Sustainable Forest
Management and Illegal
Logging:
A Canadian Perspective

Illegal Logging Seminar
Yokohama, Japan
December 3-4, 20071

Forestry: Cornerstone of theCanadian Economic/Social Fabric• Sales - $81 billion• 3% of GDP• > 860,000 direct and indirect jobs
• > 300 dependent communities• Leading employers of Aboriginal People2

Leading Exporter of Forest Products
Forest Products Exports 2005 (CAN$ Billions)
CanadaUnited States of America
Germany
SwedenFinland
Russian Federation
FranceChina
Austria
BrazilIndonesia
Belgium
Netherlands
Source: FAO February 2007

38.4
22.1
21.8
17.2
15.89.9
9.5
8.1
7.8
7.1
7.0
6.4
4.90102030

40503

An Immense Forested
Landscape (Millions of hectares)
1000851

Canada:10% World Forest

800565

600
400

310

302

200
30

22102

SwedenFinlandGermany

UnitedKingdom

0Russia

BrazilSource: FRA 2000, Main Report, UNFAOCANADA

US4

Today’s forest
as a % of Original Forest Area
CANADA
NorwaySwedenFinland
Russian Federation
BrazilIndonesia
Malaysia
United States
Chile
New Zeland
Germany
ChinaFrance
United Kingdom

0%

91%
90%
86%
82%
68%
66%
64%
63%
60%
40%
29%
26%
21%
16%
6%
20%

40%60%80%

100%

Source: Earth Trends 2001, World Resource Institute, Forests and Grasslands country reports

5Protected Forest Area
(million ha)
CANADA

30

United States

4023

Brazil19

Indonesia

15

Russian Federation

4.5
4
2.6
1.8
1.6
1.5
1.5
1.5
0.5
0.5
0.2

China
Chile
Germany
New Zealand
Malaysia
FinlandFranceSpain
SwedenUnited Kindom
Norway0102030

4050
6Source: A Global Overview of Forest Conservation, WCMC, UNEP, CIFOR, 1997

Virtually Zero Deforestation

OverOver 90%
90% ofofnatural
natural forests
forests
lostlost inin thethetropics
tropics areareconverted
converted toto
non-forest
non-forest uses,uses,
primarily
primarily
agriculture
agriculture

Source FAO
7

Legality/sustainability demand• Increased corporate and social responsibility to procure wood
products from legal and sustainable forests.
• Canada is at low/no risk status for illegal logging whencompared globally but has a responsibility.

Illegal Logging(AF&PA , 2004)9

Effective Prevention of
Illegal Logging in Canada
1. Legislative Framework
2. Tenure System
3. Regulation
4. Compliance Enforcement
5. Certification (SFM & CoC)
6. Government and Corporate Policy
10

1. Legislative Framework11Federal Government
Agencies and Acts
Legislation created by the Canadian Federal
Government impacts forest management inProvinces
Fisheries Act - Department of Fisheries and Oceans
Canadian Environmental Assessment Act - Canadian
Environmental Assessment Agency
Pest Control Products Act - Health Canada
Navigable Waters Protection Act - Transport Canada
Canadian Forestry Services
Species at Risk Act - Environment Canada

Federal / Provincial Structure• The Canadian constitution delegates jurisdiction
over natural resources to provinces• Provincial legislation dictates:- Tenure arrangements- Environmental standards that apply to Crown lands

Provincial Acts – BC Example
Provincial legislation dictates tenurearrangements and environmental standards onpublic (Crown) land
Ministry of Forests and Range Act
Forest Act
Forest and Range Practices Act
Land ActRange Act
Water Act
Wildfire Act

BC Forest Act
Provides the authority for the allocation andadministration of forest resources, primarily timber.
Regulates rate of cuttingSpecifies forms and content of agreements
Provides for basic tenure administration
Basics for aspects of compliance and enforcement

BC Forest and Range Practices Act
Provides for the regulation of operational planning andpractices.
Establishes stewardship standards for forest and range practices
Ensures that the legislated requirements for sustainable forest
practices are followed
Meets the requirements for higher level plan objectives establishedthrough strategic planning
Carry out compliance and enforcement activities to ensurestewardship standards are met2. Tenure System

17

Forest Use & Concessions:
Tenure System
What are Tenures?
Mechanism by which government transfers
specific rights to use Crown forest resources through:legislation – Forest Act
regulation
contracts
policy. . . and defines the licensee’s obligations.

Tenure Administration
1. Administer licence
2. Approve Forest Stewardship Plan
3. Issue road permit
4. Issue cutting permit
5. Monitor Performance
6. Collect Revenue

Forest Use & Concessions:
Example: BC Tenure SystemTenures
Forest Licence
Timber Sale Licence
Timber Licence
Tree Farm Licence
Pulpwood Agreement
Woodlot Licence
Community Forest Agreement
Licence to Cut464
905
552
3310827183,398

3. Regulation

Canadian Forest Regulation
Objective: Sustainability• Environmentally Responsible• Socially Desirable• Economically ViableForest Planning and Regulation• Long term licenses• 20-25 year forest management plans• Rolling 5 year development plans and site specific annual
operational plans• Forest management plans subject to public review prior toapproval• All harvested areas must, by law, be regenerated

23

How do Canadian Regulations Compare?
• Protected areas• Species at Risk
• Certification• Riparian Protection• Clearcutting• Road Construction• Reforestation• Allowable harvest
24

Current SFM Issues• Boreal Conservation and Management• Conservation Planning Principles• Caribou Management• Pine Beetle• Increased early detection and action• Monitor AAC to ensure timber supply• Provincial Response Team• Cold Winter Coming?

