message from ceo inside this issueholder to mtcc. for existing holders of the pefc certificate for...

V. 7, Issue 1, January - February 2013

Contact information: C-08-05, Block C, Megan Avenue II, No. 12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur, Malaysia,

Tel : +603-2161 2298, Fax : +603-2161 2293, E-Mail : [email protected], Website: www.mtcc.com.my

Review of MC&I(Forest Plantations) - First Public Comment (15 January—16 March 2013)

2

Continuation of programme to

provide rebate for exports of

PEFC-Certified timber products

2

REDD+ and Forest Certification 3

Join us in ensuring SFM by

promoting PEFC-certified

timber products from Malaysia

4

PEFC Collaboration Fund—2013

Call for Proposals 4

Export of Certified Timber

Products under the MTCS by

Destination & Product Type

5

Inside this issue:

The Malaysian Timber Certification

Scheme (MTCS) operated by MTCC is

endorsed by the Programme

for the Endorsement of Forest

Certification (PEFC), currently

the largest forest certification

organization.

The inaugural issue of the MTCC News was issued in August

2006. MTCC’s main objective in producing this newsletter is

to keep certificate holders and stakeholder groups informed

and updated on the latest developments in the Malaysian

Timber Certification Scheme (MTCS) and matters related to

sustainable forest management (SFM) and timber

certification in Malaysia.

We are pleased to report that over the period 2008-2012,

we have published a total of 32 issues of the MTCC News in

six volumes. We trust you have found the electronic version

of MTCC News useful and the information contained therein have catered to the

needs of your company/organisation. Please do let us know of any other contacts

that may benefit from this newsletter for inclusion in the circulation list, or simply

assist us by circulating the MTCC News to them.

We started the year without the long serving founding CEO, Mr. Chew Lye Teng, who

retired on 31 December 2012. MTCC appreciates Mr. Chew for being

instrumental in raising the profile of the MTCC and the MTCS to their current status of

having achieved international recognition and market acceptance. The year 2013 will

be a busy one for MTCC as it embarks on the following key activities:

• Ensuring smooth transition from the use of the MC&I(2002) to MC&I(Natural

Forest) which will become mandatory on 1 June 2013

• Facilitating the review of the MC&I(Forest Plantations) - the process and

timelines have been announced on the MTCC website and a brief description of

the review process has been included in this newsletter

• Submitting the MTCS for PEFC re-endorsement prior to the expiry of the current

endorsement on 1 May 2014

• As the lead agency for Malaysia, MTCC will assist in organising the 12th Meeting

of the Working Group on a Pan ASEAN Timber Certification Initiative in May

• Hosting the PEFC certification week and 18th General Assembly of PEFC in Kuala

Lumpur in November.

As the newly appointed CEO, I would like to take the opportunity to thank all the

certificate holders and stakeholder groups for the kind support given over the years. I

sincerely look forward to receiving your continued support for the effective

implementation of the MTCS.

YONG TENG KOON

Message from CEO

2

MTCC NEWS V. 7, Issue 1, January - February 2013

Review of MC&I(Forest Plantations) - First Public Comment (15 January—16 March 2013)

Continuation of programme to provide rebate for exports of PEFC-Certified timber products

MTCC will continue to implement the programme to provide

rebate to holders of the PEFC Certificate for Chain of Custody

(CoC) under the MTCS to increase manufacture and

export of PEFC-certified timber products.

Holders of the PEFC Certificate for Chain of Custody will be

entitled to obtain a rebate from the cost of the surveillance/

recertification audit conducted by the PEFC-notified certifica-

tion body (CB).

The rebate quantum will be calculated based on the total

volume of PEFC-certified timber products produced by the

manufacturer, or exported by the exporter, over a period of

12 months. The total volume will be based on the monthly

reports or similar information provided by the certificate

holder to MTCC.

For existing holders of the PEFC Certificate for Chain of

Custody (as at 1 January 2013), the total volume of

PEFC-certified timber products that will be considered in the

calculation of the rebate will be the volume produced or

exported from 1 January to 31 December 2012, provided the

certificate holder has undergone the surveillance or

recertification audit within the said period.

For timber companies that were awarded with the PEFC

Certificate after 1 January 2013, the rebate will be based on

the amount of PEFC-certified timber products manufactured or

exported over a period of 12 months prior to the first

surveillance audit.

