EU Action Plan for Forest Law Enforcement, Governance and Trade The EU FLEGT Action Plan and “due diligence” proposal Chamber of Commerce Moscow, 26 March 2010 John Bazill, Svetla Atanasova DG Environment European Commission DG Environment European Commission
EU Action Plan for Forest Law Enforcement, Governance and Trade Illegal logging: what is at stake? FLoss in assets and revenues FLoss of future trade opportunities FLoss of development opportunities FLoss of biodiversity FTrade reputation FUndermining rule of law FLegitimate operators find it hard to compete and long term investment decreases
EU Action Plan for Forest Law Enforcement, Governance and Trade EU response FEU FLEGT Action Plan (2003) FFLEGT Regulation (2005) äVoluntary Partnership Agreement F2008: Proposal for a Regulation äOn obligations of operators placing timber and timber products on EU market
EU Action Plan for Forest Law Enforcement, Governance and Trade Regional response F2005 Europe and North Asia FLEG Conference
EU Action Plan for Forest Law Enforcement, Governance and Trade EU FLEGT Action Plan 2003 FLEGT Action Plan Aim: address illegal logging and related trade combining supply and demand measures: äDevelopment cooperation äPublic procurement policies äPrivate sector initiatives äFLEGT voluntary partnership agreements äOther legislative measures
EU Action Plan for Forest Law Enforcement, Governance and Trade Green Public Procurement FEU target of 50% of tenders for purchases of goods and services to have “green” criteria by 2010 FCurrently procurement policies for timber in Belgium, Denmark, France, Germany, Netherlands, UK, FFocus on sustainability, with legality as a minimum FProcess of cooperation between EU Member States to develop more coherent procurement policies; FEU rules to ensure fair competition
EU Action Plan for Forest Law Enforcement, Governance and Trade Private Sector Measures FTrade Federation Codes of Conduct FCompany purchasing policies FBeverage carton manufacturers 100% traceability commitment by 2015 FCustomer/ lending policies of some banks
EU Action Plan for Forest Law Enforcement, Governance and Trade FLEGT VPAs Bilateral partnership agreements between the EU and timber-producing countries: FPartner country agrees to only export to EU verified legal timber and timber products FSets up control and licensing systems to provide guarantee of legality FIndependent monitor FEU only accepts timber shipments accompanied by FLEGT Licence FProduct coverage flexible
EU Action Plan for Forest Law Enforcement, Governance and Trade FLEGT Voluntary Partnership Agreements FLegality assurance elements äLegality definition äChain of custody/ traceability äVerification of legality äIssuing of FLEGT Licence äIndependent monitor + capacity-building
EU Action Plan for Forest Law Enforcement, Governance and Trade FLEGT VPA FStakeholder process an important element for the EU äPractical definition of “legal timber” äOften the first time all forest-relevant legislation discussed together äMay lead to identification of areas for simplification or reform
EU Action Plan for Forest Law Enforcement, Governance and Trade VPA State of Play InformationNegociationPre-negociationImplementation
EU Action Plan for Forest Law Enforcement, Governance and Trade Additional measures FFLEGT VPAs good but äLimited coverage äPossibility of shipping via a third country äDemands for legislation to make it illegal to sell illegal timber in the EU
EU Action Plan for Forest Law Enforcement, Governance and Trade “ Due diligence” proposal I FStill a proposal ! FFocus: The first placing timber products on the EU market. FObligation: traders to demonstrate “due diligence” in ensuring the legality of the produce traded; FApplies to EU and imported timber and a wide range of timber products FNot a border measure
EU Action Plan for Forest Law Enforcement, Governance and Trade Due diligence proposal II FLegality: legislation applicable in country of harvest älegal right to harvest äTaxes and fees linked to harvesting äCompliance with forest management regulations including relevant environmental laws äRespect for third parties tenure/use rights äRelevant trade and export rules
EU Action Plan for Forest Law Enforcement, Governance and Trade Due diligence proposal III EU traders have to demonstrate due diligence by: FHaving access to information on country of harvest, species, legal compliance FConducting risk assessment/ mitigation FIdentifying the country of harvest FHaving access to information on legal compliance;
EU Action Plan for Forest Law Enforcement, Governance and Trade Due diligence proposal IV FSystems: traders may use their own risk management systems or use systems run by recognised organisations; FExemptions: FLEGT and CITES timber;
EU Action Plan for Forest Law Enforcement, Governance and Trade Due diligence proposal – likely key issues in 2 nd reading F“prohibition” (on sale of illegal timber) FScope of applicable legislation FObligations on EU operators selling timber and after first placing on the market Fpenalties Flabelling
EU Action Plan for Forest Law Enforcement, Governance and Trade What might this mean for Russian exporters? FIdentify relevant Russian legislation and how to demonstrate compliance FEU importers may make new contract conditions FTraceability FMay have some impacts for Chinese exporters to EU of finished products made from Russian timber
EU Action Plan for Forest Law Enforcement, Governance and Trade The process of adoption of the “Due Diligence” Regulation
EU Action Plan for Forest Law Enforcement, Governance and Trade The process of adoption of the “Due Diligence” Regulation - Commission Proposal FBroad and lengthy public consultation process held between December 2006 and June 2008; FCommission adopted the legislative proposal in October Published in the Official Journal of the European Union; FThe proposal is based Title XX Environment, TFEU; FDue Diligence Regulation will be adopted through the ordinary legislative procedure.
