Source: EURLEX
Language: en
Format: md

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 5.10.1999
COM(1999) 457 final

COMMUNICATION FROM THE COMMISSION

TO THE COUNCIL, THE EUROPEAN PARLIAMENT,

THE ECONOMIC AND SOCIAL COMMITTEE

AND THE COMMITTEE OF THE REGIONS

##### THE STATE OF THE COMPETITIVENESS OF THE EU FOREST-BASED AND RELATED INDUSTRIES

##### **THE STATE OF THE COMPETITIVENESS OF** **THE EU FOREST-BASED AND RELATED INDUSTRIES** : Communication to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions

TABLE OF CONTENTS

Page

0. INTRODUCTION 1

1. KEY FEATURES AND COMPETITIVENESS FACTORS OF THE
FOREST-BASED AND RELATED INDUSTRIES (FB-IND) 2

1.1 KEY FEATURES 2

1.2 COMPETITIVENESS FACTORS OF THE EU FB-IND 5

      - TANGIBLE FACTORS 5

      - INTANGIBLE FACTORS 7

2. THE MAIN CHALLENGES AND AREAS OF ACTION FOR THE EU

FOREST- BASED AND RELATED INDUSTRIES 7

2.1 THE GROWING IMPACT OF GLOBALISATION 8

2.2 THE ENLARGEMENT OF THE EU 9

2.3 AN INCREASED SENSITWITY TOWARDS ENVmONMENT 9

AND ENERGY

2.4 THE ACCELERATED TECHNOLOGICAL EVOLUTION AND

ITS IMPLICATIONS ON THE HUMAN RESOURCES 11

      - TECHNOLOGY, INNOVATION AND R & T D

      - DEVELOPMENT OF HUMAN RESOURCES

2.5 THE EVOLVING INTERNATIONAL AND EU REGULATORY

AND ECONOMIC FRAMEWORK 13

2.6 THE GROWING IMPORTANCE OF COMMUNICATING

A GOOD IMAGE TO SOCIETY 14

3. CONCLUSIONS 15

Annex:
Summary of the results of the 'SWOT' evaluation carried out in collaboration within
dependent experts and representatives of the FB-IND
References and Sources

#### **_Ux_**

**0. INTRODUCTION**

The adhesion of Austria, Finland and Sweden to the European Union (EU) in 1995 considerably
affected the structure and the importance of the EU Forest Based and Related Industries (FBIND), which is now one of the largest industrial sectors in the EU. EU exploitable forest
resources doubled, pulp production tripled, paper and board production increased by 50%,
mechanical woodworking output went up by 30% and the printing and publishing industries
expanded by 10-15%. Nonetheless, the FB-IND activities are not concentrated in certain areas of
the European Union but are present in all the EU Member States.

While these industries generally maintain a good competitive position in relation to their main
international trading partners/competitors, they increasingly face important challenges in
different areas (amongst others, globalisation of markets and technologies, environmental
sensitivity, competition from other materials and media). Unless these challenges are dealt with
successfully, the medium to long-term future of the EU FB-IND might look less positive.

The socio-economic importance of the EU FB-IND and the presence of these competitive
challenges have prompted, for the first time in 15 years, a rather comprehensive analysis by the
Commission Services and the preparation of this communication. It involved a wide exchange of
views with independent experts, the main representatives of the EU FB-IND and other
stakeholders.

The FB-IND regroup a diverse range of activities, but their common and renewable raw material,
wood, as well as their close inter-sectoral links through semi-finished and finished products,
wood residues and the recycling and recovery activities, justify a common approach for the EU
FB-IND. This communication focuses on the common features shared by these sectors, thus
leaving the detailed and specific analyses outside its scope. Equally, forest and forestry-related
issues are not covered since they were included in the recent Communication on a Forestry
strategy for the European Union. [1] The Council of the EU has acknowledged the benefits of such
a strategy through the Council Resolution of 15 December 1998 on a Forestry Strategy for the
European Union (OJ C56 of 26.2.1999) and has emphasized the importance of the multifuntional
role of forests and SFM based on their social, economic, environmental, ecological and cultural
functions for the development of society and, in particular rural areas.

The objective of this communication is to propose a set of actions to be undertaken and/or
pursued by the main stakeholders of these industries, in order to strengthen the global and
sustainable competitiveness of FB-IND in the EU (ref. Articles 2, 6, 157 and 174 of the EC
Treaty). It follows the integration process launched at the Cardiff European Council, as well as
the conclusions of the last Industry Council of 29 April 1999, which promote an integrated
approach to sustainable development, taking into account the objectives of environmental
protection, competitive economic development and social development. For this purpose, the
communication:

- describes the key socio-economic features of these industries in the EU (Chapter 1.1);

- analyses the main factors (tangible and intangible) affecting their competitiveness in relation
to their principal international competitors (Chapter 1.2 and Annex 1);

- identifies the key challenges for the EU FB-IND and the areas of actions which could
contribute to their sustainable development taking equally into account their economic
competitiveness, as well as environment, employment and social welfare considerations
(Chapter 2).

This communication, in the preparation of which the main elements were discussed in a
Conference open to all stakeholders that took place in Helsinki on July 1999, has to be
considered as the first step towards an open dialogue. This dialogue should be pursued in the
framework of the Forum proposed in Chapter 3, in order to deepen the analysis of some of the
less well-known issues, to define the priorities for the proposed or newly identified actions and
to follow-up their implementation.

##### **lb**

###### `1. KEY FEATURES AND COMPETITIVENESS FACTORS OF THE EU FB-IND`

##### `1.1 KEY FEATURES`

SCOPE AND USES

The EU FB-IND comprise five main sectors: woodworking; pulp, paper & board production;
paper and board converting and packaging; printing; and publishing. They are interlinked
through their use of common raw materials and the employment of similar product recovery and
recycling processes.

Woodworking industries supply basic products such as sawn goods, wood-based panels and
builders' carpentry for construction, internal decoration and furniture. Wooden packaging is used
for transport, while in many cases sports equipment, musical instruments and artistic products
have wood as their raw material.

The pulp, paper and board manufacturing and converting industries form another important
sector meeting demand from individuals and society. Paper is a necessity for almost all forms of
activity, such as in communications and advertising (newspapers, magazines, directories),
education (books, writing paper, etc.), business (security papers, forms, labels, copy paper),
commerce (bank notes, cheques, postage stamps), culture (photography, art-work), hygiene
(kitchen rolls, napkins, diapers), medicine (dressings, swabs), food and beverage packaging
(coffee filters, paper crockery & cutlery, liquid carton board, folding box-board), transport and
protection (tachographs, bags, sacks, paperboard packaging).

