1. business and industrial
2. agriculture and forestry
3. forestry

ETTFNews
Spring 2015
@ettf1
EUTR legality platform
takes steps forward
Further steps are underway towards creation of an ETTF– and International
Tropical Timber Organisation-backed data platform for tropical supplier country
forestry legislation and wider business information. The dual aim is to help EU operators
meet EUTR due diligence requirements and the development of tropical trade links.
A central information resource to aid
importers check timber has been legally
harvested is a long-term ETTF aspiration.
“Currently they must find out the latest
on supplier country legislation themselves
to ensure EUTR compliance,” said ETTF
Secretary General André de Boer. “That can
be a major administrative burden – and
some don’t have the resources. The online
platform won’t diminish operators’ EUTR
due diligence obligations. They’ll still have
to verify documentation is legitimate and
undertake risk assessment and mitigation, if
necessary. But a central data source would
be a useful tool.”
Mr de Boer presented on the concept at
the ITTO Council meeting in Yokohama last
November. Subsequently Dutch and Japanese
sponsors put up $80,000 of the funding.
Contents
The platform will cover
timber legality and wider
tropical trade data
02 International Hardwood Conference 2015
03 French put timber specifiers on camera
He has since moved ahead on
engagement of a consultant to develop a
workplan and a budget for ‘phase 1’ of the
project, a scoping study.
“This will go to the ITTO for approval and I
hope to present phase two for the creation of
the platform, at least in outline, to their Council
meeting this November,” said Mr de Boer.
Assistant Director Steve Johnson said
that the ITTO sponsor-contributed funds
would flow to the project on approval of the
consultant appointment and workplan.
“Part of the job initially will be to review what
kind of information is already available and
how the platform can build on this,” he said.
Mike Adams, who is overseeing the project
for the ITTO Secretariat, said the platform
would also include a range of other business
information to assist tropical timber market
diversification.
“The aim is one-stop
interactive profiles of tropical
wood-based industry and
forestry sectors to help
importers create trading
opportunities and assist
producers with little
promotional capacity,” he
said. “This would also include
data on forest production,
sustainable management,
species, trade trends, products,
production capacity, exports,
VPA negotiation details, price
trends, company and trade
association news and contacts.
All the information prospective
importers require to begin
business negotiations.”
09 Viewpoint articles by the STTC’s Iris Tzur, UK
TTF’s Anand Punja and PEFC’s Thorsten Arndt
04 Sustainable Tropical Timber Coalition urged on 11 The ETTF Newsletter interviews Belgian
Environment Minister Marie-Christine Marghem
05 Italian tropical marketeers talk promotion
on her government’s illegal timber policy,
with ATIBT
and Bart De Turck gives the Belgian Timber
06 New EUTR MOs welcome, but ßmore needed
Importers Federation recommendations for
the EUTR Review
07 GD Holz’s Thomas Goebel shares his trade and
market perspectives
13 Lead Consultant Rupert Oliver on the EU08 Byggecentre’s Palle Thomsen warns ‘don’t
waste the EUTR opportunity’
Spring 2015
backed, ITTO co-ordinated EUTR and FLEGT
International Market Monitoring Project
www.ettf.info
Dutch host the ISC
The 2015 International Softwood Conference
(ISC) takes place in Amsterdam on
November 5 and 6, with presentations and
discussions covering trade and market
trends, softwood applications, product
developments and marketing.
The event is run by the
ETTF and European
Organisation of Sawmills
(EOS) with the Royal
Netherlands Timber
Trade Association (NTTA)
as national host and
organiser.
Paul van
den Heuvel
“This year’s conference
takes place in a still
demanding economic climate, with positive
signs in some markets, but improvement
regarded as fragile,” said NTTA Managing
Director Paul van den Heuvel. “This provides
a thought-provoking backdrop for sharing
ideas and discussing trade developments, to
identify trends and explore how to address
supply and demand side issues. As ever,
the ISC will also provide unique networking
opportunities and unpack other challenges
facing our industry.”
The ISC venue is the Renaissance
Amsterdam Hotel and adjoining Koepelkerk,
an historic 17th century church, now
converted to a state-of-the-art meeting space.
The programme is in development, but
speakers will be leading industry experts and
market commentators from around the world.
They will address issues and trends from
global and regional perspectives and there will
be feedback sessions and
market workshops.
The ETTF President’s
Meeting and EOS
General Assembly will be
held in conjunction with
the ISC on November 4,
followed by a Conference
reception. A gala dinner
takes place on November
5 and there will be an
industry tour programme
on November 3.
“The Dutch wood
import sector has a long
tradition and the tour will
cover the trade, timber
manufacturing and
construction projects,”
said Mr van den Heuvel.
Further information will
be on the ISC website
within www.ettf.info
The ETTF Newsletter is produced with funding from the UK Department for International Development
The Koepelkerk
01
ETTF News
@ettf1
www.ettf.info
EOS and ETTF widen hardwood horizons
To further broaden the debate and widen participation, the International Hardwood Conference
(IHC) will be co-hosted by the European Timber Trade Federation (ETTF) and European
Organisation of the Sawmill Industry (EOS) for the first time this year.
The biennial IHC
takes place in
Copenhagen from
September 16 to
18, with the Danish
Sawmill Association
(DSA) as national
host, and Danish
Timber Trade
Federation (DTTF) as coordinator. Hardwood
producers and importers from around the
world will meet to discuss core trade issues
and hear keynote speakers. An audience of
around 150 is expected.
EOS Chairman Måns Johansson welcomed
the ETTF’s participation this year.
“We’re very pleased to extend our already
close cooperation to co-organizing the IHC
together,” he said. “It will help give the event
a truly global perspective and even wider
coverage.”
ETTF President Andreas von Möller agreed.
“We’ve co-organized the International
Softwood Conference
with EOS colleagues for
some time, and extending
our mutually supportive
relationship is very
positive,” he said.
DTTF Director Jakob
Rygg Klaumann described
this year’s Conference
speaker line-up as
“excellent”. “They will
analyse important
developments in key
hardwood markets and
give delegates valuable
data for a truly global
Carl Hansen
sector overview, as well as
hardwood
vital break-out analysis for
craftsmanship
specific regions; Europe,
Asia/China, Africa, US/Canada and the Middle
East and North Africa.”
Other IHC topics will include:
•
‘Wood for a sustainable future’, from
architectural and research standpoints
• Increasing use of wood’ from a political
perspective
• Innovative use of hardwoods
• The joint EOS-ETTF wood marketing
campaign
• The global success story of Danish
hardwood furniture
• Latest developments in the EU Timber
Regulation
• And an update on other joint EOS and
ETTF initiatives
The Conference is also billed as an open
discussion forum and prime networking
opportunity and an additional feature will be
a visit to Danish furniture maker Carl Hansen
& Søn, internationally renowned for its use of
hardwood and passion for craftsmanship.
“This will give an exclusive insight into what
makes Danish design
future so sought-after
worldwide,” said Martin
Nyrop-Larsen, President of
the Hardwood Section of
the DSA.
The conference venue
is Moltke’s Palace, with
accommodation in
Copenhagen old town.
There will also be a daylong partner programme.
The full IHC
programme, and online
registration via the
Conference website,
www.ihc2015.info, will
be available soon.
Dutch mission highlights Chinese EUTR interest
China’s growing focus on the EU Timber
Regulation (EUTR), and market legality
requirements generally, was underlined
by a visit to the Netherlands by its State
Forestry Administration (CSFA) in March.
The delegation, including CSFA
Deputy Director General of International
Cooperation Zhang Hongyan, held
discussions at the Maasvlakte customs
offices with representatives of the Dutch
Customs Administration and Netherlands
EUTR Competent Authority, the Food and
Consumer Product Safety Authority.
