FOREST GOVERANCE AND FLEGT MASTERCLASS Francesca Marzatico Ph.D., Palladium LTD Sandra Thain, EFI Art Blundell, Forest Trends “2017 WORLD BANK CONFERENCE ON LAND AND POVERTY” Washington DC, 20-24 March 2017

Overview Aim of the master class Introduction: What is FELGT FLEGT approach and long term goals Strengths and limitations FLEGT and VPAs Lessons learned Group discussion on FLEGT peace and poverty

Aim of the master class Inform about the FLEGT its strengths and limitations while discussing its contribution to security of tenure and poverty reduction as well as to the peace-building process in countries where it operates. This master class also aims at supporting lessons learned that can be used in other sectors.

FLEGT facts & figures Forest Law Enforcement Governance and Trade When: 2003 EU's FLEGT Action Plan Why: To reduce illegal logging How: - Strengthen sustainable and legal forest management - improve governance and - promote trade in legally produced timber

EU Action Plan SUSTAINABLE FOREST MANAGEMENT Sets out a range of measures available to the EU and its member states to tackle illegal logging in the world's forests prevent the import of illegal timber into the EU improve the supply of legal timber increase demand for timber from responsibly managed forests SUSTAINABLE FOREST MANAGEMENT

Measures: How? Voluntary Partnership Agreements (VPAs) are bilateral treaties between the EU and individual timber exporting companies outside the EU. VPAs ensure that timber and timber products exported to the EU come from legal sources. FLEGT licences as automatically meeting the requirements of the EU Timber Regulation. The EU Timber Regulation (EUTR) prohibits EU companies from placing illegal timber and timber products on the EU market. It requires due diligence procedures to ensure legality of timber supplies. EU Member States to check on company performance and punish non-compliance

EU Action Plan long term aim Promote fair solutions to illegal logging in timber-producing countries Promote trade in legal timber(VPAs) Promote public procurement policies (guidance on how to deal with legality) Support private sector initiatives (codes of conduct) Safeguard financing and investment (due care procedures institutions investing in forest sector) Use existing or new legislation to support the Action Plan (EUTR) Address the problem of conflict timber

History of FLEGT Failure of forest sector governance and markets Governance (State ownership; Collusion of interests) Markets (contamination of legal and illegal timber) Consequences Indiscriminate exploitation of tropical forests Environmental degradation Loss of livelihoods and revenues Solutions Technological (forest management planning) and administrative (reorganization/restructuring) Purely market-based solutions (Certification) Stakeholder-driven market-based solutions (FLEGT)

Why is FLEGT different? Locally-centred and politically-smart approach Deliberations of national stakeholders Locally owned Adapting/adjusting to dynamics Long-term goals aimed at producing an effective change Complexity of issues and resistance of vested interests EU participation through legally-binding treaty Designing legality assurance has impact on governance Link to land rights and poverty impact

FLEGT Limitations Need for underlying governance reform: VPAs may not succeed without a broader climate of reform Focus on technological solutions instead of deliberative process Possible negative impact on small operators Lengthy process: hard test for stakeholders’ patience Changing trade patterns Not addressing deforestation

Why still FLEGT? Support to long term goal of forest governance and dialogue within the country

Group discussion Groups will discuss for 20 minutes the following questions: How can FLEGT contribute to security of tenure and poverty reduction How can FLEGT contribute to the peace-building process Each group appoints a rapporteur who will report in plenary. Report in plenary 5 minutes per group.

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