EU legislative proposals open new horizons for the paper industry
The EU Commission announced last month a package of legislative proposals aiming to restore Europe’s industrial competitiveness while staying the course on its ambitious climate objectives. This new regulatory package is particularly fit for the pulp and paper industry. The bioeconomy has notably been identified in the ‘Clean Industrial Deal’ as one of a few sectors to play a strategic role in Europe’s industry green transition, along with automotive and transport, steel and other metals, and chemicals.
The recent proposals are also further proof that circularity and forest-based materials are increasingly being looked at by EU legislators from the perspective of substituting fossil resources, for which the EU is dependent on external providers.
Another point of satisfaction for the industry is the EU’s Action Plan for Affordable Energy which promises to help solve the issue of energy prices for Europe’s manufacturers, some of the highest globally, through the development of clean energy and energy grids.
The Clean Industrial Deal also offers a recognition of the scale of the challenge for the smallest EU industrial actors. If the EU Commission’s plans can be enacted, SMEs and mid-caps will be able to save billions of euros on regulatory compliance costs without lowering ambition in reducing industrial emissions. But it was notable that the EU Deforestation Regulation was not included in the part of the legislative package aiming to cut compliance costs for businesses.
Another regulatory area still remains unpredictable as the new texts do not include any indication of how differences in regulation for CO2 emissions from non-EU country producers would be treated under this updated legislative framework for Europe’s manufacturers.
Source: ICFPA Quarterly Update – March 2025
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