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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
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
© European Forest Institute, 2012
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?
© European Forest Institute, 2012
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
© European Forest Institute, 2012
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
© 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
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
© European Forest Institute, 2012
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
© European Forest Institute, 2012
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
© 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
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
© European Forest Institute, 2012
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.
© European Forest Institute, 2012
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
© European Forest Institute, 2012
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
© European Forest Institute, 2012
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
© European Forest Institute, 2012
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