The printing and publishing industries are end-users of paper & board industries' products. They
are among the largest consumers of paper products and serve all sectors of the economy
including public authorities, financial services, distributive services and manufacturing industry.
Their products range from newspapers, magazines, books, catalogues and packaging to a variety
of other products, e.g. postcards, calendars, maps, banknotes and security printing products,
programmes and tickets. Printing and publishing are therefore relevant from both goods and
services perspectives.

MAIN SOCIO-ECONOMIC PARAMETERS

The EU FB-IND constitutes one of the largest industrial sectors in the EU. In 1997, it had a
production value of 319 Billion Euro (B€), a value added of 112 B€ and directly employed 2,4
million people. It represented 10% of production, added value and employment of the EU
manufacturing industries. [2 ]

In 1998, according to EU statistics (see table overleaf), the EU FB-IND accounted for a total of
around 63.000 companies [3], ranging from a considerable number of SMEs to a small number of
large global corporations. The biggest companies of the EU/FB-IND are to be found in the pulp,
paper & board and publishing sectors in which there is the greatest concentration of activity. In
these sectors, the 20 largest companies account for 60% of the total turnover. It is worth
mentioning that tens of thousands of SMEs with fewer than 20 employees in the FB-IND are not
included in the above figures, leading to a significant underestimation of the socio-economic
importance of the sector in the EU. The EU FB-IND is, furthermore, supplied by 12 million
private EU forest owners.

The FB-IND are not only found in certain areas of the European Union but are present
throughout the Member States. FB-IND are not only present in high population density areas but
also are often situated in remote areas, close to their raw material source, contributing to
maintaining economic activity, employment and infrastructure, as well as sustaining living
conditions in these remote areas of the EU. Their presence in these areas of Europe adds to the
overall economic convergence of all regions and to social cohesion.

The printing and publishing industries, uphold also a centuries-old function, that of enabling art
and literature, politics and free expression to exist and expand, which is at the centre of
European culture and democracy: they are important users of paper and board and they
participate in the recycling chain, but they also have issues of specific concern (competition with
electronic media, content legislation etc.).

The EU FB-IND is also the focus of, and is mutually interdependent on, a Forest Industries
Cluster (FIC). The Cluster industries provide goods and services to, or purchase them from, the
EU FB-IND. Additionally, the quality of the Cluster industries influences the competitiveness of
the EU FB-IND. The Cluster industries cover sector-specific machinery & equipment, process
control systems, chemicals, furniture and wooden construction elements for building purposes,
and consulting dedicated to serve the FB-IND. The production value of the FIC is estimated as
being up to 450 B€.

**Socio-economic impact of Forest-based and Related Industries in the** EU **in 1998**

**Value added**
**at factory**
**cost**

Million

EURO

18.760,7

16.066,2

18.070,0

26.429,8

32.258,6

**111.585,3**

23.731,3

24.841,8

**160.158,3**

**%**

19

17

18

19

27

**100**

**Number of**

**persons**
**employed**

526.679

217.175

381.582

626.098

627.409

**2.378.943**

675.793

617.149

**3.671.885**

**Number of**
**enterprises**
**(1995)**

29.113

930

5.009

20.606

7.488

**63.146**

19.409

6.761

**89.316**

Mechanical

woodworking
excl. furniture

Pulp, paper and
board

manufacturing
Paper and board
converting
Printing

Publishing

**Total FB-IND**

Furniture

Machinery,
equipment,
chemical

**Total FB-IND**

**cluster**

**Production**

**value**

Million

EURO

60.158,6

55.223,5

55.738,4

61.184,1

86.362,4

**318.667,0**

68.598,6

64.624,0

**451.889,6**

Source: Eurostat

Enterprises with less than 20 employees not included

TRADE

Out of the total EU production of 319 B€ of FB-IND products, only 53 B€ (16%) is traded
between the Member States and 25 B€ (7%) is exported outside the EU. The EU FB-IND is
therefore predominantly a domestic industry.

The EU's main trading partners in order of importance are North America (especially the USA),
the Central and Eastern European countries (CEEC) and Asia. Extra-EU trade has in general
been positive since 1995, with the exception of North America. In 1997, EU product imports
from North America (US, Canada) amounted to 7,5 B€ involving a wide range of products
without any specific focus. EU exports to these markets (mostly paper and board and printed
products) were worth 3,2 B€, leaving a trade deficit of 4,3 B€. From Asia and the CEEC, the EU
imports mostly mechanical woodworking industry products such as sawn wood, round wood and

panels and it exports mostly paper and board products. The trade balance with Asia has been
positive (+3,7 B€) until 1997, and trade with the CEEC has been in balance.

Of the FB-IND intra-EU trade, paper and board and graphics products represent approximately
70% and mechanical woodworking products 20%.

The EU is highly dependent on the imports of plywood, so called sawn hardwood, and pulp,
while the extra EU-markets are particularly important for the export of certain printing paper
grades and sack paper. These imports represent 30-60% of EU consumption levels, depending on
the product, and the exports represent similar percentages of EU production levels. Since 1995,
the trade balance has been continually negative in mechanical woodworking products and pulp,
but positive in paper and board and graphic products.

GROWTH
In general, the FB-IND growth is steady and close to the average growth rates for industry. [5 ]

Between 1989 and 1996, the EU FB-IND grew annually by 2,2% compared to the EU total
manufacturing industries' growth of 2,4%. However, the printing and publishing sectors have
above average growth rates, while the wood and paper sectors remain slightly under them.

The demand for woodworking industry products is driven primarily by the construction sector.
Other significant demand sectors for woodworking industry products are the furniture and
packaging sectors, whose requirements are related to private consumption.

In the paper and board sector the demand for packaging grades is related to GDP growth rates.
The demand for graphic and household paper is on the other hand related to advertising and
private consumption. The printing and publishing sectors for their part are to a large extent
dependent on the demand for advertising and promotional material.

Despite its steady growth, the EU FB-IND is characterised by high cyclically and variable
earnings, being subject to factors such as over-capacity, regional imbalances outside the EU, and
speculative forces.

