Sector analysis by the Confederation of European Paper Industries

1. Unfolding the future
In dialogue with the XXI century
Teresa Presas
DRUPA, 8 May 2012

2. Confederation of European Paper Industries
Represents:
 19 National Associations
 683 companies
 1,000 mills

3. European Pulp and Paper Industry
Paper production 89 mio tons
Pulp production 12 mio tons
Turn over € 80 bio
€18 billion added value to EU GDP
230 000 job
Employment multiplying effect: 8 times
60% in rural areas

4. CEPI Vision
 Roll out of Roadmap 2012
The European Pulp and Paper
Industry is a leading example
of how competitiveness and
sustainability can go hand in
hand

5. Competitiveness and sustainability
 69.6% of paper is recycled; wood is renewable
 53% of wood used by paper industry comes from certified
responsibly managed forests
 30% reduction of GHG since 1990
 54.5% of total on-site primary energy is renewable
 Produces 20% of biomass energy in Europe
 96% of electricity is produced through CHP
 83% of pulp & paper products produced in EMS certified mills
 Decoupled production and environmental impacts
 Is committed to reach zero accidents
 Innovative and technology driven

6. Climate Change 4th assessment report
 “a sustainable forest management strategy aimed
at maintaining or increasing forest carbon stocks,
while producing an annual sustained yield of
timber, fibre or energy from the forest, will
generate the largest sustained mitigation benefit”
International Panel on Climate Change

7. At a crossroads
 Financial turmoil in Europe
 Raw materials struggle
 Mainstream substitution technologies
 Power shift in the global economy
 Un-level playing field at global level

8. A connected world
• Population by 2050 – 9 billion
• GDP from US$35 to 72 trillion by 2030
• Cereal demand: + 67% by 2050
• Energy demand double by 2030
• GHG emissions decrease 50-80% by 2050
• Water demand to increase 30% by 2030
• Land deficit by 2050 – 200 million ha

9. Some key drivers ….
Climate change Land use/
Fiber Global recession
Resources availability
Renewable
Carbon trading/tax Demographics
Biochemicals
Recycling Water Google
Innovation
The global consumer Literacy
China
Biofuels Technology Food
Energy prices/ Biorefineries Supply/prices
security Transport
Globalization Financial system
Geopolitics Knowledge
Sustainability mobility
Sustainable Forest
Management Urbanization
New business models

10. ….shaping the future
 Low carbon economy – zero emissions
 Efficient use of resources – zero impact
 Sustainable material management – zero
waste
 Sustainable consumption – zero wastage
 Management of residues and waste – zero to
landfill

11. The CEPI 2050 Roadmap
Rediscovering the route to growth

12. It’s time to change
Henry Ford:
“If I had asked
people what they
wanted, they
would have said
a faster horse”.

13. The challenge
50% more value, 80% less fossil CO2,
40 years from now
in a mature European market, with a stagnating population,
within a broad sector scope
THE FOREST FIBRE SECTOR tor

14. Value
The core strategy of the
path to 2050 is to get the
highest possible value
from resources – wood,
virgin and recycled fibre,
wood fibres and non-
fibre raw material

15. Integration
With paper at its core, a system of integrated
recycled and integrated virgin mills, balanced by non
integrated mills, will produce a number of new
products and services, using the whole input raw
material .

16. At the core of the bioeconomy

17. Product innovation….

18. Product innovation

19. …..material innovation

21. An Industry in transformation
 Modern high-tech industry with traditional heritage
 Innovative industry fit for the new economy
Essential part of European society, in line with society’s
values
 Competitive industry, supporting the rural economy
 Driver of Europe’s sustainable green growth future
 Resource efficient with renewable materials and recyclable
products
Excelling in fiber knowledge
High ICT user

22. The Future
 Central part of the bio economy
 Modern high-tech industry with traditional heritage
 Growing in value, in line with the EU GDP
 Innovative industry fit for the new economy
 Creating new products and services
Essential part of European society, in line with
 Extending the base of current products
society values
 Able of decarbonizing
 Competitive industry, supporting the rural
 Driven by a technological push
economy
 Driver of Europe’s sustainable green growth future in:
Creating opportunities
• The materials and
 Resource efficient with renewablepackaging concept 2050
recyclable products • The information sector 2050
•
Excelling in fiber knowledge The health care sector 2050
• The resource management 2050
High ICT user

23. But only if….
 We get the raw material needed.
 We have access to finance / investment
 We find the breakthrough technologies
 We remain competitive compared to our global
competitors

24. CEPI Roadmap 2050
 Forecast of the • A vision
future? • A strategic industry
 An industry
commitment?
 An action plan?

25. The Value footprint of paper

26. Thank you!