STA – EU Trainings: Raising awareness for Public Authorities(Place & Date)

Module 2 : Sustainable timberModule 2 : Sustainable timber

Sustainable Timber Action in EuropeSustainable Timber Action in EuropeTraining for Public Authorities

Overview1. Ecological, social and economic impacts from illegal

logging and non-sustainable forest management2. Legal timber products3. Sustainable timber products and chain of costudy

certification4. Fair trade in the timber sector

Introduction:

Group exercise

•Do you know the origin of your timber products?

•Do you think that nationally sold timber products could from tropical countries?

-1-Ecological, social and economic impacts from illegal logging and

non-sustainable forest management

® FSC, A.C. All rights reserved FSC-SECR-0051 Presentation April 18, 2023 · 6

60 M of indigenous people

2/3 of living species Important CO2 sinks

Wood removals valued over US$100 billion/year

The value of forests

Deforestation

Environmental impacts

Land use conversion

Environmental impacts

Forest degradation

Deseases, tree fall, fires…

Environmental impacts

Economic impacts

• Numerous and complex, and often interrelated with social impacts.

• Lost revenues for producer countries' governments (Tanzania*) market distortions + erosion of funds for poverty alleviation.

• Non-sustainable forest management can decrease forest productivity harming informal and subsistence economies.

Source: 2011, FAO – FRA 2010

• The present situation is better then 10 years ago, but losses are partly compensated by plantations.

• Degradation (and loss of forest value) processes are not considered.

Economic impacts

Social issues

• Forests are home to an estimated 60 M indigenous

people

• Important cultural and social role of forests in many

countries

• Commercial logging competes for access to the land

• Low concern for labour rights, health and safety

along the supply chain

-2-Legal timber products

The illegal timber

A general definition:

‘‘Illegal logging takes place when timber isIllegal logging takes place when timber isharvested, transported, bought or sold inharvested, transported, bought or sold in

violation of national laws’violation of national laws’

Examples of illegality in the forest sector:• Logging without license (wood theft)• Violation of forest regulations (species, quota)• Corruption in obtaining licenses

Impact of illegality in the forest sector

• Revenues from illegal logging have fuelled fuelled armed conflicts armed conflicts (Liberia, RD Congo).

• Illegality in the forest sector is often linked to criminal activities involving corruption, violence and money laundering

• Low concern for labor rights, health and safety along the supply chain

• The diffusion of illegal timber at low cost hinders improvement of forest management practices.

• Illegality in the forest sector creates unfair conditions of competition in the market.

Legal = sustainable?

Logging without compliance with laws

Non-sustainable management of forests

Forest management in contrast with equity and justice criteria

?

Concepts not always connected

Illegalität in der Holzbranche

BAD NEWS: BAD NEWS:

• Every 2 seconds, across the world, an area of forest the size of a football field is clear-cut by illegal loggers -> degradation and destruction o 5 Mio ha forests/y

• The illegal logs still being cut each year, laid end to end, would stretch ten times around the Earth .

GOOD NEWS:GOOD NEWS:

• While illegal logging remains a major problem, the impact of the response has been considerable. Illegal logging is estimated to have fallen during the last decade by:

• 50 % in Cameroon• by between 50 and 75 % in the Brazilian Amazon• by 75 % in Indonesia, • Imports to major consumer and processing countries dropped by 30 % from their peak

(Source: Chatham House 2010)

EU responsibilities in illegality

2003, EU15: import 82,24 Mmc of illegal timber (~ 20%)(EC and WWF UK, 2004)

(country data can be provided):

• EU Timber Regulation (EUTR) (from March 2013) prohibits the first placing of illegally harvested timber and timber products on the EU market. The legislation will require that due diligence is applied by companies that first place timber products on the EU market.

How the EU deals with illegality:

-3-Sustainable timber products and

their certification

What is sustainable timber?

“Sustainable forest management, as a dynamic and evolving concept, aims to maintain and enhance the economic, social and environmental value of all types of forests, for the benefit of present and future generations” (UN, 2007)

•Legality – that the forest owner/manager holds the legal right to harvest, and timber is harvested, processed and traded in compliance with relevant international, national and regional laws.

•Environmental sustainability – that the forest is managed in a way which preserves the health of the forest for future generations.

•Social sustainability – that timber is harvested, processed and traded with respect to the rights and working conditions of those directly affected.

Sustainable management of forest implies three main issues:

The Forest Europe criteria for sustainable forest management (MCPFE)

ASPECTS CRITERIAEcological aspects 1. Maintenance and appropriate enhancement of forest resources

and their contribution to global carbon cycles;

2. Maintenance of forest ecosystem health and vitality;

3. Maintenance, conservation and appropriate enhancement of biological diversity in forest ecosystems;

4. Maintenance and appropriate enhancement of protective functions in forest management (notably soil and water);

Economic aspects 5. Maintenance and encouragement of productive functions of forests (wood and non wood);

Social aspects 6. Maintenance of other socio-economic functions and condition.

Ensuring sustainability

SFM certification

How is sustainability ensured “from tree to product”?

