Welcome to Issue 3 of the NEPCon Sourcing Hub Update for August 2018!
I hope this newsletter reaches your inboxes after a long, warm and relaxing summer (for our friends and colleagues in the Northern Hemisphere) or for my friends in the south, I hope you are feeling the first hint of spring, like I am here in Melbourne.
The last few months have been exciting ones for NEPCon - you may have already seen that RA-Cert and NEPCon have announced our intention to join, forming the world's largest mission-driven certification body. This is of course very big news for NEPCon in general, but I find it particularly exciting for its implications for the NEPCon Sourcing Hub, and our work in helping organisations meet their responsible sourcing commitments.
With this acquisition comes more than 80 new NEPCon staff, located in North America, Latin America, Africa and across Asia and the Pacific. This means our ability to keep abreast of the developments in the world of responsible sourcing has increased exponentially, and our capacity to maintain the relevance and credibility of the information on the Sourcing Hub is also vastly improved. We now have staff located in all the worlds deforestation hot spots and I am confident this is a great thing for companies endeavoring to improve the sustainability of their supply chains.
As always, it has a been a busy and complex month in the world of responsible sourcing. Our three Top News Stories share the spotlight this month because of the scope and importance of the information they contain. Asian Pulp and Paper (APP) and Asia Pacific Resources International (APRIL) are two of the largest paper companies in the world, both with significant supply chains out of Indonesia; the decision of the Indonesian government to mandate the use of palm-oil based biodiesel will have a big impact on the demand for palm oil in Indonesia, which in turn is likely to have an impact on deforestation; and the final story on PNG's timber supply chains which have been traced via China into the US and EU by Global Witness shows the level of traceability available and that high risk timber is still making its way into the European and American markets despite strong laws in place. As always, we have also summarised all the news stories updated on the NEPCon Sourcing Hub this month, organising them for you by commodity and country.
I hope you find this newsletter useful, and as always, please let us know if there is something missing. Please also share it with your networks and anyone you think may find it interesting.
Cheers,
Alexandra Banks
Sourcing Hub Programme Manager
Sourcing Hub Updates
Risk Assessment for timber from Turkey published
The Timber Legality Risk Assessment for Turkey has now been published on the Sourcing Hub. In addition to downloading the full risk assessment report, you can also read the country page for a summary of the most important findings. Based on our analysis, we have given Turkey a Timber Risk Score of 43 out of 100.
NEPCon article: A Practical Guide to CITES
Our new article A Practical Guide to CITES covers information on how CITES works, a list of timber species, permits to import, export or re-export timber listed under CITES and some examples of fake CITES permits.
Stakeholder consultation on Solomon Islands
The consultation draft of the Timber Legality Risk Assessment for the Solomon Islands is still available on the Sourcing Hub. We welcome and encourage stakeholders to review and provide us with feedback. Find out more on the Stakeholder Consultation page on the NEPCon Sourcing Hub.
FSC Risk Assessments Approved
FSC risk assessments have been approved for China (Shangdong province and Guangxi autonomous region only), Myanmar, and Norway and are available on the FSC document centre. Risk assessment conducted according to the FSC-STD-40-005 that have been approved by FSC may be used by FSC certified companies in risk assessments as part of the Controlled Wood program.
Top News Stories
Indonesia's pulp & paper giants in the deforestation spotlight (again)
A series of allegations has been raised against biggest Indonesian pulp producers that link them to illegal deforestation in Kalimantan. First, a coalition of NGOs including WWF Indonesia and Auriga, released a report, which showed, using wood supply data from Indonesia’s forestry and environment ministry, that global paper giants Asia Pulp & Paper (APP) and Asia Pacific Resources International (APRIL) had been purchasing wood from concession holders involved in clearing of almost 32,000 ha of natural forest in East Kalimantan. This is despite the companies’ landmark zero-deforestation commitments from 2013.
The supplier in question, PT Fajar Surya Swadaya (FSS), cleared natural forest between 2013 and 2017 to make way for pulpwood plantation. According to official wood use data, mills of both APP and APRIL in Riau, Sumatra received shipment of plantation wood from FSS in 2017. Another wood chip mill in East Kalimantan, linked to APP’s owner Sinar Mas Group, purchased 15,000 cubic metres of the controversial plantation wood from FSS.
APP strongly rejected the accusations in its statement, insisting that the wood from FSS had been purchased erroneously after an administrative lapse in its system that had wrongly cleared the supplier. The logs in question were reportedly quarantined at their mills as soon as the company discovered their contentious origin. Following this incident, the company has set out to integrate a 14- day public consultation period encouraging stakeholders to provide feedback on APP’s potential suppliers.
APRIL replied in its statement that sourcing from FSS was in accordance with their sustainable forestry policy, as they had determined that FSS’ plantations had been developed in areas of low conservation value. APRIL added that a recent report by auditing firm KPMG found that “APRIL’s zero deforestation and no mixed hardwood use commitments have been upheld.”
In related news, the FSC said it had halted its readmission process of APP until the company provided sufficient information “related to its corporate structure and alleged unacceptable forest management activities” of its suppliers. Sinar Mas, APP’s owner who was expelled from the FSC in 2007 for extensive destruction of Indonesia’s rainforests, replied that it has hired an accounting firm and launched a process of comprehensive assessments of all industrial forest plantation companies in Indonesia to dispel any confusion as to its ownership structure.
