Paper Week30 November 2005

Paper Recycling: Challenge and Opportunity

for the Paper Sector Paper Week-Open Seminar:

Wasted Opportunity?

November 30, Brussels

María Gafo Gómez-ZamalloaUnit Forest-based Industries

Paper Week30 November 2005

1. The main challenges for the EU Forest-Based IndustriesOutline

1. The main challenges for the EU Forest-Based Industries

2. How to overcome the challenges?

3. Ongoing and Future Additional Actions

1. The main challenges for the EU Forest-Based Industries

Paper Week30 November 2005

1. The main challenges for the EU Forest-Based Industries

Cost and availability of virgin and recovered raw materials: wood, chemicals, recovered paper…

Evolution of energy/transportation costs

Evolution of the environmental framework in the EU and globally

Structural adaptation to a changing demand

Permanent technological and innovative update

Paper Week30 November 2005

GmbH/S.A./Ltd./etc. (data from 3Q2004 for CEPI )

Source: Jaakko Pöyry Consulting

Fibres32%

Chemicals12%

Energy13%

Personnel13%

Other manufacturing costs

11%

Capital charges

19%

Average Weighted Cost Structure of Paper & Board

Paper Week30 November 2005

1. The main challenges for the EU Forest-Based IndustriesOutline

1. The main challenges for the EU Forest-Based Industries

2. How to overcome the challenges?

3. Ongoing and Future Additional Actions

2. How to overcome the challenges?

Paper Week30 November 2005

2. How to overcome the challenges?

Paper and Board Sector: Opportunity to be Competitive and Sustainable

Authorities and industry act together towards this goal

►A new and broader commitment by the paper industry, recycling sector and other related stakeholders is needed.

Paper Week30 November 2005

Advisory Committee on Community Policy regarding Forestry and Forest-based Industries: WG on Paper Recycling:

- Current developments in EU Waste Policy- European Declaration on Paper Recovery- Paper recycling: latest developments and remaining issues- Discussion about a future commitment on behalf of the industry

►Welcome and support the initiative from the Industry to put in place a new –broader- commitment

2. How to overcome the challenges?

Paper Week30 November 2005

Outline

1. The main challenges for the EU Forest-Based Industries

2. How to overcome the challenges?

3. Ongoing and Future Additional Actions 3. Ongoing and Future Actions

Paper Week30 November 2005

3. Ongoing and Future Actions

Improve the framework conditions for manufacturing industry and ensure the consistency of policy areas.

Deepening and supplementing the framework for industrial policy taking into account the characteristics of individual industry sectors (including the forest-based industry)

►High Level Group on Competitiveness, Energy and Environment

►New Communication on Forest-based Industries

New Communication on Industrial Policy:

Paper Week30 November 2005

Promote sustainability and competitiveness in manufacturing industry

Further a greater coherence in environment and energy policies

Partnership with all stakeholders, strengthening Better Regulation

Scope: complex interaction between competitiveness, energy and environment

HLG on Competitiveness, Energy and Environment

3. Ongoing and Future Actions

Paper Week30 November 2005

New Communication on Forest-based Industries in 2006

3. Ongoing and Future Actions

Cumulative incidence of measures, specially energy and environment

Challenges for the Forest-based Industries

Measures to improve the competitiveness of EU forest-based industries

Paper Week30 November 2005

3. Ongoing and Future Actions

R&D + Innovation

Forest-sector Technology Platform

www.forestplatform.org

Paper Week30 November 2005

Thank you for your attention!