Chatham HouseIllegal Logging Update and Stakeholder Consultation

20-21 July 2006

By: Sofie Tind Nielsen & Karen Sau Jespersen

Ministry of the Environment

Forest and Nature Agency

Public Procurement of TimberState of Play in Denmark

Background Evaluation Environment Minister’s 9-point plan Forthcoming guidelines incl. temporary

guidelines Concluding remarks

Content

Background

2003 Voluntary guidelines on public procurement of tropical timber

2005 Evaluation of the Danish procurement policy In collaboration with advisory Steering Committee

comprising the timber trade, public buyers and NGOs 3 studies by outside consultants (project A, B, C)

Evaluation - project designs

Project A User survey + assessment of economic and administrative consequences of possible

amendments

Project B Comparison w. other countries + update on certification schemes

Project C Legal and administrative aspects

www.skovognatur.dk/Emne/Skov/Miljoe/Indkoeb/Expanded_summary.htm

The Danish Environment Minister’s 9-point plan

1. Expand the procurement policy to all kinds of timber

2. Ensure that it will be easier for buyers and suppliers to understand and comply with the requirements for legal and sustainable timber

3. Target guidance towards the different needs of users

4. Encourage trade and procurement federations and other stakeholders to focus on legality and sustainability when purchasing timber

Aim: to improve the guidelines on public procurement of legal and sustainable timber

The Danish Environment Minister’s 9-point plan

5. Encourage all ministers and mayors to develop green procurement policies, which include timber and which follow the recommendations in forthcoming revised guidelines

6. Continue overall efforts to promote green and environmentally friendly procurement

7. Continue to promote public procurement policy on timber in relevant international fora

8. Further promote the certification of forests

9. Further develop and finalise an ongoing timber tracking project in Russia

Forthcoming guidelines Key objectives

Applicable to all kinds of timber

More transparent and clear

Harmonisation

Simpler procurement model

Forthcoming guidelines

Evaluation of: Criteria for legality Criteria for sustainability Certification schemes Alternative documentation

Criteria for legality (Not final)

Logging only where there are legal harvest rights, by the holder of those rights

Complying with regulation on permitted harvest levels, and with environmental and labour legislation

Payment of timber royalties and other directly relevant fees

Respect for other parties’ legal tenure rights that may be affected by timber harvest rights

Complying with the requirements of CITES

Criteria for Sustainability (Not final)

1. Legal, policy and institutional framework

2. Extent of forest resources

3. Forest health and vitality

4. Production functions of forest resources

5. Protection functions of forest resources

6. Biological diversity

7. Socio-economic functions?

To be maintained or improved

Documentation

Certification Standards/criteria Certification Accreditation Traceability Labelling

Alternative documentation Certificates or verification schemes other than the accepted Export permits Certificates of origin Declarations from authorities Declarations from suppliers and subsuppliers and …

Assessment by impartial third party with market insight and knowledge

Procurement model a phased approach

1. Legal and sustainable (best option)

2. Legal and progressing towards sustainable

3. Legal (minimum requirement)

1. Legal and sustainable or progressing towards sustainable

2. Legal (minimum requirement)

Temporary guidelines

For assurance of minimum requirements for legality

UK and Danish legality requirements correspond well

->CSA, FSC, MTCC, PEFC and SFI

Temporary - forthcoming guidelines may alter composition of schemes

Concluding remarks

Guidelines from 2003 are still valid Forthcoming guidelines not yet finalised

Steering committee Public hearing Exchange of experiences

Thank You