CONCEPT OF NATIONAL ACTION PLANCONCEPT OF NATIONAL ACTION PLAN

FOR PREVENTING ILLEGAL LOGGING AND ASSOCIATED FOR PREVENTING ILLEGAL LOGGING AND ASSOCIATED

TRADETRADE

Federal Forestry Agency of RFFederal Forestry Agency of RF

MarchMarch,2006,2006

22Rationale and Background Materials for the Development of National Action Plan

Substantiation:

• Instruction of the Russian Government dated 26.01.06 No. АЖ-П9-233;

• Saint-Petersburg Declaration of Ministerial Conference ENA-FLEG, November 2005;

• Order of Rosleskhoz dated 14.12.2005 No.333 «On Development of National Action Program of the Russian Federation to Improve Forest Law Enforcement and Governance»

Substantiation:

• Instruction of the Russian Government dated 26.01.06 No. АЖ-П9-233;

• Saint-Petersburg Declaration of Ministerial Conference ENA-FLEG, November 2005;

• Order of Rosleskhoz dated 14.12.2005 No.333 «On Development of National Action Program of the Russian Federation to Improve Forest Law Enforcement and Governance»

Background Materials:

• Interagency Action Plan for Combating Illegal Logging and Associated Trade (2002);

• Decisions of a Joint Meeting involving the Federal Forestry Agency, Ministry of the Interior (MVD), Federal Tax Service (FTS), Ministry of Economic Development and Trade (MEDT) (Khabarovsk, 6 September 2005);

• Materials of ENA-FLEG Ministerial Process (November, 2005);

• Materials of international conferences on illegal logging and associated trade (Geneva, 16-17 September and 5 October 2004).

Background Materials:

• Interagency Action Plan for Combating Illegal Logging and Associated Trade (2002);

• Decisions of a Joint Meeting involving the Federal Forestry Agency, Ministry of the Interior (MVD), Federal Tax Service (FTS), Ministry of Economic Development and Trade (MEDT) (Khabarovsk, 6 September 2005);

• Materials of ENA-FLEG Ministerial Process (November, 2005);

• Materials of international conferences on illegal logging and associated trade (Geneva, 16-17 September and 5 October 2004).

33Definition of “Illegal logging”

Lack of permitting documents

“Illegal logging”

Failure to comply with logging licenses

(beyond logging site, logging

trees that are banned for cutting, etc.)

44

Socio-economicSocio-economicSocio-economicSocio-economic

LegalLegalLegalLegal

Intersectoral and Intersectoral and sectoralsectoral

Intersectoral and Intersectoral and sectoralsectoral

• Sustainable internal and external demandSustainable internal and external demand

• High profits generated by illegal loggingHigh profits generated by illegal logging

• Jobless population in forested areasJobless population in forested areas

• Low incomes of populationLow incomes of population

• Inadequate forest, penal, administrative, and customs Inadequate forest, penal, administrative, and customs legislationlegislation

• Lack of effective enforcement practiceLack of effective enforcement practice

• Inadequate assessment of forest resourcesInadequate assessment of forest resources

• Poor control over the use of forest resourcesPoor control over the use of forest resources

• Poor tracking of wood movement from the logging site to the Poor tracking of wood movement from the logging site to the consumerconsumer

• Lack of interagency cooperationLack of interagency cooperation to prevent illegal logging and to prevent illegal logging and associated tradeassociated trade

Major Causes of Illegal Logging

55

* % of total logging

Source: World Resource Institute ( WRI), 2004

Brazil

Canada

Russia*Japan

Europe

Central and Western Africa

<1%

>20%30-70%

<3%

10-15%

3-5%

USA

According to International Experts Russia’s Illegal Logging Amounts to 10-15 %

66

Final cutting Intermediate cut ExportsDomestic consumption

Logging volumes

132132

5353

114114

9090

Consumption Estimates

+19

185185

204204

mil.m3

Illegal Logging Estimates Based on the “Harvesting-Consumption” Balance

Source: Rosleskhoz, NIPIEIlesprom, 2006

77

1.16 mil.m3 (additional identification)

Identified Volume of Illegal Logging Amounts to Some 10 % of Estimates

Source: Rosleskhoz, 2005

Identified Volume 2 mil.m3

Remote sensing (7 subjects)

