Enterprise Directorate- General Sustainable development and the EU Forest- based Industries Per-Ove Engelbrecht Head of Forest-based Industries Unit Enterprise Directorate-General European Commission
Mar 27, 2015
Enterprise Directorate-General
Sustainable development and the EU Forest-based Industries
Per-Ove Engelbrecht
Head of Forest-based Industries Unit
Enterprise Directorate-General
European Commission
Wood working32 billion €
value added
Paper converting
24
Printing44
Pulp & paper
23
FOREST-BASED INDUSTRIESFOREST-BASED INDUSTRIES
Woodworking
Paper converting
Printing
Pulp & paper
Wood furniture
Wood-based energy production
FOREST-BASED INDUSTRIESFOREST-BASED INDUSTRIES
Woodworking
Paper converting
Printing
Pulp & paper
Wood furniture
Wood-based energy production
MACHINERY INDUSTRY
FORESTRY
PULP AND PAPER PRODUCTION
PULP & PAPER VALUE CHAINPULP & PAPER VALUE CHAIN
FORESTRY
CONVERTING PACKAGING PRINTING
RECYCLING
WOODWORKING
PLYWOOD SAWMILLS PANELS
WOODWORKING VALUE CHAINWOODWORKING VALUE CHAIN
FORESTRY
BUILDING MATERIAL FURNITURE
HORIZONTAL EU POLICIESHORIZONTAL EU POLICIES
• ENVIRONMENT
• ENERGY
• RESEARCH AND DEVELOPMENT
• TRADE
• INTERNAL MARKET
• COMPETITION
FOREST-BASED INDUSTRIES COMMUNICATION
FOREST-BASED INDUSTRIES COMMUNICATION
• SIX PRIORITY AREAS:– GLOBALISATION – ENLARGEMENT– ENVIRONMENT AND ENERGY– INNOVATION AND TRAINING– REGULATORY FRAMEWORK– IMAGE TO SOCIETY
• ADOPTED BY THE COMMISSION 1999• ON-GOING EVALUATION
FORESTRYFORESTRY
COUNCIL RESOLUTION ON A FORESTRY STRATEGY FOR THE EUROPEAN UNION 1998
– FOREST POLICY A MEMBER STATE COMPETENCE
– CO-ORDINATION, COMMUNICATION AND CO-OPERATION WITHIN THE COMMISSION AND WITH AND AMONG MEMBER STATES
EU FORESTRY STRATEGYEU FORESTRY STRATEGY
• COMMUNITY POLICIES & PROGRAMMES
• RURAL DEVELOPMENT
• MONITORING
• BIODIVERSITY
• CLIMATE CHANGE
• RENEWABLE ENERGY SOURCES
KEY ISSUESKEY ISSUES
• SUSTAINABLE AND COMPETITIVE PRODUCTION
• LISBON STRATEGY
• FRAMEWORK CONDITIONS FOR INDUSTRY
FOREST-BASED INDUSTRIES’ STORYFOREST-BASED INDUSTRIES’ STORY
POSITIVE:– RENEWABLE AND RECYCLABLE RAW
MATERIAL– CLOSED CARBON CYCLE– CARBON BINDING PRODUCTS– RENEWABLE ENERGY– EFFICIENT PRODUCTION
FOREST-BASED INDUSTRIES’ STORYFOREST-BASED INDUSTRIES’ STORY
NEGATIVE:– THE “USE” OF THE FORESTS
FELLINGS
EFFECTS ON BIODIVERSITY
EFFECTS ON THE LANDSCAPE
– “SMOKESTACK” IMAGE
STRATEGIC ISSUE FOR THE FOREST-BASED INDUSTRIES
SUSTAINABLE FOREST MANAGEMENT
STRATEGIC ISSUE FOR THE FOREST-BASED INDUSTRIES
SUSTAINABLE FOREST MANAGEMENT
• NATIONAL FORESTRY AND RELATED LAWS
• CERTIFICATIONIN EU: 55 % COVERAGE OF TWO INCOMPATIBLE SYSTEMS
• IMAGE• DISINVESTMENTS IN FOREST LAND• MOVING FORWARD IN VALUE CHAIN
STRATEGIC ISSUERECYCLING OF PAPERSTRATEGIC ISSUE
RECYCLING OF PAPER
• INDUSTRY COMMITMENT : RECYCLING RATE OF 56% 2005
• HALF OF THE FIBER RAW MATERIAL IN PAPER PRODUCTION IS RECYCLED PAPER
• EXTENDED COMMITMENT ?
