Combating Illegal Logging
and Enhancing Biodiversity
in Japan’s Paper Industry
Feburuary29,2016
University of Kyoto

Kiyoshi Kamikawa
Japan Paper Association1

• In July 2005, at a G8 Summit held in Gleneagles, theU.K., developed countries around the world formed
an agreement to create measures that address the
problem of illegal logging.
• Following this agreement, the Government of Japan
amended criteria concerning wood-based products
under the Green Procurement Law.
• The amendment went into effect after April 2006,
making the Law require timber suppliers ofgovernment institutions to supply timber that has
been verified its legality.

2• The EU also created “Regulation (EU) No 995/2010 of
the European Parliament and of the Council of
20 October 2010 laying down the obligations ofoperators who place timber and timber products on
the market” in 2010.
• Following the establishment of this Regulation, it isprohibited to sell illegally-harvested wood or forest
products made from such wood within the EU fromMarch 2013.
• In addition, Australia has passed “Illegal Logging
Prohibition Bill”, very similar to EU Timber Regulation,at the national Parliament in 2012 and has come into
effect from 2014.
3

• Furthermore, the United States has amended theLacey Act in 2008, as part of its anti-illegal logging
measures. Following the amendment, exporters ofwood products, including paper, now have to make adeclaration with regard to a country of origin where
wood is harvested and tree species, as well as productname, price and quantity (However, the obligation of
the declaration is not applicable to paper pulp at the
point of writing this document).

4

Combating Illegal Logging• Japan Paper Association (JPA) pledges to combat
illegal logging, one of the major causes ofdeforestation worldwide.
• JPA set up the code of actions against illegal logging
in 2006. (100% not illegal confirmed)• Japanese paper companies set up their own codes ofprocurement and collect traceability reports from all
suppliers.
• In addition, JAP audits Japanese paper companies’
actions of confirming legality.
5• Prior to this, Japan Paper Association developed “The
Code of Action for” the Japan Paper Association
Regarding the Illegal Logging Problem” in March 2006.
• The Code of Action is designed clarify the
Association’s commitment to have the entire industry
commit to the elimination of illegal logging.
• The Association also amended “The Voluntary Action
Plan Regarding the Environment” in March 2007,
incorporating the anti-illegal logging measures as partof the Voluntary Action Plan.
• In 2014, the Voluntary Action Plan was terminatedand “ The Action Plan Regarding the Environment”
has been newly set up, also incorporating the antiillegal logging measures as part of it6• The Forestry Agency issued the Guidelines , under thegreen procurement law, concerning verification
methods of anti-illegal logging measures, which
specifies the following three verification methods:(1) “Verification method via forest certification
system”(2) “Verification method by company under theauthorization of associations for forest owners,
forestry or wood industries”(3) “Verification method by original measure of eachcompany”

7Verification method by company under the authorizationof associations for forest owners, forestry or woodindustries (2014)
Categories

Domestic/Import

Total Volume(1,000m3)

Round wood
(production)

Domestic

12,100Round wood
(distribution)

Domestic

Forest products(production)

Volume verified aslegal (1,000m3)%

Authorizedcompanies

8,578

71

1,910

15,155

10,231

68

532

Domestic

25,286

14,52757

2,957

Forest products(distribution)

Domestic

25,215

9,991

40

3,145

OthersDomestic

264

170

64

14

Round wood

Import

2,042

1,223

60

3

Forest products

Import

6,415

993

15

33
8

• The paper industry has adopted method (3) above(“Verification method by original measure of eachcompany”), and since April 2006, member companiesof the Japan Paper Association have been
implementing their own measures for tackling illegal
logging issues.
• For the implementation of verification method, somecompanies are using method (1) or (2) above at thesame time ((1) “Verification method via a forest
certification system”; (2) “Verification method bycompany under the authorization of associations forforest owners, forestry or wood industry”).
9Legality Verification System of JPA
Loggers

Supplier

Paper Companies

Wholesalers

Users

ImportTraceability Report
Loggers

Chipping Mills

Certificate

Domestic

Authorization
Audit

Associations(Code of Action)

Japan Paper Association(Code of Action)

62• Furthermore, since 2007, the paper industry has been
stepping up its effort to address the illegal logging
problem by implementing the “The Monitoring
Operation for Anti-Illegal Logging Measures”.

• This operation includes monitoring by the Japan
Paper Association, for which guidance, advice andauditing are provided by a third-party committee
consisting of academic experts, consumer groups,
those involved with auditing corporations, and othersimilar groups.

