Forest-based solutions in the tropics
for combating climate change andachieving SDGs
- The Case for Green Supply Chains Gerhard Dieterle
Executive Director ITTO

ITTO/FFPRI side-event at
UNFCCC COP25
11 December 2019, 11:30–13:00 hrs, Madrid, Spain

INTERNATIONAL TROPICAL TIMBER ORGANIZATION (ITTO)

Africa: hungry for food, fuel, fiberand wood
Global population by region
2017

2100 (projected)

Global population
7.55 billion

Global population
11.18 billion

Asia
4 504 million (59.66%)

Africa1 256 million (16.64%)

Asia
4 780 million (42.74%)

Africa4 468 million (39.95%)

Europe742 million (9.83%)

Latin America /Caribbean
646 million (8.55%)

Europe653 million (5.84%)

Latin America /Caribbean
712 million (6.37%)

North America
361 million (4.78 %)Oceania
41 million (0.54 %)North America
499 million (4.46%)

Oceania
72 million (0.64 %)Increasing global wood demand
Increasing Gap for Industrial
Roundwood

Increasing global demand for wood
14000
12000

Sawn Logs&Sheet1!$9:$9 Veneer
Logs

Mill m3

10000

Energy Wood

8000
6000

Household Energy
Wood

4000

IFC 2013

Total Wood Demand2000

WWF 201202010
1900

2030

2050

2005
2030

North America
European Union (27) + 3

Demand in woodfuel and charcoal
continues to increase••

2.8 billion people will depend on
traditional fuels in 2030
Massive increase in demand for energy
wood in industrialized countries

Australia, Japan, New Zealand
East Asia and Pacific
Europe and Central Asia
Latin America and CaribbeanMiddle East and North Africa
South Asia
Africa050100150200250

300

350400Primary energy supply in MTOE
Traditional uses (wood)
Production of heat and power

Traditional uses (agricultural residues)Internal use in forestry and agricultural processing

3IFC/Dieterle et al. 2015

Tropical forest degradation: geography ofcarbon density change• Tropical forests are a net
release of carbon of 425.2± 92.0 Tg C yr–1 (losses of861.7 ± 80.2 Tg C yr–1 andgains of 436.5 ± 31.0 Tg C
yr–1 from forest growth)•Losses result from (i)deforestation and (ii)reductions in carbon
density within standing
forests (degradation)accounting for 68.9% of
overall losses

A. Baccini et al. Science 2017;science.aam5962

4

Mitigation potential of Green
Growth/Bio-economy Scenario- Six Case Countries -5

IPCC Special Report 2019
In its Special Report, in the chapter on land degradation, theIntergovernmental Panel on Climate Change states that:• Sustainable forest management can maintain or enhance forest
carbon stocks, and can maintain forest carbon sinks, including bytransferring carbon to wood products, thus addressing the issue ofsink saturation (high confidence).
• Where wood carbon is transferred to harvested wood products,
these can store carbon over the long-term and can substitute foremissions-intensive materials reducing emissions in other sectors(high confidence).
• Where biomass is used for energy, e.g., as a mitigation strategy, thecarbon is released back into the atmosphere more quickly (highconfidence)

The forgotten component in REDD+:
Subsitution

Potential gains from forests: 8GtCO2/year
15% of 2018 mitigation gap

Multiple wins from LSSC, forest conservation andforest restoration vs. Cost of inaction
••
•
•
•
•

•

Benefits
Multiple SDGs
Economic growth
Poverty reduction“Wood security”
Substantial Climate
Benefits (up to 8Gt/y)
Increasedenvironmental/biodiversity
benefits
Global water regime:
Rivers in the Sky••••••

Cost of inaction
Reduced export earnings
Increased poverty/loss ofjobs
Increased use of nonrenewablematerials/energy
Increased CO2 emissions
from degradation and lossof forest
Loss of biodiversity andPAs
Risk of conflict8

The rational for building for Green Supply Chains
International and National Legality and Sustainability Frameworks
SDGs, UNSPF, National Policies, Intl. Agreements, Proofs of Legality (Certification Schemes, Timber Tracking Systems, DNA
Fingerprinting, ………)
Policy & Regulatory &Institutional Frameworks,
Capacity Building ,Analysis, ….

Proposed
Green
SupplyChain
Platform(GGSC)

Market Information,Guidelines, Capacity ,Building & Training Field
Projects, Access toMarkets ….
Data Base, Intl.
Connectivity, Expert
Advice, Market
Monitoring, Capacity
Building & Training ….

TropicalTimber
Traders

Importers& TradersMarket Information, Intl.
Outreach Capacity
Building, Networks ….

Analysis,
Information,
Monitoring …

Tropical Timber
Producing
Governments
Tropical
Producers &Exporters

Processors& Exporters

ConsumerMarkets

National, Regional and International Markets;
Consumers ; Advocacy Groups …..

Demand for legal
and sustainableproducts

Key Outcomes of the International Forum“Together Towards Global Green Supply Chains”
22–25 October 2019, Shanghai & Huzhou, China•

Creation of a voluntary network to add value to forests “Global Green
Supply Chain (GGSC) Network”:– recognition of forests economic, social and environmental values;– the incorporation of legality and sustainability in all forestry operations;– open to all supply-chain operators (forest managers, producers, traders, theprocessing industry and consumers).

•Contribution to SDGs and Agenda2030 :•Key ingredients for achieving legal and sustainable supply chains:– Nature-based solutions to climate change involving trees and forests can only
be fully achieved within the framework of legal and sustainable supply chains,from the forest to the market.
– sufficient technical expertise, research, capacity building and know-how;– fiscal and other macro-economic incentives for good business;– access to finance at affordable interest rates;– availability of information and data for decision-making;– stable legislation; and– transparency and good governance.

Key questions to be addressed in building
Legal and Sustainable Supply Chains•

How to assisting governments in building enabling institutional and policy frameworks for•

How to develop, promote and implement effective incentive mechanisms for increased•

What are the needs for capacity building for sustainable forest management, production
and trade (tracking and documentation, voluntary legality verification and certification,?

•

How to ensure transparent and fair marketing and trading of wood and forest products:•

How to ensure comparability and coherence among different national and international
regulations and standards related to legality and sustainability in order to facilitate compliance forpromoting legal and sustainable supply chains and enabling business conditions for actors who operate in suchchains,?

investments in legal and sustainable forest management and associated downstream supply chainsmarket information, strengthening tropical country trade associations and cooperative organizations, facilitating
linking domestic and international buyers and sellers of legal and sustainable wood and forest products?;

suppliers of legal and sustainable wood products?

•How to overcome informality in domestic trade and intra-continental trade in forest•

What type of advocacy and awareness-raising among all stakeholder groups is needed fordeveloping countries though legal and sustainable supply chains?

promoting the role of productive forests and sustainable wood for economic, social and environmental
development, climate change mitigation and adaptation, and the conservation of global biodiversity?

11

www.itto.int

Thank you very much!
www.itto.int
dieterle@itto.int