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29 Apr.2015

European paper industry welcomes Valmet as a new partner

The Confederation of European Paper Industries (CEPI) is happy to announce a new partnership with Valmet. CEPI and Valmet have already collaborated in the past, notably on the European Paper Week. The new status will deepen an established good relationship, to include areas of common interest.

More specifically, Valmet will gain a clear and in-depth insight of the issues the pulp and paper industry is facing, with the opportunity to be part of CEPI’s activities with its stakeholders. CEPI will gain knowledge and expertise, building on its ever-strong eco-system around industry suppliers with the ultimate goal of strenghtening its innovation agenda. “Valmet and CEPI have a lot to gain from this partnership. It is a priviledge to collaborate with such a highly-valued industry supplier and we are very excited to see where this partnership will lead us”, says Marco Mensink, CEPI’s Director General.

Valmet Corporation is the leading global developer and supplier of technologies, automation and services for the pulp, paper and energy industries. Valmet’s services cover everything from maintenance outsourcing to mill and plant improvements and spare parts. Their strong technology offering includes pulp mills, tissue, board and paper production lines, as well as power plants for bio-energy production.

This is the second new partnership for CEPI in 2015, with Pöyry having joined the programme in March. The partnership programme, launched in 2011, currently includes Buckman, Pöyry, Omya, Valmet and Voith. It is open to machine and chemical suppliers active in the pulp, paper or board industry with a direct link to paper manufacturing.

For more information, please contact Annie Xystouris at a.xystouris@cepi.org mobile phone: +32(0)486243642.
 

 

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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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15 Apr.2015

CEPI announces new event partnership with PRIMA

Today the Confederation of European Paper Industries (CEPI) announced a new event partnership with PRIMA, the Paper & Related Industries Marketing Association. The partnership will translate into a mutual promotion of both the European Paper Week as well as the Annual PRIMA conference. In addition, CEPI members will benefit from a members participation fee to the PRIMA annual conference.

The two annual events not only take place within six months of each other, they also complement each other in terms of content. PRIMA conferences offer a professional forum to update existing knowledge and to broaden one’s horizon regarding the various sectors of the forest products network as well as an excellent networking opportunity. The European Paper Week primarily focuses on the hottest issues affecting the European pulp and paper industry on a European level. “This partnership will offer our members the possibility to view a complete spectrum of our industry’s current state, on all levels. This can only be beneficial for all”, says CEPI Director General Marco Mensink.

PRIMA's Annual Conference will take place in Graz, Austria on 18-19 May 2015 and the European Paper Week in Brussels on 17-19 November 2015. To find out more about both events, go to http://www.prima-beyond-information.org/ and http://www.cepi.org/epw respectively.

For more information, please contact Annie Xystouris at a.xystouris@cepi.org, or +32 4 862 43 642.

Note to the Editor

CEPI aisbl - The Confederation of European Paper Industries
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.

PRIMA
PRIMA (Paper and Related Industries Marketing Association) is an independent non-profit organisation that has been promoting mutual understanding throughout the entire forest products value chain – from forestry, minerals and chemicals companies through pulp and paper makers to merchants, publishers, printers, packaging producers and consumers of paper and board products – for more than four decades. PRIMA provides the platform for spreading business understanding and competence and enabling first-rate networking by bringing together members of the value chain in a transparent, legal and honest way at industry and customer conferences with high repeat-attendance figures.
 

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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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31 Mar.2015

European paper industry partners with Pöyry

The Confederation of European Paper Industries (CEPI) is pleased to announce a new partnership with Pöyry. The partnership will allow CEPI and Pöyry to work more closely together, particularly in the areas of innovation and bioeconomy. In addition, it will reinforce Pöyry’s presence both at the European Paper Week as well as other events organised by CEPI.

Pöyry is an international consulting and engineering company providing services across the full project lifecycle and helping to solve the challenges faced by the world’s toughest industries. By becoming a CEPI Partner, Pöyry joins Buckman, Omya and Voith. “We are very excited to have Pöyry on board and we very much look forward to a fruitful collaboration”, says CEPI Director General Marco Mensink.

