Renewable Raw Materials Group,
Brussels, 02/04/2014
“Study on the wood raw material
supply and demand for the EU
wood-processing industries”
Jeremy Wall
European Commission, DG Enterprise and Industry
Unit-F3 «Raw Materials, Metals, Minerals and Forest-based Industries»
EU Forest-based Industries (F-BI) Strategy 2014-20
• F-BI scope wider: woodworking; furniture; pulp & paper; printing
• Forest-based Industries Advisory Committee ad-hoc Working Group
(European industry representatives + member-state observers +
experts): five meetings throughout 2012(NB wood study in parallel)
• Review of the challenges and actions in the 2008 EU Sectoral Strategy
and in-depth discussion of new challenges arising since and possible
areas for remedial actions
(NB total of 12 challenges)
• Basis for DG ENTR’s "Blueprint for the EU forest-based industries"
(SWD(2013)343) - input to Commission’s 2013 sectoral package, including
the Commission Communication on "a new EU Forest Strategy: for
forests and forest-based sector" (COM(2013)659) (See section 3.3.2)
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2013 EU Strategy: Challenges facing the F-BI:
1.
2&3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Stimulating growth
EU resource & energy efficiency objectives
Raw materials, their sources and their flows
Logistics (wood harvesting, infrastructures & transport)
Structural adaptation
Innovation & RTD
Education, training & skills, including shortages; ageing workforce
Coherence of EU legislation and costs arising
Implementation of EU climate policy, including beyond 2020
International competition, trade and co-operation
Information, communications and image
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2013 EU Strategy: selected activities
• Resource & energy efficiency:
• Promote cascading use of wood
• Follow-up of EU Waste Framework Directive review (targets)
• Catalogue and good practice guidance on resource- & energyefficient measures for wood-processing, esp. for SMEs
• Raw materials supply and logistics:
• Implementing the actions of the European Innovation Partnership
on Raw Materials
• Increased sustainable wood mobilisation, including facilitate
transport within and outside forests
• Vigilance on recovered paper and roundwood exports
• Coherence of EU legislation and costs arising
NB initiatives for CCA (cumulative cost assessment) cascade & mobilisation
under European Innovation Partnesrship for Raw Materials
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•
•
•
•
Main study objectives:
to evaluate the respective wood raw material (wood,
recovered wood, recovered paper) supply and demand
situations for the EU wood-processing industries
(woodworking; furniture; pulp & paper) and biomassbased bio-energy sector for the recent past (2001-2010),
present (2011) and future (2016)
to identify the inter-actions between these sectors in the
context of the prevailing EU and member-state policy and
legislative frameworks;
to analyse the present and future competitiveness
(quantitative;
qualitative)
of
EU
wood-processing
industries vis-à-vis competitors in five global regions;
to assess the scope to increase wood raw material supply
from domestic (EU) sources, international sources, as
well as to increase the efficiency of wood uses.
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Main conclusions - quantitative:
• the EU annual wood harvest should grow from 436 to 454 Mm³
by 2016, but further increase will be constrained by less than
75% of the forest area being legally available and owners’
limitations on the rest;
• by 2016 a 63 M m³ wood raw material supply shortfall will exist
for bio-energy. This equates to 16 % of the roundwood going to
wood-processing or 9.6 % of their total wood raw material
supplies. Without EU and MS remedial measures, imports of
wood, e.g. pellets from N. America, Russia et al. will increase
significantly;
• the EU “cascade factor” (multiplier of wood re-use) rose from
1.96 in 2000 to 2.07 in 2011 and 2.10 is projected in 2016.
However, the factor varies regionally and, if forest residues are
included, their increased use for bio-energy reduces the factor
to 1.88 in 2011 and 1.83 by 2016, against the trend needed to
meet biomass demand from the emerging bio-economy;
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Main conclusions - qualitative:
• widespread purpose-grown energy-wood plantations are
unlikely, given resistance from agriculture;
• whereas bio-energy can be produced from combusting any
species, shape, size or form of wood, the manufacture of woodbased products depends on specific varieties, qualities,
dimensions and quantities of wood. Thus, not all wood types are
mutually substitutable; sawmills for example can only use largedimensioned rondwood (sawlogs);
• EU sawmilling is a pump of the wood “cascade” on which other
processors and bio-energy depend for wood. EU sawmilling and
hence other wood processing are shrinking, given the world’s
highest wood, energy and labour costs, exacerbated by sawlog
exports. However, EU wood-processing can remain globally
competitive by retaining leadership in labour productivity;
• a decline in the quality of EU recovered paper is likely, due to
decreased EU high-grade pulp manufacture, following less use of
graphic papers, and non-standardised recovery and sorting.
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Main recommendations
• Supply side: domestic EU wood supply can be addressed
through: better motivation and organisation of the owners of
small private forests; a wider use of forest residues and wood
from outside the forest; more recovery and use of used wood,
using standards and legislation;
• better forest and public infrastructures are needed to bring
more wood to market more efficiently and cheaply; market
transparency should be increased through better information;
• improve recovered paper quality, using separate collection
streams and international standards. Consider waste legislation
and/or trade measures to control its export and also of sawlogs;
• demand side: encouraging sustainable building at EU and MS
levels could improve markets for wooden building products, e.g.
sawnwood, which comply with the Construction Products
Regulation and are price-competitive. Public housing
procurement could also offer scope;
• Bio-energy generation from (woody) biomass and its use must
be efficient, to reduce pressure on wood supplies and prices.
