Informing NGOs, MEPs, member states, the European Commission and the media.  Issue 86, July 2004.


Dutch TTF backs NGOs on illegal timber

The Regulation to control imports of illegally sourced timber from specific partner countries is now in its final stages of preparation and could still be completed before the end of the summer. But while the Commission has stated that this Regulation’s legal basis should be article 133 (commercial policy) of the EU Treaty, the European Parliament, together with some member states, has put forward the case for it to be article 175 (environment). While this may not seem to be particularly important to those unfamiliar with EU process, this discussion is actually of great significance: article 133 will not allow the Parliament to amend the Regulation, instead giving full power to the Commission for its finalisation and implementation. And amending the Regulation – as it is currently envisaged by the Commission – may be essential given the recent findings of impact studies on the proposed licensing scheme. These studies (see FW no. 85) have revealed that the scheme as it stands is unlikely to have much – if indeed any – positive impact on the ground. There also remain doubts as to whether agreements between the EU and wood exporting countries can help to bring more socially just forest laws in those countries. NGOs have stated on several occasions that only a Regulation enabling customs authorities to take action against all illegal timber imports would make any sense – a position even supported by the Dutch Timber Trade Federation, which has just signed a joint statement with Dutch NGOs asking for such legislation.[1] In a parallel development, a process to define ‘legality’ has now been concluded in Indonesia. The resulting definition is based on seven principles, 18 criteria and numerous sub-criteria as well as a detailed guidance note.[2] It will be field tested in Indonesia some time this summer. If positive, the outcome of these tests will be critical in steering similar processes in other countries. If negative, a lot more thinking will need to be done to ensure that trade activities focused on legality can genuinely contribute to the wellbeing of the world’s forest and its people.

 

1 See: www.fern.org

2 http://www.illegal-logging.info/papers/Z%20Introduction%20and%20Principles.htm#Principles


CDM projects: Plantar still in the spotlight

Cologne’s Carbon-Expo Trade Fair (9-11 June) saw representatives of the Rural Worker’s Trade Unions from Minas Gerais, Brazil, voice concerns that the Kyoto Protocol’s Clean Development Mechanism (CDM) was nothing more than a means of greenwashing the expansion of monoculture tree plantations in Brazil. The Brazilians presented evidence showing how two plantation projects – both of which are aiming for approval as ‘clean development’ projects – have contributed to environmental degradation and social tensions. The projects – Vallourec & Mannesmann do Brasil and Plantar S/A – apparently pose a serious threat to the livelihoods of small farmers, who have seen their fields dry up as industrial eucalyptus plantations mop up critical local water supplies. The trade union representatives once again urged investors in the Plantar project – sponsored by the World Bank Prototype Carbon Fund (PCF) – to exclude the plantation from the final list of funded projects.[1] Meanwhile, a side event co-organised by Friends of the Earth Germany (BUND) and FERN also revealed that the Plantar project has yet to obtain a letter of approval from the Brazilian Government. Such a letter is one of the formal requirements for projects seeking CDM approval. Whilst project proponents have obtained a letter of ‘no objection’, a representative from the Brazilian Government pointed out that “at this point Plantar is only a PCF project – not a CDM project – because it does not fulfil the requirements of the Brazilian Government”. The apparent lack of full approval by the Brazilian Government casts further doubt on the rigour with which PCF projects are scrutinized. And for FERN this is one more, in an already long list of reasons, for PCF investors to drop the Plantar project from the final project list.

 

1 The PCF is expected to decide on the final list of projects, which will pursue CDM registration, in the coming months. Not all projects currently in the PCF portfolio will remain in the final list. See also: FW no. 76

 

EU Forest Strategy: latest developments

At the 14 June meeting of the “Advisory Committee on Forestry and Cork”, the Commission presented its “First Draft for the Preparation of the Commission Staff Working Document” on the implementation of the European Forestry Strategy”.[1] The paper provides a useful overview of the measures that member states have taken towards implementing the 1998 Strategy. However, it is clear that the Commission’s Communication on the implementation of the Strategy (which is expected later in the year, and which the working paper is meant to prepare and support) will have to go far beyond the descriptive character of the new paper. In responding to the draft report, FERN stressed the absence of critical analysis noting that the forthcoming Communication must include an assessment of the impact of various measures listed in the staff working paper.[2] It should also promote best practice, spelling out clear priorities for the implementation of measures that had a demonstrable positive impact on forests and forest biodiversity. The Commission invited comments on the draft presented at the 14 June meeting; a revised version of the document will be tabled in October.

