Feeding Chinas Growing Demand for Wood Pulp Overview of the Project

1
Feeding Chinas Growing Demand for Wood
PulpOverview of the Project
CIFOR Chinese Academy of Forestry
CIRAD-Forêt European Forest Institute CAF-CIFOR
Seminar for EC Asia Pro Eco Project Beijing,
November 22, 2005
2
Project Summary

• Project Title Feeding Chinas Expanding Demand
  for Wood Pulp A Diagnostic Assessment of
  Plantation Development, Fiber Supply, and Impacts
  on Natural Forests in China and the South East
  Asia Region
• Project Partners CIFOR, Chinese Academy of
  Forestry, CIRAD Forêt
• and European Forest Institute
• Funded by EC Asia Pro Eco Programme
• Project Duration 2.5 years (May 2003 December
  2005)

3
China is the worlds fastest growing market for
pulp paper
4
demand for fiber is rising sharply
5
China now promoting development of domestic wood
pulp industry

• Chinese government has taken steps to close
  small-medium sized mills utilizing agricultural
  residues, and is now promoting domestic
  production of wood pulp
• Investments led by APP, APRIL, and Stora Enso
• Government now prioritizing development of a
  fast-growing high-yielding (FGHY) plantation base
  to support forest industry, esp. pulp
• Overall target area 13.3 million ha planted
  (2001-2015)
• Of which, 5.8 million ha is planned for pulpwood
• Will Chinas plantation resource base meet the
  fiber needs of the growing wood pulp industry?
  And at what cost?

6
likely impacts in South East Asia

• Growing volumes of pulp and wood chip exports to
  China
• New investments in greenfield pulp mills and
  capacity expansion at existing mills are
  projected
• Chinese likely to finance a significant portion
  of this new capacity
• In Indonesia, rapid expansion of pulp industry
  has put heavy pressures on natural forests and
  communities
• Potentially huge transformation for
  fiber-producing areas of the Mekong Region and
  Borneo
• ? However, little information is publicly
  available about what is being planned

7
Project Goal

• The project aims to reduce adverse impacts of
  rapid growth of Chinas pulp and paper industry
  on natural forests within China and in the South
  East Asia region.
• The project will do so by supporting resource
  planning in the pulp and paper industry in China
  and in South East Asian that is more
• integrated -- effective -- transparent
• Outputs will be useful to a range of
  stakeholders
• Government policymakers and planners
• Pulp and paper industry groups
• Investment institutions
• Forest trade analysts
• Civil society organizations in Asia and Europe

8
Objectives

• Analyze strategic information on policy and
  market factors driving Chinas growing demand for
  wood-fiber pulp
• Generate information needed for efficient forest
  and land use planning in 2 key fiber supply
  regions of China
• Establish benchmark for assessing fiber supply
  strategies and environmental performance of major
  wood pulp producers in China
• Establish benchmark for assessing Chinas demand
  for wood pulp on natural forests in supplier
  countries in South East Asia

9
Objectives (contd)

• 5. Making relevant information on Chinas pulp
  and paper industry widely accessible in the
  public domain
• 6. Support a regular and effective dialogue among
  stakeholders in China, South East Asia, and Europe

10
Activity 1 Policy and Market Analyses

• Project partners have conducted policy and market
  analyses on major factors shaping Chinas pulp
  and paper sector, and plantation development
• These analyses focus on
• Chinas pulp and paper industry structure, and
  expansion plans
• National government policies and regulations
  related to development of domestic wood pulp
  industry
• Supply and demand trends for pulp and paper
  products in China by key product grades through
  2010
• Chinas natural forest and plantation resource
  base

11
Activity 2 Forest and Plantation Resource
Assessments in China

• CIFOR and CAF have conducted field-based resource
  assessments and GIS spatial analyses in two of
  Chinas main fiber supply regions
• Most of the work has focused on South China
  (Guangdong, Hainan, and Guangxi), with a lesser
  focus on Shandong Province
• These resource assessments have documented and
  analyzed
• Structure of natural forest resource base
• Structure of plantation resource base
• Existing plans for new plantation development
• Projected availability of fiber within a
  commercial radius of major pulp mills

12
1.2 - 5.0 million tonnes of new pulp capacity is
now planned for Hainan, Guangdong, and Guangxi.
Guangxi
Guangdong
Hainan
Can South China provide fiber base to support
this new capacity?
13
Field-Base Resource Assessments
14
GIS Spatial Analysis
15
Activity 3 Assessments of Fiber Supply and
Environmental Performance of Key Pulp Projects

• In the study regions within China, CIFOR and CAF
  have assessed select wood pulp producers fiber
  supply strategies and plantation development
  programs
• These assessments document
• Fiber sourcing
• Existing and planned plantation area
• Productivity levels at plantation sites
• Wood costs
• In South China this has included analysis of
  industrial-scale vs small-holder plantation
  models, and relative costs of alternate fiber
  sources

16
Activity 4 Preliminary Forest Impact
Assessments in SE Asia

• In select countries, CIRAD and CIFOR have
  reviewed existing data to make preliminary
  assessments of impacts of Chinas demand on
  natural forests in supplier regions of South East
  Asia
• Focal countries include Indonesia, Malaysia,
  Thailand, Cambodia, and Vietnam (and possibly
  Laos)
• Assessments include
• Profiles of existing and planned wood pulp mills
• Analysis of wood supply sources and strategies
  for each mill
• Profiles of existing and planned wood chipping
  facilities
• Analysis of plantation development not linked to
  pulp mills

17
Activity 5 Data Base Development

• Project partners are developing a data base to
  make reliable information on Chinas pulp and
  paper industry and associated pulpwood plantation
  development available in the public-domain
• Data-base will include
• Policy and market analyses
• Field-base resource assessments and GIS spatial
  analyses
• Forest impact assessments generated by this
  project
• Reports produced by private sector and government
  agencies
• Copies of key policies and regulations
• Electronic copies will be made available online
  and on CD Rom.

18
Activity 6 Workshops and Networking

• Project partners will facilitate dialogue and
  information sharing among stakeholders both
  within and outside China
• Initially, this included stakeholder meetings
  and/or consultative workshops in Beijing,
  Guangdong, Jakarta/Bogor, Helsinki, Stockholm,
  and Brussels
• To deliver outputs, workshops are being held in
• Beijing
• Haikou
• Jakarta
• Brussels

19
Project Personnel

• CIFOR Christopher Barr C.Barr_at_cgiar.org
• Christian Cossalter C.Cossalter_at_cgiar.org
• CAF Lu Wenming Luwenmin_at_public.bta.net.cn
• Zhang Huaiqing Zhanghq_at_forestry.ac.cn
• Li Jianquan
• Hu Yanjie
• CIRAD Jean-Marc Roda Jean-marc.roda_at_cirad.fr
• Alain Karsenty Alain.karsenty_at_cirad.fr
• EFI Andreas Ottitsch Andreas.ottitsch_at_efi.fi

20
Thank You