1. The FAO Advisory Committee on Paper and Wood Products held its forty-first session in Rotorua, New Zealand, on 2 and 3 May 2000. Mme Lise Lachapelle chaired the session, which was attended by 15 members and 44 other participants from 24 countries, and 5 international organizations (Annex 1).
2. Mr Bruce Ross, Director-General, Ministry of Agriculture and Forestry of New Zealand, and Mme Lise Lachapelle, President of the Canadian Pulp and Paper Association and Chairperson of the Committee, welcomed the participants.
3. On behalf of Dr Diouf, Director-General, FAO, and Dr Hosny El-Lakany, Assistant Director-General, Forestry Department, FAO, Dr Wulf Killmann, Director of the Forest Products Division, welcomed the members of the Committee and all the participants. He expressed the Organization's gratitude to the Government of New Zealand for the support provided and to the New Zealand Forest Industries Council for the excellent organization of the meeting. He recognized the importance of participants' contribution to the Committee's activities in terms of time and expertise and acknowledged the support and the guidance of the Committee in the Division's activities related to the forest industry sector. He recalled the uniqueness of the Committee and its important role as a liaison between the private sector and FAO.
4. The agenda (Annex 2) was adopted as proposed, with a minor change in the timetable.
5. Dr Wulf Killmann, Director Forest Products Division, FAO, reviewed the activities undertaken by FAO, and their relevance to the recommendations made by the Committee at its previous session. He indicated activities were concentrated in five areas:
– mitigation of climate change;
– promotion of sustainable forest management;
– follow-up to the global fibre supply model;
– continuation of recovered paper statistics;
– assistance to small farmers growing trees.
6. Mitigation of climate change: FAO commissioned a study to review the current status of the process initiated with the signature of the United Nations Framework Convention on Climate Change (UNFCCC), and the possible role the Organization could play in that context. FAO also reviewed and commented on the special report on Land-Use, Land-Use Change and Forestry (SR-LULUCF) commissioned by the Intergovernmental Panel on Climate Change (IPCC). FAO organized and funded a regional meeting on Contribution of Forests to the Mitigation of Climate Change in Honduras in October 1999, to discuss a common strategy for Central America in order to cope with the implications of climate change for forestry. It is proposed to establish a post in the division for a `Climate Change Officer'. Plans are under way to organize in Rome at the end of 2000 an expert consultation to prepare recommendations for the verification of carbon stocks and changes at national a level.
7. Promotion of sustainable forest management: FAO is continuing its participation in workshops and conferences through presentation of position papers. It is also following and supporting initiatives such as those of ITTO, Montreal and Tarapoto. FAO has been involved in the reviewing The World Bank Forestry Sector Review, which will be discussed at various meetings: the first one at the end of May 2000, the second one at the end of October 2000 and the new strategy will be presented to the World Bank board by December 2000. The Committee recommended that FAO be invited to provide inputs to these discussions.
8. Follow-up to the global fibre supply model: FAO is preparing a document to attract financial support from the international donor community. The Committee was informed that its assistance might be sought in reviewing the final document and in its co-financing, subject to being informed of cost implications. Continued attention should be given to the definition of forest.
9. Continuation of recovered paper statistics: collection and distribution of data continues on an annual basis in co-operation with the Confederation of European Paper Industry (CEPI). Establishment of a working group did not obtain support last year, and will be attempted again this year. FAO should investigate the possibility of preparing a forecast for recovered paper.
10. Assistance to small farmers growing trees: FAO undertook two studies and is now reviewing assistance alternatives and attempts to raise funding.
11. The United Nations Framework Convention on Climate Change (UNFCCC) was adopted in 1992 as a consequence of worldwide concern over global warming. It aims at stabilizing the concentration of greenhouse gases (GHGs) in the atmosphere in an effort to prevent human-induced disturbances to the global climate system. The Convention commits the Parties to carry out national inventories of GHG emissions and sinks, and to work towards meeting voluntary goals in the reduction of emissions. At regular intervals, Conferences of Parties (CoP) are held to promote the effective implementation of the Convention.
