Terms of Reference for WWF-UK Study

Transcription

1 WWF-UK Registered office The Living Planet Centre Rufford House, Brewery Road Woking, Surrey GU21 4LL Tel: +44 (0) wwf.org.uk Terms of Reference for WWF-UK Study Date: 09/03/2016 Due Date : Title: 01/04/2016 for submission of quotes China as a consumer and processing country: An Analysis of China s Import and Export Statistics, with in-depth China is the world s leading importer of logs and sawnwood, and its exports of wood-based products have tripled in volume and quadrupled in value in recent years (Sun 2014) 1. In the past decade, China s strong economic growth, large population base, and rapidly expanding processing capacity, coupled with export demands from markets in the United States, Europe, Japan, and increasingly in countries in the Middle East and Africa for low-cost furniture, plywood, mouldings, floorings, paper, and other products, has led it to become the wood workshop of the world, capturing almost one third of the global trade in furniture over the last ten years. In order to meet this domestic and export-oriented demand, huge amounts of raw wood materials must be either produced domestically or imported from abroad. Domestic supply of industrial wood has failed to keep up with China s industrial manufacturing capacity due to a low level of per-capita forest resources and the government s policies on the protection of natural forests. Instead, China has imported materials. From 1997 to 2012, Chinese imports of forest products increased from 36 million m3 to 159 million m3 roundwood equivalent (RWE), while total domestic production reached 81 million m3 in 2011 and slightly dropped in China s domestic production capacity is clearly insufficient to meet its growing demand, as the country now imports almost double the amount of forest products and secondary fibre than it produces domestically. 2 China s investments in Africa have exploded in recent years, with outward foreign direct investment (OFDI) stock growing from $1 billion in 2004 to more than $30 billion in Today, Chinese forest investment can be found in 25 African countries, most funding is coming from privately owned small to medium sized enterprises that are harder to regulate, meaning they are less likely to comply with a country s voluntary guidelines for social and environmental safeguards for overseas investment. In addition, Chinese companies have moved upstream, acquiring forest land concessions and setting up local 1 Sun, X (2014) Forest Products Trade between China and Africa: An Analysis of Import and Export Statistics. Forest Trends Report Series Forest Trade and Finance. 2 Ibis 3 africa%e2%80%99s-forests-5-things-know?utm_campaign=wridigest&utm_source=wridigest &utm_medium= &utm_content=learnmore 1

2 factories to directly engage in timber harvesting, resulting in Chinese investments playing a bigger role in forest management in country. The overall objective of this research and analysis is to get a better picture of the flow of potentially illegal and unsustainable timber from China into EU member states. This will be used to inform our work calling for strengthening the EUTR, and to continue to promote action on FLEGT and tackling of global deforestation. We also wish to determine whether Chinese and EU policies have reduced the import of illegal and unsustainable wood products into China; and to examine ways of further tackling the illegal trade in timber through Chinese and European market actions. Using trade research and analysis, we wish to assess the amount of timber going to China from the top 20 exporters and establish the best estimate of what proportion can be expected to be certified, or legally verified (controlled wood), against the background context of illegal logging for each country examined. We then wish to quantify the levels of imported logs and imported sawnwood to China 4, to indicate what amount is being processed in China, and then the volumes being exported to the EU (either directly or indirectly 5 ), examining China s domestic needs for timber over past 20 years. With the aid of this assessment, we would like to analyse: 1) Whether there have been trade shifts possibly due to FLEGT & EUTR. 2) Estimate the likely level of risk of illegal timber entering both Chinese and EU supply chains by reviewing the amount of certified or legally verified timber being traded. 3) The effect of Chinese policy approaches and investments overseas in producing countries. 4) Recommendations for policy and trade actions to further delimit the trade in illegal and unsustainable timber, going via China, to the European market. 5) Look at different wood product types being traded as well as the EU Wood Product demands 6 highlighting any particular concerns. 6) Gather shipping data to see what are the key ports utilised from top exporters to China, and from China to EU. A report would include an analysis narrative of the following background information: A. The nature and source of imports in China for timber a. Imports by major product type b. Imports by species/timber type (e.g. pine or hardwood) with corresponding links to the species and product type exported from China c. Imports by country highlighting top 20 (or more), refer to Illegal Logging and the EU Imports, April 2008, WWF Report (available upon request). B. Exports to EU 28 total volume / value 4 By comparing exporter country data with China importing data to identify discrepancies. 5 Certain degree of difficulty due to mixing of import materials with domestic materials. 6 Illegal Logging and the EU, April 2008, WWF Report. 2

