“Rainforest Reprieve: The Rainforest Preservation

Agreement Between The World Wildlife Fund For Nature (WWF)

And Asia Pacific Resources International Holdings Ltd.

(April).” ISA 2010: New Orleans

Charles LaffiteauUniversity of Texas at Dallas &

Dublin City University

Rainforest Reprieve

“What are the essential elements of private contract

agreements between environmental NGOs and

Multi-National Corporations (MNCs) that contribute to

their success?”

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Utilize case studies involving the World Wildlife Fund for Nature’s (WWF) agreements to preserve High Conservation Value (HCV)

rainforests in Indonesia

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A less than successful WWF environmental accord with Asia

Pulp and Paper (APP) is examined in addition to the current agreement between

the WWF and Asia Pacific Resources International Holdings Ltd. (April).

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Why private NGO-MNC contracts? Necessitated by the absence of

government institutions with either the means and or the political will to prevent environmental damage caused by illegal logging of HCV

tropical rainforests

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Deforestation is the fastest growing and third largest contributor (18% of total

carbon emissions) to global carbon emissions

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Between 1990 and 2005, the global rate of deforestation averaged about 13 million hectares (130

000 km2) a year.

Rainforest ReprieveEconomic drivers of deforestation:

*South America: large scale commercial production of meat and

soybeans (for livestock feed & biofuel).

*South East Asia: mix of large scale farming of oil-palm (for biofuel),

coffee, pulp & paper production and construction timber.

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“Future atmospheric carbon-dioxide concentrations and consequent climate change depend to a large extent on

the future course of the terrestrial uptake.”

Hurt et al, 2002, p. 1357

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It has been estimated that as much 40% of the wood used

by Indonesia’s pulp and paper mills has been cut

illegally and the Indonesian government has been

powerless to prevent it. Global Forest Watch, 2000

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“Logging, milling, and trading of illegal timber from National parks and adjacent areas are carried out

systematically and in the open, with little or no interference from

Forestry Department officials or the police”

FWI/GFW, 2002, P.34

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A World Bank study finds that unless illegal logging is stopped and legal logging practices in Indonesia improve, there will be no higher quality tropical forest left on the island of

Sumatra by 2011.

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Given the Indonesian government’s inability to stop illegal logging, in 2000, WWF initiated discussions with 2nd largest Indonesian pulp and

paper MNC, April.

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Early talks proceeded slowly and broke off in 2001 when

the WWF discovered that April had begun clear cutting in

Tesso Nilo leading to a boycott and media negative publicity.

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April maintains that it didn’t lose any customers due to

the CNN story and the 2002 boycott, but it acknowledges

that it had to defend its actions to customers.

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Three days after the CNN news crew left Indonesia, April promised to stop all

logging inside Tesso Nilo and to stop building a second

road through it.

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April has also agreed not to log 386 square miles of the rainforest adjoining Tesso

Nilo, effectively doubling the park’s size.

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Today April is developing acacia wood plantations in

areas surrounding Tesso Nilo National Park to supply wood

for its mill on Sumatra.

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WWF ended its boycott in 2006 and visited potential MNC customers like Proctor & Gamble to let them know that April was now a model of corporate environmental

responsibility.

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Fearing the effects of negative publicity, APP agreed to

negotiate with the WWF, and in 2003, APP agreed not to log the most ecologically

sensitive areas.

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But this ended six months later after WWF refused to approve the environmental

management plan, and questioned the figures APP was supplying. WWF then

began lobbying buyers worldwide to boycott APP.

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Rainforest Reprieve

APP entered into a five year partnership with Rainforest

Alliance in 2005 to identify and monitor high conservation value

forest within four concessions managed by APP in Palau Muda, Serapung, Siak, and Bukit Batu.

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Rainforest Alliance made a number of requests for

changes in the management of these areas in the first year of the contract but

found that out APP was not adhering to the agreement.

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Currently a new logging road in Riau Province -- strongly

indicated as illegally built by companies connected to Asia

Pulp & Paper) -- is cutting into the heart of Sumatra's

largest contiguous peat land forest.

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Key findings;1. No NGO-MNC private

contract can account for all environmental concerns so mutual trust and respect must govern such relationships.

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Key findings;2. MNC must agree to be

monitored by NGO and NGO must be willing to compromise its interests

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Key findings;3. An economically sustainable

alternative to illegal logging must be provided for the native population.

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Rainforest Reprieve