Timber Trade Action Plan (TTAP): Combatting illegal logging through engaging the private sector FLEGT Update Meeting: 9th October 2013, Brussels Alastair Herd (TFT)

The Forest Trust (TFT) Not for profit organisation created in Mission: provide supply chain transparency to transform how products are made. 120 staff providing expert advice on the ground out of 15 offices. Working with 90+ members – timber & products linked to deforestation (palm oil, pulp & paper, cotton, leather, soy….)

Timber Trade Action Plan (TTAP) TTAP 1: (March Dec 2011)TTAP 2 (Dec 2006 – June 2013) IndonesiaChina MalaysiaBrazil CameroonBolivia Republic of CongoGuyana GabonSuriname Project of FLEGT Action plan – private sector response Partners: UK TTF, VVNH, FBCIB, LCB, ETTF Aim: FLEGT awareness raising & risk mitigation of supply chains through legality verification

TTAP Overall Objectives 1.Conserve and sustainably manage tropical forests 2.Build local capacity for sustainable forestry and forest governance 3.Develop co-operation with the private sector towards sustainable and equitable growth 4.Alleviate rural poverty through improved forest management

Company Supply Chain Work Stage 1: Nomination Stage 2: Gap Assessment Stage 3: Action Plan Stage 3: Audit Time

TTAP Results

TTAP Activities FLEGT - private sector awareness raising: Conferences & meetings – ITTFD Newsletters & website Capacity building & training: Roadshows & workshops Legality standard outreach: VLO/VLC - China, Guyana, Suriname Tools & studies: Legality Checklists, RAT, RPP Guide to Service Providers Impact & Poverty Study and Market leverage Forest Area Assessed & Verified

Challenges for the Private Sector Changing context – FLEGT & Financial crisis created uncertainty and a wait & see attitude among buyers/suppliers Legality standards - initial lack of country specific standards and harmonisation constraints e.g. complex supply chains in China Cost - despite TTAP funding, TPV prohibitive to some companies, especially as market access not price premium after investments etc Changing markets - EU share shrinking 22% (2007) to 17% (2011) & China increasing  declining leverage of EU buyers to drive change Substitution – buyers looking to reducer risk with technological advances could discourage producers & conversion to alternative crops

Lessons Learned Responsible buyers leverage transformation of their supply chains for long-term business relationships – collaboration & trust is key Minimise uncertainty – raise awareness (EU & producer) with the right messenger e.g. TTFs to avoid & promote trade in responsible timber Enhanced risk management through third party assurances - improves production efficiencies, trust and better business Legality verification is about market access and brand protection, not premiums and provides a competitive advantage in face of EUTR

Lessons Learned Cont’d… More focus on China as the world’s largest timber importer – work to promote transparency back to forest to help transform the market Support for SMFEs – large employer and capacity to reduce poverty But, require robust enforcement of EUTR – need adequate resources to ensure credibility and level the playing field

Conclusions & Next Steps TTAP shows that engaging the private sector is an effective means of transforming supply chains to drive improved forest management Supportive of FLEGT & private sector in preparing for VPA’s & EUTR and maintain market access, but enforcement needed to level the playing field Further support required for private sector (EU & producer) with increased collaboration to promote timber e.g. GTF Forestry sector has been leading the way  apply lessons to other agricultural commodities (palm, soy, cattle…)

Thank you