FLEGT and REDD+ reflections from VPA negotiations 4 October 2011 Julia Falconer, European Commission, DEVCO C2

What is FLEGT ?  International concern over illegal logging and its impacts: undermining rule of law, costing millions, depressing global prices, causing environmental degradation & fuelling conflict.  EU response: Forest Law Enforcement Governance and Trade (FLEGT) action plan (2003) setting out supply- and demand-side measures to combat illegal logging: Public and business purchase policies to source legal timber Support for Producer Country governments and industry Trade agreements between producer countries and the EU – VPAs Regulation to encourage EU businesses to know their supply chains

Voluntary Partnership Agreement  A legally-binding trade agreement : EU - Partner country Aim to work together to stop illegal logging  Objectives A system to verify legal compliance of all production License and audit assures markets of legal compliance EU customs block entry of non licensed timber from partner country  Contributes to : Good governance & transparency Policy and legal reform, incl. on land tenure, access rights Effective regulation, control, anti-corruption Capacity building : govt services, operators, CSOs Better capture revenues and rents

The challenge: Trade negotiation on sensitive, sovereign issues…. Corruption Governance and accountability Contested rights to land and forest resources: Indigenous peoples rights Effectiveness of judiciary and law enforcement Definitions of legal standards and regulations Often closely linked to political elite or military Linked to Conflicts and Human rights abuses Market access linked to effectiveness of governance

Inclusion of stakeholders in clarifying &developing policy &law Negotiated consensus between stakeholders Clarity in legal framework Simplified control systems- less opportunity for corruption Verification (Evidence) of legal compliance linked to export Independent audit Publication of information on contracts, fee payment, revenue disbursement, audit reports, cases, etc Stakeholder oversight committees/ councils Strategies for Improving Governance in VPA

 Unclear legal frameworks: land use & forest access  Insufficient information systems & transparency mechanisms  Corruption, ineffective law enforcement and judicial systems  Rights/livelihood risks to local communities  Good governance is crucial to fight against illegal logging, maintaining existing forests & reducing forest degradation &loss  Markets can influence governance  Limited capacities can be a challenge FLEGT & REDD: common challenges

FLEGT & REDD common requirements Multi-stakeholder processes (trust and clarification) Credible Measurable Reportable Verifiable systems Establishing buyer confidence (carbon and timber) Control of international leakage and circumvention Mitigation of unintended negative consequences on local communities

FLEGT & REDD: building synergies  Opportunities Stronger political attention on forest issues Clarification of resource rights and tenure Strengthening of law enforcement and judicial systems  Potential areas of synergy: Build strong stakeholder platform- avoid recreating wheel Addressing the drivers of forest loss Addressing challenges of governance and illegality Building effective forest governance and management Designing and implementing robust and effective mechanisms for MRV Promoting harmonised aid delivery  Avoid conflict or competition: build ing from what exists

Key lessons from FLEGT VPA processes  Inclusiveness: Local NGOs / International NGOs Private sector treated as a partner (focus on trade) In Liberia, communities were directly involved  National negotiation in parallel with int’l VPA negotiations: Pressure to maintain momentum because of the bilateral negotiations Time for government, civil society, private sector to form their opinion, engage in the process and build trust Opportunity to actually influence decision taking  Structured process and tangible outputs Roadmap, Agreement content, Implementation structures  Implementation challenges Sustaining political momentum

FLEGT licenses (not yet) System development Formal negotiations underway Moving to negotiations Preparation, in-country consensus building Introduction to VPAs Congo C.A.R. Malaysia Indonesia Cameroon Ghana Liberia FLEGT VPA partner countries October 2011 Gabon DRC Vietnam