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CANADIAN PULP AND PAPER ASSOCIATION November 25, 1996 Ms. Sue Kirby Senior Director Voluntary Challenge and Registry Natural Resources Canada 580 Booth Street, 19th floor Ottawa, ON K1A 0E4 Dear Ms. Kirby: Re: CPPA's PULP AND PAPER INDUSTRY SUBMISSION TO VCR The Canadian Pulp and Paper Association (CPPA) presents its first industry submission to the Voluntary Challenge and Registry (VCR) and Industrial Energy Innovators (IEI)/Canadian Industry Program for Energy Conservation (CIPEC) programs. This submission includes background information on the pulp and paper industry and the CPPA, describes the sector-specific issues and opportunities for mitigation, lists the climate change-related activities the Association has undertaken and plans for 1997 and summarizes the accomplishments of Canada's pulp and paper companies. The CPPA supports Canada's voluntary approach to greenhouse gas (GHG) emissions management and encourages all pulp and paper companies to demonstrate their individual commitments to reduce and/or stabilize GHG emissions. As of October 1996, 24 pulp and paper companies have registered with VCR and/or IEI/CIPEC programs. These companies represent 78% of total production and 78% of total energy use of CPPA's member companies. The pulp and paper industry's key strategies for reducing net GHG emissions have been identified as: ! ! ! Decreasing Non-Biomass Emissions of Greenhouse Gases; Balancing the Carbon Budget to Release "Zero Net CO2"; and Increasing CO2 Sequestration through Forestry. Specifically, the industry's increase in energy self-sufficiency (substitution of purchased energy with energy from biomass), improvements in energy efficiency and adoption of more sustainable forest management practices have been positive and substantial contributions to reducing Canada's GHG emissions. Twenty-one pulp and paper companies have filed GHG action plans with VCR and/or IEI/CIPEC programs. The plans focus first on reducing the dominant source of GHG emissions from their operations - the emissions resulting from the combustion of fossil fuels. All plans show a reduction in GHG emissions on a per tonne basis, and most companies will either stabilize or reduce their GHG emissions at 1990 levels by the year 2000. Ms. Sue Kirby Voluntary Challenge and Registry Natural Resources Canada Ottawa, ON Over the period 1990 to 1995, the total fossil fuel consumption by member companies declined by 12% while pulp and paper production increased by 12%. Consequently, the 1995 GHG emissions (from fossil fuel combustion) have been reduced from 13,720 to 11,000 kilotonnes CO2 per year, 20% lower than 1990 levels. The total energy consumption of CPPA's member companies rose 4% relative to 1990 levels. Part of this increase is attributed to the addition of several secondary effluent treatment systems, which increased the total demand for purchased electricity by 2%. However, on a per tonne of production basis, energy efficiency improved by 7% from 29.4 TeraJoules (TJ) per tonne in 1990 to 27.4 TJ per tonne in 1995. Approximately 56% of the industry's energy demand is currently met with the use of biomass derived from sustainable operations. The Intergovernmental Panel on Climate Change recognizes that carbon dioxide (CO2) emissions from the combustion of sustainably derived biomass do not contribute net CO2 to the atmosphere. Although the manufacture of pulp and paper is energy intensive, more than half of the energy supply does not contribute net CO2 and therefore pulp and paper products have a relatively low GHG intensity. The CPPA continues to support research to better understand the impacts of Canada's forest sector and the pulp and paper industry on the global carbon cycle and the emission of greenhouse gases. Over the next year, the CPPA's Global Climate Change Task Force will expand its work on the forest side of the climate change issue. We welcome your input on the pulp and paper industry's first submission to the VCR and IEI/CIPEC programs. The CPPA's submission is available in both English and French, and will be posted electronically at the VCR's website. Please direct your questions and comments to: Claude Roy, Director of Environment & Energy, CPPA, 1155 Metcalfe Street, Montréal, Québec, H3B 4T6, Tel (514) 8666621; Fax (514) 866-3035. Sincerely, George H. Weyerhaeuser, Jr. President and CEO, Weyerhaeuser Canada Ltd. Chairman, Global Climate Change Task Force Co-Chairman, Canadian Sustainable Forestry Certification Coalition TABLE OF CONTENTS LETTER FROM TASK FORCE CHAIRMAN section 1 1.0 1.1 1.2 1.3 1.4 section 2 2.0 2.1 2.2 section 3 3.0 3.1 3.2 3.3 section 4 4.0 4.1 4.2 4.3 4.4 CANADA'S FOREST SECTOR AND PULP AND PAPER INDUSTRY CANADA'S SUSTAINABLE FOREST MANAGEMENT INITIATIVES SECTOR'S CONTRIBUTION TO ECONOMY AND EMPLOYMENT PULP AND PAPER INDUSTRY'S PRODUCTION FORECASTS CANADIAN PULP AND PAPER ASSOCIATION (CPPA) SECTOR-SPECIFIC ISSUES AND OPPORTUNITIES GHG EMISSIONS FROM BIOMASS AND NON-BIOMASS SOURCES MITIGATION OPPORTUNITIES CPPA'S ACTIVITIES RELATED TO GLOBAL CLIMATE CHANGE CPPA'S FOREST PRACTICES TASK FORCE CPPA'S GLOBAL CLIMATE CHANGE TASK FORCE OTHER INDUSTRY AND RESEARCH ASSOCIATIONS PULP AND PAPER COMPANY INITIATIVES RELATED TO GHG EMISSIONS MANAGEMENT PARTICIPATION IN VCR AND IEI (CIPEC) PROGRAMS TRENDS IN ENERGY USE AND GHG EMISSIONS COMMON GHG MANAGEMENT MEASURES COMPANY SUCCESS STORIES section 5 5.0 FUTURE PLANS OF CPPA'S GLOBAL CLIMATE CHANGE TASK FORCE appendices A. CPPA Statement by the Pulp and Paper Industry: Global Climate Change (revised 1995) B. CPPA Press Release August 11, 1996 1996 CPAA INDUSTRY SUBMISSION 1.0 CANADA'S FOREST SECTOR AND PULP AND PAPER INDUSTRY Canada's forests cover 45% of the country's land mass and account for almost 10% of the world's total forests. These forests are a complex mosaic of geographically diverse yet interconnected ecosystems that are home to many tree, plant and wildlife species. Canadians have come to depend on these forests to not only provide habitat but to produce clean air and water, prevent soil erosion, moderate climate and sustain the economies of many communities accross the country. Most of the country's forests, approximately 94%, are publicly owned. It is the governments' role to ensure that Canada's forests are managed on a sustainable basis. Provincial governments manage 71% forests, while the federal and territorial governments manage 23%. The remaining 6% of the forests are privately owned. In this regard, it is important to note that the Organization for Economic Co-operation and Development (OECD) concluded in its 1995 independent review of environmental performance that Canada's forest resources were sustainable in terms of current harvest practices. 1.1 CANADA'S SUSTAINABLE FOREST MANAGEMENT INITIATIVES The issue of sustainable forest management has been on global and domestic agenda for several years. While countries have had difficulty reaching consensus on a single definition, a significant amount of groundwork for a future agreement has been completed to date. The 1992 United Nations Conference on Environment and Development (UNCED) produced a number of agreements that have had important implications for the definition and implementation of sustainable forest management. These include: Convention on Biological Diversity, Framework Convention on Climate Change, Agenda 21 and the UNCED's non-legally binding Forest Principles entitled "Statement of Principles for Global Consensus on the Management, Conservation and Sustainable Development of all Types of Forests". As Canada has been an active participant in the development of these agreements, Canada's initiatives either precede or closely follow international milestones. In June 1992, Canada's National Forest Strategy was formally ratified with the signing of the Canada Forest Accord by federal, provincial and territorial ministers responsible for forests and by members of the Canadian forest community including private sector and environmental groups. The Strategy is considered to be a "blueprint: for domestic implementation of UNCED commitments related to forests, such as protection of forest biodiversity, expansion of forest inventories and forest research, involvement of Aboriginal peoples, and development of internationally accepted principles and standards of forest management". The accomplishments of the National Forest Strategy will be evaluated in 1997 and a successive strategy will likely be initiated. In 1993, the Canadian Council of Forest Ministry, (CCFM) established a steering committee to develop national criteria and indicators of sustainable forest management. On an international level, Canada played a leading role in a working group known the "Montreal Process" which was established to develop internationally agreed-upon criteria for conservation and sustainable management of temperate and boreal forests outside Europe. In February 1995, countries participating in this Process endorsed the "Santiago Declaration" that set out the criteria for monitoring progress. Later this same year, in October 1996 CPAA INDUSTRY SUBMISSION 1.0 CANADA'S FOREST SECTOR AND PULP AND PAPER INDUSTRY 1995, the CCFM approved a similar national framework of criteria shown in Figure 1. The maintenance of global ecological cycles, including the carbon cycle, is one of six criteria used to measure sustainability. As described in Section 2 it is this attribute of sustainability that directly links forest sector's activities to climate change and greenhouse gas issues. Figure 1: Canada's Forest Sustainability Criteria and Associated Elements To promote the use of sustainable forest management practices at a company level, the Canadian Standards Association was asked by 23 national and provincial forest industry associations to initiate the development of national certification standards for sustainable forest management. The standards were developed by a multi-interest Technical Committee using an open, inclusive and consenus-oriented process, and approved as National Standards of Canada on September 26, 1996. Canada is the first country in the world to establish domestic standards and a certification process for forest company registration of its sustainable forest management system for a defined forest area. While sustainability is a large and complex concept, Canada's forest sector is actively involved in discussions at international, national and provincial levels to ensure that its industry's operations are sustainable for present and future generations. For more information and statistics, readers are referred to: State of Canada's Forests 1995-1996, Natural Resources Canada, 1996 ! 1996 CPAA INDUSTRY SUBMISSION 1.0 CANADA'S FOREST SECTOR AND PULP AND PAPER INDUSTRY ! ! "OECD Environmental Performance Reviews: Canada", OECD, 1995. "Harvest and Harmony", Canadian Pulp and Paper Association. 1.2 SECTOR'S CONTRIBUTION TO ECONOMY AND EMPLOYMENT Canada's forest sector is a combination of industrial groups including the harvesting and forest management industry, solid-wood industries (e.g. lumber, plywood and panelboard manufacturers) and paper and allied industries (pulp mill newsprint mills and producers of paperboard and fine paper products). Softwood lumber newsprint, wood pulp, printing and writing paper are wood-based panels are some of the billions of dollars in products manufactured by Canada's forest industries. In 1995, sales of Canadian forest products increased $9.6 billion or 22% to almost $54 billion from the previous record of $44.3 billion in 1994. This same year, the forest industry posted exports totaling $41 billion and its net exports totaled $34.3 billion, making it by far the largest contributor to the country's balance of trade. For every dollar of sales generated by Canada's forest industry during 1995, eighteen cents went directly to governments. In 1995, taxes, stumpage and other direct payments to government rose by $700 million or 15.9% to $5.1 billion. The forest industry is Canada's largest industrial employer which directly and indirectly generates close to one million jobs across Canada. For some 350 Canadian communities the forest products industry is the main, or sometimes the only, local employer. In 1995, direct industry employment rose by 4,300 to 246,000 people. These job increases resulted primarily from changing forest practices and the reopening of several previously idle facilities. Some 741,000 people work in indirect supply and service jobs generated by the forest industry. In addition, eco-tourism and recreation are fast-growing financial sectors that also rely on sustainably managed forests. For more information, readers are referred to: "The Forest Industry in Canada - 1995", Price Waterhouse, May 1996. ! 1.3 PULP AND PAPER INDUSTRY'S PRODUCTION FORECASTS Canada's pulp and paper industry is mature. Production forecasts for the year 2000 show modest increases. In 1995, capacity for the paper, paperboard and market pulp sectors of Canada's forest industry totalled 30.8 million tonnes. This was 150,000 tonnes greater than the published level for 1994. During the period 1995 to 1998, total industry capacity is expected to grow by 2.0 million tonnes, or 6.5% to reach 32.8 million tonnes by 1998. This translates into an annual growth rate of 2.1% which is below the trend rate of 2.8% registered during the previous ten-year period. 1996 CPAA INDUSTRY SUBMISSION 1.0 CANADA'S FOREST SECTOR AND PULP AND PAPER INDUSTRY On a regional basis, Quebec and Ontario are predicted to show the largest increases, jointly accounting for two-thirds of total industry growth, followed by the Atlantic provinces. By the end of 1998, it is expected that Quebec will remain the largest regional producer accounting for more that 32% of the national total; British Columbia and Ontario are expected to follow with respective shares of 26% and 20%. For more information, readers are referred to: "Canadian Pulp and Paper Capacity: 1995-1998 ", Dept. of Economics and Statistics, Canadian ! Pulp and Paper Association, 1995. 1.4 CANADIAN PULP AND PAPER ASSOCIATION (CPPA) 1.4.1 Purpose Founded in 1913, the CPPA is a trade association representing Canadian pulp and paper manufacturers. Its 54 members account for 85 to 90% of pulp and paper and approximately 70% of the solid wood products manufactured in Canada. (Unless otherwise noted, the statistics cited in this submission relate to CPPA's member companies and not to the total pulp and paper industry.) The Association's mission is to advance the interests of its member companies. The Association, through the involvement of its membership, pursues common objectives in public policy and operation areas of interest to the industry such as forests and forest management, the environment, transportation, taxation, and international trade. The Association presents industry's position on issues to government and regulatory agencies. It is responsible far developing and promoting a clear understanding of the industry and its stand on issues to various stakeholders, both national and international. The Association also conducts research, collects statistical information and produces special studies in areas of interest to the industry. 1.4.2 Structure and Funding The CPPA is governed by a Board of Directors who are senior executive officers of CPPA's member companies. CPPA's affairs are directed by a Chairman, elected annually from the Board of Directors, as well as by a President and CEO. The CPPA's activities are funded by its member companies. Much of the Association's work is carried out by the CPPA's 17 Sections, each centred around specific activities within the industry. 1996 CPAA INDUSTRY SUBMISSION 1.0 CANADA'S FOREST SECTOR AND PULP AND PAPER INDUSTRY The CPPA's Sections deal with: ! ! ! ! ! ! ! ! ! ! ! ! ! ! environment, finance, taxation, trade, communications, technology, forest issues, recycling, purchasing, energy occupational health, human resources, transportation, and product-specific concerns (newsprint, market pulp, printing and writing papers, packaging, and sanitary papers). The Association also maintains an extensive data base on the pulp and paper industry in Canada. 