FOREST RESOURCES AND ENVIRONMENT

Together, the forest and the products from forest-based industries form an eco-cycle not yet fully
integrated. The sun drives this eco-cycle: with water, nutrients and carbon dioxide,
photosynthesis transforms solar energy into wood fibers in growing trees. The cyclical nature of
this process means that the forest is a renewable source of raw material that provides wood fibres
for the production of timber products, pulp and paper, as well as energy. In harvesting wood and
regenerating forests, the FB-IND stimulate the growth of forests and, by producing durable wood
based products which act as carbon stores (C0 2 being essential for the growth of wood), they
reinforce this cycle. Forests and their products have the capacity to store vast amounts of carbon
(1 ton of C0 2 in 1 cubic metre of timber) [6], and thus play a significant role in the global carbon
balance. Forestry offers a large potential for the mitigation of green house gases (GHG) at
modest cost, low risk and with a number of environmental and socio-economic benefits.

Although a number of actors of the EU FB-IND participate in a significant way in the recovery
activities of their products, all actors are encouraged to improve their participation. Recovery
starts from the beginning of the industrial process, debarking, through the different process
stages where wood residues, wooden chips, black liquor, and other leftovers from each
processing stage are either reinserted into the production process or used in energy generation.
At later stages of secondary processing e.g. printing & publishing, carpentry and joinery or at the
retail business and final consumer level, the recovery and recycling of FB-IND products is
organised at industry and household levels, having developed rather competitive recovery and
recycling actions, which have steadily increased the rate of recovery of used paper and wood
since the 1970s. Today, paper and board have high recovery rates with a recorded 36 million
tons for 1998 in the EU. The collection rate of recovered paper is close to 50% in Europe, with

significant variations between Member States and local areas, compared with 25% in the USA
and Asia. [7 ]

Incineration of FB-IND products can be combined with techniques such as co-generation to
produce energy from renewable resources. Through more efficient production processes,
preventive strategies, cleaner production technologies and processes throughout the product lifecycle, industry and economic operators can play a major role in reducing impacts on resourse use
and environment. Those techniques have also the advantage of emitting into the atmosphere only
the C0 2 once trapped in the product. Thus, it does not generate a net increase in the atmospheric
C0 2 balance.

**1.2 COMPETITIVENESS FACTORS OF THE EU FB-IND**

Various localised factors such as European climatic conditions, often difficult working
conditions, as well as the EU's high living standards, have contributed to the present relatively
high production costs under which the EU FB-IND operate. They also helped to account for the
high level of knowledge, know-how and productivity that has enabled the FB-IND to find
compensation for high input costs and to become world leaders in value added and quality
products.

The competitiveness of the EU FB-IND, as for any other industry, is a combination of several
factors. In this communication, the competitiveness factors have been categorised as either
tangible or intangible. Tangible factors comprise both the various input cost factors, such as raw
materials and energy, and the technology-based factors that are connected with productivity,
such as machinery capacities, control systems and information and communications technologies
(ICT). Intangible factors are all factors contributing to improving quality and performance such
as research & development, innovation, education and skills, on the one hand, and the legislative
and administrative (institutional) framework on the other hand. Changing the intangible factors
influences the tangible ones.

In order to learn more about the factors affecting the competitiveness of the EU FB-IND, several
'SWOT'analyses have been carried out by independent consultants in cooperation with some of
the FB-IND sectors. These studies provided a comprehensive overview of the sectors' strong and
weak points, opportunities offered and threats to be faced. Their results are summarised in a
table attached to this communication (see annex 1). The following outlines the main findings of
these studies.

**TANGIBLE FACTORS**

**INPUT FACTORS**

Costs related to wood, energy, labour, transportation and tax are generally higher in the EU than
for example in North and South America and Asia. Only Japan faces higher production costs
than the EU FB-IND.

**Forest Wood**

The EU has a total forest area of 130 million ha, accounting for about 36% of its total land area.
Some 87 million ha (67%) are considered exploitable forests. [8] In comparison with the vast boreal
and tropical forests of other regions in the world, the EU's forest resources are modest,
representing only 4% of the world's forest resources. [9] Since wood availability is fundamental to
the industry, the EU forest-based industries, together with the EU forest owners, have made
substantial efforts to ensure the development of the whole forestry sector in Europe (including
downstream FB-IND). As a result, the EU forest cover and growing stock have increased over
the last 100 years and more than 50%, since the 1950s. [10 ]

In terms of wood availability, the EU is today fairly well positioned. As regards the current
consumption in Europe, only 70% '' of the annual growth of EU wood resources are being used,

which might imply that there is room for further development of the wood-based industries. In
fact, the remaining 30% comprises forest that is unsuitable for or unavailable to industry.
Therefore, within a 30-year perspective, [12] taking into account both the objective of sustainable
forest management and the forecasted increase in the demand for wood-based products in the
EU, wood resources will increasingly need to be complemented by outside wood supply
resources such as those of Russia.

Wood prices in the EU, depending on the species, are 50-150% higher than in North and South
America and Asia (excluding Japan). In spite of the higher price, the FB-IND uses mainly EU
wood due to its proximity, quality and the sustainability of EU forests. [13 ]

**Chemicals**

A wide range of chemicals are used in the FB-IND. For wood, these are mainly glues, resins,
surfacing substances and preservatives. For papermaking the most used chemicals are fillers and
coatings such as kaolin, latex, starch. For graphics it is water-based and solvent inks and dyes.
There is a strong EU-based chemical industry linked to the FB-IND. Additionally, the pulp and
paper industry often has on-site production of chemicals and recovery of by-products. Chemical
costs are generally lower for the EU than for its competitors, except in North America where
they are 5-15% lower than in the EU. [14 ]

**Energy**
FB-IND are often energy intensive but have significantly increased their energy efficiency
during the last 20 years, both through process development and recovery as well as the use of
residues. Energy sources have also been diversified, with a prominent use of renewable energies
such as hydro, wood, paper and process residues. The FB-IND thus depend on guaranteed energy
supply at competitive prices. However, despite increasing convergence over the last few years,
energy prices in the various EU Member States are still relatively high and vary significantly.
Average gas and electricity prices for the EU FB-IND are about 100% higher compared to
Canada, 25-30% higher compared to the USA and South America and 10% higher compared to
some Asian countries such as China, Indonesia and South Korea. The impact of these higher
**costs varies** according to specific sub-sectors of FB-IND. [15 ]

**Labour**

Labour costs are high in the EU, reflecting not only salaries and wages, but also the costs of the
high level of European health and safety standards and welfare systems. They are 20% higher
than in North America, and about 100% higher compared with South America and Asia. This has
a considerable cost impact in labour-intensive sectors such as the printing, publishing and the
woodworking industries. [16] These higher costs may partly be compensated by the 'proximity
factor' but also require a permanent effort of compensation through quality, service and other
factors adding 'customer value' to the product.