11Auditing Committee Members
Shin NAGATA

Professor, Graduate School of Tokyo
University
Akihiro OHNUMA All Japan Stationery Association
Kazuya KOUJITANI Green Purchasing Network
Satoshi TACHIBANA Associate Professor, Graduate
School of Tsukuba
University
Kyoko NOMURA
Price Waterhouse Coopers
12• In February 2009, criteria concerning photocopy papers
under the Green Procurement Law were amended.
• Prior to the amendment, the paper for public
procurement had to come from 100% used paper, but as aresult of this amendment, it can now include virgin pulp
up to 30% provided that such pulp originates from woodfrom thinning operation, or certified wood.
• Other types of wood that was produced in a sustainable
manner is also allowable.
• For these, paper companies decided to use “TheMonitoring Operation for Anti-Illegal Logging Measures”
mentioned above, whilst also confirming environmental
and social superiority of relevant forests through theimplementation of procurement policies or the
production of traceability reports, in order to meet thecriteria under the Law.
13

Future Development of JPA’s Anti-illegal
Logging Measures• 10 years have passed since JPA has started its
own anti-illegal logging measures.
• Besides, the law for the promotion of legal
wood procurement ( Japan’s version of antiillegal logging law) would be enacted soon
before Ise-Shima Summit held in Japan coming
May.
• JPA has now been considering theimprovement of its anti-illegal logging measures,
introducing “Due Diligence” system, so as tosatisfy the requirements of EU Timber
Regulation, Lacey Act and Australian anti-illegal
logging law.
14

Paper and Paperboard Production of Japan・Japan is the third largest paper and paperboard producing country in
the world.

・Paper and paperboard production of Japan dropped by minus 14.2%
from 30,625 thousand tons in 2008, to 26,268 thousand tons in 2009
due to Lehman shock.
・It was back to the level of a quarter of century (26 years) ago (1988).
・Since then, the level of paper and paperboard production has beenfloundering around 26 million tons ( 26,241 thousand tons in 2014).
・ The production of paper continues to be decreasing due to IT
revolution (15,118 thousand tons in 2014).
・ On the other hand, the production of paperboard has been rather
stable (11,360 thousand tons ), in proportion to GDP.
15

World Paper & Paperboard Production in 2014

China
USA

Japan

Germany
分類 1

SwedenS,Korea
CanadaFinnlandBrazilIndonesia

0

20000
China

USA

Japan

40000
Germany

60000
SwedenS.Korea

80000
Canada100000Finland
BrazilSource: RISI

120000Indonesia

16Trends in paper & paperboard production(×1000 metric ton)

32,00030,00028,000Paper&Paperboard Production

31,82831,10631,266
30,95130,71731,01430,63130,89230,68630,62730,01230,45729,88629,65927,36328,51826,579 26,478 26,241

26,00026,26825,…

24,00022,000Paper Production

20,00018,00016,00014,00012,00010,00019,06219,192
19,037
18,78818,900
18,52818,393
18,267
18,82818,385 18,396
17,767
17,855
17,466
16,387
16,602
15,430 15,182
15,831
15,067
15,…

Paperboard Production

12,747
12,791
12,245
12,332
12,23812,074
12,10312,051
12,193
12,15812,031
12,044 11,800
12,061
11,916

10,976 11,149 11,05911,360
10,89010,4368,000‘94 ‘95 ‘96 ‘97 ‘98 ‘99 2000 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09