Find out more about sourcing timber from Indonesia on the NEPCon Sourcing Hub
Biodiesel mandatory in Indonesia - palm oil demand will rise
Indonesia is making palm oil-based biodiesel mandatory for all vehicles and heavy machinery from 1 September onward in a bid to slash the country’s trade deficit by reducing diesel imports to the country. In Indonesia, the bio component in a biodiesel mix consists of fatty acid methyl esters (FAME) made from palm oil. The new rule implemented through a presidential regulation will require that all diesel fuel produced and sold by 19 biofuel producers and 14 fuel retailers in Indonesia is B20 – blended biodiesel with a 20% FAME component. Biofuel producers will be fined Rp 6,000 (US$ 4 cents) per liter should they fail to meet the supply deadline. By expanding the use of B20, the government hoped to decrease fuel imports by 3.5 million kl (kilolitres) to 4.5 million kl per year, reducing thus the trade deficit by up to $6 billion per year.
While the new legislation has certainly pleased the palm oil sector, environmentalists fear the boost to local palm oil consumption will hasten Indonesia’s already fast spreading deforestation. The automobile industry has also raised concerns about the potential negative effects of the blended oil on engine performance. This is due to the FAME’s corrosive effect on engine seals and gaskets, which might increase maintenance costs. If an increase in the FAME component in the blend to 30% is legislated at latest by 2020, as is expected, additional purchase of specialized equipment might be required for the users of the blended fuel.
Find out more about palm oil from Indonesia on the NEPCon Sourcing Hub
PNG's illegal timber traced through China into EU and US
China might be a gateway for illegal timber from Papua New Guinea finding its way onto the EU and the United States market. China sources almost 30% of its tropical timber imports from PNG, making it its single largest supplier. At the same time, it has no regulation pertaining to legality of its timber import,reports the Global Witness. This can put China’s reputation and trade relationships in jeopardy, as both the EU and the US ban illegal timber imports and may take action to protect themselves.
The NGO’s investigation has revealed how a large number of logging concessions in PNG operating under 4 different project types breach the law despite holding government-issued permits. Some of the issues involve failure to follow the provisions of the 1991 Forestry Act and the Logging Code of Practice or logging without the consent of the indigenous landowner. Moreover, logging permits can sometimes be obtained or extended illegally thanks to prevalent corruption. The issuance of clearcutting permits (Forest Clearance Authorities) by the PNG Forest Authority is an example of such a legally questionable process lacking in transparency.
The authors of the report suggest that “the PNG government should place a moratorium on all existing logging operations and review the issuance of their permits and the operations themselves for legal violations.” They also propose that the Forest Authority should improve its supervision of forestry operations and in conjunction with the judiciary prosecute and impose strict fines on the largest offenders. The Forest Authority should also improve transparency of the forestry operations by creating an electronic public library of “documents related to the issuance and oversight of logging and clearance permits and operations, including verification of landowner consent and findings from the agency’s checks on operations.”
Concerning potential improvements on China’s part, Global Witness called on Beijing to implement a mandatory due diligence system ensuring timber legality of its imports. They emphasize importers should not content themselves with official documents, which can be issued under legally dubious circumstances, as a proof of legality and they should be mandated to investigate and verify the actual timber production conditions. At present, illegal logging in PNG is so endemic that all buyers of timber coming from PNG should assume the logs are at high risk of being illegally produced.
Read more about sourcing timber from Papua New Guinea on the NEPCon Sourcing Hub
News from August 2018
Timber
FLEGT
- FLEGT reports: EU and Thailand hold 2nd negotiation on legal timber trade agreement
Thailand and the European Union (EU) have held their second round of negotiations on a Voluntary Partnership Agreement (VPA) on Forest Law Enforcement, Governance and Trade (FLEGT), amid Thailand’s rollout of substantial reforms affecting the forestry sector. The latest round of VPA negotiations focused on the legal text of the VPA, the range of products it will cover, and ongoing work to develop the approach Thailand will take to verify compliance with legal requirements for timber. Negotiators discussed Thailand’s timber supply chain controls and a system for ensuring that timber imported to Thailand has been harvested legally in the country of harvest.
- Independent Market Monitor releases a newsletter: IMM News
The Independent Market Monitoring (IMM) summer 2018 newsletter offers interesting insights into the IMM Trade Consultation event held in Nantes in May 2018. The attendees comprised timber importers and distributors, manufacturers and other end users. This newsletter includes the main findings and conclusions of the three Nantes workshop sessions and following group discussions on ‘Impacts of FLEGT VPAs on trading with Central African countries’, ‘Purchase dynamics for companies sourcing from Indonesia’ and ‘Market trends for tropical timber in Europe’. The newsletter also features a summary of findings of the IMM 2018 EU Furniture Sector Scoping Study, a contribution by the EU FLEGT Facility on Ghana’s Timber Transparency Porta, an update on Indonesia’s experience with FLEGT licensing and the EU’s approach for dealing with FLEGT-licensing teething issues.