ETTF Secretary General André de Boer
addressed the group on private sector
perspectives of the EUTR, emphasising
that the European trade wanted strict and
uniform enforcement.
“Illegal wood is bad for business for
the EU timber sector,” he said. “It’s unfair
competition for legitimate companies and
creates a negative image.”
Spring 2015
Mr de Boer explained how timber
companies meet EUTR requirements,
including collating documentation, and
undertaking illegality risk assessment and
mitigation. He discussed the ETTF’s due
diligence scheme and the role of thirdparty sustainability certification under
the Regulation. He also addressed the EU
Forest Law Enforcement Governance and
Trade (FLEGT) initiative and the fact that
licensed timber from FLEGT Voluntary
Partnership Agreement signatory countries
will get a green lane through the Regulation.
“I also emphasised that the recent UK
Competent Authority report on EUTR
non-compliance in UK Chinese plywood
importing was not a one-off,” said Mr de
Boer. “It showed the authorities are taking
EUTR seriously and that the Chinese private
sector must play it by the book.”
The visit was organised by EC and
European Forestry Institute.
Jakob Rygg
Klaumann
Heading for new
heights
Merk CLT being lowered
into place at Treet
European timber construction height
records are falling one by one.
In London the accolade of the EU’s tallest
residential wood building is about to go to
Banyan Wharf, a 10-storey cross laminated
timber (CLT) and steel-frame apartment
block, designed by Hawkins Brown
architects and built by B&K Structures.
But later this year its title will be taken by
the 14-storey, 48m glulam and CLT Treet
tower in Bergen. Ten storeys are finished
according to architects
Artec, and completion is
scheduled for autumn.
However, this giant
will also soon be
overshadowed by the
timber and concrete
Hoho tower in Vienna.
Developed by a team
including realtors Kerbler
and architects Rüdiger
Lainer, it will top out
in 2017 at 84m and
24-storeys, comprising
Hoho tower
mainly commercial space.
Banyan Wharf
02
ETTF News
@ettf1
press reLeAse - February 2015
www.ettf.info
New videos to discover
to promote certified
tropical timber !
French customers speak out for certified tropical
timber
LCB Director Eric Boilley said the film
has marketing and educational roles.
It comprises interviews with planners,
developers, architects, a joinery manager,
the headmaster of a school where tropical
timber features, and Jean Bakouma, chair
of FSC France and assistant manager for
sustainable production of WWF France.
Each addresses various reasons for
using certified tropical timber; aesthetics,
unique technical characteristics, natural
consumer appeal and the fact that its use
supports forest communities and provides
commercial incentive for forests to be
maintained, rather than converted.
“Choosing certified tropical timber enables
us to prevent irresponsible forest activities,”
says Laurent Martinez, Pays de Loire
Regional Councillor.
Architect Brice Kohler, who designed the
Marennes Oyster City, an educational and
promotional facility for the oyster-farming
sector mounted over water on timber
stilts, said the choice of certified itauba
and angelim was doubly environmentally
sound because of the species’ durability
in marine applications. And headmaster
Jean-Jacques Barbaroux said that the
certified guarea in his school “helped
increase student’s awareness about
sustainable management”.
The film was produced as part of LCB’s
backing for the European Sustainable
Tropical Timber Coalition. The backdrop,
said Mr Boilley was significant contraction in
the French tropical timber market.
“Over the last decade, French tropical
sales have halved,” he said. “A key factor is
image and tropical timber’s association with
deforestation, so it’s important to publicise
that using certified tropical timber has
positive eco system impacts.”
LCB has mailed 500 French journalists
and 10,000 construction and design
professionals about the film.
View it at www.lecommercedubois.org,
on YouTube at http://www.bit.ly/1FAPy8U
or FSC France’s YouTube Channel.
Global Timber Forum
set for live launch
The Global Timber Forum (GTF) website,
the new international networking and
communications platform, is going live at
www.gtf-info.com
The GTF held its first internationally attended
summit in Rome in 2013 co-convened by the
ETTF, Food and Agriculture Organisation of
Andreas
the United Nations and the TFT/Timber Trade
von Möller
Action Plan. It was decided there that the
Forum’s role would be to develop an open
access website and events programme, “to encourage international
dialogue, particularly between private sector trade bodies, to
exchange ideas and best practice, and work with others to voice
timber sector perspectives”.
Africa Advisory Panel Member Francoise van de Ven said the
GTF could “strengthen north/south communication and reinforce
global collaboration against illegal timber trade, while Robbie
Weich, for South America, said it could also “help liaison with
governmental bodies”.
European Member and ETTF president Andreas von Möller
said the GTF’s potential was evident in Rome. “Forest and primary
producer sector representatives met and communicated with the
international trade, remanufacturers and consumers, government
and NGOs,” he said. "A special spirit was started."
The UK Department for International Development (DFID)
supported further GTF development and the website framework
was reviewed by Advisory Panel members at the recent
International Wood Products Association Conference in Las Vegas.
The website includes a global industry contact database and
specific news focused on the economic, social and environmental
benefits of a legal and sustainable timber and forestry sector.
The Forum section is an interactive facility where site users post
opinions, and raise issues and developments.
“Others can then respond live, with the aim of promoting
international conversation,” said GTF Manager Rachel Butler, adding
that the site would develop in line with users’ needs and input.
The next GTF Summit is in Shanghai from June 9-11, co-hosted by the
China Timber and Wood Products Distribution Association (CTWPDA)
and China National Forest Products Industry Association (CNFPIA).
For more: [email protected] or [email protected]
Spring 2015
I trust
certified tropical timber
doc. Le Commerce du Bois
An innovative new certified tropical timber
promotional video from Le Commerce du
Bois (LCB) is being widely broadcast.
Guy Guedj, Project Manager of the
Seine Docks development scheme
on camera for the video
ATIBT widens market research
The ATIBT International Tropical Timber Technical Association
is widening market research into European tropical timber
perceptions to help direct new communications strategies.
Communications Head Tullia Baldassarri told the
ATIBT International Forum last November about its
consumer marketing survey in France.
“This was the pilot and we’re announcing the
findings later,” she said. “But we already see an
important [next move] will be to widen its scope to
other key countries; the Netherlands, UK, Belgium,
Germany, Italy, Portugal and Spain.”
The ATIBT is also working with WWF France and
FSC France on a ‘barometer’ study to gauge local
Jean Bakouma
authority attitudes and procurement policies.
“This follows [the WWF’s] publication of a local
authority procurement guide under the ECORAF
central Africa certification project to encourage certified tropical
timber purchase in Europe,” said Ms Baldassarri.
“The barometer will rank local authorities by responsible timber
buying,” said Jean Bakouma, of both FSC and WWF France, who is
interviewed in a recent ATIBT Newsletter. “It will encourage them
to use our procurement guide.”
The ATIBT has also just published interviews on local authority
procurement policy in their countries with WWF Germany,
Netherlands and UK.
“We will be going further into our analysis at our next Forum
during Expo in Milan this October,” said Ms Baldassarri.
How to procure this...
from this
03
ETTF News
@ettf1
www.ettf.info
Tropical timber initiative sets sights higher
The ETTF-backed European Sustainable Tropical Timber Coalition (STTC) is pushing forward in its objective to develop the European
market for sustainably certified tropical wood. But more needs to be done to raise awareness of the issues and widen participation.
These were conclusions from the second
STTC annual conference in Valencia in
February, which attracted 70 delegates.
The STTC launched in late 2013 in the
face of rising concern that the EU Timber
Regulation might result in further decline in
an already shrinking tropical timber market.
