Embed Size (px)
Citation preview
The FLEGT initiative: Progress so far and future directions
Andrew HaywoodEuropean Forest Institute
Background
Timber Legality in Historical Context
Europe and North Asia Ministerial Conference on Forest Law Enforcement and
East Asia Ministerial Conference on Forest Law Enforcement and Forest Law Enforcement and
Governance, Russia
Africa Ministerial Conference on Forest L E f t
Governance (FLEG), Indonesia
Law Enforcement (AFLEG), Cameroond
EU FLEGT Action PlanG8 Action Programme on Forests
1988 2001 2003 2005 2006 2007
VPA negotiationsLaunched: Ghana
VPA negotiationsLaunched: CameroonLaunched: Ghana Launched: CameroonIndonesia and Malaysia
Timber Legality in Historical Context
US Lacey Act amendment
Australian Illegal Logging Prohibition Act
i b l iamendment EU Timber Regulation
2008 2010 2011 2012 2013 2014
VPA ratified:CameroonVPA negotiations
launched: RoCVPA ratified:Indonesia
VPA negotiations launched: Thailand
VPA negotiationslaunched: LaosVPA negotiations launched:
DRC and VietnamVPA ratified: Ghana
gVPA ratified: RoC
FLEGT Action Plan – 7 Elements
D l t ti ith ti b• Development cooperation with timber‐producing Countries
Bil l d (VPA )• Bilateral trade agreements (VPAs)
• New legislation (EU TR)
• Public procurement
E i i t t ti• Encouraging private sector action
• Encouraging financial institutions’ action & f dsafeguards
• Addressing conflict timber
FLEGT – complementary demand & supply side measures
EU Timber Regulation (EU TR)
Voluntary PartnershipAgreement (VPA)
• Prohibits sale of • Ensures export of only illegal timber in the EU since March 2013
legal timber to EU from participating countries
Demand side Supply sideDemand side measure
Supply side measure
European Union TimberEuropean Union Timber RegulationRegulation
Demand side measureDemand side measure
EU Definition
“legally harvested means harvested in accordance with the applicable pp
legislation in the country of harvest”
How is legality defined
EU Definition• Applicable legislation of the country of harvest:
‐ Legal rights to harvestLegal rights to harvest
‐ Payments for taxes and fees related to h ti d ti b t dharvesting and timber trade
‐ Timber harvesting laws including g genvironmental and forest legislation
Third parties’ tenure and use rights‐ Third parties tenure and use rights
‐ Trade and customs rules
Who’s involved?
h C i iThe European Commission
Member states (Competent
Monitoring Organisations
Authorities)Organisations
Industry(operators& traders)
Defining ObligationsFor importers (operators)
1. Placing on the market of illegally harvested timber or timber products shall be prohibited
2 E i d dili th h t d2. Exercise due diligence through system and procedures
3 Maintain and regularly evaluate the due diligence3. Maintain and regularly evaluate the due diligence system
Due Diligence
1. Get information about the supply chain
2. Evaluate the risks of illegal harvested material entering the supply chainmaterial entering the supply chain
3. Mitigate any identified risk
Source: IMM analysis of Global d l & OTrade Atlas & UN COMTRADE
Other Consumer Markets
C d JCanada Japan
South Korea
USA
Australia
Challenges
C k ki i d ’ k• Cant keep working in yesterday’s market– Dynamics of tropical wood market t f d l t d dtransformed over last decade
• Decline in relative role of EU in tropical d i ftrade reinforces:
– Importance of collective action on consumer idside
• Lack of consistent application of policies h k PPP EUTR hacross the market e.g. PPPs, EUTR, other
legislation
Voluntary PartnershipVoluntary Partnership AgreementsAgreements
What is a VPA?
• Legally binding agreement between EU & Partner Countryy
• Objectives:At l t ll ti b ( d t f– At least all timber (per product scope of the VPA) exported to EU from the
t t ifi d l llpartner country verified as legally compliant
– Clear legal framework
– Improved governance and transparency
VPA Process
• Within stakeholders
• Among stakeholders
• Bilateral negotiations ith the EUwith the EU
What is negotiated?