12. The CoP3 took place in Kyoto, Japan, in December 1997, and adopted the so-called `Kyoto Protocol' (KP) whereby developed countries and countries with economies in transition (Annex B countries) commit themselves to reduce their GHG emissions between 2008 and 2012 by an overall 5.2 percent compared to the 1990 levels, and which also allowed achieving a certain amount of emission reduction outside their own company or country.
13. The main sectors where the forest industry can make a contribution towards a reduction or substitution of GHG emissions is in carbon sequestration through sustainable forest management, regeneration or replanting of the resource; in reducing emissions by increasing the use of recovered paper (less household or industrial waste and landfills and thus less emission, especially of methane); and in reducing emissions through substituting fossils fuels by biofuels or other sources of renewable energy.
14. Considering the limited amount of information available on the effects of the forest-based industry sector on carbon, it would be opportune to collect information to allow comparison between the forest industry sector and other sectors regarding energy consumption, GHG release, and carbon fixation.
15. Canada's approach to address KP initiated two years ago through a `table' process consisting of 16 groups on 16 main subjects. The forest industry was represented at the forest sector and sink `tables'. The final report is expected to be completed in autumn 2000. The strategy will be incremental, will keep pace with the rest of the world and will involve all industries and all Canadians.
16. Canada's contribution to GHGs represents 2 percent of the world total, with the pulp and paper sector contributing 12 percent of Canada energy consumption and 4 percent of its CO2 emissions. The main source of energy for the forest sector was biomass (54 percent) followed by fossil fuel and purchased electricity (24 and 19 percent, respectively). In 1998, discharge of CO2 from fossil fuel is down to 379 kg per t of product compared to 517 kg per t in 1990 (a decrease of 27 percent).
17. The forest sector has identified two main strategies: (i) modify or reduce energy consumption through energy-efficient technologies, improved maintenance and thermal integration, and use fuel-switching measures such as co-generation or black liquor gasification; and (ii) increase carbon reserve through reforestation and optimization of storage through forest activities.
18. Though the government acknowledges the progress made by the forest industry sector in terms of reduction in GHG emissions, there is no guarantee that the industry will not be asked at a later stage to further reduce its emissions of GHG to achieve the national target.
19. Under KP, members of the European Union agreed to a `burden-sharing' agreement in 1998, which implies that the overall reduction of 8 percent in GHG emissions is shared among the member States so as to allow for different economic development patterns. Energy and transport are the main contributors to CO2 emissions; these emissions are expected to grow by 39 percent by 2010, while industrial emissions are expected to decrease by 12 percent over the same period. It is now recognized and admitted that emission trading could ensure a cost-effective reduction in GHG emissions, which is likely to save a significant amount of money to the European Union as a whole.
20. A number of forest-based options are available to mitigate atmospheric carbon build-up as, for example, the slowing down of tropical deforestation, increased productivity and management of existing forests, and increased afforestation.
21. Paper products also offer a significant option for offsetting GHG emissions from the paper cycle. As a matter of fact, any paper product stores non-fossil carbon. On average, one tonne of paper contains some 380 kg of carbon, that is 1.4 t of carbon equivalent CO2.
22. There are three main possibilities for the industry to contribute to the achievement of the goals of KP: increased use of biofuels, further diversification towards fossil fuels containing less carbon, and energy savings.
23. In accordance with KP, Japan has to reduce its emissions of GHGs by 6 percent from the level registered in 1990. Approximately 90 percent of CO2 emissions are caused by energy combustion, and the reduction is most urgently required in transport and commercial/residential sectors.
24. The Japan Paper Association (JPA) adopted a `Voluntary Action Plan on Environment' and concentrated its efforts on: a) energy savings, b) extension of plantation, and c) promotion of recovered paper utilization.