Initiated by the Dutch government backed
IDH-The Sustainable Trade Initiative, the
aim was to bring together industry, NGOs
and local and central government to raise
awareness of the availability of certified
tropical timber and its role in underpinning
sustainable forest management.
“Through public and private sector
support, the STTC aims to lift certified tropical
timber demand to mainstream level,” said IDH
Programme Director Ted van der Put.
André de Boer talks to a fellow delegate at the Conference
To achieve its goal, STTC established
working groups for key strategy areas;
promotion and communication; legality
and sustainability; business encounters
(for encouraging international tropical trade
connections); and technical issues.
These continue to develop their
objectives, the conference heard,
but have already undertaken various
activities. Support mechanisms have been
established for operations managing 4.5m
ha of certified forest, and the technical
working group has overseen launch of a
website (currently being translated from
Dutch to English) on lesser-known tropical
species – www.houtdatabase.nl .
ETTF Secretary General André de Boer
presented on behalf of the timber sector,
detailing STTC trade supporters’ liaison with
target markets and events where they had
promoted its activities.
“Our aim is now more market-to-producer
links, and greater use of national federation
communications channels to promote
sustainable tropical timber,” he said.
Other speakers included Jose Luis
Canchaya of Madreacre, talking on
the European market’s role in driving
sustainable forest management in Peru.
The event was also sponsored by Danzer
Group member Interholco, home products
retail giant Kingfisher and UK importer
Spain solidly behind STTC
The Spanish Timber Trade Federation AEIM
reinforced its support for the European
Sustainable Tropical Timber Coalition (STTC)
at its Valencia Conference.
Secretary General
Alberto Romero (left)
Alberto Romero
at the STTC Conference
was a panel speaker
and the AEIM was
shortlisted for the inaugural STTC Award in
recognition of its certified tropical timber
promotion.
AEIM members account for 73% of Spain’s
tropical timber imports and Mr Romero said
it had introduced a responsible purchasing
policy in 2008, and its EU Timber Regulation
aligned due diligence system in 2011. It
also launched a live supplier illegality risk
assessment website, www.maderalegal.info,
now covering 110 countries.
Ted van der Put
of STTC initiator
IDH presents
Julia Luisa
Willsher with
Madinter’s prize
Spring 2015
“Our recently redesigned www.aeim.org
site also features the STTC logo and
information,” he said. “In line with STTC
strategy to promote lesser known species,
it additionally includes performance data on
45 secondary varieties.”
He said Spain’s tropical imports did not
seem to have been affected by EU Timber
Regulation-induced risk aversion and were
worth €68 million from January to September
last year. But the sector still recognised the
importance of promoting certified timber to
encourage sustainable forest management
and to “combine efforts with other
organizations, like the STTC, to achieve results”.
AEIM is focusing especially on influencing
Spanish public procurement policies in
favour of certified tropical wood.
“Most rank local supply higher than
certification, an approach we need to
correct,” said Mr Romero.
AEIM was an STTC Award runner-up. The
prize was won by Cerceda-based Madinter,
one of its members and an international
specialist in certified tropical timber for musical
instruments, with Cameroonian milling and
processing operations.
European applications promote the
potential of certified tropical timber
James Latham.
The latter’s managing director Peter
Latham said the STTC filled a valuable role,
bringing “diverse stakeholders together
to encourage concession owners to get
certified and promoting the ‘use or lose
tropical forests’ message”. But, he added, it
needed to reach an even wider audience.
“And as certification and EU Timber
Regulation compliance favour businesses
with more resources, we must do more to
support smaller producers,” he said.
A spokesperson said that the consensus
was also for the STTC to raise greater
consumer awareness.
Finns tell story of
wood worldwide
The Finnish Timber Council, Puuinfo has
created a multi-lingual video and info
graphic on the environmental merits and
performance of timber.
The video is in English, Chinese,
French, German, Finnish and Russian at
www.youtube.com/user/Puuinfo or at
www.woodproducts.fi, where the poster
can also be downloaded.
The campaign features key messages,
about wood’s versatility and renewability,
highlighting that the volume used in a ‘midsized’ timber-based block of flats grows in
Finland every 29 seconds.
“We’d like people to embed the video on
their websites,” said a Puuinfo spokesperson.
“And the infographic can be used online, in
literature and as in-store posters.”
www.puuinfo.fi
04
ETTF News
@ettf1
Fedecomlegno talks tactics with ATIBT
Italian Timber Trade Federation Fedecomlegno has held talks with International
Tropical Timber Technical Association (ATIBT) aimed at accelerating recovery in
the tropical timber sector.
“Italian tropical imports have stopped
falling, but are still a third of 2007 levels,
at 400,000m3 for the first 10 months of
2014,” said Fedecomlegno Chief Executive
Domenico Corradetti. “Tentative signs of
turnaround are encouraging action to
increase market confidence. To discuss
this, a Fedecomlegno delegation, including
President Domenico Corà and tropical
company marketing specialists, met
with ATIBT Director Ralph Ridder and
Communications Head Tullia Baldassarri.”
Fedecomlegno attributes Italy’s tropical
timber decline partly to environmental
concern, particularly since the introduction of
the EU Timber Regulation (EUTR), but also the
recession and logistical problems at the key
Cameroonian port of Douala.
“Faced with these factors, we wanted to
reinforce ties with ATIBT and gain the benefit
of their expertise in raising tropical timber
trade awareness and market confidence,”
said Mr Corradetti. “Discussions centred
on advances in sustainability and legality
verification in Central Africa, the impact of
the EUTR and changes we should press for
in its current Review.”
The ATIBT team also discussed plans
for their October International Forum,
Italian tropical
imports are
stable, but low
which takes place in Milan, and met with
representatives of Italian EUTR Monitoring
Organisation Conlegno and individual tropical
timber companies.
Mr Ridder described the mission as “very
constructive”.
“On revision of the EUTR, we agreed
the need for recognition of government
approved private [legality assurance]
standards that are FLEGT compatible and
also agreement on country-specific sets of
legality assurance documents that ensure
minimum compliance,” he
said. “We both also back
uniform EUTR enforcement
EU-wide.”
ATIBT also recognised
potential in Conlegno’s EUTR
online illegality risk analysis
system. “It could be replicated
by other EU countries,” said
Ms Baldassarri. “And others
could also benefit from
work we saw from Professor
Roberto Zanuttini of Turin
University on non-technical
Tullia Baldassarri, Ralph Ridder, and
anatomical timber species
Domenico Corà with other delegation members
recognition.”
Tracking the
carbon trail
Austrian promotional
initiative pro: Holz says
the latest promotion
under its ‘Holz ist genial’ –
‘wood is good’– campaign,
is making an impact
(www.holzistgenial.at).
Part of a three-year programme, the eyecatching green footprint execution features
the slogan 'Durch den Footprint betrachtet'
(tracked by its footprint). The theme is wood’s
carbon and other environmental credentials
and it comprises a mix of print, online and
cinema promotion across Austria.
“The key focus is increasing awareness of
Spring 2015
the environmental positives of sustainable
forest management and timber building,”
said pro:Holz’s Amely Brouwers.
In the meantime, pro:Holz’s Woodbox
mobile timber construction showcase
continues its European tour. On the 2015
itinerary are Zagreb, Turin, Linz, Vienna
and possibly London.
www.ettf.info
WWF wants sustainable
timber only by 2020
The WWF is looking to take its new UK
Forests Campaign, urging strict EU
Timber Regulation (EUTR) enforcement
and a commitment to sustainable timber
sourcing by 2020, Europe-wide. But, while
supporting the NGO’s first goal, the ETTF
says its sustainable procurement target
cannot be a legal requirement.
