European Pulp and Paper Industry Urges Freeze on EU ETS Benchmarks

June 16, 2026 (Press Release) - Like other manufacturing sectors and many national governments, the European pulp and paper industry has called on the European Commission to maintain the current EU Emissions Trading System (ETS) benchmark values for the 2026-2030 period. It could otherwise lose an annual EUR 1 billion in decarbonisation investments, warned Cepi (Confederation of European Paper Industries).

The European pulp and paper industry has a strategic advantage in supporting the EU's objective of climate neutrality by 2050. In 2023, the EU bioeconomy was valued at EUR 2.7 trillion, accounting for 5% of the EU's GDP, and is expected to grow rapidly, presenting a EUR 6.6 trillion opportunity globally, which will capitalise on divestments from fossil fuels but also materials. It is a rare industry where the EU still has a competitive advantage.

But a recent EU Commission proposal to adjust its key climate policy the EU ETS, discussed [June 15] at the EU Council, fails to consider this potential. It includes updating ETS benchmark values, with almost the entirety of the pulp and paper industry facing reductions of 50%, the highest possible update rate. Such adjustments, based on data from 2021-2022, fail to account for the unique challenges faced by energy-intensive industries amid soaring energy costs and geopolitical instability.

These also directly threaten the competitiveness of the European pulp and paper industry as companies outside of Europe do not face the same carbon costs. Recent reports show that 80% of global carbon cost is paid by European operators and consumers.

"Working with the EU ETS as an investment incentive, we have reduced greenhouse gas emissions by more than 50% since 2005," said Jori Ringman, Cepi Director General. "But the rest of the road to net zero emissions by 2050 will be harder, and the proposed benchmark reductions, based on now obsolete projections which do not reflect current market conditions, could make success almost impossible."

As they have long used the ETS mechanisms to finance investments, pulp and paper producers now call for 2021-2025 ETS benchmark values to be applied unchanged to the 2026-2030 period, to ensure continued progress toward decarbonisation without compromising competitiveness of a sector that is key to the EU's post-fossil future.

Despite its success in cutting fossil energy sources, pulp and paper industry expects deeper industrial decarbonisation to require annual investments seven times larger than current ones. Problematically, the ETS as calibrated in the Commission's proposal risk doing the opposite, cutting EUR 1 billion out of the pulp and paper industry's annual investment capacity and resulting in extended payback periods. For instance, an investment exceeding EUR 250 million in a single mill to achieve 98% fossil-free production would, at a carbon price of EUR 70 per ton of CO?, yield annual savings of approximately €10 million, resulting in a payback period exceeding 25 years.

Furthermore, many pulp and paper installations rely on secondary biomass, the bio-based waste from papermaking, to produce heat. A 95% biomass threshold for exclusion from ETS already penalises early adopters by removing access to 'free allowances' needed to cushion previous investments, resulting in incentives for companies to potentially delay the transition away from fossil sources of energy.

Brussels-based Cepi is a non-profit association representing the paper industry in Europe. Cepi is managed by a 33-person Board and is composed of representatives of National Associations and Chief Executive Officers. The Board is currently chaired by Marco Eikelenboom, CEO of Sappi Europe.

SOURCE: Cepi

UPM Plans Temporary, Market-Related Downtime at Pulp Mills in Finland

June 18, 2026 - UPM today announced that it will temporarily shut down UPM Kaukas pulp mill as of August 3 for approximately six weeks. In addition, a potential temporary shutdown of the UPM Pietarsaari pulp mill is being planned for October.

In a press release, UPM said, "These shutdowns are intended to optimize production levels and wood sourcing and to ensure profitability in the current market and cost environments."

UPM Kaukas

The Kaukas pulp mill is located in Lappeenranta in South East Finland. The pulp mill has the capacity to produce 700,000 tonnes per year of softwood pulp on two production lines. The mill site also consists of a paper mill (shutdown in 4Q 2025), a sawmill, a biorefinery producing wood-based diesel and UPM's research centre.

UPM Pietarsaari

The Pietarsaari pulp mill is located in the Gulf of Bothnia in western Finland. The mill has the capacity to produce 800,000 tonnes per year of softwood and birch pulp. The mill site also houses UPM's Alholma sawmill, Alholmens Kraft power plant and UPM's wood procurement offices.

UPM Fibres consists of UPM's pulp and timber businesses as well as wood sourcing and forestry operations. UPM Pulp has three pulp mills in Finland and two pulp mills and plantation operations in Uruguay.

SOURCE: UPM

Stora Enso Plans to Close Softwood Pulp Line 3 at Skutskär Mill in Sweden

May 25, 2026 - Stora Enso today announced plans to permanently close softwood pulp production on fiberline 3 (L3) at its Skutskär pulp mill in Sweden. The company also said that it will restructure the mill to focus on fluff and increase competitiveness.

Change negotiations with union representatives at the Skutskär mill are starting.

According to Stora Enso, softwood pulp demand in Europe has declined since 2023 and price levels have been dropping while wood costs have increased. Currently, Skutskär's fiberline L3 softwood pulp operates at negative margins, and its profitability is expected to remain unsatisfactory also going forward.

"We have examined a number of options to improve the financial situation of fiberline 3. However, none of these options have proved feasible in ensuring long-term cost competitiveness for L3," explained Timo Tidenberg, Head of Stora Enso's Business Unit Skutskär, Stora Enso. "Our goal is to focus on fluff pulp on our two other production lines to improve the long-term competitiveness of the production unit."

The planned L3 closure and the reorganization would impact a maximum of 80 employees at Skutskär.

Stora Enso said the plan is to stop production during Q3-Q4 2026, subject to the completion of the change negotiations and fulfillment of customer orders. Fluff pulp production will continue operating as usual, while potential further expansion is being investigated.

The Skutskär mill operates within Stora Enso's "Biomaterials" business area. Located in Skutskär, Sweden, the mill has the capacity to produce 515,000 tonnes per year of fluff pulp and paper pulp. It employs about 370 people.

Stora Enso is a global leader in renewable materials with a strong focus on packaging. The company designs and delivers competitive, high-quality packaging materials and solutions made from fresh and recycled fibers.

SOURCE: Stora Enso

CellMark Appoints Neil Gosbee as New President of the Pulp Division

April 17, 2026 - CellMark announced the appointment of Neil Gosbee as the new Division President of the CellMark Pulp Division. The appointment became effective April 15. Gosbee succeeds Doug Smith, who is stepping down from the role as part of a natural leadership transition following his appointment as President and CEO of CellMark in October 2025.

Gosbee has been with CellMark since 2016 and has played a key role in strengthening the company's pulp platform. He has been instrumental in securing new supply and driving commercially successful outcomes, contributing to some of the Pulp Division's strongest results to date.

With prior experience working for two pulp producers, Neil brings a distinctive supplier?side perspective that enhances the Pulp Division's ability to understand market realities and deliver practical, value?driven solutions for both suppliers and customers.

During his tenure at CellMark, Gosbee has consistently demonstrated strong leadership and effective people management, fostering collaboration while driving performance across both strategic and operational priorities.

Smith commented, "I am exceptionally pleased to be naming Neil as my successor. Neil has demonstrated that he is a strong leader and has helped the Pulp Division achieve some of its most profitable results to date."

CellMark is an independent sales solution company providing products, services, and solutions to customers and suppliers all over the world. CellMark provides a full suite of services and runs several successful international divisions within the areas of pulp, packaging, paper, recycling, chemicals, and basic materials. CellMark trades over 7 million tons of products annually with revenue of over USD 3.7 billion.

SOURCE: CellMark