FLEGT Monitoring IM and IMM. Melissa Othman Tim Dawson

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1 FLEGT Monitoring IM and IMM Melissa Othman Tim Dawson London,

2 FLEGT monitoring landscape & tools Domain FLEGT objectives in producer countries (VPA and non VPA) EUTR FLEGT AP Focus VPA processes: compliance, achievements & progress FLEGT activities in VPA & non-vpa countries VPA impact Markets & trade Implementation & enforcement Overall impact TLAS monitoring ; assessments of progress & results; VPA country annual reports Map of FLEGT projects VPA impact monitoring IMM WCMC analysis Global monitoring

3 VPA Impact Monitoring

4 VPA impact monitoring at a glance A legal obligation defined in each VPA agreement Responsible: EU & VPA countries (implementation sits under JIC) Objective: Monitor the economic, social and environmental impacts of the VPA Frequency of reporting: Not defined by VPA. Defined by JIC. Provides: Safeguarding function Oversight function Impact function Should help provide coherent evidence to guide decision making in area of stakeholder concern around VPA implementation and to enable planning to mitigate any negative impacts

5 VPA impact monitoring at a glance A legal obligation defined in each VPA agreement Example, Cameroon Article 17, Social, economic and environment safeguards for local and indigenous communities 1. In order to minimise any potential adverse effects of the FLEGT licensing scheme on the indigenous and local communities concerned, the Parties hereby agree to assess the impact of this Agreement on their way of life. 2. The Parties shall monitor in particular the economic and environmental impact of this Agreement on those communities, taking reasonable and appropriate steps to mitigate any adverse effects. Annex XI Joint Monitoring Committee (e) ensure assessment of the social, economic and environmental impacts of the Agreement, in accordance with good practice and criteria to be agreed by the Parties, and propose appropriate solutions to any problem identified by this assessment

6 VPA impact monitoring at a glance A legal obligation defined in each VPA agreement Example, Ghana VPA Article 17, Social Safeguards 1. In order to minimise possible adverse impacts, the Parties agree to develop a better understanding of the livelihoods of potentially affected indigenous and local communities as well as the timber industry, including those engaged in illegal logging. 2. The Parties will monitor the impacts of this Agreement on those communities and other actors identified in paragraph 1, while taking reasonable steps to mitigate any adverse impacts. The parties may agree on additional measures to address adverse impacts. Article 19, Role of the JMRM d) Assess the social, economic and environmental impacts of this Agreement, in accordance with relevant good practice and criteria to be agreed by the Parties and address any issues raised as a result of the assessment.

7 Respective impact areas brought for discussion by each party In each country, the EU will seek to ensure that the impact monitoring framework assesses impacts on the following: European Union 1.Institutional effectiveness/ Accountability 2.Illegal logging 3.Forest condition 4.Livelihoods and poverty 5.Economic development

8 Impact areas in agreed frameworks Ghana - EU 1. Revenue generation 2. Forest condition 3. Livelihoods 4. Forest management 5. Forest governance 6. Market structure & performance Cameroon EU 1. Forest condition 2. Livelihoods 3. Revenue (and benefit sharing) 4. Market structure and performance 5. Forest management 6. Forest governance Indonesia - EU 1. Institutional effectiveness & governance 2. Curbing of illegal logging 3. Forest condition 4. Economic development 5. Livelihoods Liberia EU 1. Forest condition and quality (originally separate but merged in baseline process) 2. Livelihoods 3. Revenue and Production 4. Compliance

9 State of play Preparatory work Cameroon X X CAR IM framework Baselines VPA IM Reports Drafts Final Ongoing Final Ghana X X Indonesia X X Liberia X X Laos Myanmar RoC Considered Considered X Vietnam X X

10 Approaches Process to develop the impact monitoring framework Partial preparation work with baselines (Laos and Myanmar) Nationally led - Joint teams and multi-stakeholder working groups, facilitated/supported by consultants (Cameroon, Ghana, Liberia) Working group guided by Ministry with support from consultants. Has consultation elements (Indonesia) Civil society work (Vietnam) Framework National (Cameroon, Indonesia) National and subnational (Ghana) Site based (Liberia)

11 Lessons 1. Starting VPA impact monitoring after concluding negotiations means that important governance gains achieved during negotiations are not well captured 2. Improving data management and archiving systems enables long term, repeatable, robust and effective monitoring of change. However, data management archiving, storing and procedures for coordination are very weak in all the VPA countries 3. Country ownership of the monitoring framework ensures that results feed into policy making; 4. Resourcing of impact monitoring will vary from country to country but information management greatly underestimated.

12 Independent Market Monitoring

13 Independent Market Monitoring Bases Commitment of EC in support of FLEGT Voluntary Partnership Agreement processes IMM is a condition of some VPAs Funded by EC DG DEVCO & hosted by ITTO five year project Objectives Independently monitor FLEGT VPA market impacts Improve understanding of impacts on timber prices, trade and market trends globally Ensure VPA countries & EU provide reliable stats and info Inform decisions by VPA Joint Implementation Committees Contribute to monitoring the impacts of the FLEGT Action Plan and to inform its implementation

14 IMM linkages with VPA processes Indonesia VPA includes ToR on IMM, which Sets objective of IMM to collect and analyse information on acceptance of Indonesian FLEGT-licensed timber in the EU Provides for evaluation of: progress with and impact of policy measures to tackle trade in illegally harvested timber in the EU trends in imports of timber products by the EU from Indonesia as well as other timber exporting countries perception of FLEGT Licensed timber by traders, consumers, specifiers, and other interested parties in the EU market Prescribes biennial reporting to the Joint Implementation Committee (JIC) of the VPA > publication Provide for additional information upon request of the JIC

15 IMM linkages with VPA processes Vietnam VPA includes provision for IMM in the ToR for the Independent Evaluation Independent evaluator to use of the reports of the IMM on the impact of FLEGT licences on trade in timber products to the EU

16 IMM methodology Framework of 52 indicators for quantitative assessment of market impacts Reliance on data from other agencies when available, and primary research where there are gaps On-going review of data needs and sources to identify gaps and potential partners

17 IMM monitoring in VPA countries 6 criteria & 19 indicators Criteria i. Forest resource in VPA Partner country ii. Forest sector investment in the VPA Partner country iii. VPA country export trade iv. VPA Partner share of European imports and consumption v. Competitiveness of VPA Partner timber in the EU market vi. Market perceptions of the VPA Partner

18 IMM monitoring in the EU 9 Criteria & 33 indicators Criteria: i. EUTR effectiveness and impact ii. iii. iv. Voluntary private sector timber procurement policies and codes exceeding regulatory requirements in the EU Development/implementation of public procurement policies Links between FLEGT VPA licensing & product labelling v. Links between FLEGT VPA licencing & Green Building Rating vi. vii. Policy initiatives in non-eu consuming countries Perceptions of FLEGT VPA within the EU viii. Support for FLEGT-licensed timber in EU wood promotion campaigns ix. Impact on forest sector investment flows & guidelines

19 IMM outputs / reports IMM Baseline Report of 2013Report establishing baseline conditions Annual report of , 2017 (pending), covering Forest sector trends in VPA partner countries VPA partner share of global tropical timber product trade VPA Partners in EU timber supply Implementation and impact of EUTR FLEGT licensing in relation to other verification frameworks Network of national correspondents use online surveys and interviews Scoping surveys in 2017, follow-up surveys in 2018 key EU markets, Indonesia and Ghana launched in December 2017

20 With thanks to Rupert Oliver IMM Trade Analyst

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