The WWF campaign launched in the UK
in December, but has just had its biggest
publicity event, a House of Commons
reception. Around 200 people attended,
including timber industry and certification
scheme representatives, NGOs and
politicians. The event was sponsored by
leading timber company James Latham plc,
international building products giant SaintGobain, and diy and merchant business
Kingfisher plc. They are among 34 business
signatories to the campaign.
The WWF and its backers are calling
on the UK and EU to ensure the current
Statutory Review of the EUTR results in
uniform pan-EU implementation. They also
want all timber product exemptions ended.
Next, states the campaign, it wants the
UK to go beyond timber legality, and ensure
public and private procurement of all woodbased products from sustainably managed
forests only by 2020.
Its action plan for this includes
commitments from government to procuring
only certified sustainable timber, voluntary
agreements with business to the same end,
and support for small business to ensure
they are not disadvantaged by a 100%
sustainable market.
WWF Global Forest Trade Network UK
head Julia Young said the NGO also wanted
the Campaign to move from UK to EU level.
“We’ll be asking companies across Europe
to engage politicians for action to transform
the market,” she said.
ETTF Secretary General André de Boer
backed the WWF’s stance on the EUTR, but
warned that stepping up from ensuring legality
to sustainability could only be voluntary.
“ETTF has hammered on the anvil of
strict and equal EUTR enforcement and are
happy that the WWF joins us,” he said. “We
also endorse policies to raise sustainably
produced timber’s market share. But, the
concept of sustainability is too ambiguous to
have it enforced by law.”
WWF UK head David
Nussbaum addresses the
parliamentary reception
05
ETTF News
@ettf1
Pressure for faster MO approval
André de Boer
Thomas Goebel
Eric Boilley
In the latest round of approvals, five
more organisations gained MO status,
entitling them to establish and manage due
diligence systems on behalf of EU operator
companies. They included ETTF members
Le Commerce du Bois of France and GD
Holz Service GmbH, the MO arm of GD Holz
of Germany. Others were Italian auditing
body ICILA srl, and the UK’s SGS UK Ltd
and Soil Association Woodmark –
www.ettf.info February.
Le Commerce du Bois (LCB) Director Eric
Boilley said the approval was “recognition
of our expertise in the field of responsible
procurement”.
GD Holz Chief Executive Officer Thomas
Goebel said gaining MO status would
enable it to support small to medium sized
operators especially.
"They need a down to earth [due
diligence] approach," he said. "That is what
GD Holz Service offers."
Latest EU Timber
Regulation (EUTR)
Monitoring Organisation
(MO) approvals were
welcomed by the ETTF.
But there are still only nine
and it remains unclear
how many applications
are outstanding. There are
also calls for application
processing to be reformed.
However, ETTF Secretary General
André de Boer, who has been pressing for
faster MO processing since the EUTR was
implemented in 2013, said there was still
not enough urgency.
“ETTF is very pleased that GD Holz and
LCB got their MO approvals and congratulate
our colleagues,” he said. “Unfortunately
the Netherlands Timber Trade Association,
Belgian Timber Importers Federation (BFHI)
and others are still waiting.”
The EC still takes final decisions, but
is now sharing initial MO application
assessment with environmental
consultancies Finland-based Indufor and
UK-based Efeca. However it was unable to
say how many remain in process and when
the next will be approved.
BFHI General Secretary Bart De Turck
has called on the EC to allow national
bodies to approve MOs to speed up the
system (see p12).
www.ettf.info
Stockholm’s 6000 wood homes
A major timber-based construction
programme is planned for Stockholm, which
could see 6,000 dwellings built in a decade.
The two companies reported behind the
ambitious project are contractor and house
developers Folkhem and Rikshem. The former
has been involved in a range of headlinegrabbing wood-based buildings, including
the eight-storey, multi-block development in
Stockholm suburb Sundbyberg, on which it
worked with sawmiller-to-timber-construction
specialist Martinsons. This comprised
principally cross laminated timber and glulam
and was entirely clad in cedar shingles.
The new development will be a mix of
low to medium-rise buildings, the tallest
13-storeys. Three show home/studios have
already been developed and multiple
potential construction sites identified.
UK Competent Authority plywood probe makes impact
The UK EUTR Competent Authority (CA) says its hard-hitting report into EUTR noncompliance among the country’s Chinese plywood importers, received a positive
industry response and international attention.
The National Measurement Office (NMO)
released its investigation results earlier
this year – www.ettf.info February.
It examined the EUTR procedures of 16
importers and found that due diligence
procedures at 14 were non-compliant.
It also put 13 product samples through
species testing. This showed that
constituent materials of nine were not as
declared.
The importers involved were principally
small to medium-sized enterprises,
accounting for 10% of UK plywood imports
between them. But NMO EUTR Enforcement
Policy Officer Michael Worrell said the
degree of non-conformity still indicated the
potential scale of the problem in the sector.
“It highlights that composite products
from half way round the world, with complex
chain of custody and containing tropical
plywood, represent a high EUTR compliance
risk,” he said. “You cannot necessarily take
paperwork at face value with such products.
You may need further risk mitigation.”
Subsequently, the NMO report has had
“good comments”.
“It has reached a wide audience and other
sectors have picked it up,” said Mr Worrell.
Spring 2015
“It has also attracted attention elsewhere
in Europe and we’ve been in contact with
other member states. Communication has
been constructive.”
The UK Timber Trade Federation (TTF)
welcomed the report as an indication the
authorities were taking the EUTR seriously.
“Most importantly for the TTF, the
report provides the clearest benchmark
of the NMO’s expectations of industry’s
approach to due diligence – something
we’ve requested since 2014,” said the
organisation. “It is also supportive of our key
messages about what due diligence should
look like.”
The report would also provide ‘renewed
trade focus’ on ensuring no illegal timber
enters UK supply chains (see p9), it said.
ETTF Secretary General André de Boer
also welcomed the NMO’s unambiguous
conclusions.
“I support the TTF's view,” he said. “It’s a
clear signal that the EUTR has to be taken
seriously, for very good reasons.”
The NMO said it is looking into other EUTR
compliance high-risk product areas, but
cannot reveal which. It may also review the
Chinese plywood import sector again.
06
Interview
@ettf1
Thomas
Goebel
www.ettf.info
Pushing for EUTR and
FLEGT progress
With German market conditions
improving, members coping well
with the EU Timber Regulation and its
Monitoring Organisation application
approved, trade federation GD Holz
is upbeat. But, says Chief Executive
Thomas Goebel, it wants more uniform
EUTR enforcement across the EU and
swifter progress on FLEGT.
ETTF: What is the state of the German
timber trade and wider economy? Does
the industry feel the downturn is over?
Thomas Goebbel (TG): In 2014 the sector
achieved sales growth of 4%, which was a
very good result. Garden wood products sold
particularly well, as did wood-based panels
and interior doors. Conditions for timber
framework building are comparatively good
too. In fact building completions overall
are now at a high level and an energetic
refurbishment sector should also provide
additional turnover. Neither the economy or
construction actually went into recession per
se, and the outlook for both is good. So we’re
optimistic that 2015 prospects for the trade
are moderately positive.
ETTF: Is there interest in starting a wood
promotional campaign in Germany?
TG: Unfortunately, there is no unified approach
and continuing efforts from forest and woodbased industries associations to create a joint
marketing campaign have not come to fruition.
ETTF: Has the GD Holz membership
managed introductiion of the EU Timber
Regulation EUTR well?
TG: They've dealt with implementation
and management of the due diligence
requirements very professionally since the
legislation came into force two years ago.
