EXECUTIVE SUMMARY FOREST POLICY TRADE AND FINANCE INITIATIVE REPORT | MAY 2021 ILLICIT HARVEST, COMPLICIT GOODS: THE STATE OF ILLEGAL DEFORESTATION FOR AGRICULTURE ANNEX MAY 2021 i Table of Contents Acronyms .................................................................................................................................................................................................................. ii Glossary ....................................................................................................................................................................................................................iii Annex 1 Latin America and Caribbean ..................................................................................................................................................1 Annex 2 Africa ..................................................................................................................................................................................................75 Annex 3 Asia-Pacific ............................................................................................................................... ....................................................127 ILLICIT HARVEST, COMPLICIT GOODS: ii THE STATE OF ILLEGAL DEFORESTATION FOR AGRICULTURE Acronyms AFD Agence Française de Développement (French FRC Forest Risk Commodity Development Agency) FSC Forest Stewardship Council APP Permanent Preservation Areas (Brazil) G20 Group of Twenty Finance Ministers and Central APP Asia Pulp & Paper Bank Governors from 19 countries and the European Union BFC Brazilian Forest Code GAIN Global Agricultural Information Network of USDA BPK Badan Pemeriksa Keuangan (Supreme Audit Agency of Indonesia) GELOSE Gestion Locale Sécurisée (Madagascar) BRG Badan Restorasi Gambut (Peat Restoration GHG Greenhouse gas(es) Agency, Indonesia) GLAD Global Land Analysis and Discovery Lab, BRGM Peat and Mangrove Restoration Agency University of Maryland, USA (Indonesia) GFW Global Forest Watch CAR Cadastro Ambiental Rural (Rural Environmental Registry of Brazil) Gt Gigaton CDC Group British development bank, formerly the HCS High Carbon Stock Commonwealth Development Corporation HCV High Conservation Value CITES Convention on International Trade in HS Harmonized System codes Endangered Species of Wild Fauna and Flora ha Hectare CO2 Carbon dioxide HTI Industrial Forest Plantation (Indonesia) CO2e Carbon dioxide-equivalent (all gases) IBAMA Instituto Brasileiro do Meio Ambiente e dos CONAFOR Comisión Nacional Forestal (The National Recursos Naturais Renováveis (Brazilian Institute Forestry Commission of Mexico) of Environment and Renewable Natural DETER Deforestation Detection in Real Time, an Resources) environment monitoring programme of the IBGE Instituto Brasileiro de Geografia e Estatística Government of Brazil (Brazilian Institute of Geography and Statistics) DRAU Dirección Regional Sectorial Agricultura Ucayali IDEAM Institute of Hydrology, Meteorology and (the Regional Sectoral Agriculture Directorate of Environmental Studies (Colombia) Ucayali in Peru) IMAZON Instituto do Homem e Meio Ambiente da DRC Democratic Republic of Congo Amazônia (Institute of Man and Environment of EAO Ethnic Armed Organizations (Myanmar) the Amazon in Brazil) EIA Environmental Investigation Agency ISPO Indonesian Sustainable Palm Oil ELC Economic Land Concession (Cambodia) KHG Kesatuan Hidrologis Gambut (peat hydrological units, Indonesia) EU European Union KIA Kachin Independence Army (Myanmar) EUTR European Union Timber Regulation KPK Komisi Pemberantasan Korupsi (Corruption FAO FRA Food and Agriculture Organisation of the United Eradication Commission of Indonesia) Nations — Global Forest Resources Assessment ILO C169 International Labour Organization (ILO) FCA Forest Clearance Authority (Papua New Guinea) Convention 169 FCPF Forest Carbon Partnership Facility ILUC Indirect land-use change FELDA The Federal Land Development Authority of ITTO International Tropical Timber Organisation Malaysia INPE Instituto Nacional de Pesquisas Espaciais FLEGT Forest Law Enforcement, Governance and Trade (National Institute for Space Research, Brazil) FMC Forest Management Contract (Liberia) LAC Latin America and the Caribbean FPIC Free, Prior, and Informed Consent LICADHO Cambodian League for the Promotion and Defense of Human Rights MAY 2021 iii LR Legal Reserve (Brazil) SUHAKAM Malaysian Human Rights Commission LUC Land-use change TA Timber authorities (Papua New Guinea) m3 cubic meter UNAP Unión de Nativos Ayoreo de Paraguay (The Union of Ayoreo Natives of Paraguay) MAAP The Monitoring of the Andean Amazon Project, an initiative of Amazon Conservation UNDRIP United Nations Declaration on the Rights of