Pi Environmental Consulting π Pierre Hauselmann private sector, civil society and sustainable development some lessons from the forest sector Presentation prepared for the World Civil Society Forum Geneva 16 July 2002

Pi Environmental Consulting πplan u The example of the Forest Stewardship Council (FSC) u brief historical background u structure and level of input by civil society and private sector u examples of impacts u lessons learned

Pi Environmental Consulting π FSC - background u Founded in 1993 u representatives from environmental and social groups and private sector u accreditation organisation u promote responsible forest management world-wide u as a reaction to perceived inefficiency of governmental initiatives

Pi Environmental Consulting π FSC - background u Today u more than 500 members u from around 65 countries u nearly 30 million ha certified under FSC accreditation u 80 % in North - 20% in South u reflects market flows u benchmark for certification u has emulated the creation of “competitors”

Pi Environmental Consulting π FSC structure - input from civil society & private sector Country 1 CS PS NWG Country 3 CS PS Country 2 CS PS international secretariat Board of Directors CS PS Membership social env. econ. CS PS national standard accredited certification body s.e.e.? NWG s.e.e.? NWG s.e.e.? international standard FSC Principles and Criteria

Pi Environmental Consulting π FSC system - certification process forest FM assessment CS PS consumer processing and distribution chain Chain of custody national standard accredited certification body u Incentives: u premium u market access u civil license to operate u others u securing land rights u access to fund u etc.

Pi Environmental Consulting π example 1 - Indonesia u certificate contested u illegal logging by communities u further evaluation by certification body u illegal logging by communities (subsistence) u commercial illegal logging (3 mills) u measures u subsistence logging included in management plan u closure of 3 mills u 1 mill owner in prison

Pi Environmental Consulting π example 2 - Sweden u standard states “long term employment guarantied” u certified company outsources its logging operations u more than 100 jobs lost u certificates threatened to be withdrawn u measures u negotiation through the CB u most jobs recovered u only a few employees dissatisfied

Pi Environmental Consulting π example 3 - Gabon u Through certification process u fishponds for employees (curb bush meat consumption) u schools for employees children u research station in the forest u ongoing contact with local NGOs u Certificate contested u issues around the definition of a protected area

Pi Environmental Consulting π example 3 - Gabon u Some NGOs launch a boycott campaign against the parent company in Germany u Company decides to drop certification process u All benefits lost

Pi Environmental Consulting π lessons learned u Certification u needs a global system u performance based, sector specific u empowers actors to take their own responsibility u can be an effective tool to transfer some incentives and control mechanisms to civil society u involvement by external actors u may be detrimental u need at least to be mitigated with collaboration with local ones

Pi Environmental Consulting π lessons learned u Certification is not a panacea u in itself, does not solve structural problems, nor lack of capacity u markets are difficult to change u some certified operations can’t sell their products u needs flexibility to adapt to small scale and low intensity operations u need to maintain system robustness u common challenge for all types of certification

Pi Environmental Consulting π lessons learned u With growing success i. e. behavioural changes in practice and better recognition in the marketplace - not necessarily end consumers u becomes a political instead of technical debate