They've received strong support from the
association from the outset and on-site
visits and audits have clearly demonstrated
the effectiveness of their procedures and
processes. It’s difficult to assess whether
this goes for non-GD Holz members as well,
especially those whose core competence
isn't timber importing. But, we also receive
numerous enquiries from them, highlighting
that they are aware of the EUTR's demands
and keen to get correct information.
ETTF: Has your Competent Authority (CA),
the BLE, enforced it strictly?
TG: The BLE conducted a number of
examinations of German timber importers
through 2013 and 2014, but maintains that the
Spring 2015
outcomes of these were limited to calling for
procedural amendments and improvements.
They took into account the lack of uniformity
in implementation of the Regulation across
the EU, and did not impose further sanctions.
But the situation is now changing. The BLE has
announced that its checks on due diligence
procedure will be stricter. It will apply a very
narrow interpretation of the Corruption
Perceptions Index (CPI) and undertake very
detailed supply chain examinations. However,
its audits in 2014 did not reveal any serious
problems. We’re very satisfied with that result.
ETTF: GD Holz Service GmbH has gained
EUTR Monitoring Organisation (MO)
status. How significant is that ?
TG: We’re happy we finally obtained
accreditation, two and a half years after
submitting our application! We’ve received
many congratulations from members, so
we assume the 85 participants in our due
diligence programme will also sign new service
contracts with GD Holz Service GmbH.
Using an MO offers a wide range of
advantages, notably detailed and up-to-date
information on key issues via a common
internet platform. The MO also undertakes
due diligence examinations of the same high
standards as a CA’s. Importing companies,
which are not partners of the MO, won’t have
access to this support and information flow.
And the cost of the service relative to its value
is also very moderate.
ETTF: What is GD Holz's view on reported
lack of uniformity of EUTR enforcement?
TG: We’re very dissatisfied that it hasn’t
been implemented consistently and equally.
It clearly puts German companies at a
competitive disadvantage. We understand
most countries have now enacted appropriate
national legislation, but some are still not
Conditions in the German timber frame and overall
construction sectors are positive. The refurbishment
and improvement sector is also strong.
IMAGES: COURTESY OF WEBERHAUS AND WEINMANN
WOODWORKING MACHINERY
undertaking effective monitoring. We call
on the Commission to exert more pressure
on them. As long as the EUTR is not equally
enforced by all member states, any further
amendments will be questionable. Only when
consistently enacted can it fully develop.
ETTF: Is there support for the wider Forest
Law Enforcement Governance and Trade
programme (FLEGT) in Germany?
TG: The German trade has always supported
FLEGT, so we regret that FLEGT-licensed
products are not yet on the market. There
have been efforts to accelerate the process,
but results so far are inadequate. However
we do believe the FLEGT process has
triggered positive developments in supplier
countries; increasing legality perception
and sustainability and improving document
management. This can be helpful in EUTR due
diligence and risk-mitigation.
ETTF: Is there also backing for the European
Sustainable Tropical Timber Coalition?
TG: Yes because it makes sense to promote
use of tropically sourced timber since the
introduction of the EUTR. In fact, we’re preparing
a project on this topic, to be presented at an
upcoming leading German trade fair.
07
ETTF News
@ettf1
www.ettf.info
UK federation merger off, collaborative body on
The UK Timber Trade Federation (TTF) and British Woodworking Federation (BWF) have
ended talks on a full merger, but are still launching launch a joint collaborative body.
In March, the TTF said that there was
backing for the new Confederation of
Timber Industries (CTI) as an umbrella
body, which would deepen co-operation
with the BWF and potentially attract other
UK associations.
However, it said the formal TTF/BWF
merger previously in discussion, which
could have created an organisation with
over 1,000 members, is off the table.
"We concluded there’s support to launch
the CTI without the need to merge our
organisational activities into one entity," said
TTF President Stephen King. "So all energy is
now focussed on the CTI’s development."
“Obviously, we’re disappointed, as the
prize of a joined up voice for timber was
great,” said BWF Chief Executive Iain
McIlwee. “But serving our members’ needs
is our unwavering responsibility.”
He said the BWF would now “continue to
look at opportunities [for collaboration],
including through the Wood for Good
generic marketing campaign and its work
to develop a stronger macro voice on
timber issues”.
TTF Chief Executive
David Lennan
BWF Chief Executive
Iain McIlwee
The new CTI will launch on June 10.
Its focus is expected to include political
engagement and lobbying, raising quality
standards, training and skills.
Viewpoint
An urgent case for uniformity
Denmark and others
follow the letter of
EUTR law. Some EU
states still don’t
Danske Byggecentre Chief Executive Palle Thomsen sees the EUTR as a major prize in terms
of blocking illegal timber from the EU and protecting the trade’s reputation. But he warns it
could be thrown away without equal enforcement EU-wide.
"It’s two years
since the EU
Timber Regulation
(EUTR) came into
effect, forcing EU
timber operators
to conduct due
diligence and
ensure products
were legally
harvested.
The implementation energy put into the
Regulation is, however, very different across
EU member states, despite good intentions
and the otherwise forceful nature of this type
of regulation. This lack of uniformity makes
it difficult for even the most ardent EUTR
supporters to justify zealous enforcement.
Without their commitment to drive this
process forward, the effort to outlaw illegal
wood could be hampered, even wasted.
Denmark is among those actively enforcing
the EUTR. In fact, public agencies are doing so
with rigor, through both inspections and major
efforts to inform all relevant parties about
what it means for them and the obligations of
Palle
Thomsen
Spring 2015
various supply chain actors. The government
has also introduced sourcing guideline
sustainability requirements for all public
consumption of wood and wood-related
products. And private companies are adopting
similar provisions.
No free lunch
That is all good and will no doubt make an
impact, but also entails added administrative
burden through the supply chain. That
obviously comes at a price, a price which
ultimately falls to companies that sell timber
and other forest products, translating into
lower profit margins, or higher prices for
consumers. Either way it does not improve
competitiveness versus companies that are
exempt these costs.
Obviously, whether private businesses
establish standards that go beyond EUTR
demands is their concern. However
problems occur when entire member states
interpret the Regulation and how to enforce
it differently.
Since the EUTR came into effect, it has
become apparent that some countries have
applied a much more relaxed approach
than others. This difference in enforcement
creates a gap in the level of resources that
businesses need to spend to comply. So
difference in enforcement and interpretation
directly affects competitiveness between
companies in different member states.
Unintentionally it skews competition.
Harmonisation paramount
If the EU and its members want the EUTR
to foster greater awareness about use of
legal and sustainable timber, it is therefore
important we tackle lack of uniformity.
Otherwise, we risk reaching a point where
the most rigorous and ambitious countries
have to slow down or even reverse
progressive enforcement initiatives to protect
their domestic business and trade interests
against unfair EU competition. This would, in
turn, leave the countries where enforcement
is lax with no reason to improve because
they see others have scaled back or given
up on the EUTR. Then we would end up
in a worse place than we were before the
Regulation was introduced in March 2013."
08
Viewpoints
@ettf1
Sustaining the
right tropical
note
Tropical timber guitar from Madinter of Spain
It’s latest summit showed the Sustainable Tropical Timber
Coalition pushing forward with its goals to make sustainably
certified tropical wood the European market mainstream norm,
says Communications Manager Iris Tzur.
“Spain. Flamenco guitars.
Cajon. Violins. Muuuuusic.
A perfect holiday image
looms before my eyes, but I
was at the second congress of the European
Sustainable Tropical Timber Coalition (STTC)
in Valencia in February (see p4). The topic of
conversation was not our last holiday, but the
bread and butter for speaker, Luisa Willsher,
from Madinter. Did you know that many
musical instruments are made of tropical
timber? According to Luisa, it’s 80%.
Madinter specializes in the creation of
such instruments, and uses more than 30%
sustainable tropical timber to make them.
