Innovations to optimize
Sustainable pathways of tradedtropical timber and timber products
The 26th APEC-EGILAT WorkshopLima, 12 August 2024
Tetra Yanuariadi
Projects Manager
INTERNATIONAL TROPICAL TIMBER ORGANIZATION(ITTO)

Talking Points• Continuing pressures to tropical forests• ITTO’s long standing work to sustain tropicalforests• Innovations for sustainable tropical timber tradeTropical forests are central tosustainable development•

The sustainable harvesting, processing and trade of tropicaltimber and other forest products:✓✓✓•

When sustainably managed, tropical forests are:✓✓••supplies residential and commercial consumers worldwide,contributes to local and national economies, andenhances value of tropical forests—a key factor in reducing forest
conversion to other economic land uses.

healthy, productive and renewable ecosystems.
contribute to nature-based solutions.

Sustainably produced tropical wood has a wide range of uses
and is an essential for the transition to more sustainable andcircular bioeconomies.
The sustainable management of forests is of critical importanceto the 2030 Agenda for Sustainable Development and almost
all SDGs.

Despite their importance, tropical forest
are under pressure••

The world lost an estimated 10 million ha of forest (the sizeof the Republic of Korea) per year between 2015 and 2020:
Most deforestation occurs in the tropics:
✓✓
✓✓✓

•

competing land uses that produce higher/more rapid financial
returns (agriculture, energy, mining and infrastructure),
failure of market policies (don’t reflect the full value offorests),
illegal logging, fragmentation, food security, woodfuel/energy
needs,wildfires andclimate change.

Crucial to advert these threats.

Tropical forestry is misrepresented▪ Forest-based enterprises and international
trade add value to tropical forests & cancontribute significantly to sustainableeconomies and livelihoods.
▪ The share of tropical wood in major markets affected by the negative environmental imageof tropical wood and by its substitution by nontropical wood and non-renewable materials(plastics, non-wood laminates, concrete andmetals).
▪ Consumer markets - overlooking the significant
benefits of tropical timber as a renewable,
environmentally friendly resource.

ITTO’s mission▪ Promote the sustainable management andconservation of tropical forests.
▪ Promote the expansion and diversification oftrade in tropical timber from sustainably
managed and legally harvested forests.
ITTO—THE SOLE inter-governmental organization
focused entirely on tropical forest resources.
ITTO members (37 producers & 38 consumers)cover over 80% of global tropical forests andaccount for 90% of trade in tropical forest
products!

Long-standing work on market access,traceability, certification etc▪

▪

Updates on issues related to tropical timber market access andcertification are presented at ITTC sessions.
Technical reports conducted on:▪
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▪
▪
▪
▪
▪
▪

The impact of timber procurement policies
Uses and impacts of criteria and indicators for sustainable forest management
Review of electronic and semi-electronic timber tracking technologies
Assessment of major developments in technical and environmental standards
in selected major international timber markets
Analysis of global trends impacting on the relative competitiveness of tropicalwood products
The pros and cons of timber procurement policies
Developing forest certification
Many more …

www.itto.int/technical_report/

ITTO’s continuous updates on timber andtimber markets▪ Bi-monthly market updates – ITTO’s Tropical Timber MarketReport: www.itto.int/mis/.
▪ Biennial Review and Assessment of the World Timber
Situation: data on the production and trade of primary andsecondary processed wood products in 73 economies
worldwide (www.itto.int/annual_review)▪ ITTO Annual Market Discussions: The 2023 edition was
focused on current emerging international timber market
requirements▪ Success stories on SFM available on ITTO’s website andTropical Forest Update www.itto.int/top_stories/
www.itto.int/tropical_forest_update.

ITTO’s Strategic Priorities
2022-2026• Promote good governance and policy frameworks to enhancefinancing and investment in sustainable tropical forest
management, legal and sustainable forest product supply chains
and related trade• Increase the contribution of the tropical forest sector to national
and local economies and resilient livelihoods, including throughfurther processing and trade in tropical timber and other forest
products and Services• Reduce tropical deforestation and forest degradation, enhance
forest landscape restoration and the resilience of forest
ecosystems to climate change, and conserve forest biodiversity
and ecosystem services• Improve the quality, availability and timeliness of information on
tropical forest product markets, supply chains and international
trade, including challenges and opportunities related to market
access, expansion and diversification

Forest legality and sustainability
requirements• A key requirement ofsustainability―compliance with all legalframeworks.
• Forest governance and legality requirements
are meant to counter the negative impacts ofillegal practices in tropical forests.
• Greater need to demonstrate the legality andsustainability credentials of forest products.
• National and international
legislations/regulations require evidence ofthe legality of imported timber.
• More requirements are being faced by timber
producers.

