1. EU Action Plan for Forest Law Enforcement, Governance and Trade Implementing the EU FLEGT Action Plan Bucharest, 13 October 2008 Flip van Helden, DG ENV European Commission, Brussels

2. EU Action Plan for Forest Law Enforcement, Governance and Trade Overview of this presentation FPublic concern with illegal logging FMarket trends FThe EU FLEGT Action Plan äVoluntary Partnership Agreements äLegality Assurance System äDemand-side measures

3. 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

4. EU Action Plan for Forest Law Enforcement, Governance and Trade The market sets the trend FCritical end-users increasingly require legal and sustainable timber FLarger timber traders need to manage corporate and reputational risk FEuropean trade federations develop systems to provide such guarantees FMarket changing rapidly with traders talking to their suppliers abroad

5. EU Action Plan for Forest Law Enforcement, Governance and Trade World-wide developments  ’Due care’ expected of buyers in many commodity sectors. FTraders forced to manage corporate and reputational risk. FTrade federations developing codes of conduct FConsumer countries developing public procurement policies. FUS Lacey Act: Criminalizing the trade in illegally harvested timber products.

6. EU Action Plan for Forest Law Enforcement, Governance and Trade The policy response in the EU FGovernments under pressure as a result of public concern with deforestation FIncreasing recognition of the need for a stepwise approach towards SFM FIncreasing recognition of the importance of demand- side measures F2003 EU FLEGT action plan

7. EU Action Plan for Forest Law Enforcement, Governance and Trade Aims of the FLEGT Action Plan FTo take a step-wise approach towards sustainable forest management by applying existing legislation. FTo provide guarantee of legality to EU consumers purchasing timber from partner countries FTo strengthen governance by enhancing forest sector transparency, participation and accountability FTo provide incentives to make such changes

8. EU Action Plan for Forest Law Enforcement, Governance and Trade Voluntary partnership agreements I Voluntary partnership agreements between the EU and timber-producing countries to: FIncrease trade in guaranteed legal timber between FLEGT countries and the EU FSet up control and licensing systems to provide guarantee of legality FProvide financial, technical and institutional support to improving forest governance

9. EU Action Plan for Forest Law Enforcement, Governance and Trade Voluntary partnership agreements II Legality Assurance System FLegality definition based on the laws of the timber producing country and defined by that country FLegality assurance system also covers chain of custody, as well as verification, licensing and Independent monitoring procedures

10. EU Action Plan for Forest Law Enforcement, Governance and Trade Defining legality I FPartner countries propose a set of laws which together define ‘ legality’ for the purpose of FLEGT FProcess: Definition to be developed through stakeholder consultations FContent: Definition must be äconsistent äobjectively verifiable äoperationally workable

11. EU Action Plan for Forest Law Enforcement, Governance and Trade Defining legality II Definition to reflect the three pillars of SFM and cover: FThe granting of legal rights to harvest FCompliance with forest management regulations including relevant environmental and labour laws. FTaxes, fees and levies FRespect for other parties tenure/use rights FTrade and export procedures

12. EU Action Plan for Forest Law Enforcement, Governance and Trade Three types of countries FTimber producing countries: Malaysia, Indonesia, Ghana, Cameroon, Gabon, Congo, Liberia, Latin America. FProcessing hubs: China, Vietnam FConsumer countries: Japan, USA, South Korea, Australia, New Zealand, EU

13. EU Action Plan for Forest Law Enforcement, Governance and Trade FLEGT VPA’s: Where are we? FVPA with Ghana concluded. Formal negotiations with Cameroon, Congo, Malaysia and Indonesia. Talks with other countries advancing FVPA signature ≠ FLEGT licensed timber to EU FFull systems to be implemented after signature. First FLEGT timber expected in 2010. FImplementing regulation outlining FLEGT Customs procedures adopted and to be implemented by the EU MS

14. EU Action Plan for Forest Law Enforcement, Governance and Trade Thank you Flip.VAN-HELDEN@ec.europa.eu