25. There was a 5 percent reduction in purchased energy between the years 1990 and 1998. The target is to reduce purchased energy by ton of final product by 10 percent by the year 2010. Plantations by members of the Association will increase from 330 000 ha in 1996 to 550 000 in 2010, and sequester approximately 2.4 million t of carbon yearly. The recovered paper utilization rate (the amount of recovered paper used for paper and paperboard as a percentage paper and paperboard production) reached over 56 percent in 1999, up 5.5 percentage points from 1990 levels.
26. Though the Government of the United States is committed to reduce by 2010 its emissions of a basket of six GHGs by 7 percent below the 1990 level, ratification of KP by Congress is unlikely because of two shortcomings - the expected economic cost of meeting KP commitments and lack of meaningful participation by developing countries.
27. However, the United States forest products industry takes the issue of climate change very seriously and has initiated several studies and research projects to prepare itself for the inevitable requirement to reduce GHGs, whether under KP or some other climate change regime. In 1994, the Board of Directors of the American Forest & Paper Association established a long-range research programme which articulates where the industry stands, where it wants to be in 2020, and the technology-related issues that bridge the gap.
28. Using combined cycle black liquor gasification, the pulp and paper industry could become a substantial net generator of renewable electricity, which will have a beneficial effect in terms of CO2 emissions. For example, reducing fossil fuel use for a 1 300 mt-per-day Kraft line would offset roughly 60 000 t of carbon per year.
29. A study sponsored by the United States forest products industry estimated that the capital cost to reduce its CO2 emissions to 7 percent below 1990 levels by 2010 could amount to US$6 to 8 billion, and annual costs (i.e., debt service, depreciation and purchase of energy) could range up to US$1 billion a year.
30. All countries undertook to reduce their use of fossil fuels under self-imposed emission controls assessed in proportion to ongoing production. Among the measures contemplated after Rio there was a greater use of biomass fuels derived from plants. Carbon dioxide emissions from combustion of such fuels are cancelled out, at least partly, by the carbon fixation function of any energy crop during growth and the further storage or sequestration of carbon as wood.
31. World production of bio-energy, or wood for energy use, is estimated to be about 1.9 billion m3 (FAO 1998) or 1.4 billion t. An estimated additional amount, equivalent to some 0.3 billion t of wood, is recovered and recycled for energy use. The total of some 1.7 billion t is equivalent to about 550 million t of oil. Wood contributes 6-7 percent of the global primary energy supply (excluding biomass other than wood). It is substantially the largest source of renewable energy, providing more than twice the contribution of hydro-electricity worldwide.
32. However, the importance of wood in total energy supply varies between regions. Reliance on wood is greater in countries with low income and with unequal income distribution. In these regions, bio-energy is a major component of the energy supply, essential to the satisfaction of the basic nutritional and health needs of some two billion of the world's population.
33. Bio-energy technologies need further demonstrations and deployment; efforts are currently under way to assess barriers to their further development, with special attention to non-technical barriers.
34. The globalization of trade in forest products has generated an interest in issues which affect market access for these products, particularly the measures which impede or restrict trade. Whilst the world has made great progress in cutting tariff rates since the signing of the General Agreement on Tariffs and Trade (GATT) in 1947, the use of non-tariff measures has increased in the last 20 years.
35. With the Uruguay Round, a number of countries signed up to eliminate tariffs on pulp and paper products by 2004. A similar agreement for wood products was unsuccessful, but some significant tariff concessions were nevertheless achieved. As progress has been made on reducing tariff barriers to the forest products trade, attention is increasingly turning towards non-tariff barriers such as the ones socially, politically, or environmentally motivated (i.e. eco-labelling, certification).
36. Trade is concentrated in a number of products, with typically one or two importing economies accounting for up to 90 percent or more of the trade. It is, therefore, not surprising that concerns over trade barriers for these products are focused on relatively few economies. As products become more highly manufactured and as trade becomes more diversified, trade measures will tend to become less of an issue. Concerns relating to non-tariff measures therefore seem to be more related to raw or semi-processed raw material rather than highly manufactured products.
