Environmental Policies, Illegal
Logging and Trade: The Needfor a Risk-Based Approach
Michael S Snow
Executive Director
American Hardwood Export Council

www.ahec-Japan.org
www.sustainablehardwoods.info

Illegal Logging• Illegal material
depresses world
prices for wood by up
to16%• Severely undermines
markets for legal
operators• Undermines
reputation of thewood industry

Wood:
Green” Material
Wood: The
The ““Green”
Material• Wood outperforms allother building products:¾Releases less effluentsduring manufacture¾Requires less energy¾Better insulator¾Stores carbon¾Recyclable andRenewable

Wood: energy efficient
Material

Embodiedenergy,Mj/kg

AD sawn hardwood

0.5

KD sawn hardwood

2.0

Concrete

4.0

Mild steel

34.0

Plastics

90.0

Aluminium

170.0Life Cycle Assessment

There is no “one size fits allsolution”

Late 1990s: certification diversifies

World’s Leading Hardwood
Lumber Exporters: 2008
$1,500
United States
Malaysia$1,200$900

BrazilHong Kong

$600

EU-15
Romania

$300

China
Thailand$0

Croatia

1999
2000
2001
2002
2003
2004
2005
2006
2007
2008

$Million

CanadaSource: Global Trade Atlas

Private lands supply 90% of thetimber produced in the US
National Forests
4%

Other Public
6%Private90%
Source: Seneca Creek Estimates

Labelling challenges
Certified Forest

Certified company
Certified Forest

Certified ForestIs there a better way?
YES: Risk Based Assessment

www.ahec.org
www.sustainablehardwoods.info

Perception that wood is scarce

38 million houses a year….
• Between 2000 and 2005,
volume of wood standingin temperate and boreal
forests increased by 884
million m3 per year
• Enough to build 38 million
two storey timber framehouses every year(assumes 50%
conversion & 11 m3 perhouse)• Global housing starts =approx 36 million/ann.

A fence to the sun and back…
• During the 1990s, volumeof wood standing intemperate and boreal
forests increased by
21,000 million m3.
• That’s enough wood tobuild a 1m x 8cm fence tothe sun and back (or7500 times round theearth)

U.S.
U.S. Hardwood
Hardwood Growth
Growth && Removals
RemovalsMillion M3
350
300
250
200
150
100
5001952

1962

1970

1976

Net Growth

1986

Removals

19962006

USUS Hardwood
Hardwood Inventory
Inventory
Billion M31210864201953

1977
Private1987
Nat Forests

1997
State & Local

2007

Procurement Policy Limitations• Only small percentage of illegally felled timberenters international trade• Markets can easily shift and divert wood to lessrestrictive buyers• Does NOT address root causes of deforestation• Risk of widening gap between illegal andlegitimate production

Goal: Reduce the Cost Spread
Legitimate Material

CostGOAL

Illegal Material + RISK

Source: Seneca Creek Associates, LLC

Sourcing of Non-Certified Wood
• SFI, PEFC and FSC have developed standardsfor using non-certified wood:– FSC Controlled Wood Standard– SFI Procurement Standard– PEFC Controversial Sourcing Standard• CoC labeled products must meet sourcing
standards

US Combat Illegal Logging Act2008• It is an offence within the U.S. to trade in a wood productthat has been “taken, possessed, transported, or sold” inviolation of any foreign law.
• An amendment to the U.S. Lacey Act which currently
regulates trade in fish, wildlife and limited subset ofplants.
• Burden of proof with the prosecution who would have todemonstrate that wood derived from an illegal source• Only likely to be applied to the worst offenders importers with actual knowledge and intent to importillegal shipments• Does not establish detailed requirements for legality
verification• Actively encourages importers’ risk assessment andgreater diligence and action in regions of high risk

EU Illegal Logging Action Plan•
••

•
•
•

Forest Law Enforcement,
Governance & Trade (FLEGT)
Targets illegal wood imports
from the tropics
Voluntary Partnership Agreementswith Cameroon, Congo Republic,
Ghana, Indonesia, Malaysia
VPA countries obliged to supply“legally licensed” wood to the EU market
EU considering a law obliging timber importers to introduce “duediligence”
EU importers would have to demonstrate they have in place amanagement system to minimise risks of importing illegal wood

Data-Based Risk
Data-Based
Risk Assessment
Assessment¾Evaluate risk that “illegal”
hardwood is in the US
hardwood product export mix¾Assess legality of US
hardwood supply situation incontext of: CPET Criteria
 FSC Controlled Wood PEFC (SFI) ControversialSourcing

AHEC/Seneca Creek RiskAssessment Findings – Low Risk
¾ While timber theft occurs and is of concern to private
landowners, it is not believed or perceived to be asystemic problem, especially with regards to US
hardwood exports¾ US re-exports of temperate hardwoods relatively small
and mostly sourced in Canada (similarly robustgovernance)¾ High regard for the rule of law, an effective
environmental, labor and public welfare regulatoryenvironment, and a low level of corruption¾ Rights of timber ownership are well-established andrespected.

For More Information:www.sustainablehardwoods.info