1. STA – EU Trainings: Raising awareness for Public Authorities (Place & Date) Module 2 : Sustainable timber Sustainable Timber Action in Europe Training for Public Authorities

2. Objectives: sustainable forest managementThe concept of “sustainable forest management” environmental, social and economic consequencesThe environmental, social and economic consequences of illegal and unsustainable forest management practices “legal timber”The concept of “legal timber” and the EU Timber Regulation chain of custody certificationSustainable forestry and chain of custody certification: FSC & PEFC fair tradeThe fair trade in the timber sector

3. Overview 1.Ecological, social and economic impacts from illegal logging and non-sustainable forest management 2.Legal timber products 3.Sustainable timber products and chain of costudy certification 4.Fair trade in the timber sector

4. Introduction: Group exercise Do you know the origin of your timber products? Do you think that nationally sold timber products could from tropical countries?

5. -1- Ecological, social and economic impacts from illegal logging and non-sustainable forest management

6. ® FSC, A.C. All rights reserved FSC-SECR-0051 Presentation May 3, 2015 · 6 60 M of indigenous people 2/3 of living species Important CO 2 sinks Wood removals valued over US$100 billion /year The value of forests

7. Deforestation Environmental impacts

8. Land use conversion Environmental impacts

9. Forest degradation Deseases, tree fall, fires… Environmental impacts

10. Economic impacts Numerous and complex, and often interrelated with social impacts. Lost revenues for producer countries' governments (Tanzania*)  market distortions + erosion of funds for poverty alleviation. Non-sustainable forest management can decrease forest productivity  harming informal and subsistence economies.

11. Source: 2011, FAO – FRA 2010 The present situation is better then 10 years ago, but losses are partly compensated by plantations. Degradation (and loss of forest value) processes are not considered. Economic impacts

12. Social issues Forests are home to an estimated 60 M indigenous people Important cultural and social role of forests in many countries Commercial logging competes for access to the land Low concern for labour rights, health and safety along the supply chain

13. -2- Legal timber products

14. The illegal timber A general definition: ‘Illegal logging takes place when timber is harvested, transported, bought or sold in violation of national laws’ Examples of illegality in the forest sector: Logging without license (wood theft) Violation of forest regulations (species, quota) Corruption in obtaining licenses

15. Impact of illegality in the forest sector fuelled armed conflictsRevenues from illegal logging have fuelled armed conflicts (Liberia, RD Congo). Illegality in the forest sector is often linked to criminal activities involving corruption, violence and money laundering Low concern for labor rights, health and safety along the supply chain The diffusion of illegal timber at low cost hinders improvement of forest management practices. Illegality in the forest sector creates unfair conditions of competition in the market.

16. Legal = sustainable? Logging without compliance with laws Non-sustainable management of forests Forest management in contrast with equity and justice criteria ? Concepts not always connected

17. Illegalität in der Holzbranche BAD NEWS: Every 2 seconds, across the world, an area of forest the size of a football field is clear-cut by illegal loggers -> degradation and destruction o 5 Mio ha forests/y The illegal logs still being cut each year, laid end to end, would stretch ten times around the Earth. GOOD NEWS: While illegal logging remains a major problem, the impact of the response has been considerable. Illegal logging is estimated to have fallen during the last decade by: 50 % in Cameroon by between 50 and 75 % in the Brazilian Amazon by 75 % in Indonesia, Imports to major consumer and processing countries dropped by 30 % from their peak (Source: Chatham House 2010)

18. EU responsibilities in illegality 2003, EU15: import 82,24 Mmc of illegal timber (~ 20%) (EC and WWF UK, 2004) (country data can be provided):

19. EU Timber Regulation (EUTR) (from March 2013) prohibits the first placing of illegally harvested timber and timber products on the EU market. The legislation will require that due diligence is applied by companies that first place timber products on the EU market. How the EU deals with illegality:

20. -3- Sustainable timber products and their certification

21. What is sustainable timber? “Sustainable forest management, as a dynamic and evolving concept, aims to maintain and enhance the economic, social and environmental value of all types of forests, for the benefit of present and future generations” (UN, 2007)

22. Legality – that the forest owner/manager holds the legal right to harvest, and timber is harvested, processed and traded in compliance with relevant international, national and regional laws. Environmental sustainability – that the forest is managed in a way which preserves the health of the forest for future generations. Social sustainability – that timber is harvested, processed and traded with respect to the rights and working conditions of those directly affected. Sustainable management of forest implies three main issues:

23. The Forest Europe criteria for sustainable forest management (MCPFE) ASPECTSCRITERIA Ecological aspects 1. Maintenance and appropriate enhancement of forest resources and their contribution to global carbon cycles; 2. Maintenance of forest ecosystem health and vitality; 3. Maintenance, conservation and appropriate enhancement of biological diversity in forest ecosystems; 4. Maintenance and appropriate enhancement of protective functions in forest management (notably soil and water); Economic aspects 5. Maintenance and encouragement of productive functions of forests (wood and non wood); Social aspects 6. Maintenance of other socio-economic functions and condition. Ensuring sustainability

24. SFM certification How is sustainability ensured “from tree to product”? A sustainable forest management certification scheme: requires compliance with the principles of legality, environmental and social sustainability. is able to provide independent, third party verification that timber is sourced from sustainably managed forests. includes mechanisms for tracing products from the forest of origin through the supply chain, to the end consumers called Chain of Custody (CoC).