**Transportation and logistics costs**
Transport and logistics are very important for the EU FB-IND, from wood procurement in the
forest to the distribution of final products for retail sale. Therefore, any legislative,
administrative, fiscal or other factor exercising an impact on the costs of transportation and
logistics has an immediate consequence for FB-IND competitiveness. In most parts of the
European Union, transport networks and services, including rail, road, waterways, airports,
seaports, postal and courier services are today well developed and of high quality. However,
transport costs are high, in particular diesel fuel is twice as expensive in Europe as in other
competing regions. [17 ]

```
TECHNOLOGY BASED FACTORS

```

Over the past two decades, the EU FB-IND has made considerable efforts to increase process
productivity and efficiency in order to offset the handicap of higher input costs as compared with
their competitors in other regions. This has resulted in both considerable investments in higher

production capacities and a wave of mergers during the past years. Consequently, the number of
FB-IND companies has decreased more in the EU than in other regions in the world. In parallel,
continuous investment has raised EU production installations to the largest in the world and
enabled them to considerably increase both their productivity and quality levels. More efficient
production has resulted in increased yields in the use of wood and water, and improved energy
efficiency. The development of process recovery systems has reduced raw material needs.
Among the EU FB-IND competitors, Asia and Latin-America have increasingly modern and new
production capacity, whilst the North-American capacity on the other hand is ageing. The EU
FB-IND is more fragmented, and it includes both new and ageing production capacity.

**INTANGIBLE FACTORS**

R &D INNOVATION & SKILLS
Through mergers, forward and backward integration, and intensified cooperation with dependent
industry and other interlinked sectors (the so-called clustering), the EU FB-IND have improved
their knowledge and know-how and contributed to the present high level of R&D, innovation and
skills. However, the main efforts in this area were made by sectors gravitating around the EU
FB-IND rather than by the FB-IND core activities themselves. Thus, machine and equipment
suppliers, the chemical industry, process designers and automatic process-control system
suppliers, as well as input from research communities, contribute significantly to improving and
upgrading the EU FB-IND. Continuous efforts in these fields have enabled the EU FB-IND to
create a technological and know-how competitive edge in production efficiency, as well as
differentiated and high value added products and quality.

Further competitiveness factors for the EU FB-IND are human competence and skills. The
highly skilled workforce in the EU has enabled the FB-IND to efficiently use their tangible
assets and ensured the continued implementation of innovations. It has, furthermore, enabled the
EU FB-IND to outperform competitors from lower cost countries both in terms of productivity
and quality.

LEGISLATIVE AND INSTITUTIONAL FACTORS

The EU legislative and institutional framework obviously has significant impact on both the
investment and operating costs of the EU FB-IND and consequently on their present and future
competitiveness. Environmental, fiscal, energy, or labour related measures, both at EU and
national level, affect the actual cost level of the input factors as well as the technology based
investments. While the EU single market, the introduction of the euro and high living standards
offer an excellent market place for FB-IND, legal measures, in particular in the environment
field, often form a major challenge for the sector. Environmental obligations are still seen more
as a cost increasing factor than as factor to enhance competitiveness. In particular, the use of
voluntary instruments, such as the eco-management and audit scheme (EMAS) regulation,
should be encouraged. It should be noted that today as much as 15% of the new investment in the
FB-IND is directed to meet environmental targets. The corresponding figure in competing
regions is lower. The EU FB-IND have tried to overcome this by enhancing technological
productivity and efficiency and increasing efforts in the areas of R&D, innovation, training and
skills.

**2.** **THE MAIN CHALLENGES AND AREAS OF ACTION** **FOR** **THE EU FOREST-**

**BASED AND RELATED INDUSTRIES**

The evaluation of the factors affecting the competitiveness of the EU FB-IND allows for the
identification of the various longer term challenges the sector will be faced with. In this chapter,
these challenges will be grouped in the following broad categories: Globalisation, the EU
enlargement, environment and energy, technology and human resources, regulatory framework,
and the industry image in the public. The action areas designed to meet these challenges are also
outlined for each category.

**2.1 THE GROWING IMPACT OF GLOBALISATION**

Globalisation is not a new phenomenon in the EU FB-IND, but has gained pace in three
successive waves: the. internationalisation of trade, especially since the 1950s; the worldwide
flow of capital, especially since the 1980s; the globalisation of information flows, which
continue to grow faster than either trade or capital. It has resulted in the increased geographic
availability and uniformity of technology, expertise and capital through cheap and available
transport, ever more rapid and effective communications media and networks. The interaction of
these factors has led to the creation of a more homogeneous and cross-cultural business
environment.

In the EU FB-IND, the effects of globalisation have been seen in the increased worldwide
procurement of raw materials such as wood and pulp and in the intensification of world-wide
trade in forest-based products (+ 30% in 1992-1996) [18] and forest industry designated technology
products. Globalisation is a two-way phenomenon: on the one hand it offers increased
opportunities to those sectors that are active in extra-EU exports, such as paper & board and
graphic industry. On the other hand it increases pressure within the EU through low cost imports,
which affect in particular the products with a low value-added, e.g. sawn wood, certain wood
based panels and pulp industries. In both cases, the EU FB-IND faces competition from countries
where social and environmental standards, concern for sustainable forest management,_health
and consumer protection, and the priority, accorded to intellectual property rights and hence
production costs are at a lower and, in some cases, far lower level. In the next WTO Millenium
Round environmental standards should be given special attention.

The Community industry is increasingly challenged by the new low cost competitors from Asia,
Latin America and sometimes the CEEC, in particular when the new competitors protect the
development of their FB-IND through high import tariffs and restrictive export quotas. This has
caused the EU FB-IND to lose market shares, both within and outside the EU. Competition is
further increased through growing mobility and transfer of technology, knowledge and knowhow in the form of skills towards low input cost areas, thus accentuating the pressure on the EU
FB-IND. In the 1990's, the highest growth in new investment outside the EU in the FB-IND has
taken place in Asia resulting in a loss of market shares of the EU FB-IND in certain sectors, such
as in the wood based panels industry.

Initial consequences of this new competitive situation can be observed in the increase in crosscontinental purchases of forest resources, mergers, joint ventures, alliances, licensing and rights
purchases. In addition to pure cost factors, these developments are intended to ensure future
wood supply, improve the stability of the market, and to better serve FB-IND customers, a
number of whom act on a global scale.