Consequently, the Spanish company was
nominated for the STTC Award, which goes
to the organisation or business that has
Iris Tzur
been most active and the most creative in
attempts to increase European sustainable
tropical timber demand.
With an enthusiastic presentation on how
Madinter is committed to responsible trade,
Luisa won the hearts of the public and the
professional jury and the company duly took
the Award.
The rest of the STTC event featured key
tropical timber sector players debating how
to increase Europe’s sustainable tropical
timber appetite further.
Lively discussions were held on a variety of
topics. Speakers and audience considered
how to attract more companies to the
STTC, how public authorities could be
better motivated and supported to procure
sustainable tropical timber, and how
Setting legality benchmarks
and best practice
UK Timber Trade Federation Head of Sustainability
Anand Punja says a recent investigation into UK
importers of Chinese plywood in the country
sets a benchmark in EUTR compliance for
the wider timber sector.
Some now want certification schemes
to be given greater weight in EUTR DD
and risk mitigation
Spring 2015
www.ettf.info
technical improvements regarding yields and
use of lesser known timber species could
further boost sales and market share of the
material in Europe. The consensus was that
a priority was for the STTC to secure more
members to start with, in order to reach the
target tipping point where 30% of all tropical
timber in Europe is sustainable. The question
left hanging for delegates to take away and
contemplate further, is where we could find
such members.
Naturally, the day did not offer the all
round solution to the fact that millions of
hectares of tropical forests are still being lost
each year. But it did show that many tropical
timber companies from across Europe
see the necessity for doing business in a
sustainable way. That, in turn, should lead
to consumers being stimulated to use more
tropical wood, helping provide the financial
underpinning for sustainable management of
the forests and protecting the livelihoods of
the millions of people who depend on them.
The object of the European STTC is to
increase demand for timber from sustainably
managed tropical forests to a mainstream
level. It is supported by IDH, The Sustainable
Trade Initiative which is dedicated to
nurturing and upscaling sustainable trade by
building impact oriented coalitions of front
running companies, civil society organizations,
governments and other stakeholders.
By bringing public and private interests
together and combining the strengths,
and knowledge of a range of players, IDH
programmes, like the STTC, can sustainably
transform commodity markets to create
large-scale improvements in the lives
and well-being of hundreds of thousands
of small-scale producers. At the same
time the projects help reduce negative
environmental impacts, and support local
value creation in developing countries. The
goal is to make sustainable production and
consumption the norm. It's a natural fit
with the ambitions of the environmentally
concerned and legitimate businesses that
make up the overwhelming majority of the
tropical timber trade.”
"In February, the UK EU Timber
Regulation (EUTR) Competent
Authority (CA) reported that a
number of importers of Chinese
plywood it had checked had failed
to comply fully with the EUTR’s due
diligence requirements.
The National Measurement Office
(NMO), found that 14 of the 16
companies (which were mainly
Anand
small to medium sized enterprises,
Punja
together accounting for 10% of
UK Chinese plywood imports in
2013/14) had conducted insufficient due
diligence (DD). And it reported that: “the
common thread running through failures
was lack of narrative explaining how the
combination of document gathering, risk
assessment and mitigation enable the
company to reach a conclusion of negligible
risk that the timber was sourced illegally”.
Furthermore, the NMO found that in nine of
continued...
09
Viewpoints
@ettf1
Setting legality ... continued
the 13 products it tested from the companies,
the plywood component species did not
match what was declared.
Overall the TTF welcomed the report. It was
a timely reminder that the UK government
is taking the EUTR seriously and is intent on
being a leader in the battle to manage illegal
wood out of UK supply chains. But the NMO
also indicated that we are in a strong position
as a trade, stating that its findings showed
“the overall risk of illegal logging in the supply
chain was low”. This analysis is consistent
with the TTF and Chatham House’s 2014
analysis of illegal timber in the UK. So the
primary challenge for the sector remains one
of procedures and process.
The most important outcome of the report
for the TTF was to provide a clear benchmark
for the NMO’s expectations of industry in
terms of due diligence. It is looking at due
diligence in a slightly different way to what
we and others interpreted; more like a logical
story showing how all the different parts
relate to arrive at a conclusion of negligible
risk (directly, or through mitigation), rather
than the equation-based approach I foresaw.
But we can now use the NMO’s findings to
speed up improvements to some of the TTF’s
Responsible Purchasing Process (RPP) tools
and support services, such as improved and
more accessible country guidance and DD
case studies. These will be promoted and
rolled out to members in coming months,
with clear instructions on use.
The auditing of TTF members’ DD systems
is also being improved, although in recent
discussions with the NMO I and our auditors
were reassured to learn that our approach
www.ettf.info
is not that dissimilar to the NMO’s. And
many of the same weaknesses were
captured by our auditors before the NMO
checks. Encouragingly those members that
had implemented our auditors’ feedback
managed to respond most constructively to
the NMO’s investigations.
Besides the NMO, we are also liaising
closely with colleagues in the ETTF network to
share learning from this report and develop
common understanding of best practice so
the advice given to our respective members
is consistent.
The more we work together as an industry,
the better equipped we will be to ensure
the prosperous future of the vast majority
of European timber traders which operate
legally, while simultaneously dealing with the
tiny minority which don't and are tarnishing
the image of timber.
If it’s sustainable, label it!
A major international consumer survey by the PEFC found that consumers worldwide
recognise and value credible sustainability labelling on forest products, including timber,
reports Communications Head Thorsten Arndt
“Forestry is cited as
the industry with
the most mature
sustainability
Thorsten
certification systems,
Arndt
with more than a
quarter of total round
wood supply estimated to be certified to
globally valued, recognized standards.
And with private and public procurement
policies stipulating that suppliers provide
evidence for sustainable sourcing, and
businesses and governments committing
to zero net deforestation targets, many
companies along the European timber value
chain consider forest certification as integral
to their license to operate.
But, while forest certification is becoming
mainstream for businesses, what about
consumers?
PEFC (the Programme for the Endorsement
of Forest Certification) was conceived by
small and private forest owners to develop a
robust and credible, yet efficient mechanism
to demonstrate good forest management
practices. But does the average consumer
appreciate the efforts of millions of owners
and thousands of companies to bring
certified, sustainably sourced products to
the marketplace? Do they really value
sustainable forest management?
To find out more, we commissioned the
Gesellschaft für Konsumforschung, GfK, one
of the most renowned German research
institutes, to undertake a global consumer
survey. The results were positive.
The first PEFC/GfK Global Consumer Survey
was undertaken in 13 countries (Australia,
Austria, Brazil, China, Finland, France,
Germany, Italy, Japan, Spain, Sweden, UK
and USA) with a sample of 13,000 men and
women aged 16+ years. It found that:
•
certification labels are the most trusted
means of reassuring consumers that
environmental considerations have been
taken into account, ahead of country of
origin, brand, or recommendations by
friends and family
•
consequently, the vast majority of
consumers (80%) want companies to label
•
PEFC is the most trusted forest certification
globally (slightly ahead of FSC)
•
almost one-third of consumers actively
look for a certification label.
These results confirm outcomes of surveys
by other organisations, which also indicated
that consumers value products that are
sourced responsibly and are recognizable
as such.
•
Research by leading UK retailer ASDA
in 2014 concluded that the majority of
respondents (59%) prefer responsibly
sourced products to have an easily
identifiable label
•
And a 2013 Tetrapak Environmental
Trends Survey found that more than twothirds (37%) of consumers regularly look
for environmental labels.
Furthermore, the latter study also
concluded that consumers prefer woodbased materials with respondents rating
cartons the best environmental packaging
option. This was borne out by a 2014
Confederation of Paper Industries poll which
showed over half UK consumers preferring
groceries and fresh produce packaged in
paper-based material.