1996 CPPA INDUSTRY SUBMISSION 2.0 SECTOR-SPECIFIC ISSUES AND OPPORTUNITIES The forest sector's contribution to anthropogenic emissions of greenhouse gases (GHGs) and its opportunities for mitigation differ from other sectors because the sector is involved with: ! two different types of GHG emissions (biomass and non-biomass); and ! sinks and sources of biomass CO 2 (part of the terrestrial carbon cycle). 2.1 GHG EMISSIONS FROM BIOMASS AND NON-BIOMASS SOURCES Like most industries, the pulp and paper industry contributes GHG emissions from non-biomass sources. These emissions (CO2, CH4 and N2O) result mainly from the consumption of energy, in the form of fossil fuels and purchased electricity. A smaller fraction of non-biomass emissions comes from the industry's use of chemicals and other materials which release GHGs during their consumption. Figure 2: Canadian Forest Sector Carbon Flow As shown in Figure 2, the pulp and paper industry is part of the forest sector's carbon cycle. The 1996 CPPA INDUSTRY SUBMISSION 2.0 SECTOR-SPECIFIC ISSUES AND OPPORTUNITIES schematic describes how CO2 is taken up (sequestered) by the forest ecosystem, stored as carbon in both the forest and forest products, then released to the sphere, primarily in the forms of CO2 and CH4. A small portion of biomass carbon is released immediately at the harvested site from decaying slash or at the millsite where it is combusted for steam and electrical energy. The majority of the carbon is converted into a variety of short and long-lived products ranging from newsprint to structural lumber to antique furniture. Eventually, the paper and wood products are either incinerated or landfilled, and the biomass carbon is returned to the atmosphere. Ultimately all of the biomass carbon taken up by forest growth is returned to the atmosphere. While in theory there is no net loss or gain of carbon over time, 4 is believed that the rate of carbon cycling can be changed as follows: ! ! ! Forest management, including forest protection, can affect the rate of uptake of CO2 from the atmosphere and the length of time carbon is stored in forest ecosystems; The utilization of harvested biomass, i.e. for energy and the manufacture of paper and wood products, can affect the length of time carbon is stored in forest product pools; and Consumer use and disposal of products can effect both the rate and type of carbon-based emissions (CO2 and CH4) returned to the atmosphere. CO2: Carbon Dioxide CH4: Methane N2O: Nitrous Oxide As the forest carbon cycle can store carbon for decades and even centuries, it is thought that the above strategies have the potential to "buy time"while permanent ways to reduce GHGs are developed. Note that if human-induced climate change begins to occur, forest ecosystems and the forest carbon cycle will be affected. The rate and form of climate change will define the level of impact on forest cycles. Consequently, the strategies for balancing the carbon budget may also change over time. For more information, readers are referred to: CPPA Statement "Global Climate Change"1995.(See Appendix A.) ! 2.1.1 Separate Accounting of CO2 Emissions from Biomass The renewable nature of biomass CO2 has led the intergovernmental Panel on Climate Change (IPCC) to recommend separate accounting and reporting of CO2 emissions from biomass sources. In general, it is accepted that if forest management is practiced on a sustainable basis, CO2 emissions from the combustion and decomposition of biomass are balanced by an equivalent CO2 uptake by forest growth through photosynthesis. Therefore, on a lifecycle basis, CO2 emissions from biomass should not 1996 CPPA INDUSTRY SUBMISSION 2.0 SECTOR-SPECIFIC ISSUES AND OPPORTUNITIES contribute additional CO2 to the atmosphere (i.e. zero "net CO2"). The pulp and paper sector has adopted the IPCC’s reporting protocol, and recommends in its guidelines that a separate inventory be prepared of CO2 emissions from biomass sources. Some of these sources include: ! ! ! combustion of wood residues in hogfuel boilers, teepee burners or from open burning chemical recovery in pulp mills, i.e. combustion of spent liquor in recovery boiler and lime production in lime kilns; and emissions from landfills and effluent treatment. For more information, readers are referred to: "IPCC Guidelines for National Greenhouse Gas Inventories", Volume 1, 1995, ! Section 6: Land Use Change & Forestry, "Trends", Environment Canada, 1996, and ! CPPA Guidelines for Preparation of Greenhouse Gas Action Plans, 1996. ! 2.2 MITIGATION OPPORTUNITIES 2.2.1 Reducing Non-Biomass Emissions of Greenhouse Gases The majority of the industry's non-biomass emissions result from the combustion of fossil fuels for energy in stationary and mobile sources. Opportunities for reducing these emissions include: (a) direct reductions of non-biomass emissions at mill sites and associated forest management areas through: ! ! ! increased energy efficiency and heat recovery (decreased use of fossil fuels); substitution of fossil fuel energy with biomass energy and substitution of more GHG intensive fossil fuels (e.g., Bunker C oil) with less GHG intensive fossil fuels (e.g., natural gas). (b) changes which reduce non-biomass emissions off-site such as: ! ! decreased use of purchased electricity (reduces utilities' fossil fuel emissions); displacement of utilities' fossil fuel power production with energy from wood waste cogeneration; and increased use of solid wood products for building materials (substitutes for more GHG-intensive materials (e.g. steel or concrete produced using fossil fuel energy). ! 2.2.2 Balancing the Carbon Budget to Release "Zero Net CO2" Depending upon the age of the forest and type of disturbance it undergoes, the annual forest carbon budget for an area may be positive, neutral or negative with respect to net CO2. However, over the 1996 CPPA INDUSTRY SUBMISSION 2.0 SECTOR-SPECIFIC ISSUES AND OPPORTUNITIES forest's lifecycle, the CO2 emissions are generally considered to be balanced by uptake. In theory, there will be no net losses nor gains with respect to CO2 if there are no major shifts in land use (i.e. conversion of forests into urban areas. Maintaining this balanced budget includes: (a) practicing sustainable forest management - avoiding and minimizing permanent losses of carbon storage in the system; (b) ensuring rapid regeneration of harvested sites; (c) protecting forests from fire, insects and disease (d) reducing carbon loss from the forestfloor and (e) making efficient use of harvested fibre (e.g. using fibre which is presently disposed of in teepee burners (without energy recovery) in sawdust digesters; using recycled fibre; producing lighter weight papers; etc.); (f) producing products with long lifespans from harvested wood, and; (g) promoting long term use of forest products through recovery; recycling and reuse In certain managed forests there may be opportunities to increase CO2 uptake and storage (sequestration) through intensive forest management (e.g species selection, control of stand density, fretilization, additional fire protection). These site-specific opportunities need to be evaluated on a case by case basis using a lifecycle assessment. The changes resulting from forest management should be compared with what would have occurred naturally as a baseline. Depending upon competing needs for land resources, there may also be opportunities to increase CO2 sequestration by expanding the amount of forested area through: ! ! ! urban forestry, afforestation of marginal agricultural lands and abandoned lands, and agroforestry. 1996 CPAA INDUSTRY SUBMISSION 3.0 CPPA'S ACTIVITIES RELATED TO GLOBAL CLIMATE CHANGE 3.1 CPPA'S FOREST PRACTICES TASK FORCE From 1990 to 1993, the issue of global climate change was addressed by the CPPA's Forest Practices Task Force. The following list summarizes the sustainable forest management and climate change related activities completed by this Task Force. 