A global tool to tackle illegality

5 May 2014


The EU's FLEGT programme could develop wider international value, says TTJ editor Mike Jeffree

There has been scepticism in the timber buying market about the Forest Law Enforcement, Governance and Trade Voluntary Partnership Agreement initiative, or FLEGT VPA to give it its hefty acronym. The project has been a slow burn. It launched back in 2003, but 11 years later, signatory timber supplier countries have yet to fulfil its final objective, to deliver FLEGTlicensed legally assured timber and wood products to consumer countries.

But now those involved report that serious momentum is building and, while no-one is yet naming precise dates, the first FLEGT-licensed material is promised soon from Indonesia and Ghana. In fact, late last year and early this, both countries organised publicity drives in Brussels and London to highlight their achievements under the initiative to date and to flag up the potential value of FLEGTlicensed timber to European traders. Indonesia predicts it will boost its exports by 6%.

What our feature this week also highlights is that, with growing moves globally by timber consumer markets to shut out illegal timber, following the leads of the US Lacey Act, EU Timber Regulation and Australian Illegal Logging Prohibition Act, the FLEGT project could develop wider international value as evidence of legality. This, in turn, would potentially give it still greater impetus.

At heart, FLEGT involves timber supplier countries, notably those in the tropics with most challenging forest management and legality issues, working under their VPAs with the EU and their own domestic governments to establish robust forest governance and legality assurance mechanisms. It is effectively the supply-side tool for blocking illegal timber from the EU market designed to work with its demand side instrument, the EU Timber Regulation. The end prize for the suppliers, once they pass all the tests and get to supply FLEGT-licensed timber, is that this material will have access to the EU without further due diligence illegality risk assessment. That's seen as an attraction for sellers and buyers alike, hence Indonesia's forecast that it will give its timber greater commercial appeal.

While the full value of the initiative won't be seen until those first FLEGT-licensed cargoes arrive, as that point approaches there does seem to be growing awareness of what the initiative has already achieved in supplier countries. In some pretty challenging environments, it has significantly improved forestry and legality performance, and accomplishments have been on a major scale. Ghana, for instance, has rolled out advanced timber tracking software across its industry, while Indonesia has audited more than 18 million ha of forest under its legality assurance system.

Several of the 15 supplier countries engaged with FLEGT (and 11 more are now talking about it) have said that another major achievement is implementing the public and private sector stakeholder involvement it demands. It's been a struggle, but in some countries is already transforming the once monolithic face of timber and forest industries. As its benefits, actively promoted by the EU and supplier countries involved, do become known elsewhere, it is also attracting more interest from these other consumer markets with anti-illegal timber policies and regulation.

None are saying FLEGT licences will give the same market access under their rules as they do under the EUTR, but discussion around what they could contribute as proof of legality itself, or evidence of supplier legality commitment, is active. The end game could ultimately be FLEGT becoming part of a wider international framework to stamp out illegal timber, giving even more countries the incentive to sign up.