• Species at Risk Act

25

4. Compliance & Enforcement

Compliance & Enforcement

26

Compliance & Enforcement“Independent yet Integrated”
C&E is integrated into government activity, butmaintains its ability to act independently.
• Independent: acts on legal authority, unbiased andindependent of irrelevant considerations• Integrated: operates efficiently and communicateseffectively with other program areas within the MinistryCompliance & Enforcement• Enforce environmental standards under legislation;• Conduct investigations where evidence of contravention;• Enforce regulations to minimize fire, pests andunauthorized activities;• Combat forest crimes that impact provincial revenues(theft, arson, mischief);• Enforce revenue policies.

Compliance & Enforcement• Enforcing environmental standards under legislation;• Combating forest crimes which impact provincialrevenues (theft, arson, mischief);• Conduct investigations where there is evidence ofcontravention;• Enforcing regulations to minimize fire, pests andunauthorized activities;• Enforcing revenue policies.

Compliance & Enforcement305. Certification

31

SFM Certification in Canada
1999-2007 (millions of hectares)
140

120

100

119.8

CSASFI134

75% of Canadian certifications
are in the boreal forest

87.3

FSC

79.2

80

58.3

60

40

28.1

34.9

17

20

50

20.5

0.5
1999

2000

2001

2002

2003

End of year

Source: Canadian Sustainable Forestry Certification Coalition. October 2007

2004

2005

2006

32

Canadian Certificationin the Global Context Millions of hectares
150
140October 4, 2007

134.1

130120110
100

Only 10% of the world’s forests
are certified

90
8070

Canada has 40% of global certification

60
50

42.32

4030

22.53

20

18.21

15.68
9.09

107.78

5.62

4.8

4.37

1.9

BrazilMalaysia

FranceChile

0
CANADAUSA

FinlandSwedenRussia

Australia

GermanyChain of Custody…
CSA, FSC, SFI, PEFC all have it

Certified Forest

Certified timber

Certified Mill

Recycled Content

Product
Label
Certified MerchantCertified ProductCertification Body

SFI 2005- SFI
2009Annex 2

CSA
Z809

PEFC
Annex 4FSC SFMFSC CoC

Bureau Veritas
Certification (BVC)
KPMG Performance
Registrar, Inc.
NSF International
Strategic Registrations
PricewaterhouseCoopers
LLP
QMI
SGS Systems & ServicesCertification

The trend is for certification bodies to be qualified/accredited to deliver a variety ofcertifications which enables a one stop shop at a negligible cost increase.

Matching Chain-Of-Custody
Certifications with Labels•••

CSA certified forest + PEFC CoC =SFI certified forest + PEFC CoC =Any PEFC endorsed standard(s) + PEFC CoC =• FSC certified forest + FSC CoC =______________________•

CSA certified forest + PEFC CoC =__________________________________••

SFI certified forest + SFI CoC =SFI certified forest + PEFC CoC =Area of Forest Certified Worldwide

10%
90%

CertifiedForests
UncertifiedForests

6. Supporting Policy38

FPAC Sustainability Initiative39

FPAC Commitments
Certification (2002)•All FPAC members with woodlands operations in Canada are committed to achieve
third-party sustainable forest management certification on those woodlands by
December 31, 2006.

Traceability (2006)•FPAC members commit to tracing their fibre supplies back to the forest area oforigin, by the end of 2008, to assure customers that the wood fibre they are using
comes from legal sources.”

Illegal Logging (2006)•…”Purchasing and using wood coming only from legal sources, and firmlycondemning corruption and criminal activities related to illegal logging.

New Allocation (2006)•Planning for conservation of ecological and cultural values prior to new forest
tenures in unallocated part of Canada’s boreal forest40

A Unique Climate Change Commitment“Forest Industry carbon-neutrality by 2015
without the purchase of carbon offset
credits”
Joint FPAC/WWF Press Release
October 31st 200741

Canadian Guarantee ?
•All harvested forests are promptly regenerated and do not contribute todeforestation•Forest practices are third party independently certified to the highest
international standards•Conservation planning precedes new harvesting
Companies are committed to protect wildlife and biodiversity
Wood/fibre from Illegal logging is prohibited
Suppliers use all available recycled content
Companies have reduced GHG emissions and improved water quality
Environmental practices are transparent and reported publicly•••••Legality and Sustainability Assurances
Legislation
TenureRegulation
Enforcement
Certification
Supporting Policy=Legality and Sustainability in Canada43Moving ForwardSUSTAINABILITYCOMPETITIVENESSSOCIAL LICENCEPARTNERSHIPPROACTIVE
44

Information Centre
Customer Web Page: www.fpac.ca

www.canadawood.jp
Fact Sheets on Key Issues• Air Quality• Boreal Forest• Certification• Climate Change• Green Procurement/Financing• Harvesting Methods• Illegal Logging• Old Growth• Recycling• Water Quality• Woodland Caribou
Publications• Customer Newsletter• Buyers Guides (Wood & Paper)

45

FPAC Members