Challenges to improve forest governance••••••

Demotivates good actors already implementing SFM
and complying with rules and regulations.
Puts a brake on forest investment.
Creates market distortions—illegal forest products
do not reflect the real value of sustainable and legal
timber and other forest products.
Diminishes government revenues through a lack oftaxation and other fees.
Hampers efforts to promote sustainability amongconsumers.
Possible negative impacts on the environment andthe livelihoods of forest-dependent communities.

ITTO’s APPROACH TO FOREST GOVERNANCE
Rationalize
policy & legal
environment

Promotestakeholder
participation

Improved
governanceImprove informationand knowledge base

Increase capacity toenforce rules andregulations

Increased capacity:

Pilot Programme Lines• Legal & Sustainable Supply Chains (LSSC)• Enhance tropical timber supply and value chains,from the forests to the market, to achieve legalityand sustainability.
• Capacities of legal and sustainable supply chain
enhanced, business collaboration and networking
facilitated:• Conservation of Biodiversity andEcosystem Services• Forest Landscape Restoration and Resilient
Livelihoods• Emerging Issues and Innovation

ITTO’s Legal Sustainable Supply Chains
Programme▪ Enhance tropical timber supply and value
chains, from the forests to the market, toachieve legality and sustainability▪ Facilitate the enhancement capacities oflegal and sustainable supply chain
enhanced, business collaboration andnetworking

Major international timber trade
regulations and their requirements
•
•
•
•
•
•••
•

EU Timber Regulation/EU Deforestation
Regulation
US Lacey Act Amendments
Australia Illegal Logging Prohibition Act
UK Environment Act
Revised Japan Clean Wood ActKorea
China
Viet Nam
CITES

EUTR
03.03.2013
EUTR enteredinto force

29.06.2023

EUTR applies

EUTR and EUDR apply
in parallel

18 Months

3 Years

EUTR continues to apply in case of:••30.12.2027
EUDR fully
replaces EUTR

30.12.2024
EUDR needs to beapplied

EUDR enteredinto force

10 Years

EUDR

Harvest before 29.06.2023
Placing on the EU market between 30.12.2024 und 30.12.2027

EUDR applies to all wood harvested from 29.6.2023

EUDR applies

Field innovations from ITTO projects••••

Provide tailored solutions for the conservation,
sustainable management and sustainable use oftropical forests.
Increase efficiency of operations and the uptake ofbest SFM practices.
Engage local stakeholders in their development andadvance SFM.
Can be easily replicated and scaled-up across thetropics:✓ More investments are urgently needed to encourageincreased uptake!

Timber traceability and wood identification—
innovations that creates trust across the supply chain•

Provide reliable information on the flow of forests products through thesupply chain:✓ improves SFM, forest governance and efficiency across the supply chain,✓ provides assurance of legality and sustainability,✓ facilitates monitoring and control of forest products and assists in combatting
illegal logging.

•Rapid evolution of timber tracking systems and timber identification
methods:✓ physical methods (barcoding, radio frequency, near-infrared spectroscopy—
supported by apps).
✓ chemical methods (DNA, stable isotopes).

•

Some examples of ITTO projects on timber identification and traceability:✓ Brazil: Mahogany identification using near-infrared spectroscopy.
✓ Cameroon: DNA tracking.
✓ China: Online platform to facilitate the flow of information on timber legality toSMEs in China; Blockchain.
✓ Guatemala: Barcoding supported by apps.
✓ Indonesia: Forensic identification.
✓ Madagascar: DNA tracking.
✓ Panama: Barcoding supported by apps.

Typical Timber Supply Chain

Software for forest managers•

In the Brazilian Amazon operators are required by law to follow approved
sustainable forest management plans:
✓✓
✓

•
•

The above generate a lot of data that needs to be processed.
An ITTO project developed software that speeds up and improves the forest
planning process by aiding the selection of harvest trees based on clear criteria,
providing better control over timber production, and enabling sustainable forest
management: BoManejo:
✓✓✓✓✓

•

a 100% forest inventory of the area to be logged in a given year,
specify the activities to be carried,
indicate the trees to be logged, with their geographic position, scientific name,diameter at breast height, height, and wood volume.

meets the data requirements of the forestry legislation,
enables forest managers to refine and adjust the criteria for selecting trees for felling,using combinations of parameters,
managers can quantitatively and qualitatively evaluate the volumes to be harvested
and interactively select the trees to be harvested,
generates reports and spreadsheets for submission to the government offices,
enables precise quantitative monitoring of tree felling, extraction and logtransportation, increasing managers’ ability to control production and avoid exceeding
cutting limits (and therefore penalties).

