Commission staff working document accompanying the proposal for a Regulation of the European Parliament and of the Council determining the obligations of operators who make timber and timber products available on the market  - Summary of the impact assessment - Report on additional options to combat illegal logging {COM(2008) 644 final} {SEC(2008) 2615}
Date: 2008-10-17
Institutions: European Commission
Subjects: exploitation of resources, international trade, pulp and paper industry, sustainable development, trading operation, wood industry

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 17.10.2008 
SEC(2008) 2616 

COMMISSION STAFF WORKING DOCUMENT 

accompanying the 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

determining the obligations of operators who make timber and timber products 
available on the market  

Summary of the Impact Assessment 

Report on additional options to combat illegal logging 

{COM(2008) 644 final} 
{SEC(2008) 2615} 

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DG ENV 
Lead DG: 
Other involved services: 

DEV,  AGRI,  ENTR, 

SJ, 

SG,  TRADE,  MARKT 

Agenda planning: 2007/ENV+/023 

The report commits only the Commission's services involved in the preparation and the text is 
prepared as a basis for comment and does not prejudice the final form of any decision to be 
taken by the Commission 

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EXECUTIVE SUMMARY 

This report presents possible options with respect to further policy or legislative options for 
measures  to  address  the  introduction  of  timber  and  timber  products  to  the  EU  market 
originating from illegal logging.  

The European Community policy regarding illegal logging and related trade was set out in the 
Forest  Law  Enforcement,  Governance  and  Trade  (FLEGT)  Action  Plan  which  includes  a 
number of measures to ensure that timber and wood products imported into the EU have been 
legally harvested or manufactured from legally harvested timber.  

One of the key measures proposed by the Action Plan is a licensing scheme for the prevention 
of  illegal  logging  and  related  trade  coming  into  the  European  Union  (EU).  The  licensing 
scheme  would  be  implemented  as  part  of  the  Voluntary  Partnership  Agreements  (VPAs), 
which are being negotiated with a number of countries. 

The VPA approach is considered promising but it is recognized that it may have limitations. 
The  EU  FLEGT  Action  Plan  therefore  makes  provisions  for  an  analysis  of  additional 
measures,  which  could  enhance  the  EU’s  efforts  to  eliminate  imports  of  illegally  harvested 
timber  and  timber  products  to  the  EU  market.  A  total  of  five  options  have  been  identified, 
compared to the "baseline" scenario (continuation present FLEGT VPA approach). 

(1) 

(2) 

(3) 

(4) 

Expansion of the FLEGT VPA approach  

Voluntary measures by the private sector further developed  

Border measures to prevent the importation of illegally harvested timber  

Prohibition on the placing on the EU market of illegally harvested timber  

•  Sub-option  4A:  Legislation  which  prohibits  the  trading  and  possession  of  timber  and 
timber products harvested in breach of the laws of the country of origin (i.e. where trees 
harvested) 

•  Sub-option  4B:  Legislation  which  requires  that  only  legally  harvested  timber  and  timber 

products be placed on the market  

(5) 

Legislation which requires due diligence by all timber traders to ensure that they trade 
in legally harvested timber. 

The  report  defines  the  problem  of  illegal  logging  and  the  important  economic  (loss  of 
revenues for third countries or unfair competition to the industry), social and environmental 
damage (loss of forests and biodiversity, other environmental impacts). It furthermore gives 
an overview of the production of timber and timber products globally and within the EU as 
well  trade  figures  globally  and  imports  into  the  EU.  Estimates  have  been  made  on  the 
proportion  of  illegally  harvested  timber  (being  not  harvested  in  accordance  with  the 
applicable legislation) and the associated trade.  

The  impact  of  all  policy  options  on  the  reduction  in  illegal  logging  in  the  EU  and  non-EU 
countries have been assessed as well as the economic impacts (in particular regulatory costs 
involved for the government sector), costs for the private sector and trade impacts in both EU 

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and  non-EU  countries)  and  social  (employment,  other  social  factors)  and  environmental 
impacts.  

The  largest  impact  on  a  reduction  in  illegal  logging,  assuming  that  the  measures  are 
implemented  effectively,  can  be  found  in  options  4A,  4B  and  5.  The  unit  costs  of  legality 
control  (in  Euro/m3)  are  rather  low  in  all  options,  the  differences  are  attributable  to  the 
variation  in  implementation  arrangements  (e.g.  third-party  verification  may  be  included  or 
excluded). Option 4b prohibiting the placing of illegal timber on the EU market involves in 
particular high costs for the private sector, while the regulatory costs are the highest in option 
3.  

The  report  indicates  that  the  latest  option  5  "due  diligence",  developed  by  combining  the 
positive elements of option 2 (voluntary measures by the private sector) and options 4A and 
4B  (enforceability  through  the  need  for  burden  of  proof)  would  be  most  effective  of  the 
options assessed. It would result in a reduction in illegal logging without the introduction of a 
high cost systematic control system and considerable enforcement problems which might be 
expected under several other options (in particular options 4A and 4B). It will serve as well as 
an  incentive  for  sourcing  of  timber  from  countries  with  FLEGT  Voluntary  Partnership 
Agreements  or  for  timber  covered  by  valid  CITES  (Convention  on  International  Trade  in 
Endangered  Species)  permits,  since  this  would  provide  a  high  degree  of  certainty  for 
operators and exporting countries involved. 

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