Challenges:

- Adapt the industry structure to the new competitive situation;

- Improve access to markets in third countries for the Community exports and investment,
_inter alia,_ through WTO and prepare for the Millennium Round negotiations;
a Strive for free and fair trade with respect to tariff and non-tariff barriers;
Q Work towards the harmonisation of international standards, certifications and tests, as well

as their mutual recognition;
a Safeguard EU FB-IND interests in international fora.

**Action areas:**

In order to ensure the global and sustainable competitiveness of the EU FB-IND, it will be
essential to guarantee access to raw materials and export markets, to create and environment that
favours competition on an equal footing, and to encourage the EU FB-IND's adaptation to a
fiercer competition.

 - Encourage the EU-FB-IND to adapt and restructure using market-driven mechanisms and
improve the availability of funding;

 - Ensure the continued access to and the availability of raw materials through actions against
eventual third country export restrictions;

 - Collect relevant information about tariff and non-tariff barriers in third countries that impede
access to these markets, and to take appropriate measure, through the WTO if necessary, for
their removal;

 - Promote in the next WTO Millenium Round a high-level of environmental standards;

 - In international fora such as WTO, WIPO, UN/CSD, ISO, work towards the harmonisation
and the mutual recognition of rules and standards, and contribute to the development of more
equal, fair and reciprocal competition rules.

2.2 **THE ENLARGEMENT** OF **THE** EU

The political decision to incorporate into the EU the candidate Central and Eastern European
Countries (CEECs) has underpinned the transition of these countries to democracy and market
economy. With a population of more than 100 million, the candidate CEECs constitute a
significant potential growth market for EU forest based and related products. The growth in
demand will start to be felt when the current relatively low consumption levels begin to approach
the EU-15 levels. The FB-IND in the CEEC play an important role in the modernisation process,
as they are often at the center of key industrial activities and export revenue sources. FB-IND
figures among the top three industry sectors in the Baltic states, Slovenia and Poland. [19 ]

However, the strengths of the candidate CEECs, such as low labour costs and a good level of
technical qualifications, are often outweighed by outdated production technologies, low energy
efficiency and poor environmental performance. The forest resources of the candidate countries
are considerable, representing 33 million hectares of commercial forests i.e. 36% of those of the
EU-15. [20] However, the privatisation process of these resources has only recently been launched
with an unknown outcome. Furthermore, it will take some time to implement sustainable forest
management, as widely practiced in the EU where it is grounded in a legislative base, supported
by monitoring institutions and private forest owners.

**Challenges:**

 - Ensure adoption and application of the EU legislation, the so-called 'acquis communautaire';

 - Build up complete and reliable statistics of the FB-IND in the CEEC;
Q Acquire sufficient knowledge of the economic, technical and environmental performance
with the aim of ensuring the CEECs ability to compete in the Single Market.

**Action areas:**

**•** Monitor the transposition and implementation of EU legislation in the CEEC ;

 - Evaluate the CEEC FB-IND's readiness for accession and verify that the candidate countries
meet the requirements of the Single Market;

 - Enhance institution-building, both in public administration and among the FB-IND in the
CEECs;

 - Develop statistical information related to the FB-IND in the CEECs;

- • Improve awareness within the CEEC of the effects of the EU policy objectives on the FBIND and facilitate industrial cooperation with their EU partners.

**2.3 AN INCREASED SENSITIVITY TOWARDS SUSTAINABLE DEVELOPMENT,**
**ENVIRONMENT AND ENERGY**

Increased awareness at all levels of society has led to the growing sensitivity of the public to
environmental issues. For the Forest-Based Industries and Related Industries, sustainable
development has become one of its key priorities. This implies that an overall balance has to be
found between environmental, social and economic aspects. The challenge is thus two-fold: the

9

sector has to .improve the the environmental performance on a permanent basis while increasing
its competitiveness in order to maintain its presence in the EU, thus providing employment and
creating value-added. As regards EU environmental legislation, at present one of the most
advanced in the world, predictability, coherence as well as economic and social feasibility are
necessary to maintain competitiveness and hence employment in the EU FB-IND. The
Commission invites all stake holders to continue their commitment to achieve a balanced

approach to the three main pillars of the sustainability.

Sustainable forest management (SFM) is vital in order to maintain all the ecological, social and
economic functions of forest resources, amongst which is the necessity of ensuring a constant
supply of raw materials at competitive prices. Increasing awareness and concern about the
ecological and social aspects requires effective and coordinated policies on forestry, land use,
environment, industries, energy, fiscal matters and foreign trade at the appropriate level. There is
a need to demonstrate and visualize at national, EU and pan-European level that SFM has
become in recent years an important vehicle of social, political and environmental change. An
important policy tool to be developed by the Member States in this respect will be the
formulation and implementation of National or Sub-national Forest Program's (NFP) as defined
by the Intergovernmental Panel of Forests (IPF) and identified as a substantial element of the EU
Forestry Strategy. In this context, careful consideration has to be given to the ways of carrying
out SFM and its designation. According to estimates, the average cost impact of SFM and SFM
designation adds between 8 and 20% to the costs of wood as raw material (at stumpage level). [21 ]

Much has already been achieved with regard to the reduction of emissions through improved
techniques and processes. The remaining challenge consists in applying best practicies
throughout the different sectors in the EU, in particular by applying the Best available techniques
(BAT) as defined in the IPPC Directive, taking into account local conditions and the size as well
as the need to avoid the shifting of pollution between the different media. These BAT are
currently the subject of an information exchange between Member States and Industry, the result
of which will be published by the Commission as a BAT reference document for each sector, in
particular the pulp and paper sector. [22] Research is needed on the question of the form (liquid,
gaseous, solid) in which emissions could best be improved.

Sustainable development means also improved recovery of used wood, paper and board products
and hence a smaller amount of final disposals. The waste management legislation is a particular
challenge to a sector that has been active in recovering wood and paper waste to produce either
secondary raw material (fiber) or energy from a renewable source. The definition of waste that is
currently applied to secondary raw materials is seen by industry as creating an administrative
burden and costs in particular for small and medium enterprises. The implementation of the
Directive on packaging and packaging waste, due to be revised at the beginning of 2000 will
have to carefully consider the need to avoid differential treatment of materials which could
distort competition between those materials.

