EU FLEGT Action Plan Evaluation (I) Overview and (Ii) Relationship Between FLEGT Action Plan and EC Regulation 995/2010

EU FLEGT Action Plan Evaluation (i) Overview and (ii) relationship between FLEGT Action Plan and EC Regulation 995/2010

EUTR / Lacey Enforcement Group meeting, Barcelona

Name James Hewitt Date 14th-16th April 2015 S-FOR-S Contractual framework

 EU/EC level: coordinated by DG Devco Requested and is funding the evaluation

 Contracting party: EFI FLEGT Facility, through contracting framework

 Contractor: TEREA Partnership with S-FOR-S and TOPPERSPECTIVE, a team of 8 consultants . EFI procurement reference number F-2014-8.2-24 . Title: ‘Independent Evaluation of the Implementation of the EU Action Plan on Forest Law Enforcement Governance and Trade (FLEGT) 2003-2014’

 Governance: ‘FAPE’ Steering Committee DG Devco (Chair), other DGs/EC (DG ENV, GROW, SG), EU MS, EFI

Scope of the Evaluation

FLEGT Action Plan implementation 2003 – 2015:

The AP and its seven pillars I. Support to Producer Countries II. Licensing scheme/Multilateral frameworks III. Public procurement IV. Private sector V. Finance & investment VI. Use of existing laws VII. Conflict timber

The AP subsequent regulations: . Licensing scheme in VPA countries, . Timber Regulation (EUTR)

3 Country selection Country visits VPAs concluded: Ghana, Cameroon, Indonesia VPAs in negotiation: Ivory Coast, Guyana, Vietnam Non VPAs: Colombia, Bosnia-Herzegovina Consumer country: China EU MS: UK, Germany, Italy, Finland, Romania, Netherlands, France Teleconferences Producers: Brazil, Chile, Russia, Canada Consumers: India, Australia, Japan and USA

4 Overall workplan / Outputs / Update

EU FLEGT Action Plan Evaluation - Overall work plan Months Phases Nov Dec Jan Fev March Apr May June July Aug Sept Oct Nov Inception phase Desk research phase

VPA country visits Field phase Other country visits EU MS country visits Synthesis and reporting phase

SC meetings, Events Steering Committee EU FLEGT Week Chatham House

Deliverables Nov Dec Jan Fev March Apr May June July Aug Sept Oct Nov Inception Report Research phase Report VPA country Aide Memoires Other prod./cons. country AMs EU MS country Aide Memoires Draft Final Report Final Report Interim progress report

5 Estimates of trade in timber sector products which might be “illegal” (2013)

Russia to China: three times larger than shown

both to China

Minimum shown: 200,000 cubic metres. RWE volume Arrow width directly proportional Source: based on official trade statistics of to estimated RWE volume: “VPA” countries or those of their counterparts – multiplied by a notional Represents 200,000 m3 RWE percentage reflecting their potential illegality Represents 1 million m3 RWE as per Chatham House evaluation (2014)

6 Estimates of trade in paper sector products which might be “illegal” (2013)

7 Estimates of world imports & exports of wood-based products which might be illegal

100 30

90 25 80

70 20 60 Imports by the 50 15

40 given country Import value Import

10 (million cubic metres) cubic (million

30 nominal) cf, billion, (US$ Estimated RWEvolume Estimated 20 5 10

0 0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

China EU-28 India Japan Middle East SouthKorea Taiwan USA Vietnam Others China EU-28 India Japan Middle East 100SouthKorea Taiwan USA Vietnam Others 25 90

80 20

60 15

50 Exports from the

40 10 Export value Export given country

(million cubic metres) cubic (million 30

(US$ billion, fob, nominal) fob, billion, (US$ Estimated RWEvolume Estimated 20 5

0 0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Brazil China Indonesia Malaysia Myanmar PNG Russia SolomonIslands Vietnam Others Brazil China Indonesia Malaysia Myanmar PNG Russia SolomonIslands Vietnam Others

8 China and EU’s imports of timber from the Congo Basin and western Africa

800 Logs Sawn wood Logs Sawn wood Logs Sawn wood 500 700 100 600 400 80 500 300 60 400

200 300

during year to ("yt") date shown date ("yt") to year during

(thousand cubic metres) cubic (thousand during year to ("yt") date shown date ("yt") to year during

