The LAS Development in Ghana Chatham House Illegal Logging Update and Stakeholder Consultation, July, 2007 By Chris Beeko

LAS Development in Ghana 2 Structure of Presentation Approach & structure of preparation adopted by Ghana The status of thinking on the key elements – The Wood Tracking System – The Licensing System The revised road map

LAS Development in Ghana 3 Process Overview/Structure Legal Standard VerificationSystemImpactManagement Chain of Custody System Study Outputs, Process Reviews National Stakeholder Consultations/Consensus Building EU/Ghana Negotiation EU/GHANA VP Agreement Multi-Stakeholder Steering Committee WK Gp -1 WK Gp - 5 WK Gp - 4 WK Gp - 2 Domestic Market WK Gp - 3

LAS Development in Ghana 4 Inclusive Approach Negotiating team expanded to include Civil Society and Industry Representatives VPA Steering Committee remains multi-stakeholder Cross-sectoral working groups formed around elements

The Wood Tracking System – Proposed Process

LAS Development in Ghana 6 Coverage of System System will capture and reconcile data at the following phases in the process chain i. Standing Stock – Enumeration, Yield Selection & Yield Endorsement, Post Harvest Inspection ii. Harvest phase – Log Production iii. Transport phase – Logs and Processed Wood iv. Mill site – Log Yard, Primary Proc. Wood Receipt Pt. v. Conversion/Milling phase vi. Port – Proc. Wood arrival & export

LAS Development in Ghana 7 Stock to Harvest ActivityOutputData sourceReconciliationKey data EnumerationStock List / Map FC/PrivateStock no ↓ Yield selectionYield List / Map FC/PrivateStock no ↓ Yield endorsement Yield List / Map FCStock no ↓ Post-felling insp. Felled tree listFC / TVAYield List, LIFsStock no, tree tag no Log produced and transported Log (LIF) data (declaration) FC / Log Producer Yield ListTree tag no, stock no, Log tag no

LAS Development in Ghana 8 Log Transport to Primary Process ActivityOutputData sourceReconciliationKey data Roadside Log Inspection Log data (inspection) FC (HHC)Against log declaration Log tag no ↓ Log yardLog arrivalPrimary Processor FC / TVA Against log declaration Log tag no ↓ Log convertedLog conversion Primary Processor Log tag no., Contract no. ↓ Primary PW transported PW data (declaration) Primary Processor Against logs converted Log tag no. Primary PW tag no., Contract no. ↓ Primary PW inspected PW data (inspection) FC (HHC)Against primary PW declaration Primary PW tag no.

LAS Development in Ghana 9 Primary/Secondary Process to Port ActivityOutputData sourceReconciliationKey data Primary PW exported PW arrival (at port) ExporterAgainst declared waybill no. Primary PW tag no. Export dossier no. Or … arrival at secondary mill Processed wood Arrival Secondary Processor Against Primary PW declaration Primary PW tag no. Contract no. ↓ Secondary PW transported PW data (declaration) Secondary Processor Against primary PW converted Secondary PW tag no. ↓ Secondary PW inspected PW data (inspection) FC (HHC)Against secondary PW declaration Secondary PW tag no. ↓ Secondary PW exported PW arrival (at port) Exporter FC / TVA Complete history Secondary PW tag no Export dossier no.

LAS Development in Ghana 10 Existing and Proposed – Differences Introduction of bar-coded tags to replace the manual paint marking – Standing trees, logs in transport, bundles of processed wood Introduction of electronic field data capture Introduction of Central Database System Timely and systematic reconciliation of data Implementation of post harvest audit External verification of data for the purpose of issuing CLOs

The Proposed Licensing Scheme: Institutional Arrangements

LAS Development in Ghana 12 The Institutional Arrangement Institutionally, the function of verification will be externally placed and separated from the traditional role of regulation and management The functions of verification and issuance of licenses (CLC & CLO) will be combined within one autonomously placed entity The institutional placement of the verification and licensing entity will initially be in the Ministry of Lands Forestry & Mines Long term placement of the verification and licensing entity would be determined after initial phase The exercise of independent verification and of issuance of licenses will be done on a pilot basis for a period of 2 years with a possibility of an extension to four years

LAS Development in Ghana 13 LAS – FLEGT Briefing Notes 7

LAS Development in Ghana 14 The LAS - Ghana Verification of legality Verification of supply chain & control Verification of records Issuing of Licenses Licensing records Timber Validation Agency FC/TIDD Export Permit Issued Reports submitted to JIC Summary Reports published Forest Harvesting Transportation Processing Export

LAS Development in Ghana 15 Features of the Proposed Licensing System Timber Validation Agency (TVA) – Perform system based verification and issue licenses – Will have field teams to perform field & harbour checks Validation of Legal Timber Council – Will oversee functioning of licensing system (foreseen in the long term) Adjudication Process – Will review TVA actions that are contested Independent Monitor – Will periodically monitor functioning of entire system and report accordingly

LAS Development in Ghana 16 Step 1 Formalisation of Negotiations December 2006 Step 2 1 st Preparatory Meeting on N. E. Feb Step 5 Potential VPA Impacts Assessed Oct Step 7 3rd formal Negotiations Jan Step 8 Conclusion & Signing of Agreement Spring 2008 Step 4 2nd formal Negotiations June 2007 Step 3a Verification System Designed Progress Report June, 2007 Step 3b Legality Defined Progress Report June, 2007 Step 6a Verification System Designed Dec Step 6b Legality Defined Dec Step 4a EC/GH Review Session Sept. 2007

Thank You