DRAFT MOTION FOR A RESOLUTION

Transcription

1 EUROPEAN PARLIAMT Plenary sitting B7- DRAFT MOTION FOR A RESOLUTION to wind up the debate on the statement by the Commission pursuant to Rule 110(2) of the Rules of Procedure on the conclusion of the Voluntary Partnership Agreement between the European Union and the Republic of Indonesia on forest law enforcement, governance and trade in timber products into the European Union (RSP) Yannick Jadot on behalf of the Committee on International Trade RE\ doc PE v01-00 United in diversity

2 European Parliament resolution on the conclusion of the Voluntary Partnership Agreement between the European Union and the Republic of Indonesia on forest law enforcement, governance and trade in timber products into the European Union (RSP) The European Parliament, having regard to the draft Council decision (11767/1/2013), having regard to the Voluntary Partnership Agreement between the European Union and the Republic of Indonesia on forest law enforcement, governance and trade in timber products into the European Union (11769/1/2013), having regard to the request for consent submitted by the Council in accordance with Article 207(3), first subparagraph, Article 207(4), first subparagraph, Article 218(6), second subparagraph, point (a)(v), and Article 218(7) of the Treaty on the Functioning of the European Union (C7-0344/2013), having regard to the United Nations Declaration on the Rights of Indigenous Peoples (adopted by General Assembly Resolution 61/295 on 13 September 2007) 1, having regard to Regulation (EU) No 995/2010 of the European Parliament and of the Council of 20 October 2010 laying down the obligations of operators who place timber and timber products on the market 2, having regard to the World Bank report "Justice for forests: improving criminal justice efforts to combat illegal logging", of 14 March , having regard to the Human Rights Watch report "The dark side of green growth. Human rights impacts of weak governance in Indonesia s forestry sector" of 16 July , having regard to Rule 110(2) of its Rules of Procedure, A) whereas on 30 September 2013, the Government of Indonesia and the EU signed a Voluntary Partnership Agreement (VPA) on forest law enforcement, governance ad trade in OJ L 295, , p World Bank, Justice for forests: improving criminal justice efforts to combat illegal logging. 2012, pp 5-10, 4 Human Rights Watch, The dark side of green growth. Human rights impacts of weak governance in Indonesia s forestry sector, PE v /6 RE\ doc

3 timber products to the EU (FLEGT), confirming their mutual commitment to ensure that timber entering the EU is produced, harvested and shipped legally, B) whereas VPAs are designed to eradicate illegal logging, improve forest governance, and ultimately lead to the sustainable management of forests, as well as supporting the worldwide efforts to stop deforestation and forest degradation, C) whereas VPAs are intended to foster systemic changes in the forestry sector, rewarding the efforts of diligent operators who acquire timber from legal and reliable sources, and protecting them from unfair competition, D) whereas Indonesia is home to the world s third largest area of rainforests after the Amazon and the Congo Basin, but also the world's third largest emitter of climate change greenhouse gases, due to the continuing and lately rapidly increasing destruction of its rainforests and carbon-rich peat-lands for palm oil and paper, E) whereas Indonesia lost at least hectares of forest over the period from 2009 to 2011, F) whereas only ten per cent by value of Indonesian timber and timber products exports are currently destined for the EU, while the bulk of export is directed towards Asian countries, therefore making the VPA an important standard setter for the entire Indonesian timber industry, G) whereas Indonesia s forest sector is a high-crime sector with substantial risk of money laundering and tax evasion, according to INTERPOL and a World Bank study of 2012; whereas according to Indonesia s 2010 anti-money laundering statute forest and environmental crimes are at a level of tax evasion and corruption as such as to trigger antimoney laundering prosecution; H) whereas according to Human Rights Watch, corruption, tax evasion and money laundering in the forestry sector has cost the country as much as 7 billion USD between 2007 and 2011; whereas the Deputy Chairman of Indonesia s Corruption Eradication Commission (KPK) has described the forest sector as a "source of unlimited corruption" 5 ; whereas Indonesia has, however, made significant progress in recent years regarding the prosecution of financial crimes, as was proved by the Supreme Court conviction for tax evasion of palm oil producer Asian Agri Group in December 2012; I) whereas both parties must agree on the Indonesian Timber Legality Assurance System (TLAS)/ Sistem Verifikasi Legalitas Kayu (SVLK) in order that Indonesian timber and timber 5 Reuters Online News, 17 September 2010, Graft could jeopardise Indonesia s climate deals RE\ doc 3/6 PE v01-00