100 shown date ("yt") to year during 200

(thousand cubic metres) cubic (thousand 20 metres) cubic (thousand 100 0

yt 31 12 yt 2011 12 31 yt 2012 03 31 yt 2012 06 30 yt 2012 09 30 yt 2012 12 31 yt 2013 03 31 yt 2013 06 30 yt 2013 09 30 yt 2013 12 31 yt 2014 03 31 yt 2014 06 30 yt 2014 09 30 yt 2014 12 31 yt 2011 12 31 yt 2012 03 31 yt 2012 06 30 yt 2012 09 30 yt 2012 12 31 yt 2013 03 31 yt 2013 06 30 yt 2013 09 30 yt 2013 12 31 yt 2014 03 31 yt 2014 06 30 yt 2014 09 30 yt 2014 12 31

Volume Volume 0 Volume yt 31 12 yt 2011 12 31 yt 2012 03 31 yt 2012 06 30 yt 2012 09 30 yt 2012 12 31 yt 2013 03 31 yt 2013 06 30 yt 2013 09 30 yt 2013 12 31 yt 2014 03 31 yt 2014 06 30 yt 2014 09 30 yt 2014 12 31 yt 2011 12 31 yt 2012 03 31 yt 2012 06 30 yt 2012 09 30 yt 2012 12 31 yt 2013 03 31 yt 2013 06 30 yt 2013 09 30 yt 2013 12 31 yt 2014 03 31 yt 2014 06 30 yt 2014 09 30 yt 2014 12 31 0

Belgium France Italy Netherlands Spain UK Other EU27 China Belgium France Italy Spain Other EU27 China Belgium France Other EU27 China Cameroon Central African Republic Republic of Congo

350 Logs Sawn wood Logs Sawn wood Veneer Plywood 160 Logs Sawn wood 500 300 140 250 120 400 100 200 300 80 150 60 200

100

during year to ("yt") date shown date ("yt") to year during

during year to ("yt") date shown date ("yt") to year during during year to ("yt") date shown date ("yt") to year during

(thousand cubic metres) cubic (thousand

(thousand cubic metres) cubic (thousand (thousand cubic metres) cubic (thousand 100

20 50

Volume Volume

0 Volume yt 31 12 yt 2011 12 31 yt 2012 03 31 yt 2012 06 30 yt 2012 09 30 yt 2012 12 31 yt 2013 03 31 yt 2013 06 30 yt 2013 09 30 yt 2013 12 31 yt 2014 03 31 yt 2014 06 30 yt 2014 09 30 yt 2014 12 31 yt 2011 12 31 yt 2012 03 31 yt 2012 06 30 yt 2012 09 30 yt 2012 12 31 yt 2013 03 31 yt 2013 06 30 yt 2013 09 30 yt 2013 12 31 yt 2014 03 31 yt 2014 06 30 yt 2014 09 30 yt 2014 12 31 0 0 yt 2011 12 31 yt 2012 03 31 yt 2012 06 30 yt 2012 09 30 yt 2012 12 31 yt 2013 03 31 yt 2013 06 30 yt 2013 09 30 yt 2013 12 31 yt 2014 03 31 yt 2014 06 30 yt 2014 09 30 yt 2014 12 31 yt 2011 12 31 yt 2012 03 31 yt 2012 06 30 yt 2012 09 30 yt 2012 12 31 yt 2013 03 31 yt 2013 06 30 yt 2013 09 30 yt 2013 12 31 yt 2014 03 31 yt 2014 06 30 yt 2014 09 30 yt 2014 12 31 yt 2011 12 31 yt 2012 03 31 yt 2012 06 30 yt 2012 09 30 yt 2012 12 31 yt 2013 03 31 yt 2013 06 30 yt 2013 09 30 yt 2013 12 31 yt 2014 03 31 yt 2014 06 30 yt 2014 09 30 yt 2014 12 31 yt 2011 12 31 yt 2012 03 31 yt 2012 06 30 yt 2012 09 30 yt 2012 12 31 yt 2013 03 31 yt 2013 06 30 yt 2013 09 30 yt 2013 12 31 yt 2014 03 31 yt 2014 06 30 yt 2014 09 30 yt 2014 12 31

Belgium France Netherlands Portugal Spain Other EU27 China EU-27 China Belgium France Italy Netherlands Other EU27 China Dem. Rep. of Congo Equatorial Guinea Gabon

Logs Logs Logs 250 Sawn wood 200 Sawn wood 200 Sawn wood

200 150 150

150 100 100 100

during year to ("yt") date shown date ("yt") to year during 50

during year to ("yt") date shown date ("yt") to year during shown date ("yt") to year during (thousand cubic metres) cubic (thousand

50 (thousand cubic metres) cubic (thousand (thousand cubic metres) cubic (thousand 50 0