FSC
- Mongabay publishes a commentary: The crisis in the European tropical timber sector in Central Africa
European concessionaires in Africa are gradually selling their assets to Asian investors, who have substantial capital and operate in markets that accept lower-quality wood. Withdrawal of European companies is associated with decline in FSC certification. Rougier and Wijma represented nearly 700,000 certified hectares in Cameroon, but their Chinese successors are not necessarily maintaining those certifications
Australia
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Echo Net Daily reports: NSW land-clearing rises 800 per cent
The annual rate of land-clearing soared 800 per cent in the three years before the Liberal-National government downgraded environmental protections further and made it easier for clearing to occur, new data show. A report obtained by the Guardian Australia after a lengthy freedom-of-information battle shows annual clearing increased sharply between mid-2013 and mid-2016, from 900 hectares to 7,390.
Bolivia/Ecuador/Peru
- Mongabay reports: Chinese / Western financing of roads, dams led to major Andes Amazon deforestation
International development finance institutions invested heavily in large-scale infrastructure projects that triggered significant deforestation in the Andes Amazon between 2000 and 2015, according to recent research published by Boston University’s Global Development Policy Center. Using satellite data, the study analyzed 84 large infrastructure projects and determined that the area around them experienced tree cover loss at a rate of over four times the average seen in comparable areas without such projects in those countries.
Brazil
- Mongabay reports: Deforestation continues upward trend in Brazil, says NGO
Deforestation in the Brazilian Amazon continues to trend higher, reports Imazon. Data from Imazon’s monthly deforestation tracking system indicates 778 square kilometers of forest were cleared in July, a 43 percent increase over a year ago. Deforestation increased most sharply over the past year in the states of Pará and Tocantins, both of which saw forest clearing rise by more than 2,000 percent relative to the prior year. Both states produce large volumes of soy and cattle, which are the largest direct drivers of deforestation in the legal Amazon. Imazon’s findings contrast with official data from Brazil’s national space research agency INPE, which shows a flat trend line.
- Mongabay reports: Fake logging permits undermine Amazonian conservation, say experts
Falsified numbers are contributing to widespread forest degradation from illegal logging and the over-exploitation of Amazonian timber species, according to experts. In a study published in Science Advances, researchers in Brazil say they found “a strong overestimation bias of high-value timber species volumes in logging permits.” The falsified timber industry data is used for legal cover to transport, market and sell illegally harvested timber. Essentially, fake permits are making it possible for illegally-logged high-value timber species to pass through the cracks undetected, as though they were legally harvested.
- Brazzil reports: Brazil Logging Mafia Kills Another Guardian of the Amazon
A leader of an Amazon tribe acclaimed for its environmental defenders has been killed, the latest in a series of deaths among the tribe. The body of Jorginho Guajajara was found near a river in the Brazilian state of Maranhão. He was a leader of the Guajajara people, acclaimed internationally for their work as the ‘Guardians of the Amazon’ in the most threatened region in the entire Amazon. It is not yet clear who killed him, but a powerful logging mafia supported by some local politicians has repeatedly targeted the tribe for its work protecting both its rainforest home.
Cambodia
- Phnom Penh Post reports: Huge timber busts in north
The Mondulkiri provincial authority on Wednesday refuted claims that it had turned a blind eye to illegal timber trafficking to neighbouring Vietnam. The denial followed the discovery of over 500 pieces of first-grade timber by the National Military Police in protected areas and local media reports that provincial governor Svay Sam Eang had allowed three tycoons to transport timber from the protected Phnom Prich Wildlife Sanctuary to Vietnam through the Dak Dam checkpoint.
- The Phnom Penh Post reports: Villagers in Mondulkir say illegal logging is going on unabated
Villagers claim that rampant illegal logging is taking place at the Phnom Namlear Wildlife Sanctuary and local authorities are not doing enough to curb the activity. Every night about 20 to 30 lorries remove luxury timber from the wildlife sanctuary, which is fast depleting its forest reserves. Even the Banong ethnic community in Pou Long village in Mondulkiri Province, who have the legal right to work in the forest are deprived of their livelihoods.
China/Mozambique
- International Institute for Environment and Development released a report: China in Mozambique’s forests - a review of issues and progress for livelihoods and sustainability
Mozambique exports 93% of its timber to China, so the country has a pivotal role in ensuring that Mozambique’s forests have a future. In June, the two countries signed a Memorandum of Understanding (MOU) in which they agreed to work together to stop forest destruction and enable Mozambicans to share the benefits from forest production with Chinese investors. China’s commitment to invest in establishing timber processing plants in Mozambique means it can help end the export of whole logs to China. The agreement also expects the two governments to work together to develop a bilateral verification system to combat illegal logging. The report shows that it is vital the verification system includes developing a bar-coded, internet-based, electronic timber tracking system that allows real-time data entry and checking throughout the supply chain.
Colombia
- Mongabay reports: Govt rushes to save national park from rampant deforestation
Tinigua Park is the only place in Colombia that connects the Orinoquía, the Andes and the Amazon, serving thus as a corridor for animals such as jaguars, mountain lions and brown woolly monkeys. However, reports find more than 3 percent of Tinigua’s forest cover was cleared between February and April 2018. Behind all this, say area residents, are the members of the now-demobilized FARC guerrilla group. They say that former FARC dissidents have taken over much of the territory and are distributing land at will, planting illicit crops like coca. Other villagers clear forest to later sell the land to land speculators and mafia. In addition to land speculation, there is also the expansion of the agricultural frontier. Officials from the National Parks System and inhabitants of the area calculate that within Tinigua Park there may be more than 14,000 head of cattle “formally registered.”
