Entering a Forest Law Enforcement, Governance and Trade Initiative Voluntary Partnership Agreement (FLEGT VPA) commits supplier countries to establish an effective timber legality assurance system (TLAS) nationwide. It requires them to ensure wide stakeholder engagement and involve as many interests as possible in VPA and wider forest and timber sector decision-making. They must address deficiencies in forest governance and guarantee transparency. It’s a demanding, detailed business and takes time.
To date only Indonesia has fully implemented its VPA, enabling it to issue FLEGT licences for timber exports to the EU, which exempts them further due diligence under the EU Timber Regulation. However, another 14 countries, all tropical and accounting for 75% of EU tropical timber imports, are at some stage of the process. The following is a summary of their progress and recent developments based on the latest Annual Report from the EU FLEGT Independent Market Monitor (IMM), the EU-backed, International Tropical Timber Organisation-managed body charged with monitoring trade flows from VPA countries and gauging market impacts and perceptions of the initiative in the EU.
FLEGT-Licensing partner countries
Indonesia
Indonesia fully implemented its VPA and started FLEGT licensing in 2016. Since then its 25 independent licensing authorities have issued over 50,000 licences. And EU importers and FLEGT Competent Authorities say the system has generally worked effectively and efficiently. Initial issues with mis-matches between product codes on licences and those used by EU customs have largely been resolved.
VPA implementing countries
Cameroon
The pace of VPA implementation has been slow recently. But in May 2019 implementation of the SIGIF2 software, which was to underpin Cameroon’s TLAS, was halted and development of an alternative started under the European Development Fund PAMFOR programme. The country’s timber legality definition is in process and the Ministry of Forest and Wildlife has issued 18 certificates of legality to 16 timber processors and published a document on its certification document collation.
Information on compliance with VPA legality requirements by Cameroon loggers, and those in the Democratic Republic of Congo and the Republic of Congo, is now available on the Open Timber Portal.
Central African Republic (CAR)
While the CAR’s security situation remains a concern, VPA implementation has regained momentum. The 2017 joint EU-CAR VPA Annual Report, published this year, highlights reinstatement of the Mobile Inspection Brigade, which polices forest, wildlife and fishing activity, and launch of a database for monitoring timber transport and tax payment. The WWF’s private sector VPA capacitybuilding project continues and consultants from the UN FAO-EU FLEGT programme are supporting creation of a VPA information website and timber monitoring database.
Republic of the Congo (ROC)
By 2018, 29 RoC forest concessions out of 60, comprising 10.4 million ha, or 68% of commercial forest, had implemented or were developing sustainable management plans under the VPA process. The EU and RoC have also released a 2018-22 implementation strategy, including VPA communication plans, and renewed Ministry of Forest Economy focus on “optimising forest revenue collection”. Stakeholder engagement has been improved by the country’s Sustainable Forest Management Platform and a new Congo VPA Facebook page.
At the November 2018 meeting of the EU -ROC VPA Joint Implementation Committee (JIC), the FLEGT VPA unit urged more funds for development of the country’s legality verification framework. But the computerised legality and traceability verification system was reported ready for deployment.
Ghana
Ghana is expected to be the next country to start FLEGT licensing. With the EU, it announced the launch of the Final Joint Assessment of its TLAS (GHLAS) in January. Latest developments include the Ghana Forestry Commission and UN FAO agreeing funding for the project ‘Enhancing stakeholders interest in the Domestic Timber Trade Network (DOTTNET) process to assess demand and supply of legal timber in the Ghanaian domestic market’.
The premise is that international acceptance of Ghana’s VPA and ultimately its resulting FLEGT-licensed timber, requires a “wellstructured, regulated domestic market”. DOTTNET aims to create a network of players across the market, underpinned by a platform providing timber traceability.
Liberia
Following 2018 talks to relaunch Liberian VPA implementation, the EU-Liberia JIC met early 2019. Topics discussed included slow disbursement of their share of timber companies’ land rental fees to loggingaffected communities and creation of a mechanism to expedite this was recommended. The Liberian Forestry Development Authority committed to make more information publicly available and the JIC also endorsed a new communications strategy on VPA progress and areas for improvement. The Liberian government is also now taking over the LiberTrace timber tracking system and Legality Verification Department from private sector provider SGS.