Indigenous Peoples MARD Ministry of Agriculture and Rural Development (Vietnam) UNODC United Nations Office on Drugs and Crime masl meters above sea level USAID United States Agency for International Development Mha Million hectares USDA United States Department of Agriculture MoEF Ministry of Environment and Forestry (Indonesia) VOI Vondron’Olona Ifotony (local community forest Mt million metric tonnes management groups, Madagascar) MTE Myanmar Timber Enterprise VPA FLEGT Voluntary Partnership Agreement NCR Native Customary Rights (Malaysia) WB World Bank NDPE No Deforestation, No Peat, No Exploitation WRI World Resources Institute NTFP Non-Timber Forest Products WWF World Wildlife Fund OEC Observatory of Economic Complexity PA Protected Area PDR Lao People’s Democratic Republic (Laos) PNCAT Patrimonio Natural y Cultural Ayoreo Totobiegosode (Natural and Cultural Patrimony of the Ayoreo Totobiegosode, Paraguay) PPCDAm Plan for the Prevention and Control of Deforestation in the Legal Amazon (Brazil) PRF Permanent Reserve Forests (Malaysia) PRODES Programa de Cálculo do Desflorestamento da Amazônia (deforestation monitoring service, Brazil) PNG Papua New Guinea RAPP Riau Andalan Pulp and Paper, a subsidiary of the Royal Golden Eagle group (Indonesia) REDD+ Reducing Emissions from Deforestation and forest Degradation plus the sustainable management of forests RFD Royal Forest Department of Thailand RPEG Rencana Pemulihan Ekosistem Gambut (Peat Ecosystem Restoration Plans, Indonesia) RSPO Roundtable on Sustainable Palm Oil SABL Special-purpose Agricultural and Business Leases (Papua New Guinea) SBY Indonesia’s former-President, Susilo Bambang Yudhoyono SEEG Greenhouse Gas Emissions and Removal Estimation System (Brazil) SocFin Société Financière des Caoutchoucs (Sierra Leone) ILLICIT HARVEST, COMPLICIT GOODS: iv THE STATE OF ILLEGAL DEFORESTATION FOR AGRICULTURE Glossary >50% canopy: Tree cover of 51 percent or more is the threshold used in this report to define forest areas to keep a focus on well forested landscapes that provide important ecosystem services locally (e.g., pollination, maintaining water cycles, etc.) and globally (especially as carbon sinks helping mitigate climate change). >50% tree cover loss: The loss of more than 50 percent of forest canopy. Agribusiness: Large-scale agricultural businesses and their supply chains. Agro-commodities: Commercially produced agricultural commodities, including crops, livestock, and products from tree plantations. Agro-conversion: Loss of forest driven by commercial agriculture. Amazonia: Brazil’s Legal Amazon (see below). Biodiversity hotspot: Region meeting two criteria of containing 1) at least 1,500 endemic vascular plants and 2) 30 percent or less of its original natural vegetation. Thirty-six biologically rich, threatened regions are globally recognized as biodiversity hotspots and comprise 2.4 percent of the Earth’s surface (Conservation International 2020). Brazil’s environmental debt: Areas defined under the Brazil 1965 Forest Code as Legal Reserve and Riparian Preservation Areas that were deforested illegally before 2008 and would have required restoration at the landowner’s expense (Soares-Filho et al. 2014). Caatinga: Semi-arid biome in Northeastern Brazil, bordered by the Amazon, Cerrado, and Atlantic Forest biomes. Central Africa: Countries of Angola, Burundi, Cameroon, the Central African Republic, Chad, Democratic Republic of Congo (DRC), Equatorial Guinea, Gabon, Rwanda, and the Republic of Congo. Cerrado: Wooded savanna covering 12 vegetation types in Central Brazil and parts of Bolivia and Paraguay. It borders the Amazon, Caatinga, Atlantic Forest, and Pantanal biomes. Chaco: Sparsely populated, hot, and semi-arid lowland forest ecosystem of the Río de la Plata basin, divided among eastern Bolivia, Paraguay, northern Argentina, and a portion of the Brazilian states of Mato Grosso and Mato Grosso do Sul. Second largest forest system in South America, after the Amazon. Chiquitano: Dry forests of Bolivia and Brazil with trees that lose their leaves during the dry season and are generally resistant to flooding and fire. Congo Basin/Congo River Basin: Countries of Cameroon, the Central African Republic, the Democratic Republic of Congo (DRC), Equatorial Guinea, Gabon, and the Republic of Congo. CO2e emissions: This report quantifies the amount of greenhouse gas emissions (expressed in mega-tonnes (Mt) of carbon dioxide equivalent emissions) caused by tree cover loss, as reported by Global Forest Watch (2020, using methodology from Harris et al. 2021). Commercial agriculture: Large- or small-scale, including crops, pasture (mainly cattle), and monoculture tree plantations. Excludes subsistence farming. MAY 2021 v Community forestry: Forest operations