As mentioned earlier, recovery activity within the FB-IND is already highly developed starting
with heat recovery from the debarking of the trees and all the other process-inherent recovery
and recycling activities. Although further improvement in this area is still possible, further
development of wood and paper recovery activities is nevertheless a many-sided issue with a
number of technical parameters to be taken into account. Research is needed on many aspects of
wood, paper and board products to improve their recyclability as new material or energy source
from a life-cycle analysis point of view, such as de-inking techniques and non-hazardous wood
treatment substances.

Wood and paper products, in particular the more durable products, play a significant role in
climate change, through the extension of the carbon sink effect of forests. Increased use of wood
products can both stimulate the growth and carbon sequestration and increase the carbon storage
effect, while decreasing the emissions through material substitution. The Special Report on land
use, land use change and forestry, being prepared by the Intergovernmental Panel on Climate
Change, will assess existing data on the carbon sinks and the carbon-storing products in order to

10

implement the Kyoto Protocol. This report, due in May 2000, is highly relevant to the FBI-IND
that are contributing to it. In particular, it will allow to implement Art. 3.3 and 3.4 of the Kyoto
Protocol.

The EU FB-IND are medium to heavy energy consumers. Given the already important
achievements in increasing energy efficiency, the scope for further improvements is small.
Energy recovery through the incineration of wood and paper waste, which form renewable
energy resources, should be encouraged as a way to further decrease the use of fossil fuels. The
European Union has set the goal of increasing the share of energy from renewable sources from
5% up to 12% by 2010, with most of the increase foreseen to come from bio-mass i.e. from
forests and agriculture. [23] Since wood is the common raw material of the FB-IND, the need to
secure a reliable and permanent supply of wood has become an even greater challenge.

**Challenges:**
Q Improve the EU FB-IND environmental and energy performance;

 - Promote Sustainable Forest Management within the EU;
**a** Contribute actively and competently to coherence, predictability and competitive
sustainability in environmental and energy legislation and voluntary instruments; [24 ]

 - Ensure energy supply at competitive prices;

 - Secure a permanent supply of wood at competitive prices under the development of energy
policy from renewable energy sources;
**a** Communicate on environmental performance using agreed measurement methods.

**Action areas:**

Legislation and measures taken should be based upon proper scientific assessment and
cost/benefit analyses, taking into account proportionality. The FB-IND contribution to
sustainable development could be further enhanced by taking the following actions:

- Improve the EU FB-IND environmental and energy performance through continuous R&D
efforts, environmental and energy benchmarking and uptake of cost effective new
technologies and other solutions, taking into account the particular needs of SMEs;

- Improve waste. management through a comprehensive approach including cost effective
recycling, energy recovery and innovative solutions for final disposal by finding the best
means and waste disposal form (liquid, gaseous or solid) to effectively reduce emissions;

- Assess the carbon sequestration and storage effects of the EU FB-IND in the forest products
and energy recovery and evaluate how, through increased use of FB-IND products, their
climate change impact is improved, considering also the substitution effect of less
environmentally friendly materials;

- Support the implementation of the EU forestry strategy by contributing to promote costeffective sustainable forest management and to set up national or sub-national forest
programs and by thus contributing to establish a suitable SFM framework;

- Identify areas in environmental and energy questions, in which value added could be reached
through cost effective voluntary instruments, such as EMAS and contribute actively and
competently to the legislative process;

- Develop systematic and comprehensive reports for the EU FB-IND in the fields of
environment and energy.

**2.4 THE ACCELERATED TECHNOLOGICAL EVOLUTION AND ITS**

**IMPLICATIONS FOR HUMAN RESOURCES**

**2.4.1** TECHNOLOGY, INNOVATION AND **R** & **TD**

Globalisation, sustainable development and growing competition from low-cost countries put
increasing pressure on productivity and environmental performance and create a need for new
technical developments in order to stay ahead in the competitivity race. High input costs can be

11

overcome by using modern technology and ICT, with the aim of increasing productivity at FBIND installations and of improving product quality. Equally important is the need to be aware
early of changing customer requirements and to engage more in customer-oriented research and
development activities. The maintenance of competitiveness in these conditions requires
considerable and continuous efforts in R&D, a permanent and enhanced process of innovation,
and well-organised dissemination of related information, for the efficiency of the industry as a
whole. Within the Fifth Framework Programme for RTD (1998—2002), several specific and
horizontal programmes include research activities on forest-based industries. Within the forestrywood chain community RTD efforts are aiming at optimising the efficiency and productivity of
the entire "production and processing chain" and matching the sustainable production of forest
resources to industrial and market needs and requirements.

Furthermore, new information and communication technologies are rapidly changing the
traditional business environment. New possibilities, such as electronic and cross-media
publishing, using both paper-based and electronic communications tools, amplify the
convergence of technologies and media. Other emerging areas, such as electronic commerce
create new challenges and business models in the area of Intellectual Property Rights (IPR),
liability data protection and the security of commercial transactions. Electronic Data Interchange
(EDI) and in some sectors 'digital workflow' require the development and implementation of
industry standards. It is still a major challenge for many of the FB-IND subsectors to ensure that
SMEs also benefit from ICT.

**Challenges:**
**a** Improve competitiveness by carrying out Research and Development leading to new
processes and innovations;
**a** Encourage innovation and networking within the FB-IND;
**a** Satisfy end-user requirements by designing new 'user oriented' products and services, e.g. in
new media;

- Develop and increase the use of systems' solutions e.g. in construction products;

- Ensure that FB-IND research needs and priorities are meaningfully reflected within future
EU RTD programmes;

- Ensure that the FB-IND takes maximum advantage from the Global Information Society,
ICT and electronic commerce; improve the uptake of cost-effective new technologies and
other solutions, in particular in SMEs.

**Action areas:**

Contribute efficiently to the overall objectives and RTD priorities of the 5 [th] Framework
Programme for RTD and national programmes;
Disseminate in an efficient and effective way information on research results, best practice
and solutions, thereby enhancing the technology and innovation transfer process and
ensuring its monitoring;
Investigate the advantages that the Information Society, the use of ICT and electronic
commerce could offer to the FB-IND;
Monitor the uptake of new technology and ICT;
Create incentives to encourage innovation in the FB-IND.

**2.4.2** DEVELOPMENT OF HUMAN RESOURCES

Within an ever more knowledge-based and technology driven competitive environment,
attaining, maintaining and improving a competitive edge depends increasingly on the availability
of skilled human resources. Identifying and exchanging 'best practices', spreading information
on education and training, supported by skills and competence benchmarking can help to
facilitate this process. Moreover, new technologies such as ICT will influence the integration of
new forms of work organisation and other techniques and require personnel with matching skills
and abilities.