Vietnam
Vietnam’s VPA was ratified with the EU in April 2019 and its terms are enshrined in the country’s new forestry law. The latter includes government commitment to increase forestry co-operation with foreign partners to strengthen environmental protection and help meet sustainable development goals.
Under its VPA, Vietnam is aiming for a fully operational TLAS (VNTLAS) by 2021. The system will cover domestically sourced wood and imports. As Vietnam is a major regional processing hub and manufacturer, importing timber and wood products from over 80 countries, it is thought this could create a legality assurance ripple effect across its suppliers.
VPA initialed partner countries
Guyana
Guyana initialed its VPA agreement in 2018. It subsequently launched formal consultations on new forestry regulations and formalised a compulsory code of practice for forest operations. The VPA process has led to various governance gains already. It has strengthened government institutions responsible for forestry, tax, customs, environment, labour and land use. There is a strong focus on the rights and interests of Amerindian peoples and, as part of its commitment to transparency, the Guyana Forestry Commission now publishes logging concession allocation information online.
Honduras
Honduras also initialed its VPA with the EU in 2018. It has been characterised by broad stakeholder engagement, including public and private sectors, civil society and, in a FLEGT VPA first at the time, indigenous peoples’ groups. Honduras’s TLAS will be based on its existing national strategy against illegal logging (ENCTI) and a VPA annex lists industry information the government commits to making public.
VPA negotiating countries
Côte D’ivoire
Côte d’Ivoire entered VPA negotiations in 2013. In 2017 it updated its VPA Roadmap and pledged to improve forestry control. Consequently, a new forest code was adopted this year aimed at accelerating reforestation through partnerships between small holders, private and public sectors. This reinforces sanctions and addresses agroforestry, forest concession issues, independent observation and stakeholder participation.
Democratic Republic of Congo (DRC)
The draft of the DRC’s VPA legality definition for industrial forest concessions was field-tested last year, with results presented this summer. Also in 2018 a national strategy on community forestry was adopted.
Overall, the DRC has engaged more with the EU REDD initiative recently, but some of this engagement, including action on sustainable forest management, conservation and forest carbon stock strengthening, has seen the country progress towards FLEGT objectives. Pilot projects have trialed a legality strategy and compliance standard for monitoring logging companies.
Gabon
Gabon and the EU agreed a VPA roadmap in 2015, but there have been no negotiations since. However, the Gabonese government has continued with forest sector legal reforms, notably revising the forestry code. A National Action Plan to Fight Illegal Forestry Exploitation was also initiated.
The forest ministry has prioritised efforts to stamp out illegal logging and last year president Ali Bongo stated that all Gabon’s forest concessions must be third party certified sustainable by 2020.
Lao PDR
Lao PDR began VPA negotiations in 2017. Currently its main source of timber is forest clearing for conversion to plantation and non-forest use. But, underlining its commitment to reform, in January 2019 a national consultation workshop was held to discuss the final draft of the Ministry of Industry and Commerce’s policy to implement systematic timber supply chain monitoring and control to ensure legality.
Lao PDR delegations have also visited other VPA countries to see how their TLASs operate.
Malaysia
Formal VPA negotiations have been on hold in Malaysia since 2015 due to Sarawak’s reluctance to be party to it. However, Peninsular Malaysia has implemented a TLAS (MYTLAS) to facilitate timber industry compliance with customers’ due diligence requirements.
More than 60,000 MYTLAS licenses had been issued by the Malaysian Timber Industry Board for products exported to the EU by June 2018 and Peninsular Malaysia implemented a timber import legality requirement in 2017.
Sabah introduced a TLAS in 2016 involving third party auditing and Sarawak has also committed to implement a mandatory, independently audited timber legality verification system (STVLS) from 2020.
Thailand
Like Vietnam, Thailand is a significant regional wood products manufacturing hub and major importer from other suppliers in the area including neighbouring countries with higher deforestation rates; Cambodia, Malaysia (Sarawak) and Myanmar.
It started VPA negotiations with the EU in 2017 and they held their second round of negotiations last year, the Thai government having committed to introduce forest governance improvements, including public consultation for legal reforms, gender equality, information access and a public right to participate in and benefit from natural resource management.
Thailand also reported progress on development, through broad stakeholder engagement, of its TLAS.
The EU IMM’s latest Annual Report will be available on its website, www.flegtimm.eu, soon.
