1. ECCP II Stakeholder Meeting Brussels, October 24th 2005 Renewable energy – progress and way forward from forest owners´viewpoint Natalie Hufnagl, Secretary General

2. 1.What is the CEPF? 2.Forestry energy – the third market for forest owners 3.Challenges and opportunities 4.Biomassehof Allgäu – driving regional development 5.Comments on ECCP I outcome – building the bridge to ECCP II 6.Conclusion

3. What is the CEPF? The CEPF is the only umbrella organization of national forest owner organizations in the European Union. Over 60 % of the total forest area in the European Union is privately owned. CEPF is currently representing family forest owners of 23 European countries. CEPF is the voice of 16 million family forest owners in Europe owning in average less than 13 hectares.

4. CEPF membership

5. Forestry energy – the third market for forest owners Currently only 60% of the net annual increment in EU 25 forests is harvested (MCPFE/UNECE 2003) Creation of a more diversified income for the forest owner Value added for an integrated forest-wood-paper value chain that is already today the biggest producer and user of renewable energy

6. Gross electricity generation from wood [TWh] Wood energy part in consumption of primary energy in % Consumption of primary energy from wood [Mtoe] Source: Wood energy barometer 2004

7. Challenges and opportunities Use the structural advantage - decentralised energy supply from forestry energy Strengthening of combined heat and power systems Investment in efficient logisitc systems to meet just in time delivery requirements of the energy sector Forestry energy as value added product from sustainable forest management

8. www.holzbrennstoffe.de

9. Biomassehof Allgäu – driving regional development Founded in 1997 1.400 forest owners managing 7000 ha Challenging topographical conditions 51% of the shares belong to the forest owner association – 49% to partners in the integrated forest-wood chain e.g. saw mills, forest entrepreneurs, craftsmen etc.

10. Biomassehof Allgäu – driving regional development Incentive for its establishment was the investment in a combined heat and power plant for a 20km district heating net Fully automated production of pellets, wood chips, wood briquettes and bark Service oriented marketing leads to an increasing demand for forestry energy products

11. Biomassehof Allgäu – driving regional development Local biomass supply circles developed into a regional biomass supply circle Socio-economic benefit: income and employment generation in the region through an integrated forestry-wood-energy processing chain Environmental benefit: better management of young forest stands=>better stability and vitality of older forest stands

12. Comments on ECCP I outcome – Building the bridge to ECCP II Management activities More dynamic view is needed – adaptation should be about management for change not about strict protection Link with forest fire prevention is not as yet enough recognised Policy guidance Substitution effect deserves higher priority Energy self supply through decentralised heat and power systems based on renewable resources

13. Conclusions Forest owners and the forest based sector are partners in achieving the Kyoto targets of the Community Don´t overlook the impact of climate change on forests! Investment and innovation is needed to improve the logistics for an optimised third market Forest based technology platform

14. CEPF liaison office Brussels Rue du Luxembourg 47 - 51, B - 1050 Brussels Phone +32 (0)2 2190231 Fax +32 (0)2 2192191 office@cepf-eu.org www.cepf-eu.org