Impacts of Policies to Eliminate Illegal Timber Trade

Transcription

1 Impacts of Policies to Eliminate Illegal Timber Trade Ed Pepke Jim Bowyer, Steve Bratkovich, Kathryn Fernholz, Matt Frank, Harry Groot, Jeff Howe Society of Wood Science and Technology International Convention, Grand Teton National Park, Wyoming, USA, 7-12 June

2 Dovetail Mission Statement Dovetail Partners provides authoritative information about the impacts and trade-offs of environmental decisions, including consumption choices, land use, and policy alternatives.

3 Contents Intro Policies to eliminate illegal timber trade US Lacey Act Amendment EU Timber Regulation Australian Illegal Logging Prohibition Act Why certification alone doesn t insure legality Impacts on timber trade Effects on the tropical timber trade Changing trade patterns What is needed to further reduce illegal trade Conclusions Questions, discussion

4 I. Introduction

5 Illegal logging In contradiction with national laws Harvesting, transport, processing, buying, selling Laws on forest management, access to resources, land tenure, environment, labor, commerce

6 Import or export of Illegal timber trade Illegally logged timber Legally logged, but subsequent illegal acts during transport, processing, etc.

7 Costs of illegal timber trade $1 billion/year to US timber trade (Seneca Creek & Wood Resources Intl, 2004) $15 billion loss in revenues in developing countries (World Bank, 2006 $ billion globally (Interpol & UNEP, 2012 Note: no accurate estimation of full costs

8 Illegal Trade of Timber and Illegal Logging You are here Source: UN Environment Programme and Interpol, 2012.

9 Brief history of illegal logging & trade policies G-8 Action Programme on Forests, 1998 G-8 Plan of Action to reduce illegal logging & trade, 2005 FLEG (Forest Law Enforcement & Governance), 2001 FLEGT (with T=Trade) Action Plan, EU, 2003 Lacey Act Amendment, US, 2008 EU Timber Regulation, 2010/2013 Australian Illegal Logging Prohibition Act, 2012

10 II. Policies to eliminate illegal timber trade

11 Lacey Act Amendment, US, 2008 Premier legislation banning illegal timber Throughout wood chain Importing, exporting, buying, selling, receiving Companies to exercise due care to ensure compliance (degree of care necessary) Progressive penalties up to felony

12 EU Timber Regulation, 2013 Prohibits placing illegal timber on EU market Operators (1 st companies) exercise due diligence EU member states enforce and determine penalties via designated Competent Authorities

13 Due diligence systems include Info describing timber e.g. origin, species, quantity, compliance with national laws, etc. Risk assessment of illegal timber Risk mitigation. When risk exists: Additional info Additional verification Systems created in-house or outsourced to Monitoring Organizations

14 Australia Illegal Logging Prohibition Act, 2012 Criminal offence to intentionally import or process illegally logged timber Businesses to practice due diligence Compliment LAA and EUTR

15 Other countries laws Illegal trade specific to timber Procurement regulations for certified wood Japanese Green Purchasing Law, Must import sustainable and legal wood China developing legal verification policy

16 Comparison of policies Same goals to eliminate illegal timber EU & Australia use prescriptive approach Lacey is fact based, so individual company responsible for compliance EUTR accepts FLEGT-licensed & CITES permit None accept certification of SFM alone as proof of legality

17 III. Why certification alone is not sufficient to ensure legality

18 Certification of sustainable forest management Must be legal ownership, harvest to be certified But illegalities can occur after logs leave forest Transport Processing Trade Labor Certification systems modify standards to ensure legality, align with LAA and EUTR PEFC has Due Diligence System beyond EUTR requirements FSC elaborated its definition of legality, and incorporated trade and customs laws

19 IV. Impacts to date on the timber trade

20 Raising awareness of illegal logging & trade Forest sector and beyond Deforestation, illegal logging, trade Value of forest management, periodic harvests, sustainability Support of policies by timber industry Beyond improving image Increasing revenues, sustainability

21 Due diligence systems Greater knowledge of sources of timber Establish increased awareness of risks and their minimization Increased certified forest products Changed some traditional purchasing

22 US: Gibson Guitar Confiscation, court cases Imported of illegal ebony and rosewood from Madagascar, India Claimed improper classification Paid fines, forfeited wood US: Lumber Liquidators. Case in progress UK: Investigating Chinese plywood. Only 1 of 16 UK importers met due diligence requirements. Poplar core legality can t be controlled

23 Substitution Temperate for tropical Appearance Durability Non-wood for wood Alternative, less-stringent markets US Steel promo!

24 IV. Effects on the tropical timber trade

25 Million m3 in roundwood equivalent 900 Global trade of wood and paper Doubled from % drop Source: FAO ForesStat, 2014

26 US$ billion Market share of temperate and tropical timber Based on volume tropical is consistently 17% Based on value, nearly twice as valuable, falling slightly from 34% to 32% in Temperate Tropical Source: ITTO, 2015

27 Million m3 EU tropical timber imports EU tropical timber imports are only 3% of volume Fallen by 66% from 1995 This works against FLEGT Action Plan goals of importing more tropical timber from partners. Industrial roundwood Lumber Veneer Plywood Source: ITTO, 2015

28 V. Changing trade patterns

29 Changing trade patterns Before EUTR in March 2013, heightened buying LAA Raised import prices Reduced tropical imports by 33-75% in volume Changed trading partners, e.g. Brazil, Indonesia FLEGT-licensed timber 2016

30 China World s largest importer of many timber products Must prove legality for US, EU customers in conformity to LAA & EUTR Increased focus on growing domestic demand

31 If legal timber flows to US, EU: RISK Illegal timber to less demanding markets Continue to undermine efforts to reduce illegality

32 VI. What is needed to further reduce illegal trade?

33 Concerted global action! Collaboration between countries Policies Enforcement Realization of benefits of legal trade for increased revenues (timber sector and governments More bilateral partnerships E.g. EU voluntary partnership agreements Bilateral agreements with non-vpa candidates, e.g. China Enforcement of legislation Research into magnitude of problems

34 VII. Conclusions

35 Illegal timber trade Illegal timber trade negatively affects forest sector Sustainability Revenues Image Tremendous social, economic, environmental consequences Confusion of illegality and sustainability lead consumers away from tropical timber, and all timber. More than certification needed to restore confidence.

36 Successful initiatives, but long way to go Government policies attack problem with different approaches LAA, EUTR, Australia next? Strength of policies tested in courts Require consistent enforcement

37 Strive for benefits Communication of policies and their positive impacts Consistent promotion of SFPM for SFM (Sustainable Forest Products Marketing) Build legality into marketing approach

38 The bottom line Governments, backed by legal timber trade, tackling disastrous effects of illegal logging and trade Far-reaching effects Loss of forests & their attributes Loss of revenues for communities, industries, governments Confusion about illegality less environmentally sound choices Effective, enforced policies restored confidence in wood SFPM & SFM: renewable supply of wood & non-wood

39 Questions? Discussion Ed PEPKE, Associate, Forest Products Marketing and Policies Co-authors: Jim Bowyer, Director of Responsible Materials, Steve Bratkovich, Project Manager for Recycling and Reuse, Katie Fernholz, Executive Director, Matt Frank, Program and Research Associate, Harry Groot, Associate, Jeff Howe, Founder and Chairman,