i b l li• A timber legality assurance system (TLAS)
• Commitments to improve transparency and other p yaspects of forest governanceg
• Framework for monitoring and evaluatingmonitoring and evaluating implementation
Steps in building agreement
C t Bil t l A t S t S tCountry consensus building
Bilateralnegotiation
Agreementratification
SystemDevelopment
SystemOperational
•Information •Stakeholders
•Negotiations with EU (political
•VPA initialled•VPA Signed
• Implementation action plans
•FLEGT Licenses • IA reports•Stakeholders
discussion•Country debate and analysis of gaps and
with EU (political and technical level)•Negotiations AMONG stakeholder
•VPA Signed •VPA ratified by EU + country•Enters in force
action plans•Tracking systems and Licensing created•Independent auditor selected
• IA reports•Timber controlled at EU borders•Impacts monitored
challenges •High level national political engagementN ti ti
groups in VPA producer country•Negotiations WITHIN stakeholder groups
•Regular JIC and Technical meetings•Reforms adopted•Capacity established• Progress jointly
• JIC meets regularly and manages agreement (including communication• Negotiation
structure developed and mandated
groups• Comm. of progress
communicated• TLAS assessed•Possibly: VPA Annex revision
communication aspects)
Key Principles
• B ild d t i ti l hi• Build and sustain national ownership • Participation of stakeholders• Framing the process to address problems that national
stakeholders have identified– Requires good identification – prep stages– Result‐oriented and anchored in treatyy– Milestones (roadmap/ work plan) frames debate
• Credibility of agreed solutions in country and EU– Transparency– Transparency– Fostered “buy in” to identified solutions and way forward– Feasibility and robustnessTh bil t l di l t th EC d t d i• The bilateral dialogue sets the scene, EC does not drive but targets consistency and feasibility
FLEGT VPA partner countries
FLEGT licenses (not yet)System developmentFormal negotiationsE t i i t ti ti FLEGT VPA partner countriesEntering into negotiationsPreparation, in‐country consensus buildingIntroduction to VPAsBilateral Coordination Mechanism (BCM)
Honduras
Guyana
Congo C.A.R.CameroonGhanaLiberia Gabon DRCIvory Coast
FLEGT VPA partner countries
FLEGT licenses (not yet)System developmentFormal negotiationsE t i i t ti ti FLEGT VPA partner countriesEntering into negotiationsPreparation, in‐country consensus buildingIntroduction to VPAsBilateral Coordination Mechanism (BCM)
ASEANASEAN
Honduras
Guyana
Congo C.A.R.CameroonGhanaLiberia Gabon DRCIvory Coast
FLEGT licenses (not yet)System developmentFormal negotiationsE t i i t ti tiEntering into negotiationsPreparation, in‐country consensus buildingIntroduction to VPAsBilateral Coordination Mechanism (BCM)
Laos Cambodia
Vietnam
Myanmar
Philippines
Thailand
Malaysia
I d iIndonesia
World’s 23 largest wood product exporters (>80% of global trade)
W dSource: IMM analysis of Global Trade Atlas & UN COMTRADE
Wood export value 2014
Rising % offorest areacertified/verified
Decliningcorruptioncorruption
FLEGT VPA Countries (>80% of wood exported by tropical countries)
W dSource: IMM analysis of Global Trade Atlas & UN COMTRADE
Wood export value 2014
Rising % offorest areacertified/verified
Decliningcorruptioncorruption
VPA: Four Specific Technical Topics
1. Confiscated Timber
2. Transit Timber2. Transit Timber
3. Imported Timber
4. VPAs and Certification
1. Confiscated Timber
Nature of issue• Confiscation followed by auctioning – loopholes
that may encourage illegal practices
– spot auctions, with one bidder, i.e. the thief
– illegal timber laundered onto markets
• Confiscation represents a potentially major challenge to the credibility of FLEGT‐licensed timber if not controlled effectively – e.g.
l bl– limiting its use to public construction projects
– well‐organized and publicized auctions
1. Confiscated Timber (examples)
• Central African Rep blic t t b t bli h d f• Central African Republic: system to be established for monitoring confiscated timber
• Ghana: court order followed by public auctioning > y p gregistered certificate of purchase > tagging of timber
• Indonesia: confiscated timber cannot be FLEGT licensed, used by local governmentused by local government
• Liberia: i) used for public purpose; ii) sold by public auction > authorization needed for timber to enter
l h isupply chain
• Republic of Congo: used for charitable activities
Vi t bli l ti d TLAS d ib t t• Vietnam: publicly auctioned – TLAS describes ten step process that results in issuance of certificates of ownership
2. Transit Timber
N t f th iNature of the issue• Timber transiting (unloaded and reloaded)
through VPA country is not imported and cannot g y pbe FLEGT licensed
• EU customs expect documentary evidence issued by the customs authority of the dispatch countryby the customs authority of the dispatch country showing that the shipment travelled through the territory under customs supervision and left it in th f hil t t i i it i ithe same form whilst retaining its origin
This may require an additional customs procedureThis may require an additional customs procedure in the VPA country – currently discussed in Indonesia
3. Imported Timber
• Nature of the issue
European Union Member States
Non VPA country
Non VPA country
FLEGT Licensing meets EUTR
Operating VPA country
Non VPA country Operating
VPA country Timber placed on market requires due diligence (EUTR)
Non VPA countries
Timber flows under recognised mechanism determined in VPA country
3. Imported Timber
C i VPACoverage in VPA– Art 4 (2): The Licensing Authorities shall not issue FLEGT
licences for any timber products that are composed of, or i l d i b d i d i I d i finclude, timber products imported into Indonesia from a third country in a form in which the laws of that third country forbid export, or for which there is evidence that those timber products were produced in contravention ofthose timber products were produced in contravention of the laws of the country where the trees were harvested.