It is clear that the involvement of both sides of the industry in the design and implementation of
training measures would help to increase their acceptance and make them more efficient.

12

**Challenges:**
Q Attract a young and well educated labour force towards the FB-IND;

 - Guarantee useful and efficient retraining programmes that will ensure that personnel are
motivated and the companies remain competitive by creating a training culture that will lead
to the use of these vocational training programmes by large companies as well as SMEs.

**Action areas:**

- > Make available information about EU FB-IND at schools using also new media;

 - •• Contribute to the development of technical and university level programmes to increase FBIND's attractiveness;

- Develop and improve vocational training within the FB-IND, disseminating information of
different vocational training and retraining possibilities, contributing to life-long learning;

- Investigate the value added of total quality management within FB-IND, especially SMEs,
and define training needs.

**2.5 THE EVOLVING INTERNATIONAL AND EU REGULATORY AND ECONOMIC**

**FRAMEWORK**

A considerable number of international, community and national instruments make up the legal
framework within which the EU FB-IND operate. At international level, the EU FB-IND are
concerned with trade issues in the World Trade Organisation (WTO), Intellectual Property
Rights issues in the World Intellectual Property Organisation (WIPO), trade and environmental
issues for forest products in the Intergovernmental Forum for Forests (IFF), and voluntary
standards in the International Standardisation Organisation (ISO).

Within the EU, reinforcing the single market by ensuring free competition remains the main
pillar of the strategy for growth, innovation and employment creation. Whilst the EU legislation
sets the level of necessary harmonisation, it needs to be ensured that national legislation does not
impede the free circulation of goods within the EU. In this context, further efforts are needed in
the area of standardisation to promote intra-EU trade.

In order to promote the creation of an appropriate regulatory framework, public administrations
need to gather adequate statistical information. At present, certain sectors of the FB-IND are
absent from the statistics and some basic information is not available.

**Challenges:**
**a** Contribute to the formulation of fair and equitable international rules;
Q Contribute to adequate protection for content owners;
**a** Promote free movement of EU FB-IND goods and services;

- Simplify the legislative and administrative burden for SMEs;

- Advance effective application of existing EU Directives;

- Contribute to the development of sufficient statistical systems, in cooperation with
international organisations such as FAO and UN/ECE.

**Action areas:**

Contribute to the adequate harmonisation of Intellectual Property Right rules in the
borderless information society;
Identify and remove technical and hidden barriers to trade in the Single Market;
Ensure the monitoring and evaluation of the development, transposition and implementation
of EU directives, regulations and other legal instruments;
Investigate how to simplify the administrative burden on SMEs;
Clarify and define present and future requirements for information and statistics for the
whole chain of FB-IND and propose activities to this end;
Enhance co-operation with relevant European and international bodies.

13

**2.6** **THE GROWING IMPORTANCE OF COMMUNICATING A GOOD IMAGE TO**

**SOCIETY**

In general, the public's knowledge of the EU FB-IND (with the exception of the publishing
industry) is incomplete, and hence the industry's image is frequently negative. In the extreme,
these industries may be perceived as irresponsible tree killers and destroyers of mankind's
natural resources, and as old-fashioned low-tech chimney industries polluting the environment.
To make matters worse, the EU FB-IND have often in the public mind been connected to, and
consequently have suffered from, the human-induced deforestation which takes place outside the
EU.

The EU FB-IND should make efforts to improve its image. Information campaigns directed at
the broad public could help to promote .the fact that the FB-IND are amongst the most
sustainable industrial sectors in the EU. These campaigns should demonstrate in particular the
sector's use of renewable raw materials, their energy efficiency, their well-developed recycling
and energy recovery capacities as well as the industry's contribution to carbon trapping and
storage.

These particular environmental qualities of FB-IND have been understood both at international
fora and within the European institutions such as the European Parliament, the Committee of
Regions and the Committee of Economic and Social Affairs. Several foras, such as the
Intergovernmental Panel of Forests of the UN Commission for Sustainable Development (1997)
and the Third Ministerial Conference on the Protection of Forests in Europe, held in Lisbon in
June 1998, stressed the need to 'take action to stimulate and promote the sound use of wood and
other forest-based products as environmentally friendly and renewable resources'. The European
Parliament's 'Thomas Report' emphasised, furthermore, the need for development of a European
campaign for the promotion of wood and wood products.

Closer and systematic cooperation between the various sectors of the EU FB-IND would bring
about significant synergy effects and could help to improve the industry's image, to its
competitive advantage.

**Challenge:**

- Improve the public's awareness of both the positive characteristics of the EU FB-IND and of
its products vis-a-vis competing materials.

**Action areas:**

In general, knowledge and awareness of the forest-based and related industries amongst the
professional community, politicians, NGO's, schools and universities, as well as the public, is
insufficient. The public's perception of FB-IND is mainly negative and based on inaccurate
information. This works to the direct competitive disadvantage of the FB-IND and does little to
encourage a talented, technically qualified labour force to join the FB-IND. In a technology
oriented future, this could become a drag on the long-term competitiveness of the sector.

Awareness of the industry's strengths in different fields needs to be improved by taking the
following actions:

- Develop a common communications strategy for the various FB-IND sectors benefiting from
the knowledge and experience of professional communications and public relations experts;

- Collect more accurate and reliable information on the perceptions of the FB-IND, for
example by carrying out a Eurobarometer opinion poll (the EU's tool to assess and measure
public opinion on specific issues throughout the EU).

These awareness-building actions and other actions of common interest could best be worked out
through improved cooperation of the various sectors of the EU FB-IND. Actions proposed are:

14

Use the 'Advisory Committee to the Commission on Forestry, Forest-based and Related
Industries' (reconstituted in December 1997), and its working groups to extend cooperation
within the FB-IND; this Committee should also serve as a preparatory platform for
discussions in political fora.
Create a Forum on Forest-based and Related Industries, involving all the main stakeholders;
this Forum should ensure adequate implementation and follow-up of actions and measures
agreed upon and could include a High Level Industry Panel functioning as a Steering
Committee for its work.

3. CONCLUSIONS

The Commission recognises the importance of the Forest-Based and Related Industries (FBIND) in the EU-15, and their contribution to the sustainable development within the EU due to
economic and social contribution of the industries which provides a high level of employment
and their particular environmental characteristics, from the renewability of wood as their main
raw material to the high level of recovery and recyclability of most of their products.