Ghana
- News Ghana reports: Ghana needs paradigm-shift in forest management
Obed Owusu-Addai of Eco-Care a forest advocacy activist think-tank noted that one of the ways Ghana’s forest reserves got depleted was through wrong farming practices. “Agriculture is causing a lot of forest loss, and in Ghana it is estimated to be about 50 percent of all forest losses. Deforestation is happening at a 2.3 percent rate annually in the country and cocoa and other farming forms contribute 50 percent of this,” he pointed out. The activist blamed wrong scientific approach which made Ghanaian farmers abandon the tree (shade) loving cocoa tree varieties for sun-loving cocoa cultivation, causing massive forest loss. “But now there is a new science that is saying you can get more benefits from your land by inter-planting your cocoa with trees with at least 18 trees on a hectare of cocoa farm,” he added.
- IMM's newsletter reports: PEFC study looks into synergies between Ghana’s FLEGT VPA requirements and PEFC certification
The Programme for the Endorsement of Forest Certification (PEFC) has conducted an analysis of Ghana’s FLEGT VPA requirements compared to requirements of Ghana’s National Forest Certification System, which is expected to obtain PEFC-endorsement in early 2019. The study identified significant synergies and complementarity between FLEGT and certification requirements and concluded that, while “working at different levels in many regards”, the ultimate outcomes would be complementary: “improving forest management and combating illegal logging and associated trade”.
India
- Down To Earth reports: Northeast losing canopy cover at alarming rate: study
A new study has warned that parts of Assam and Arunachal Pradesh are losing canopy cover at an alarming rate. Researchers from the Indian Institute of Remote Sensing, Dehradun, examined the pace of deforestation in the elephant landscape of the Northeast, covering 42,000 square kilometers in Assam and Arunachal Pradesh. The analysis revealed that about 7,590 square kilometers of forests have been lost between 1924 and 2009 with a mean deforestation rate of 0.64 per cent (for 85 years). Researchers also found that the degree of deforestation was greater in Assam compared to Arunachal Pradesh, possibly due to its hilly terrain which is difficult to tread upon. In Assam, districts like Dhemaji, Sonitpur, Lohit and Tinuskia suffered the highest area-wise loss in forest c over.
- Times of India reports: Six states sitting on edge as draft green norms hang fire
Over four years and three draft notifications since March 2014 when the Centre recognised the need to prevent further degradation of the fragile ecology of Western Ghats, it has failed to bring six states on board for urgent action. As a result, 56,825 sq km of ‘ecologically sensitive’ area could not be earmarked as ‘no go’ zone for polluting activities and deforestation — a prerequisite to save the region from constant environmental degradation.
Indonesia
- IMM's newsletter reports: “Mini Action Plan” under implementation to address FLEGT-license mismatches
The Joint Implementation Committee (JIC) for the Indonesian VPA met on 1 March 2018 in Jakarta to review experience with the first 15 months of licensing. The main outstanding issues with the licensing identified by the JIC were: HS Code mismatches; document discrepancies concerning quantities; license formatting or appearance; and comparability of the licenses received in the EU with copies stored in the SILK website.
- Associated Press reports: FSC halts plan to endorse Indonesian paper giant
FSC has suspended plans to give its endorsement to Indonesian paper giant Sinarmas after revelations it cut down tropical forests and used an opaque corporate structure to hide its activities. The Forest Stewardship Council said Thursday that it had halted a process that could have enabled the Asia Pulp & Paper arm of Sinarmas to be readmitted to the organization. The group’s suspension of its endorsement for Sinarmas comes after investigations showed extensive ties between Sinarmas and plantation companies that the conglomerate had either denied any involvement with or described as independent suppliers. One of those companies was cutting down tropical forest in West Kalimantan that was a habitat for critically endangered Bornean orangutans, a violation of the conglomerate’s 2013 vow to end deforestation. Greenpeace, which had been advising Sinarmas on conservation, cut ties with the conglomerate.
- Eco-Business reports: Have APP and APRIL both broken their no-deforestation promises?Two of the world’s largest pulp and paper companies, Asia Pulp and Paper (APP) and Asia Pacific Resources International Limited (APRIL), may have defaulted on their landmark no-deforestation commitments by using suppliers linked to forest clearing in Indonesia, research shared by a coalition of NGOs has found. Wood supply data from Indonesia’s forestry and environment ministry, seen by Eco-Business, show that both firms sourced wood from companies that have cleared some 32,000 hectares (ha) of rainforest in Borneo over the last five years. The findings appear to violate historic pledges APP and APRIL made in 2013 and 2015 respectively to stop clearing forests as they expand their operations in Indonesia. When contacted for a response, APP told Eco-Business that it sourced wood from a deforestation-linked supplier following an “administrative lapse”, while APRIL said the fiber came from a plantation area deemed not of high conservation value when it was developed. APRIL added that a recent report by auditing firm KPMG found that “APRIL’s zero deforestation and no mixed hardwood use commitments have been upheld.”
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Indonesia Investment reports: Growth in Indonesia's Furniture Exports in 2nd Quarter 2018
Abdul Sobur, Secretary-General of the Indonesian Furniture and Handicraft Industry Association said he Indonesian government could help to boost the country's furniture exports by removing the mandatory Wood Legality Verification System (SVLK) certification in the downstream furniture industry. According to Sobur, it burdens the downstream furniture industry because SVLK certification is expensive. Moreover, considering the certification is also mandatory in the upstream furniture industry, it is unnecessary to have it in the downstream industry as well. Others argue that the mandatory SVLK certificate (in both the upstream and downstream industry) is believed to have raised Indonesia's competitiveness in international timber trade as it proves the country's commitment to monitor legality in the wood industry.
