The EU Action Plan against illegal logging. 3 rd Sub-regional Training on timber Themis Network and REC

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1 The EU Action Plan against illegal logging 3 rd Sub-regional Training on timber Themis Network and REC 2-3 June 2016

2 EU FLEGT Action plan

3 What is it? EU s response to the problem of illegal logging and the trade in associated timber products Forest Law Enforcement Governance and Trade (FLEGT) Action plan published in 2003 >

4 Why such a plan? Forest sector development initiatives weren t working Growing political support Estimate of the revenue losses ($15 bn/year) Understanding of governance and market failures Bali 2001 No silver bullet

5 Key principles Emphasis on legality Recognition of EU s role as consumer Use of the trade lever (demand/supply) Support to development

6 7 elements Development cooperation with timberproducing countries Trade arrangements between the EU and timber-producing countries Public procurement Encouraging private sector action Encouraging financial institutions action Using existing or new EU legislation Addressing conflict timber

7 Evaluation and next steps Started in July 2014 Report published on 4 May 2016 Highly relevant but needs to be adapted to new context, and monitoring and communication to be improved EC initiated a broad consultation (interservice, MS, Parliament and stakeholders) to respond

8 Voluntary Partnership Agreements

9 What is a VPA? A legally binding trade agreement between the EU and a partner country Main objectives: At least all timber exported to EU from the partner country verified as legally compliant Clear legal framework Improved governance and transparency

10 How is it negotiated? Within stakeholders Among stakeholders Bilateral negotiations with the EU

11 What is negotiated? A timber legality assurance system (TLAS) Commitments to improve transparency and other aspects of forest governance Framework for monitoring and evaluating the VPA implementation

12 What happens after signature? Ratification process TLAS development Governance reforms Setting up JIC Licensing starts

13 Implementation status 6 countries implementing a VPA: Indonesia Cameroon Ghana Central African Republic Republic of Congo Liberia 9 negotiating countries: Vietnam Côte d Ivoire Thailand Democratic Republic of Congo Malaysia Gabon Laos Honduras Guyana

14 6 implementing countries (VPA ratified) 9 negotiating countries (VPA not signet yet) 80 % of EU s tropical timber imports 75% of global tropical timber trade

15 To learn more about VPAs Please visit:

16 EU Timber Regulation

17 Key principles Main obligations apply to operators = companies that first place the timber on the EU market Operators are prohibited from placing illegally harvested timber on the EU market Operators must actively assess the risk that timber is harvested illegally (due diligence) Operators must keep records of how they conduct due diligence systems and who they sell timber to

18 Risk assessment/due diligence Information Risk Assessment Species Country / region of harvest Quantity Supplier Buyer Documents/information indicating compliance with laws Assurance of compliance with legislation Prevalence of illegal harvest of species Prevalence of illegal harvest in country Sanctions by UN/EU on timber Complexity of supply chain Risk Mitigation IF risk is greater than negligible, take steps to reduce risk e.g. Require additional information Third party verification

19 What is legal? Laws in country of harvest related to: Rights to harvest timber Payments for harvest rights Relevant environmental and forest legislation includes management plans and biodiversity conservation Third parties legal rights concerning use and tenure Trade and customs laws

20 In practice In the EU, operators need to: Have credible information about the timber in their supply chains and Take account of credible information that indicates timber is illegal Outside the EU, timber suppliers: Are not directly regulated by EUTR Can take the opportunity to provide their buyers with relevant information

21 Enforcement A competent authority in each EU Member State enforces the EUTR Competent authorities carry out checks on operators Risk based approach Checks can result from a substantiated concern EU collaborates with US and Australian enforcement agencies

22 A few clarifications? EUTR applies to EU and internationally sourced timber Only operators must do due diligence EUTR compliant certificate does not exist Contractual requirements for EUTR compliant timber compliance Voluntary legality/sustainability certificate automatic compliance

23 Implementation status CAs nominated in 27 MS A review was carried out by the EC in 2015 (report published): no major change foreseen, more consistent enforcement and scope to be extended More and more cases of investigations and sanctions applied in all MS

24 To learn more about EUTR Please visit the following websites: n.htm

25 EU FLEGT Facility

26 About the Facility Established in 2007 Hosted by the European Forest Institute (EFI) HQs in Barcelona, and offices in Joensuu, Brussels and Kuala Lumpur Funded by the EU and Finland, France, Germany, the Netherlands, Sweden, Spain and the United Kingdom through a multidonor trust fund >

27 What we do The EU FLEGT Facility supports the implementation of the EU FLEGT Action Plan with a focus on VPAs We facilitate VPA processes, working with stakeholders who negotiate and implement VPAs. >

28 What we do Support governments and other stakeholder groups in timber-exporting countries that are considering, negotiating or implementing a VPA Strengthen regional action and cooperation in support of the Action Plan, good forest governance, and international trade in verified legal timber in Africa, Asia and Latin America Support EU work on FLEGT initiatives Assess linkages and strengthen synergies among initiatives stemming from the Action Plan and REDD+, working closely with the EU REDD Facility Support the EU China Bilateral Coordination Mechanism on Forest Law Enforcement and Governance

29 How we do it Informing timber-exporting countries about the Action Plan and VPAs Supporting national dialogue in timber-exporting countries on whether to pursue a VPA Advising partner countries on multistakeholder processes and timber legality assurance systems Assisting in strengthening a partner country's capacity to meet the requirements set out in the VPA Building and disseminating knowledge and information, drawing from lessons learnt and experience gained in VPA processes Commissioning studies on market developments, trade flows, timber legality assurance system testing Collaborating with regional programmes to complement and support actions already taking place

30 Our partners We work closely with the EU REDD Facility, the EU FAO FLEGT Programme and EU member state initiatives We also work with regional initiatives and partners in more than 30 countries in Africa, Asia and Latin America

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32 To learn more about the EU FLEGT facility Please visit our website:

33 For further information, please visit the FLEGT portal: