With European manufacturing output down by up to 40% since 2018, and 200,000 industrial jobs lost last year, the European Confederation of the Paper Industry (Cepi) wants to put biomass, circularity and decarbonization financing back at the heart of the industrial debate.
The trade organization representing Europe's pulp and paper producers relies on a report commissioned from Deloitte. According to this analysis entitled Antwerp Declaration Monitoring Report the use of biomass and efficiency in the circularity of materials are structural advantages for European industry in the face of imported fossil products.
The report highlights the fact that the forestry and timber industry, which is already governed by national legislation, has to contend with over a hundred additional European regulations. In Cepi's view, this overlap is holding back biomass-related industrial development.
Moreover, paper collection and recycling remains fragmented across the member states. This heterogeneity complicates the optimization of secondary material flows, despite the fact that paper is one of the most recycled materials in Europe.
European manufacturers operate to some of the highest environmental and social standards. Cepi believes, however, that these standards are not sufficiently reflected in market demand. Imported fossil-based products benefit from lower costs, creating a distortion of competition.
The confederation supports the introduction of European preference to secure certain critical value chains.
The document also points to the complexity of public instruments for financing industrial decarbonization. According to the analysis, revenues from the European Emissions Trading Scheme (ETS) are not redistributed efficiently enough.
Cepi considers that the potential scale of the funds generated by member states could alter the sector's capacity to invest in order to achieve the 2030 climate objectives.
Cepi Managing Director Jori Ringman points out that the European pulp and paper industry has reduced its greenhouse gas emissions by over 50% compared to 2005.
"But in the current context characterized by high energy prices, weak demand, high costs and an ongoing trade war, we have no choice but to ask the EU heads of state meeting at Alden-Biesen to maintain the current volume of free allocated carbon allowances as well as the list of eligible pulp and paper installations for the period 2021-2025, and to suspend until 2030 any measures likely to increase the cost of carbon."
Cepi's position comes as the European Union's heads of state and government met on February 12 in Alden-Biesen, Belgium, to discuss ways of halting the decline in European competitiveness.