Volume Volume Volume 0 0 yt 2011 12 31 yt 2012 03 31 yt 2012 06 30 yt 2012 09 30 yt 2012 12 31 yt 2013 03 31 yt 2013 06 30 yt 2013 09 30 yt 2013 12 31 yt 2014 03 31 yt 2014 06 30 yt 2014 09 30 yt 2014 12 31 yt 2011 12 31 yt 2012 03 31 yt 2012 06 30 yt 2012 09 30 yt 2012 12 31 yt 2013 03 31 yt 2013 06 30 yt 2013 09 30 yt 2013 12 31 yt 2014 03 31 yt 2014 06 30 yt 2014 09 30 yt 2014 12 31

Belgium France Italy Netherlands France Germany UK Other EU27 China Spain UK Other EU27 China France Other EU27 China Ghana Ivory Coast Liberia

9 EU imports of wood-based products from China and Vietnam

1.4 180 250 160 1.2 140 200 1.0 120 150 0.8 100 80 0.6 100 60

0.4 tonnes) (thousand

during year to ("yt") date shown date ("yt") to year during

during year to ("yt") date shown date ("yt") to year during metres) cubic (million

(thousand cubic metres) cubic (thousand 50

0.2 20 0

Volume 0.0

Belgium France Germany Italy Belgium France Germany Netherlands UK Other EU27 Belgium France Germany Italy Netherlands UK Other EU27 Netherlands Romania UK Other EU27 Non-coniferous plywood Non-coniferous mouldings Joinery

900 900 350 800 800 300 700 700 250 600 600 500 500 200 400 400 150 300 300

100

(thousand tonnes) (thousand tonnes) (thousand

(thousand tonnes) (thousand during year to ("yt") date shown date ("yt") to year during

during year to ("yt") date shown date ("yt") to year during 200

during year to ("yt") date shown date ("yt") to year during

200 50 100 100 0 0

0 yt 2011 12 31 yt 2012 01 31 yt 2012 02 29 yt 2012 03 31 yt 2012 04 30 yt 2012 05 31 yt 2012 06 30 yt 2012 07 31 yt 2012 08 31 yt 2012 09 30 yt 2012 10 31 yt 2012 11 30 yt 2012 12 31 yt 2013 01 31 yt 2013 02 28 yt 2013 03 31 yt 2013 04 30 yt 2013 05 31 yt 2013 06 30 yt 2013 07 31 yt 2013 08 31 yt 2013 09 30 yt 2013 10 31 yt 2013 11 30 yt 2013 12 31 yt 2014 01 31 yt 2014 02 28 yt 2014 03 31 yt 2014 04 30 yt 2014 05 31 yt 2014 06 30 yt 2014 07 31 yt 2014 08 31 yt 2014 09 30 yt 2014 10 31 yt 2014 11 30 yt 2014 12 31 yt 2011 12 31 yt 2012 01 31 yt 2012 02 29 yt 2012 03 31 yt 2012 04 30 yt 2012 05 31 yt 2012 06 30 yt 2012 07 31 yt 2012 08 31 yt 2012 09 30 yt 2012 10 31 yt 2012 11 30 yt 2012 12 31 yt 2013 01 31 yt 2013 02 28 yt 2013 03 31 yt 2013 04 30 yt 2013 05 31 yt 2013 06 30 yt 2013 07 31 yt 2013 08 31 yt 2013 09 30 yt 2013 10 31 yt 2013 11 30 yt 2013 12 31 yt 2014 01 31 yt 2014 02 28 yt 2014 03 31 yt 2014 04 30 yt 2014 05 31 yt 2014 06 30 yt 2014 07 31 yt 2014 08 31 yt 2014 09 30 yt 2014 10 31 yt 2014 11 30 yt 2014 12 31

Weight

Weight Weight yt 31 12 yt 2011 12 31 yt 2012 01 31 yt 2012 02 29 yt 2012 03 31 yt 2012 04 30 yt 2012 05 31 yt 2012 06 30 yt 2012 07 31 yt 2012 08 31 yt 2012 09 30 yt 2012 10 31 yt 2012 11 30 yt 2012 12 31 yt 2013 01 31 yt 2013 02 28 yt 2013 03 31 yt 2013 04 30 yt 2013 05 31 yt 2013 06 30 yt 2013 07 31 yt 2013 08 31 yt 2013 09 30 yt 2013 10 31 yt 2013 11 30 yt 2013 12 31 yt 2014 01 31 yt 2014 02 28 yt 2014 03 31 yt 2014 04 30 yt 2014 05 31 yt 2014 06 30 yt 2014 07 31 yt 2014 08 31 yt 2014 09 30 yt 2014 10 31 yt 2014 11 30 yt 2014 12 31 Weight