CEPI’s partnership programme is currently open to machine and chemical suppliers active in the pulp, paper or board industry with a direct link to paper manufacturing. It was first launched in 2011 and aims at exchanging technical information and expertise as well as promoting common interests.

For more information, please contact Annie Xystouris at a.xystouris@cepi.org mobile: +32(0)486 243 642.

Note to the Editor

CEPI aisbl - The Confederation of European Paper Industries
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.

About Pöyry
Pöyry is an international consulting and engineering company. We serve clients globally across the energy and industrial sectors and provide local services in our core markets. We deliver management consulting and engineering services, underpinned by strong project implementation capability and expertise. Our focus sectors are power generation, transmission & distribution, forest industry, chemicals & biorefining, mining & metals, transportation and water. Pöyry has an extensive local office network employing about 6,000 experts. Pöyry's net sales in 2014 were EUR 571 million and the company's shares are quoted on NASDAQ OMX Helsinki (Pöyry PLC: POY1V).

Website: http://www.poyry.com/

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20 Mar.2015

Global Forest and Paper Industry Celebrates International Day of Forests (21 March)

WASHINGTON – The theme of the 2015 United Nations International Day of Forests is “Forests and Climate Change.” The International Council of Forest and Paper Associations (ICFPA) is proud to represent the global forest products industry and its commitment to climate change mitigation all along the value chain.

The ICFPA’s Statement on Climate Change is available at: http://www.icfpa.org/uploads/Modules/Publications/icfpa-statement-on-climate-change.pdf

“Trees, especially those in well-managed forests, absorb carbon dioxide,” said ICFPA President Donna Harman. “Carbon dioxide remains stored when trees are used to make forest products, and that storage can be prolonged through recycling.”

In addition, the forest products industry plays an important role in contributing to the production of renewable energy and reducing dependence on fossil fuels by using residuals and byproducts to produce much of the energy required for its operations. These residuals and byproducts, known as biomass, are carbon neutral when combusted for energy, according to the international carbon accounting principle.

Through process and product innovation, the forest products industry is providing a wide range of new sustainable bio-based products that benefit society.
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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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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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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25 Feb.2015

CEPI applauds European Commission’s Energy Union Package

Last chance for energy markets - Member states’ support key to its success

The Confederation of European Paper Industries (CEPI) strongly welcomes the Energy Union Package published today by the European Commission. CEPI especially welcomes the emphasis put on delivering competitive energy prices, investing in the bioeconomy and establishing synergies between the energy efficiency, resource efficiency and circular economy policies.

“This package is the last chance to make energy markets in Europe work”, says Marco Mensink, CEPI Director General. The success of the Energy Union no longer depends on the Commission, but on member states’ willingness to “walk the talk”. CEPI expects national governments to urgently give their support to make the package a reality. A strong EU energy regulator is part of the solution. “In this case, ‘more Europe’ is the answer to the industry and consumers’ need for affordable and competitive energy,” he added.

The package not only recognises that energy costs for industry in Europe are uncompetitive, it also acknowledges that the root of the problem lies in the levies, taxes and additional costs energy consumers are charged for by the member states. If no measures are taken, the need for capacity payments will add yet another layer of costs, affecting all European energy consumers.

CEPI has great expectations for a number of key elements to be later defined in the package proposal. The Commission indicates renewable support schemes would need to be rationalised. The system of subsidies for burning wood for energy can no longer be sustained. Furthermore, establishing an EU biomass supply policy is urgently needed. In addition, energy recovery from waste should be limited to non-recyclable fractions, in line with the waste hierarchy and the requirements for separate collection.

Among the first proposed actions, the Emission Trading System reform offers the possibility to turn the ETS into a tool that rewards investments in low-carbon technologies, while ensuring industrial competitiveness. Engaging industry in this process is crucial. Moreover, the Energy Union should support industrial co-generation, recognising its role in delivering demand side flexibility. This should be part of the combined initiative on the internal energy market, together with the review of the Energy Efficiency Directive and the Guidelines on State Aid for Environmental Protection and Energy.

For more information, please contact Annie Xystouris at a.xystouris@cepi.org, mobile: +32(0)486 243 642.

Note to the author:

European Commission: Energy Union: http://ec.europa.eu/priorities/energy-union/index_en.htm

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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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