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Footprints in the Forest

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Footprints in the Forest Footprints in the forest Current practice and future challenges in forest certification Footprints in the forest Current practice and future challenges in forest certification 1 FERN would like to thank the following organisations and individuals for providing valuable comments on or contributions to this report. None of these organisations or individuals are, however, responsible in any way for the analysis or opinions expressed in this report: American Forest & Paper Association, American Lands Alliance, Australian Forestry Standard Ltd, Canadian Standards Association, Friends of the Earth Chile, Forest Stewardship Council, IDEAL Malaysia, Malaysian Timber Certification Council, Programme for the Endorsement of Forest Certification Schemes, Sierra Club Canada, Taiga Consulting Sweden. Thank you, also, to the following individuals: Tim Cadman, Mike Garforth, Celia Graham, Kate Heaton NRDC, Sue Hulme, Leontien Krul, Chris Lang, Nina Grieshammer, Elisa Peter and Cristina Timmer for providing valuable contributions to, or comments on the report. FERN; 1C Fosseway Business Centre; Moreton in Marsh; Gloucestershire GL56 9NQ; UK www.fern.org Author: Saskia Ozinga, with the support of Leontien Krul Editor: Eleanor Brunnen Designer: Daan van Beek, Utrecht, the Netherlands Printed on recycled paper by Drukkerij Zuidam & Uithof, Utrecht, the Netherlands Cover pictures: The pristine forests of Perak, Malaysia (photo Carol Young); Lycopodium spec. (photo Jonas Rudberg); Penola Forest (photo Online Edition Australian Science and Technology Heritage Centre and Bureau of Meteorology 2001); Clearcutting and conversion of native forests to plantations, Cumberland Plateau, Tennessee (photo Southwings Flight Survey); FSC Brasil, trees are numbered (photo Jose Paulo Genari Tezza); Lower Eel clearcuts on Pacific Lumber Company Land (photo Traci Thiele); Women going home from collecting bamboo from forests in Kg. Gerachi Jaya, Selangor, Malaysia (photo Carol Young) FERN promotes the conservation and sustainable use of forests, and respect for the rights of forest peoples in the policies and practices of the European Union. © February 2004 2 Contents Foreword 5 Eight Forest Certification Case Studies 41 Acronyms 7 Canadian Standards Association Standard (CSA) 42 1 The basics to understand the debate 9 1 History and characteristics 2 Quality of the standard The main elements of a certification scheme 9 3 Standard-setting procedures 4 Certification process Why all schemes appear the same but are not 9 5 Transparency It is all about the standards 10 6 Label protection and chain of custody Conclusion 11 Forest Stewardship Council (FSC) 46 1 History and characteristics 2 Quality of the standard 2 Forestry is not a technical matter 13 3 Standard-setting procedures 4 Certification process The need for a credible and balanced 5 Transparency participation of all stakeholders 13 6 Label protection and chain of custody Conclusion 14 Programme for the Endorsement of Forest Certification Schemes (PEFC) 50 3 Internationally agreed norms for 1 History and characteristics 2 Quality of the standard certification schemes 15 3 Standard-setting procedures 4 Certification process Why are these not being followed? 15 5 Transparency Performance on the ground 15 6 Label protection and chain of custody Transparency, participation and access 15 Sustainable Forestry and Initiative (SFI) 54 Conclusion 17 1 History and characteristics 2 Quality of the standard 3 Standard-setting procedures 4 Certification process 4 Assessment of eight different schemes 19 5 Transparency Summary of findings 19 6 Label protection and chain of custody Canadian Standard’s Association (CSA) 20 The Australian Forestry Standard (AFS) 58 Forest Stewardship Council (FSC) 21 1 History and characteristics 2 Quality of the standard Programme for the Endorsement of Forest 3 Standard-setting procedures 4 Certification process Certification (PEFC), formerly the Pan 5 Transparency European Forest Certification scheme 22 6 Label protection and chain of custody Sustainable Forestry Initiative (SFI) 23 Sistema Brazileiro de Certificação Florestal (CERFLOR) 62 Australian Forestry Standard (AFS) 24 1 History and characteristics 2 Quality of the standard Sistema Brazileiro de Certificação Florestal 3 Standard-setting procedures 4 Certification process (CERFLOR) 25 5 Transparency Certificación Forestal (Certfor) 26 6 Label protection and chain of custody Malaysian Timber Certification Council (MTCC) 26 Certificación Forestal en Chile (Certfor) 65 Comparison 28 1 History and characteristics 2 Quality of the standard 3 Standards setting procedures 4 Certification process 5 Is certification possible under WTO rules? 