Forest Certification Systems and Trends in the Global MarketplaceGlenn Keays, CEA(SFM), EMS(LA)Senior Consultant, Management Systems & Sustainability

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Information Overload!!

For the next 30 – 40 minutes…

� You will be exposed to statistics on forest certification

� Information on increases and decreases in certification

� Graphs, numbers, acronyms, words…

�But hidden in all of this could be a bit of knowledge!!

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Global Certified Forest Area

Not Certified, 91.7%

FSC, 2.7%PEFC, 5.6%

Status of Global Forest Certification

� May 2009 the global area of certified forest endorsed by one or other of the international frameworks� Forest Stewardship Council (FSC)� Programme for Endorsement of Forest

Certification (PEFC)

amounted to 325.2 million hectares

�Only about 8% of the global forest area is certified

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Percent of Forest Types Globally

Tropical42%

Temperate25%

Boreal33%

What Type of Forests are Certified?

Percent of Certified Forests by Type

114 9

9986 91

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20

40

60

80

100

120

Tropical Temperate Boreal

Per

cent

% Certified % Uncertified

Source: FAO, 2007

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Intact Forest Landscape – GreenDisturbed Forest Landscape – Yellow

Source: Potapov, P. et al. 2008. Mapping the world’s intact forest landscapes by remote sensing. Ecology and Society 13(2):51.

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Trends in Forest Certification - Europe

� 82 million hectares (53% of forest area) certified

� Clear distinction regarding which certification scheme� Large State and Industrial Ownership – FSC� Small Non-industrial Private Ownership – PEFC

� Most PEFC certifications are large group or regional certifications� ~500,000 small forest owners (out of estimate total of 16 million owners)

� No increase in certified forest area in past several years� Appears supply of certified softwood is in excess of end-user demand

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Trends in Forest Certification - CIS

� Russia is a growth area for both FSC and PEFC

� FSC has 19.2 million hectares certified

� FSC Russian National Standard now accredited

� Two forest certification schemes are being evaluated for PEFC endorsement� Russian National Council for Forest Certification (now endorsed)� National Council of Voluntary Forest Certification in Russia

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Trends in Forest Certification – Canada

� 146 million hectares certified to CSA, SFI and FSC

� Canada has the most� Largest area of certified forests in the

world� More fibre originating from certified

forests than any other country in the world

� Canada has 40% of the world’s certified forest area

� Accounts for� 50% of PEFC� 25% of FSC

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Trends in Forest Certification - USA

Forest Land Ownerhip in the US

Private Non-industrial,

58%

Public, 29%

Private Industrial,

13%

Certified Forests in the US

Certified13%

Non-certified

87%

8%Public63%Private Non-industrial29%Private Industrial

Source of Fibre Production

12%Public 0.2%Private Non-Industrial 69%Private Industrial

Percent Certified

A Disc

onnect

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Trends in Forest Certification - USA

� Failure to attract small landowners has resulted in a flattening out of the total certified forest area in the USA

� According to a recent survey, only 12% of US family forest owners have heard of forest certification*

� American Tree Farm is now PEFC endorsed

� The challenge will be to encourage small landowners to work together for group certification in a sector where there is little or no tradition of cooperative action

*(Butler, B. 2006. Family Forest Owners of the United States. A Technical Document Supporting the Forest Service 2010 RPA Assessment)

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Trends in Forest Certification – Other Regions

� Australia� Over 9 million hectares certified� Most to Australian Forestry Standard, which is PEFC endorsed

� Brazil� 6.4 million hectares certified� Mostly softwood plantations in Southern Brazil� FSC and CERFLOR (PEFC Endorsed)

� China� 16 FSC certificates issued, covering 1.2 million hectares� Less than 1% of China’s forests are certified� Chinese manufacturers rely heavily on imported wood products� Imported wood forms a significant proportion of exported wood products� Traceability of imported wood is the key issue

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Trends in Forest Certification – Other Regions

� Japan� National forest certification program – SCEC accounts for 714,000

hectares� There are 26 FSC Certificates covering 280,000 hectares� The total certified forest area is less than 4% of Japan’s total forest area

� Africa� 5.6 million hectares certified to FSC – Gabon, Cameroon, Congo� The Gabonese Forest Certification Scheme is the only PEFC endorsed

scheme in Africa� Malaysia

� Malaysian Timber Certification System was PEFC endorsed in 2009� 4.8 million hectares certified to MTCS

� Indonesia� 900,000 hectares certified to FSC

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Num

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ocat

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Solid Wood Paper Products Other

Certified Locations by Product Type in the USA

SFI

FSC

Market Demand for Certified Forest Products

� The number of FSC and PEFC chain of custody (CoC) certificates issued globally increased by 41% from 2008 to 2009

� Uptake of FSC certification has outpaced PEFC – as of May 2009 there were:� 12,707 FSC CoC Certificates� 5,108 PEFC CoC Certificates

� Significant gains by SFI – from 100 certificates in 2008 to over 400 presently

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Demand for Certified Forest Products

� The most prominent market benefits for CFPs are market access and brand image

� Price premiums for CFPs are an exception in Europe and North America

� Drivers� Green Building Systems – LEED� Certified Paper� Biomass for Energy� Public Procurement Policies� Niche Markets

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Leadership in Energy and Environmental Design (LEED)

� The value of Green Building Construction Starts was up five five-fold from 2005-2008� From $10 Billion in 2005 to $49 Billion in 2008

� Green Building could triple by 2013, reaching $96-$140 Billion

� Currently only recognizes FSC but a review of other standards is being carried out – a lot of pressure to recognize SFI and CSA

� Green Building Council of Australia recognizes FSC and PEFC in their Green Star Certification Program

� Other Green Building Certifications gaining recognition� ANSI, Green Globes, BREEAM, National Green Building Program

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So Where Does This Get Us?

� There is no single reason the world’s certified forest area remains relatively small

� Certified wood products are not commanding prices that will cover the cost of certification

� Information about certifications has been slow in reaching many landowners� Certification is deemed too expensive and complicated for small landowners� However, large companies are beginning to use forest certification as a tool to

guarantee their wood and paper supply is dependable and originates from well-managed sources – market reaction?

� The EU and USA are considering laws banning the importation of wood products from illegally-harvested sources

� Increasing demand created by ‘socially responsible’ business and restrictive import laws will likely encourage the expansion of the world’s certified forest area in the future

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One More Trend to End With…

Global Paper and Paperboard Consumption

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Thank you…Questions?

Glenn Keays, MSc, CEA(SFM), EMS(LA)

Senior Consultant, Sustainability Services

glenn.keays@amec.com

506-450-0168