Informing NGOs, MEPs, Member States, the European Commission and the media.  Issue 91, December 2004.

Principles for partnerships on illegal timber

Amid ongoing talks over the EU’s timber licensing scheme (see FW nos. 85-89), FERN, Greenpeace and WWF have presented their ‘Principles for Partnership Agreements’ to the EU Council Working Group on the issue.

The presentation, which was made during the Group’s November 2004 meeting in Brussels, comes after months of discussion over the EU’s draft Regulation, which will underpin a licensing scheme to control imports of illegal timber. While the EU envisages a scheme that will allow only licensed timber from partner countries into the EU, what constitutes illegally sourced timber, and how legal timber will be licensed, will be detailed in the Partnership Agreements the EU aims to develop with partner countries.

NGOs firmly believe that the success, or otherwise, of the EU plans will depend largely on the content of these agreements. Hence, FERN, in close co-operation with Greenpeace and WWF, has developed these Principles,¹ which focus on three different levels: 1) the process for developing a Partnership Agreement; 2) principles for responsible forest management; and 3) principles for the licensing scheme.

The NGOs argue that to be effective, any such agreements must be:

·      based on clear analysis of existing forest-related laws, including customary laws;

·      developed in proper consultation with all stakeholders – particular environmental NGOs and indigenous organisations;

·      supported by the development of a usable and just definition of legality.²

The NGOs also argue that producer countries should be required to license all timber products exported, and to all countries – not just to the EU. Otherwise, as prior analyses have shown,³ the effects of any restrictive measures will be of limited value.

FERN, Greenpeace and WWF will shortly issue another proposal, developed by legal experts, for a Regulation to halt the import of certain timber and timber products from non-partner countries.

 

1 Available at: www.fern.org.

2 Lessons can be learned from this process as carried out recently in Indonesia. See: Nature Conservancy (2004)

   Strengthening the social component of a standard for legality of wood origin and production in Indonesia. Available at:    

    www.illegal-logging.info

3 See, for example, Indufor’s assessment of EU FLEGT available at: www.illegal-logging or FERN’s 2004 discussion

    paper, Licensing of Legal Timber: Logic and Design of an EU Scheme, available at: www.fern.org

ECGD faces legal challenge over bribery rules

The UK’s Export Credit Guarantee Department (ECGD) is currently facing a legal challenge against watering down its new rules against foreign bribery. The challenge has been brought by the UK’s independent campaigning organisation, the Corner House.

In order to comply with international treaty obligations, the UK enacted, in 2003, new legislation that prohibited companies from bribing foreign officials abroad. However, following fierce opposition from British-based businesses – led by Rolls-Royce, the Airbus Consortium and BAE Systems – the rules were relaxed so as to meet the companies’ objections. Accusing the ECGD of “a spineless and disgraceful” policy in relation to industry pressure, campaigners from the Corner House launched the legal challenge in November 2004. For the last five years the ECGD has not refused a single application on the basis of concerns of bribery and corruption – despite of a string of recent allegations of overseas bribes involving British exporters. This lack of tough rules to stamp out corruption and bribery is, unfortunately, characteristic of most European ECAs, with the ECGD still leading the field within the EU.

Development Aid

Following the Commission’s September 2004 proposal to simplify EC development assistance (see FW no.90), the EU and civil society have started to organise a debate around the implications of the proposal for developing countries. The proposal, as it stands, is open to allowing a shift of funds away from the poorest countries and towards those in which the EU has a clear economic and/or political interest.

The European Parliament has already set up a Working Group on the issue. Meanwhile, as Development Commissioner Louis Michel is getting used to his new office, civil society has organised for a wide and coherent evaluation of the proposal. The result so far: a joint letter of concern to the EU Presidency in mid-November, followed by a joint NGO statement released this month¹.

For those who find the whole discussion incomprehensible, FERN has produced a Briefing Note clarifying the changes introduced by the new proposal. The document² spells out basic recommendations to consider in future debates.

 

1 Available at: www.fern.org

2 Available at: www.fern.org

Banca Intesa pulls out of pipeline

Following evidence of grave safety failures and incompetence connected with BP’s hugely controversial Baku-Tbilisi-Ceyhan (BTC) oil pipeline, Italy’s largest bank, Banca Intesa, recently announced its intention to sell its US$ 60 million stake in the project.¹ The move follows increasing pressure, on finance institutions involved in the deal, from a coalition of human rights and environmental organisations. The NGOs have been raising concerns over this deeply flawed project since it was first conceived in the early 90s.