31 5 Transparency Conclusion 32 6 Label protection and chain of custody Malaysian Timber Certification Council (MTCC) 69 6 Relevant developments in the debate 33 1 History and characteristics 2 Quality of the standard Mutual recognition 33 3 Standard-setting procedures 4 Certification process Step-wise approach 33 5 Transparency Illegal logging 34 6 Label protection and chain of custody Endnotes 74 7 Executive summary 37 3 4 Footprints in the forest Foreword Foreword Forest certification is at a crossroads. Awarding a seal of approval to forestry operations that implement good forest management practices is facing challenges that were not thought of when the concept was conceived ten years ago. Today, however, these challenges threaten to undermine the credibility of certification as a tool for raising the standard of forest management. When the idea of certification was conceived, many environmental NGOs and some social NGOs hoped that certification would improve forest management practices. Some also hoped it would contribute to improving workers’ conditions and solving the land rights problems that are so prevalent in many countries in the South and North. Today, it may be too early to be sure of the impacts of forest certification, as the concept is still evolving, but a few conclusions can be drawn from the evidence that is available. Certification has led to an increase in demand for timber products from well-managed sources from retailers and consumers. Certification has slightly improved forest management practices mainly in the North, and working conditions mainly in the South. Certification has also highlighted the land rights problems, but not contributed to solving them. Finally, certification has increased understanding of what constitutes good forest management – a procedure that needs to be developed jointly by economic, social and environmental interest groups. But there are down sides. Certification has, unfortunately, given its ‘seal of approval’ to many companies and forests that have not earned it. As this report shows, the majority of existing certification schemes certify the current status quo of forest management, which in most cases does not earn the label ‘from well managed forests’. In the worst cases, timber certified as ‘coming from well managed forests’ originates from old growth forests, forests under dispute over land rights, or forests that have been converted to GMO tree plantations. The fact that certified timber can originate from these types of forests has clearly devalued the concept of certification. Furthermore, in regions where large areas of forests have been certified, and large volumes of certified products are on the shelves, such as in Europe, certification is often perceived as a solution to the forest crisis. Such perception makes it more difficult for NGOs to create awareness about the many problems that still exist in forest management. Issues such as reform of forest laws, controlling trade and investment flows and reduction of consumption of forest products don’t always get the attention they need. FERN believes that certification can only have a positive impact at grass roots level, if it can harness the market power of consumers – and their concerns about forests – to change the balance of power. If certification schemes become too closely linked to the forestry industry, there is little chance they will contribute to a better balance of power. Unfortunately, as this report shows, in most cases forest certification schemes are currently too closely linked to the forestry sector, and are therefore reinforcing the status quo of Canada forest management rather than improving it. There is widespread failure to recognise the rights of forest-dependent people to participate in decision-making. Photo Ian McAllister 5 Footprints in the forest Foreword The intellectual argument for certification has been won and the concept of certification has entered the mainstream. Yet, a serious problem remains, namely, the translation of the concept of certification into real improvements. The task, therefore, is to uphold the integrity and credibility of forest certification in the face of intense market pressure for certified products. To rescue the credibility of certification and to solve the world’s forest crisis, it is time to re- assess. The demand for certified wood, created by buyers-groups, the World Bank, and others cannot be met in the short term. There is not enough well managed forest on the planet. As credible certification schemes cannot meet this demand in the short term, simply satisfying this demand could enforce certification schemes with low or no minimum standards. We will not solve, but rather aggravate the forest crisis if we continue racing to meet this demand through certification of near status quo forest management practices. This report
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