Aimin WangAimin Wang

Sustainable Forestry Program OfficerSustainable Forestry Program OfficerGlobal Environmental InstituteGlobal Environmental Institute

April 26April 26ndnd 2007 2007

"Regulating Chinese Forest-related Enterprises" "Regulating Chinese Forest-related Enterprises"

Encouraging the Chinese Government to Take an Act Encouraging the Chinese Government to Take an Active Role in Sustainable Forest Resource Use Abroadive Role in Sustainable Forest Resource Use Abroad

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ContentContent

Project backgroundProject background

Progress and activitiesProgress and activities

Conclusions and suggestionsConclusions and suggestions

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Chinese Resource Strategies OverseaChinese Resource Strategies Oversea

Shortage of natural resources: Shortage of natural resources: petroleumpetroleum, , minerals, minerals, foofood, and woodd, and wood

How should these overseas resources be used? How should these overseas resources be used? Sustain a peaceful and harmonious worldSustain a peaceful and harmonious world Import and encourage China’s “Going Out” Policy Import and encourage China’s “Going Out” Policy

China should take responsibility for the practices of ChiChina should take responsibility for the practices of China’s businessesna’s businesses

Increased economic boycottsIncreased economic boycotts ：： antianti-dumping-dumping, , trade bartrade barriersriers and and trade protectionismtrade protectionism

BackgroundBackground

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Chinese Timber Supply and DemandChinese Timber Supply and Demand

China is becoming one of the main wood consuChina is becoming one of the main wood consuming and ming and processing countriesprocessing countries

China’s wood resources:China’s wood resources: For its population, China has only 20% of the For its population, China has only 20% of the

world’s average per person forest areaworld’s average per person forest area Wood consumption per person in China is onlWood consumption per person in China is onl

y 35% of the world average.y 35% of the world average. National forest protection policyNational forest protection policy ：： Six national fSix national f

orest programs since 1998orest programs since 1998 Over 50% of wood demand in China is met by imOver 50% of wood demand in China is met by im

porting wood from overseasporting wood from overseas

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Chinese Forest Issues OverseasChinese Forest Issues Overseas

Enterprises’ “Going Out”Enterprises’ “Going Out” ：： Illegal logging and Illegal logging and illegal importing (Southeast and Northeast Asia)illegal importing (Southeast and Northeast Asia)

Negative impact on China’s international image Negative impact on China’s international image and the reputations of China’s enterprisesand the reputations of China’s enterprises

The issue remains at the NGO and bilateral stage. The issue remains at the NGO and bilateral stage. China needs to take a more active roleChina needs to take a more active role

OptionsOptions ：： Passive sanctions Passive sanctions vs.vs. self-disciplineself-discipline by by

enterprisesenterprises Short term actions Short term actions vs.vs. long term management long term management

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Resource Use and CSRResource Use and CSR

Sustainable resource use must be encouraged through Sustainable resource use must be encouraged through Compensation Concession Agreements: Public Compensation Concession Agreements: Public products, altruism, CSRproducts, altruism, CSR

Corporate social and environmental responsibility must Corporate social and environmental responsibility must be encouraged. It doesn’t happen on its own.be encouraged. It doesn’t happen on its own.

Options: government supervision and social pressureOptions: government supervision and social pressure International experience: regulation, incentives, CSRInternational experience: regulation, incentives, CSR

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Project ObjectivesProject Objectives

Analyze Chinese forest enterprises’ Analyze Chinese forest enterprises’ exploitation of overseas resources, research exploitation of overseas resources, research international experience and strategies for international experience and strategies for these issuesthese issues

Investigate strategies for sustainable Investigate strategies for sustainable development of forest resources and development of forest resources and encouraging sustainable enterprisesencouraging sustainable enterprises

Analyze government policy, especially Analyze government policy, especially management and enterprise standards of management and enterprise standards of China’s “Going Out” policyChina’s “Going Out” policy

Explore models based on cooperation between Explore models based on cooperation between government and enterprisesgovernment and enterprises

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ActivitiesActivities

Background researchBackground research Study tourStudy tour ：： Cambodia, Myanmar, Cambodia, Myanmar,

Thailand Thailand Draft report and policy suggestions: Draft report and policy suggestions:

Diplomacy, legislation, guideline, Diplomacy, legislation, guideline, financing and regional forumsfinancing and regional forums

Workshops: research, consultation and Workshops: research, consultation and trainingtraining

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Conclusions Conclusions Research has focused on Research has focused on Cambodia, Cambodia,

Myanmar, ThailandMyanmar, Thailand

Illegal logging was rampant. It threatened forest health Illegal logging was rampant. It threatened forest health and timber resources.and timber resources.

Chinese enterprises have limited knowledge of local Chinese enterprises have limited knowledge of local legislation and legislation and conventions, especially those conventions, especially those relating to land use.relating to land use.

These countries are taking new interest on environment These countries are taking new interest on environment and biodiversity issuesand biodiversity issues

Enterprises want a formal competition environmentEnterprises want a formal competition environment Opportunities exist for bilateral cooperationOpportunities exist for bilateral cooperation

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Research ConclusionsResearch ConclusionsStrengthening supervision and regulation of Chinese enterStrengthening supervision and regulation of Chinese enter

prises:prises: Complete the “Complete the “Guidelines for Sustainable Forests” Guidelines for Sustainable Forests”

and the “and the “Management and Trade Guidelines”. The “SiManagement and Trade Guidelines”. The “Silvilculture Guidelines” is complete. lvilculture Guidelines” is complete.

Research and write Enterprise CSR ReportResearch and write Enterprise CSR Report Conduct trainings, require certifications, and establisConduct trainings, require certifications, and establis

h a system of regulating who can enter these marketsh a system of regulating who can enter these markets Government should encourage sustainable practices Government should encourage sustainable practices

and reward compliant companies through incentives and reward compliant companies through incentives such as financial supportsuch as financial support

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Conservation Concession Agreement

•The focus of the project:   

1.The conflict between biodiversity conservation and community livelihoods

2. The conflict between biodiversity conservation and development initiatives of enterprises

About CSR

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• Model Framework

1.Two agreements: A) Between GEI and Nature Reserves B) Between GEI and Farmers

2.A general finance model

Government matching fund

GEI Hydropower station compensation

ConservationConservation &

Development Fund

Rural development

GEI Socially responsible enterprises

Profit

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Thank youThank you ！！