25. Internationally, 2 main forest certification schemes exist: The Forest Stewardship Council (FSC) – www.fsc.orgwww.fsc.org The Programme for the Endorsement of Forest Certification (PEFC) – www.pefc.org www.pefc.org Most sustainable timber procurement policies accept either label as one way of demonstrating compliance with the sustainability requirements SFM certification

26. What is CoC certification? Chain of Custody (CoC)Chain of Custody (CoC) Systems monitor sources, quantity balances and material flows for a given chain of costudy chain of information material separationCoC requires a chain of information as well as a process of material separation from a clearly identified source up to a defined point in the value added chain connection between the origin forest and the statement of sustainabilityIt establishes a connection between the origin forest and the statement of sustainability for the final product

27. CoC – main aspects 1. Formal communication interface for CoC certified companies  standardised information in invoices and delivery slips 2.Procedure for material separation and quantity balancing within a company  Documented, implemented and monitored routines and responsabilities CoC Managementsystems must: Identify and document origin, quantity and material flow Separate certified and non-certified products, in certain case these may be mixed according to specifications Avoid controversial This requires:

28. The verification system: At international level by ASI At national level SFM certification

29. Chain of Custody rational: All COC “rings” shall be covered by a valid FSC COC certificate The principle works for FSC as well as for PEFC It is mainly a market driven process SFM certification

30. Labels’ significance (FSC) Virgin FSC FSC Controlled Reclaimed FSC 100%: 100% FSC certified inputs. FSC Mix: FSC certified inputs + Controlled Wood inputs + recycled inputs (labelling with min content of 70% certif. input, exception to 50% for some registered products). FSC Recycled: reclaimed post-consumer (at least 85%) and pre-consumer inputs. For more information refers to FSC-STD-40-004 V2-1 and FSC-STD-50-001 V2-0

31. Labels significance (PEFC) Virgin PEFC Non controversial source Reclaimed PEFC Certified & Recycled: reclaimed post-consumer or pre-consumer inputs and certified material (min 70% of certified and recycled inputs). PEFC Certified: virgin, recycled and “non controversial” material (min 70% certified inputs). For more information go to www.pefc.org/standards/logo-usewww.pefc.org/standards/logo-use

32. In May 2012 Global area of certified forest = 394 million Ha + 4% (14.8 million hectares) since May 2011 The world’s certified forest area is approaching 10% Source: UNECE FAO 2012 Sustainable forest management

33. CoC certification– for whom? CoC certification is required for every company which may compromise the integrity of the product-related FSC label, e.g.:  Manufacture and processing of the certified material; or  Repackaging and re-labelling of products; or  (Re-)issueing of sales documents Companies don‘t need a CoC certification if they : (i)Broker between seller and buyer without physically owning the products (e.g. agents) (ii)Conducting certain activities on behalf of a certified company which are covered by procedures and appropriate arrangements (e.g. subcontractor, transport logistics)  Advertising FSC-labelled final products for the final user  do not have ownership of certified products but instead are:

34. Updates of CoC standards Integration of social aspects into the manufactering chain Compliance with ILO core criteria Strengthening of health and safety aspects No participation in activities destructive to forests Effective since 1.10.2011, compulsive since 01.10.2012 Obligation of proof for all certificate holders through the EU timber regulation (EUTR) since 1.3.2013

35. -4- Fair trade with sustainable timber

36. Question to all: FLO logo, what is this? Fair trade in the timber sector Fair Trade 2 1

37. "Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the right of, marginalized producers and workers - especially in the South“ [accepted definition of Fair Trade, as agreed by Fairtrade Labelling International (FLO) and the World Fair Trade Organization (WFTO)]

38. 1Creating Opportunities for Economically Disadvantaged Producers (poverty reduction) 2Transparency and Accountability (participation of producers in decision making) 3Fair Trading Practices (pre payment, long term contract and relationships) 4Payment of a Fair Price 5 Ensuring no Child Labour and Forced Labour (UN Convention on the Rights of the Child) 6Commitment to Non-Discrimination, Gender Equity and Freedom of Association 7Ensuring Good Working Conditions (ILO conventions) 8Providing Capacity Building to workers and producers organisations 9Promoting Fair Trade (raise awareness) 10Respect for the Environment Core Fair Trade Principles Fair Trade

39. Fair Trade and the timber sector: Around 10 million people are employed in forest management (FAO, 2010). Many more are directly dependent on forests for their livelihoods. Forestry employment is outside the formal sector  forest work is very important for rural livelihoods (FAO, 2010). In some regions (Latin America, Africa) forest related employment increased somewhat probably because roundwood production has increased faster than gains in labour productivity. But working and social conditions did not improve in this time, with direct implications for community livelihood. Fair Trade

40. Rubber sports balls Furniture Wood flooring Combining SFM and fair trade Dual certification case studies, actions and projects Other initiatives with dual certification Chile – SSC Wood Technologies Honduras - COATLHAL Bolivien – Multiagro, Santa Fe