Timber Trade Action Plan (TTAP):Combatting illegal logging through engaging the private sector

FLEGT Update Meeting: 9th October 2013, Brussels

Alastair Herd (TFT)

The Forest Trust (TFT)

• Not for profit organisation created in 1999.

• Mission: provide supply chain transparency to transform how products are made.

• 120 staff providing expert advice on the ground out of 15 offices.

• Working with 90+ members – timber & products linked to deforestation (palm oil, pulp & paper, cotton, leather, soy….)

Timber Trade Action Plan (TTAP)

TTAP 1: (March 2005 - Dec 2011) TTAP 2 (Dec 2006 – June 2013)

Indonesia China

Malaysia Brazil

Cameroon Bolivia

Republic of Congo Guyana

Gabon Suriname

• Project of FLEGT Action plan – private sector response

• Partners: UK TTF, VVNH, FBCIB, LCB, ETTF

• Aim: FLEGT awareness raising & risk mitigation of supply chains through legality verification

TTAP Overall Objectives

1. Conserve and sustainably manage tropical forests

2. Build local capacity for sustainable forestry and forest governance

3. Develop co-operation with the private sector towards sustainable and equitable growth

4. Alleviate rural poverty through improved forest management

Company Supply Chain Work

Stage 1: Nomination

Stage 2: Gap Assessment

Stage 3: Action Plan

Stage 3: Audit

Time

TTAP Results

TTAP Activities

• FLEGT - private sector awareness raising:

• Conferences & meetings – ITTFD

• Newsletters & website

• Capacity building & training:

• Roadshows & workshops

• Legality standard outreach:

• VLO/VLC - China, Guyana, Suriname

• Tools & studies:

• Legality Checklists, RAT, RPP

• Guide to Service Providers

• Impact & Poverty Study and Market leverage

Forest Area Assessed & Verified

Challenges for the Private Sector

• Changing context – FLEGT & Financial crisis created uncertainty and a wait & see attitude among buyers/suppliers

• Legality standards - initial lack of country specific standards and harmonisation constraints e.g. complex supply chains in China

• Cost - despite TTAP funding, TPV prohibitive to some companies, especially as market access not price premium after investments etc

• Changing markets - EU share shrinking 22% (2007) to 17% (2011) & China increasing declining leverage of EU buyers to drive change

• Substitution – buyers looking to reducer risk with technological advances could discourage producers & conversion to alternative crops

Lessons Learned

• Responsible buyers leverage transformation of their supply chains for long-term business relationships – collaboration & trust is key

• Minimise uncertainty – raise awareness (EU & producer) with the right messenger e.g. TTFs to avoid & promote trade in responsible timber

• Enhanced risk management through third party assurances - improves production efficiencies, trust and better business

• Legality verification is about market access and brand protection, not premiums and provides a competitive advantage in face of EUTR

Lessons Learned Cont’d…• More focus on China as the world’s largest timber importer – work to

promote transparency back to forest to help transform the market

• Support for SMFEs – large employer and capacity to reduce poverty

• But, require robust enforcement of EUTR – need adequate resources to ensure credibility and level the playing field

Conclusions & Next Steps• TTAP shows that engaging the private sector is an effective means of

transforming supply chains to drive improved forest management

• Supportive of FLEGT & private sector in preparing for VPA’s & EUTR and maintain market access, but enforcement needed to level the playing field

• Further support required for private sector (EU & producer) with increased collaboration to promote timber e.g. GTF

• Forestry sector has been leading the way apply lessons to other agricultural commodities (palm, soy, cattle…)

Thank you