Biomass subsidies “put recycling at risk”, papermakers warn

Speaking in Brussels last Thursday, the Confederation of European Paper Industries said that biomass subsidies were creating an “unlevel playing field” in the market for wood.

” The investments the paper industry has made in recycling over the last decade must now be put as risk by a regulatory bias towards energy. “
– CEPI
It blamed the subsidies for paper mill closures and said it was promoting the burning of wood, rather than the recycling of waste material.

The Confederation, which represents some of the largest recyclers in Europe, said support for biomass was driving up the cost of paper-making and called on the European Commission to establish a hierarchy for the uses of wood.

In a statement, the Brussels-based paper industry body insisted that biomass should only be subsidised if it dealt with wood which could not be recycled.

Setting out its agenda, the Confederation said: “The policy-driven rush to use forests as a biomass has both economic and environmental impacts. It increases costs for paper making and puts at risk sustainable forest practises. It also imperils economic added value, which is four to eight times greater when wood is used for paper than for energy production.”

Closures
The paper industry body explained that developments such as the Emissions Trading Scheme, which puts limits on the amount of carbon emissions companies can generate (see letsrecycle.com story), and “market-distorting” subsidies for biomass, were all contributing to the price increase for its raw material.

As a result of this and other industry pressures, more than 35 paper mills had closed in Europe in 2006, with further announcements made for 2007 – while other companies are locating outside the EU.

The Confederation of European Paper Industries asked the European Commission to ensure that “support for biomass production is proportionate and limited in time.”

It added: “The Commission's commitment to an EU recycling society, which we support, comes at a cost. The investments the paper industry has made in recycling over the last decade must now be put as risk by a regulatory bias towards energy, or other conflicting legislation. Instead recycling should be simplified by regulation of the recycling process and supported by collection schemes that focus on quality.”