However, as highlighted in this communication, the FB-IND are faced with a number of
important challenges, which could create new opportunities but which also constitute threats
with regard to the industry's future global competitiveness and its sustainability. Areas for
concrete actions to be undertaken by the different stakeholders in a proactive and cooperative
approach have been identified.

In order to effectively pursue the implementation of these actions, the Commission proposes to
create a Forum, constituted of representatives of the EU-FB IND, the services of the European
Commission and other main stakeholders (forest owners, trade unions, environmental NGO's,
scientific and academic communities). It should also comprise Member States experts and
Members of the European Parliament. The Forum should in particular:

- complete the analysis of the competitiveness factors and the identification of the main
challenges of the EU FB-IND.

- discuss and agree on concrete actions to be taken and/or pursued by the different stakeholders.

- follow up their implementation and provide regular update of the actions agreed upon.

It is proposed that the existing 'Advisory Committee to the Commission on Forestry, ForestBased and Related Industries' [26] should prepare and coordinate, through its working groups, the
inputs required to establish the actions. The Commission also suggests calling a plenary meeting
of the Forum on an annual basis, in collaboration with the Presidency and the High Level
Industry Panel.

The Commission will report periodically to the Council, the European Parliament and the
Committee of the Regions, on the evolution of this initiative.

*********

15

**ANNEX 1:**

**SUMMARY OF THE RESULTS OF THE 'SWOT' EVALUATION CARRIED OUT IN**

**COLLABORATION WITH INDEPENDENT EXPERTS AND REPRESENTATIVES OF THE FB-**

**IND.**

The conditions for the EU FB-IND present and future competitiveness could be described as Strengths,
Weaknesses, Opportunities and Threats that are presented in a "SWOT" table below.

**SWOT - Forest Based and Related Industries**

**STRENGTHS**

_Tansibles: Input cost factors:_

**•** Sustainable and expanding raw material base
_Tansibles:_ _Technoloeical_ _factors:_
_*_ Efficiency of production facilities
" Advanced technology

 - Use of ICT technology and multilingual
knowledge
_Intangibles: Oualitv & performance:_

 - High quality products and service

- Strong environmental performance

 - Potential for FBI clustering

 - Targeted advertising in magazines and
newspapers and directories

 - Knowledge of local languages and culture

 - Experience in data management

- Know-how & skills

 - Proximity & access to one of world's largest
and sophisticated markets

- Good health and safety standards

**WEAKNESSES**

_Tansibles: Input cost factors:_

- high raw material costs, esp. wood

- high labour costs

- high energy costs

- high costs of printing
_Intangibles:_ _Oualitv & performance:_

- lack of forest/wood cultural consciousness

- fragmented structure

- inadequate training

- often conservatism and lack of innovation

- skills and knowledge in IT and economy

- lack of end user/market orientation

- _Intangibles: Lesislative and institutional_
_framework:_

- high taxes

- low profitability (->low re-investment)

- complicated (& costly) bureaucracy

- lack of capital for modernisation

- no reliable statistics on SMEs

**OPPORTUNITIES**

_Tansibles: Input cost factors:_
_*_ capitalise on expanding forest resource

 - participate in supply chains from costcompetitive regions
_Tansibles: Technolosical factors:_
_*_ development of Trans European Networks

 - electronic publishing
_Intansibles: Oualitv & performance_

 - expand use of wood

 - promote wood as lifestyle product

 - total product solutions

 - specialisation

 - electronic commerce

 - archived information providers

 - complementarity with new media

- capitalise on environmental investments

 - R & D and know-how advancement

- restructuring (esp. networks)
_Intansibles:_ _Lesislative_ _and_ _institutional_
_framework:_
_*_ success of Euro

- enlargement (larger market and control of low
cost competition)

- more equitable taxation
**THREATS**

_Tansibles: Input cost factors:_

- increasing wood costs + lower supply

- increasing importance of recovered fibre (wood
& paper), but risks of distortion of mix through
imperfect policies

- lower costs and environmental standards in

competing third countries
_Intansibles: Oualitv & performance:_

_*_ declining readership, household penetration and
poor literacy

- advertising revenue moving to commercial
broadcasting and new media

- lack of trainers

_Intansibles: Lesislative and institutional_

_framework:_

- unbalanced environmental taxes

- potential shortcomings of adequate protection
of content

- decreasing budgets of schools and libraries

## **_u,_**

**9**

**10**

**11**

**12**

**14**

**15**

**16**

**17**

**18**

**19**

**20**

**21**

**22**

**23**

**24**

**25**

**26**

COM (1998) 649 Final.

Source: Eurostat.

Source: Eurostat.

Source: "Competitiveness of the EU Publishing Industries", Media Group, Turku, Finland
© European Communities 1999.

Source: The Competitiveness of European Industry- 1998 Report.

Fax from C.E.I BOIS (Confederation Europeenne des industries du bois) of 2 February 1998
concerning Kyoto Protocol on Climate change - Implications for the Forest-based Industries.

Source: CEPI.

Source: COM (1998) 649 Final.

Idem as 6.

Forest resources in Europe by K. Kuusela, European Forest Institute Research Report 1.

Source: UN-ECE, FAO.

Source: "Global Wood Fiber Study", Wood Resources International LTD
© European Communities 1997.

Competitiveness of the European Pulp, Paper and Board Manufacturing Industry
© European Communities 1999.

Idem 12.

Idem 12.

Idem 12.

Idem 12.

Source: FAO Yearbook 1992—1996.

Source: Countries in Transition 1998: Bulgaria, Croatia, Czech Republic, Hungary, Poland,
Romania, Russia, Slovak Republic, Slovenia, Ukraine
The Vienna Institute for International Economic Studies.

UN-ECE, FAO.

Source: Competitive costs, benefits and feasibility for the Forest-Based Industries of SFM
designation for forests and marking of forest products, Jaakko Poyry
© European Communities 1998.

Directive 96/61/EC Intergrated Pollution Preventation and Control,
Official Journal L257, 10.10.1996, p. 26.

Energy for the future: Renewable sources of energy, Green Paper for a Community Strategy,
COM (1996) 576.

Better Lawmaking 1998: A Shared Responsibility, COM (98) 715.

Commission Decision 97/837/EC.

Idem 25.

###### **_1}_**

ISSN 0254-1475

### COM(1999)457 final

# **DOCUMENTS**

### EN 03 08 10 14 Catalogue number : CB-CO-99-477-EN-C

Office for Official Publications of the European Communities

L-2985 Luxembourg