drivers at the intersection of logging, timber trade, …...2011/11/30 · drivers at the...
TRANSCRIPT
Drivers at the intersection of logging, timber trade, and international investment
Andrea Johnson Director of Forest Campaigns (US)
Environmental Investigation Agency
Durban, 30 November 2011
Main points
• Let’s not forget about logging and forest degradation in this discussion
• Illegal logging offers insights on successful approaches to addressing global drivers
• International financial flows and consumer country policies must be coherent with our REDD goals in order to achieve durable change
• Wrap-up of the side event’s themes
Logging as a key driver • Logging interacts with other drivers:
– globally 28% of new ag land in 1990s created on degraded and secondary forests (Gibbs et al. 2010; Foley et al. 2007);
– In West Kalimantan, vast majority of oil palm converted from old forest concessions (Curran, unpublished)
– Revenues from timber sales necessary for short-term cash flow in agroindustrial and livestock business models
• Selective logging can destroy from 28-62% of forest (Gerwing 2002), makes forests more susceptible to fires, droughts, etc
• Still high rates of illegality in many REDD+ countries
Insights from Illegal logging • Illegal logging and associated trade cause def/deg
directly and indirectly • Basic indicator of failures in forest governance, law
enforcement, political will • Fueled by large and previously indiscriminate market
demand for artificially inexpensive pulp, paper and wood products
• Introduction of demand-side policies appears to have significant impact
• Stronger and better enforcement of existing laws can reduce deforestation and degradation
Illegal Logging and REDD
© Global Witness, 2011
Illegal logging: demand-driven
• Examples from Peru, Madagascar, Indonesia, where export markets drive trade in high-value hardwoods and pulp from lowland, carbon-rich forests
Madagascar rosewood bed, on sale in Shanghai: US$1 million
Amount left in hands of local villagers from this trade: < 0.1%
Demand-side policies are effective • Prohibitions on import, export or commerce in
illegally sourced wood products, + bilateral agreements to support legal trade
• US Lacey Act, EU Timber Regulation, EU FLEGT, as well as procurement policies have sent strong market signals over recent years
• Trade policies and laws rapidly shift legal and financial incentives for private actors with global supply chains
Law enforcement can reduce def/deg
Clearing and logging on land slated for oil palm, Central Kalimantan, Indonesia, 19 May 2011
Investment as a driver: case study
• PT Menteng, a subsidiary of Kuala Lumpur Kepong Berhad (KLK), holds Location Permit for 7400ha in Kotawaringin Timur, Kalimantan Tengah
• 19 May 2011: EIA/Telapak document clearing, planting, canals, harvesting of commercial timber species, in apparent breach of brand new moratorium on forest conversion, part of Indonesia-Norway deal
• Norway’s public pension fund is invested in KLK • Norway has over $678 million invested in forestry and
plantation companies in Indonesia
coherent policies for “all parties”
• Consumer prohibitions on illegal timber • Procurement policies, tax incentives for products
from community agriculture or forestry • Tools and req’s for supply chain transparency • Public investment fund guidelines, transparency • Private sector responsible investing and
purchasing guidelines • Assessments of donor country “REDD+ readiness”
© To
by S
mith
/EIA
Important themes today:
• Tropical deforestation and forest degradation are driven by commercial agriculture and forestry
• These are global industries, supplying markets in both ‘developed’ and ‘developing’ countries
• It is possible to produce these and other tropical products without causing deforestation
• SBSTA’s mandate must include an analysis of drivers of deforestation and degradation at a global level, including the activities, policies and consumption of “all countries” that put human pressure on forests
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