A sustainable forest management certification scheme:

•requires compliance with the principles of legality, environmental and social sustainability.

•is able to provide independent, third party verification that timber is sourced from sustainably managed forests.

•includes mechanisms for tracing products from the forest of origin through the supply chain, to the end consumers called Chain of Custody (CoC).

Internationally, 2 main forest certification schemes exist:

•The Forest Stewardship Council (FSC) – www.fsc.org

•The Programme for the Endorsement of Forest Certification (PEFC) – www.pefc.org

Most sustainable timber procurement policies accept either label as one way of demonstrating compliance with the sustainability requirements

SFM certification

What is CoC certification?

• Chain of Custody (CoC) Chain of Custody (CoC) Systems monitor sources, quantity balances and material flows for a given chain of costudy

• CoC requires a chain of information chain of information as well as a process of material separation material separation from a clearly identified source up to a defined point in the value added chain

• It establishes a connection between the connection between the origin forest and the statement of origin forest and the statement of sustainabilitysustainability for the final product

CoC – main aspects

1. Formal communication interface for CoC certified companies

standardised information in invoices and delivery slips

2. Procedure for material separation and quantity balancing within a companyDocumented, implemented and monitored routines

and responsabilities

CoC Managementsystems must:• Identify and document origin, quantity and

material flow• Separate certified and non-certified products, in

certain case these may be mixed according to specifications

• Avoid controversial

This requires:

The verification system:

At international level by ASI

At national

level

SFM certification

Chain of Custody rational:• All COC “rings” shall be covered by a

valid FSC COC certificate

• The principle works for FSC as well as for PEFC

• It is mainly a market driven process

SFM certification

Labels’ significance (FSC)Virgin FSC

FSC Controlled

Reclaimed

FSC 100%: 100% FSC certified inputs.

FSC Mix: FSC certified inputs + Controlled Wood inputs + recycled inputs (labelling with min content of 70% certif. input, exception to 50% for some registered products).

FSC Recycled: reclaimed post-consumer (at least 85%) and pre-consumer inputs.

For more information refers to FSC-STD-40-004 V2-1 and FSC-STD-50-001 V2-0

Labels significance (PEFC)Virgin PEFC

Non controversial source

Reclaimed

PEFC Certified & Recycled: reclaimed post-consumer or pre-consumer inputs and certified material(min 70% of certified and recycled inputs).

PEFC Certified: virgin, recycled and “non controversial” material (min 70% certified inputs).

For more information go to www.pefc.org/standards/logo-use

• In May 2012 Global area of certified forest = 394 million Ha

• + 4% (14.8 million hectares) since May 2011

• The world’s certified forest area is approaching 10%

Source: UNECE FAO 2012

Sustainable forest management

CoC certification– for whom?CoC certification is required for every company which may compromise the integrity of the product-related FSC label, e.g.:

Manufacture and processing of the certified material; or

Repackaging and re-labelling of products; or

(Re-)issueing of sales documentsCompanies don‘t need a CoC certification if they :

(i) Broker between seller and buyer without physically owning the products (e.g. agents)

(ii)Conducting certain activities on behalf of a certified company which are covered by procedures and appropriate arrangements (e.g. subcontractor, transport logistics)

Advertising FSC-labelled final products for the final user

do not have ownership of certified products but instead are:

-4-Fair trade with

sustainable timber

Question to all: FLO logo, what is this?

Fair trade in the timber sector

Fair Trade

21

Fair Trade

"Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the right of, marginalized producers and workers - especially in the South“ [accepted definition of Fair Trade, as agreed by Fairtrade Labelling International (FLO) and the World Fair Trade Organization (WFTO)]

1 Creating Opportunities for Economically Disadvantaged Producers (poverty reduction)

2 Transparency and Accountability (participation of producers in decision making)

3 Fair Trading Practices (pre payment, long term contract and relationships)

4 Payment of a Fair Price

5Ensuring no Child Labour and Forced Labour (UN Convention on the Rights of the Child)

6 Commitment to Non-Discrimination, Gender Equity and Freedom of Association

7 Ensuring Good Working Conditions (ILO conventions)

8 Providing Capacity Building to workers and producers organisations

9 Promoting Fair Trade (raise awareness)

10 Respect for the Environment

Core Fair Trade Principles

Fair Trade

Fair Trade and the timber sector:

• Around 10 million people are employed in forest management (FAO, 2010).

• Many more are directly dependent on forests for their livelihoods.

• Forestry employment is outside the formal sector forest work is very important for rural livelihoods (FAO, 2010).

• In some regions (Latin America, Africa) forest related employment increased somewhat probably because roundwood production has increased faster than gains in labour productivity.

• But working and social conditions did not improve in this time, with direct implications for community livelihood.

Fair Trade

Rubber sports balls

Furniture

Wood flooring

Combining SFM and fair trade

Dual certification case studies, actions and projects

Other initiatives with dual

certificationChile – SSC Wood Technologies

Honduras - COATLHAL

Bolivien – Multiagro, Santa Fe