2. Enterprise Directorate-General Sustainable development and the EU Forest-based Industries Per-Ove Engelbrecht Head of Forest-based Industries Unit Enterprise Directorate-General European Commission

3. Wood working 32 billion value added Paper converting 24 Printing 44 Pulp & paper 23 FOREST-BASED INDUSTRIES

4. Woodworking Paper converting Printing Pulp & paper Wood furniture Wood-based energy production FOREST-BASED INDUSTRIES

5. Woodworking Paper converting Printing Pulp & paper Wood furniture Wood-based energy production MACHINERY INDUSTRYMACHINERY INDUSTRY FORESTRY

6. PULP AND PAPER PRODUCTION PULP & PAPER VALUE CHAIN FORESTRY CONVERTING PACKAGING PRINTING RECYCLING

7. WOODWORKING PLYWOOD SAWMILLS PANELS WOODWORKING VALUE CHAIN FORESTRY BUILDING MATERIAL FURNITURE

8. HORIZONTAL EU POLICIES ENVIRONMENT ENERGY RESEARCH AND DEVELOPMENT TRADE INTERNAL MARKET COMPETITION

9. FOREST-BASED INDUSTRIES COMMUNICATION SIX PRIORITY AREAS: –GLOBALISATION –ENLARGEMENT –ENVIRONMENT AND ENERGY –INNOVATION AND TRAINING –REGULATORY FRAMEWORK –IMAGE TO SOCIETY ADOPTED BY THE COMMISSION 1999 ON-GOING EVALUATION

10. FORESTRY COUNCIL RESOLUTION ON A FORESTRY STRATEGY FOR THE EUROPEAN UNION 1998 –FOREST POLICY A MEMBER STATE COMPETENCE –CO-ORDINATION, COMMUNICATION AND CO-OPERATION WITHIN THE COMMISSION AND WITH AND AMONG MEMBER STATES

11. EU FORESTRY STRATEGY COMMUNITY POLICIES & PROGRAMMES RURAL DEVELOPMENT MONITORING BIODIVERSITY CLIMATE CHANGE RENEWABLE ENERGY SOURCES

12. KEY ISSUES SUSTAINABLE AND COMPETITIVE PRODUCTION LISBON STRATEGY FRAMEWORK CONDITIONS FOR INDUSTRY

13. FOREST-BASED INDUSTRIES STORY POSITIVE: –RENEWABLE AND RECYCLABLE RAW MATERIAL –CLOSED CARBON CYCLE –CARBON BINDING PRODUCTS –RENEWABLE ENERGY –EFFICIENT PRODUCTION

14. FOREST-BASED INDUSTRIES STORY NEGATIVE: –THE USE OF THE FORESTS FELLINGS EFFECTS ON BIODIVERSITY EFFECTS ON THE LANDSCAPE –SMOKESTACK IMAGE

15. STRATEGIC ISSUE FOR THE FOREST- BASED INDUSTRIES SUSTAINABLE FOREST MANAGEMENT NATIONAL FORESTRY AND RELATED LAWS CERTIFICATION IN EU: 55 % COVERAGE OF TWO INCOMPATIBLE SYSTEMS IMAGE DISINVESTMENTS IN FOREST LAND MOVING FORWARD IN VALUE CHAIN

16. STRATEGIC ISSUE RECYCLING OF PAPER INDUSTRY COMMITMENT : RECYCLING RATE OF 56% 2005 HALF OF THE FIBER RAW MATERIAL IN PAPER PRODUCTION IS RECYCLED PAPER EXTENDED COMMITMENT ?

17. STRATEGIC ISSUE ENERGY ENERGY PRICE THE USE OF BIOMASS –IN PULP & PAPER PRODUCTION ~ 50 % RENEWABLE ENERGY SOURCES HIGH RAW MATERIAL EFFICIENCY IN PRODUCTION

18. STRATEGIC ISSUE RESEARCH AND DEVELOPMENT MORE EFFICIENT RAW MATERIAL AND ENERGY PROCESSES CLOSER CUSTOMER ORIENTATION MEANS INNOVATIVE SOLUTIONS MATERIAL COMPETITION

19. THE STRENGHTH OF THE EU PULP & PAPER INDUSTRIES EU PULP & PAPER INDUSTRY IS HIGHLY EFFICIENT LABOUR PRODUCTIVITY IS 20 % HIGHER THAN IN USA MORE MODERN MACHINERY BETTER ADAPT TO ENVIRONMENTAL DEMANDS IN MANY WAYS AT THE TECHNOLOGICAL EDGE 2 OUT OF TOP 5 WORLD LEADING PAPER PRODUCERS ARE EU-BASED

20. CHALLENGES FOR THE PULP & PAPER INDUSTRIES COST OF WOOD SUPPLY INCREASING WOOD SUPPLY RESTRICTIONS COULD BE COST DRIVERS COST OF EXTERNAL ENERGY SUPPLY INCREASING IMPORTS OF PULP AND PAPER PRODUCTS STRUCTURAL CHANGES AND MEDIA COMPETITION IN PRINTING HIGHLY CYCLICAL

21. OPPORTUNITIES FOR THE PULP & PAPER INDUSTRIES RENEWABLE AND RECYCLABLE RAW MATERIAL CARBON EFFICIENCY RAW MATERIAL AND ENERGY EFFICIENCY HIGH PRODUCTIVITY INCREASING GLOBAL DEMAND

22. CHALLENGES FOR THE WOODWORKING INDUSTRIES COST OF WOOD RAW MATERIAL RELATIVELY HIGHER LABOUR COSTS FEW LARGE PLAYERS FRAGMENTED EU MARKET DUE TO CONSUMER PREFERENCES AND STANDARDS GENERALLY LOW EU GROWTH WITH STAGNATING AND AGEING POPULATION MATERIAL COMPETITION: STEEL, CONCRETE, PLASTIC

23. OPPORTUNITIES FOR THE WOODWORKING INDUSTRIES RENEWABLE RAW MATERIAL CARBON BINDING RECYCLING FOR ENERGY ENERGY EFFICIENT PRODUCTION APPLICATION ADVANTAGES ROOM FOR EXPANSION IN CERTAIN PRODUCT MARKETS SOME EXPORT POTENTIALS

24. SUMMARY AN OPPORTUNTY TO BE A SUSTAINABLE AND COMPETITIVE SECTOR (ECONOMIC, SOCIAL, ENVIRONMENTAL) STRATEGIC ISSUE 1: SUSTAINABLE FOREST MANAGEMENT STRATEGIC ISSUE 2: RECYCLING OF PAPER STRATEGIC ISSUE 3: ENERGY STRATEGIC ISSUE 4: RESEARCH AND DEVELOPMENT

25. THANK YOU FOR YOUR ATTENTION