Kenya
- The Star reports: Mangrove logging ban to be lifted
The National Assembly Committee on Environment and Natural Resources has promised to ensure the ban on mangrove logging is lifted. A nationwide logging ban was imposed on February 24 and later extended. Kenya seeks to increase its forest cover and illegal logging is a threat. Following an outcry among Lamu mangrove loggers, Mbiuki said they had considered the level of suffering caused by the ban. Around 30,000 households depend directly on mangrove trade for survival.
Liberia
- Front Page Africa reports: Watchdog to Empower Forest Communities
Eight forest communities in five counties are poised to benefit from a program to better negotiate logging contracts, exercise their rights and secure their benefits from their forest resources. It is in support of the Voluntary Partnership Agreement (VPA) between Liberia and EU whose objective is to curb illegal logging by legal and regulatory frameworks, good governance and conservation. Many forest communities have faced difficulty in securing the benefits from logging companies, despite Community Rights Law with Respect to Forest Lands of 2009. Gbi and Doru, for instance, have been in a marathon conflict with the Liberia Tree Trading Company over its land rental and cubic meter fees.
Madagascar
- Mongabay reports: Madagascar proposes paying illegal loggers to audit or buy their rosewood
In June, the World Bank facilitated a workshop to discuss what Madagascar should do with its stockpiles of illegally logged rosewood. Madagascar has been unable to make a proper inventory of the stockpiled wood or control illegal exports. The rosewood could be worth hundreds of millions of dollars on the international market, but the country cannot sell it until it shows progress in enforcing its own environmental laws. Madagascar’s government proposed a radical solution: paying loggers for access to their illicit stockpiles in order to keep tabs on the wood, or even buying the wood back from them directly.
- OCCRP reports: The Fate of Madagascar’s Endangered Rosewoods
In Madagascar, rosewood traders are kingmakers, felling trees — and governments. Going undercover, reporters found how they make millions smuggling the rare bleeding timber to China.
- Transparency International reports: Madagascar government must take action on trafficking of precious wood
Transparency International - Madagascar Initiative and the Voahary Gasy Alliance were recently approached by the Organized Crime and Corruption Reporting Project to collect information and data on rosewood trafficking in Madagascar. The resulting investigation reinforces our own analysis of the situation and that of other specialized organizations, such as the Environmental Investigation Agency (EIA). The investigation puts into perspective the current project of selling thousands of stockpiled rosewood logs, which is backed by the Madagascar Government and the World Bank. This project could reactivate dormant trafficking networks and enable illegal transactions to be made under cover of authorized transactions, as has occurred in the past.
Malaysia
- New Strait Times reports: Only 150 officers to man 544,000ha of Terengganu's forest
‘We only have 150 enforcement officers to monitor 544,000ha of forest reserve in the state,’ said state Forestry Department director Datuk Ahmad Fadzil Abdul Majid. The shortage impedes the department’s efforts to be an effective enforcement agency to curb “timber pirates” from profiteering. The Terengganu government estimates it has lost millions of ringgit in revenue from illegal logging in forests reserves over the past 10 years “[W]hen we carry out an inspection at one location, the syndicates will mobilise their teams to other locations. Our task is made all the more difficult with lack of logistics, vehicles and technical know-how in managing satellites and drones.”
- Malay Mail reports: Putrajaya mulls legislating Orang Asli native land
Speaking on the sidelines of a forum, Deputy Minister Waytha Moorthy said the government is taking the issue seriously, claiming Prime Minister Tun Dr Mahathir Mohamad is “quite concerned” about the rights of Orang Asli being trampled upon. His remarks came after the Kelantan Forestry Department broke through the Orang Asli community’s blockade to prevent illegal logging in Gua Musang, Cawas, Kaleg and Kegeg yesterday.
- The Star Online reports: Govt officials and loggers cut deals to ‘rape’ Sabah forests
Task force investigators are beginning to uncover an unholy alliance between government officials and loggers cutting deals to “rape” Sabah’s forests. It came to light when recent raids conducted uncovered a series of illegal logging activities as well as forest offences committed by certain government-linked and public-listed companies. According to sources, there was a complex network of loggers working with state officials, who turned a blind eye to illegal logging operations carried out by licensed timber concession holders, as well as illegal operators.
- The Star Online reports: MACC raids logging firms believed involved in shady deals
Graft-busters have begun moving against Sabah’s powerful timber cartels, conducting simultaneous raids on three logging companies in Sandakan and Tawau. The Sabah Forestry Department headquarters was also raided. Sources said a team of Malaysian Anti-Corruption Commission (MACC) investigators went to the department in Sandakan yesterday morning, spending several hours searching for important documents. The investigating team was looking for logging deals signed by the previous Barisan Nasional state government, headed by former chief minister Tan Sri Musa Aman.
- Sarawak Report reports: KING GONE! Sabah's 'Chief Conservator' Of Forests Booted Out At Last
After years posing as a great defender of Sabah’s fast depreciating forests, Sam Mannan has now been exposed as one of the main drivers of destruction, issuing licences for illegal clear cutting in supposedly protected areas across the state. He was sacked on Friday August 3rd following a major taskforce investigation into the disgraceful practices of his department intitiated by the new Chief Minister of the state.