1990 - 1991 ! Completed a literature review on climate change and its impact on the forest sector. ! Prepared and distributed the CPPA position statement on Global Climate Change. ! Participated in a review of the pulp and paper submodel included in the Canadian Forest Service (CFS)'s Carbon Budget Model. 1992 ! Produced and distributed following statements: Biodiversity Conservation; Clearcutting: A Forest Regeneration Method; Forest Renewal; Forest Wildlife Habitat and Forest Ecosystems; Independent Audits of Forest Management Performance; Old Growth Forests; Public Participation in Forest Management Planning; Watershed Management; Wetlands; and Global Climate Change. ! Represented the industry on the United Nations' Conference on Environment and Development (UNCED) groups developing the International Forest Principles Statement and the Conventions on Biodiversity and Global Climate Change. Represented the industry at the UNCED Conference in Brazil in June 1992. ! Participated in the development of the National Forest Accord and National Forest Strategy. Chairman of the Task Force was the CPPA signatory to the Accord. 1996 CPAA INDUSTRY SUBMISSION 3.0 CPPA'S ACTIVITIES RELATED TO GLOBAL CLIMATE CHANGE 1993 ! Represented the industry on the UNCED, follow-up activities relating to the International Forest Principles Statement and the Conventions on Biodiversity and Global Climate Change. ! Participated in the monitoring of progress toward meeting the goals of the National Forest Accord and National Forest Strategy. ! With other partners, initiated a major project with the Canadian Standards Association to develop certification standards for sustainable forest management using an open, inclusive and consenusoriented process. These national standards will allow Canada's forest companies to register (certify) their sustainable forest management systems for defined forest areas. Due to the importance of the sustainable forest management system certification project, the CPPA's Forest Practices Task Force became the CPPA's Sustainable Forestry Certification Task Force. 3.2 CPPA'S GLOBAL CLIMATE CHANGE TASK FORCE In 1994, the CPPA formed a Global Climate Change Task Force. The Task Force is chaired by George Weyerhaeuser, Jr., President and CEO of Weyerhaeuser Canada Ltd., and includes representation from 10 forest companies. Several provincial forest industry associations (Ontario, Alberta, Quebec and B.C.) also have representatives as members so continuity is provided between national and provincial activities. The mandate of the CPPA's Global Climate Change Task Force is: "to review the issue of global climate change, recommend positions and actions to the Board, and to implement those actions on behalf of the Board of Directors. The issue will be approached on a forest industry basis." The following list summarizes the activities completed by the Task Force from 1994 through September 1996. 1996 CPAA INDUSTRY SUBMISSION 3.0 CPPA'S ACTIVITIES RELATED TO GLOBAL CLIMATE CHANGE 1994 ! Reviewed the Terms of Reference and prioritized actions. ! Reviewed the industry's commitment under the Canadian Industry Program on Energy Conservation (CIPEC) to ensure the understanding of the complexity of the forest sector especially as it relates to energy. ! Worked with various organizations to improve quality and validity of the pulp and paper submodel of CFS's Carbon Budget Model. ! Reviewed the CPPA's statement on Global Climate Change. 1995 ! Updated, published and distributed the CPPA's statement on Global Climate Change. ! Promoted the pulp and paper industry's position with federal and provincial government officials. ! Signed a letter of cooperation on May 10, 1995 with the Canadian Industry Program on Energy Conservation (CIPEC) to encourage CPPA member companies to develop and implement plans to reduce CO2 emissions from fossil fuels. ! Organized a peer review workshop for CFS's Carbon Budget Model. ! Promoted pulp and paper company participation in the Voluntary Challenge and Registry (VCR) through letters sent to companies and presentations at the board level. ! Formed an Interim Working Group on Energy. This group met several times in 1995 and undertook the following activities: ! ! ! ! ! 1994 and 1995 CPPA Energy Survey; Reviewed 1990 pulp and paper baseline data on energy; Conducted survey of additional energy required for pollution abatement; Helped draft the pulp and paper section of the CIPEC Annual Report; Developed a list of possible actions to improve energy efficiency. 1996 ! Provided energy data for the pulp and paper submodel of CFS's Carbon Budget Model. ! Prepared Press Release on the pulp and paper industry's reduction in fossil fuel consumption (April 11, 1996). 1996 CPAA INDUSTRY SUBMISSION 3.0 CPPA'S ACTIVITIES RELATED TO GLOBAL CLIMATE CHANGE ! Funded (IRS's Carbon Budget Model assessment of the impacts of: a) carbon storage and fluxes associated with the transition from "natural" to "managed" forests; and b) scenarios in which increased forest management is applied to increase the fibre supply. ! Ensured forest industry participation in various climate change related boards and committees, including the VCR Advisory Board, non-government advisory group to government for international climate change, Business Council on National Issues. ! Participated in workshop planning and promotion, and provided a presentation at the national workshop on "Forest Fire Activity in Canada" held in Edmonton, AB on Apr 2-4, 1996. ! Provided letter of support for urban forestry initiatives of Tree Plan Canada. ! Prepared a guideline document to assist companies with the preparation of GHG action plans and distributed the document to all pulp and paper companies to actively encourage their participation in VCR and CIPEC. ! Conducted workshop on "CO2 Sequestration: Principles for Forestry Offset Projects" in Vancouver, B.C. on September 25, 1996. ! Published article "Climate Change: A Global Challenge" in October 1996 issue of On Paper. Approximately 1500 copies of this newsletter were circulated to forest industry, government, customers and business contacts. ! Prepared and filed the CPPA's first pulp and paper industry submission with the VCR and IEI/CIPEC programs. 3.3 OTHER INDUSTRY AND RESEARCH ASSOCIATIONS ! CIPEC's Wood Products Task Force asked B.C.'s Council of Forest Industries (COFI) to coordinate an energy efficiency opportunities study on their behalf. The report "Energy Efficiency Opportunities in the Solid Wood Industries" was distributed to members of solid wood industries in July 1996. ! Forintek Canada Corp. developed a decision-support software tool called ATHENA which allows users to evaluate the full environmental impact (including CO2 emissions) of various combinations of building materials used in structural building assemblies. Numerous applications of the software have underscored the superior environmental benefits of using wood as a building TM material when compared with other materials. Reports on ATHENA and the lifecycle analysis project are available from Forintek. TM 1996 CPAA INDUSTRY SUBMISSION 4.0 PULP AND PAPER COMPANY INITIATIVES Most pulp and paper companies support Canada's voluntary approach to GHG emissions management. They are demonstrating their commitment with: 1) 3) registration in NRCan's Voluntary Challenge and Registry (VCR) and Industrial Energy Innovators (IEI)/Canadian Industry Program for Energy Conservation (CIPEC); preparation of GHG action plans which include their company's GHG emission inventory and management measures to reduce net emissions; and implementation of measures which reduce net GHG emissions. 4.1 PARTICIPATION IN VCR AND IEI (CIPEC) PROGRAMS 2) As of October 18, 1996, twenty four pulp and paper companies have signed on with both the VCR and the IEI program delivered by CIPEC. The companies, listed in Table 1, represent 78% of production and 78% of energy use of CPPA's total member companies. Using the CIPEC data corresponding to Canada's total pulp and paper industry, the registered companies represent 68% of the country's total pulp and paper production and 69% of total energy consumption. 