Efforts Towards Sustainable Industry in the Japanese Paper Industry Masataka Hayama Japan Paper Association The 31st FAPPI Conference November 7, 2013 Jakarta, Indonesia

Green Economy “In its simplest expression, a green economy can be thought of as one which is low carbon, resource efficient and socially inclusive.” - United Nations Environment Programme “(green economy) should contribute to eradicating poverty as well as sustained economic growth, enhancing social inclusion, improving human welfare and creating opportunities for employment and decent work for all, while maintaining the healthy functioning of the Earth’s ecosystems.” - The Future We want (Rio+20 Outcome Document)

Paper industry is a green and sustainable industry Pulp & paper mill Building Construction material Woodchip (Digestion) Demolition wood Lignin and other Fiber Slab 50% 50% (Reuse of chemicals) Black liquor (Washing) Chopsticks Round wood Evaporation (Bleaching) (Recovery of chemicals) Thinning wood Recycled pulp Wood pulp Global warming Fuel for power generation 64% 36% (Papermaking) Fuel for power generation Industrial forest plantation (De-inking) Newsprint 50% 50% (Recovered paper recovery) CO2 emission Recycling of forests Fossil fuel 　Renewable/waste fuel Copy paper Paper recycling (Combustion) Generated steam　→　Power generation Publication paper On-site use (steam, electricity) Forest plantation (CO2 absorption) Tissue Paper waste Growing with absorbing CO2 from the atmosphere CO2 recycling

Recovered Paper Utilization Rate in Japan % 64.0 Year 1995 Target of 56% by 2000 Year 2000 Target of 60% by 2005 Year 1990 Target of 55% by 1995 Year 2010 Target of 64% by 2015 Year 2005 Target of 62% by 2010 Year 1991 Law for the Promotion of Utilization of Recycled Resources Source: Ministry of Economy, Trade and Industry Note: Utilization rate = recovered paper consumption + recovered paper pulp consumption / total raw material consumption

Recovered Paper Recovery Rate in Japan % Year 2000 The Basic Law for Establishing the Recycling-based Society Revised Wastes Disposal and Public Cleaning Act Source: Ministry of Economy, Trade and Industry

Global Warming Measures in the Japanese Paper Industry ～1990 Reducing specific energy consumption through installing large-scale kraft pulp plants. Electricity saving through achieving a recovered paper utilization rate of 55% and promoting alternative use of recovered paper to mechanical pulp. Steam saving and productivity improvement through introducing wider and closed hood paper machines. ～2000 Energy saving through achieving a recovered paper utilization rate of 60% and promoting alternative use of recovered paper to kraft pulp. Increasing the stage of effect of vacuum evaporators and introduction of natural gas turbines Reducing waste volume through promoting incineration as well as fuel use, instead of landfilling. Expanding power generation capacity by introducing high temperature and pressure recovery boilers. Expanding plantation area at home and abroad to 600 thousand ha by 2010. 2000～ Achieving a recovered paper utilization rate of 62%. Steam saving through introducing high dew point closed hood and high-efficiency press section. Installing new boilers fueled by paper sludge, refuse paper and plastic fuel, waste wood and waste tires. Expanding forest plantation area to 700 thousand ha by 2012. Developing a tree species with resistance to pests/pathogens and drought.

JPA’s Committed Action Plan for the Environment Established in 1997 Targets set in the plan had been raised several times since establishment Final target: Reduce specific fossil energy consumption and fossil energy-derived CO2 emission intensity on a five-year average basis from fiscal 2008 to fiscal 2012 by 20% and 16%, respectively, from the level of fiscal 1990.

Specific Energy Consumption and CO2 Emission Intensity (FY 1990 as 100) Source: Ministry of Economy, Trade and Industry, Japan Paper Association

Investment for FY 2000-2012

Factors of Changes in Fossil Energy Derived CO2 Emissions

Composition of Energy Consumption by Energy type Waste and renewal energy account for half of energy consumption in FY 2012 FY 1990 FY 2012 Renewable energy: black liquor, waste wood, bark, paper sludge, etc., Waste energy: refuse paper and plastic fuel (RPF), waste plastic, waste tire, etc.,

JPA’s Action Plan for Low Carbon Society Target: For the fiscal 2020, reduce fossil-energy-derived CO2 emissions by 1.39 million tons from BAU through: Promoting energy conversion from heavy oil to biomass (waste wood, thinning wood and slash) and waste energy. Introducing high-efficient recovered paper pulping units. Introducing energy-efficient high temperature and pressure recovery boilers.

JPA’s Action Plan for Low Carbon Society Target: In view of increasing forest carbon sinks that help prevent global warming, as well as ensuring stable supply of raw materials, expand forest plantation area owned or managed by JPA member companies at home and abroad by 525 thousand hectares compared with the fiscal 1990 level to 800 thousand hectares by fiscal 2020.

Forest Plantation Area by the Japanese Paper Industry (1,000ha)

Overseas Forest Plantations by the Japanese Paper Industry

Development of New Bio Products Japanese paper industry actively promotes R&D on innovative bio products (e.g. bioethanol and CNF) through its unique woody biomass utilization technology. These innovative products from wood fiber are expected to be adopted in chemicals, cosmetics, pharmaceuticals and more, replacing traditional products have higher environmental footprints.

Biomass Power Generation Paper manufacturers are expanding biomass power generation since FIT started in July 2012 Major biomass power generation projects

Towards “Green Economy”, we should: Promote further paper recycling 　-Establishing a recovered paper collection system involving governments, private sectors and citizens is essential for improving paper recycling Improve energy efficiency -Objective evaluation based on data is fundamental for improving energy efficiency. -Each association needs to play a central role in building a database on energy consumption

Thank you Terima kasih banyak