Chatham House Illegal Logging Update and Stakeholder Consultation July 2006 By: Sofie Tind Nielsen & Karen Sau Jespersen Ministry of the Environment Forest and Nature Agency Public Procurement of Timber State of Play in Denmark

Background Evaluation Environment Minister’s 9-point plan Forthcoming guidelines incl. temporary guidelines Concluding remarks Content

Background 2003 Voluntary guidelines on public procurement of tropical timber 2005 Evaluation of the Danish procurement policy In collaboration with advisory Steering Committee comprising the timber trade, public buyers and NGOs 3 studies by outside consultants (project A, B, C)

Evaluation - project designs Project A User survey + assessment of economic and administrative consequences of possible amendments Project B Comparison w. other countries + update on certification schemes Project C Legal and administrative aspects

The Danish Environment Minister’s 9-point plan 1. Expand the procurement policy to all kinds of timber 2. Ensure that it will be easier for buyers and suppliers to understand and comply with the requirements for legal and sustainable timber 3. Target guidance towards the different needs of users 4. Encourage trade and procurement federations and other stakeholders to focus on legality and sustainability when purchasing timber Aim: to improve the guidelines on public procurement of legal and sustainable timber

The Danish Environment Minister’s 9-point plan 5. Encourage all ministers and mayors to develop green procurement policies, which include timber and which follow the recommendations in forthcoming revised guidelines 6. Continue overall efforts to promote green and environmentally friendly procurement 7. Continue to promote public procurement policy on timber in relevant international fora 8. Further promote the certification of forests 9. Further develop and finalise an ongoing timber tracking project in Russia

Forthcoming guidelines Key objectives Applicable to all kinds of timber More transparent and clear Harmonisation Simpler procurement model

Forthcoming guidelines Evaluation of: Criteria for legality Criteria for sustainability Certification schemes Alternative documentation

Criteria for legality (Not final) Logging only where there are legal harvest rights, by the holder of those rights Complying with regulation on permitted harvest levels, and with environmental and labour legislation Payment of timber royalties and other directly relevant fees Respect for other parties’ legal tenure rights that may be affected by timber harvest rights Complying with the requirements of CITES

Criteria for Sustainability (Not final) 1. Legal, policy and institutional framework 2. Extent of forest resources 3. Forest health and vitality 4. Production functions of forest resources 5. Protection functions of forest resources 6. Biological diversity 7. Socio-economic functions? To be maintained or improved

Documentation Certification  Standards/criteria  Certification  Accreditation  Traceability  Labelling Alternative documentation  Certificates or verification schemes other than the accepted  Export permits  Certificates of origin  Declarations from authorities  Declarations from suppliers and subsuppliers  and … Assessment by impartial third party with market insight and knowledge

Procurement model a phased approach 1. Legal and sustainable (best option) 2. Legal and progressing towards sustainable 3. Legal (minimum requirement) 1. Legal and sustainable or progressing towards sustainable 2. Legal (minimum requirement)

Temporary guidelines For assurance of minimum requirements for legality UK and Danish legality requirements correspond well ->CSA, FSC, MTCC, PEFC and SFI Temporary - forthcoming guidelines may alter composition of schemes

Concluding remarks Guidelines from 2003 are still valid Forthcoming guidelines not yet finalised Steering committee Public hearing Exchange of experiences

Thank You