FLEGT and REDD+reflections from VPA negotiations

4 October 2011

Julia Falconer, European Commission, DEVCO C2

What is FLEGT ?

International concern over illegal logging and its impacts: undermining rule of law, costing millions, depressing global prices, causing environmental degradation & fuelling conflict.

EU response: Forest Law Enforcement Governance and Trade (FLEGT) action plan (2003) setting out supply- and demand-side measures to combat illegal logging:

Public and business purchase policies to source legal timber Support for Producer Country governments and industry Trade agreements between producer countries and the EU – VPAs Regulation to encourage EU businesses to know their supply chains

Voluntary Partnership AgreementA legally-binding trade agreement :

EU - Partner country Aim to work together to stop illegal logging

Objectives A system to verify legal compliance of all production License and audit assures markets of legal compliance EU customs block entry of non licensed timber from partner country

Contributes to : Good governance & transparency Policy and legal reform, incl. on land tenure, access rights Effective regulation, control, anti-corruption Capacity building : govt services, operators, CSOs Better capture revenues and rents

The challenge: Trade negotiation on sensitive, sovereign issues…. CorruptionGovernance and accountabilityContested rights to land and forest resources: Indigenous peoples rightsEffectiveness of judiciary and law enforcementDefinitions of legal standards and regulationsOften closely linked to political elite or militaryLinked to Conflicts and Human rights abuses Market access linked to effectiveness of governance

•Inclusion of stakeholders in clarifying &developing policy &law•Negotiated consensus between stakeholders •Clarity in legal framework•Simplified control systems- less opportunity for corruption•Verification (Evidence) of legal compliance linked to export•Independent audit •Publication of information on contracts, fee payment, revenue disbursement, audit reports, cases, etc•Stakeholder oversight committees/ councils

Strategies for Improving Governance in VPA

Unclear legal frameworks: land use & forest access

Insufficient information systems & transparency mechanisms

Corruption, ineffective law enforcement and judicial systems

Rights/livelihood risks to local communities

Good governance is crucial to fight against illegal logging, maintaining existing forests & reducing forest degradation &loss

Markets can influence governance

Limited capacities can be a challenge

FLEGT & REDD: common challenges

FLEGT & REDD common requirements

Multi-stakeholder processes (trust and clarification)

Credible Measurable Reportable Verifiable systems

Establishing buyer confidence (carbon and timber)

Control of international leakage and circumvention

Mitigation of unintended negative consequences on local communities

FLEGT & REDD: building synergiesOpportunities

Stronger political attention on forest issues Clarification of resource rights and tenure Strengthening of law enforcement and judicial systems

Potential areas of synergy: Build strong stakeholder platform- avoid recreating wheel Addressing the drivers of forest loss Addressing challenges of governance and illegality Building effective forest governance and management Designing and implementing robust and effective mechanisms for MRV Promoting harmonised aid delivery

Avoid conflict or competition: build ing from what exists

Key lessons from FLEGT VPA processes

Inclusiveness:Local NGOs / International NGOsPrivate sector treated as a partner (focus on trade)In Liberia, communities were directly involved

National negotiation in parallel with int’l VPA negotiations:Pressure to maintain momentum because of the bilateral negotiationsTime for government , civil society, private sector to form their opinion, engage in the process and build trust Opportunity to actually influence decision taking

Structured process and tangible outputsRoadmap, Agreement content, Implementation structures

Implementation challengesSustaining political momentum

FLEGT licenses (not yet)System developmentFormal negotiations underwayMoving to negotiationsPreparation, in-country consensus buildingIntroduction to VPAs

Congo C.A.R.

Malaysia

Indonesia

CameroonGhana

Liberia

FLEGT VPA partner countries

October 2011

Gabon DRC

Vietnam