FLEGT: insights, impacts and synergies with key markets
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Presented by Thomas Colonna of the EU FLEGT Facility at the 3rd Asia-Pacific Rainforest Summit, on 23–25 April 2018 in Yogyakarta, Indonesia
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FLEGT: insights, impacts and synergies with key markets
- 1. FLEGT: insights, impacts and synergies with key markets Thomas Colonna Asia Pacific Rainforest Summit Yogyakarta, 24 April 2018
- 2. FLEGT Action Plan • Development cooperation with timber-producing countries • Trade agreements between EU and timber-exporting countries (Voluntary Partnership Agreements – VPAs) • Broader legislation to exclude illegal timber from EU market (EU Timber Regulation) • International cooperation and dialogue with other consumer markets • Encouragement for private sector supply chain control initiatives Supply- side measures Demand- side measures
- 3. EU Timber Regulation - Key obligations EU traders (after first placing on the EU market) shall be able to identify from whom they bought the timber products and, where applicable, to whom they have supplied the timber products Traceability The placing on the market of illegally harvested timber or timber products derived from such timber shall be prohibited Prohibition EU operators shall exercise due diligence when placing timber or timber products on the market by implementing procedures so as to minimise the risk of illegal timber in their supply chain Due diligence
- 4. 2798 checks on imported timber resulting in: • 525 notices of remedial action (~19% of checks) • 139 penalties (~5% of checks) • 286 other measures (~10% of checks) • 5 court cases concluded (more ongoing) 17735 checks on domestic timber resulting in: • 916 notices of remedial action (~5% of checks) • 992 penalties (~6% of checks) • 370 other measures (~2% of checks) • 21 court cases concluded 4 EUTR implementation and enforcement March 2015 to February 2017 91% related to Due Diligence 6% related to Prohibition 4% related to Traceability 44% related to Due Diligence 45% related to Prohibition 11% related to Traceability
- 5. VPA countries 8 countries in VPA negotiation 6 VPAs in VPA implementation (Cameroon, CAR, Ghana, Liberia, Republic of Congo, and Vietnam*) 1 VPA operational licensing (Indonesia) *The agreement is yet to be ratified but preparation for implementation is already ongoing
- 6. One year of FLEGT licensing In the first year of licensing, Indonesia issued For exports worldwide 200 000 Verified legal export documents usd 10 billion in value which are part of Indonesia’s
- 7. 1. Within stakeholder groups 2. Between stakeholders groups 3. Bilateral negotiations with the EU VPA negotiations
- 8. Impacts of VPAs on Governance Stakeholder inclusion Transparency Traceability Law enforcement Sustainability
- 9. Synergies with key markets Bilateral Coordination Mechanism on Forest Law Enforcement and Governance Forum for policy dialogue Mechanism for sharing information on policies and legal frameworks coordinating initiatives to stop illegal logging and associated trade. EU-China cooperation to combat illegal logging Support the development of timber legality legislation in China Support cooperation between China and VPA countries
Hinweis der Redaktion
- What has made a difference in the approach of the EU is that it was a collective pact. Unlike the Lacey Act, the EU had measures in place to help support supply side countries adjust and improve their systems to respond to markets. What the FLEGT AP also did is start a global push for market scrutiny – US, Japan, Australia and now even China through more pressure are looking at their own regulations to support legal trade.
- Illegal logging is a pervasive problem of major international concern. It poses a significant threat to forests as it contributes to the process of deforestation and forest degradation, which is responsible for about 20 % of global CO2 emissions, threatens biodiversity, and undermines sustainable forest management and development including the commercial viability of operators acting in accordance with applicable legislation. It also contributes to desertification and soil erosion. The European Union (EU) adopted in 2010 Regulation (EU) No 995/2010 laying down the obligations of operators who place timber and timber products on the market (the EU Timber Regulation, EUTR), as part of the implementation of the EU Action Plan on Forest Law Enforcement, Governance and Trade (FLEGT AP). The FLEGT AP is the EU’s policy instrument to combat illegal logging in the world's forests and the EUTR is the key instrument to address the problem from the demand side. The EUTR established the following three key obligations: 1. It prohibits the placing on the market of illegally harvested timber (i.e. timber harvested in contravention of the applicable legislation in the county of harvest) and of timber products derived from such timber; 2. It requires operators, who place timber and timber products on the EU market for the first time, to exercise "due diligence" (DD), i.e. to undertake a risk management exercise, so as to ensure that only legally harvested timber (i.e. timber harvested in accordance with the applicable legislation in the county of harvest) or timber products derived from such timber are placed on the EU market; 3. It requires traders of timber and timber products already placed on the EU market to keep records of their suppliers and customers (i.e. obligation of traceability) The due diligence system includes three elements inherent to risk management: 1. access to information: the due diligence system should provide access to information about the sources and suppliers of the timber and timber products being placed on the internal market for the first time, including relevant information such as: compliance with the applicable legislation, the country of harvest, species, quantity, and where applicable sub-national region and concession of harvest. 2. risk assessment: operators should carry out a risk assessment, through the analysis and evaluation of the information gathered and relevant risk assessment criteria including: assurance of compliance with legislation prevalence of illegal harvesting of the tree species and practices in the country of harvest complexity of supply chain 3. mitigation of the risk identified: where a risk is identified, operators should mitigate such risk in a manner proportionate to the risk identified, with a view to preventing illegally harvested timber and timber products derived from such timber from being placed on the internal market. If no negligible risk conclusion can be reached operators shall not place the timber on the EU market. FLEGT licences, CITES permits= deemed to comply with the EUTR. No due diligence is required for FLEGT licenced timber.
- Infringements of the EUTR detected during checks of domestic timber were mainly related to breaches of the due diligence requirement and infringements of prohibitions, the former leading primarily to notices of remedial action and the latter mainly to remedial actions that led to penalties and other penalties . For imported timber, infringements were primarily related to operators’ due diligence system, and the majority of countries issued notices of remedial action and took other measures in the first instance . NL successfully brought to court a Dutch operator who imported timber from a Cameroonian sawmill found to be dealing in illegally harvested timber. DE court ruled that 2 shipments of ‘wenge’ wood imported into Germany from the Democr Rep of the Congo, via BE, in contravention of EUTR. 120/200 DDS UK issued notices of remedial action to 2 UK operators importing timber from Myanmar and won a court case imposing a fine on a company that . SE CA issued prohibition decisions concerning teak and teak products to an operator importing teak decking from Taiwan containing Burmese Teak and to an operator that imports teak directly from Myanmar. The Danish Competent Authority has notified an operator to the police for being in breach with a March injunction (prohibiting all Danish operators from placing Burmese teak on the country’s market) and Article 6 of the EUTR.
- In 2018, 15 countries are engaged in VPAs. Negotiating: Laos, Malaysia, Thailand, Cote d’Ivoire, Democratic Republic of Congo, Gabon, Guyana, Honduras
- RESULTS: Between 15 November 2016 and 14 November 2017: 39,000 FLEGT licences have been issued and 1.2 billion USD worth of FLEGT licensed products have been exported to 28 EU member states. These 39000 FLEGT licenses are part of the 200,000 verified legal documents to exports worldwide, which totals 10 billion USD in value.