1996 CPAA INDUSTRY SUBMISSION 4.0 PULP AND PAPER COMPANY INITIATIVES TABLE 1. PULP AND PAPER COMPANY REGISTRATION IN VCR AND IEI (CIPEC) PROGRAMS Company Registration in Voluntary Program VCR CIPEC Both Abitibi-Price Inc. X Avenor Inc. X Canadian Forest Products Ltd. X Cascades Paperboard International Inc. X Donahue Inc. X E.B. Eddy Forest Products Ltd. X Eurocan Pulp & Paper Co. X F.F. Soucy Inc. X Fletcher Challenge Canada Ltd. X Kruger Inc. X MacMillan Bloedel Ltd. X Maritime Products Ltd. X Noranda Forest Inc. X Repap Enterprises Inc. X St. Marys Paper Ltd. X Stora Forest Industries Ltd. X Tembec Inc X Weldwood of Canada Ltd. X Weyerhaeuser Canada Ltd. X Crestbrook Forest Industries Ltd. x Domtar Inc. x Kimberly-Clark Nova Scotia x Stone-Consolidated Corporation x Lake Utopia Paper x 1996 CPAA INDUSTRY SUBMISSION 4.0 PULP AND PAPER COMPANY INITIATIVES As shown in Table 2, twenty one companies have filed GHG action plans with the VCR and/or IEI (CIPEC) program as of October 18, 1996. The listed facilities account for 66% of production and 70% of energy use of the total CPPA membership. Using CIPEC's data, these companies represent 58% of Canada's total pulp and paper production and 62% of the industry's total energy consumption. 1996 CPAA INDUSTRY SUBMISSION 4.0 PULP AND PAPER COMPANY INITIATIVES TABLE 2. PULP AND PAPER COMPANIES WITH GHG ACTION PLANS Company Facilities Included in Action Plan (Province) Avenor Inc. Avenor Maritimes Inc. Pacific Forest Products Ltd. Gold River (B.C.); Dryden (Ont; Thunder Bay (Ont; Gatineau (Ont; Dalhousie (N.B) Canadian Forest Products Ltd. Howe Sound Pulp & Paper UT Howe Sound (B.C.); Prince George (B.C); Sawmills Crestbrook Forest Industries Ltd. Skookumchuck (B.C); Sawmills (B.C.) Domtar Inc. Windsor (PQ); Cornwall (Ont; St. Catharines (Ont; Trenton (Ont; Mississauga (Ont; Red Rock (Ont; Beauharnois (PQ); Lebel-sur-Quevillon (PQ) Donohue Inc. Clermont (PQ); Baie Comeau (PQ); St.Felicien (PQ); Donohue-Normick (PQ); Thorold (Ont E.B. Eddy Forest Products Ltd. Espanola (Ont; Ottawa (Ont: Hull (PQ); Annacis Island (B.C.); Sawmills (Ont) Eurocan Pulp & Paper Co. Kitimat (B.C.) F.F. Soucy Inc. Riviere-du-Loup PQ Fletcher Challenge Canada UT Crofton (B.C.); Elk Falls (B.C.); Mackenzie (B.C) Kimberly-Clark Nova Scotia Abercrombie Point (N.S.) Kruger Inc. Corner Brook (NFLD); Bromptonville (PQ); Trois-Rivieres (PQ); Corner Brook Pulp & Paper Ltd. Place Turcot (PQ) Lake Utopia Paper Lake Utopia (N.B.) MacMillan Bloedel Ltd. Port Alberni (B.C.); Powell River (B.C.); Sturgeon Falls (Ont; Lumber Divisions; Woodlands Divisions Maritime Paper Products Ltd. Dartmouth (N.S.) Noranda Forest Ltd. Fraser Inc. Northwood Pulp & Timber Ltd. James Maclaren Industries Inc. Plaster Rock (N.B) Edmunston (N.B.); La Sarre (PQ); Senneterre (PQ); Val D'Or (PQ); Thurso (PQ); Masson-Angers (PQ); Thorold (Ont) Cochrane (Ont; Prince George (B.C.); Houston (B.C.); Upper Fraser (B.C.) Repap Enterprises Inc. Repap New Brunswick (N.B.); Repap Manitoba (MAN); Repap British Columbia(B.C.) Stone-Consolidated Corporation La Baie (PQ); Shawinigan (PQ); Grand-Mere (PQ); Trois-Rivieres (PQ) Stora Forest Industries Ltd. Point Tupper (N.S.) Tembec Inc Temiscaming (PQ) Weldwood of Canada Ltd. Cariboo Pulp and Paper Co., Ltd. Quesnel (B.C.); Hinton (AB); Sawmills and Plywood mills (B.C.) Weyerhaeuser Canada Ltd. Kamloops (B.C.); Grande Prairie (AB); Prince Albert (SASK); OSB Mills (AB, Sawmills 1996 CPAA INDUSTRY SUBMISSION 4.0 PULP AND PAPER COMPANY INITIATIVES Both parent companies and individual facilities have filed action plans. In most cases, the decision to participate has been a corporate commitment and company action plans include be inventories and management measures relating to the majority of their facilities. The 1995 and 1996 action plans focus mainly on be reduction of GHG emissions related to energy use the largest source of emissions from pulp and paper operations. A few of the plans also include management measures for their wood products and forest management operations, which are much smaller energy users. 4.2 TRENDS IN ENERGY USE AND GHG EMISSIONS As energy consumption, in particular fossil fuel energy use, was identified as the dominant source of GHG emissions from pulp and paper operations, the indicators used to measure the industry's progress are: ! ! ! fossil fuel energy consumption; GHG emissions related to the combustion of fossil fuels; and energy consumption (total and by type). Table 3 summarizes the relevant data from the CPPA's Energy Monitoring Reports and CIPEC's Annual Report. Total fossil fuel consumption has decreased over the 1990-1995 period by 12% for CPPA:s member companies and by 19% for Canada's total pulp and paper industry. Consequently, the industry's GHG emissions from fossil fuel consumption have also declined. It was estimated for CPPA's member companies that GHG emissions were reduced from 13,720 kilotonnes (kt) CO2/yr in 1990 to 11,000 kt CO2/yr in 1995. This translates into an emissions decrease, relative to 1990, of 20% on an absolute basis and 28% on a per tonne of production basis. Energy consumption by type is an important third indicator as the pulp and paper industry accounts for approximately 33% of Canada's total industry ergy use. Over the period 1990-1995, the industry’s energy consumption increased by 4% while production of pulp and paper increased by 12%. The addition of several secondary effluent treatment systems increased the total demand for purchased electricity by 2%. However overall the industry's energy efficiency improved by 7% from 29.4 TeraJoules (TJ) per tonne in 1990 to 27.4 TJ/tonne in 1995. In terms of energy supply, the two biggest changes for the period were: ! ! Decrease in use of fossil fuel energy, from 30 to 26% of the energy mix; and Increase in use of biomass energy, from 50 to 56% of the mix. 1996 CPAA INDUSTRY SUBMISSION 4.0 PULP AND PAPER COMPANY INITIATIVES The remaining demand, close to 18%, is met with purchased electricity. The GHG intensity, kilograms CO2 per kiloWatthour (kg CO2/kWh), of purchased electricity varies from province to province. For example in 1994, Alberta's electricity, which is mainly fossil fuel-derived, had an average GHG intensity of 0.993 kg CO2/kWh. However B.C.'s electricity, which is predominantly hydro-generated had an average intensity of 0.040 kg CO2/kWh. (Source: NRCan, 1996). Industry's Energy Supply (1995) 1996 CPAA INDUSTRY SUBMISSION 4.0 PULP AND PAPER COMPANY INITIATIVES TABLE 3. INDUSTRY PRODUCTION AND ENERGY DATA Statistic Units CPPA Data CIPEC Data 1990 1000 t/yr 24,719 25,639 1995 1000 t/yr 27,610 31,526 Change % 12 23 1990 Total TJ/yr 726,325 748,494 1995 Total TJ/yr 757,045 848,507 Change % 4 13 1990 Biomass TJ/yr 369,172 367,914 1995 Biomass TJ/yr 423,092 463,119 Change % 14 26 1990 Fossil TJ/yr 221,090 243086 1995 Fossil TJ/yr 193,870 196083 Change % -12 -19 1990 Purch. Electricity TJ/yr 128,832 1995 Purch. Electricity TH/yr 132,495 Change % 3 Production Energy Energy Per Tonne 1996 CPAA INDUSTRY SUBMISSION 4.0 PULP AND PAPER COMPANY INITIATIVES 1990 Total GJ/t 29.4 29.2 1995 Total GJ/t 27.4 26.9 Change % -7 -8 1990 (Fossil) GJ/t 8.9 9.5 1995 (Fossil) GJ/t 7.1 6.2 Change % -21 -35 1990 (Fossil) kt CO2/yr 13,720 1995 (Fossil) kt CO2/yr 11,001 Change % -20 1990 (Fossil) kg CO2/t 555 1995 (Fossil) kg CO2/t 398 Change % -28 GHG (Fossil) GHG (Fossil) Per Tonne Note: The CPPA data are based on CPPA Energy Monitoring Reports received from 121 mills in 1990 and 108 mills in 1995. These data represent between 85 and 90% of the total production and energy consumption of the pulp and paper industry. The CIPEC data are compiled by the Canadian Industry Energy End-Use Analysis Centre and cover all of Canada's pulp and paper industry. However, it should be noted that CIPEC's total production data are consistently higher than the total production values cited in the CPPA's "Reference Tables". 