The rebate quantum will be calculated as follows:-

1. for every cubic metre of PEFC-certified timber product

produced over the 12-month period for the export

market, a rebate of RM2.00 will be given to the

manufacturer from the professional fee paid as a result of

carrying out the surveillance / recertification audit, subject

to a maximum amount of RM2,500; and

2. for every cubic metre of PEFC-certified timber product

exported over the 12-month period, a rebate of RM1.00

will be given to the exporter from the professional fee

paid for carrying out the surveillance / recertification

audit, subject to a maximum amount of RM2,500.

Timber companies which are both manufacturers and

exporters will only be entitled to the rebate as mentioned

under item 1 above. For more information on this programme,

p l ea s e con ta c t M s. S ab r in a M a wa s i a t

[email protected].



The MC&I(Forest Plantations) which is the standard for

assessing the management practices of forest plantations

under the MTCS, is due for first review in 2013. While no

application has been received to certify forest plantations

under this standard, this review is in line with international

practice that a certification standard needs to be reviewed at

least once every five years to ensure continuous

improvement.

In line with the requirements specified in the MTCS

document SSP2/2012: Rules on Standard Setting Process for

Development of Timber Certification Standards, the main

body which will be responsible for the review of the MC&I

(Forest Plantations) is the Standards Review Committee

(SRC).

The SRC which comprises 15 members will serve as the multi-

stakeholder “Forum” with its members being representatives

nominated by their respective stakeholder groups, i.e. the

social, environmental and economic interest groups, and the

relevant government agencies, from the three regions of

Malaysia, i.e. Sabah, Sarawak and Peninsular Malaysia. The

MTCC will facilitate the review process and serve as the

Secretariat for the SRC.

Based on the process and proposed timelines for the review

of the MC&I(Forest Plantations), it is anticipated that the

whole review process will take 18 months (from January 2013

to June 2014) and would entail, among others, the following

key activities:

i. soliciting public comments from the stakeholder groups at

various stages during the review process by circulating/

placing the MC&I(Forest Plantations), Enquiry Drafts and

Final Draft on the MTCC website;

ii. compilation of public comments and preparation of

Working, Enquiry and Final Drafts by the Secretariat;

iii. consideration of the Working, Enquiry and Final Drafts by

the SRC; and

iv. conducting of three regional consultations to discuss the

Enquiry Draft with the relevant stakeholder groups in the

three regions of Malaysia.

In this connection, the MC&I(Forest Plantations) is currently

being subjected to its first 60-day public comment period that

starts from 15 January and will end on 16 March 2013.

All stakeholder groups are invited to provide their comments

and input on the MC&I(Forest Plantations), which may include,

among others, proposals for any amendment to the existing

Principles, Criteria, Indicators and Verifiers contained in

the MC&I(Forest Plantations). For further information on how

you can provide comments and input, kindly log on to MTCC

website at www.mtcc.com.my

3


REDD+ and Forest Certification



iii. Malaysia’s REDD+ Readiness Project: Private Sector

Engagement (19 February 2013)

This workshop which was held in collaboration with UNDP was

attended by about 100 participants. Participants were briefed

on issues related to climate change. The initial stocktaking

report on sustainable financing for REDD+ implementation was

presented where various possible sources and means of

financing were studied and discussed.

iv. Malaysia’s REDD+ Readiness Project: National

Stakeholder Consultation (20-21 February 2013)

This workshop which was attended by more than 120

participants was held with the objective to introduce the three

components of the REDD+ Readiness project, i.e. Component

1: Initial stocktaking and recommendation report on

institutional framework for REDD+ implementation,

Component 2: Initial stocktaking report on legal and policy

framework, including socio-economic safeguards (SES) and

free, prior and informed consent (FPIC) for REDD+

implementation, and Component 3: Initial stocktaking report

on sustainable financing for REDD+ implementation. The

workshop also aimed to obtain feedback from the participants

based on the presentation of the initial stocktaking reports.

What are the key implications of REDD+ implementation on

forest certification?

Firstly, as REDD+ has been expanded to include sustainable

management of forests, it now has linkage to forest

certification which is widely regarded as a market link tool to

promote SFM. Secondly, REDD+ implementation is seen to

benefit forest certification as it promotes the concept of FPIC,

strengthens social requirements under forest management

practices and recognises the rights of indigenous peoples and

local communities. Thirdly, in order to implement REDD+,

adjustments may need to be made especially to the existing

legal and policy framework pertaining to forestry and land use

issues. Fourthly, REDD+ advocates the development of benefit

sharing system/mechanism between the agencies and

communities. With attractive compensation, it is envisaged

that forest managers will be more motivated to manage their

forests sustainably and consider forest certification. The

National Forest Monitoring system developed for REDD+ can

also be used to monitor the extent of the natural resources,

including areas under forest.

