Sonae Arauco CEO participates in the Dialogue on Forest-based Bioeconomy in Brussels, a European Commission initiative; company supports reinforcing circular bioeconomy policies for climate-smart uses of wood, highlights its CO2-storing wood-based panels

Rui Correia, CEO of Sonae Arauco, was invited by the Executive Vice-President of the European Commission, Maroš Šefčovič, to participate in the Dialogue on Forest-based Bioeconomy, that took place today in Brussels.

A small group of CEOs, European forest industry associations, non-governmental organisations, European forest owners associations, scientists, and policy makers participated in this discussion. Concerning Sonae Arauco and the wood-based panel industry, in the current business environment, is key to show the urgency of fully respecting the “cascading use of wood” principle. This follows the recently published RED III legislation, which requires member states to ensure that woody biomass should be used according to its highest economic and environmental added value in the following order of priorities: wood-based products, extending the service life of wood-based products, re-use, recycling, bioenergy and disposal.

As a forest-based company, Sonae Arauco produces engineered wood-based panels to be applied in furniture, interior design and construction. These products store CO2 throughout their life cycle and, in the end, can be recycled and reintroduced into the production process, extending their ability to store CO2, in a perfect example of a circular bioeconomy model. While delivering to the market this portfolio of products, the company is simultaneously creating economic, social and environmental value.

Nevertheless, according to the available information from the JRC’s “Biomass supply and uses in the EU, 58% of the wood harvested is being used for energy, which means that only 42% ends up being transformed by the industry. This data shows that we are using this raw material linearly, devaluing it and not properly benefiting from its full circular potential. Additionally, in a moment when the world is committed to making the transition to a more sustainable economic model, wood, under a circular bioeconomy approach, will be crucial for the substitution of fossil-based materials in different sectors, accelerating the decarbonization of the economy, while tackling climate and biodiversity challenges.

As a company strongly committed to the circular bioeconomy business model, Sonae Arauco will use this meeting to highlight the importance of reinforcing the development of circular bioeconomy policies in the European Union, aiming for a Climate-smart use of wood.