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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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07 Jul.2017 ,

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

Today the EU 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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30 Jun.2017

Key Statistics 2016

This booklet contains statistics that give a clear picture of the European pulp and paper industry’s performance in 2016.

The statistics are a compilation of data received from the National Associations which are CEPI 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.

Please contact CEPI Statistics Officer Ariane Crèvecoeur if you have any questions or require more information. 

All our statistics are third-party independently verified. You can view here the Deloitte quality assurance statement.

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21 Jun.2017 ,

Unlock demand side flexibility for European consumers, innovation and the climate

Signatories of this letter welcome the Clean Energy Package as the means to set in place new rules for a consumer-centred European energy system, by implementing the three stated EU objectives: putting energy efficiency first, achieving global leadership in renewable energies and providing a fair deal for consumers.

Demand side flexibility is a resource that not only benefits and empowers individual consumers, both private and professional, but also reduces total system costs, facilitates renewables integration and contributes to building Europe’s smart energy leadership.
This remarkable resource however suffers from important market failures that the ‘Clean energy for all Europeans’ package attempts to address. Signatories of this letter, all strong advocates for demand side flexibility, urge you to include the necessary proposals to develop demand side flexibility in the final legislation, and ensure consistent enforcement through thorough planning and reporting obligations in the Governance regulation report.

The stakes are high. Not delivering Europe’s demand side flexibility potential risks affecting Europe’s competitiveness, undermining its decarbonisation efforts, undermining its benefits for consumers and jobs and growth opportunities for Europe as a whole.
The following points highlight key steps necessary to develop demand side flexibility by creating functioning wholesale energy markets; opening markets to consumers and third parties; and remunerating demand side flexibility fairly.

1. Creating functioning wholesale energy markets
The electricity directive and regulation can significantly contribute to establishing well-functioning energy markets that reflect the availability or scarcity of supply and the adequacy of the network. In particular,
• Reform short-term markets functioning to help increase the overall flexibility of the power system (Electricity Regulation Chapter 2).

• Harmonise features of intraday and balancing markets to encourage trading of energy across borders, and as close as possible to the time of delivery (Electricity Regulation, Articles 5 and 7).

• Tackle overcapacity of generation to re-establish long term price signals for investors and minimise the risks that capacity mechanisms create for the development of efficient wholesale markets, as well as consumer empowerment, demand response and the deployment of innovative low carbon and energy efficiency technologies. The best way to minimise such risks is to:

o Only implement capacity mechanisms as a last resort, when proven strictly necessary by a European adequacy assessment which factors in the contribution of renewables, self-consumption and on-site generation (including cogeneration) and assesses flexibility needs (Electricity Regulation, Article 18).
o Ensure capacity mechanisms are open to all resources such as energy efficiency, demand response, storage, all generation technologies, and cross border capacity (to add to Electricity Regulation, Article 23).
o Review the need for capacity mechanisms regularly:
- So as to ensure consistency between procurement of capacity and the size of the adequacy concerns (to add to Electricity Regulation, Article 23) on the basis of the latest European resource adequacy assessment
- So as to ensure consistency with the overall competitiveness and decarbonisation objectives
o Ensure that the duration of the capacity contract is short enough to correspond to the regular reviews.
o Require Transmission System Operators (TSOs) to report on redispatch and countertrading measures they undertake, including underlying costs, and the level of effectiveness and openness of market-based curtailment or re-dispatching mechanisms to all energy resources. In turn, the creation of liquid and efficient markets and the deployment of demand side flexibility resources will reduce the need for additional measures to guarantee system adequacy.

2. Ensuring market access for consumers and third parties

Rules must be established and enforced so that demand-side resources have unhindered access to all energy markets (wholesale, balancing, ancillary services) in all timeframes, including through product requirements fit for supply and demand-side resources alike. This also means direct market access for consumers and new market entrants, including third party aggregators and ESCOs.
In particular:

• Give consumers the right to participate in energy markets with dynamic price contracts. This includes providing customers information on actual time of use at near real time and the right to respond to price signals, as well giving consumers the right to sell flexibility independently of any contractual arrangements to procure energy, directly or through an (independent) aggregator. Smart metering is a pre-requisite as the certified basis for billing consumer using multiple tariffs for market-based pricing. It also forms the foundation for the development of additional consumer services (Electricity Directive, Articles 11, 17, 20, 21).

• Enable fair market access for Demand Response and service providers. Deployment of demand side flexibility has so far been impeded by outdated market rules, insufficient market access for service providers and ineffective price signals. Demand response should have non-discriminatory access to all markets (Electricity Regulation, Articles 1, 3, 4, 5, 6, 7, 11, 12, Electricity Directive, Articles: 3, 15, 16, 17) and Demand Response Aggregators should be enabled to access the market without prior agreement of other market parties who are often competitors (Electricity Directive Article 17).

• Network tariffs should be fully transparent and allow the development of self-consumption and self-generation. They should be based on the marginal costs of the use of the system and take into account the avoided capital (e.g. grid investments) and operational expenditures due to flexible generation and flexible load embedded at the local level, as well as avoided CO2 emissions. (Electricity Regulation Article 16; Electricity Directive Article 15).

• Accelerate the cost-efficient decarbonisation of the existing building stock, notably through reaping the flexibility benefits of technical building systems and other appliances to support consumer empowerment: set in place a proper framework for the deployment of infrastructures (i.e. on-site renewable electricity generation, high efficiency cogeneration, smart metering or electro-mobility) and of demand-responsive devices that will facilitate the buildings’ integration into a wider energy ‘eco-system’ where active prosumers self-generate, self-consume, aggregate, trade and sell surplus electricity to the grid. In this new setting, buildings will no longer be a load but a micro-energy hub contributing to consumer empowerment and cost-efficiency of the energy system. The smartness indicator of buildings should support consumer empowerment and the development of buildings as part of the energy system.

• Create a comprehensive framework for grid monitoring, so as to increase the visibility of flexibility, including demand-side flexibility. It should be based on information that TSOs and DSOs would publish regularly as regards to the performance of their networks , in particular the volumes and sources of curtailed energy (Electricity Directive, Article 59). Comprehensive reporting on grid evolution, together with appropriate tariff structure, will be an essential basis for cost-effective network management and enable the targeted acquisition of flexibility services from the market by system operators instead of CAPEX only investments (Electricity Directive, Article 32).

• Ensure enforceability of the right for citizens and businesses to self-generate, self-consume, and valorise their flexibility; (Electricity regulation Article 16; Electricity directive Article 15).

• Establish a constructive framework for energy storage which takes into account the specificity of the energy storage technologies, and recognizes that TSOs and DSOs should not own, develop, manage or operate storage assets, unless a market based procurement based on an open and transparent tendering procedure is proven of not being possible and is regularly reviewed. (Electricity Directive, Articles 36 and 54)

Signatories of this letter are convinced that such a way forward will provide consumers with the satisfaction of managing their own energy consumption while optimising their overall carbon and environmental performance.
 

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