Global Forest and Trade Network in Asia George White Global Forest and Trade Network

GFTN in Asia – a part of global network We are part of WWF International We work in partnership with business and other environmental organisations We want to eliminate illegally logged forest products and drive improvements in the quality of forest management We see credible forest certification a vital tool to do this We believe that stepwise approaches to responsible forest management and purchasing can achieve this We focus on the trade from the most valuable and threatened forests.

GFTN - the largest stepwise certification programme Africa 1.46 million Hectares 21 companies North America 4 companies South America & Caribbean 2.1 million Hectares 71 companies Europe 160 companies Russia 20.3 million Hectares 34 companies Asia 1.1 million Hectares 70 companies Oceania 0.2 million Hectares 6 companies 23.9 million Hectares$42 billion USD Sales in forest products 1.38 million People employed360 Companies 34 Countries188 million cubic metres RWE Traded Global Totals March million Hectares FSC (40%)

What types of companies does we work with? Forest participants Open to forest managers & owners who are committed to responsible forest management – they want to get their forests certified Trade participants Based in all the countries where GFTN operates Open to processors, traders, manufacturers, importers and retailers. Requires commitment to responsible purchasing of forest products – they want to increase the amount of legal & certified products they buy and sell

GFTN in Asia GFTN currently has Networks established across the major producing countries in Asia Indonesia – 20 Participants & 20 applicants managing over 1m Ha Malaysia – 3 Participants & 11 applicants managing 0.5m Ha Vietnam – 4 Participants & 2 applicants Japan – 26 Participants Australia – 7 Participants and 1 applicant managing 0.2m Ha China, as a market for lumber, or as a supply base, is extremely important to the vast majority of these companies.

More than just words - GFTN & Trade The Buyers GFTN works with are obliged to “clean up their supply chain”. One way to do this is find new suppliers who are working towards FSC. GFTN buyers have generated over 300 enquiries for new suppliers. Over 100 of these enquiries have resulted in trade. GFTN currently has nearly 200 open enquiries – buyers who want new suppliers. These enquiries are worth over $300 million USD. Enquiries include products such as: BlockboardFlooringDoors Furniture LogsPaperPlywoodPulp Sawn woodVeneer

Where does the illegal wood go? It is estimated that the global trade in illegal wood is over 50 million cubic metres per year. The main markets for this wood are seen here. China (and Taiwan) are a significant part of this trade. Note: These figures are taken from “Cut It Out!” Report from WWF UK (2007) The data is based on imports from 18 major producing countries with well documented illegal logging & trade problems. The %ages are the share of imports for these countries / regions from these producer countries. The chart does not show data for other export markets.

Important tools we use Guide to Responsible Purchasing Now in its second edition Available in 8 languages – including Chinese Shows how to use the stepwise approach to buying responsibly Keep It Legal manual Published in 2006 Explains what “legal wood” is Shows how to get it New chapters on China, Indonesia and Russia coming soon

Launched in March companies Participating 11 Applicant companies Members strengthening market links to Europe, North America and Japan Strong support from the market place for participating companies

China FTN today Established early Participants March Participants March Participants ? Participants trade 1% of China’s wood consumption This is likely to grow to 2-3% in 2007 Targeted companies all in export markets, mainly US, Europe and Japan. Participants mainly source from Russia, Indonesia, Malaysia, Central Africa, Brasil and China

2002 Data China FTN can be a massive force for good in some key countries / eco-regions

China FTN future activities China FTN will continue to work with other Forest and Trade Networks to ensure that responsible buyers and producers are connected and using the market to achieve more responsible management Later in 2007 we will be taking Chinese processors to meet with companies who are members of the Russian FTN aiming to create new and transparent supply chains with legal wood We will continue to develop market links between our participants and producers in Africa, Asia and South America We will continue to focus on legality and will produce guidance for companies both inside and outside China We will continue to target the key importers in China to assist the wider Network on its goals of achieving legal and responsible forest management in key countries. We will further publicise our work and reach out to new partners who have similar goals