INTERNATIONAL WORKSHOP What future for forest concessions and alternative allocation models for managing public forests?
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1 INTERNATIONAL WORKSHOP What future for forest concessions and alternative allocation models for managing public forests? Porto Velho, Brazil September 13 16, 2016 Background Forest concessions are an important tool for implementing sustainable forest management (SFM), as 76% of the world forests are public forests 1. Concessions have been the dominant tenure arrangement for public forests managed for timber production, not only in tropical countries but also in some boreal and temperate areas. Well designed and managed forest concessions or alternative tenure arrangements for managing public forests can deliver direct and indirect environmental and social benefits to local populations and to society as a whole. Besides helping to maintain forest cover and providing services such as water storage, biodiversity conservation, and climate regulation, forest concessions can play an important role in the management of conservation units and forest landscapes by helping to strengthen the governmental presence and to formalize property rights in the areas. Better, more equitable and transparent forest concession systems in public forests can also contribute to creating and strengthening inclusive and sustainable forest-based economies that generate benefits at the local and regional levels. However, forest concessions have received a mixed press and lost popularity around the world, largely because many of them have failed to deliver their expected benefits. Criticism has typically centred on issues such as complicated management rules and expectations lack of clear and stable regulatory framework with on-going changes in the rules of the game, lack of transparency, poor performance, low level of direct financial benefits (especially in comparison with other land uses), infringement of rights of local people, inadequate recognition of customary rights and lack of monitoring and enforcement of government regulations. Forest concessions - also called in various countries forest tenure arrangements, forest management agreements etc. - are contracts between the owner of the forest (often the government) and an economic operator, conveying rights (to harvest timber and/or other goods) and obligations (to manage the forest and develop the area). Concessions holders can be private entrepreneurs but also communities not legally owning the land. In spite of that, good examples of forest concessions do exist more often as individual initiatives of forest companies or communities, but also as a result of governmental commitment to implement good practices of sustainable forest management. We have indeed much to learn from these examples. On the regulatory side, simplicity, stability, accountability and transparency in the government-concessionaires relationship are fundamental. On the implementation side, adequate technical and financial capacity to implement and monitor sustainable forest management, including by independent certification of the concession area, are key factors for success. Density of population in the surrounding area, cost of accessing markets and local 1 FAO Global Forest Resources Assessment Main report. Forestry Paper 163. Rome, Italy. 378p.
2 governance patterns inherited from the past are to be factored in when considering the pertinence of the concession regime and the consideration of possible alternatives. Some of the past shortcomings of forest concessions can be overcome through modifications in the design of the concession system. This typically means ensuring good forest governance and institutional arrangements, including appropriate mapping and recognition of customary landholders within the industrial concessions, economic and procedural incentives, improved and more transparent concession allocation processes, better forest management practices, pro-active engagement with local communities, including through provision of social benefits and share of revenues, stricter adherence to international labour standards, active monitoring and enforcement of regulations. Changing market behaviour to reward better practices is also essential. Good mixes of instruments are required and must be tailored to the various contexts to harness the potential of forest concessions or alternative allocation models to deliver more public and collective goods. These and other objective and context-specific changes can be incorporated into new forest management agreements. However, it seems that these changes may not always solve some existing problems in poor governance contexts. The predominant context in which forest concessions were designed and established in the past has changed in most tropical timber producing countries. Market requirements and international agreements on climate change and biodiversity, among others, have called for higher operational standards while opening new possibilities of remuneration for forest products and environmental services. Many concessions have operated for several timber harvesting cycles and will have to implement a different model to properly manage the remaining allocated forest resources. This situation calls for important questions: What s the future for the (traditional) concession management model? What economic and procedural incentives can improve the design and operation of forest concessions? What adaptations or alternative allocation models can be proposed to better adapt to new contexts of tropical countries? The Forest Concessions Initiative The Food and Agriculture Organization of the United Nations (FAO) and the International Tropical Timber Organization (ITTO), the Brazilian Forest Service (SFB), the Center for International Forestry Research (CIFOR) and the Centre de Coopération International en Recherche Agronomique pour le Développement (CIRAD) have launched an initiative to: 1. Explore the future development of tropical forest concessions considering their potential to increase their contribution to socioeconomic development, biodiversity conservation and carbon sequestration; and 2. Propose alternative models to (traditional) concession systems that are sensitive to the needs of local peoples, allow operators to make reasonable profits and to provide stable and attractive employment. This initiative is relevant for a number of ongoing processes, such as the strategies and action plans for reducing deforestation and forest degradation. It is an opportunity to promote sustainable forest management for private investments. It is also an opportunity to take stock of the potential of private and public policy instruments i.e. certification, fiscal instruments, and competitive and transparent bidding - to orient and improve forest contracts and alternative allocation models. As part of this initiative, three regional reports on the situation of forest concessions in selected countries in West and Central Africa, Southeast Asia and Latin America have been prepared, as well as a background document providing preliminary recommendations on how forest concession systems can be improved. These documents will soon be available online for consultation.