STRATEGIC ISSUEENERGY
STRATEGIC ISSUEENERGY
• ENERGY PRICE
• THE USE OF BIOMASS – IN PULP & PAPER PRODUCTION ~ 50 %
• RENEWABLE ENERGY SOURCES
• HIGH RAW MATERIAL EFFICIENCY IN PRODUCTION
STRATEGIC ISSUE RESEARCH AND DEVELOPMENT
STRATEGIC ISSUE RESEARCH AND DEVELOPMENT
• MORE EFFICIENT RAW MATERIAL AND ENERGY PROCESSES
• CLOSER CUSTOMER ORIENTATION MEANS INNOVATIVE SOLUTIONS
• MATERIAL COMPETITION
THE STRENGHTH OF THE EU PULP & PAPER INDUSTRIES
THE STRENGHTH OF THE EU PULP & PAPER INDUSTRIES
• EU PULP & PAPER INDUSTRY IS HIGHLY EFFICIENT
• LABOUR PRODUCTIVITY IS 20 % HIGHER THAN IN USA
• MORE MODERN MACHINERY• BETTER ADAPT TO ENVIRONMENTAL
DEMANDS• IN MANY WAYS AT THE TECHNOLOGICAL
EDGE• 2 OUT OF TOP 5 WORLD LEADING PAPER
PRODUCERS ARE EU-BASED
CHALLENGES FOR THE PULP & PAPER INDUSTRIES
CHALLENGES FOR THE PULP & PAPER INDUSTRIES
• COST OF WOOD SUPPLY• INCREASING WOOD SUPPLY RESTRICTIONS
COULD BE COST DRIVERS• COST OF EXTERNAL ENERGY SUPPLY• INCREASING IMPORTS OF PULP AND PAPER
PRODUCTS• STRUCTURAL CHANGES AND MEDIA
COMPETITION IN PRINTING• HIGHLY CYCLICAL
OPPORTUNITIES FOR THE PULP & PAPER INDUSTRIES
OPPORTUNITIES FOR THE PULP & PAPER INDUSTRIES
• RENEWABLE AND RECYCLABLE RAW MATERIAL
• CARBON EFFICIENCY
• RAW MATERIAL AND ENERGY EFFICIENCY
• HIGH PRODUCTIVITY
• INCREASING GLOBAL DEMAND
CHALLENGES FOR THE WOODWORKING INDUSTRIES
CHALLENGES FOR THE WOODWORKING INDUSTRIES
• COST OF WOOD RAW MATERIAL• RELATIVELY HIGHER LABOUR COSTS• FEW LARGE PLAYERS• FRAGMENTED EU MARKET DUE TO
CONSUMER PREFERENCES AND STANDARDS• GENERALLY LOW EU GROWTH WITH
STAGNATING AND AGEING POPULATION• MATERIAL COMPETITION: STEEL,
CONCRETE, PLASTIC
OPPORTUNITIES FOR THE WOODWORKING INDUSTRIES
OPPORTUNITIES FOR THE WOODWORKING INDUSTRIES
• RENEWABLE RAW MATERIAL• CARBON BINDING• RECYCLING FOR ENERGY• ENERGY EFFICIENT PRODUCTION• APPLICATION ADVANTAGES• ROOM FOR EXPANSION IN CERTAIN
PRODUCT MARKETS• SOME EXPORT POTENTIALS
SUMMARYSUMMARY
• AN OPPORTUNTY TO BE A SUSTAINABLE AND COMPETITIVE SECTOR (ECONOMIC, SOCIAL, ENVIRONMENTAL)
• STRATEGIC ISSUE 1: SUSTAINABLE FOREST
MANAGEMENT
• STRATEGIC ISSUE 2: RECYCLING OF PAPER
• STRATEGIC ISSUE 3: ENERGY
• STRATEGIC ISSUE 4: RESEARCH AND DEVELOPMENT
THANK YOU
FOR YOUR ATTENTION