New Declaration on Paper Recycling Stakeholder Meeting 28 June 2006 ALL DATA NON-PUBLIC TILL END OF SEPTEMBER 2006

2 Results from 2005 Recycling Rate The Recycling Target 2005 was 56% (+/- 1,5% points). The Recycling Rate 2005 was 55,4%.  The European Declaration on Paper Recovery is a success. Excluding Poland, Hungary, Czech Republic and Slovakia (original scope) the Recycling Rate 2005 would reach 55,9 %.

3 Historical Development CEPI 1998* – 2005 Results from 2005 Recycling Rate * Base year for the monitoring

4 Calculation for the 2010 target The calculation method has been revised: Utilisation of recovered paper in Europe (old calculation method) Net Trade of Recovered Paper to third countries (additional) In line with Community legislation (mutatis mutandis) More informative to non-professionals The number of countries has been increased: 25 EU-countries Bulgaria & Romania Norway & Switzerland Adding up to 29 European countries

5 Calculation for the 2010 target Factors favouring an increase of recycling level: Increasing use of RP in paper manufacturing. E.g. all new newsprint and containerboard investments are based on recovered paper General opinion positive towards recycling RP exports to outside Europe increases the rate Collection activity and volumes in the new EU-countries and Bulgaria and Romania are expected to grow fast due to low present level Collection potential is increasing with packaging material imported together with goods Active industry role to advocate collection Wider participation in new Declaration.

6 Calculation for the 2010 target Factors limiting the increase of the recycling level: Possible increasing incineration and use for energy production (high energy prices and subventions) In some countries the collection has already reached high, and further growth is unavoidably slow RP utilisation in other uses not controlled by signatories to the declaration (it is not accounted for and such data not available) Inefficient collection and sorting practises leading to deteriorated quality and unsuitability for recycling (main decisions in the hands of local authorities)

7 CEPI Board adopted (9 June) a commitment for the new Recycling target to be reached by the end of 2010: x * % * This figure will be made public at the end of September New Declaration on Paper Recycling

8 Calculation for the 2010 target IndicatorActual 2004*Forecast 2010 (Mill. Tonnes) Paper Production Paper Consumption RP Utilisation RP Collection RP Net Trade (%) Utilisation Rate Recycling Rate59.6xxx ‣ * Using new target scope ‣ This figure will be made public at the end of September 2006