Illegal Logging : Overview and Possible Issues in the UNECE Region

Transcription

1 Illegal Logging : Overview and Possible Issues in the UNECE Region Presentation at the Joint UNECE/FAO Workshop Sept , Geneva, Switzerland By Carl-Éric Guertin, R.p.f., M.Sc. Communications and responsible trade manager Quebec Wood Export Bureau and Member, UNECE/FAO Team of Specialists on Forest Products Markets and Marketing

2 Quebec Wood Export Bureau A non-profit promotional and technical organization established to stimulate the export of Quebec (Canada) wood products to overseas markets 200 members in 6 sectors : Softwood lumber (sawnwood) Hardwood lumber Hardwood flooring Finished wood products Prefabricated housing Engineered wood products Overseas offices : UK, Belgium, Japan, China

3 Quebec Wood Export Bureau Why illegal logging and illegal activities? Threats for our export members companies? Unfair competition? New trade barriers?

4 Presentation content 1. Awakening of the international community 2. Definition of illegal logging 3. Extent of the problem in the UNECE Region 4. Consequences on the wood products industry 5. Fight against illegal logging & illegal activities 6. Conclusion

5 1. Awakening of the international community Political process G8 Summit in Birmingham WB Ministerial Conference - Indonesia FLEGT Conferences in Europe & Africa - WSSD in Johannesburg - MOU between countries - UK Forest Partnership Action Plan EU FLEGT Action Plan - US President s Initiative Against Illegal Logging - FLEGT in Africa FLEGT in Russia

6 1. Awakening of the international community ENGO s involvement : the organization will continue to support the concept of environmental certification but, from this point forward, will focus future efforts on combating illegal wood cutting. Chris Elliott, director of WWF International s, Forests for Life Program, Atlanta 2002 (Anderson and al., 2002)

7 2. Definition of illegal logging Workshop s definition of illegal logging : Timber harvesting-related activities that fail to respect national and subnational laws and norms that regulate such harvesting (UNECE/FAO 2004)

8 2. Definition of illegal logging Item for the participants of the Workshop to consider regarding the definition of illegal logging Is there a need to an agreed definition? Is there a need to define the gravity of the offences?

9 3. Extent of the problem Production & trade from illegal logging No clear estimates on regional or global level Industry unable to measure illegal logging impact (Random Lenghts International, 2003) Revenue lost by governments : 15 Billions US$ annually (World Bank, 2002) More than 10% of global trade (RIIA, 2003)

10 3. Extent of the problem 3.1 Production in UNECE Region ENGO s : Russia 3 Baltic Countries : The interviewed experts generally agreed with the official provided statistics, but admitted that not all cases of illegal logging are found and documented, thus in reality the amount of illegal harvested or stolen timber could be bigger by %. (2-3 times bigger). (WWF Latvia, 2003) Country Reports Almost all countries - Negligible to less than 1 % 3 countries where fuelwood is a source of energy, illegal logging seems more important. Many countries report decline due to improved policies and efficient control methods.

11 3. Extent of the problem 3.2 Illegally harvested timber imports (extensive definition) ENGO S 50% approx. of the European Union s imports of timber from tropical forests (Fern, 2002) 20% of its imports from boreal forests would be from illegal sources (Fern, 2002) 13% of the timber and wood products purchased by the G8 and China may be sourced timber or traded illegally (WWF, 2002)

12 3. Extent of the problem 3.2 Illegally harvested timber imports Country reports Not significant problem No official data Few countries said less than 5 %, due to imports of tropical where some could be illegal Individual case related to certified products Violation of CITES Producing countries do not have system to distinguish legal vs illegal wood

13 3. Extent of the problem 3.3 Cause of illegal logging Economic condition / poverty in rural area increase dependency on fuel wood rapid money making Non-industrial private forest lack of knowledge of regulations lack of professionals / government support / association of owners rapid money making by selling forest stands without declaring income and paying taxes.

14 3. Extent of the problem 3.3 Cause of illegal logging (Continued) Legislation and governance Inadequate legislation State forest authority s performance Ineffective system for executing penalties Corruption Lack of transparency Lack of ownership / settlement of ownership High cost of imported timber (country with low forest resources) High value of logs / demand for high quality timber Illegal companies and illegal money

15 3. Extent of the problem 3.3 IIllegal activities Figures reported by ENGO s show very important % of illegal logging and illegal activities in some UNECE countries Not only related to forest harvesting Inadequate or fictitiuous documentation Tax evasion Illegal activites goes well beyond forestry sector only

16 3. Extent of the problem Item for the participants of the Workshop to consider regarding the extent of the problem Are the extent and causes (of illegal logging and trade) well known and understood? Do all countries have a specific policy targeting illegal logging?

17 4. Consequences Consumers confidence Timber Production Substitution products Forest Resource Forest Quality Illegal Logging for wood products ILLEGAL LOGGING CYCLE Consequences on : Forest industry : Blue Governments : Yellow Consumers : Red Harvesting levels Logs availability Forest Resource Forest Quality Revenus $ wood $ wood products Unsustainable forest management Unfair competition Profitability Consumers Competitiveness national industry

18 4. Consequences for the wood products industry Demonstrate legality to the marketplace Adopt a procurement policy Trade Association : Statements (AF&PA, FPAC, CEPI) Code of conduct (TTF of UK) Work to identify all their suppliers and fiber source location Develop tracking system / Chain of custody Adoption of Environmental Management System (EMS) : retroaction system Adopt Sustainable Forest Management Certification

19 Items for the participants of the Workshop to consider regarding the consequences for the wood products industry Does illegal logging have a real impact on the pricing of products and capacity to penetrate new markets? If so, where and how strong? Are there more direct effects on the timber industry, and is there a need to quantify them better, in particular for specific products and markets?

20 5. Fight against illegal logging and illegal activities Governments Suspending logging or imports UK Forest Partnership MOU Memorandum of understanding World Summit Sustainable Development European Commission Green procurement policies International cooperation and coordination on trade statistics Information exchange on illegal logging and illegal trade or study of possible measures related to trade

21 5. Fight against illegal logging and illegal activities Item for the participants of the Workshop to consider regarding the fight against illegal logging What role or actions could the UNECE Timber Committee and the FAO European Forestry Commission take with regard to the development of government procurement policies, future memoranda of understanding between producer and importer countries, or initiatives such as those taken by the European Union?

22 5. Fight against illegal logging Item for the participants of the Workshop to consider regarding the fight against illegal logging Would implementation of the proposed controls influence the legitimate markets? Positively or negatively?

23 6. Conclusion International issue No commonly accepted definition Extent of problem still not well known Need multi stakeholders approach Unfair competition? Price decreases? Many mechanisms available - New regulations?

24 Key is transparency Governments - Industry - ENGO s

25 Conclusion Bad governance of the forest sector, including illegal logging, corruption and trade in products resulting from these actions, is harmful to the forest ecosystem, to government authority and revenue, and to those who abide by the law, who are put at a competitive disadvantage. Bad forest governance, including illegal logging, exists all over the world, including in Europe, although its extent and causes are not well known or understood. Governments are beginning to coordinate their action against bad forest governance. (UNECE TIMBER COMMITTEE, FAO EUROPEAN FORESTRY COMMISSION, May 2003)