10

11

12

13

14

Source : Japan Paper association17

Paper and paperboard production by grades(1000 metric ton : % )
2008

2009

2014

Production’08/’07

Production’09/’08

Production’09~’14

Newsprint paper

3,680

96.8

3,455

93.9

3,134

－1.9

Printing and writing paper

11,501

98.6

9,120

79.3

8,491

－1.4

Packaging paper

1,010

101.6

786

77.8

905

＋2.9

Sanitary paper

1,805

102.0

1,776

98.4

1,766

－0.1

Other paper

831

86.4

695

83.6

821

＋3.4

Paper total

18.82898.1

15,831

84.1

15,118－0.9

Container board

9,219

97.8

8,213

89.1

9,096

＋2.1

Boxboard

1,879

101.0

1,637

90.0

1,593

－0.5

Other paperboard

762

89.7

586

76.9

672

＋2.7

Paperboard total

11,80097.7

10,43688.4

11,360

＋1.7

Total

30,62798.0

26,26885.8

26,478＋0.2

Source : PRPC
18

Raw Materials Contents（2013）

Imported
Pulp fromMarket Pulp
Natural
6.2%
Wood
3.5%

Others0.1%

Pulp from
Sawmill
Residue…

Pulp fromPlantedWood
19.7%

Recovered
Paper
63.9%

19

Consumption of Recovered Paper
・ Japanese paper industry has achieved the highest level ofrecovered paper utilization rate in the world.
• Utilization rate in 2014 is 63.9% (paper 40.3%,paperboard
93.2%)• Consumption of recovered paper is 17,224 thousand tons in2014.
• Japan Paper Association (JPA) has set up the utilization rate
target of 64% by the year 2015 in Environmental Action Plan
with great efforts and almost achieved that target .
• JPA has been reviewing the existing target and now in theprocess of setting up the new target for the year 2020.

20

Recovery rate of Recovered Paper
・Recovery rate of recovered paper is also at thehighest level of 80.8% in 2014, which is due to theeffectively sorted collection system deeply rooted
in the Japanese society.
・Collection of recovered paper is 21,751 thousand
tons in 2014. We have a large amount of surplus ofrecovered paper and export a lot to China.

21

Recovery rate & Utilization rate of recovered paper
80

(%)

79.7

78

79.9
77.9

Recovery rate

78.2

76
74

72.4

74.5 75.1

71.1

72
70

68.5

68

66.1
65.4

66

(63.7)(63.0)

64
61.5

62
60

57.7

58

56

(53.6) (54.0)(53.4)(53.3)
54

52
50

51.7 51.5(56.1)
55.2
55.7(54.9)(63.1)(61.4)(61.9)(60.6)(60.3)(60.2)(60.4)(59.6)(6…
63.9（62.5)(58.0)(57.0)

Utilization rate

53.0
51.3

48
‘94 ‘95 ‘96 ‘97 ‘98 ‘99 2000 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09

Source：PRPC

'10

11

12

13

14

22

Woodchip Consumption of Japan・Woodchip consumption of Japan dropped by minus 20% from 19,086
thousand tons in 2008 to 15,294 thousand tons in 2009 due toLehman shock.（consumption of imported woodchips dropped byminus 23.6% to 897 thousand tons）
・ Woodchip consumption of Japan recovered by 11% to 16,992
thousand tons in 2010.
・ It went down again to 15,593 thousand tons in 2012.
・ But it has increased a little by two consecutive years to 16,489
thousand tons in 2014, even though it is still at a rather low level.

23

Consumption of Woodchip(thousand BDT)
25000
20000

19187 19229 19363

19086
16992

16280
15294

15000

15593

15967

16489

Import Hardwood
Import Softwood
Domestic Hardwood

10000

Domestic Softwood
5000
0
05

06

07

08

09

10

11

12

13

14

Source: Japan Paper Association

24

Pulpwood Market Situation ( 2014 )（unit：1000BDT、％ the ratio over the previous
year）
items

consumption

supplydomestic％

import％pulpwood total

16,488

103.3

4,909

97.0

softwood log

127

94.0

125

hardwood log

21

94.6

softwood chip

5,093

hardwood chip

11,247

total％

11,409107.5％
16,318

104.1

99.1

125

99.1

21

95.5

21.

95.5

103.6

3,427

98.1

1,651

121.7

5,078

104.7

103.2

1,336

93.9

9,758

105.5

11,094103.9（reference）
consumption

softwood ratio over the previous year ： 103.3％
hardwood ratio over the previous year ： 103.2％

supplysoftwood ratio ：31.9％
hardwood ratio ：68.1％

import ratio ： 69.9％

Source：Japan Paper Association( softwood ： 31.7％

hardwood ：25Thousand BDT
14,00012,000Hardwood Total 11,312

Hardwood Total 11,152
OthersBrazil, 573

Others

10,000

OthersBrazil, 582
Thailand, 613

Thailand, 766

Brazil, 810

Vietnam, 1,066
South Africa, 1,415

6,000

Hardwood

8,000

Hardwood Total 11,094

Thailand, 834
South Africa, 1,112

South Africa, 1,410
Vietnam, 1,620

Vietnam, 2,418

Chile, 2,345
Chile, 2,572

Chile, 2,054

4,000
Australia, 3,512
Australa, 2,581

Australia, 1,812

2,000Japan, 1,531

Japan, 1,422

Japan, 1,336

Japan,3,425

Japan, 3,389

Japan,3,427

Australia, 732

USA, 661
Australia, 549
NZ, 307
OthersUSA, 683
Australa, 502
NZ, 315
Others

0

2,000

6,000

Softwood

4,000

USA, 649
NZ, 291
OthersSoftwood Total 5,412
2010

8,000

Softwood Total 5,204
2011

Softwood Total 5,078

2014
26

Trend of Self-Sufficiency Rate of Woodchip（％）

Domestic Woodchip(softwood)
Softwood(%)

Domestic Woodchip(hardwood)

Hardwood

40
75

35
70

30
65

25
60

20
55

15
50

10
45

5
40
200020012002200320042005200620072008200920102011201220132014

0200020012002200320042005200620072008200920102011201220132014

Source; Ministry of Economy, Trade and Industry
19

Imports of Woodchip by origin(softwood)・ The import from U.S. was 684 thousand tons in 2008, and sharply
dropped to 369 thousand tons in 2009 , but bounced back to 663
thousand tons in 2010.
・ It continued to decrease to 497 thousand tons in 2013 but
bounced back to 660 thousand tons (39.1%) in 2014.
・ The import from Australia was 1,087 thousand tons in 2008,
and dropped to 598 thousand tons in 2009, but recovered to 731
thousand tons in 2010.
・ It dropped again to 546 thousand tons in 2011, and decreased
further to 460 thousand tons in 2012,but bounced back a little to502 thousand tons (30.2%) in 2014.
.28

Trend of Woodchip Imports by origin(softwood)(thousand
tons)
1400
1200

Australia
1000
800

US

600
400

NZ

Canada
200

Fiji

0
2004

2005

2006

US

Canada2007
Russia2008

2009

Australia

2010
NZ

2011
Fiji

2012
Chile

Source: Ministry of Finance

2013

2014

Brazil29

Woodchip Imports by Origin (softwood)<2009>
2009<2013>
2014

5.1

7.9

ＵＳ

9.5

ＮＺ

14.6

Australia

Ａｕｓｔｒａｌｉａ

42.4

Ｃａｎａｄａ
Ｆｉｊｉ

US

9.8

30.2

9.6

NZ
Canada39.7

ＯｔｈｅｒｓFiji
Others

Source: Ministry of
Finance30

Woodchip Imports by Origin (hardwood)• The import from Chili was 2.350 million tons in 2008 and dropped alittle to 2.238 million tons in 2009 and up again to 2.377 million tons in
2010.
• It went up to 2.590 million tons ( 27.0%) as No.1 in 2012, but went
down to 2,033 million tons (20.3%) as No.2 in 2014
• The import from Vietnam was 1.071 million tons in 2008 and dropped
to 0.809 million tons in 2009 and up to 1.064 million tons in 2010.
• It jumped up to 2,498 million tons ( 25.0%) as No.1 in 2014.
• The import from Australia was 4.464 million tons in 2008 and dropped
to 3.148 million tons in 2009 but could not recovered to 3.591 million
tons in 2010.
• It continue to decrease to 1,821 million tons ( 18.2%) as No.3 in 2014.
31

Trend of Woodchip Imports by Origin (hardwood)(thousand
tons
5000
4500

Australia

4000
3500
3000

S.Africa

2500
2000

Chile

Vietnam

1500
1000
500

0
2004
US

2005
Australia

2006

2007
Indonesia

2008

2009

Thailand

2010

2011

Vietnam

Chile

2012
BrazilSource: Ministry of Finance

2013

2014

S.Africa

32

Woodchip Imports by Origin (hardwood)<2009>
2009<2013>
2014
Australia

4.1

Australia

3.9

Chili

6.4

South Africa

8.9

35.4

16.1

18.2

8.2

VietnamBrazil

25.2

8.4

8.7

Chili

Thai

20.3

25.0

South
AfricaVietnamBrazil

11.1

OthersThai
Others

Source: Ministry of Finance

33

JPA’s Code of Action for Conserving Biodiversity• Japan Paper Association (JPA) has set up JPA’s Code of
Action for Conserving Biodiversity in 2014.
• In addition to setting up the code, JPA has done themonitoring survey of what member companies haveactually done for conserving biodiversity in 2015 andwill continue to do so annually in order to improve
the performance of conserving biodiversity for eachmember company.

34

JPA’s Code of Action for Conserving Biodiversity
・Corporate Governance・Sustainable Forest Management・Responsible procurement
・Corporate Social Responsibility・Social Cooperation

35

JPA’s Initiatives for SFM
JPA’s Environmental Action Plan(established in 2012)
・We have committed to promote SFM thorough forest certification

・We have target to expand forest plantation area owned or managed by
JPA members at home and abroad to 800 thousand ha by FY2030 toensure a stable wood supply, as well as to increase forest carbon sinks that
help prevent global warming.

