1. CEI-Bois – European Confederation of Woodworking Industries The Forest-based sector – Sustainability for Competitiveness Presentation EFORWOOD CONFERENCE October 1, 2007 Mikael Eliasson/Chairman Cei-Bois

2. CEI-Bois – European Confederation of Woodworking Industries The European Forest-based Sector  Provides essential products and servises contributing to social weel-being and sustainable development  Is an important sector delivering 8 % of EU manufactoring added value  Comprises a renewable and continousily expanding forest resource, covering one third of Europe´s land area  Incorporate some 16 million forest owners and provide between 3 and 4 million jobs in industry, to an large extent in rural areas and in SMEs.  Comprises world-leading companies among forest-products producers, suppliers and consultancies.  Enjoys global technological leadership and occupies leading reserch position at international level.

3. CEI-Bois – European Confederation of Woodworking Industries Vision 2030 “The European forest-based sector plays a key role in a sustainable society. It compries a competetative, knowledgebased industry that fosters the extended use of renewable forest resources. It strives to ensure its societal contribution In the context of a bio-based, consumerdriven and globally competitive European economy “

4. CEI-Bois – European Confederation of Woodworking Industries Forest-based Sectors core value chains  Services and non-wood products from forests  The wood products chain (including furniture and recycling of wood)  The paper chain (including pulp making and paper recycling)  The bio-energy chain  The wood based chemical chain

5. CEI-Bois – European Confederation of Woodworking Industries Position

6. Key challenges facing todays Forest- based Sector  Helping society to mitigate climate change.  Securing the availability of renewable raw material, while supporting the varied uses of forests and safeguarding biodiversity, through SMF  Obtainingan economic and environmental balance in using forest biomass for products and energy, aswell as substantially improwing the industry´s energy efficiency  Providing products and services that responds to changes in social needs  Developing and designing products that can be recycled, reused and finally converted to bio-energy  Achievinga significant decrese in capital intensity and increased production flexibility through process innovations.  Meeting the growing impact of large retailers.  Responding to new competition from other regions.  Attracting young talent to the sector

7. CEI-Bois – European Confederation of Woodworking Industries Key oppurtonities for today´s Forest-based Sector  Balancing forests as a resource for renewable raw material with other important functions such as offering recreation and safeguarding biodiversity  Increasing the availability of renewable resources, e.g. through afforestation, and extending their use in new and existing applications thus securing forest-based materials as the material od choise.  Increasing the share of high value added products offered to consumers  Substituting non renewable material through innovative solutions from forest-based materials  Developing new industrial activities based on “green chemicals” from wood  Becoming a major produces of “green electricity”, biofuels and other bio-energy products  Taking advantage in provess and product developments of alliances with oyher sectors and of exploiting emerging technologies.

8. CEI-Bois – European Confederation of Woodworking Industries Strategic objectives  Meeting the multifuctional demands on forest resources and their sustainable managemant  Enhancing availability and the use of forest biomass for products and energy.  Development of intelligent and efficient manufacturing processes, including reduced energy consumption  Development of innovative products for changing markets and cutomer needs.  Establishing a more efficient innovation systems,including a better structured research community with higher efficiency  Deepening the sectors scientific basis, including taking advantage of emerging sciences  Establishing education and traning schemes that meet high requirements.  Improving communication with the public and policy makers.

9. CEI-Bois – European Confederation of Woodworking Industries Actions on global level The European FB sector cooperate on global level through ICFPA. Sustainability issues are in focus.

10. CEI-Bois – European Confederation of Woodworking Industries An unique position Our sector is positioned right in the “hot spot” of climate change, energy and raw material related issues, like few other industrial sectors. Our businesses represents a powerful tool in the work towards a true sustainable development.

11. CEI-Bois – European Confederation of Woodworking Industries A proactive sector  SMF areas steadily increases  The European industry is the real driver in sustainability issues globally  Target setting and follow up routines are in place at companies, subsectors and on sector level  A good social dialogue and competence development  R&D moves forward

12. CEI-Bois – European Confederation of Woodworking Industries Important link “Where we have a long term forest industry in place, we also find sustainable managed forests” We can find many regions where forest industry activities have gone on for more than 100 years and still using the same forest areas.

13. CEI-Bois – European Confederation of Woodworking Industries Changing attitudes Communication and actions for changing attitudes amongst consumers is vital for the future development. Their purchase and consuming behaviour is critical for reaching sustainability targets. We know that it is possible to do, experience from UK with the Wood For Good campaign is one good example. But it is important to base all communication on solid facts.

14. CEI-Bois – European Confederation of Woodworking Industries The challenge Industry Customer demands, competition Contribution to a sustainable development Energy, availability, price Raw material, availability, price

15. CEI-Bois – European Confederation of Woodworking Industries The challenge Industry Customer demands, competition Contribution to a sustainable development Energy, availability, price Raw material, availability, price Improvedefficiency Objectives and follow up

16. CEI-Bois – European Confederation of Woodworking Industries An integrated structure working well together The raw material is well used in the complex but well functioned “clusters” of different Forest-based industries. A market based allocation guaranties best possible value creation and optimal usages.  Free trade  Infrastructure  Clear policies

17. CEI-Bois – European Confederation of Woodworking Industries The political agenda effecting the Forest-based Sector  Tackle the climate change –  Sustainable development  Energy supply generally  To “balance” the energy supply situation  Trade policies

18. CEI-Bois – European Confederation of Woodworking Industries Conclusions  The forest sector is a vital part of a true sustainable development  The different value chains are in many cases integrated and eventual recycling adds interesting dimensions but brings complexity  It is important to have a holistic view on the sector when evaluate the “sustainability” performance Measurements, indicators and analysis must all reflect this

19. CEI-Bois – European Confederation of Woodworking Industries Final  We look forward to:  An interesting and inspiring conference  An intensive and fruitful “second half” of the project  I wish you all a successful finalisation of the project Thank you for your attention !