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The pulp and paper sector is one of the seven most energy intensive industrial sectors. In the pulp and paper industry, carbon dioxide emissions mainly result from demands for power and steam. The paper industry could achieve reduced emission targets by considering the source of the emissions, replacing fuels, adapting renewable energies, and improving the energy efficiency of the production process. An emission allocation process based on key production steps was developed in which each unit of operation in the papermaking process was related to its share of emissions. Two high-grade paper mills were used as case studies for this allocation process. Because the selected boundaries were comparable, the results could be used by other mills to determine critical emission levels. In addition, the environmental goals of the papermaking industry could be achieved by applying these types of processes.