Estimates 19 mil. m3

+

0.89 mil.m3State Statistical

Reporting

66% - beyond logging site

34% - lack of permitting documents

88

Logging licensing

LoggingTransportation

of wood

Wood processing

Trade

Subjectsof RF

MNR

Ministry of Interior

Ministry ofIndustry &

Energy

RosstatFederal Security Service

MEDT

General Prosecutor’s

Office

Assessment of forest resources, management

and compliance monitoring

Enforcement control, supervision over law enforcement agencies

Economic security

Managing development of forestry Industries

Economic regulation in the forest sector

Statistical observation in the forest sector

Regional forestgovernance

Major Zones of Responsibility of Federal and Regional Authorities in the Russian Federation: Macro Level

99

Logging licensing

Logging Transportation

Wood processing

Trade

• Rosleskhoz• Subjects of RF

• Ministry of Interior• Federal Security Service

• Federal Customs Service• Ministry of Interior• Federal Tax Service

• Rosprirodnadzor• Rosleskhoz• Subjects of RF

• Ministry of interior• Subjects of RF• Rostransnadzor• Rosprirodnadzor

Major Zones of Responsibility of Federal and Regional Authorities in the Russian Federation: Local Level

1010

Improving legislation of the Russian FederationImproving legislation of the Russian FederationImproving legislation of the Russian FederationImproving legislation of the Russian Federation

Improving the state governance systemImproving the state governance systemImproving the state governance systemImproving the state governance system

International cooperationInternational cooperationInternational cooperationInternational cooperation

Developing socio-economic mechanismsDeveloping socio-economic mechanismsDeveloping socio-economic mechanismsDeveloping socio-economic mechanisms

Improving forest managementImproving forest managementImproving forest managementImproving forest management

Block 1

Building Blocks of National Action PlanBuilding Blocks of National Action Planfor Preventing Illegal Logging and Associated Tradefor Preventing Illegal Logging and Associated Trade

Block 2

Block 3

Block 4

Block 5

1111

Improving the current forest-related legislation of the Russian Improving the current forest-related legislation of the Russian FederationFederation and harmonizing it with national and international and harmonizing it with national and international

requirementsrequirements

Improving the current forest-related legislation of the Russian Improving the current forest-related legislation of the Russian FederationFederation and harmonizing it with national and international and harmonizing it with national and international

requirementsrequirements

Improving regulatory technical and methodological framework in Improving regulatory technical and methodological framework in forestry and forest managementforestry and forest management

Improving regulatory technical and methodological framework in Improving regulatory technical and methodological framework in forestry and forest managementforestry and forest management

IMPROVING LEGISLATION OF THE RUSSIAN FEDERATIONIMPROVING LEGISLATION OF THE RUSSIAN FEDERATION

Forest legislation;

Customs legislation;

Tax legislation;

Penal legislation;

Administrative legislation.

Block 1

1212

Establishing a single interagency information systemEstablishing a single interagency information system concerning record concerning record keeping, use of and trade in forest resources and products, price and tax keeping, use of and trade in forest resources and products, price and tax

monitoring, statistics of illegal activities monitoring, statistics of illegal activities

Establishing a single interagency information systemEstablishing a single interagency information system concerning record concerning record keeping, use of and trade in forest resources and products, price and tax keeping, use of and trade in forest resources and products, price and tax

monitoring, statistics of illegal activities monitoring, statistics of illegal activities

Establishing a mechanism of interagency cooperation and Establishing a mechanism of interagency cooperation and coordination between governmental bodiescoordination between governmental bodies

Establishing a mechanism of interagency cooperation and Establishing a mechanism of interagency cooperation and coordination between governmental bodiescoordination between governmental bodies

Federal level

Organizing conservation of forest resources and state control over their use (Rosprirodnadzor)

Improving the State Governance SystemImproving the State Governance System

Block 2

Regional level

Monitoring the use of forest resources (Rosleskhoz)

Improving the system of control and economic security compliance when logging, transporting,

selling and processing forest products (MVD, FTS, FNS, FSB, Rostransnadzor)

Strengthening control and supervision over law enforcement agencies (General Prosecutor’s Office of

RF)

Organizing and coordinating activities for combating illegal logging and associated trade (Subjects of RF)Organizing and coordinating activities for combating illegal logging and associated trade (Subjects of RF)