Solutions• Risked based due diligence systems
– Learning from EU TRLearning from EU TR– Role of operators and government
• Functioning system in IDN since 1.1.2016
4. VPAs and Certification
4. VPAs and Certification
VPA process: raising the foundation for sustainability at a national level
Lays the foundation for SFMy
Foundation for SFM:• Good governance
I d it• Transparency & accountability• Supply chain control• Increased capacity • Supply chain control
4. VPAs and Certification
VPA ll f f l iti f l t• VPAs allow for formal recognition of voluntary certification schemes, if – Standards of voluntary schemes cover VPA legality y g y
requirements– Control procedures (COC) cover VPA requirementsU t h t t d t i h li• Up to each country to determine scheme compliance with TLAS requirements
– Complementary verification measures must beComplementary verification measures must be envisaged in case the scope of certification schemes does not entirely covers TLAS
4 f th i d 5 Af i VPA i i t• 4 of the signed 5 African VPA recognise private certification and verification systems in their TLAS
• Indonesian VPA does not, but synergies in field work, y g
4. VPAs and Certification (examples)
• Cameroon
– Gov regulation for the recognition of certification schemesschemes
– Assessment by national stakeholder committee (standard, verification) > JIC( )
– Equivalence at the level of the certificate of legality (additional verification required at the consignment l l f h i f h FLEGT li )level for the issuance of the FLEGT license)
• Congo
Legality definition criteria of TLAS gets incorporated– Legality definition criteria of TLAS gets incorporated in the existing verification schemes (revision of FSC regional standard, pending)
Challenges
f k h ld h h• Engagement of stakeholders throughout the process
• Maintaining political will • Some problems have no quick fixp q• Cost of compliance• Working with complex supply chains• Working with complex supply chains (SMEs, domestic market)
• Monitoring structures (incl impact• Monitoring structures (incl. impact monitoring)
Implementation Challenges
f f i i• Drop of momentum after negotiations• Lost in complexity• Fading multi‐stakeholder dialogue• Slipping from political to classicalSlipping from political to classical development project dialogue
• Losing sight of governance• Losing sight of governance• VPA seen as the panacea (deforestation, human rights land rights corruption)human rights, land rights, corruption)
• Attention shifting to other initiatives
FLEGT Action Plan and SGD’s
FLEGT Action Plan and SDGs
FLEGT Action Plan and SDGsSDG 8: Promote inclusive and sustainable economic growth, employment and decent work for all
8.3 ‘…encourage the formalisation and growth of micro and small medium sized enterprises’
8.4 ‘…decouple economic growth from environmental degradation’
8.8 ‘protect labour rights and promote safe and secure working environment for all workers’p g p g
SDG 12: Ensure sustainable consumption and production patterns
12.2 ‘achieve the sustainable management and efficient use of natural resources’
12.6 ‘encourage companies… to adopt sustainable practices’
12.7 ‘promote public procurement practices’
12.8 ‘ensure the public have information and awareness for sustainable development’
SDG 13: Take urgent action to combat climate change and its impacts
13 1 ‘ t th ili d d ti it t li t l t d h d d t l di t i ll t i ’13.1 ‘strengthen resilience and adaptive capacity to climate‐related hazards and natural disasters in all countries’
13.2 ‘integrate climate change measures into national policies, strategies and planning’
SDG 15: Sustainably manage forests, combat desertification, halt and reverse land degradation, halt biodiversity loss
15.2 ‘promote sustainable management of all types of forests, halt deforestation’
15 b ‘mobilize significant resources to enhance sustainable forest management and provide incentives to developing15.b mobilize significant resources to enhance sustainable forest management and provide incentives to developing countries’
SDG 16: Promote just, peaceful and inclusive societies
16.3 ‘promote the rule of law and ensure equal access to justice for all’
16.5 ‘substantially reduce corruption and bribery in all their forms’
16.6 ‘develop effective, accountable, and transparent institutions’
16.7 ‘ensure inclusive, participatory and representative decision making‘
16.10 ‘ensure public access to information...’
‘ h l l ’16.a ‘strengthen relevant national institutions’
FLEGT Action Plan and SDGs
• Many of the Action Plan’s action areas t ib t t t th i l tcontribute to strengthening regulatory
frameworks, modernise and formalise forest sectors improve business practices andsectors, improve business practices and worker safety, build capacities, and increase transparency, accountability and p y ymultistakeholder participation in decision making. These advances are major milestones
th d t t i bl i l ion the road to sustainable, inclusive economic growth.
FLEGT Policy Challenges forFLEGT Policy Challenges for 21st Century21 Century
Points of discussion
• Perceptions are that tropical timber is risky ‐measures to encourage a more y gdiscerning market may create an unintended image of tropicalunintended image of tropical hardwoods. How can we expose illegality while at the same timeillegality while at the same time encouraging the use of legal and sustainable tropical timber?
Points of discussion
l i b i b i d d• Legal timber is becoming a standard requirement in many large markets –Wh t h ll d ll lWhat challenges do small‐scale operators still face in accessing and supplying legal timber and how tosupplying legal timber and how to address these?C b f l i i l• Concerns about forest loss increasingly focus on conversion –What can we l /t k f FLEGT t h l ddlearn/take from FLEGT to help address wider land‐use governance issues?
