The market for timber, paper and pulp in the Asia Pacific - challenges faced in meeting the two pronged challenge of meeting demand and sustainability

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1 The market for timber, paper and pulp in the Asia Pacific - challenges faced in meeting the two pronged challenge of meeting demand and sustainability Alistair Monument FSC Asia Pacific Regional Director a.monument@fsc.org FSC, A.C. All rights reserved May 2012

2 Forest Stewardship Council (FSC) An independent, non-governmental, not for profit organization guided by its multi-stakeholder membership Founded in 1993 after the 1992 UN Conference on Sustainable Development, by concerned business representatives, social groups, and environmental organizations to promote: environmentally appropriate, socially beneficial, and economically viable management of the world's forests FSC, A.C. All rights reserved 2

3 FSC does this through Setting standards for responsible forest and plantation management An accreditation/certification system to monitor adherence to FSC standards A product labeling system that rewards responsible forest and plantation managers FSC, A.C. All rights reserved 3

4 Global FSC certified forest area: by region North America 38.34% of total certified areas (57,780,547 ha) 204 certificates South America & Caribbean 7.51% of total certified areas (11,318,440 ha) 229 certificates Europe 44.16% of total certified areas (66,538,637 ha) 465 certificates Asia 3.44% of total certified areas (5,190,505 ha) 145 certificates Africa 4,84% of total certified areas Oceania (7,296,514 ha) 1.70 % of total certified areas 47 certificates (2,568,660 ha) 35 certificates Total certified area: 150,693,303 ha in 80 countries Forest Management certificates: 1125 FSC National Representation: 65 countries Source: Map FSC Denmark 10/10 Regional values FSC IC 04/16/12 FSC, A.C. All rights reserved 4

5 Support from business and NGOs FSC, A.C. All rights reserved 5

6 FSC Certified supplier companies Worldwide 23,038 FSC Chain of Custody Certificates 107 countries Growth since 2006 helped by mixed label (as of 16 April 2012) FSC, A.C. All rights reserved 6

7 FSC Market impact FSC, A.C. All rights reserved 7

8 Market drivers Private Procurement - Corporate image - Stakeholder pressure Public Regulations - Green Building - International policy Consumer Awareness - Sense of stewardship - Trusted brand FSC, A.C. All rights reserved 8

9 FSC Market value in Europe Percentage of UK Consumers Recognise the logo Knowingly buy FSC products UK logo recognition up to 43% in 2011 FSC, A.C. All rights reserved 9

10 FSC market value in Asia Pacific Percentage of HK citizens 35% 30% 25% 20% 15% 10% 5% 0% 15% 16% 11% 29% Unprompted awareness of FSC in Japan in 2011: 23% Data source: WWF-Hong Kong FSC, A.C. All rights reserved 10

11 HSBC use FSC-certified paper in corporate publications, marketing materials, MPF annual member statements Specify suppliers to use paper products made from FSC paper wherever possible Sustainable Finance HSBC requires Forest Sector clients to be independently certified Use FSC as benchmark for legality and sustainability FSC, A.C. All rights reserved 11

12 FSC and Responsible Procurement UK Government Timber Procurement Policy The Department for Environment, Food and Rural Affairs The Central Point for Expertise on Timber Procurement: London Olympic Games 2012 Sochi Olympic Games 2014 UK BREEAM and EcoHomes/COSH give points for FSC U.S. Green Building Council s Leadership in Energy and Environmental Design (LEED) Hong Kong Building Environmental Assessment Method (BEAM) FSC, A.C. All rights reserved 12

13 FSC and Australia Green Star Green Star Timber Credit One point where at least 95% (by cost) of all timber used in the building and construction works is certified by a forest certification scheme that meets the GBCA s Essential criteria for forest certification; or is from a reused source;; or is sourced from a combination of both Forest Certification Schemes that comply with the Essential Criteria must be accredited by the Forest Stewardship Council (FSC) International or Programme for the Endorsement of Forest Certification (PEFC). FSC, A.C. All rights reserved 13

14 FSC Asia Pacific Regional Office In Hong Kong from January 2011 focusing on: System oversight/credibility Network development Government relations/advocacy Key accounts/companies Using FSC as a market based tool to influence purchasing practices of companies in Asia Pacific and provide incentives for improved forest management in Asia Pacific and elsewhere FSC, A.C. All rights reserved 14

15 Asia Pacific market demand for forest products Solid wood Paper and pulp Amount (1,000 m3 / tonnes) Amount (1,000 m3 / tonnes) Industrial roundwood Sawnwood Wood-based panels Pulp for paper Paper and paperboard FAO, FSC, A.C. All rights reserved 15

16 FSC development in Asia Pacific region Asia Pacific is the region with fastest FSC growth. Now more Chain of Custody certificates in Asia Pacific than North America Since January 2011, Certified forest area increased 42.99% (+2,306,817ha) Chain of Custody certificates increased 20.94% (+919) FSC, A.C. All rights reserved 16

17 FSC certified forest area in Asia Pacific Japan (389,354 ha) 36 certificates Malaysia (501,751 ha) 7 certificates Indonesia (985,333 ha) 16 certificates Australia (972,046 ha) 13 certificates China (2,714,811 ha) 49 certificates Asia Pacific 5.14% of global certified areas FSC forest area: 7,672,382 ha FM certificates: 180 New Zealand (1,499,592 ha) 18 certificates As of 16/4/2012 FSC, A.C. All rights reserved 17

