available at www.cepi.org/epw at a later stage.
 

About RISI (www.risi.com)
RISI is the leading information provider for the global forest products industry. The company works with clients in the pulp and paper, packaging, wood products, timber, biomass, tissue and nonwovens industries to help them make better decisions.

Headquartered in Boston, MA, RISI operates additional offices throughout North and South America, Europe and Asia.

About CEPI (www.cepi.org)
The Confederation of European Paper Industries (CEPI) is a Brussels-based non-profit organisation regrouping the European pulp and paper industry and championing industry’s achievements and the benefits of its products. Through its 18 member countries (17 European Union members plus Norway) CEPI represents some 515 pulp, paper and board producing companies across Europe, ranging from small and medium sized companies to multi-nationals, and 940 paper mills. Together they represent 23% of world production.

Website: http://www.cepi.org/ mail@cepi.org

 

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16 Jan.2015

Henri Vermeulen takes on ERPC chairmanship

The European Recovered Paper Council (ERPC) has announced the appointment of Henri Vermeulen as chairman, taking over from Beatrice Klose (Intergraf). Mr Vermeulen is Vice President Paper for Recycling of the Smurfit Kappa Group and represents CEPI in the EPRC. His ERPC chairmanship began on 1 January 2015 and he will remain in this position until the end of 2016.

The ERPC was set up as an industry self-initiative in November 2000 to monitor the progress towards meeting the paper recycling targets set out in the 2000 European Declaration on Paper Recycling. In 2011, the ERPC committed itself to meeting and maintaining both the voluntary recycling target of 70% in the EU-27 plus Switzerland and Norway by 2015 as well as qualitative targets in areas such as waste prevention, ecodesign, and research and development.

Read the full press release on the ERPC website at: http://www.paperforrecycling.eu/newsmanager/96/79/Henri-Vermeulen-takes-on-ERPC-chairmanship/

For more information, please contact the ERPC Secretariat, Ulrich Leberle, at +32 2 627 49 23, erpc@cepi.org.

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03 Nov.2014

European forest sector calls for continued efforts for a future Legally Binding Agreement on forests in Europe

The Secretary Generals of the key European forest and forest-based sector associations, namely CEPF, CEPI, AEBIOM, CEI-Bois, Copa-Cogeca, ELO, ENDE, Eustafor, FECOF, UEF and USSE have adressed a letter to the Ministers responsible for Forests and Forestry in Europe, on the occasion of the Forest Europe Expert Level Meeting on 6-7 November 2014 in Cuenca Spain. In this letter, they are calling for a continued and strenghtened effort for a future Legally Binding Agreement (LBA) on Forests in Europe.

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11 Sep.2014

Alliance of Energy Intensive Industries renews calls for ‘carbon leakage’ protection

The Alliance of Energy Intensive Industries (AEII) has published an open letter  to the heads of State and Governments of the EU Member States, the European Parliament, the Council of the European Union and the European Commission on carbon leakage. CEPI is part of this alliance.


The 2030 climate and energy framework must guarantee predictability for industry by setting the principles for measures against carbon and investment leakage now.


The undersigned manufacturing industries are the foundation of Europe’s economic fabric, drivers of jobs and growth in Europe. We represent over 30 000 companies in the EU with more than 4 million direct jobs, and around 30 million jobs in our manufacturing value chains.


The EU should focus on promoting recovery and growth of industrial production in Europe, in line with the objective to reinstate industry’s share of EU GDP to 20% by 20201. European industries need a stable and long term legislative framework that effectively combines EU climate ambition with EU industrial competiveness.


Current carbon leakage provisions under the EU Emissions Trading Directive, if not revised rapidly, will result in a huge shortage in free allowances and increasing direct and indirect costs (the pass-through of carbon costs into power prices) for even the most efficient installations in Europe. In the period from 2021 to 2030, when the provisions against carbon leakage and free allocation would be phased out, our industries are expected to face hundreds of billions of Euros in direct costs and costs passed through in electricity prices.2 The impact on energy intensive industries will simply be overwhelming.


