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Feasibility Study on Options to Step up EU Action Against Deforestation

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Feasibility Study on Options to Step up EU Action Against Deforestation Feasibility study on options to step up EU action against deforestation PART I: Background analysis: scale and trends of global deforestation and assessment of EU contribution and PART II: A potential EU initiative on deforestation: Possible interventions FINAL REPORT Written by COWI A/S January – 2018 Feasibility study on options to step up EU action against de- forestation PART I BACKGROUND ANALYSIS AND SETTING THE SCENE: SCALE AND TRENDS OF GLOBAL DEFORESTATION AND ASSESSMENT OF EU CONTRIBUTION FINAL REPORT Feasibility study on options to step up EU action against deforestation EUROPE DIRECT is a service to help you find answers to your questions about the European Union Freephone number (*): 00 800 6 7 8 9 10 11 (*) The information given is free, as are most calls (though some operators, phone boxes or hotels may charge you) LEGAL NOTICE The information and views set out in this study are those of the author(s) and do not necessarily reflect the official opinion of the Commission. The Commission does not guarantee the accuracy of the data included in this study. Neither the Commission nor any person acting on the Commission's behalf may be held respon- sible for the use which may be made of the information contained therein. More information on the European Union is available on the Internet (http://www.europa.eu). Luxembourg: Publications Office of the European Union, 2018 PDF ISBN 978-92-79-80227-0 doi:10.2779/97793 KH-04-18-199-EN-N © European Union, 2018 Feasibility study on options to step up EU action against deforestation – PART I ABSTRACT This study explores the feasibility of options to step up EU action against deforesta- tion. Its results are presented in two reports: 'Part I: Background analysis and setting the scene: scale and trends of global deforestation and assessment of EU contribution' and 'Part II: A potential EU initiative on deforestation: possible interventions'. Part I analyses recent global and regional trends in deforestation and the linkages with the production and consumption of twelve key Forest Risk Commodities, with a focus on the role of the EU and its impacts. Further, the study reviews relevant EU policies, leg- islation and initiatives and ongoing international and regional efforts by private sector, governments and civil society. Building on the analytical insights gained in Part I, the Part II report makes suggestions on the framing of a possible EU initiative to tackle deforestation and its root causes and drivers. This includes specific objectives and a range of potential EU interventions tackling different dimension of the problem (supply and demand side drivers, as well as the role of finance & investments). All identified interventions are assessed against a shared set of assessment criteria: feasibility and effectiveness; political acceptance, technical complexity; and administrative costs. Given the complexity of the problem, any potential EU initiative should consider a package of interventions which addresses the supply, demand and finance dimensions, building on and reinforcing existing EU action as well as government and private sec- tor commitments on zero deforestation and other relevant international initiatives. January 2018 5 Feasibility study on options to step up EU action against deforestation – PART I Contents Abstract ........................................................................................................... 5 Abbreviations and definitions .............................................................................. 7 Executive summary ..........................................................................................10 1 Introduction .........................................................................................21 1.1 Study objective ....................................................................................21 1.2 Study outputs ......................................................................................21 1.3 Structure of this report ..........................................................................21 2 Scope and methodology ........................................................................23 2.1 Terminological considerations .................................................................23 2.2 Methodological framework .....................................................................24 3 Situation analysis, step 1: Deforestation trends and geographies ................32 3.1 Past trends in deforestation ...................................................................32 4 Situation analysis, step 2: Production, Trade and EU imports of FRCs ...................................................................................................41 4.1 Forest risk commodities of EU relevance ..................................................41 4.2 Trade in risk commodities ......................................................................44 4.3 Risk Commodities and producers relevant to EU consumption ....................78 5 Forward analysis: Projections for Forest Risk Commodities .........................82 5.1 Agriculture products ..............................................................................82 5.2 Forest products ....................................................................................92 5.3 Projection of tropical deforestation ..........................................................98 5.4 Projection of the EU embodied deforestation baseline up to 2030 .............. 100 6 Overview of current initiatives to address deforestaion ............................ 104 6.1 Initiatives set in relation to drivers ........................................................ 104 6.2 Current EU action ............................................................................... 106 6.3 REDD+ .............................................................................................. 121 6.4 Analysis of private sector initiatives ...................................................... 123 6.5 Transparency in FRC trade ................................................................... 129 7 Literature list ..................................................................................... 132 Appendices Appendix A overview of initiatives January 2018 6 Feasibility study on options to step up EU action against deforestation – PART I ABBREVIATIONS AND DEFINITIONS Abbreviations ASC Aquaculture Stewardship Council BCM Bilateral Coordination Mechanism CAP Common Agricultural Policy CBD United Nations Convention on Biological Diversity CIFOR Center for International Forestry Research CITES UN Convention on International Trade in Endangered Species of Wild Fauna and Flora CoC Chain-of-Custody COM European Commission COP Conference of the Parties (to UNFCCC) CSR Corporate Social Responsibility DCI Development Cooperation Instrument DG Directorate-General EU European Union EUTR EU Timber Regulation EU-ETS European Union Emission Trading Scheme FAO United Nations Food and Agriculture Organization FAOSTAT FAO Statistical Database FLEGT Forest Law Enforcement, Governance, and Trade FLEGT-AP FLEGT-Action Plan FRC Forest Risk Commodities FSC Forest Stewardship Council FTA Foreign Trade Agreement GEF Global Environment Facility GFRA FAO Global Forest Resource Assessment GHG Greenhouse Gases GPGC Global Public Goods and Challenges Programme GPP Green Public Procurement GTPS Brazilian Roundtable on Sustainable Livestock HCV High Conservation Value HS WTO Harmonised System IGC International Grains Council ISCC International Sustainability & Carbon Certification IFI International Financing Institution ILUC Indirect Land Use Change IOM International Organization for Migration January 2018 7 Feasibility study on options to step up EU action against deforestation – PART I IPCC Intergovernmental Panel on Climate Change ITTO International Tropical Timber Organization IUU Illegal, Unreported and Unregulated Fishing JA-ZDC Jurisdictional Approach to Zero Deforestation Commodities LA Latin America LCA Life Cycle Analysis LUC Land Use Change LULUCF Land Use, Land Use Change, and Forestry Mha Million hectares MIP Multiannual Indicative Programme MRV Monitoring, Reporting and Verification MS Member State Mt Megatonnes (1 million metric tonnes) NGO Non-Governmental Organisation NYDF New York Declaration on Forests OEC The Observatory of Economic Complexity OECD Organisation for Economic Cooperation and Development PEFC Programme for the Endorsement of Forest Certification RDP Rural Development Programme RE Renewable Energy RED Renewable Energy Directive REDD+ Reduced Emissions from Deforestation and forest Degradation, and fostering con- servation, sustainable management of forests, and enhancement of forest carbon stocks. RSB Roundtable on Sustainable Biomaterials RSPO Roundtable on Sustainable Palm Oil RTRS Round Table on Responsible Soy SDG Sustainable Development Goals SEA South East Asia SIA Sustainable Impact Assessment SITC Standard International Trade Classification SSA Sub-Saharan Africa TRASE Transparency for Sustainable Economies UNCOMTRADE The United Nations Commodity Trade Statistics Database UNEP The United Nations Environment Programme UNFCCC The United Nations Framework Convention on Climate Change UNGP UN Guiding Principles on Business and Human Rights USDA United States Department of Agriculture VPA Voluntary Partnership Agreement WTO World Trade Organisation January 2018 8 Feasibility study on options to step up EU action against deforestation – PART I Definitions Deforestation The
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