However, REDD+ implementation is also foreseen to affect

forest certification as forest managers will now be “burdened”

with additional workload. In addition to managing the forests

sustainably according to the prescribed forest management

certification standard, the managers will now have to take into

account the new requirements of REDD+. With the

implementation of REDD+, it is expected that in the future,

forest management standard will need to include carbon stock

as one of its Criteria and Indicators.

The idea of REDD - reducing emissions from deforestation

and forest degradation (REDD) in developing countries was

proposed at the 11th Conference of the Parties (CoP 11) to

the United Nations Framework Convention on Climate

Change (UNFCC), as a climate change mitigation framework.

At CoP 13, REDD was expanded to become REDD+ to

encompass measures for forest conservation, sustainable

management of forest, and enhancement of forest carbon

stocks. At CoP 15, Malaysia has committed to reduce its

carbon dioxide (CO2) emissions to 40 per cent by 2020 as

compared to the emission level in 2005.

Malaysia is currently in the National REDD+ Readiness phase

where modalities for national REDD+ implementation are

being developed. This initiative is spearheaded by the

Ministry of Natural Resources and Environment (NRE) in

consultation with relevant stakeholder groups in Malaysia.

The aim is to develop a national framework that includes:

• The policy, legal and institutional components for REDD+

implementation in Malaysia;

• Exploring and providing recommendations on sustainable

financing mechanism for REDD+ implementation; and

• Improving capacity and stakeholder participation in

REDD+ implementation.

These outputs are deemed essential for the formulation of

the National REDD+ Strategy, which is aimed at enhancing

the conservation of natural forest and reducing forest

degradation.

As the national REDD+ secretariat, the NRE has organized a

number of activities as follows:

i. National Inception Workshop on REDD+: Building

Capacity for Decision Makers and the Way Forward (13 – 14

February 2012)

The Inception workshop which was held in cooperation with

the United Nations Development Programme (UNDP),

Malaysia aimed to disseminate information relating to

national activities on REDD+ readiness, enhance capacity of

the state governments on REDD+, to learn from regional

REDD+ initiatives, to understand REDD+ safeguard standards

and procedures, and to stocktake REDD+ activities in

Malaysia.

ii. Workshop on REDD+: Research Project in Peninsular

Malaysia (4 February 2013)

This workshop was held in cooperation with Forest Research

Institute Malaysia (FRIM) and the Forestry and Forest

Products Research Institute (FFPRI). The workshop presented

the various research projects focusing on methodologies to

measure forest carbon stock which were carried out to assess

the readiness phase of the REDD+ implementation in

Malaysia, and sought to solicit further feedback and

comment from the participants.

4


Join us in ensuring SFM by promoting PEFC-certified timber products from Malaysia

PEFC Collaboration Fund—2013 Call for Proposals

PEFC is calling for proposals for the 2013 PEFC Collaboration

Fund.

This PEFC Annual Collaboration Fund seeks to support PEFC

members and partner organizations in their dedicated efforts

to improve forest management and expand forest certification

around the world.

The fund is open to PEFC members, and other non-profit

organizations are also encouraged to submit proposals for new

and innovative projects by 9 March 2013. Project partners may

also include private and public sector organizations.

Proposals requesting for contribution by PEFC of up to 40,000

Swiss Franc and a project timeframe of up to two years will be

considered. Grantees must provide evidence of at least 35%

additional co-funding from other sources within the overall

project budget.

For further information on the PEFC Collaboration Fund and its

application procedures, please visit the PEFC website at http://

www.pefc.org/projects/collaboration-fund/2013-competition



To ensure sustainable forest management in Malaysia, MTCC

has continuously promoted the use of certified timber

products from Malaysia. Therefore, MTCC has been providing

avenue through exhibitions and trade fairs, both locally and

overseas for PEFC CoC Certificate holders under the MTCS to

promote their certified timber products, including paper and

packaging materials.