Knowing that the Commission will be looking at “an improved system of free allocation of allowances with a better focus” for 2021-2030 is not enough. Industry needs a clear outline of policy measures to effectively prevent the risk of carbon and investment leakage.

The Commission’s legislative proposals currently only cover EU ETS structural reforms, which increase both carbon prices as well as the unilateral burden on EU industry, and expose EU jobs and growth to aggravated carbon leakage risk. Unfortunately, the Commission intends to publish proposals to prevent carbon leakage only at a later stage.


This is contrary to the guidance resulting from the March 2014 European Council, instructing the Commission “to rapidly develop measures to prevent potential carbon leakage in order to ensure the competitiveness of Europe's energy-intensive industries”, and this to provide by October 2014 “the necessary stability and predictability for its economic operators”.


The European Parliament stressed in February 2014 “that the 2030 climate and energy policy targets must be technically and economically feasible for EU industries and that best performers should have no direct or indirect additional costs resulting from climate policies; [that] the provisions for carbon leakage should provide 100% free allocation of technically achievable benchmarks, with no reduction factor for carbon leakage sectors.” 3
We therefore urge the European Council to give guidance at its summit on 23/24 October confirming that carbon leakage measures will be continued after 2020, as well as outlining the principles for the level of protection in order to safeguard predictability, investment certainty, jobs and growth in Europe:


Until a global agreement on climate change provides for a level playing field for energy intensive sectors at risk of carbon and investment leakage, best performers should not be penalised by direct or indirect additional costs resulting from the framework. This implies:


- Truly 100% free allocation based on technically and economically achievable benchmarks (including heat and fuel based benchmarks), reflecting recent production, and without a correction factor.
- Harmonized off-setting of all CO2 costs passed through into electricity prices in all Member States.


The Market Stability Reserve must only be considered in conjunction with the above measures, instead of through piecemeal approach.
The undersigned energy intensive industries are all at risk of carbon and investment leakage and therefore must be safeguarded through the above measures
.


These measures provide the essential signal towards industry for predictability and investment certainty, and secure an environmentally and economically sound EU ETS which does not distort the market. We strongly believe that these measures, together with strong innovation funds to support breakthrough innovation in industrial technologies and processes, will offer a win-win situation for the global climate and the European economy.4
 

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1 European Commission Communication "For a European Industrial Renaissance", COM(2014) 14/2
2 The Commission expects a price of €40/tCO2 in 2030, modelling presented by Point Carbon expects ca. €48/tCO2 (source: www.ceps.eu/taskforce/review-eu-ets-issues); Climate Economics Chair calculates a price of up €70/tCO2 in a high scenario in its report EU ETS reform in the Climate-Energy Package 2030: First lessons from the ZEPHYR model, Paris 2014.
3 European Parliament resolution of 4 February 2014 on the Action Plan for a competitive and sustainable steel industry in Europe (2013/2177(INI))
4 The agreement on the reform of the EU ETS between the Dutch government, industry and NGOs proves that a compromise and a balanced solution between the pillars of EU sustainable policy – growth, jobs, and environmental protection – is possible by applying an allocation more closely linked to economic reality e.g. a dynamic emissions trading system.

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09 Jul.2014

CEPI adopts Load Transport guidelines for pulp and paper products

CEPI has just launched a guideline document on general cargo securing instructions for pulp and paper products. The document was produced by CEPI with the input of the CEPI Transport Network and the support of MariTerm AB. CEPI expects the industry to adopt it as a best practice.

The guidelines will help everyone involved in the transport chain (planning, preparation, supervision or control) ensure safe transportation. Valid for transport on road, the guidelines primarily focus on accelerations and forces and cover a wide variety of product types (reels, sheeted paper, etc.). They were based on the European standard EN 12195-1:2010 (load restraining on road vehicles – Safety – Part 1: Calculation of securing forces).

The document is split in two parts, starting with the basic cargo securing principles, such as lashing, sliding and tipping. The second and largest part deals with instructions for pulp and paper products in particular, detailing arrangements necessary to prevent movements sideways and in forward and backward direction.

