China updates

Xiufang Sun

Chatham House illegal Logging Updates and Stakeholder Consultation

London Jan 26 2007

China updatesRelated policy trends & stakeholders’ involvement

• Economic development – to build a resource/energy saving and environment friendly society

• Market measures related:– New tariff policy effective on Nov.1 2006

• 10% temporary export tax on wood flooring, disposable chopsticks and wood chips

– Cancelled or lowered export tax rebates on hundreds of products, effective on Sept. 15 2006

• Cancellation of tax rebates for Charcoal, railway sleepers, wood tools

• Reduction of tax rebates to 11% for wood packaging, wood doors & windows, plywood, laminated wood floorings

– 5% consumption tax on solidwood floorings and disposable chopsticks effective in March 2006

Government relevant initiatives

Government relevant initiatives -2

– Green procurement policy- eco-labeling, effective on Jan. 2007

• The central & provincial governments are asked to give priority to products proven to be environment-friendly

• Wood based products, including wood based panels, wood floorings, and furniture, make up about 25% of total labeled product categories

• Standards –protection of consumers’ health, environment, energy & resources saving,etc. – nothing on legality of wood sourced

In forestry sector…

– Tenure reforms in collective forest areas - Experiences with provinces of Fujian & Jiangxi show

• Larger share of forestland is now managed by household & farmer groups

• Increasing share of forest income for farmers• Higher harvest level, boost timber production & increased

afforestation by farmers• Lead forest authority to refine policy regulations, rather than

simply enforce existing regulations – logging quota system

– China’s forest certification scheme

In forestry sector…

– High level national leader commitment to international cooperation, e.g. China-EU summit, participation in international processes –FLEG

– Bilateral Communications with key timber producing nations, Russia, Indonesia, Myanmar

– SFA initiated forest policy dialogue – Trade watch and information exchange program initiated by SFA

to publicize trade info & raise awareness of public & industry on sustainability

– MofCom set up a task force working on “Sustainable Development: China and Global Markets” , forest products is one of the three commodities to be studied.

– In general : not clear which ministry is the leading coordination body for the issue, SFA – forestry related technical, MofCom – trade, not priority for any ministry

More directly relevant, what is being done

What can be done further

– More active cooperation with relevant countries

– Educating Chinese enterprises overseas – Better coordination among different

government agencies– Establishment of info exchange network

among timber producing and importing countries

– More research, better data available

What can be done further

Industry/private sector

• WWF/GFTN, TFT, work with Chinese companies on tracking wood sources

• Increasing number of Chinese companies go for CoC

• Market driven

• In general: Low awareness of IL & trade

Industry/private sector

Civil society

• International NGOs play the key role– IUCN, WWF, TNC, CI, FT, Greenpeace, etc.

• Local NGOs limited in numbers and capacity

• Academia– CAF, BFU, CASS – relevant research

Civil society

Forest Trends’ related activities in China

• Studies– China in the Global Market: Trends and Implications for Forests and Livel

ihoods• Market and policy analysis

– Market trends, commodity chains (Russia, Indonesia, Myanmar)– Livelihood impacts– Policy constraints

• Informal network of analysts

– Policy Briefs

• Technical supports, awareness raising– Dissemination of studies, e.g. workshops, conferences – Multi-stakeholder training workshop on ENA FLEG Oct 2005– Technical Experts Information Sharing Workshop Sept 2006

Forest Trends’ related work in China

Work Program and Information Sharing WorkshopWork Program and Information Sharing Workshop

more information @

www.rightsandtrade.org

www.forest-trends.org

Thank you