Transition to a circular economy

Mari_Pantsar-Rock

According to a Sitra study, the circular economy can bring up to 240 million euros in additional potential to the pulp and paper industry annually, conservatively estimated, says a director at Sitra. Mari Pantsar-Kallio.

Mari Pantsar-Kallio worked as an environmental specialist and leader of the global environmental analyst team at UPM from 2000 to 2007.

"Even back then, UPM was considering what could be done with wood. I think the company has succeeded quite well in renewing itself in line with its Biofore strategy."

In November 2014, Sitra published an extensive study on the opportunities of the circular economy for Finland in various sectors, including the pulp and paper industry. The circular economy aims to plan the sustainable use of resources. Less environmentally harmful and production-unprofitable waste would be generated if materials were utilized efficiently in production and waste was minimized.

The potential that the pulp and paper industry gains from the circular economy is a conservative estimate, as no one knows what kind of products will be produced in the future in a circular economy that efficiently recycles biomass and optimizes production side streams.

“Our study has only really assessed how the sector's efficiency and productivity would increase if materials could be upgraded to higher-value applications and waste recycling were developed.”

The energy efficiency of production facilities in the industry is already relatively good. Even a small improvement in efficiency and in the recovery and utilization of side streams will bring significant savings. Instead of process waste, the industry prefers to talk about side streams.

It is more difficult to assess the potential that cooperation between different actors can bring to the circular economy, for example through so-called industrial symbioses. In this case, the production area would consist of representatives of several industries, which would make the best possible use of all the raw materials coming into the area. Such a production ecosystem could be, for example, the Metsä Fibre bioproduct mill planned for Äänekoski.

The EU took a timeout

Shortly after Sitra's November report, it became clear that the European Commission would return the so-called circular economy package for materials recycling, which it had already set for 2016, to new preparation.

"The announcement was initially disappointing for us. Especially since we had just made a major statement on the matter ourselves."

According to Pantsar-Kallio, it can still be considered a good signal that the European Commission has announced that it will return to the issue within a year with an even more ambitious package.

Text: Jaakko Liikanen
Photo: Sitra