The European pulp and paper industry continuously promotes a cost-efficient, sustainable and safe transport of its products and raw materials. These guidelines are available to all pulp and paper companies and stakeholders. Versions in various EU languages will soon be available to ensure a wider distribution and a broad implementation by European companies and supply chain partners.

You can download the document here.
 

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18 Jun.2014 ,

WWF press release: International plantation summit looks at forestry for the future

Cape Town is playing host to an international forestry meeting, the New Generation Plantations (NGP) annual summit that will look at challenges facing the forestry industry today. The summit, that takes place at the Vineyard Hotel in Cape Town on 18 and 19 June, will look at two of the most important and challenging forestry frontiers today, namely social forestry and land-use.


Also participants from agriculture sectors, such as the sugar industry, will be attending the summit, as the NGP aims to broaden and share its experiences and learning with agricultural sectors in a resilient landscape approach. Set up by WWF in 2007, NGP brings together companies, government forest agencies and conservationists from around the world to explore, share and promote better ways of planning and managing plantations. NGP seeks to engage with stakeholders, learn from them and to share these lessons. It is underpinned by the philosophy that well-managed plantations in the right places can take pressure off natural forests and eco-systems and improve the welfare of local communities. Read more about NGP experiences and achievements here.


A world with seven billion people requires forestry and farming practices that produce more with less land and water, while empowering communities to achieve their aspirations. In many rural areas, forestry companies, with their access to resources, are best placed to act as agents for development, but struggle to integrate social policies into their business.


Luis Neves Silva, the NGP manager from WWF International, explains: "NGP is a space of trust, bridging different worlds. It creates a zone for open discussions and exchange where we can learn from each other by seeing what others are doing faced with similar issues, and to better understand the concerns of other stakeholders. Instead of coming with the answers, NGP helps to frame the right questions.”


Over the two-day meeting, over a hundred conferees from 20 nationalities will put their heads together to come up with ideas about how to enable skilled, motivated local people to run successful forestry businesses and manage productive plantations on their land to secure supply, reduce risks, and benefit communities and investors.


According to Morné du Plessis, Chief Executive of WWF South Africa, “Forestry and agriculture are important elements of productive landscapes, but we need to plan plantations as living landscapes that provide broad benefits to local and downstream communities. It is no longer good enough to see agricultural and forestry land simply as only providing food and timber. We need to recognise that these landscapes also generate water, absorb carbon and harbour critical biodiversity, and they may help to control pests and pollinate crops.”


A joint learning journey will continue in the field at the next NGP study tour in South Africa in November “The resilient landscape approach to freshwater ecosystem stewardship”


Editor’s Notes:
About New Generations Plantation
The NGP platform is a place for sharing knowledge about good plantation practices and learning from experience, through events such as study tours, workshops and conferences.
Over the coming decades, plantations are set to expand at a rapid rate to meet growing demand for paper, timber and energy. While plantations can be controversial, the NGP concept suggests that well-managed plantations in the right places can take pressure off natural forests, work in harmony with natural ecosystems, and improve the welfare of local communities. Find out more at www.newgenerationplantations.org


About WWF
WWF is one of the world's largest and most respected independent conservation organisations, with almost six million supporters and a global network active in over 100 countries. WWF's mission is to stop the degradation of the earth's natural environment and to build a future in which humans live in harmony with nature, by conserving the world's biological diversity, ensuring that the use of renewable natural resources is sustainable, and promoting the reduction of pollution and wasteful consumption.
Ultimately our aim is to inspire all South Africans to live in harmony with nature for the well-being of our country and its people.


See www.wwf.org.za for more information on the organisation’s activities in South Africa.
WWF stands for the World Wide Fund for Nature. The organization prefers to be referred to just by the acronym.
You can follow WWF on twitter http://twitter.com/WWFSouthAfrica

For more information, images and interviews:
Andrea Weiss
media@wwf.org.za
+27 (0)82 920 5933
 

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