Combined heat and power (CHP)
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G3 should be prioritised.
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DG ENTR study (Indufor Oy.)
Forest-based sector: region types
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EU-wood-processing and
sector & bio-energy sectors
Pape
Paper &
paperboard
Wood pulp &
recovered paper
Drivers
Drivers
Consumption
Consumption
Production
Production
Net trade
Net trade
Sawnwood and
Roundwood & other
wood-based panels
wood biomass
Drivers
Drivers
Drivers
Consumption
Consumption
Consumption
Production
Production
Production
Net trade
Furnitur
e
Net trade
Net trade
Furniture
Printing
Recovered
paper
collection
Bioenergy
Recovered
paper
utilisation
Net trade
Forest
residues
Other uses
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Disposal
Industrial residues/
by- products
Recovered
wood
Raw material
types
Sawnwood
Plywood
Pulp,
Paper &
Board
Oriented
Strand
Board
(OSB)
Particle
Board
Medium
Density
Fibreboard
(MDF)
Pellets
CHP
Combined
Heat and
Power
Pulpwood
wood
Sawlogs
Forest
residues
Bark
industrial
Residues
Chips
Sawdust
recycled
Material
Recovered
paper
Recovered
wood
Strong usage
RAW MATERIAL SOURCES FOR VARIOUS END USES
Medium usage
Low usage NB: WOOD PRODUCTS’ RAW MATERIALS ARE FURTHER LIMITED BY SPECIES, QUALITY
11
No usage
AND DIMENSIONS BUT BIO-ENERGY CAN USE ALL WOOD SOURCES
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Inter-relationships: solid wood products
Roundwood dominates throughout the EU region. Use of industrial
residues between 20-25% in countries with significant
reconstituted panel industries.
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Inter-relations – Pulp and Paper
Recovered paper to increase its dominant share in raw
material use over roundwood. Industrial residues have a
role in countries with significant sawmill industry.
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Inter-relations – Bioenergy
Roundwood to retain its importance and forest residues to
increase strongly. However, significant differences among
Member States.
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Inter-relations – Raw Material by Type
Roundwood clearly the most used material type, followed by
recovered paper and industrial residues. Use of roundwood and
forest residues to increase the most.
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Changes to 2016: Pulp and Paper and wood products to remain
relatively unchanged whereas bioenergy to increase significantly. In
addition, energy related raw material gap expected in 2016.
Total Raw Material
Use in EU-27
Change in Raw
Material Use in EU-27
Mm3 (RWE)
Mm3 (RWE)
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Competitiveness – Cost Structure
In the wood-working industry, as well as in bioenergy,
Examples of cost structures in different wood-processing
sectors: wood price is a key issue, especially for sawmilling
Note: Cost structure of the average European producer
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Competitiveness – Raw Material
Sawmilling is a driving
force for harvesting EU
wood and thus wood
supply to other EU woodprocessing industries and
the bio-energy sector.
However, its highest price
is in the EU.
But EU sawlogs are also
exported to low-cost
competitors – including
potential residues.
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DG ENTR study (Indufor Oy.)
Forest-based sector: region types
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Cascade factors for EU wood use (2000-2016):
2000
2005
2010
2016
Simple cascade
1.96
factor
(roundwood only)
1.99
2.07
2.10
Total cascade
(roundwood +
forest residues)
1.86
1.88
1.83
Regions
Simple
Total
1.85
A
1.73
1.58
B
2.29
2.06
C
3.08
2.81
NB cascade factor is the ratio of total new wood material (e.g. roundwood)
input to (wood products + pulp & paper+ bio-energy) to their total wood
raw material inputs (roundwood equivalents). This cascade factor is thus a
multiple of the extent to which residues from sawmilling (1st process) et al.
are re-used as inputs in other processes
along the value chain as a whole.
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New EU Forest Strategy (September 2013)
Section 3.1 of the new EU Forest Strategy,footnote 9:
"Under the cascade principle, wood is used in the
following order of priorities: wood-based products,
extending their service life, re-use, recycling, bioenergy and disposal."
Section 3.3.2 (text box):
"……develop good-practice guidance for…..the cascade
principle…"
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Cascade: some issues to consider:
1. Definition of cascade (inputs only? Outputs? What
to optimise? (Raw-material efficiency? Energy
efficiency? Added value? Jobs? Carbon?)
2. general principle or mandatory instrument?
3. what about free-market principle?
4. regulated wood biomass markets?
5. compensation for sub-optimal financial options?
6. regional variations
7. who will decide? EU? MS? Regions? Localities?
8. logistics?
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Thank you!
Merci!
Danke!
http://ec.europa.eu/enterprise/forest_based/index_en.html
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Context
More information:
Forest-based Industries::
New functional mail-box: entr-f-i@ec.europa.eu
F-BI web-site:
http://ec.europa.eu/enterprise/sectors/wood-paperprinting/index_en.htm
(NB Indufor study)
EU “Raw Materials Initiative” web-page:
http://ec.europa.eu/enterprise/non_energy_extractive
_industries/raw_materials.htm
European Innovation Partnership Raw Materials:
http://ec.europa.eu/enterprise/policies/rawmaterials/innovation-partnership/index_en.htm
Horizon 2020:
http://ec.europa.eu/research/horizon2020
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