More: www.itto.int/project/id/PD452_07-Rev.5-F and www.embrapa.br/bommanejo

Forestry apps—innovations at our fingertips•

In 2022, an ITTO project in Indonesia launched an app to assist fireservices in the prevention and the suppression of wildfires:✓ the app is supported by a SMART Patrol Information System that records
and reports real-time action of fire-prevention patrols based on 88parameters,✓ the app is being used by patrol teams in Kalimantan, Nusa Tenggara,Sulawesi and Sumatera.

•In Guatemala, an ITTO project developed in 2023 a smartphone app to
calculate log volumes: CUBIFOR:✓ it requires only a photograph of the stack of logs (or other wood product)
and the average width and length of the stack to estimate volume,✓ It has strengthened the capacity of forest companies to control theirinventories, improved the, and generally advanced sustainable forest
management in the country.

Guatemala’s timbertraceability system• It was developed to automate forest-related processes,
minimize response times, standardize forms, clarify
procedures, avoid data duplication, minimize humanerror, limit officers’ discretionary powers andbureaucracy, and meet the deadlines established bylaw to process requests and applications.
• It consist of 3 information systems:– Electronic Forest Enterprises Information System (Sistema
Electrónico de Información de Empresas Forestales—SEINEF);– Electronic Forest Administration System in Protected Areas(Sistema Electrónico de Administración Forestal en ÁreasProtegidas—SEAF-CONAP)– Electronic Forest Management System (Sistema Electrónico
para la Gestión Forestal—SEGEFOR—for forests outside
protected areas)

Guatemala’s timbertraceability system

China’s online platform on
timber legality• The platform addressed the lack of understanding among
SMFEs of:– procurement policies for imported tropical timber,– application of such policies, and– appreciation of the market risks by the use of unsustainably
or illegally harvested tropical timber• SFMEs normally buy imported timber in the local market,
therefore they were not aware of regulations such as
EUTR/EUDR or Lacey Act• SFMEs are also confused by the various trade policies ofimporting countries and information sources are limited
and third party verification systems are too expensiveChina’s online platform on
timber legality• the Forest Products Index (FPI), is a platform for
information exchange between the private sector and thegovernment:– Provides detailed on the production of timber products such as
veneer, fibreboard, facing paper and flooring– Provides data on imports and exports in timber markets important
to China, such as those of the United States, the European Unionand Japan– Provides a modern means by which stakeholders—industry,government agencies, research institutions and associations—can share information on timber procurement and sustainability
and engage in a dialogue on these issues– Government agencies are also using the FPI to gauge trends inthe sector.

Strengthening forest governancein Panama•

Project output was the establishment of a forest monitoring andverification system (Sistema de Trazabilidad y Control Forestal/STCF) for
preventing illegal logging•

STCF enabled the monitoring of flows of illegal timber from both naturaland planted forests through storage yards and processing facilities towholesalers•

Streamlined the issuing of permits and the clearing of shipments alongtransport routes•

Created more transparency in the management of forest resources,
fostering its acceptance among users and other stakeholders

To conclude•

Innovations and technological advancements are:✓ improving SFM, expanding FLR and the sustainable use of a wide-range offorest products,✓ advancing forest governance and institutional development,✓ contributing to the development of the forest sector and enhancing thecontributions of tropical forests to sustainable development.

••••

There is no shortage of inventiveness—more investments and incentives areneeded to facilitate their uptake and further development.
ITTO’s role is to support these stakeholders in their efforts and to spread thebest innovations for the benefit of communities worldwide.
Tracking systems need to be self-sustained in terms of funding so they canremain relevant, updated and operational
Timber tracking systems assist in identifying (i)legal products, and do notsubstitute good governanceTo conclude• Implementing tracking systems involve many stakeholders, the key tosuccess relies in understanding their reality and in creating mutual
benefits so that changes in practices may be accepted• Design and pilot testing is extremely important so that the systems
may be user-friendly while fulfilling its purpose• Tracking systems should be supported with appropriate and stablepolicies• Appropriate levels of confidentiality and protection should beestablished, so that stakeholders may be comfortable in using thesystems and sensitive information may remain confidential• Socialization and training in the use of tracking systems is essential for
their adoption

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WORK WITH US!
Global Legal and Sustainable
Timber Forum
11–12 Sept 2024, Macao SAR, China
www.itto.int
tetra@itto.int