EU Action Plan for Forest Law Enforcement, Governance and Trade The process of adoption of the “Due Diligence” Regulation - First Reading FProposal is forwarded to the European Parliament (EP) and to the Council; to the Committee of the Regions and the Economic and Social Committee; FEP delivered a position, introducing 75 amendments to the proposal in April This position was discussed and amended within the relevant parliamentary committee: ENVI, then adopted in plenary session by a simple majority; FThe Council adopted by a qualified majority its position on 1 st March 2010 and forwarded it to EP ä(255 votes out of 345 (73.91 %) and at least 14 Member States in favor; at least 62% of the Union’s total population)); FCommission adopted its Communication on the Council position on 9 th March and forwarded it to EP.
EU Action Plan for Forest Law Enforcement, Governance and Trade The process of adoption of the “Due Diligence” Regulation – Second Reading FTriggered by the receipt in EP at its March 8 th –11 th plenary session of both the Council Position and Commission Communication; FA three-month time limit is laid down by the Treaty (this period may be extended by a month) FLikely scenario: äEP proposes amendments to the Council position by an absolute majority of its Members and the text thus amended is forwarded to the Council and the Commission. FTime limits: the ENVI Cttee will discuss amendments in April; May and June; a second reading amendments should be voted on in the July 5-8 plenary session of the EP
EU Action Plan for Forest Law Enforcement, Governance and Trade The process of adoption of the “Due Diligence” Regulation – Council Second Reading FCommission opinion on EP amendments: determines the type of vote necessary in the Council: if the Commission has given a negative opinion on at least one amendment, the Council will have to act unanimously as regards acceptance of the European Parliament’s position overall; FCouncil second reading - a three-month time limit following receipt of the European Parliament’s amendments (this period may be extended by a month); FPossible scenarios: äCouncil approves the amended position the act will be deemed to have been adopted (expected by end-November 2010); äThe Council does not approve the amendments to its position - Conciliation.
EU Action Plan for Forest Law Enforcement, Governance and Trade Conciliation 1 FPresident of the European Parliament convenes a meeting of the Conciliation Committee within six weeks (may be extended by two weeks); FComposition: members of the Council and an equal number of members of the EP, as well as the Commissioner responsible; FModus operandi: negotiations are conducted during informal trialogues involving teams of negotiators for each institution; FDecision-making: each delegation to the Conciliation Committee must approve the joint text in accordance with its own rules: qualified majority for the Council’s delegation and simple majority for the European Parliament’s delegation; FCommission’s role: the Commission plays a mediating role and frequently proposes compromises.
EU Action Plan for Forest Law Enforcement, Governance and Trade Conciliation 2 FElements for negotiation: negotiations focus on all the amendments adopted by the European Parliament at second reading;. FTime limits: the Treaty stipulates a time limit of six weeks (which may be extended by two weeks) for approving a joint text. FThe Conciliation Committee produces a joint text; FPossible Scenarios: äThe European Parliament and the Council adopt the act in accordance with the joint text within six (or eight) weeks.. The legislative act is adopted. äParliament and the Council do not approve the joint text within the stipulated time limit, the act is deemed not to have been adopted and the procedure is ended; äThe Conciliation Committee does not produce a joint text. The act is deemed not to have been adopted and the procedure is ended. FIF Conciliation occurs the process will end by April 2011.
EU Action Plan for Forest Law Enforcement, Governance and Trade TIMELINE FEntry into force: on the 7th day following the publication FApplication date: äCommission: 2 years; äCouncil: 30 months; äEP: 1 year.
EU Action Plan for Forest Law Enforcement, Governance and Trade THANK YOU!