The recent webinar organised by the Timber Trade Federation (TTF) and Indonesian embassy underlined the UK and Indonesia’s continuing commitment to develop their timber trade and ensure its legality and sustainability.
But participants from both countries also emphasised the need for increased communication of the UK/EU Forest Law Enforcement Governance and Trade (FLEGT) legality assurance initiative, under which Indonesia is to date the only signatory to export FLEGT-licensed timber, to raise market awareness and ensure its long-term value and development.
The event, also backed by UK government and the British Retail Association, was titled ‘The Indonesian timber industry as sustainable partner for the UK market’.
It is obviously not possible to directly correlate Indonesia’s increase in timber exports to the UK and EU with its efforts to transform itself from one of the main sources of supply to the illegal tropical timber trade, to a model for combating the latter; introducing first its SVLK timber legality assurance system, then signing up to the EU FLEGT initiative, with the SVLK forming the foundation of its FLEGT Voluntary Partnership Agreement (VPA).
But the clear implication from Indonesian speakers at the seminar is that the country’s commitment to legality and sustainability has at least underpinned industry and export development.
According to Alue Dohong, vice-minister of the Indonesian Ministry of Environment and Forestry, while illegal logging in the country still equates to 29.1% of its timber production, that’s down from 80% in 2004. And, he stressed, the effort continues.
“In the last five years the Indonesian authorities have seized 37,619m3 of illegal timber, conducted 526 anti-illegal logging operations and brought 373 illegal trading cases to court,” he said.
Over the time it has cracked down on illegal timber, added Mr Dohong, its legitimate trade has grown dramatically.
From the 2013 implementation of the SVLK to 2015, Indonesian timber exports rose more than 50% to US$9.8bn. From the start of FLEGT licensing in 2016 to 2019 they grew a further 30%, from US$9.2bn to US$11.6bn. From January to August this year, despite the pandemic, they still hit US$7.1bn.
Exports to the EU, including the UK, rose from US$875m in 2015 to over US$1bn in 2019, while those to the UK itself increased from US$222m to US$277m, albeit that the health crisis saw them fall 24% from January to August to US$144m.
The UK and Indonesia have affirmed that their long-term partnership on timber legality assurance continues post Brexit. The UK FLEGT regulation will replace the EU FLEGT regulation in UK law and last year the countries committed to a bilateral FLEGT VPA.
In the webinar, Zac Goldsmith, Minister of State for Pacific and the Environment, underscored the importance the UK government attaches to this relationship.
And, he said, it not only wants to redouble efforts on timber legality, but it sees FLEGT as a template for ensuring deforestation-free supply chains for other commodities.
“We’re proud to have worked with Indonesia for two decades to drive action against illegal logging, to support its establishment of a robust legal standard and system of audit compliance and to incentivise supply and demand sides of the timber trade to act responsibly,” said Lord Goldsmith.
“It’s shown that, with the right approach, trade can drive transformative change that benefits people and nature,” he continued.
“The UK government has now commissioned the Global Resource Initiative to consult on how best to reduce the climate and environmental impact of [other] commodities, some of which come with devastating levels of deforestation. We can learn from our experience in the timber sector of tackling illegal logging and deforestation while supporting livelihoods of people in supplier countries.”
Scope to Incentivise
While acknowledging Indonesia’s FLEGT success, other webinar speakers said there was scope to increase the impact of the initiative, and incentivise other countries to complete their VPAs or enter one, by raising its market profile and recognition.
“Conscious consumerism is growing – consumers want to know that products they buy do not contribute to deforestation and they’re asking retailers the question,” said Leah Riley Brown, BRC sustainability policy adviser.
“That’s where frameworks like FLEGT can come in; ensuring supply chains are transparent and robust and providing that assurance.”
Budi Hermawan of multi-faceted Indonesian timber supplier and manufacturer Kayu Lapis said that more promotion for FLEGT was needed to add to its perceived market value for exporters. This in turn could incentivise other supplier countries to complete or implement VPAs, so increasing the momentum of the initiative.
“It’s an EU and UK project, so they should step up [promotional] action,” he said. “A FLEGT logo would also be beneficial – it would increase awareness and interest. If there’s something visual on the box, it prompts consumer questions.”
Sean Hannan of Pacific Rim Wood urged greater incentives to purchase FLEGT-licensed goods. “There are grants to install solar panels, tax breaks for electric cars. Given its environmental benefits, why not adopt a similar strategy for FLEGT,” he said.
To drive the initiative forward, TTF managing director David Hopkins agreed the key was to “promote, promote, promote”.
“Communications are vital from Indonesian, UK and EU governments and trade,” he said. “In particular, we should press UK government, as part of its COP 26 UN Climate Change Conference hosting duties next year, to emphasise that introducing a framework like FLEGT, covering forest governance and forest product legality, is absolutely the first step in realising our climate change ambitions.”