The cooperation between MTCC and the PEFC Certificate

holders has been rewarding in raising the awareness of

MTCC’s role and the MTCS, as well as in attracting potential

buyers for certified products from Malaysia. Based on the

positive feedback received, MTCC is continuing with its efforts

to work with the certificate holders to promote PEFC–certified

timber products from Malaysia and at the same time provide

the opportunity to expand and explore different markets

through local and overseas trade fairs and exhibitions.

In this regard, MTCC is seeking the interest of the PEFC

Certificate holders to join any of the trade fairs and exhibitions

which MTCC will be participating in 2013 :

Local Exhibitions

• EFE, Kuala Lumpur (6-10 March)

• International Greentech & Eco Products Exhibition

Malaysia (IGEM), Kuala Lumpur (10-13 October)

• MICCOS, Kuala Lumpur (24-27 October)

International Exhibitions

• SPOGA, Germany (2-4 September)

• Timber Expo, UK (24-25 September)

• German Timber Day, Germany (29-30 October)

Interested PEFC Certificate holders under the MTCS can

contact Ms. Premalatha Mogan at [email protected]

or Ms. Sabrina Wu at [email protected], telephone no.:

03-21612298 to find out more about the exhibitions, cost

involvement and logistic arrangements.

PEFC NEWS

Photograph courtesy of PEFC International

5




From the Board & From the Board & From the Board & From the Board & From the Board & From the Board & From the Board & From the Board & From the Board & From the Board & From the Board & From the Board & Management of MTCCManagement of MTCCManagement of MTCCManagement of MTCCManagement of MTCCManagement of MTCCManagement of MTCCManagement of MTCCManagement of MTCCManagement of MTCCManagement of MTCCManagement of MTCC

to all our Chinese Friendsto all our Chinese Friendsto all our Chinese Friendsto all our Chinese Friendsto all our Chinese Friendsto all our Chinese Friendsto all our Chinese Friendsto all our Chinese Friendsto all our Chinese Friendsto all our Chinese Friendsto all our Chinese Friendsto all our Chinese Friends

HAPPY CHINESE HAPPY CHINESE HAPPY CHINESE

NEW YEAR NEW YEAR NEW YEAR 201320132013201320132013201320132013201320132013 Facts & Figures

Holders of PEFC Certificates under MTCS:

For forest management certification: 9 FMUs

For CoC certification: 169 companies

Further details on the validity and area of the

FMUs/scope of certification of the timber

companies and their contact details, kindly log

on to MTCC website at www.mtcc.com.my

Summary

Volume exported:

• November 2012: 11,473.84 m³

• December 2012: 10,061.14 m³

Total cumulative volume exported since

July 2002: 650,320.59 m³

November 2012

Export of Certified Timber Products under the MTCS by Destination & Product Type Source: MTIB/MTCC

December 2012

Product Volume (m³)

Sawn Timber 6,101.70

Plywood 4,094.46

Moulding 775.73

Total 11,473.84

Door Jambs 310.29

Resin Impregnated

paper 147.32

Door Lipping 44.35

Product Volume (m³)

Sawn Timber 4,948.69

Plywood 3,424.88

Moulding 801.37

Total 10,061.14

Door Frame 489.69

paper 147.32

Laminated Scantling 89.62

Door Lipping 89.00

Door Stiles 45.56

Finger Jointed 25.01

Destination Volume (m³)

The Netherlands 2,544.55

United Kingdom 1,892.91

Japan 1,684.73

Germany 1,225.74

Saudi Arabia 1,206.04

Belgium 619.06

France 554.93

Australia 477.62

UAE 218.04

Italy 183.10

Bahrain 149.36


Finland 147.32

China 139.11

Greece 101.79

Jordan 87.21

New Zealand 59.12

Kuwait 57.57

Norway 42.87

South Africa 36.54

Denmark 32.53

Mauritius 13.70

Total 11,473.84


The Netherlands 2,394.61

United Kingdom 1,595.00

France 1,246.77

Japan 800.40

Belgium 756.40

Australia 609.28

Germany 504.66

Qatar 341.61

South Africa 302.17

Bahrain 292.69

Saudi Arabia 267.88


Kuwait 227.52

China 169.30

Finland 147.32

Denmark 128.89

UAE 110.74

Philippines 54.47

Jordan 39.33

Greece 36.27

Italy 35.81

Total 10,061.14

message from ceo inside this issueholder to mtcc. for existing holders of the pefc certificate for...

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