3 C. Exports by product type by HS4 code level (panel, sawn wood, furniture, etc.) (Could go to HS8 level ). To be done for the UK plus for all 28 member states. This would provide a picture of UK / EU imports over time, and the significance of the UK market. We would like to identify the following: D. Of the top 10 countries exporting to China, who are the main exporter s (Companies) and how (what method of transportation is used) and where (what port) is it shipped to in China, as well as identify the ports used to ship to the EU. Then receive: E. Analysis of the evolution and implementation of China s policies on overseas investment in forestry and the effectiveness of this, including focus on VPA countries and their trade with the EU and China, and noting any changes in trade to determine whether there is any evidence that FLEGT and EUTR have had a positive impact in tackling illegal and unsustainable timber from entering EU markets. This study will not provide direct links between what China imported and what it exported to the UK/EU, however it will provide us with the knowledge of who the key trading countries are, who are the main trading companies, what trade routes are taken, and how policies both within China and EU have impacted the trade. The study can help WWF-China colleagues with their work on Green Public Procurement. It is our expectation that robust and credible market data that is as up to date as possibly available is used for the assessment of timber trade statistics (e.g. FAO, EIA, Forest Trends, Global Witness, Chatham House, World Resources Institute, Eurostats, World Bank, ITTO, and other sources). Highlighting the top traders with China (top 20), while also differentiating the traders by hardwood and softwood, or HS codes. Note: EU import data is available for 2015 (calendar year) and would be represented country by country (28 countries), at a product group level. Chinese import data is available for 2014 this would be FAO data and would cover major groups of products. China Customs Data if accessible F. Points 1-6 & A-E above would be communicated through spreadsheets and graphs/charts/tables, with commentary being based on extrapolations and assumptions drawn from the information acquired above plus a literature review. G. Write up (draft & final), lay out and presentation in WWF Living Planet Centre Headquarter Offices in Woking, Surrey, UK. Follow similar report structure as the Illegal Logging & the EU: 3

4 An analysis of the EU export and Import Market of Illegal Wood and Related Products, April 2008, WWF Report (can be provided upon request). Timeline & Budget subject to agreement : Breakdown # of days work Budget Staff costs: Item No of days Daily fee rate Research, drafting and writing of report, presentation to WWF-UK Total Reimbursable Expense Costs if applicable: Item Number Rate Total cost Final cost estimation: Item Staff costs Report Vat on staff 20% Travel (if needed) Expenses Total Cost (GBP) Terms and Conditions 1. Unless otherwise specified, fees for UK-based work will be charged on the basis of days actually worked. Part days will be charged pro-rata on the basis of 7.5 working hours per day. UK-based tasks quoted in weeks will mean 5 working days. 2. Communication charges must be itemized and copy of phone bills provided. 4

5 3. Miscellaneous project expenses may include the following: Telephone call charges, travel to LPC, accommodation, subsistence, but no alcohol charges. Expenses only reimbursed once receipts, tickets and boarding passes supplied. 4. UK VAT will be added at the applicable rate unless the client is able to demonstrate that all goods and services were supplied to an overseas government and that invoices are addressed to the client solely for payment purposes. Payment Schedule: CONSULTANT PAYMENT TERMS (all invoices must be in by mid-june) Schedule of Payments to Consultant Due Date Payment % Total Submission of Report Plan / / 25% X Submission of draft report outputs / / 50% X Final payment on approval of report outputs / / 25% X Total Payment X Please submit quote including CV(s), budget, timeline, methodology, and sample writing by the 1 st of April to: Valerie de Liedekerke Programme Manager Forests WWF-UK The Living Planet Centre Rufford House, Brewery Road Woking, GU21 4LL vdeliedekerke@wwf.org.uk 5