ECOWAS Workshop on Sustainable Wood Energy Management

Cotonou, Benin, 9-11 May 2016

Legal and Regulatory Experience on Export of Wood Products – (Charcoal)

Kwabena A. Otu-Danquah Ag. Director, Renewable Energy & Energy Efficiency

Energy Commission, Accra, Ghana

BRIEF OF DESCRIPTION OF GHANA • Location

Latitudes 4o 44’N and 11o11’N and Longitude 3o 15W and 1o 12’E.

• Area (Land: Water)

238,539 km2 (235264 km2: 3,275 km2)

• Climate (Average Temperature: Average Rainfall) Tropical with 2 major seasons dry and wet (30oC: 807mm)

• Population (2014): 27.04 Million. Growth rate: 1.9%.

• Type of Government: Democracy

• Economy

• GDP (2014): $38.558 billion. • GDP growth rate (2014): 4.0%. • Inflation (Jan 2016): 19%

OVERVIEW OF GHANA’S ENERGY SITUATION

• Electricity access (2015): 80.5% • Installed electricity generation capacity (2014): 2,831MW

• Electricity generation (2014): 12,963GWh

o Hydro component: 65% o Thermal component: 35%

• Crude oil production (2014 av.): 102,000bbls/day

CONTRIBUTION OF WOODFUEL TO TOTAL ENERGY MIX

Electricity 13%

Petroleum 48%

Woodfuel 39%

REGULATORY REGIME FOR THE EXPORT OF CHARCOAL IN GHANA

• A company shall not engage in the production and storage of charcoal for export unless it is licensed by the Energy Commission.

• To engage in charcoal export business the company must obtain: a Charcoal Production License to allow for the production of charcoal for

export. a Charcoal Export Permit to allow the Charcoal Production License holder to

export the charcoal produced.

• The Charcoal Export Permit is issued for the exportation of each consignment of charcoal produced.

REQUIREMENTS FOR ACQUISITION OF CHARCOAL PRODUCTION LICENCE

Required Submissions

Exhibit 1 Company Registration and locational address.

Exhibit 2 Principal Officers, Director and Partners, their

qualifications.

Exhibit 3

Business Plan stating:

(i)scope and nature of operation.

(ii)technical and financial feasibility.

(iii)environmental and social management plan.

Exhibit 4 An Environmental Permit/Certificate issued by the EPA.

REQUIREMENTS FOR ACQUISITION OF CHARCOAL PRODUCTION LICENCE

Exhibit 5 Site plan, and location of charcoal production site.

Exhibit 6

Location and source of wood for the charcoal

indicating whether sawmill residue, offcuts, etc.

Exhibit 7

Agreement with respect to supply of wood waste or

a certification letter from the Forestry Commission

indicating the right of use of forest/woodlot planted

for this purpose.

Exhibit 8

The proposed carbonisation technology and its

efficiency and/or of yield by weight.

Exhibit 9 Receipt Initial Licence Fee

PROCEDURE FOR THE ACQUISITION OF CHARCOAL PRODUCTION LICENCE

• The applicant is required to submit a signed application letter addressed to the Executive Secretary of the Energy Commission, together with one completed original application form signed by a Principal Officer a receipt confirming the payment of the prescribed license

application fee. two (2) hard copies of the required exhibits as separate attachment.

•Be required to pay the requisite initial license fee after receiving notice from the Commission to do so.

LICENCE CONDITIONS

The licence holder shall: • comply with the source of wood for the

charcoal as indicated in the application. • submit to the Commission data on quantity of

feedstock used for the production of charcoal for every export.

• notify the Commission at least 3 working days before the start of every charcoal production.

• use fabricated steel or improved kiln for production of charcoal.

• comply with the Commission’s export quota and schedule.

• comply with Forestry Commission and Environmental Protection Agency directives.

LICENCE CONDITIONS •Grant the Commission and relevant statutory bodies the right of access to inspect the facility.

• licensed charcoal exporter shall bag and store the charcoal produced at the production site.

•A licensed charcoal exporter shall obtain clearance from the Energy Commission to load the charcoal produced into containers prior to export

•A Charcoal Export Permit shall not be issued to a licensed charcoal exporter who does not obtain clearance from the Commission before processing the charcoal for export at the ports.

PROCEDURE FOR THE ACQUISITION OF CHARCOAL EXPORT PERMIT •A licensed charcoal producer who intends to export

charcoal shall:

submit a signed application letter addressed to the Executive

Secretary of the Commission for approval to export charcoal.

process documentation for the exportation of the charcoal online through GCNET for approval by Energy Commission.

PROCEDURE FOR SHIPPING OF CHARCOAL BY SHIPPING LINES • The Energy Commission shall issue a letter to the

Shipping Line authorizing it to release a stated number of containers to the exporter. This will be communicated to the shipping line ONLY by email or official delivery of letter.

• The Shipping Line shall release the containers to the exporter, who in turn shall submit the container numbers to the Commission for the grant of a Charcoal Export Permit.

• This Export Permit shall be sent directly to the Shipping Line and not through the exporter.

• The Shipping Line shall confirm the authenticity of all letters and Permits submitted to it.

RENEWAL OF LICENCE • The procedure for renewal of a licence shall be the same as that

applicable to the grant of the original licence.

• Where a licence holder fails to renew a licence or where an application for the renewal of a licence is rejected by the Commission, the licence holder shall cease to engage in the activity in respect of which the initial licence was granted.

• Applications for renewal of licence shall be made to the Commission not later than 60 days before the expiry of the licence.

• A licence granted shall not be transferred or assigned except with the prior written approval of the Commission.

OFFENCES AND PENALTIES • A person or company that: attempts to export or exports charcoal is a breach of the law

purchases charcoal on the open market to export is a breach of the law

• commits an offence contrary to the Renewable Energy Act, 2011 (Act 832), and is liable to be sanctioned as follows:

• suspension or revocation of a licence;

• imposition of a penalty of 250 penalty units per container which shall be paid into the Renewable Energy Fund;

• sale of all seized charcoal intended for export or re-importation of illegally exported charcoal and the proceeds paid into the Renewable Energy Fund;

CHALLENGES

• Illegal export of charcoal by unlicensed companies.

• Difficulty in distinguishing between charcoal produced from waste wood or woodlots and wood from the natural forest.

• The effective monitoring of charcoal export has led to seizures and prosecution of unlicensed charcoal exporters.

THANK YOU ALL !!!