Cepi stresses pulp and paper industry strength as EU circular bioeconomy value expected to hit US$7T

16 Apr 2024 --- Pulp and paper association Cepi is calling on the EU for greater recognition and investments in line with what it believes is its central role as a sector in the circular economy. Europe has “global champions” in the paper packaging industry and a positive trade balance in the global sector, according to Cepi’s director general, Jori Ringman.

A larger group of sectors called the circular bioeconomy represents a significant business opportunity — by some estimates, an expected global market growth of US$7.7 trillion by 2030. 

The pulp and paper industry is a sub-sector in that larger group, and when it comes to packaging, it represents the forefront of the circular bioeconomy, Ringman tells Packaging Insights.

“We have done that, not by relying on fossil materials imported from outside the EU, but with homegrown sustainable resources. Studies show that, along with other circular bioeconomy sectors, being ‘made in Europe’ has allowed us to be more resilient than sectors heavily relying on imports.”

“Made in Europe”
The Clean Transition Dialogue, announced by the president of the European Commission (EC), Ursula von der Leyen, and chaired by executive vice-president Maroš Šefčovič, aims to support the industry in building a business model fit for a decarbonized economy. 

Jori Ringman, director general at Cepi. The dialogues’ document published last week acknowledges the need to strengthen Europe as a business location and destination. 

The pulp and paper industry exemplifies how a strong EU industry can go “hand in hand” with a transition away from a linear, fossil-based economy, says Cepi. Its products are made from renewable materials, primarily sourced, manufactured and recycled in Europe, with European technology. 

For the sector, a green transition has always been a business opportunity, says the association.

The larger bio-based manufacturing ecosystem, in which pulp and paper is integrated, plays a key role in the EU’s strategic autonomy and resilience. According to Cepi, a “Made in Europe” circular bioeconomy holds the potential to substitute many commodities, materials and products for which Europe currently depends on global markets.

Supporting a sustainable transition 
More paper packaging is recycled each year in the EU than packaging from all other materials combined, says Ringman.

“Moreover, 75% of paper-based packaging is made from recycled materials. The remaining 25% are deforestation-free ‘virgin fibers’ largely sourced from European forests that have been constantly expanding for several centuries.”

“This is sustainability, or renewability. We allow resources to replenish naturally faster than we consume them. This also means that the business model for packaging itself is sustainable, in the sense that we could keep on doing that for a very long time, especially if we improve even further on recycling which we do in the groundbreaking 4evergreen project with the entire fiber-based packaging value chain,” he explains.

“We sometimes need to coat paper packaging to meet different barriers or functional requirements, for example, grease and moisture resistance for food packaging.”

Ringman explains that in this case, the paper industry always applies this combination in a way that does not hamper recycling. “In paper recycling mills, they will be used to produce new paper and board. Moreover, our biorefineries can produce those coating materials in a very sustainable way.” 

High industry investments Paper packaging is the most recycled packaging material in the EU annually, says Ringman.
A demand has emerged for more sustainable products in certain markets, most notably packaging, which Cepi met with its sustainable materials, says Ringman. 

“These are high growth and innovative markets, requiring large investments.”

“At the same time, the EU launched instruments to encourage investments to limit the use of fossil energy in manufacturing. The pulp and paper industry has played by the rules and, since 2005, the emissions of the sector have been reduced by 39%, decoupling production from energy use and related emissions,” he asserts. 

Ringman stresses that only a few other industry sectors — if any — can match this performance. 

“It is again the result of large investments in cleaner technologies and more energy-efficient operations. Similarly, billions of euros were invested over the past three decades in developing a world-class European recycling system for paper, which has benefited the packaging sector.”

Cepi now urges the EC to stay engaged through future dialogues on systemic issues to ensure that the EU’s green industrial transition does happen on time.

“To meet the ambitious European Green Deal 2050 objectives, manufacturing industries in Europe still need to increase their investments by a factor of seven. To do so, investors need a predictable regulatory environment for our materials, products and innovations,” says Ringman.

By Natalie Schwertheim