- The Star reports: Outgoing Sabah Conservator of Forests one of three investigated by MACC
Outgoing Sabah Conservator of Forests Datuk Sam Mannan is one of three senior Forestry Department officers being questioned by the Malaysian Anti Corruption Commission for suspected abuse of power and corrupt practices. MACC officials could not be reached for an immediate comment on the investigations triggered after a state special task force uncovered some 40,000 logs that were illegally felled or royalties unpaid among others timber licensing laws broken.
- The Star Online reports: Sarawak makes ruling on timber licences
Sarawak has made it mandatory for all long-term timber licences to obtain forest management certification by 2022. Chief Minister Datuk Patinggi Abang Johari Tun Abang Openg said the move was in line with the state forest policy reform currently being carried out to strengthen forest management and wood-based industries. To date, only three forest management units – Anap Muput, Ravenscourt and Kapit – in Sarawak have obtained the forest management certification.
Myanmar
- IHB reports: Launch of third party certification
According to the domestic media the Myanmar Forest Certification Committee (MFCC) launched its Third Party Certification System at an 8 August workshop in Yangon. It is reported that there are four Certification Bodies, three local and one international, which will issue Legality Compliance Certificates under the Myanmar Timber Legality Assurance System (MTLAS). At a recent meeting in Brussels several Competent Authorities (CAs) complained of the lack of information being provided by Myanmar. To improve transparency and access to information the MFCC has launched a website http://www.mfcc.com.mm. The Myanmar Timber Enterprise also has a website (www.myanmatimber.com.mm ) and the Secretary of the MFCC has urged the EU CAs to access these sites.
- IHB reports: In Myanmar wood processing mills are closing due to lack of logs
According to the Secretary of the Myanmar Timber Merchants Association, Soe Win, about 80% of the wood processing plants in the country have stopped operation. The reason is the drastic reduction in log harvesting volume, and while the depreciation of the local currency against major currencies is helping exporters, it has pushed up the price of the imported raw materials used in production. Myanmar introduced a one-year harvesting moratorium for 2016-2017 and resumed harvesting this year but harvest levels were reduced from 350,000 Hoppus tons down to 15, 000 Hoppus tons for teak and from 1,400,000 Hoppus tons to 350,000 hoppus tons for non-teak timbers.
- Timber Industry News reports: Teak purchases from Myanmar discouraged in EU countries
Given continuing controversy in the EU over whether Myanmar teak can be traded in compliance with EUTR requirements, importers were surprised by EU import statistics showing a 46% increase in sawn hardwood trade with Myanmar in the first five months of this year. The statistics indicate that much of the rise in trade was destined for Italy, Belgium, Germany, and the Netherlands. Some NGOs claim that it is not possible, under the existing regulatory framework in Myanmar, for EU importers to gather information sufficient to ensure a negligible risk of teak being from an illegal source.
Pakistan
- Daily Times reports: NGOs protest against ‘catastrophic’ deforestation by feudal lords in Sindh
The Sindh-based environemtnal NGOs on Monday organised a demonstration in front of the Hyderabad Press Club against ‘devastating’ deforestation and land degradation caused by cultivation by feudal lords (waderas) backed by influential politicians in Sindh. Prof Mushtaq Mirnai expressed concerns over the situation, and said that the land grabbing by feudal lords has caused reduction of the forest land to less than 2.5 percent of the total area, thus causing adverse climate changes, global warming, environment pollution, less rains, and leaving people, the forest communities and their livestock in a ‘helpless’ situation.
Papua New Guinea
- France24 reports: Watchdog urges China to clamp down on imports of illegal timber
Beijing must better scrutinise imports of illegally logged timber from countries such as Papua New Guinea where deforestation is devastating ecosystems and livelihoods, Global Witness said Monday. Millions of tonnes of illegally logged timber, are being exported to China and from there to the world as finished wood products. The watchdog said in a new report that a large number of logging operations in the Pacific nation violated local laws despite holding government-issued permits. The alleged violations included corruption and bribery in the issue of permits, logging without the consent of indigenous landowners and the exporting of timber above amounts that are legally allowed. Global Witness said PNG provided 29 percent of China's tropical log imports, making it the country's single largest supplier.
- Radio NZ reports: PNG govt criticised by NGOs amid APEC meetings
This week in Moresby, the APEC Experts Group on Illegal Logging and Associated Trade is to formulate plans to combat illegal logging in the region. This comes on the heels of a new report by NGO Global Witness claiming PNG hasn't stopped rampant illegalities in its forestry sector. Representatives of the NGO are in town this week, seeking answers from PNG but also urging China, as the largest market for PNG tropical logs, to put safeguards in place to ensure the log supply is legal and sustainable.
Peru
- TeleSUR reports: Drones Provide Proof of Peru's Mining, Deforestation Crisis
Thousands of photographs taken during an “unprecedented” three-day procedure high above the Amazonian region of Madre de Dios unveil the center of Peru’s mining and deforestation crisis, the ministry said in a statement. "The photographs and videos captured during the overflight in Madre de Dios allow us to appreciate precisely how illegal mining activity affects the Amazon by causing deforestation," Col. Luis José Callirgos, of the Peruvian Air Force (FAP).
