Recycling Markets Panel: Paper Abigail Sztein Director, Government Affairs
About AF&PA Advances a sustainable pulp, paper, packaging and wood products manufacturing industry Fact-based public policy and marketplace advocacy Represents 84% of the U.S. pulp, paper, paper-based packaging and tissue capacity.
The Paper Industry in Minnesota Over 24,000 employees 8 mills and over 110 converting facilities 1 recycling facility $1.5 billion in annual payroll $8 billion in products $109 million in estimated state and local taxes paid
AF&PA s 2020 Sustainability Goals 1. Paper Recovery Exceed 70% 2. Energy Efficiency Increase purchased energy efficiency by at least 10% 3. GHG Emissions Reduce intensity by at least 15% 4. Forestry Increase certified fiber procurement 5. Safety Reduce incidence rate by 25% 6. Water Reduce use in mills by 12% 4
Recovered Fiber Markets Complex, dynamic, efficient Global demand Collection commitment by many parties Municipalities, Schools Paper manufacturers, Recycling companies, Businesses Millions of Americans Not served by regulations that restrict marketbased collection, distribution or use
Historical Paper Market Trends U.S. Paper Recovery Rate 1990-2017 80% Actual 70% 60% 50% Trend 40% 30% 20% Source: AF&PA
Historical Paper Market Trends 25 U.S. Recovered Paper Consumption by Major Grade 2004-2016 (million short tons) 20 15 10 Mixed Grades Newspapers Corrugated Pulp Substitutes High Grade Deinking 5 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
China National Sword China implemented a ban on the import of mixed paper beginning 1/1/2018, along with a 0.5% contamination limit for all grades of recovered paper far tighter than the limits set by ISRI Compared to the year ago tonnage volume during the first six months of 2018: Exports of all recovered paper to China down 39% Exports of mixed paper down 94 percent
US Recovered Paper Markets US demand for all recovered paper (including mixed) is stable and expected to increase Exports recovered fiber to other Asian countries were up 114 percent versus their year-ago tonnage volume during the first six months of 2018 to 4.1 million tons The total anticipated increase in U.S. consumption in 2018 works out to approx. 597,000 tons.
Options To Address Remaining (~1.6 million tons) Mixed Paper More mixed paper use at existing mills New export markets Additional domestic capacity coming online Improve quality of residential mixed paper Consumer education and processing improvements at MRFs
Using More Mixed Paper Lower prices make mixed paper a more attractive feedstock Recovered fiber consumption at U.S. mills increased 1.1% in 2017 Domestic consumption of mixed paper projected to increase in 2018 and 2019 Best suited for containerboard, away-from-home tissue, and recycled paperboard Improved quality will allow more mills to consider using mixed paper Processing improvements Technological advancement All of the various options will contribute toward rebalancing the situation
Update on AF&PA Recovery Efforts Promote Voluntary Recovery - The Recycling Partnership MIT Research Consumer OCC Recycling Recovery of Targeted Materials Multiwall Paper Shipping Sacks Paper Foodservice Packaging Educational Outreach
Promoting Increased Paper Recovery 13
The Responsible Package Youth Education: Minnesota Impact: 9,450 Students in 62 Schools
The Responsible Package Objectives: Raise awareness that paper is a renewable/recyclable and that choosing paper-based packaging is the responsible choice. Encourage students to be agents of change in their homes and schools to increase recovery of paper and paper-based packaging for recycling. Educate students and their families on the sustainability of paper-based packaging through STEM based classroom & take home activities. Reach/Target: +350K students in 5 th grade (ages 10-11), their families, and teachers
Best Practices for Sustaining Recovered Paper Markets Market Forces Collection Utilization System designed to meet end user requirements 16
Thank You Abigail Sztein Director, Government Affairs 202.463-2596 abigail_sztein@afandpa.org Brian Hawkinson Executive Director of Recovered Fiber and Paperboard 202.463.2776 brian_hawkinson@afandpa.org 17