ERPA Driving European Paper Recovery & Recycling

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1 ERPA Driving European Paper Recovery & Recycling

2 Buona giornata e benvenuto

3 Is the Chinese Sword Policy a necessary incentive for the circular economy?

4 China says it won't take any more foreign garbage Facts : Announcement of China to the WTO on 18th of July Chinese import of secondary raw materials mln tons mln tons China imports 57 % off all the recyclable plastics in the world. (7.3 mln tons). Actions from the Chinese authorities for a better quality Green fence in 2013 Chinese sword in 2018 Major demand on future shipments : Maximum threshold of non target material of 0.3 % effect Disrupted markets

5 Influence of Export to Asia on the recovered paper market PAPER FOR RECYCLING: SUPPLY AND DEMAND IN EUROPE INTERNATIONAL FLOWS Clear distinction between surplus and deficit regions Global flows quite apparent 21 North America 8 Western Europe 1 Eastern Europe 1 Middle East -28 China 4 Japan 0 Africa -7 Other Far East -1 Latin America 1 Oceania Source: RISI World pulp & paper forecast 5 year (January 2017) 3

6 Influence of Export to Asia on the recovered paper market (2) European situation PAPER FOR RECYCLING: SUPPLY AND DEMAND IN EUROPE UNEVENLY SPREAD SURPLUS / NEW (CONTAINERBOARD) CAPACITIES Europe s recovered paper surplus is spread unevenly Example: Germany: Deficit of 1,5 million UK: Surplus of 4,6 million Mind: Majority of new (expected) containerboard capacities is coming online in (blue) deficit region! Source: CEPI annual statistics 2015; All figures are in metric kt 4

7 Influence of Export to Asia on the recovered paper market (3) PAPER FOR RECYCLING: SUPPLY AND DEMAND IN EUROPE TRADE BALANCE DEVELOPMENTS but export pressure continues to be there Western European surplus is decreasing 5 in metric kt Source: RISI World pulp & paper forecast 15 year (January 2017)

8 Influence of Export to Asia on the recovered paper market (4)

9 Influence of Export to Asia on the recovered paper market (5) Facts Export is necessary for a stable market in Europe 17,5 % of the collected material in Europe needs an outlet in Asia UK market will be hit most by the Chinese Sword Export Prices for occ and mixed paper dropped immediately after the announcement in July. European mills decreased prices because of the extra offers from the UK market and other export oriented area s.

10 Necessary steps for the (paper) recycling Industry Quality first In the collection, single stream gives better results than co mingled collection In the production, high quality sorting/processing and quality control on the output Produce the material in line with the specs of the EN 643 This policy should be an incentive for everybody, bring back the necessary costs in our value chain where they belong, the producer of the waste.

11 Necessary steps for EU policy-makers Correcting market failures Driving the demand for recycled materials Thinking circular at the design stage Eco-design Eco-modulation of fees as a requirement for EPR Schemes To support products recyclability as well as enable economical and efficient reuse, dismantling and recycling of end of life products (e.g. unrecyclable packaging) Stimulating market demand for recycled materials Green public procurement Pull measures rewarding environmental benefits of recycled materials (tax rebates, recycling certificates, etc.). Targets for recycled content Ex: In France, 40% of recycled paper in public procurement by Correcting regulatory distortions placing a higher burdens on downstream users

12 Role of Euric in the discussion Internally First discuss with Euric members, in detail, the positions and impact of the Chinese import ban on certain types of waste. Listen to the views of from all National Associations Support data & factual information Actions Meetings with the European Commission (September, etc.) EuRIC attends the MAAC meetings (Market Access Advisory Committee (MAAC) To bring practical issues arising from Chinese restrictions on top of the agenda. Euric specialists Update and monitor the current quality standards in the EN 643 list.

13 Conclusion In short term, disrupted markets In long term, producing/maintaining a quality product according to the specs in the en 643 Agreeing on end-of-waste for paper based on EN 643 Finally together with this quality first policy we are realizing the circular economy