 

1 Available from FERN

2 Draft response available from FERN


EIR
story nearing its end

With funding for fossil fuel projects outweighing that for renewables by a ratio of 22 to 1, [1] no-one can really argue that the World Bank is serious about either tackling climate change or supporting renewable energy projects. So when a significant series of recommendations of the World Bank’s Extractive Industry Review (EIR) were put forward last year they were welcomed by many NGOs across the world. The recommendations include halting funds for oil projects and developing strict rules for free, prior and informed consent. Now, in the latest stage of this process, the World Bank has released its “Draft Management Responses to the World Bank Group Extractive Industries Review”, inviting the public to comment.[2] However, as expected, the response accepts neither the phasing out of financing fossil fuel projects, nor the right of indigenous peoples and local communities to consent to projects. Instead it proposes that “free, prior and informed consultation leading to broad community acceptance” be the accepted standard. Even outside the NGO world, scepticism about whether extractive industries can be made to work effectively and durably for the poor is growing. Indeed, the Financial Times notes that: “the fact that these industries have systematically helped relieve poverty in countries that do not already have somewhat successful economies and the rule of law, still needs to be proven”. The Bank’s Board is expected to give its final verdict within 30 days of 21 June.

 

1 FoE et al (2002) Marketing the Earth. The World Bank and Sustainable Development. p16

2 Available at: www.worldbank.org/ogmc


Germany sued

15 June saw the launch of a potentially significant legal case against the German Government. Initiated by two NGOs – Germanwatch and Friends of the Earth Germany (BUND) – the case challenges the Federal Ministry of Economics and Labour (BMWA) to disclose information on the contribution to climate change of international projects backed by the German Export Credit Agency (ECA), Hermes AG.[1] Hermes is a public agency providing government-backed guarantees and investment insurance to German corporations seeking to do business in developing countries or emerging markets that are considered too risky (either politically and/or economically) for conventional corporate financing. In its bid to secure export opportunities for German companies, Hermes provides billions of dollars of funding for energy, mining and transport projects around the world. Given the greenhouse gas-intensive nature of many of these projects, Germanwatch and BUND are campaigning to assess the impact of German exports on climate change. To this end they have requested information on all Hermes-backed projects on energy production dating back to 1997, when the Kyoto Protocol was adopted. The NGOs note that under the Environmental Information Act of the Federal Republic of Germany, [2] Hermes and the Government are obliged – yet so far refuse – to disclose such information .

 

1 See: www.germanwatch.org/rio/herbpe04.pdf

2 Umweltinformationsgesetz des Bundes (UIG), transposition of the EU Directive 90/313 on access to environmental information.

 

NEWS IN BRIEF
European Constitution

On 18 June, EU member states adopted their new Constitution. Although unavailable for some 10 days on the Commission’s website, FERN found the final text’s full 249 pages on the EUABC website of Danish MEP Jens Peter Bonde. While the new Constitution has retained language on sustainable development and European integration, this now appears in an arguably less prominent place. More that 80% of the 25 member states must now ratify the new Constitution within the next two years before it can enter into force.

 

Forest Agenda

20-23 July: 36th Session of ITTC. Interlaken, Switzerland

22-24 July: Global Forest Coalition meeting. Interlaken, Switzerland

26-30 July: UN Conference for the negotiation of a successor agreement to the ITTA 1994. Geneva, Switzerland

2-3 September: NGO strategy session on ECAs. Brussels, Belgium

 

EU Forest Watch is published by FERN, the forest campaign group focusing on EU policy.
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PHOTO: Kakamega Forest.
Half of Kenya’s only tropical rainforest has already been lost. What is left provides a unique sanctuary for biodiversity and a vital resource for local people, many of whom depend on it for fuel, medicine and food.
Credit: A. Arbib.