So businesses are responding to
consumers’ preference for sustainably
sourced wood-based materials and
increasingly applying a label to demonstrate
their ethical business practices. Labels
are no longer reserved to paper, tissuebased products or on the odd DIY product.
Nowadays, consumers can find them on an
ever-growing range of products. From bread
bags, to coffee filters, to beer packaging,
suppliers and brand owners are recognizing
that consumers actively look for and trust
environmental labels, such as PEFC. So these
clearly add real value to a company's name
or brand.
This is great news for all the businesses
that are supportive of forest certification.
If you’re selling certified material, start
labelling it – you have everything to gain. “
Consumers see sustainable labelling on
a wide range of goods – and value it
Spring 2015
10
Interview
@ettf1
www.ettf.info
Belgium backs a stronger EUTR
ETTF Newsletter editor Mike Jeffree interviews Belgian
Environment Minister Marie-Christine Marghem on her
government’s EUTR and wider illegal timber stance
Belgium is committed to sound timber sourcing and strict, uniform EUTR enforcement
Mike Jeffree, ETTF Newsletter (ETTF):
Is the battle against illegal timber a high
priority for the Belgian government?
Belgian Minister for Energy, Environment and
Sustainable Development Marie-Christine
Marghem (M-CM): It’s important for Belgium
to act for multiple reasons. Our ports are
major entry points for goods, including timber
products, for the entire EU. We’re a busy
crossroads for neighbouring countries, so we
must be strongly committed to strengthening
international cooperation, which is
indispensable to combatting illegal trade.
Belgium also has a network of nongovernmental organisations (NGOs) engaged
in this area and in 2011 concluded an
agreement between authorities, importers
and distributors to increase the proportion of
certified wood on the Belgian market. Overall,
our aim is a level playing field for law-abiding
businesses in Belgium and the EU.
ETTF: Did the recent investigations
into Brazilian ipe imports at Anvers Port
demonstrate that EU Timber Regulation
(EUTR) policing needs to be even
stronger?
M-CM: It highlighted in particular that
NGOs are a potentially important source
of information in this area. Civil society
has a role to play reporting suspicious
trade and, where sufficiently supported,
their information can be a basis for more
in-depth investigation from our side, as was
the case here.
The investigation also demonstrated
the importance of collaboration between
the Belgian Competent Authority (CA), the
Spring 2015
Marie-Christine Marghem Belgian Federal
Minister for Energy, Environment, and
Sustainable Development
Federal Public Health and Environment
Service (FPS), and customs services
when we need prompt action. Also vital
was international cooperation between
several European countries – Belgium,
the Netherlands and Sweden – and Brazil
– to deal with all concerns surrounding
the cargoes. National authorities need to
work together to tackle the international
networks involved in illegal forest and
timber exploitation
But there are always lessons to be learned
from this type of case. One conclusion
is that exchange of information between
companies, NGOs and the CA should start
even sooner when there are serious doubts
about a product.
ETTF: You also mentioned earlier
your government is committed to
"collaborating constructively" with the
timber industry in implementing EUTR
due diligence controls against illegal
timber. How is this developing?
M-CM: Since the EUTR was announced, we’ve
seen the timber industry mobilising to meet
the new requirements. Like the authorities,
it has to deal with the Regulation leaving
room for interpretation. To ensure effective
implementation by timber ‘operators’,
we must maintain permanent dialogue
to clarify certain aspects. For example, it
has been shown that there’s still room for
improving communication and transmission
of information on risk of illegality between
different stakeholders. Our job is to help the
industry improve information exchange.
continued...
11
Interview
@ettf1
Belgium backs ... continued
ETTF: Do you also have good liaison
with other timber supplier national
authorities and back co-operation
between national CAs?
M-CM: We’ve received delegations from
several supplier countries, including
Cameroon, the Democratic Republic of
Congo, Ghana, Honduras and Brazil. And at
European level we lobby for the issues of
illegal trading in timber, and flora and fauna
generally, to be high on the agenda of trade
and commerce meetings between the EU
and supplier countries.
Open and effective exchange on
forest governance improves everyone’s
understanding of different viewpoints,
legislation and control systems. It also
identifies where we should focus efforts to
ensure that timber complies with harvest
country legislation.
On collaboration between CAs and other
agencies, we support this and won’t hesitate
to contact counterparts in supplier countries
to verify validity of documentation and
timber’s legal status.
ETTF: How do view the Belgian timber
industry’s commitment to EUTR
compliance and combatting illegal
timber, given that the Belgian Timber
Importers Federation (Fédération
Belge du Commerce d'Importation
de Bois/Belgische Federatie van de
Houtinvoerhandel) was among the first
to implement an EUTR-aligned due
diligence system for members?
M-CM: The Belgian timber industry has
proved its willingness to implement the EUTR.
We’re in a period where everyone has to
settle into new way of working, during which
constructive dialogue must be maintained.
In that sense the federations have taken
their role to interface between members and
authorities to heart. So yes, I’m satisfied with
industry’s engagement and commitment to
improve performance further.
ETTF: What outcomes would the Belgian
government like to see coming from this
year’s EUTR Statutory Review?
M-CM: We’d like to see modification of the
list of products in the annex to include
timber products that are currently EUTR
exempt and would favour further relevant
risk assessment criteria. In addition we want
cooperation between EU member states and
supplier countries to be reinforced. The FPS
is organising a stakeholder meeting to further
complete the Belgian position here.
ETTF: The EUTR is part of the wider EU
FLEGT Action Plan, that includes working
with FLEGT Voluntary Partnership
Agreement signatory supplier countries
to implement timber legality assurance
systems, with the aim of supplying
FLEGT-licensed timber to Europe. As no
FLEGT-licensed material is yet available,
is Belgium pressing for progress here?
Spring 2015
M-CM: Belgium’s engagement in EU FLEGT
Action Plan implementation has mainly
targeted the Democratic Republic of Congo
(DRC).
After the 2007 international conference
on sustainable management of DRC forests,
organised by the Belgian government in
Brussels, we’ve backed a wide range of
actions and initiatives for forest governance
improvement.
In March 2013, we also signed a transfer
agreement with the EC to further strengthen
sustainable forestry management and help
finalize the DRC’s VPA negotiations. Belgium
backed the agreement framework with
€3.5 million, which is managed by the EU
delegation in Kinshasa.
Although VPA negotiations aren’t on
schedule, mainly because of insufficient
political appropriation of the process by DRC
authorities, major breakthroughs have been
achieved. These will hopefully facilitate rapid
implementation of the VPA after it’s signed
and, subsequently, DRC FLEGT-licensed
timber supply.
One breakthrough has been significant
improvement in the country’s monitoring
of valuable timber species trade within the
CITES framework, thanks to the creation of a
dedicated database for use by all agencies.
Among these is afrormosia (Pericopsis elata),
which is mainly exported to Belgium. The
aim is to cover all timber species, helping
streamline the DRC logging sector as a whole,
support EUTR compliance and ultimately
underpin supply of FLEGT-licensed timber,
once VPA negotiations are concluded.
ETTF: Does Belgium have systems in
place to receive FLEGT licensed timber?
M-CM: We established a procedure with
Belgian customs for handling FLEGT
licensing in 2012 and we’ve also developed
a web-based application to facilitate licence
processing. This has yet to be tested live, as
the first timber has yet to be shipped. But
we’re prepared and will have a few months’
notice of the first licensed cargoes from the
European Commission.
ETTF: Does Belgium have strict criteria for
specifying legal and sustainable timber
for public/government projects?
