1. EU Action Plan for Forest Law Enforcement, Governance and Trade EU FLEGT Update Chatham House, London, 25 January 2007 25 January 2007

2. EU Action Plan for Forest Law Enforcement, Governance and Trade Recent developments FLEGT Partnership negotiations FLEGT Partnership negotiations Country level FLEGT consultations Country level FLEGT consultations EC development cooperation EC development cooperation Additional legislative options consultation Additional legislative options consultation

3. EU Action Plan for Forest Law Enforcement, Governance and Trade FLEGT Partnership negotiations Malaysia : 1 st session Jan 19 th in Sarawak. Malaysia : 1 st session Jan 19 th in Sarawak. Ghana announced in December in Brussels its ambition to conclude agreement by end of 2007 Ghana announced in December in Brussels its ambition to conclude agreement by end of 2007 Indonesia the same in January 2007: first session planned for March. Indonesia the same in January 2007: first session planned for March.

4. EU Action Plan for Forest Law Enforcement, Governance and Trade Informal discussions on FLEGT partnerships Informal discussions and preparatory work on- going in Cameroon, Congo, Central African Republic, Liberia, Gabon, Vietnam, Cote d’Ivoire, Ecuador The enquiries and interest are growing……….

5. EU Action Plan for Forest Law Enforcement, Governance and Trade Partnership Agreements Establish legality licensing for timber exports to EU. Legality = appropriate laws of partner country Establish legality licensing for timber exports to EU. Legality = appropriate laws of partner country Will allow EU Customs to exclude timber if it does not have a FLEGT license from the partner country. Will allow EU Customs to exclude timber if it does not have a FLEGT license from the partner country. Will include capacity-building measures and measures to mitigate negative impacts on poor people Will include capacity-building measures and measures to mitigate negative impacts on poor people Apply to a limited range of product categories, but there is scope for partner countries to expand this Apply to a limited range of product categories, but there is scope for partner countries to expand this

6. EU Action Plan for Forest Law Enforcement, Governance and Trade Building partnerships Informal consultations with civil society, govt, private sector, judiciary to introduce FLEGT Informal consultations with civil society, govt, private sector, judiciary to introduce FLEGT Followed by structured process to id governance challenges, develop legality definition, identify gaps in regulatory systems, design COC and verification systems from forest to mill to port; Followed by structured process to id governance challenges, develop legality definition, identify gaps in regulatory systems, design COC and verification systems from forest to mill to port; Formal negotiations will probably follow an agreed “roadmap” of issues to be addressed Formal negotiations will probably follow an agreed “roadmap” of issues to be addressed In no country will this be straightforward - the challenge- to address thorny governance problems while supporting responsible trade In no country will this be straightforward - the challenge- to address thorny governance problems while supporting responsible trade

7. EU Action Plan for Forest Law Enforcement, Governance and Trade Assistance to improve governance Improved control: systems to track and verify legal compliance Improved control: systems to track and verify legal compliance Systems to better capture revenues and rents Systems to better capture revenues and rents Enhanced transparency Enhanced transparency Capacity building (of govt., civil society, private sector) Capacity building (of govt., civil society, private sector) Policy and legal reform Policy and legal reform Securing and maintaining market share Securing and maintaining market share

8. EU Action Plan for Forest Law Enforcement, Governance and Trade Financing VPA processes €2.5 M multi-donor facility to support development of VPAs with European Forest Institute €2.5 M multi-donor facility to support development of VPAs with European Forest Institute €13.3 M FLEGT projects in 2006 budget line; €11.4 M for projects with indigenous peoples and forests €13.3 M FLEGT projects in 2006 budget line; €11.4 M for projects with indigenous peoples and forests €10 million for VPAs in ACP countries under design €10 million for VPAs in ACP countries under design €34M in new thematic programme €34M in new thematic programme FLEGT a theme in EC country strategies with governance focus (2008-2013) FLEGT a theme in EC country strategies with governance focus (2008-2013)

9. EU Action Plan for Forest Law Enforcement, Governance and Trade

12. Additional Options Consultations Launched just before Christmas Launched just before Christmas Open until 05 March 2007 Open until 05 March 2007 Inputs welcome - EU and non-EU Inputs welcome - EU and non-EU Link: Link: www.ec.europa.eu/yourvoice/consultations/index_en.htm

13. EU Action Plan for Forest Law Enforcement, Governance and Trade Additional Options Consultations Main options considered: FLEGT VPAs FLEGT VPAs Private sector actions Private sector actions Ban on imports of illegally harvested timber Ban on imports of illegally harvested timber Legislation on placing on the market of illegally harvested timber. Sub-options: Legislation on placing on the market of illegally harvested timber. Sub-options: Prove illegality Prove illegality Show legality (universal licensing) Show legality (universal licensing)

14. EU Action Plan for Forest Law Enforcement, Governance and Trade Additional Options Consultations Summary of consultation to be published Summary of consultation to be published Impact assessment study Impact assessment study Internal discussions Internal discussions Decision on what further measures – if any Decision on what further measures – if any

15. EU Action Plan for Forest Law Enforcement, Governance and Trade Thank you For further information see: http://europa.eu.int/comm/development/body/theme/forest/initiative/index_en.htm Contacts: john.bazill@ec.europa.eu Julia.Falconer@ec.europa.eu maria.pachta@ec.europa.eu http://europa.eu.int/comm/development/body/theme/forest/initiative/index_en.htm john.bazill@ec.europa.eu Julia.Falconer@ec.europa.eu maria.pachta@ec.europa.eu http://europa.eu.int/comm/development/body/theme/forest/initiative/index_en.htm john.bazill@ec.europa.eu Julia.Falconer@ec.europa.eu maria.pachta@ec.europa.eu