1996 CPAA INDUSTRY SUBMISSION 4.0 PULP AND PAPER COMPANY INITIATIVES The issue of whether producers or users of electricity should account for the related GHG emissions has been the subject of considerable discussion within the industry. At present the CPPA considers GHG emissions associated with purchased electricity to be indirect emissions which are not included in the industry's inventory to avoid double counting. The Association, however, recognizes the importance of reducing electricity consumption for both environmental and economic reasons, and the CPPA's guidelines recommend that companies review and implement measures to reduce their use of purchased electricity. The industry trend of a decrease in GHG emissions (from fossil fuels) with respect to the 1990 base year is supported by the results reported in the company plans. ALI 1996 industry plans show a reduction in GHG emissions on a per unit of production basis for the 1990 to 1995 period. Most plans anticipate that companies will stabilize or reduce thaw GHG emissions on an absolute basis, tonnes CO2-equivalent/ yr, relative to 1990 levels. The key actions contributing to the reduction in GHG emissions are: ! ! ! Increased substitution of biomass for fossil fuels, Reduced energy demand through improved process and energy use efficiency, and Substitution of natural gas for Bunker C oil. 4.3 COMMON GHG MANAGEMENT MEASURES The company plans list the management measures, or actions, which have reduced their net GHG emissions to the atmosphere. The most frequently-cited measures are: a) Increased use of biomass fuels for energy (displacement of fossil fuels and purchased electricity) Examples: 1) power boiler modification (burn more hogfuel) - changes to boiler grate, instrumentation, feed water system, hogfuel feeding system, air pollution control 2) recovery boiler modification (burn more spent liquor) 3) fuel conditioning to facilitate dewatering of hogfuel and sludges b) Reduced energy demand through improved energy efficiency (less demand for fossil fuels and purchased electricity) 1996 CPAA INDUSTRY SUBMISSION 4.0 PULP AND PAPER COMPANY INITIATIVES Examples: c) Reduced energy demand through improved heat recovery (less demand for fossil fuels) Examples: d) 1) major mill modernization ($$$) 2) increased process efficiency (e.g. paper machines) 3) use of more efficient equipment (e.g. new burner, high efficiency motors, variable frequency drives adjustable speed fans, mill lighting, Powersmart, etc.) 4) turbogenerator upgrades (more self-generated power) 5) scheduled preventative maintenance (e.g. pumping systems) 6) improved lime mud dewatering 1) TMP refiner steam heat recovery 2) low grade heat recovery systems Use of less GHG intensive fossil fuel Examples: 1) substitution of Bunker C oil with natural gas 2) use of propane instead of gasoline or diesel-powered vehicles While the majority of implemented projects have improved energy efficiency and reduced energy demand on a project basis, several company plans states that some process changes (e.g. addition of secondary effluent treatment) have increased their operation's total energy demand. 4.4 COMPANY SUCCESS STORIES Company action plans include numerous success stories, some of which have already been accomplished and others which will be implemented by the year 2000. For a complete listing, readers are referred to individual company plans. Several highlights are quoted below: E.B. Eddy Forest Products Ltd. "The Eddy company through a combination of energy conservation, fuel switching, process change and carbon offset projects will stabilize GHG emissions at 1990 levels by the year 2000... The Espanola pulp mill has a goal to be self sufficient in electrical energy and the mill has already achieved 85% self sufficiency. It is expected that the mill will achieve the self sufficiency goal ... by investing in a new bark fired power boiler." Fletcher Challenge Canada Ltd. "FCC's GHG emissions' profile shows a 45% reduction over the period 1990 to 2000 from 997 kilotonnes CO2-equivalent/yr in 1990 to 549 kilotonnes CO2-equivalent/yr in 2000. The large drop in GHG emissions over the period 1990 - 2000 is attributed to two changes: (1) major reduction in fossil fuel use that resulted from Crofton's extensive mill modernization ($296 million); and (2) fuel switching from Bunker C oil to natural gas." 1996 CPAA INDUSTRY SUBMISSION 4.0 PULP AND PAPER COMPANY INITIATIVES Kruger Inc. "Kruger Inc. aims to reduce its greenhouse gas emissions by: being energy efficient in all its processes, while remaining competitive; displacing the most fossil fuel possible by making a greater use of hogged fuel (bark, sludges, wood residues); using (when possible) cleaner fuels; obtaining its fibre from sustainable forest operations. In doing so, Kruger will achieve the Canadian goal of having its greenhouse gas emission levels at 1990 levels in the year 2000 ... Over the last 6 years (1990-1995), Kruger Inc. has been able to stabilize CO2 emissions to a level lower than that of the base year (1990)." Noranda Forest Inc. "Through many energy efficiency projects and replacing fossil fuel by biomass, 1995 data from NFI Canadian manufacturing facilities show that GHG emissions are already stabilized at 1990 level. With the addition of the cogeneration plant at the Edmunston mill ... the GHG emissions will decrease by almost 14% compared to 1990 emissions." Weldwood of Canada Ltd. "Our two pulp mills consume more than 100 times as much fossil fuel as all of our plywood and sawmills combined ... Since 1990, our fossil fuel (natural gas) consumption has dropped by 22%. In the same period, our pulp production has increased 38%. The two mill have reduced their equivalent CO2 emissions per tonne of product by 43%." On June 27, 1996, six pulp and paper companies Avenor Inc., Corner Brook Pulp and Paper (Kruger Inc.), Donohue Inc., Howe Sound Pulp and Paper, (Canadian Forest Products Ltd.), James Maclaren Industries (Noranda Forest Inc.), Weyerhaeuser Canada Ltd., received awards for industrial energy innovation from Anne McLellan, federal Minister of Natural Resources. The companies were recognized for their energy efficiency programs which will help Canada meet its climate change commitments. On October 23, 1996, Lise Lachapelle, President and CEO of the CPPA, was presented with an award from NRCan for the Association's demonstration of leaderShip with the promotion of company participation in the VCR program.. On this same day, six pulp and paper companies, Avenor Inc., E.B. Eddy Forest Products Ltd., Fletcher Challenge Canada Ltd., MacMillan Bloedel Ltd., Stora Forest Industries Ltd., Weyerhaeuser Canada Ltd., received awards from NRCan for their preparation of systematic GHG action plans which showed strong commitment and leadership. 1996 CPPA INDUSTRY SUBMISSION 5.0 FUTURE PLANS OF CPPA'S GLOBAL CLIMATE CHANGE TASK FORCE Over the next year, the CPPA Task Force intends to: ! Represent the interests of Canada's pulp and paper industry in national and international discussions of the climate change/greenhouse gas issue. In particular: to provide input on the establishment of Canada's emission targets for the post! 2000 period; to encourage the adoption of sustainable forest management practices within and ! outside of Canada; to promote the sustainable use of biomass for energy and the substitution of fossil ! fuel energy with biomass energy; to promote the use of wood products as environmentally-friendly building ! materials of low GHG intensity. ! Continue to encourage forest companies to participate in the VCR and IEI/CIPEC voluntary emission reduction programs. In particular, the Task Force plans to recommend that companies prepare comprehensive GHG action plans, implement measures to reduce GHG emissions and report their progress to the VCR and IEI/CIPEC offices. ! Prepare and distribute an update of the CPPA's 1996 Guidelines for Preparation of GHG Action Plans. ! Support further work on CFS's Carbon Budget Model to better understand the roles of forest management in relation to the mitigation of GHG emissions. ! Discuss opportunities for forest management and other activities of the pulp and paper industry to: (1) (2) balance the carbon budget; and increase CO2 sequestration. ! Consolidate the CPPA's energy information into a common database. ! Provide the VCR and the IEI/CIPEC offices with a 1997 update of the Association's activities related to the climate change and GHG issues. 