37. Currently, a wide range of actions is under way concerning certification. Main emphasis to date has been on timber and timber products, and to a lesser extent pulp and paper products. However, there is also some interest in developing a certification system for non-wood forest products.
38. The main focus of certification in forestry has been on the standard of management of the forests, not on broader environmental credentials. Little emphasis is being given to environmental effects such as plant emissions, energy usage, transport and disposal methods. This point is of particular significance to the pulp and paper industry, which has already given considerable attention to many of these aspects.
39. Contrary to many statements, the process is not being driven by demand from concerned consumers. It is being pushed, and in some cases forced, by environmental groups, retailers, city and regional councils, and forest owners who see a need to be able to prove their management in order to ensure access to some markets, and/or get a market advantage over other suppliers.
40. Sustainable forest management remains the overall objective; whether certification is the best means to achieve it, is still debated since certification by itself is unlikely to ensure sustainable forest management.
41. Privatization was considered to be a natural and logical change in the way New Zealand managed its planted forestry resources, consistent with the maturing of the industry. Changes in political sentiment and the commercial operating environment have shaped the outcomes:
– The land rights of New Zealand's indigenous people are preserved in legislation. However, the process of advancing these rights has been slow.
– The profitability and competitiveness of forestry has been positively influenced. Devolution can claim part, but certainly not all, of the credit for this.
– Whether devolution has led to a net gain or loss in employment levels remains unclear. However, given the very low labour intensity of forestry in New Zealand, this is more of a perceived than real issue.
– Market fundamentals rather than policy prescriptions have seen investment in afforestation surge to historical highs.
– On-shore processing has been facilitated. However, the level of investment is a long way from the supply-determined potential. Whether it accords with the market potential is debatable.
42. To increase competitiveness and stimulate production, investment, innovation and marketing, the New Zealand Government made various reforms in the forestry sector, including: i) privatization of the plantation resource through international tender; ii) changes to forestry taxation; and iii) removal of protective barriers (import licensing and tariffs). These reforms resulted in increases in productivity, in contribution to GDP, in wood recovery, in competitiveness and in reduction of energy consumption.
43. The working group on recovered paper recommended by the Committee at its last session had not yet been established. The Committee recommended that another attempt be made.
44. Last year's recovered paper survey was done in co-operation with the Confederation of European Paper Industry (CEPI) and published jointly by CEPI-FAO. It is recommended to continue on this basis for the future issues of the survey.
45. Both FAO (for the world) and CEPI (for Europe) conduct capacity surveys. To eliminate duplication of work for both organizations and the recipients of the questionnaire, it is proposed to have FAO send out the questionnaire to all participants in the survey and transmit to CEPI the data received from European countries. Surveys will continue to be published separately by FAO and CEPI.
46. The Committee acknowledged and commended the work done on global climate change and recommended to plan and implement follow-up activities, such as the establishment of a post for a `Climate Change Officer', and the organization of the expert consultation to prepare recommendations for the verification of carbon stocks and changes at national level.
47. The Committee recommended that FAO continue its involvement in the promotion of sustainable forest management, and more specifically that FAO take a very active part in the World Bank Forestry Sector Review.
48. It was recommended that more frequent contacts and exchange of information (particularly in the field of certification) take place between FAO and the private forest industry sector so that the Organization is continuously informed of latest industry activities.
49. The Committee recommended that FAO evaluate the feasibility of undertaking an outlook study on recovered paper.
50. The establishment of a working group to review classification and grade definition of recovered paper should be assessed and undertaken if there is sufficient interest from members of the Committee.
51. The Committee decided that the forty-second session of the Committee would be held in Rome on 27 April 2001.
52. The Committee nominated Mr Luis Deslandes (Portugal) and Mr James Griffiths (New Zealand) as Chairperson and Vice-chairperson, respectively.
