1. UNCTAD Expert Meeting on Environmental Requirements and International Trade. 2 October 2002 United Nations Economic Commission for Europe Trade Development and Timber Division Certification of forest products: effects and opportunities Kit Prins Chief, Timber Branch UNECE Tade Development an Timber Division

2. UNCTAD Expert Meeting on Environmental Requirements and International Trade. 2 October 2002 United Nations Economic Commission for Europe Trade Development and Timber Division Content of presentation What is certification of forest products? Background and history Present situation Main issues

3. UNCTAD Expert Meeting on Environmental Requirements and International Trade. 2 October 2002 United Nations Economic Commission for Europe Trade Development and Timber Division What are certified forest products? CFPs bear labels demonstrating in a verifiable manner by independent bodies that come from forests that meet standards for sustainable forest management

4. UNCTAD Expert Meeting on Environmental Requirements and International Trade. 2 October 2002 United Nations Economic Commission for Europe Trade Development and Timber Division Early 1990s Concern about tropical deforestation Preparations for Rio 1992 (proposals for a Forest Convention) Issues of national sovereignty, accusations of neo-colonialism Foundation of Forest Stewardship Council, 1993

5. UNCTAD Expert Meeting on Environmental Requirements and International Trade. 2 October 2002 United Nations Economic Commission for Europe Trade Development and Timber Division Questions What is sustainable forest management (SFM), anyway? Does it vary between regions? Who defines SFM and how? Who certifies and controls? Who pays? What about WTO rules? Who wants to buy CFPs (and will they pay more)?

6. UNCTAD Expert Meeting on Environmental Requirements and International Trade. 2 October 2002 United Nations Economic Commission for Europe Trade Development and Timber Division Developments during the 1990s Development of FSC principles and infrastructure Intergovernmental dialogue (certification is “voluntary, market based, instrument”): causes of deforestation, plan of action … Regional processes for “criteria and indicators of sustainable forest management” Competitors to FSC Better understanding of commercial potential of certification

7. UNCTAD Expert Meeting on Environmental Requirements and International Trade. 2 October 2002 United Nations Economic Commission for Europe Trade Development and Timber Division Situation, mid-2002 124 million ha certified forest (90% in northern hemisphere) (3.2% of world’s forests) Competing certification systems Increasing consensus on what is “sustainable forest management” (incl. variations between regions) Lukewarm consumers, keen retailers

8. UNCTAD Expert Meeting on Environmental Requirements and International Trade. 2 October 2002 United Nations Economic Commission for Europe Trade Development and Timber Division Situation, mid 2002 (cont.) Bottleneck: chain of custody certificates Attempts to gain mutual recognition Motives: company image, competitive advantage Lead in north-west Europe, North America Usually no price premium, limited direct consumer demand Wide range of goods available, mostly FSC

9. UNCTAD Expert Meeting on Environmental Requirements and International Trade. 2 October 2002 United Nations Economic Commission for Europe Trade Development and Timber Division The main players: Forest Stewardship Council (FSC): global, NGOs retailers, dominant in market place Pan-European Forest Certification System (PEFC): forest owners, European forest industry, largest forest area, group certification Sustainable Forest Initiative (SFI), Canadian standards Association (CSA) Indonesian, Malaysian national systems Certifiers (SGS, SCS, …)

10. UNCTAD Expert Meeting on Environmental Requirements and International Trade. 2 October 2002 United Nations Economic Commission for Europe Trade Development and Timber Division Area of certified forest

11. UNCTAD Expert Meeting on Environmental Requirements and International Trade. 2 October 2002 United Nations Economic Commission for Europe Trade Development and Timber Division

12. UNCTAD Expert Meeting on Environmental Requirements and International Trade. 2 October 2002 United Nations Economic Commission for Europe Trade Development and Timber Division Issues Is competition between systems confusing consumers? How can developing countries benefit from certification? Is certification of sustainable forest management too ambitious? Is certification of origin an adequate substitute? Need to resolve chain-of custody shortage Role of governments and public procurement?

13. UNCTAD Expert Meeting on Environmental Requirements and International Trade. 2 October 2002 United Nations Economic Commission for Europe Trade Development and Timber Division Further information Forest Certification Update for the UNECE Region, summer 2002 (ECE/TIM/DP/25) ECE/FAO market information service website: http://www.unece.org/trade/timber/mis/cfp. htm (with links) http://www.unece.org/trade/timber/mis/cfp. htm ECE/FAO Forest Products Annual Market Review