South Sudan
- East African Business Week reports: Salva Kiir Orders Ban On Charcoal Trade
In an effort to protect South Sudan’s forest’s cover which is being depleting at high rate due to charcoal burning, the government of Salva Kiir Mayardit has ordered a ban on charcoal trade in South Sudan.South Sudan’s Ministry of Trade and Environment announced restriction on charcoal exports to commence towards the end of July 2018.South Sudan’s Minister for Trade and Environment, Moses Hassan Tiel directed all commercial and Intelligence Officers to ensure that no charcoal crosses from South Sudan to neighbouring countries.
Viet Nam
- IMM's newsletter: Country Focus - Vietnam
The signature by the EU and Vietnam of the latter’s FLEGT Voluntary Partnership Agreement is scheduled for later this year, with ratification in 2019. They are being heralded as critical staging posts, and important moments both practically and psychologically, in the country’s progress towards full VPA implementation and its start of FLEGT licensing of timber and wood product exports to the EU. Outstanding concerns include the authorities’ ability to handle the administrative load of the implementation of the Timber Legality Assurance System (VNTLAS), FLEGT licensing and other export controls.
- Viet Nam News reports: PM to chair meeting on wood exports
Prime Minister Nguyễn Xuân Phúc will chair a meeting on wood processing industry and forestry exports in HCM City on August 8. The forthcoming event will attract the participation of more than 500 enterprises operating in wood and representatives from foreign and domestic agencies. They will discuss measures for the fast and sustainable development of timber industry in the time to come. Việt Nam and the EU are completing legal procedures to approve the signing of the voluntary partnership agreement (VPA) on Forest Law Enforcement, Governance and Trade (FLEGT).By mid-July 2018, the European Commission (EC) approved the content of the agreement and agreed to submit it to the EU Council of Ministers for official signing.
- Viet Nam News reports: Firms flout obligation to protect forest
Up to 1,157 ha of forest in the Central Highlands Province of Lâm Đồng was lost in the last 10 years after companies rented forest land to carry out projects, the province’s agriculture department announced early this week. Many project investors reportedly failed to protect forests despite their obligations to manage and protect them. So far, deforestation was found at 84 forest-related projects in the province. He added that the provincial People’s Committee also decided that the companies in question such as Hoàng Thịnh Import-Export Trade and Manufacture Ltd Company must pay compensation for causing damage to forest resources. The total compensation will be over VNĐ219.4 billion (US$9.4 million).
Palm Oil
Certification
- Mongabay reports: RSPO should ban deforestation, say investors representing $6.7t in assets
More than 90 institutional investors managing more than $6.7 trillion in assets have called on the Roundtable on Sustainable Palm Oil to strengthen its standards, including by banning all forms of deforestation. At present, the RSPO allows its member companies to clear certain kinds of forest. The investors also want the RSPO to mandate that companies come up with “management plans for the conservation” of forest in their concessions. Further, the investors want the RSPO to change its policy on carbon-rich peatlands, whose clearance by plantation companies in Indonesia is a major source of greenhouse emissions. At present, the RSPO allows member companies to clear peat soil where the peat is less than 3 meters deep.
- Business Times reports: Palm oil watchdog urged to take 'giant leap' to save forests
RSPO must strengthen its standards to require all members to commit to ending deforestation - or risk becoming irrelevant, an increasing number of growers, investors and green experts say. The organisation is conducting a review of its standards and it aims to publish new guidelines in November that will cover the next five years.
Africa
- Science News reports: Extending palm oil production in Africa threatens primate conservation
Future expansion of the palm oil industry could have a dramatic impact on African primates, according to the findings of a new study led by the Joint Research Centre, the European Commission's science and knowledge service. Scientists found only a few small 'areas of compromise' in Africa with a high suitability for oil palm cultivation in terms of production potential and a low potential impact on the primate species living there. These areas totalled 0.13 million hectares (Mha), which is less than 0.005 % of the total land mass of the African continent. Even when considering all areas with at least minimum suitability to grow oil palms, just 3.3 Mha of land is available to produce the oil without endangering primate populations. This amounts to only 6.2% of the 53Mha that would be required to cope with rising palm oil demand by 2050. "One mitigation strategy could be intensifying yields through the use of high quality seed and better breeding technologies", says Ghislain Vieilledent, co-author of the study.
Ghana
- The Edge Markets reports: Ghana invited to join CPOPC against anti-palm oil campaign
The Republic of Ghana may be the next to join Malaysia and Indonesia in countering the growing negative perception towards the palm oil industry. Deputy Primary Industries Minister Shamsul Iskandar Mohd Akin told reporters that the countries are keen to cooperate in the face of the European Union's (EU) anti-palm oil campaign. "I have, on behalf of the industry, invited Ghana to join us and Indonesia, as members of the Council of Palm Oil Producing Countries (CPOPC). We have conveyed to them the need for a close-knitted cooperation in the efforts of defending the palm oil industry against several negative perceptions, especially that of the EU," he said.
