Paperloop/RISI reveal outline for pan-European emissions trading study

SAN FRANCISCO, Oct. 27, 2003 - RISI, Paperloop's, economic forecasting division, today revealed an outline for a study it will publish in collaboration with the leading emissions market consultancy, Point Carbon.

The study, to be published later this month, responds to European Union adoption (July 2003) of a directive establishing a pan-European emissions trading scheme (ETS) from 1st of January 2005 and a "linking proposal" for the inclusion of credits from Joint Implementation (JI) and Clean Development Mechanism (CDM) projects.

It aims to provide an authoritative analysis of the European emissions trading scheme and its impact on the pulp and paper industry in order to answer many of the questions now on the minds of pulp and paper producers in Europe.

Rod Young, senior vice president of Paperloop Information Products and president of RISI, explained, "We plan to launch a joint report to fill an information gap. Producers are understandably anxious to understand how carbon markets are expected to affect the European pulp and paper industry going forward."

Young is responsible for overseeing all of RISI's forecasts for the pulp and paper industry and has directed several multiclient studies over the past 10 years. The report will serve to explain 'cap and trade schemes', 'baseline and credit schemes', and the flexibility mechanisms under the Kyoto Protocol. It will also summarize experiences from other emissions trading schemes such as the U.S. SO2 allowance trading program, the U.K. emissions trading system and the Dutch procurement tenders - Cerupt and Erupt.

The key design features of the European Emissions trading directive will also be scrutinized and the study will provide a carbon (emissions) price outlook. Price forecasts will be simulated for emission trends and the size of EU emissions market will be estimated, as will potential costs to the pulp and paper industry. The potential for internal abatement projects and marginal abatement cost curves will also be included.

A report summarizing research undertaken and its conclusions will be available in both hard copy and electronic formats. In addition, RISI and Point Carbon intend to run a one-day workshop to present the results of the initial study and the potential effects of carbon markets on the European pulp and paper industry. Subscribers to the study will be invited to the workshop as part of the fee paid for the study. Non-subscribers are welcome to attend at a fee, which may later be applied toward purchase of the study.

For further information on "Pan-European Emissions Trading: Impacts on the pulp and paper industry" contact:

Matt Graves
Director, European Sales & Marketing
Paperloop/RISI
mgraves@paperloop.com
Tel: +32 2 536 0747

About Paperloop

Paperloop's mission is to provide the most valued information for and about the paper, pulp, forest, converting and allied industries through the best channels for information exchange. This is achieved through leading industry publications such as the Pulp & Paper and PPI family of magazines and newsletters, RISI, experts in paper/forest products analysis and forecasts, Paperloop's cost benchmarking team, and the foremost website for the paper industry, www.paperloop.com.

Headquartered in San Francisco with offices throughout North America, in Europe and in Asia, Paperloop was created from the former Miller Freeman Pulp and Paper division in February 2000 and leverages deep, relevant experience from well over 100 well-established, leading print and online industry publications as well as conferences and trade shows.

About Point Carbon

Point Carbon is the leading global provider of independent analysis, market intelligence and forecasting in the emerging carbon emission markets. Point Carbon offers standardised subscription-based decision support tools to professional players in carbon markets, directly relating to these players' major financial decisions.

In addition to its subscription-based services, Point Carbon also provides consulting for key customers on selected topics. Point Carbon's analysts have built up competence on the carbon market for more than half a decade through both research and commercial activities. The core competencies of its staff include international and regional climate policy; mathematical and economic modelling and simulation; forecasting methodologies; and methods for expert evaluation. Several thousand companies and organisations across the globe currently subscribe to Point Carbon's products and services.