certification, flegt vpa & malaysia · under the vpa, once signed, malaysia is to implement a...
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CERTIFICATION, FLEGT VPA & MALAYSIA
Sheam Satkuru-Granzella Director
Malaysian Timber Council London
MALAYSIAN EXPORTS TIMBER & TIMBER PRODUCTS 2012
Source:MTIB & DOS M’SIA
MALAYSIA’S top 10 MARKETS 2012
Malaysia’s Export Of Major Timber Products to EU 2012
Source: MTIB & DOS M’sia Total Approx € 1 billion
Plywood
210
10%
BJC
277
13% Sawntimber
383
18%
Furniture
859
41%
Others
49
3%
Mouldings 306 15%
MALAYSIAN timber exports to major EU destinations 2012 (by Value RM mln)
0
100
200
300
400
500
600
700
800
900
1 000
Jan - Dec 2009
Jan - Dec 2010
Jan - Dec 2011
Jan - Dec 2012
FORESTRY IN MALAYSIA Land area: 32.98 million hectares Tree cover: 24.31 million hectares (73.7% of land area) Forested area: 18.48 million hectares (56.0% of land area) Other tree crops: 6.06 million hectares (18.4% of land area) Permanent reserved forests (PRF): 14.61 million hectares National parks, wildlife and bird sanctuaries: 1.83 million hectares (9.9% of forested area) Conversion forest: 2.38 million hectares (13% of forested area) Note: This forest is to be converted to other uses in the context of a balanced long term development.
CERTIFICATION IN MALAYSIA CERTIFICATION IN MALAYSIA CERTIFICATION IN MALAYSIA
4.65 million hectares of forest in Malaysia is certified under the
Malaysian Timber Certification Scheme (MTCS). The MTCS has been endorsed by the Programme for the Endorsement of Forest Certification (PEFC) schemes SINCE May 2009 As of July 2013, 249 companies are PEFC CoC holders The MTCS is recognised as a credible timber certification programme in key markets, such as Japan, New Zealand, Germany, France, Australia, Italy, UK, Belgium, Denmark, Canada, USA, Singapore and Abu Dhabi, UAE www.mtcc.com.my for Updated Information.
MALAYSIAN TIMBER INDUSTRY
•Timber product export earnings (2012): US$6.5 billion
•
•Timber product exports contributed 2.9% of the country’s
total merchandise exports.
•Timber product exports contributed 2.3% of the country’s
GDP.
•
•Timber sector contributed 2.5% of the country’s total
employment (300,000 people)
PRIORITY Policy Challenges in the EU
INCREASING DEMAND FOR SUSTAINABLY PRODUCED TIMBER & WOOD PRODUCTS, recognised as most environmentally friendly construction material EU Timber Regulation – 3rd March 2013 Main issues for MY industry: 1. Specie description by trade name OR BOTANICAL name e.g. MLH – what species constitute MLH for ply products? Bintangor sub-species? 2. Due Diligence – what does this mean? WHO should practice Due Diligence? What level of Due Deiligence to be exercised? 3. Evidence of Legality of Source: HOW to prove Legality? PEFC/FSC COC= Low/Negligible Risk. If not, Verification of Legality Compliance e.g. SGS Legality Assurance etc
Use Timber Legality Assurance System (TLAS) as test??
Sustainability & Legality of Malaysian Timber
Sustainable timber product of SFM
(social, environmental & economic factors)
Sustainable timber assured through certification
schemes, e.g., PEFC, FSC, LEI, MTCS etc.
SFM / certification long-term goal
Legal timber milestone on journey to attain SFM /
sustainable timber
Legal timber embraces relevant legislation dealing with
social, environmental & economic aspects with lesser
number of criteria and indicators
Verification of legal timber through TLAS
Logs harvested from 3 land categories:
• Permanent Reserved Forests (PRF)
• State Land (SL)
• Alienated Land (AL)
PRF under SFM
One third certified mainly under MTCS and logs legal & sustainable
Logs from uncertified PRF legal
SL & AL not under SFM but logs harvested legal
Need for TLAS to assure legality of logs harvested from SL / AL and uncertified PRF
EU-MY FLEGT VPA Negotiations UPDATE
Formal Negotiations commenced in 2006
Under the VPA, once signed, Malaysia is to implement a Timber Legality Assurance System to verify that timber products for shipment to EU are legally produced
Only timber products verified as such and that are issued with a FLEGT licence can be exported to the EU once the VPA is signed and the TLAS is operational.
Phased implementation; Peninsular Malaysia and Sabah during initial phase.
Malaysia-EU FLEGT VPA
12
General understanding of
Malaysia VPA Process
Stakeholder consultations on key issues such as development of the Timber Legality
Assurance System (TLAS)
Assistance for capacity building would be provided
6 Principles and relevant criteria agreed with the EU prior formal negotiation
VPA would be built upon current timber licensing system
Legality definition of timber would not involve new or amendment of existing legislation
FLEGT VPA Process and
Negotiation Structure
13
MPIC
(Lead Ministry)
Stakeholder
Consultations
National Steering
Committee
(chaired by MPIC)
WG I
(legal text) WG II
(TLAS)
WG III
(market access
& capacity
building)
Malaysia-EU
Senior Officials
Meeting
(negotiating team)
Technical
Working
Group
Joint Expert
Meeting
TLAS Development Process
The TLAS had undergone a joint technical evaluation by a team of 6 consultants from
both EU and Malaysia;
• Subjected to Eleven Stakeholder Consultations;
• Discussion by five Joint Expert Meetings;
• Implementation of TLAS involves 8 agencies under 5 different Ministries for Peninsular Malaysia.
Implementation Structure of MYTLAS
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MYTLAS
MONITORING
- Third Party
Compliance Audit
- Internal Audits by
Implementing
Agencies
IMPLEMENTATION
- Implementing
Agencies:
SFD
MTIB
DOE
DOSH
DoL
SOCSO
RMC
DoA
GOVERNANCE
- TLAS Advisory
Group (TAG)
COORDINATION
- Implementing
Agency Coordination
Committee (IACC)
MYTLAS Licence
CONCLUSION?? FLEGT VPA negotiations at final stretch – hope to conclude by end 2013
BUT IN THE MEANTIME
•Malaysia is fully committed to the sustainable management of her forests,
evidenced by certification and ongoing FLEGT VPA negotiations
•Malaysian industry fully supportive of either obtaining certification and
supporting the implementation of the MYTLAS
•Peninsular Malaysia TLAS operational from 1st February 2013 - over
4000 MYTLAS licenses have been issued, well received in the EU as
instrumental in meeting Due Diligence Requirements
•Either certification OR MYTLAS will ensure continuous flow of
sustainable or legal timber products from Malaysia
Thank you www.mtc.com.my
www.mtc.com.my