M-CM: The federal government issued a
circular letter in 2005 to increase use of
sustainable wood. This stated that FSC
and PEFC certification (after an additional
expert panel check) provided evidence of
conformity with government sustainability
criteria. So effectively the government
committed to purchasing only wood certified
as originating from [third party audited]
sustainably managed forests. In addition
all public services endeavour to buy other
products based on sustainability criteria.
Paper is an important example. These
efforts were recently recognised by the
UN Environment Programme, which cited
Belgium as a frontrunner in sustainable
public procurement.
www.ettf.info
And importers also
urge reforms
The Belgian Timber
Importers Federation
(BFHI) worked with the
country’s Environment
Ministry during EU Timber
Regulation investigations
into imports of ipe,
and it has just made
recommendations for the
European Commission's
(EC) current EUTR Review.
Bart
de Turck
In the Brazilian ipe episode
late last year, several
containers of Brazilian ipe were blocked
from Anvers Port last year and their legality
probed by FPS, the Belgian Competent
Authority. However, after liaison with
Brazilian authorities, importers and BFHI, it
was cleared.
“We worked intensively with the ministry
to solve this case, where it was ultimately
confirmed that the wood imported by our
members was legal,” said BFHI Secretary
General Bart de Turck. “We’ve also worked
with them to further reduce potentially
illegal wood on the EU market.”
Meanwhile , in its submission to the EC
EUTR Review, the BFHI makes a number of
recommendations for reform.
•
It highlights that some member states
have still not established penalty regimes,
and are less rigorous in enforcement,
and that timber from EU states is subject
to less scrutiny than extra-EU imports.
It consequently urges importers to be
classed ‘operators’ if importing timber
from EU countries without a ‘fully working
EUTR system’ and with corruption
perception index ratings below 50.
•
It highlights that composite products are
potentially higher risk under the EUTR,
yet “most CA control cases concern sawn
wood”. So it calls for CA risk assessment
to take into account supply chain and
composite product complexity.
•
It maintains that burden of due diligence
for some sources is leading less well
resourced operators to stop trade. It
wants the EU to list acceptable supplier
countries, to make ‘import of wood from
high risk [sources] economically possible
for smaller companies’.
•
It criticises slow approval of Monitoring
Organisations by the EC, with Belgium’s
CTIB still waiting after two years, and
urges accreditation by national bodies
instead to accelerate the process.
•
To end discrimination between EU and
non-EU traders, BFHI wants all first
placers of EUTR Annex-listed products
on the market classed as operators.
• It recommends that third party
certification schemes, such as PEFC
and FSC, should be accepted as risk
mitigation, and certified timber possibly
given an EUTR ‘green lane’ , like FLEGTlicensed timber.
• It also wants the EUTR extended to all
currently exempted wood products.
12
Feature
@ettf1
www.ettf.info
FLEGT key to EU tropical timber influence
Consumer countries, like EU states, must drive both supply and demand for sustainably and
legally produced tropical timber, or lose their ability to influence producers’ in improving forest
management and wider environmental performance. But Rupert Oliver, Lead Consultant to the
International Tropical Timber Organisation Independent Market Monitor (IMM) project, says the
EU FLEGT Action Plan can be a tool to achieve this.
The IMM Baseline Report, out soon, shows the
tropical timber trade undergoing major change
in the last decade, with critical implications
for development of effective, equitable
timber procurement policies in EU and other
industrialised nations. If buyers here don’t
adapt, it indicates they may be marginalised in
terms of driving positive market change.
But the Report also shows that the EU’s
FLEGT Action Plan provides a solution; a
framework linking constructive supply-side
engagement through Voluntary Partnership
Agreements (VPAs), with an EU Timber
Regulation (EUTR) designed to block illegal
wood on the demand-side.
The most dramatic recent tropical timber
trade trend, notably since the West's
economic crisis, has been in emerging market
demand. China’s value share rose from 15%
in 2004 to 28% in 2013 and India’s from 4%
to 7%. The EU’s fell from 24% to 12%.
Another key development has been growth
in tropical countries' own consumption.
And, while EU trade has declined sharply
since the 2008 crash, that masked underlying
longer-term contraction. This is often put
down to environmental concerns, but other
factors include inconsistent tropical supply,
fuelled by diversion to emerging markets, and
EU buyers’ preference for a few species.
The West’s banking crisis also cut European
importers’ credit access, while EU timber
customers are leaning more to just-in-time
procurement, favouring local supply.
Tropical timber also faces increasing
competition from substitutes; new EUmade sheet materials resembling real
wood, stained temperate hardwood,
and chemically- and thermally-modified
temperate softwoods and panel products.
Their failure to foresee recent changes
in tropical wood trade trends and evolve
has resulted in EU and other industrialised
countries’ procurement policies so far having
limited influence on tropical forestry practices.
Few in, many out
Previous EU timber procurement surveys
showed significant commitment to FSC
and PEFC-certified timber for public sector
projects and among larger customers. But
there has still only been limited engagement
in green procurement among EU joinery and
furniture industries, which comprise around
300,000, largely small-scale, manufacturers.
So in terms of timber procurement
policies, there is a minority "in-crowd"
of enterprises heavily engaged in forest
certification and development of progressive
strategies. Then there are the majority
"outcasts”; largely smaller businesses unable
or unwilling to access certified supply and
selling to ‘environmentally insensitive’
markets, which remain high volume.
The IMM Report also flags up continuing
divergence in certification take-up between
industrialised and developing countries. FSC
and PEFC certified forest area worldwide is 440
million hectares, but under 20 million is tropical.
There is less data on certification variance
between small and large forest enterprises,
but the former are clearly still less engaged,
despite new group and regional schemes.
This whole dynamic must change for
demand-side measures to boost adoption
of legal and sustainable practices by
producers. Declining EU market sales mean
their public procurement requirements for
FSC or PEFC certification have less traction
with producers. Instead, more partnerships
are needed between EU buyers and tropical
suppliers focused on progressively raising
environmental performance.
Small and community forest owners
also need help to capitalise on markets for
verified legal and sustainable timber, and
consumer countries must remove barriers
caused by lack of policy harmonisation.
The decrease in relative importance
of Europe in the tropical trade further
highlights the need for more positive
producer incentives, including active sales
promotion for legally verified and certified
tropical products.
FLEGT’s potential
But the EU FLEGT Action Plan can help
improve the effectiveness and equitability of
timber procurement policies within the EU
and wider international trade. Its strength
is the link it forms between a regulatory
demand-side measure in the EUTR with
the VPA programme to facilitate timber
suppliers’ forest governance reform.
An added benefit is that VPA signatories
apply their legality assurance systems to all
exports, not just EU sales. And VPAs require
greater stakeholder engagement, creating a
basis for smallholder verification procedures.
Alongside CITES certificates, VPA licensing
is also the only legality evidence not subject
to additional due diligence under the
EUTR. This should boost licensed goods'
commercial appeal and help establish preconditions for more operators to take the
next step to sustainability.
The IMM project
EU operators must sell tropical
timber to retain influence
A Liberia FLEGT VPA
stakeholder meeting
Spring 2015
Rupert Oliver
The IMM project is an EU-backed,
ITTO-coordinated initiative to support
implementation of EU Forest Law
Enforcement Governance and Trade
Voluntary Partnership Agreements
(FLEGT VPAs) between EU and supplier
countries. It will also track FLEGT’s
impact on tropical timber trade flows.
In addition IMM will gauge market
attitudes to FLEGT-licensed timber,
which will be automatically considered
legally harvested under the EU Timber
Regulaton, and undertake market
impact assessments for VPA signatories.
Currently six countries are
implementing VPAs, nine are in
negotiations, two preparing for them,
with another nine interested in dialogue.
13