1996 CPPA INDUSTRY SUBMISSION APPENDIX A A STATEMENT BY THE PULP AND PAPER INDUSTRY ENVIRONMENT Prepared and issued by: GLOBAL CLIMATE CHANGE Canadian Pulp and Paper Association Sun Life Building, 19th Floor 1155 Metcalfe Street Montreal (Quebec) Canada H3B 4T6 Telephone: (514) 866-6621 Fax: (514) 866-3035 IN SUMMARY The pulp and paper industry of Canada supports: International efforts to understand all sources and sinks of Greenhouse Gases (GHGs), ! International efforts to address global climate change, ! Development of a comprehensive, effective strategy that incorporates ! Voluntary Programs, Energy conservation, Use of renewable biomass fuels, Sound stewardship of the renewable forest resource including intensive forestry, Efficient use of harvested wood, Long-term use of paper and solid wood products. The pulp and paper industry also attaches high priority to reducing the existing scientific uncertainties associated with global climate change. VIEWPOINT Increases in atmospheric concentrations of greenhouse gases above pre-industrial levels are welldocumented. Various human activities, which are compounded by population growth, are the sources of these increases. Temperatures appear to be increasing at the earth's surface. While some scientists suggest that this is caused by increased atmospheric greenhouse gas (GHG) concentrations, others point out that the observed temperature increase is still within the limits of natural variation. Projections on the 1996 CPPA INDUSTRY SUBMISSION APPENDIX A extent, timing and pattern of climate change due to human activities cannot yet be made with much confidence because they depend on the estimation of concentrations of GHGs and aerosols in the atmosphere, the emission rate of these gases and the response of the climate system. Global climate change is an international issue which requires co-operation among nations to achieve solutions. Unilateral actions by Canada, which emits 2% of the world's carbon dioxide, (CO2) would be inadequate. The cumulative benefit of wider, multi-national efforts can make a short-term difference in helping to reverse a warming trend. ! ! ! The pulp and paper industry supports: International scientific and political processes, now in progress, which have led to the United Nations Framework Convention on Climate Change (FCCC), Co-operative action to address Canada's commitment to: Stabilization of GHG emission through energy conservation including cogeneration; Increased use of biomass fuels, The enhancement of the forest carbon sink. Actions to reduce the risk of damage to the environment, including forest resources. The pulp and paper industry believes that both natural and human-induced global climate change could have important consequences for the natural environment and for society. Overall, the forest products industry--its fibre sources, manufacturing processes, energy supply, and products in use and recycle/reuse--can play a positive role in stabilizing GHG emissions. The Canadian forest products industry is a large and important economic sector that employs directly and indirectly about one million Canadians. The forest industry is also an emitter of greenhouse gases, primarily in the form of CO2. Of the major Canadian industrial sectors, the pulp and paper industry is the largest consumer of energy. Pulp and paper manufacturing emits 10% of the country's CO2, more than 75% of which comes from the use of biomass fuels. These fuels are a renewable by-product of forest industry operations. Biomass fuel continues to provide an increasing portion of the industry's energy requirements. But unlike fossil fuels, CO2 emissions from biomass fuel do not have a net GHG contribution unless they occur when harvested lands are not regenerated or forest lands are permanently converted to other uses ! ! ! ! The pulp and paper industry supports: Limited net CO2 emissions, Expanding carbon sinks; Reducing scientific uncertainties, Developing means to adapt to change. 1996 CPPA INDUSTRY SUBMISSION APPENDIX A REDUCING EMISSIONS A COMPREHENSIVE CONSERVATION STRATEGY Strategies to limit or reduce greenhouse gas emissions will only be successful if they are implemented on an international scale. Emission limiting targets and strategies should be based on a comprehensive evaluation of potential impacts and risks developed using a life cycle approach. Programs to control increases in GHG concentrations stemming from human activities must be comprehensive and must consider the full biochemical cycles (carbon and nitrogen) all sources, stores and sinks of GHGs. Carbon dioxide emissions from renewable biomass fuels should be accounted for separately from fossil fuel emissions: the CO2 emitted Rum the use of hotness fuels is "recycled" as it is absorbed by new forest growth. However, efficiencies should be pursued in use, regardless of source of supply (biomass, fossil fuel, hydroelectricity, etc.) The pulp and paper industry supports voluntary actions as an important tool to achieve Canadian objectives. Pulp and paper companies will participate in the National Voluntary Challenge and Registry Program. In addition, the pulp and paper industry reaffirms its commitment to the voluntary Canadian Industry Program for Energy Conservation (CIPEC). This program aims to improve manufacturing processes that further reduce fossil fuel usage through improved energy efficiency, cogeneration and conversion to biomass fuels. International joint implementation of C)2 stabilization projects should be promoted. Industry does not support a carbon tax as a means of reducing greenhouse gas emissions. A major concern with imposing environmental taxes is the potential impact on the industry's competitive position in world-wide trade. In collaboration with governments, the industry will promote research, development and technology transfer efforts to improve energy and process efficiencies. Research coordination and co-operation are needed at the international level. CARBON SINKS AND RESERVOIRS FORESTS AND FOREST PRODUCTS Forests and forest products are sinks and storehouses of carbon. Increasing the amount of CO2 sequestered and stored by forests, and extending the time carbon is stored in forest products, helps reduce the net carbon emission rate to the atmosphere. 1996 CPPA INDUSTRY SUBMISSION APPENDIX A Vigorously-growing, healthy forests absorb large-volumes of CO2 through photosynthesis. Sound forest management ensures healthy forests. Rapidly regenerating harvested sites, increasing forest growth through intensive silviculture, improving forest protection to reduce losses from fire, insects, disease and soil erosion, along with planting trees on marginal agricultural lands will all increase annual growth rates (and sequestering carbon) and decrease carbon releases to the atmosphere. Government and industry must develop and promote forest management and silvicultural practices that will maintain or enhance the carbon sink in managed forest systems. Figure A1 shows that the majority of disturbances in Canada's forests (404 million ha) over a 70 year period have resulted from natural causes such as fires and insect infestations. Figure A1: Average area of Canadian forest annually distributed by forest fires, insect-induced stand mortality and harvesting (1920-1989) Area Disturbed (million ha) 1996 CPPA INDUSTRY SUBMISSION APPENDIX A Intensifying forest protection to combat fire, disease and insect infestation will help ensure a vigorously growing forest Canadian forest-fire control technology is world class and has been highlysuccessful in reducing fire damage to commercial forests, which represent less than one-half of Canada's total forested area. Canadian fire-fighting technology is also a valuable international resource used to protect imams around the world. Canada's forest sector