3 In addition, a short discussion paper on the main propositions regarding the future of concessions and alternative allocation models for managing public forests will be made available. Finally, an international workshop will be organized to share experiences and discuss key issues. The International Workshop The workshop is scheduled to be organized in September 2016 in Porto Velho, Brazilian Amazon. The workshop offers a unique opportunity for stakeholders to share experiences, present and discuss key issues in tropical forest concessions, ways to overcome them, success factors and lessons learned. Alternative allocation models in public forests will also be discussed. The workshop is targeted at experts and practitioners from governments, private sector, civil-society organizations, donors and international organizations. The objectives of the workshop are: 1. Share information on experiences with f0rest concessions established for different purposes and under different arrangements; 2. Learn from difficulties and failures faced during the design and implementation of tropical f0rest concessions and their causes; 3. Have a better understanding of the economic, social, ecological and political impacts of tropical f0rest concessions at national and local levels; 4. Identify promising elements and enabling conditions contributing to successful f0rest concessions, including alternative models; and 5. Provide initial guidance and recommendations for improving f0rest concessions or advancing the formulation and adoption of alternative models. The 3.5-day workshop will include four technical sessions on days 1, 3 and 4 as well as a field visit to a forest concession area on day 2. Session 1: Overview of the situation of forest concessions and alternative public-private contractual arrangements to manage public forests The session will initiative with the main findings and recommendations from the background and regional reports prepared as part of the Forest Concessions Initiative, followed by a presentation of the discussion paper for this workshop. As next there will be a keynote presentation by the World Bank on its experience and lessons learned with forest concessions around the world. The session will end with an open discussion. Session 2: Experiences with forest concessions for different purposes and under different modalities In this session there will be short presentations of selected cases portraying experiences using concessions or other contractual arrangements for different purposes and under varied modalities. The aim is to learn from those directly involved on the key elements or success factors as well as the difficulties faced. The table below includes a list of cases proposed to be presented, all following a common structure 2. 2 Proposed structure for presentations: a) General context (policy & legal framework, forest resource b) Brief description of the concession system / model c) Main achievements and impacts (economic, social, ecological, political) d) Major difficulties / failures e) Enabling conditions (e.g. incentives, training, research, partnerships...) f) Community involvement g) Partnerships or other arrangements h) Key success factors i) Lessons learned and recommendations
4 Cases 1. Brazil - Forest Concessions in Brazil: Strong Roots but Slow Growth 2. Indonesia - Certified forest concessions of the Kayu Lapis Indonesia (KLI) Group Presenter SFB APHI 3. Gabon - Compagnie des Bois du Gabon (CBG) ATIBT 4. Malaysia Concession for multiple-use: Deramakot Forest Reserve, Sandakan 5. Indonesia Concessions for restoration: PT Restorasi Ekosistem Indonesia (REKI) Sabah Forestry Department Birdlife International Asia 6. Guyana Upper Essequibo Conservation Concession Conservation International, Guyana 7. Guatemala The process of community forest concessions of the Maya Biosphere Reserve and the case of Sociedad Civil Laborantes del Bosque 8. Brazil - Community-based forest cooperative COOMFLONA, Tapajos National Forest ACOFOP (Association of Forest Communities of Petén) COOMFLONA (Cooperativa Mista Flona Tapajos) 9. Ghana - Concessions to small-scale associations Tropenbos International Session 3: Improving forest concessions policies and practices This first working group session is expected to come up with recommendations to improve policies and practices for a new generation of forest concessions by addressing a selection of critical issues or challenges confronting tropical forest concessions today, clustered into the following three themes: (1) Governance of forest concessions, (2) Economics of forest concessions and sustainability, and (3) Improved forest management. Examples of the issues/challenges and possible ways for organizing the recommendations are given in the table below. For each theme (= group) there will be a short presentation for contextualization of the issues, a brief account of the approaches and of examples where innovative responses have been implemented. A set of key questions will be also provided to the group to guide the discussion and formulation of recommendations. The expectation is to have mixed groups, i.e. with participants from different regions and backgrounds. Theme Examples of issues / challenges Possible grouping for recommendations A. Governance of forest concessions B. Economics of forest concessions and sustainability Changing institutional and legal environment Bureaucracy and lack of transparency of concession allocation process Overlapping land rights Invasions of concession areas Inadequate monitoring of the concessions Noncompliance with social standards Local development impacts Potential impacts of new concepts such as IFLs (Intact Forest Landscapes) Timber prices in the market (unfair competition from informal timber markets) Profitability (costs of doing business) Collection of taxes and royalties 1. Government policy and legislation 2. Concession allocation systems 3. Implementation and monitoring 1. Concession design 2. Business model 3. Marketing strategies