To read full text of the Action Plan, please visit http://www.jpa.gr.jp/en/36Forest Plantation by JPA Members
In its900Environmental Action Plan, JPA sets the target of expanding
Forest Plantation
Area to 800 thousand ha by800
the plantation area at home
and abroad
800
FY 2030.
(1,000700 ha)647 652690 690 677
626

605 607(1,000 ha)

600
500

463
406

491 506

537

426

400
300

275

200

90

00

01

02

03

04

05

06

07

08

09

10

11

12

13

30
37

Promotion of Plantations Overseas• JPA has set up the target of expanding the area of plantations owned
or managed by Japanese paper companies to 0.8million ha in Japanand overseas by FY2030 under Environmental Action Plan .
• We have already established 0.479million ha of plantations overseas(34projects) In 10 countries In 2013.
• The total area of Plantation including domestic ones (0.147 millionha) was 0.626 million ha.
• The area of plantation overseas has decreased two consecutive years(in 2012 & 2013) due to the decreasing demand for woodchip andclimate changes caused by global warming (fewer rain in Australia).
• Main planting species are Eucalyptus spp. and Acacia spp. with therotation of 7~10 years.

38Overseas Forest Plantations by
the Japanese Paper Industry
Total: 479,000ha (as of the end of 2014)

Cambodia

400ha

Source: Japan Paper Association

39

Brief History of SGEC Certification Scheme
1.SGEC certification scheme established in 2003
Established as a forest certification scheme, consists of
74 members including forestry, forest industries,
environmental NGOs, business societies, academics andso on.
2.Got a membership of PEFC as NGB in 2014
SGEC has accepted as a member of PEFC and has
become the National Governing Body of Japan since 29th
July 2014.
3.Application for mutual recognition with PEFC in 2015
Passing through necessary procedures, SGEC’s
application for mutual recognition with PEFC was
submitted to PEFC 27th March 2015.
Waiting for the final decision of Board of Members of
PEFC in coming June 2016.
40

・SGEC has established principles, indicators andguidelines of FM certification, in a fair and properway, based on Montreal Process.
・ SGEC has also established guidelines of CoC
certification in accordance with those of PEFC.

・At the same time, 3 certification bodies havealready been engaged in certifying forests and forest
products under SGEC scheme.

41

・ Since then, SGEC has remarkably expanded thecoverage of forest area certified by FM certification(1,310,663 ha in 2016, 5% of Japan’s total forest areas)
and the numbers of entities certified by CoC certification(351 in 2016), strongly supported by small-scaled forest
owners and forest industries in Japan.
・This achievement of SGEC apparently surpasses that of
FSC in Japan. FSC has 393,243 ha of forest areas certified
by FM certification（2016） and 1,050 entities certified
by CoC certification（2016）.
・But, FSC has a better recognition as forest certification
among forest products users and consumers, because
environmental NGOs such as WWF has strongly supported
and campaigned.
・As SGEC has not been endorsed by PEFC (SGEC hasapplied for the endorsement of PEFC and would be donein coming June.) so far, PEFC has none of forest areas
certified by PEFC, but has 190 entities certified by CoC
certification in 2016.
42

Forest Certification in Japan
Certification
SchemeFM Certification CoC Certification
(ha)

SGEC

1,310,663

351

FSC

393,243

1,050

PEFC

---

190
(February 2016) 43

Forest Certification in Paper Industry (2013)• Japanese paper companies have 0.64million ha of theirown forests certified by forest certification schemes
such as FSC, PEFC and SGEC (independent, only inJapan) .
• Besides, 22.2% of woodchips consumed by Japanese
paper companies is certified by CoC.
• Japanese paper companies choose each forest
certification scheme according to its acceptance in eachregion.

44

Forest Certification Area owned by JPA Members

Source：Japan Paper Association

45

The amount of forest-certified woodchips (2013)
consumed by Japanese Paper Companies
Softwood

hardwood

total

Ｄｏｍｅｓ
ｔｉｃ

245

5

250

Ｉｍｐｏｒ
ｔ

616

2,610

3,226

Ｔｏｔａｌ

861
(17.3%)

2,615(24.4%)

3,476(22.2%)（ｆｏｒｅｓｔｃｅｒｔｉｆｉｃａｔｉｏｎｒａｔｅ）
Source：Japan
Paper Association46

Thank you for you kind attention!

47