1. UNECE TIMBER COMMITTEE Sixtieth session, 24-27 September 2002 Photo: APA CERTIFIED FOREST PRODUCTS (CFPs) Secretariat Introduction, with focus on the supply of CFPs: Mr. Ed Pepke, Forest Products Marketing Specialist, UNECE & FAO Timber Branch Expert presentation, with focus on the markets for CFPs: Mr. Keith Forsyth, VELUX A/S (author, “Status of Forest Certification in the UNECE Region”)

2. UNECE TIMBER COMMITTEE Sixtieth session, 24-27 September 2002 Photo: APA Sources of information “Markets for certified forest products”, Chapter 11 of the Forest Products Annual Market Review, 2001-2002 “Status of Forest Certification in the UNECE Region, Summer 2002”, a UNECE/FAO Geneva Timber and Forest Discussion Paper Country market statements for the TC

3. UNECE TIMBER COMMITTEE Sixtieth session, 24-27 September 2002 Photo: APA Info sources for Discussion Paper Informal network of officially nominated country correspondents on certification of sustainable forest management and on certified forest products Expert authors’ insight and supplementary sources

4. UNECE TIMBER COMMITTEE Sixtieth session, 24-27 September 2002 Photo: APA Supply of CFPs Most of world supply from UNECE region (CIS, Europe and NA) 124 million hectares total, mid-2002 43 million ha PEFC 33 million ha SFI 24 million ha FSC 11 million ha American Tree Farm System 9 million ha CSA

5. UNECE TIMBER COMMITTEE Sixtieth session, 24-27 September 2002 Photo: APA Supply of CFPs Potential supply of CFPs is 234 million m³ annually worldwide. Minor part of the wood from certified forests is actually traded as labelled CFPs.

6. UNECE TIMBER COMMITTEE Sixtieth session, 24-27 September 2002 Photo: APA Supply developments during past year SFI system had largest growth, up 162% FSC growth in Canada, Estonia, Latvia, USA PEFC growth in Austria, France, Germany, Latvia, Norway and Switzerland

7. UNECE TIMBER COMMITTEE Sixtieth session, 24-27 September 2002 Photo: APA Supply problems Lack of mutual recognition Environmental groups and foreign retailers strongest supporters of FSC Forest owners and forest industry strongest supporters of PEFC. Lack of premiums and limited demand Lack of chain-of-custody certificates

8. UNECE TIMBER COMMITTEE Sixtieth session, 24-27 September 2002 Photo: APA Other findings Environmental image gained importance as driver of attitudes for forest owners. Supply seen as limiting market growth

9. UNECE TIMBER COMMITTEE Sixtieth session, 24-27 September 2002 Photo: APA Findings from country market statements Germany: 60% certified, c-o-c limiting supply France: 100% certified by end 2002 Latvia: 50% state forests by FSC, PEFC for private and municipal Poland: 55% state forests. 100 c-o-c. UK: 40% certified. “Difficult to sell uncertified softwood roundwood.” Government procurement policies for recycled or legally and sustainably grown wood products.

10. UNECE TIMBER COMMITTEE Sixtieth session, 24-27 September 2002 Photo: APA Findings from country market statements Turkey: Growing recognition and preference, but no labelling. Ireland: all National Forestry Board’s forests FSC certified Finland: 95% PEFC certified. Growing market. Mutual recognition with Dutch Keurhout Foundation. F ear that without mutual recognition, forest-based products will lose market shares to competitors of non-renewable raw materials.

11. UNECE TIMBER COMMITTEE Sixtieth session, 24-27 September 2002 Photo: APA Findings from country market statements Spain: PEFC certification starting. No domestic market. Some value-added production using imported CFPs. Austria: PEFC in place Lithuania –small FSC volumes entered marketplace –FSC label does not influence price –Label enables contracts and buyers –Forest owners association for PEFC

12. UNECE TIMBER COMMITTEE Sixtieth session, 24-27 September 2002 Photo: APA Findings from country market statements Switzerland: FSC & PEFC (Q Label) = 10% forestland. Minimal, but growing market. Romania: FSC initiated, with c-o-c Canada: 15% certified by CSA, FSC, SFI, mostly for export. Equivalency and mutual recognition proposed for market efficiency.

13. UNECE TIMBER COMMITTEE Sixtieth session, 24-27 September 2002 Photo: APA Next speaker on CFP markets: Mr. Keith Forsyth VELUX A/S