18 FSC CoC certificates in Asia Pacific Total: 5372 (as of 16 April 2012) FSC, A.C. All rights reserved 18

19 FSC Network in Asia Pacific Regional Office in Hong Kong National Offices in Australia, Japan National Representatives in China, India, National Focal Points Sri Lanka, Nepal and Fiji FSC Standard Development Groups in Malaysia, Papua New Guinea and New Zealand Network development activities in Indonesia, South Korea, Taiwan, Vietnam Coordinated fundraising, in particular for standard development FSC, A.C. All rights reserved 19

20 Challenges in Asia Pacific Challenges for FSC uptake in the region How to maintain the credibility of FSC? How to meet demand? (2 new certificates daily) How to connect buyers and sellers? How to get the public choosing FSC????? FSC, A.C. All rights reserved 20

21 How to maintain the credibility of FSC? Oversight of the market Working with ASI, certification bodies and certificate holders to monitor trademark use, credibility of claims and deal with fraud Trademark usage for non-certificate holders System governing the trademark usage by non-certificate holders Online Claims Platform Traceability of each transaction Fiber Testing FSC, A.C. All rights reserved 21

22 How to meet demand? Provide conditions for new forest certification Support the development of new standards Working with business, governments, NGOs and other stakeholders to development new FSC national standards Develop the FSC Network Sub-regional activities Developing capacity in regions Government advocacy Agreements with government agencies FSC, A.C. All rights reserved 22

23 How to connect buyers and sellers? Support key accounts Dedicated staff across the region FSC Marketplace Portal for linking buyers with suppliers operational Q Green Building Standards Worked with green building standards to ensure FSC materials can obtain credits FSC, A.C. All rights reserved 23

24 How to get the public choosing FSC? Market awareness programs With NGOs and companies Marketing materials New market friendly website, templates, and factsheets Partner events Business events and governmental events to promote FSC FSC, A.C. All rights reserved 24

25 China China Working Group since 2007 MoU signed with regulator in 2009 In transition from National Working Group to a Full National Office 3 full time FSC staff Dedicated program to address trademark misuse and fraud Growing domestic market for FSC label FSC, A.C. All rights reserved 25

26 Certified suppliers in China and Hong Kong FSC, A.C. All rights reserved 26

27 Indonesia High rates of deforestation Conversion to oil palm and pulp plantations Huge carbon emissions Potential for FSC to make a huge difference FSC Standard process starting in 2012 FSC National Representation Smallholders program Ecosystem Services Program, including carbon FSC, A.C. All rights reserved 27

28 FSC Policy of Association FSC rules to protect its brand FSC disassociated from APP in 2007 Ongoing NGO campaigns against APP and others Greenpeace solution Establish targets and timelines for reducing the use of paper and packaging and increasing the use of recycled fibre. Where this is not possible, use virgin fibre that is Forest Stewardship Council (FSC) certified FSC, A.C. All rights reserved 28

29 Demonstrated impacts of FSC on the ground Environmental - biodiversity, restoration, chemicals, GMOs, water, High Conservation Values, forest conversion, reduced carbon emissions Social - health and safety, indigenous peoples rights, community rights, development Economic - market access, brand value, premiums FSC, A.C. All rights reserved 29

30 FSC certification and biomass in Borneo FSC certification increases biodiversity and lowers carbon emissions finds the following report: Landscape-Level Evaluation of Carbon and Biodiversity in the Tropical Rain forests of Deramakot Forest Reserve, Sabah, Malaysia FSC, A.C. All rights reserved 30

31 FSC certification and biomass comparison FSC, A.C. All rights reserved 31

32 Great Apes and logging Well- managed, FSC- cer1fied responsible logging concessions in Africa and South East Asia can support healthy and growing great ape popula1ons. finds the following report: Great Apes and Logging (2009) FSC, A.C. All rights reserved 32

33 Impact of FSC certified plantations in Brazil The posi1ve environmental and socio- economic impacts of FSC- cer1fica1on on pine and eucalyptus planta1ons in Brazil outweigh the costs of cer1fica1on finds the report: Impact Assessment of FSC- cer8fica8on on Forest Enterprises in Southern Brazil (2008). Source: A.L. Novaes Keppe, A. C. de Lima, M. Corrêa Alves, R. Fernando Maule, G Sparovek. (2008). FSC Presentation June 21, FSC, A.C. All rights reserved 33

34 Impact assessment of FSC certified plantations in Brazil Posi1ve Impact of FSC- Cer1fica1on Problems related to FSC- Cer1fica1on Worker s quality of life. Compliance with unrealislc federal laws. Compliance with work laws. Cost of cerlficalon. Work health and safety. Much Lme spent on documentalon. More sustainable forest To get subcontractors to adapt to management. standard. PosiLve mindset on natural resource preservalon. - Community relalons. - Access to foreign markets - Closer client relalonships - Source: A.L. Novaes Keppe, A. C. de Lima, M. Corrêa Alves, R. Fernando Maule, G Sparovek. (2008). Impact Assessment of FSC- cer3fica3on on Forest Enterprises in Southern Brazil FSC Presentation June 21, FSC, A.C. All rights reserved 34

35 Our vision The world s forests meet the social, ecological, and economic rights and needs of the present generation without compromising those of future generations Juan Carlos Reyes / FSC FSC, A.C. All rights reserved 35

36 Thank you Alistair Monument FSC Asia Pacific Regional Director office: (+852) mobile: (+852) skype: alistair.monument FSC, A.C. All rights reserved 36