1. Magnus Svensson, SCA EU Parliament, Brussels, October 18, 2011 Say NO to IMO maritime sulphur proposal for North EU

2. Facts about SCA  Svenska Cellulosa Aktiebolaget, SCA  3 rd largest Forest Industry company in the world  One of the largest companies in the Nordic region  44.000 employees working in some 40 countries. 2

3. Environmentally friendly operations  Rated as one of the most ethical and environmentally friendly companies in the world  The worlds largest supplier of FSC certified products  Swedish operations is CO2 negative Using low sulphur marine fuel since 1990-ies 3

4. Environmental prio for Baltic Sea area?  The significant environmental problem in Baltic Sea is not acidification…it is eutrophication  The global environmental problem is CO2 – greenhouse effect  Still IMO has decided that we should spend huge financial resources on reducing sulphur emissions.  Value for society is calculated up to 7 billion SEK, but the cost is up to 28 billion SEK (according to SMA expert group) We should focus on the real environmental issues 4

5. Impacts (conclusions by the Swedish Maritime Administration’s expert group)  Cost increase of marine fuel by 50-80 % - average 75 %  Sea transport cost increase with 30-45 %  Cost increase for the pulp & paper industry with 95 SEK/tonne product  Modal back-shift to road and rail

6. The Paper Mill example  Investment about 400-500 MEUR  Economical lifetime 25-30 years  Production ca 600-700.000 ton/year  Of which ab 500.000 ton is exported outside Scandinavia  Additional cost for marine transport ab 10 EUR/tonne  Equivalent to 5 MEUR/year for 25 years  This makes a total additional of 125 MEUR over the economical lifetime of the investment  An additional cost of 125 MEUR on a 500 MEUR investment means that the investment must return +24% more to compensate

7. The Saw Mill example  Investment ab. 150 MEUR  Economic lifetime 25-30 years  Production ab. 700.000 cbm/year  Of which 500.000 cbm is exported outside Scandinavia  Additional cost 10 EUR/tonne = 5 EUR/cbm  This is equivalent to 2,5 MEUR/year for 25 years  This makes a total additional cost of 63 MEUR during the investment liftime  An additional cost of 63 MEUR on a 150 MEUR investment means that the investment must return +42% more to compensate Bergkvist Insjön

8. The Forest Products industry is one of Swedens largest net exporters Export & Import figures 2009 Källa: SCB Total export: 997 miljarder kronor (2008: 1194 miljarder kronor) Total import: 910 miljarder kronor (2008: 1097 miljarder kronor) Machines Electronics Telecom Forest Products Minerals Medical Food Cars Textiles The domestic raw material based industry gives very large contribution to trade balance

9. Sulphur leakage Transport comparison for one tonne of paper between Philadelphia-Rotterdam and Sundsvall-Rotterdam: Philadelphia to Rotterdam 3,5% allowed sulphur in marine fuel from 2012 Last day max 0,1% within SECA 989 gram sulphur emmision per ton of paper during the transport Sundsvall to Rotterdam 0,5% allowed sulphur in marine fuel 55 gram sulphur emmisions per tonne paper during transport This is not environmentally friendly!!

10. Consequences for Sweden (& Nordic region) Investments in base industry will be more difficult. The region will be less attractive. The Forest Industry is just an example, but this example is in fact one of Swedens largest export industries. At the same time it is likely that the global emissions of sulpher and CO2 will increase as a consequence of this decision. This is counterproductive both for environment and competitiveness.

11. LTM 201111