kerstin canby
DESCRIPTION
Kerstin Canby presentationTRANSCRIPT
Consumer Goods and Deforestation Analysis of Extent and Nature of Illegality in Forest Conversion for Agriculture and Timber Plantations
5th PEFC Stakeholder Meeting 20 November 2014
Kerstin Canby Forest Trade & Finance Forest Trends
Outline
• Consumer Goods and Deforestation Report • Summary of report findings
• Methodology
• Conversion Timber
• Agricultural Commodities
• Update on China and Greater Mekong region
Results: Summary
11/20/2014
* Midpoint estimates used in sensitivity analyses *
Illegality in major countries
11/20/2014
Scope of Impact
Deforestation: 21m ha of tropical forests illegally cleared 2000-2012 in order to supply agro-commodities for export
Climate change: Emissions from illegal deforestataion from commercial agriculture average 1.47 gigatonnes CO2 per year – equivalent to ¼ EU’s annual fossil fuel-based emissions
Trade: Value of agro-commodities produced on land illegally converted from tropical forests estimated at $61 billion / year. Largest buyers: EU, China, India, Russia, US
11/20/2014
Results: Sensitivity analysis
11/20/2014
Results: Commodity exports
11/20/2014
Definition of Legality / Illegality
11/20/2014
Legality determined by laws & regulations of producer countries, at the time of deforestation
Illegalities of past 20-30 years only, directly or indirectly caused by commercial agriculture
Does not include international commitments (ILO 169, UNDRIP, etc)
Does not include customary rights unrecognized by statutory law
Definition of Legality / Illegality
11/20/2014
Only focuses on violations with large impact Issuing of licenses / permit Corruption / bribery Example PNG: Parliamentary Inquiry found 90% Special
Agriculture and Business Leases (SABLs) obtained through corrupt/fraudulent means
Clearance No permit, permit non-compliance, in advance of permit Clearance in prohibited zones Failure to compensate affected communities
Conversion Timber
• Tropical timber in global markets being sourced from land clearance projects
• 13% low 31% medium 49% high scenario
• Role of conversion timber in the profitability of agricultural development projects
• Are the legality issues different from conventional forest concessions?
• More emphasis on early processes of land acquisition, auctions, permitting, degazetting of forest estate
11/20/2014
Conversion Timber
• Mechanisms designed to address illegal logging were designed in the 1990s and early 2000s before agricultural land boom
• Certification standards and legality verification schemes
• VPAs now focussing on this, or are being reviewed
• Engagement of agricultural ministries or land management
11/20/2014
Agricultural Commodities
• Calls to replicate FLEGT mechanisms for illegal agricultural commodities
• EUTR, Lacey, VPA processes
• Impatience with voluntary approaches (RoundTables, RSPO, voluntary Zero Deforestation commitments
• Very different dynamics politically • Fewer number actors, major multi-nationals who are producers /
traders / processors, more money, more political
• Private sector interest in asking governments to get their legal house in order > basic improvements in investment climate
11/20/2014
Agricultural Commodities
• Will the land be “forever illegal”? • Informal processes for conflict resolution
• Blanket amnesty
• Fines
• Offsets
11/20/2014
Outline
• Update on China and Greater Mekong region
China: timber product imports by volume and product type
0
20
40
60
80
100
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
m3
RWE
Mill
ions
Logs Sawnwood Wood chips Veneer sheet Charcoal
Particleboard Wood furniture Fiberboard Plywood Other
China: timber product exports by volume and product type
11/20/2014
0.0
10.0
20.0
30.0
40.0
50.0
60.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
m3
RWE
Mill
ions
Plywood Furniture Fiberboard Flooring Other Joinery Lumber Veneer Sheet
China: Rosewood Imports
0
100
200
300
400
500
600
700
800
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
otherDRCMozambiqueLao PDRMyanmarNicaraguaGhanaTogoBeninGambiaVietnam
Volu
me
100
0 m
3
China: Rosewood Furniture Exports
0
50'000
100'000
150'000
200'000
250'000
300'000
350'000
400'000
450'000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
otherFranceMacauUnited StatesHong KongTaiwanSingaporeJapan
Qua
ntity
China: Timber product imports by volume and source country
0
20
40
60
80
100
120
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
m3
RWE
Mill
ions
Russia Canada New ZealandVietnam United States ThailandEuropean Union Australia AfricaIndonesia Papua New Guinea Other
China: Hardwood log imports
0
2
4
6
8
10
12
14
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
m3
Mill
ions
Middle East/Central Asia
Other Oceania
Latin America/Caribbean
Other Asia
North America
Europe
Other Africa
Malaysia
Equatorial Guinea
Cameroon
Congo
Myanmar
Russia
Solomon Islands
Papua New Guinea
EU-27 timber imports by region and exposure to 3rd party verification (2011)
Includes all products in CN44 (wood) and wood products in CN94 (furniture). Based on FII Ltd/European TTF analysis of Eurostat and data derived from certification/legality system websites and Keurhout
Legality of China Wood Supply
• Illegal harvest not problem in domestic supply – main issue is rights of local people
• Bigger question: how to handle imports from high risk countries?
Legality of China Wood Supply
• Illegal harvest not problem in domestic supply – main issue is rights of local people
• Bigger question: how to handle imports from high risk countries?
Legality of China Wood Supply
• International laws (EUTR, US Lacey) are obliging traders to question government documents in countries that are unable or unwilling to enforce their own laws
• This is not in the draft China State Forest Administration Timber Legality Verification System
• Chinese Forest Management System has just been endorsement by PEFC this year
• Challenge – uptake of FMSystem linked to chain-of-custody and leading to on-label logo use
Vietnam – the next China
• Ministry of Industry and Trade, November 2014: temporary ban on import of logs and sawntimber from Laos and Cambodia starting Dec 8, 2014