Prior to Intesa's decision, experts testified, before an Inquiry Committee of the UK Parliament two weeks ago, that the safety coating chosen for the Georgian and Azeri sectors of the pipeline will not be sufficient, leaving the pipeline open to corrosion, leakages and, possibly, explosions. The pipeline, which passes through several areas of outstanding natural beauty on its way to delivering Caspian oil to Western markets, has been supported by financial guarantees from British, Italian, Japanese and American export credit agencies (ECAs).

 

1 Financial Times. 1 December 2004

To bind or not to bind – legally

Governments have been debating the pros and cons of a forest convention since before the UNCED meeting in Rio in 1992. But so far to no avail. In fact, some argue, these discussions have actively prohibited progress in implementing other international agreements relating to forests.

Now, as we face the run-up to the next meeting – the last in this format – of the United Nations Forum on Forests (UNFF) in May 2005, the coming months will see an increase in governmental discussion on the need, or otherwise, for a Legally Binding Instrument (LBI)¹ on forests.

Environmental and social NGOs would, of course, welcome some legally binding agreement on forests – if it contained the right language; including recognition of customary rights of local and indigenous peoples, and regulation of the forestry industry. Unfortunately, it has always been clear that the political will required to tackle these issues under an LBI will be lacking; hence widespread NGO opposition to an LBI which would, in practice, prove meaningless.

In the EU, the old position was in favour of an LBI – though without specifying what should be in it. A new position, following ongoing discussions, is not expected before January, with a formal Council position not anticipated before April. Many, however, do seem to have understood that an LBI is not the way forward, with rumours that even pro-LBI Canada is losing interest in this approach.

In preparation for the months ahead, WWF has published ‘The International Arrangement on Forests at the Crossroads: Tough Choices Ahead’ spelling out the failures of the current system and presenting ways forward.² But given that, among NGOs, only FERN-FPP³ provided comments on the evaluation of UNFF – while among governments only 27 have sent in national reports – one wonders about the value of the next important meeting in this process: an ‘informal consultation’ to further discuss the options to go forward, to be held in Mexico at the end of January.

 

1 Past discussions have focused specifically on a Con-vention; today discussions focus on LBI’s – which may be either a Convention or some other legally binding agreement.

2 Available at: www.panda.org/downloads/forests/iaftoughchoices30aug04.pdf

3 Forest Peoples Programme

NEWS IN BRIEF

Nigerian NGOs demand EU support: Nigeria’s Rainforest Resource and Development Centre (RRDC) is urging the EU to take action against illegal logging in the country’s Cross River State, a region known for its unique biodiversity. The case was brought forward by Odey Oyama, RRDC’s Executive Director, during a November meeting (organised by FERN and Both Ends) with the EC Nigerian Desk, and exposed in a joint letter to the EU Presidency (available at: www.fern.org/aid/platform.htm).

NGOs unite against illegal logging: A unique alliance of NGOs – including WWF, Conservation International, Greenpeace and the Rainforest Foundation – have jointly called for a halt to the expansion of logging in the rainforests of the Democratic Republic of Congo (DRC). The groups maintain that no expansion in logging should be allowed until the Congolese authorities comply with strict conditions on issues such as community access and indigenous rights.

For more information contact: simonc@rainforest.uk.com

Striking for indigenous rights: Following a high-level meeting with UN representatives, six indigenous protesters ended a 4-day hunger strike at the UN in Geneva. The strike was in protest at the UK and US governments’ refusal to recognise collective rights, which are essential to the survival of tribal and indigenous peoples. These and other governments are effectively blocking the progress of the 1994 UN Declaration on Indigenous Rights.

For more information contact Miriam Ross at: mr@survival-international.org

New FERN publications: In addition to its new publication on development aid (see front page), FERN is pleased to announce two new briefings produced together with Taiga Rescue Network: Forest Focus, which forms part of a series of briefings on EU legislation relating to European forests; and ENA-FLEG: a key task for civil society, which outlines the needs and possibilities of the Russia FLEG process, the latest international process to start in the global fight against illegal logging.

Forest Agenda

6-17 December: Conference of the Parties to the Climate Change Convention (COP10). Buenos

Aires, Argentina

13-18 December: Thirty-seventh session of the International Tropical Timber Council, Yokohama, Japan

25-28 January: Country-led initiative on the future of the international arrangement on forests for UNFF, Mexico

26-30 January 2005: World Social Forum, Porto Alegre, Brazil

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.