has been a world leader in developing an integrated approach to forest pest management. This approach balances prevention, early detection and quick suppression. Paper recycling and solid wood products used in permanent structures provide long-term storage of wood carbon. The Canadian pulp and paper industry continues its substantial commitment to, and investment in, facilities to use recovered paper. In five years beginning in 1990, the industry more than doubled its use of recovered paper, reaching nearly four million tonnes annually in 1994. Results include: Reduced paper in landfills, ! Creation of a larger store of carbon in use. ! The urban forests in Canadian cities and towns provide significant benefits. By protecting homes and other buildings from extremes of heat and cold, the urban forest reduces human energy use at the same time it reduces air pollution. Expanding the urban forest and protecting these trees also increases the carbon sink. 1996 CPPA INDUSTRY SUBMISSION APPENDIX A REDUCING UNCERTAINTIES Although there is substantial agreement among scientists on many aspects of climate change, important unknowns make predictions uncertain. Serious deficits exist in climatic data. Furthermore, general atmospheric circulation models currently used to predict climate change need continued improvement. Major initiatives need support. They include co-operative and co-ordinated international research programs conducted by the World Climate Research Programme (WCRP), the International Geosphere Biosphere Programme (IGBP) and the Global Climate Observing System (GCOS). More research is needed on the emission rates of GHGs and their sources and sinks. Environmental monitoring for possible effects is also important. Decisions about ways to mitigate and to adapt to climate change will, only be as good as the information upon which they are based. Additional copies of this document are available, in French or in English, from: Canadian Pulp and Paper Association Sun Life Building, 19th Floor 1155 Metcalfe Street Montreal (Quebec) Canada H3B 4T6 Telephone: (514) 866-6621 Fax: (514) 866-3035. September 1995 1996 CPPA INDUSTRY SUBMISSION APPENDIX B CANADIAN PULP AND PAPER ASSOCIATION ASSOCIATION CANADIENNE DES PATES ET PAPIERS PRESS RELEASE CANADIAN PULP AND PAPER COMPANIES REDUCE FOSSIL FUEL USE BY 20% AS PART OF CLIMATE CHANGE EFFORT Through a concerted five-year effort, today's industry relies much less on energy sources that contribute to global warming. Montreal, April 11, 1996 -- Canada's pulp and paper industry has reduced its use of non-renewable fossil fuel by 20% and dropped total energy consumption by 5% per tonne of production since 1990, the remit of a concerted industry effort to reduce carbon dioxide (CO2) emissions responsible for global 1 warming . The numbers released by the Canadian Pulp & Paper Association are noteworthy in light of the fact that Canada's pulp and paper production increased by 20 percent over the same period. Changes in energy usage were made possible by a $20 billion upgrade program to increase operational and environmental performance, including almost $5 billion for strictly environmental expenditures, Today, industry progress an CO2 reduction means that ! 53% of energy used to manufacture pulp and paper comes Run renewable bio-energy sources such as tree and bark by-products, sawdust and organic waste, which do not add to the 1,2 atmospheric burden of carbon dioxide . Another 20% of energy used comes from electricity. Fossil fuels provide only a quarter of the industry's total energy use; ! In Canada, 75% of CO2 emissions generated by pulp and paper manufacturing came from bioenergy sources; ! the industries recycling efforts have helped reduce the amount of paper going to landfills and cut down on carbon dioxide and methane emissions resulting from decomposing old paper. Since 1989, the industry has invested $1.5 billion to increase the recycling capacity of more than 60 Canadian laws and to doubt their use of recycled paper to 4 million tomes in 1995; ! industry investments ta forest management have more than doubled over the last six years and now total close to $1 billion annually to improve the growth and protection of forests. This will improve Canadian forests' ability to absorb and store carbon, rather than allowing it to concentrate in the atmosphere. 1 2 1994-1995 Annual Report, CIPEC (Canadian Industry Program for Energy Conservation) The international community has recognized that CO2 emissions from renewable biomass fuels or by-products do not add to the atmospheric burden of CO2 on a life-cycle basis. IPCC (Intergovernmental Panel on Climate Change. 1996 CPPA INDUSTRY SUBMISSION APPENDIX B Industry task force on climate change Global climate change could affect Canada's forests in other ways. The forest ecosystem and the process of photosynthesis and tree respiration, which depend on the earth's climate, could be affected with forests becoming more vulnerable to damage by insects, disease and fire. Species habitat patterns could also change. Timber production could increase or decrease, depending on the availability of water and nutrients, and on the forests' capacity to adapt to an increased rate of change. In order in play a role in stabilizing greenhouse gases, the Canadian Pulp and Paper Association set up, in 1990, a task force on climate change, The task force's mission was to work with member companies to establish industry policy and promote voluntary action to limit greenhouse gas emissions and increase the capacity of Canada's forests to act as carbon sinks. The task force has implemented a broad strategy that includes energy conservation, a shift to biomass and renewable energy, and an emphasis on continual improvement in forest management. Their goal for the end of the decade is to increase total energy efficiency per tonne by a further 1 per cent annually. The chairman of the industry task force is encouraged by the industry's progress so far. George Weyerhaeuser Jr., President & CEO of Weyerhaeuser Canada Ltd., says: "We're an industry that's renewable, recyclable and largely powered by the sun. We're a good fit with CO2 reduction objectives and we'll continue making the changes we've identified." Canada emits 2% of the world's carbon dioxide. In 1995, the pulp and paper industry was responsible for 10% of Canada's CO2 emissions, most of which--75%--were from renewable bio-energy. Sources: Esther Szynkarsky Canadian Pulp and Paper Association Tel.: (514) 866-6621 #206 George Weyerhaeuser, Jr. Weyerhaeuser Canada Ltd. Tel.: (604) 691-2403 Please note: The Chief Executive Officers of CPPA member companies actively across Canada are available for interviews. Do not hesitate to contact us, should you desire to speak with them. Canada’s Forest Sustainability Criteria and Associated Elements Soil and water conservation Global ecological cycles Multiple benefits Society’s responsibility Criteria Biodiversity Ecosystem condition Elements Ecosystem diversity Disturbances and stress Soil and water quality Global carbon budget Productive capacity Aboriginal rights Species diversity Ecosystem resilience Conservation practices Forest land conservation Competitiveness Forest communities Carbon dioxide storage Contribution to economy Effective decision making Policy factors Non-timber values Informed decision making Genetic diversity Biomass Hydrological factors Canadian Forest Sector Carbon Flow CO2 Forest Management Forest Biomass Ecosystem Natural Disturbance CO2 Harvest 4% Biomass/ Firewood Fuel Energy 17% 79% CO2 from BioEnergy Sawmill and other solid wood processing Wood Residues Pulp & Paper Mill Recycling CO2 Solid Wood Paper Products CO2 CH4 CO2 CH4 CO2 from BioEnergy Industry's Energy Supply (1985) Purchased Electricty 18% Biomass 56% Fossil Fuel 26% Average area of Canadian forest annually disturbed by forest fires, insect-induced stand mortality and harvesting (1920-1989) Area disturbed (million ha) 6 5 4 3 2 1 0 1922 1927 1932 1937 1942 1947 1952 1957 1962 Wildfire Insects Harvest Total 1967 1972 1977 1982 1987