4 products covered under the VPA can enter the EU market as FLEGT-licensed timber, which is automatically considered legal under the terms of the EU Timber Regulation 6, J) whereas the Indonesian SVLK is currently in a process of revision in order to fulfill the VPA requirements, K) whereas the Commission is empowered under the Commission proposal amending Council Regulation (EC) No 2173/2005 on the establishment of a FLEGT licensing scheme for imports of timber into the European Community 7 to adopt an implementing act through the examination procedure to approve the Indonesian SVLK, 1. Commends Indonesia's enormous voluntary effort to resolve rampant illegal logging and associated trade with the development of its SVLK and especially the significant progress achieved in recent months; remains, however, concerned of persisting problems and retains that the SVLK reform process still falls short to ensure the performance and the integrity of the system and the achievement of the stated objectives of the signed partnership agreement; 2. Notes with concern that less than half of the timber sources in the country have been SVLK-certified to date and that large and increasing volumes of unverified timber from forest clearance for agriculture, and pulp and paper plantations are entering the supply chain; 3. Notes with concern that the SVLK at present does not require segregation between certified timber and non-certified timber and is not auditing every stage of the supply chain, which makes it virtually impossible to secure legality at the mill gate or the export harbour; 4. Considers the issue of forest conversion as an enduring problem of Indonesia s land use governance system; regrets that the SVLK at present is not auditing the process of how concessions for forest conversion are granted to undertakings, especially their conduct of environmental impact assessments (AMDALS) and their compliance with restrictions imposed in the process to obtain forest conversion permits (IPK); 5. Notes with concern that the grading system of the SVLK leads to timber operations certified as legal even when land use conflicts with indigenous peoples and local communities have not been resolved, and that the SVLK at present does not give a specific mandate to the Verification Bodies (VB) to assess whether undertakings have respected local land use rights; 6. Calls on the Commission to make its approval of the SVLK conditional upon the assurance that: 6 Regulation (EU) No 995/2010 of the European Parliament and of the Council of 20 October 2010 laying down the obligations of operators who place timber and timber products on the market 7 COM(2013) 15 final PE v /6 RE\ doc

5 - all timber sources and their complete chains of custody are audited, including the verification that timber undertakings had the right to harvest in the first place, - certified and uncertified timber and timber products are kept separated, - conversion of natural forests for agriculture and pulp and paper plantations is minimized and the legal origin of timber from conversion areas is verified, including the existence of an AMDAL, and/or compliance with its stipulations regulating land use in concession. 7. Takes note that the SLVK at present is not auditing company compliance with Indonesian anti-money laundering and tax statutes although, according to Indonesia s Corruption Eradication Commission (KPK), there is ample evidence that many commercial concessions providing timber for Indonesia s domestic and export markets, of all types, were at best dubiously acquired, and in some cases acquired illegally; retains that as long as corruption in Indonesia remains entrenched at all levels of government, the credibility for the country to issue FLEGT licenses remains at stake; 8. Calls on the Indonesian Government to follow up on its recent determination of enforcing tax laws and to require documentation ensuring that companies exporting timber are in full compliance with Indonesia s tax statutes and the anti-money laundering statute of 2010, in recognition of the goals set out in the FLEGT Action Plan (Area 6 on the Use of Existing Legislative Instruments) even though the VPA currently does not require this and the SVLK at present is not auditing company compliance with these statutes; 9. Notes with concern the lack of up-to-date, transparent and accessible data and maps which hampers good forest governance in Indonesia and results in inconsistent and multiple interpretations of laws and conflicts with local and indigenous communities; underlines that the Independent Forest Monitors need to have access to such basic information in order to credibly perform their role, and that concession maps, cutting plans and copies of permits should be a matter of public record; 10. Calls on the Commission to make its approval of the SVLK conditional upon the assurance that: - a set of clear maps of forest zoning is agreed with Indonesia to determine origin and legal compliance of timber, - verification bodies publish in their summary reports digital copies of all documents, government approvals, maps and data used to assess compliance, - the Joint Implementation Committee ensures that the risk of fraud and corruption is substantially addressed, including through the preparation of a risk-based fraud control plan. 11. Acknowledges the fact that certifications rely almost entirely on the performance of auditors and Independent Monitoring (IM); commends the SVLK for the role it provides officially to Independent Monitoring (IM); notes, however, that the capacity of IM networks is limited in terms of human and capital resources and covers only about 5 per cent of total SVLK certifications issued by verification bodies; RE\ doc 5/6 PE v01-00

6 12. Calls on the Commission to make its approval of the SVLK conditional upon the assurance that auditors and verification bodies as well as the independent forest monitors are adequately funded and trained to ensure regular field monitoring, spot checks and audits; 13. Notes that the Indonesian Ministry of Forestry lacks a clear policy for monitoring, cataloguing, and following up on company violation of the SVLK; regrets that companies found to operate in prohibited ways are in most cases only asked to pass another SVLK audit rather than reported to law enforcement authorities; 14. Calls on the Commission to make its approval of the SVLK conditional to the assurance that independent monitor reports signalling infringements are adequately responded to, and that dissuasive and effective sanctions, including possible criminal prosecution, are imposed for the violation of the SVLK; 15. Underlines that the Independent Monitoring and the respect of the rights of indigenous peoples and local communities are critical factors lending credibility to the SVLK; stresses, therefore, that it is important that this commitment continues and that transparency towards other civil society stakeholders is enhanced, while it must be guaranteed that the independent monitor is able to function and that violence, threats and any form of abuse toward monitors is vigorously prosecuted; 16. Calls on the Commission to make its approval of the SVLK conditional to the assurance that: - stakeholder involvement in the implementation and operationalization of the SVLK is continued and enhanced, - protection for independent monitors, civil society organisations and citizens exposing criminal enterprises engaged in forest crimes is guaranteed, - free, prior and informed consent of indigenous peoples and local communities is in all cases obtained, as a non-negotiable condition for any FLEGT license, - the SLVK audit requirements are regularly updated to incorporate new tenure legislation and in particular the recent decision of the Indonesian Constitutional Court that indigenous people s land cannot be classified as state forest; 17. Instructs its President to forward its position to the Council, the Commission and the Government and Parliament of Indonesia. PE v /6 RE\ doc