1313

Improving the system of forest resources inventory and logging licensing

Improving the system of forest resources inventory and logging licensing

Developing the federal system of remote sensing monitoring in forestry

Developing the federal system of remote sensing monitoring in forestry

Facilitating the national system of forest certificationFacilitating the national system of forest certification

Improving the system of long-term forest area leaseImproving the system of long-term forest area lease

Intensifying advocacy of forest conservancyIntensifying advocacy of forest conservancy

IMPROVING FOREST MANAGEMENTIMPROVING FOREST MANAGEMENT

Block 3

1414Developing Socio-economic MechanismsDeveloping Socio-economic Mechanisms

Building the image of good business practices in forestry and establishing Building the image of good business practices in forestry and establishing supporting mechanismssupporting mechanisms

Building the image of good business practices in forestry and establishing Building the image of good business practices in forestry and establishing supporting mechanismssupporting mechanisms

Involving civil society in forest management, enhancing environmental awareness of public at large

Involving civil society in forest management, enhancing environmental awareness of public at large

Increasing access to forest resources by expanding road infrastructure

Establishing processing capacities in the regions that are exposed to a substantial amount of illegal logging

Preparing the Federal Targeted Program “Developing Value-Added Wood Processing Capacities and Bringing New Forested Areas into

Exploitation up to 2015”

Preparing the Federal Targeted Program “Developing Value-Added Wood Processing Capacities and Bringing New Forested Areas into

Exploitation up to 2015”

Building up the market share of legal forest productsBuilding up the market share of legal forest products

Establishing vertically integrated structures in the forestry sector

Developing new market segments in the area of alternative energy sources and wood-based house-building

Block 4Tool

Overall Objectives

1.1.1.1.

2.2.2.2.

3.3.3.3.

1515

Developing cooperation within the UN Convention against Transnational Organized Crime and other multilateral initiatives

Developing cooperation within the UN Convention against Transnational Organized Crime and other multilateral initiatives

Establishing a uniform system of forest materials record-keeping and measuring

Establishing a uniform system of forest materials record-keeping and measuring

Establishing the information exchange system concerning advanced technologies of accounting of and control over forest trade

Establishing the information exchange system concerning advanced technologies of accounting of and control over forest trade

Developing and implementing agreements on the exchange of electronic information concerning the movement and customs

clearance of forest products

Developing and implementing agreements on the exchange of electronic information concerning the movement and customs

clearance of forest products

Cooperating within the International Working Group to develop a general understanding of the concepts, definitions and terms

associated with the FLEG process

Cooperating within the International Working Group to develop a general understanding of the concepts, definitions and terms

associated with the FLEG process

International Cooperation

Developing cooperation with countries in the implementation of national strategies within ENA-FLEG process

Developing cooperation with countries in the implementation of national strategies within ENA-FLEG process

Participating in the Ministerial Meetings within the ENA-FLEG process

Participating in the Ministerial Meetings within the ENA-FLEG process

Block 5

1616

Assigning responsibility for the implementation of the Saint-Petersburg Assigning responsibility for the implementation of the Saint-Petersburg Declaration and National Plan to a federal authorityDeclaration and National Plan to a federal authority

Assigning responsibility for the implementation of the Saint-Petersburg Assigning responsibility for the implementation of the Saint-Petersburg Declaration and National Plan to a federal authorityDeclaration and National Plan to a federal authority

Developing regional and agency plansDeveloping regional and agency plans Developing regional and agency plansDeveloping regional and agency plans

Establishing the NAP National Supervisory CouncilEstablishing the NAP National Supervisory CouncilEstablishing the NAP National Supervisory CouncilEstablishing the NAP National Supervisory Council

Developing criteria and indicators for an independent assessment of the Developing criteria and indicators for an independent assessment of the National Plan performanceNational Plan performance

Developing criteria and indicators for an independent assessment of the Developing criteria and indicators for an independent assessment of the National Plan performanceNational Plan performance

Institutional Support to the Implementation of the National Action Plan (NAP)

1717Expected Results

• Covering 100% of the area of commercially exploited forests with the system of remote sensing

• Increasing the share of the identified illegal logging from 10% to 50% of the estimates

• Ensuring a 2-fold improvement in the accuracy of the cutting area assessment

• Reducing illegal logging by 20-30% within the first two years

• Increasing payments to the budget by up to RUR 2 billion a year

• Improving the environment and state of the forests in the regions

• Enhancing the international credibility of the Russian Federation in the area of forest management and governance