Belgium France Germany Italy Belgium France Germany Greece Italy Belgium France Germany Italy Netherlands Spain UK Other EU27 Netherlands Poland Spain UK Other EU27 Netherlands Spain UK Other EU27 Furniture excluding seats Paper Printed paper

70 180 60 60 160 50 140 50 120 40 40 100 30 30 80

(thousand tonnes) 20

60 20 during year to ("yt") date shown

(thousand tonnes) (thousand tonnes) during year to ("yt") date shown date ("yt") to year during during year to ("yt") date shown date ("yt") to year during 10

40 10

20 Weight 0

0 Weight 0 Weight

yt 31 12 yt 2011 12 31 yt 2012 01 31 yt 2012 02 29 yt 2012 03 31 yt 2012 04 30 yt 2012 05 31 yt 2012 06 30 yt 2012 07 31 yt 2012 08 31 yt 2012 09 30 yt 2012 10 31 yt 2012 11 30 yt 2012 12 31 yt 2013 01 31 yt 2013 02 28 yt 2013 03 31 yt 2013 04 30 yt 2013 05 31 yt 2013 06 30 yt 2013 07 31 yt 2013 08 31 yt 2013 09 30 yt 2013 10 31 yt 2013 11 30 yt 2013 12 31 yt 2014 01 31 yt 2014 02 28 yt 2014 03 31 yt 2014 04 30 yt 2014 05 31 yt 2014 06 30 yt 2014 07 31 yt 2014 08 31 yt 2014 09 30 yt 2014 10 31 yt 2014 11 30 yt 2011 12 31 yt 2012 01 31 yt 2012 02 29 yt 2012 03 31 yt 2012 04 30 yt 2012 05 31 yt 2012 06 30 yt 2012 07 31 yt 2012 08 31 yt 2012 09 30 yt 2012 10 31 yt 2012 11 30 yt 2012 12 31 yt 2013 01 31 yt 2013 02 28 yt 2013 03 31 yt 2013 04 30 yt 2013 05 31 yt 2013 06 30 yt 2013 07 31 yt 2013 08 31 yt 2013 09 30 yt 2013 10 31 yt 2013 11 30 yt 2013 12 31 yt 2014 01 31 yt 2014 02 28 yt 2014 03 31 yt 2014 04 30 yt 2014 05 31 yt 2014 06 30 yt 2014 07 31 yt 2014 08 31 yt 2014 09 30 yt 2014 10 31 yt 2014 11 30

Belgium Denmark France Germany Italy Netherlands Spain Sweden UK Other EU27 Belgium France Germany Italy Netherlands UK Other EU27 Belgium France Germany Netherlands Sweden UK Other EU27 Furniture excluding seats Seats excluding upholstered Seats excluding upholstered

10 China and Vietnam’s exports of wood-based products

16 60

14 50 12 40 10

8 30

20 (million cubic metres) cubic (million

Estimated RWEvolume Estimated 4 10 2

0 0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Timber sector Paper sector Timber sector Paper sector Vietnam China China EU Japan USA Rest of world China EU Japan USA Rest of world

11 Questions to explore

1) To what extent - and how - have Competent Authorities identified the nature and extent of the their Member State’s imports of illegal wood-based products?

2) What are the key factors which have affected the pace at which Competent Authorities have (i) prepared for Regulation 995/2010 since 2010 and (ii) tried to enforce it since 03 03 2013? 3) What additional support do Competent Authorities need? 4) To what extent has the EC tried to co-ordinate implementation of Regulation 995/2010 – to a) accelerate VPAs, b) address indirect trade, and c) establish best practice?

5) In order to maximise leverage, particularly in the absence of convictions (for insufficient due diligence or placing illegal products on the market), do Competent Authorities and/or the EC have a strategy to communicate their progress under Regulation 995/2010?

6) To what extent has the EC tried to learn from the experience of Competent Authorities? 7) How is the performance of Competent Authorities being appraised?

12 For further information about trade in “illegal” wood-based products, see http://www.globaltimber.org.uk/info.htm http://www.duediligencetimber.eu

For a library of estimates of trade in “illegal” wood-based products and monthly data for EU member states’ (& China’s) imports of wood-based products, see: http://www.duediligencetimber.eu/data.htm

For updates and clarifications, contact James Hewitt [email protected]