5 Theme Examples of issues / challenges Possible grouping for recommendations C. Improved forest management Financial and ecological sustainability after the first felling cycle/rotation What value/benefits of legality and/or certification? Sustainable logging practices, including in economically more challenging areas Regeneration of commercial species Silviculture (sustainability of harvests) Implementation of management plans Waste reduction practices Monitoring and improved operational efficiency Management, harvest and trade of non-timber forest products 1. Nature of today s resource 2. Operational standards 3. Multiple-use forest management Session 4: Enhancing the role of local communities in PPPs through innovative contractual arrangements Building on the information shared and inputs received from the previous sessions and on a proposed theoretical model Concessions 2.0, in this last session participants will focus on alternative allocation models for managing public forests where community and/or customary rights exist. The underlying rationale for alternative contractual arrangements is to design PPP (Public-Private Partnership) mechanisms that recognize the existing rights of local communities and empower them to become partners in the sustainable management of forest resources. The session will address the following questions: o o o How operational is the proposed model? What do the experiences/cases tell us about the challenges and opportunities for the proposed models? What key conditions or elements need to be in place or promoted? What changes in policies, economic instruments and administrative procedures can improve the design and operation of alternative models in each of the tropical regions? After the presentation of the conceptual model Concession 2.0, representatives from the private sector, local communities and forest administrations will express their views on the proposed model in a panel discussion. This will be followed by a working group session organized by tropical region (SE Asia, W&C Africa and Latin America) to formulate recommendations for advancing the contextualization, promotion, finalization and adoption of a Concessions 3.0 promising models which is expected to become a driver for improved livelihoods and sustainable tropical forest management.
6 Programme (tentative) DAY 1 08:00-09:00 Registration of participants 09:00-09:40 Opening remarks Director of the Brazilian Forest Service Local authority (Government of Rondônia) FAO representative ITTO representative 09:40-10:00 Workshop background, objectives, expected outcomes, methodology, programme and participation 10:00-10:20 Coffee / tea break SESSION 1: Overview of forest utilization contracts in tropical regions 10:20-11:00 Main findings and recommendations from the regional reports and background paper prepared as part of the Forest Concessions Initiative (FCI) Introduction to the FCI discussion paper Q&A 11:00 11:30 Keynote presentation Experience and lessons learned with Forest concessions around the world (tentative title) FAO FAO HQ World Bank 11:30 12:30 Open discussion Moderated by SFB 12:30-14:00 Break for lunch SESSION 2: Case experiences with concessions and other contractual arrangements for different purposes and under different modalities 14:00-15:40 Introducing the session Case 1: Brazil Case 2: Indonesia Case 3: Congo Basin Case 4: Malaysia Q&A 15:40-16:00 Coffee/tea break 16:00-18:00 Concession for multiple-use forest Case 5: Indonesia Case 6: Guyana Case 7: Guatemala Case 8: Brazil Case 9: Ghana Q&A 18:00 18:15 Introduction to the field visit SFB 19:00-21:30 Cocktail DAY 2 07:00 17:00 Field visit to a forest concession area in Jamari National Forest SFB 18:30 20:00 Dinner Moderated by ITTO Moderated by CIFOR
7 20:00 22:00 Evening presentations Experiences from the countries (details in preparation) Moderated by IFT DAY 3 08:30-09:00 Synthesis of Day 1 Participants feedback (including from field visit) SESSION 3: Improving forest concessions policies and practices 09:00 09:30 Introducing the session & group organization FAO - ITTO 09:30 12:30 (Coffee/tea break included) Group work 12:30-13:00 Group reporting 13:00-14:00 Break for lunch Theme 1: Governance of forest concessions Theme 2: Economics of forest concessions and sustainability Theme 3: Improved forest management 14:00-15:00 Continuation of group reporting & Plenary discussion SESSION 4: Advancing alternative allocation models 15:00-15:30 Introducing the session & group organization FAO - CIRAD 15:30-15:50 Coffee/tea break 15:50-18:00 Group work DAY 4 09: :30 Group reporting & Plenary discussion 10:30-10:50 Coffee/tea break 10:50 12:00 Towards a collaborative roadmap 12:00-13:00 Main conclusions and recommendations of the workshop Next steps Closure 13:00 - Lunch & Departure of participants FAO
INTERNATIONAL WORKSHOP. What future for forest concessions and alternative allocation models for managing public forests?
INTERNATIONAL WORKSHOP What future for forest concessions and alternative allocation models for managing public forests? Porto Velho, Brazil September 13 16, 2016 REPORT Rome, October 2016 Content 1.
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