Reducing Illegal Wood Trade: the European Union … · FLEGT Action Plan FLEGT . regulation FLEGT ....

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China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention Beijing, China, 27 August 2012 By Ed Pepke Senior Timber Trade Analyst EU FLEGT Facility European Forest Institute Reducing Illegal Wood Trade: the European Union Forest Law Enforcement, Governance and Trade Action Plan Developments © European Forest Institute, 2012

Transcript of Reducing Illegal Wood Trade: the European Union … · FLEGT Action Plan FLEGT . regulation FLEGT ....

China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention

Beijing, China, 27 August 2012

By Ed Pepke Senior Timber Trade Analyst

EU FLEGT Facility European Forest Institute

Reducing Illegal Wood Trade: the European Union Forest Law Enforcement,

Governance and Trade Action Plan Developments

© European Forest Institute, 2012

China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention

Beijing, China, 27 August 2012

Contents I. Introduction II. General market trends III. EU FLEGT (Forest Law Enforcement, Governance

and Trade) Action Plan IV. Causes of illegal logging and trade of illegal wood V. Combating illegal logging and trade VI. EU Timber Regulation VII. Conclusion and discussion

© European Forest Institute, 2012

China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention

Beijing, China, 27 August 2012

I. Introduction

© European Forest Institute, 2012

China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention

Beijing, China, 27 August 2012

© European Forest Institute, 2012

Developments against illegal logging and trade

1999 2000 2001 2002 2003 2009 2010 2004 2005 2006 2007 2008

G8 against illegal logging

East Asia FLEG Bali

Africa FLEG

Yaoundé

Europe & North Asia

FLEG St Petersburg

FLEGT Action Plan

FLEGT regulation

FLEGT implementing

regulation

EU TIMBER

regulation

1st VPA negotiations

Ghana signed 1st VPA

6 VPAs signed

4 VPAs in negotiation

China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention

Beijing, China, 27 August 2012

• Harvesting without permit • Logging against harvest laws • Evading taxes, fees • Removing protected species,

undersized • In protected areas • Not following management

plans

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Illegal logging • Buying & selling illegal

timber • Illegal transport • Illegal processing • Illegal exporting

Illegal trade

China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention

Beijing, China, 27 August 2012

• $15 billion loss annually – Revenues to crime, but – Not to industry – Not to people – Not to governments

© European Forest Institute, 2012

Illegal logging and trade

China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention

Beijing, China, 27 August 2012

Why Europe?

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China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention

Beijing, China, 27 August 2012

World shaped by political boundaries

Source: Worldmapper

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China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention

Beijing, China, 27 August 2012

World shaped by population

Source: Worldmapper, 2009

© European Forest Institute, 2012

China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention

Beijing, China, 27 August 2012

As shaped by forest products imports

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China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention

Beijing, China, 27 August 2012

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EU forest products imports vs global imports (Only industrial roundwood + sawnwood + veneer + panels)

Source: ITTO, 2012.

$ B

illion

China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention

Beijing, China, 27 August 2012

© European Forest Institute, 2012

EU vs. global tropical forest products imports (Only industrial roundwood + sawnwood + veneer + panels)

$ B

illion

Source: ITTO, 2012.

China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention

Beijing, China, 27 August 2012

© European Forest Institute, 2012

0

50

100

150

200

250

300

350

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

TropicalTemperate

Source: ITTO, 2012.

$ B

illion

15.8%

14.0%

14.5%

13.4%

12.7% 11.4%

Percent tropical EU forest products imports (Roundwood + sawnwood + veneer + panels)

2010: $20.4 billion tropical, less than half of 2007 before global economic crisis

China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention

Beijing, China, 27 August 2012

II. European Union FLEGT (Forest Law Enforcement, Governance

and Trade Action Plan evolution

China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention

Beijing, China, 27 August 2012

• EU Forest Law Enforcement, Governance and Trade initiative • FLEGT Action Plan published in 2003 • EU response to the issue of forest governance and illegal

logging • Actions aimed at both production and consumption

– Public and private sector procurement and investment policies – Regulation to allow control of illegal timber entering the EU, i.e. the

EU Timber Regulation – Trade agreements between producer countries and the EU, i.e.

Voluntary Partnership Agreements – Support for tropical producer country governments and industry

FLEGT

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China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention

Beijing, China, 27 August 2012

• Assist countries to evaluate forest sector through inclusive stakeholder process

• Signed with 6 countries • Negotiating with other countries for VPA • Result in FLEGT-licensed timber • EU conducting high-level dialogue on forest issues with

other countries, including China

EU Voluntary Partnership Agreements

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China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention

Beijing, China, 27 August 2012

• Procedures to verify timber produced and exported legally • Legality Assurance System

– Control and independently audit – From harvest to export

• Independent Market Monitoring system – Collect trade and policy information – Analyze market trends – Provide evidence for FLEGT Action Plan functioning

FLEGT-licensed timber

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China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention

Beijing, China, 27 August 2012

© European Forest Institute, 2012

Progress on FLEGT VPAs

China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention

Beijing, China, 27 August 2012

III. Causes of illegal logging and trade of illegal wood

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China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention

Beijing, China, 27 August 2012

• Poor governance • Poor enforcement of national legislation • Corruption • Commercial vs subsistence • Export vs domestic use

Causes of illegal logging and trade

Source: World Bank, 2012.

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China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention

Beijing, China, 27 August 2012

IV. Combating illegal logging and trade

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China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention

Beijing, China, 27 August 2012

• Awareness of problems, causes, extent • Develop integrated justice strategy

– Improve domestic cooperation – Enlist private sector – Engage civil society actors

• Include justice reforms in development assistance programs

Combating illegal logging and trade: Policy recommendations

Source: World Bank, 2012.

© European Forest Institute, 2012

China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention

Beijing, China, 27 August 2012

• Improve international cooperation • Collaborate forest sector stakeholders and

criminal justice sector • Attack corruption • Target vulnerable individuals, groups,

companies, forests • Enforce anti-money laundering • Enforce due diligence system requirements

Combating illegal logging and trade: Operational recommendations

Source: World Bank, 2012.

© European Forest Institute, 2012

China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention

Beijing, China, 27 August 2012

V. EU Timber Regulation

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China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention

Beijing, China, 27 August 2012

• Published in 2010 • Comes fully into force in 2013 • Obligations for operators who place wood and paper

products on the EU market for the first time • Due diligence systems required • FLEGT-licensed timber from VPAs automatically accepted • Applies to intra-EU trade too • Enforcement by each country’s “Competent Authority”

EU Timber Regulation

© European Forest Institute, 2012

China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention

Beijing, China, 27 August 2012

• US Lacey Act Amendment, 2008 • Australia’s Illegal Logging Prohibition Bill, 2011 • Japan and other countries considering legislation • Public procurement policies

Other timber regulations

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China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention

Beijing, China, 27 August 2012

VI. Conclusion and discussion

© European Forest Institute, 2012

China’s Impact on Global Forest Products Trade Society of Wood Science and Technology Convention

Beijing, China, 27 August 2012

www.euflegt.efi.int

© European Forest Institute, 2012

Ed Pepke Senior Timber Trade Analyst

EU FLEGT Facility European Forest Institute

[email protected]