ABSTRACT
This chapter aims to demonstrate that developments in environmental regulation in Europe of eco-labelling and environmental management systems have had worldwide effects on innovative activities in natural resource based industries by firms for whom European markets are important destinations for their products. Pulp and paper constitutes a highly globalised, competitive and diverse industry worldwide. International trade in the pulp and paper industry comprises sales of wood chips, market pulp and paper. The pulp and paper industry has historically aimed at upstream vertical integration in order to guarantee access to virgin fibre. The pulp and paper industry in Brazil is made up of two quite distinct industrial segments. The pulp and paper production chain encompasses wood, pulp and paper production. The general principle of all pulping processes is the same: they are designed to separate the fibres in the wood from the lignin, a natural glue that connects the fibres.