Indonesia
- Reuters reports: Indonesia to make biodiesel use compulsory from September 1
Indonesia aims to make the use of biodiesel blended fuels compulsory for all vehicles and heavy machinery from Sept. 1, Renewable Energy Director General Rida Mulyana said on Wednesday. In Indonesia, the bio portion of biodiesel is made with fatty acid methyl esters (FAME) from palm oil. According to Togar Sitanggang, a senior official at the Indonesian Palm Oil Association, B20 biodiesel has been tested extensively by the Energy and Mineral Resources Ministry and the tests had found only minor differences to mineral diesel fuel in terms of material damage in engines. -
VOA News reports: Concerns Rising in ASEAN Over Borneo Fires, Haze
As ambient air pollution chokes Jakarta amid hosting the Asian Games, many in Malaysia are accusing Indonesia of being responsible for heightened levels of haze, which they say is because of fires in Kalimantan, the Indonesian part of Borneo island. According to Global Forest Watch, there were more than 17,000 fire alerts across Kalimantan in the past week, the greatest number of which were in West Kalimantan.
- The Jakarta Post reports: Palm oil producers urge govt to strengthen ISPO
The Indonesian Oil Palm Association (GAPKI) has urged the government to expand Indonesia Sustainable Palm Oil (ISPO) certification to include the derivative products of crude palm oil (CPO) in order to gain wider recognition at the global level. GAPKI deputy chairman Togar Sitanggang said recently that such a move would be welcomed as around 75 percent of Indonesia’s exports were CPO derived.
- Food Navigator reports: ‘Fabricated hysteria’ - Food firms making dubious ‘no palm oil’ claims under fire as GAR highlights sustainability gains
Palm oil sustainability practices in Indonesia are slowly reaping rewards, while manufacturers which make unjustified ‘no palm oil’ label claims are merely cashing in on ‘fabricated hysteria’, claims a senior exec at Golden Agri-Resources (GAR).
Liberia
- Daily Observer reports: ‘GVL Does Not Respect Liberian Laws’, CSO Group Claims
The Civil Society Organization on Oil Palm Working Group (CSO-OPWG) says Golden Veroleum-Liberia’s (GVL) decision to withdraw from the Roundtable on Sustainable Palm Oil (RSPO) reflects a lack of commitment to fully abide by Liberian law.: "The action of GVL might violate Article 16 of its contract with the Government of Liberia, which requires it to be in compliance with the Principles of the RSPO." In response, Elvis G. Morris, General Manager for Central Operations at GVL, said GVL did not pull out of the RSPO because they are running away, but to permit the company to solve all the issues which have been discussed, including reinforcing its community affairs department, among others.
Malaysia
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New Strait Times reports: MSPO-certified area rises to 1.017m ha
The local oil palm industry’s total planted area certified with the Malaysian Sustainable Palm Oil (MSPO) scheme stood at 1.017 million hectares as at June 30 this year and this is steadily growing, says Primary Industries and Commodities Minister Teresa Kok. This represents significant growth from 758,923ha in February. She said this boded well with the government’s target to make MSPO certification mandatory by the end of next year. - The Borneo Post reports: Establish specific mission in EU for palm oil industry
In order to find a better solution to the much-discussed palm oil issues between Malaysia and the EU, it is imperative that a specific mission to the EU be established, said Belgian Ambassador to Malaysia, Daniel Dargent. Palm oil is Malaysia’s top export to the EU, representing 49 per cent of the EU's imports from Malaysia. Last week, Primary Industries Deputy Minister Shamsul Iskandar Mohd Akin said Malaysia was open and willing to collaborate with European countries in creating greater consumer awareness on sustainable palm oil production and the health benefits of palm oil.
- New Strait Times reports: Malaysia to explore new markets aggressively for palm oil
The Primary Industries Ministry is in the midst of exploring new markets for palm oil via good connections with several nations as Malaysia is striving to tackle anti-palm campaign issues. Its minister Teresa Kok said countries such as the Philippines, Iran and Turkey as well as the West African Continent were among potential new markets on top of maintaining the existing main markets for Malaysia’s palm oil.
Soy
Brazil
- Business Green reports: Cerrado Manifesto - Investors and corporates step up calls for 'zero deforestation'
Investors managing over $2.8tr in assets join business-led initiative to tackle deforestation in Brazil's Cerrado region. A group of leading global investors including APG, Robeco, Legal and General Investment Management, and Green Century Capital Management have today issued a joint statement calling for a renewed effort to bring an end to deforestation in the threatened biome. It signals their support for the Cerrado Manifesto, which was launched last year and which has secured backing from 70 global companies, including household names such as McDonalds, Tesco, Walmart and Unilever.
- Reuters investigates: Reuters special report - Soy boom devours Brazil’s tropical savanna
Industrial farming in South America’s largest savanna has turned Brazil into an agricultural powerhouse. And it has lured producers away from the Amazon rainforest. But destruction of the so-called Cerrado biome is hastening global warming, damaging watersheds and putting wildlife at risk. -
Business Green reports: New soy financing initiative aims to beef up protection for Cerrado forests
Agri-business multinational Bunge, banking giant Santander Brasil, and environmental NGO The Nature Conservancy (TNC) have today come together to launch a major new initiative designed to tackle deforestation related to booming soy production in Brazil's Cerrado region. The organisations announced they have developed a "first-of-its-kind" financing mechanism for soy farmers in the region, which will provide them with access to loans that help them boost production without clearing additional land. Currently, the bulk of loans offered to soy farmers only extend to one year and simply cover the cost of that year's crops. As such, farmers often lack the capital required to invest in more sustainable technologies and practices that can improve long term yields without necessitating deforestation or the clearance of native vegetation.
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