Bio-energy study on EU target on renewable energy

Brussels, Belgium, October 5, 2007

The Confederation of European Paper Industries commissioned on behalf of 20 companies and 12 of its national members a rigorous and thorough study of the impacts of the European Commission’s 20% renewable energy target by the consultants McKinsey & Co with the support of Pöyry Forest Industry Consulting. The study demonstrates that achieving the target of generating 20% of Europe’s energy from renewable sources by 2020 on the assumptions in the Commission’s Roadmap for Renewable Energy, would create a shortfall in the supply of wood from EU forests.

In fact, on those assumptions, demand for forest biomass for energy purposes would be additional to the current demand for industrial feedstock. After examining different scenario, with subsidies schemes and contribution from various technologies, the study concludes there would not be sufficient biomass available to meet the 2020 demand. Placing too much of the burden on forest biomass must be avoided. Although it could be seen as a quick-to-implement solution, it is not the most energy efficient and sustainable option in the long run and would lead to additional pressure on forests, high costs and decrease of the sector’s current global competitiveness.

The study identifies possible solutions in the form of coordinated actions to be taken by the EU Commission and Member States, and the industry itself, to avoid the critical shortage of forest biomass that derives from the Roadmap assumptions and which is needed both as raw material and for energy purposes.

The European Pulp and Paper Industry is part of the solutions for both mitigating climate change, and reaching a high level of renewable energy. The industry manages and, in some cases owns, huge quantities of wood biomass, which its companies use both as a principal feedstock and also as the source of around 50% of their own energy needs. Furthermore the paper industry has contributed substantial resources to creating a sustainable forest management system. It has a central position in the wood supply chain and the installed capacity for biomass-based energy generation.

The pulp and paper industry has real expertise to offer and is keen to cooperate with the EU and national governments to enable biomass resources to play their full part in achieving the 20% renewables objective, alongside other technologies. But the industry cannot do it alone. Other solutions are also needed. These include increasing wood mobilisation from our forests, bringing an additional 6 million hectares of land into production of energy crops, re-assessing the production of biomass for first generation biofuels, and more R&D support for the development of 2nd generation biofuels and other technologies.  It also means that the EU policy principle of giving priority to resource efficiency and added value is applied in the attribution of subsidies to renewable energy sources.  

The pulp and paper industry is an important and competitive sector of the European economy, generating net sales of some €75 billion, employing 268,000 people, and contributing with some 25 billion euro to EU GDP.

Key messages of the study

Contact: Marco Mensink, CEPI Energy & Environment Director, m.mensink@cepi.org