53. The Committee decided to use English as the language of communication for its future sessions.
54. In the name of the Committee, the Chairperson expressed her gratitude to the Government of New Zealand (Ministry of Agriculture and Forestry) and to the New Zealand Forest Industries Council for their generous hospitality and excellent organization. She congratulated the newly-nominated Chairperson and Vice-chairperson and thanked all the participants for their active participation in the session.
55. The Director of the Forest Products Division thanked the Committee for its advice in FAO activities and mostly for the time and efforts that they so generously contribute to the Committee. On behalf of the Director-General, and also personally, he thanked the outgoing Chairperson, Mme Lise Lachapelle, for her excellent leadership and the advice provided. He congratulated her on the way she promoted the work of the Organization and the private sector. He also congratulated her on being the first woman to serve as Chairperson and on setting such high standards for Chairpersons to follow. On behalf of the Director-General, he expressed the gratitude of the Organization to the organizer and hosts of the session for their excellent work and hospitality.
Australia Bridson Cribb E-mail: [email protected] |
Brazil Boris Tabacof (member) |
Lise Lachapelle (member) Kirsten Vice |
Fernando Raga |
Colombia |
Confederation of European Paper Industries (CEPI) Marie Arwidson
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Czech Republic Frantisek Nemec |
Finland Claes von Ungern-Sternberg (member)
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France Jean-Paul Franiatte |
Germany Klaus Windhagen (member)
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Hungary Zoltan Szikla (member)
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Indonesia H.M. Mansur (member) |
International Tropical Timber Organization (ITTO) Amha bin Buang |
Japan Kiyoshi Sakai (member) Masao Taniguchi Jun-ichi Nihei |
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Malaysia Yahaya Ishak |
MexicoCarlos Sacal (member) |
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New Zealand |
New Zealand |
Bruce Ross |
James V. Griffiths (member) |
Ashley Chan |
Mary Clarke |
John Goodman |
Bryce Heard |
Frances Maplesden |
Jim Maud |
Rob McLagan |
Murray Parrish |
Peter Sligh |
John Tustin |
John Vaney |
Murray Ward Don Wijewardana |
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Portugal Luis Deslandes (member) João Soares |
Republic of Korea Jong-dae Lee |
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Russian FederationEdouard Akim (member) Svetlana Vinogradova |
Singapore |
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Slovak Republic Lubos Lopatka Jurai Dlhopolcek Pavol Kendra |
Sweden Jan Remröd (member) |
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Thailand Somboon Chuchawal (member) |
United Kingdom Claes Hall Peter Wilson |
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United Nations Environmental Programme (UNEP) |
United States of America W. Henson Moore (member) Jacob Handelsman Irene W. Meister |
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World Bank Pekka J.O. Alhojarvi |
Food and Agriculture Organization of the United Nations (FAO)Wulf Killmann Jacques Lahaussois |
1) Opening of the session and welcoming addresses
2) Adoption of the provisional agenda
3) Review of actions taken by FAO on the recommendations made at the fortieth session of the Advisory Committee
4) Global warming and Kyoto Protocol
a) Global warming and the Kyoto Protocol: Implications for the paper and wood products industry
b) Efforts to reduce CO2 emissions in the pulp and paper, and forest industry
i) Canada
ii) Europe
iii) Japan
iv) United States of America
c) Bio-energy: Review of activities and progress
5) Trade and environment
a) Key trade issues in paper and forest products after Seattle
b) Certification and labelling of paper and other forest products: Where are we heading?
6) Privatization of the New Zealand forest industry
a) Devolving forest ownership through privatization in New Zealand: Processes, issues and outcomes
b) New Zealand forest industry 1984-1999: Economic impact study
7) Recovered paper and capacity survey
8) Recommendations by the Advisory Committee to FAO, plan of action for the period 2000-2001, theme of the forty-second session of the Advisory Committee
9) Date and place of the forty-second session of the Advisory Committee
10) Any other business
a) Nomination of next chair and vice-chair
b) Language issue
11) Closing remarks