Legal domestic lumber and a multi-stakeholder dialogue

Legal domestic lumber and a multi-stakeholder dialogue

the Netherlands - 20 June, 2013

Illegal logging has a devastating impact on forests throughout the world and on the people who live in and depend on these forests. Timber-producing countries in the tropical regions struggle to provide legally verified lumber, especially for local consumption. TBI is supporting these countries in finding new ways to assist the forest sector in supplying legal lumber to the domestic market.

The illegal timber trade

Between €25 and 75 billion in illegal timber is traded every year, with a loss of tax revenue of around €10 billion to the governments concerned. The European Union (EU) is combating illegal logging with the adoption of the Forest Law Enforcement Governance and Trade (FLEGT) Action Plan. This plan bans illegal timber from the EU market through the EU Timber Regulation, and supports countries in producing legally verified timber through Voluntary Partnership Agreements (VPAs). This timber will be awarded with a FLEGT licence, which will in turn provide access to the EU market.

The majority of the VPAs cover all timber harvested in the country, for both domestic use and export. Production for the local market represents a high percentage of the total timber trade in these countries - often more than 50% - and this share is likely to grow. Many VPA countries are struggling with implementation of the agreement, especially with regard to domestic timber markets. Most of the timber produced for the domestic market in these countries is harvested informally.

A negotiated solution

In Ghana more than 80% of timber for the local market (around 2.5 million m3 per year) is supplied by illegal chainsaw milling. Chainsaw milling is the on-site conversion of logs into lumber using chainsaws; the practice is widespread, even though it has been banned in Ghana since 1998. Finding solutions to this persistent problem has proved to be difficult because of the complexity of the issue and the multiple interests involved. To address this complexity and bridge the differences in perceptions TBI engaged all stakeholders in finding a solution. An all-inclusive discussion, supported by information obtained through thorough research, was organized. This multi-stakeholder dialogue (MSD) resulted in the adoption of artisanal milling to supply the domestic market with legal lumber. In this approach, forest resources are allocated to small-scale loggers, who sell their legal production to the local market. The concept is being tested through various pilot projects.

TBI is facilitating a similar process in Guyana. There, the small-scale logging sector accounts for 60% of total timber production. Even though the sector produces legal timber, the situation is not without challenges. Together with interested groups, TBI assessed the issues and recommendations for strategic improvement of the subsector to inform a multi-stakeholder dialogue. This MSD process has the potential to make important contributions to the VPA negotiations that started in Guyana in 2012.
TBI’s experiences in addressing domestic timber market issues provide important lessons for stakeholders in other countries. In Kinshasa, in the Democratic Republic of the Congo, TBI - together with IDLgroup - organized a Forest Governance Forum in September 2012. TBI presented its experiences with the MSD process in Ghana and launched a book on artisanal logging in DR Congo.

Participation in events and conferences informs stakeholders of TBI experiences, such as the conference “Illegal logging and legality verification – the FLEGT/VPA as new modes of governance” (Copenhagen, December 2012) and the biannual Chatham House Illegal Logging Stakeholder Consultation and Update meetings (London, 9–10 February and 5–6 July 2012).