Indonesia’s second largest pulp and paper company is preparing to start work on a project to restore a degraded peat forest in Sumatra, marking a new direction for the company that has left some skeptical. April has been widely criticized by environmental groups such as Greenpeace, who accuse the paper giant of cutting down natural forests in Sumatra to feed its paper mills. When the company announced its Kampar Peninsula project, local environmental groups such as the Forest Rescue Network Riau (Jikalahari) called the project “greenwashing” and said the company was continuing to destroy forests in other parts of the province.

A WRI analysis of the pulp and paper sector, which is the third-largest energy user in US manufacturing, found that it could cost-effectively reduce its energy use in the Midwest by 25 per cent through the use of existing technologies. Against the US Environmental Protection Agency’s ENERGY STAR® program, nearly two-thirds of Midwest mills fall short of the national average for energy performance. Total annual energy costs could be reduced by $120 million by reducing process energy requirements, capturing waste heat and increasing efficient on-site energy use. This could also have a knock-on effect of boosting production and increasing jobs. The report highlights the ISO 50001 standard which helps companies to introduce and systematically track facility energy performance against targets.

TFT published the following statement on their website with the full report: ‘TFT has carried out a thorough technical study into alleged allegations of APP suppliers clearing forest in West Kalimantan Province and has produced the below report which shows no evidence of any violation of APP's forest clearance moratorium.’

APP has received SVLK timber legality certification on its ninth and final mill. Indonesia’s Timber Legality Assurance System (SVLK) ensures that all exported products are traceable to verifiable points of origin. The EU Voluntary Partnership Agreement (VPA) under which SVLK has been developed is expected to become operational in 2013.

The actor and environmental activist Woody Harrelson is putting his support behind the construction of a $500 million tree-free paper mill in Canada which would produce straw-based paper. Prairie Pulp and Paper, the company behind the project, already produce a copy paper which is 80 per cent waste wheat straw. According to a study they commissioned this paper has a lower environmental impact than 100 per cent recycled paper. However, a representative of the Forest Products Association of Canada thinks wheat paper will be a niche product due to limited availability of waste wheat and the need for the strength and quality in paper that is provided by wood fibres.

The Forest Trust (TFT) has revealed that it is working with Asia Pulp and Paper (APP) on an overall framework for sustainability which includes and goes beyond legal compliance. TFT has previously worked successfully with Golden Agri Resources, Indonesia’s largest palm oil company which sits under the same ownership as APP. TFT plans to publish regular updates once it believes that APP is making significant progress.

The US House of Representatives will vote this week on a bill called the RELIEF Act (The Retailers and Entertainers Lacey Implementation and Fairness Enforcement Act) which would significantly weaken the use of the Lacey Act to regulate against illegal logging by allowing manufacturers to keep illegal wood and limiting the species and country declaration requirements to solid wood (i.e. pulp and paper would be excluded). The article points to World Bank estimates which suggest that government and businesses suffer more than $10 billion in lost revenue each year due to illegal logging, $1 billion of which is lost by the US.

In a speech at CIFOR Indonesian President Yudhoyono admitted to mistakes in policy in the past which encouraged deforestation, but asserted that Indonesia is now set to become a leader in "sustainable forestry". However, CIFOR’s Daniel Murdiyarso pointed out several concerns which weren’t addressed by the speech, including the fact that a reduction in the deforestation rate does not correlate directly with a reduction in emissions: much of Indonesia’s deforestation is happening in carbon-dense peat forests which are targeted for palm oil estates and pulp and paper plantations and deforestation of these areas has a greater impact on emissions than deforestation in other areas.

In a speech at CIFOR Indonesian President Yudhoyono admitted to mistakes in policy in the past which encouraged deforestation, but asserted that Indonesia is now set to become a leader in "sustainable forestry". However, CIFOR’s Daniel Murdiyarso pointed out several concerns which weren’t addressed by the speech, including the fact that a reduction in the deforestation rate does not correlate directly with a reduction in emissions: much of Indonesia’s deforestation is happening in carbon-dense peat forests which are targeted for palm oil estates and pulp and paper plantations and deforestation of these areas has a greater impact on emissions than deforestation in other areas.

According to an Indonesian weekly news magazine the Ministry of Environment is preparing a civil suit against fourteen pulp and paper companies – twelve linked with APP and two with APRIL – for illegally clearing forests on Sumatra. The value of the timber only represents four per cent of the damages being claimed, the balance is for ‘ecological losses’. The Ministry of Forestry is opposing the lawsuit.

Central African Republic and Liberia become the fifth and sixth countries to sign Voluntary Partnership Agreements (VPAs) with the EU. Under the EU Action Plan on Forest Law Enforcement, Governance and Trade (FLEGT), VPAs commit partner countries to establish systems and a licencing scheme to ensure only verified legal timber products (including pulp and paper) are exported from that country from 3rd March 2013 (globally; not just to EU member states). VPAs with Ghana and Cameroon are close to being signed and VPAs with four more countries are currently being negotiated.

Pacific West Commercial Corp are looking to reopen a NewPage paper mill which closed in September last year as it struggled with soaring electricity and shipping costs, a strong Canadian dollar and declining demand. Workers have voted through their union to accept a deal to work on a contract basis.