CAETS 18FORESTRY CERTIFICATION

THE CHILEAN CASE

HERNÁN CORTÉS S.

Montevideo, Uruguay 12/09/2018

Forestry certification in Chile - 1

-Sources of information.

-Internet vs 58 years of experience

-Forestry in Chile 58 years back

Future forest engineers , in search of forest activities in Chile. Summer camp 1960, south of Chile

FORESTRY IN CHILE 58 YEARS BACK

Soil erosion, a serious problem

Forestry Certification in Chile - 2

• -1944-45, Mision Haigh triggers forestry/afforestation inChile.

• -First forest inventory with aerial photos as a base for mapping

• -The focus: Wood supply and its production potential. The findings; A serious and massive soil erosion problem in the center and south of Chile (Central valley and piedmont of costal range and tha Andes mountains )

• -Serious concern about sustentability of forest resources at that time. Afforestation of eroded soils, became a National Challange / National Goal

• Afforestation enjoyed cross acceptance and support at the national level

• Concrete actions: Aforestation plan at a national level, institutional development to suppot forest sector. (CONAF; Forest Research Institute; Forestry School U de Ch, Constitución and Arauco pulp mills State investments, taxes and subsidies incentives)

• From that time on the achievement of the chilean forest sector was measured by the number of hás planted every year.

Forestry certification in Chile - 3

• Plantations as a corrective action to soil erotion vs Pantation as a supplier of wood to the forest industry (during the 70ths).

• DL 701 (75% subsidy to afforestation) ; Authorization to export products at any state of processing. (1974)

• - Forest debate in Chile (plantation vs native forest)

• -Environmental and social ONGs engaged in a Market campain against our forest exports (critical case: woodchips exports)

• -Rio/Earth sumit: Sustainable management of forest resources in the world

• - Certification an alternative to diferentiate between “sustainable” forest operation from “unsustainable” forest operation. –

• Significant expansion of forest plantation in Chile (over 1.3 million Has by 1992)

Large scale forest plantation

Large scale forest plantation

Clear cutting at large scale

Deforestation

Exports of pulplogs/woodchips, legaly allowed (1974)

A solitary protester

Forestry certification in Chile - 4

- Certification the wrong instrument to avoid world’s forest resources devastation. (HCS 2002).- Certification, a powerful instrument to regulate the international market of forest products- Marginal participation of developing countries in the international market of forest products- Importance of firewood in developing countries- Plantation are not forest. Severe statement by some environmental groups

- Devastation of forest resources a consequence of rural povery of a significant % of the world’s rural population. Poverty requieres all our attention and full cooperation as members of the world community. (2002).

- Oji paper’s final ultimatum (2005). FSC, the only option. FSC the certification system with the highest credibility in the market. (is the certification system demanded by our customers)

- HCS’s vital contradictions.- Certification of COMACO using FSC Ssystem (2005)- Member of the Board of FSC Chile (2007)- Chairman of FSC Chile (2008)- The two most important forest Companies in Chile, CMPC and Arauco, decided to certify their respective forest

assets using FSC system. (2009).

Testimony of strong debate in Chile: Environmental and Social NGOs vs Forest Industry.

Forestry certification in Chile – 5: Why FSC?

• Democratic, independent, non governmental, not for profit organization promoting responsible management of the world’s forest.

• A membership organization, divided into three chambers, Economic, Social and Enviromental.

• There is no limits on the number of members but each Chamber is given iqual weight.

• All major decision of the association has to be approved by the three Chambers.

• The ultimate authority for the organization is a “General Assembly” of members, meeting every three years.

• FSC doesn’t certify directly. It “accredit” and “audit” independent “Certification Bodies” that woul do the forest companies’ certification under standards developed by FSC to implement its "Principles” and “Criteria”

• FSC certification is defined as a “process of continuos improvements”. (CAR system, Corrective Actions Required)

• Two kind of certificate will be defined: FM, Forest management. CoC:Chain of Custody.

FSC labels

FSC General Assambly 2014, Sevilla, Spain

Permanent Indigenous people’s Commitee

Voting stakeholder’s proposals

Forestry certification in Chile - 6

• FSC’s vision: World’s forest meet the social, ecological and economic right and needs of the present generation without compromising those of future generation.

• FSC’s mission: FSC shall promote environmentally appropiated, socially beneficial and economically viable management of the world’s forest.

• Environmentally appropiated: Forest’s biodiversity, productivity and ecological processes are maintain when managing and using forest resources

• Socially beneficial: forest management helps local people and society at large to enjoy long term benefits coming from the forest.

• Economically viable. Sufficiently profitable, without generating or, alternatively, compensating forest management externalities.

Forestry certification in Chile – 7

The core principles of FSC

1- Compliance with law and FSC principles

2-Tenure and Use Rights and Responsabilities

3- Indigenous people’s rights

4- Community relations and worker’s rights

5- Benefits from the forest

6- environmental impacts

7- Management plan

8- Monitoring and assesment

9- Maintenance of high conservation value

10- Plantations

Forestry certification in Chile - 8

FSC certification impact in Chile:

- Acces to the international markets

- Valuable dialog plataform between forest companies and their social environment

- Public consultation, heart of FSC certification. FPIC, (Free Prior and Informed Consent), In case of native communites

- Implementation of sustainable forest management

- Substitution of native forest has stop

- Restauration of native forest has been promoted Ecosystemic services

- Identification of High Value of Conservation forests

- Significant improvement of labor conditions

-ACCES TO THE MARKET

-Informing the local community-Public consultation, heart of FSC

Informing our neighbords about forest operations

Field tripwith our

neighbords

-Contact with local Mapuche comunities.

Land scape protection

Araucaria AraucanaThe holy tree of

Pehuenches

Recreation in the middle of a Second Growth native forest

Chile, Forest land (infor 2016)

• Forest plantations (Hás)

• Radiata pine 1.391.039 57.6%

• Eucalyptus 860.317 35.6%

• Others 162.852 6.8%

• Total 2.414.208 100%

• Native forest: 14.411.031 hás (1% forest exports)

• FSC certified forest:• 2013 508.213 hás• 2014 2.222.668 hás• 2017 2.278.629 hás

Chile, forest industrial installed capacity- Wood chips plants 200

- Sawmills facilities 1.101

- Panel and veener plants 30

- Pulp Plants 11

Production (1.000)

- Wood chips M3 11.634

- Sawnwood M3 8.455

- Panels & Veneers M3 3.180

- Pulp/Paper (Tons) 5.145

(Logs consumption M3 44.556)

MAPA project (ARAUCO); pulp mill

Investment: 2.350 million US$

New line 3 : 1.560.000 Tons/year

Line 2 + Line 3: 2.100.000 Tons/year

Effluent treatment: 120 million US$

4.5 to 8.3 thounsands labor employment during construction period.

FSC Future challenges• At this stage, Certification is an important instrument to keep our presence in the international market of

forest products. An important asset to be protected.

• How to get a better equilibrium, between the three FSC Chambers; Environmental, Social and Economic Chambers

• Te third party accreditation model need to be debated.

• Potential conflic of interest between paid certifiers/auditors and the Companies paying for the certification and auditing services. The relationship between client and certifier must be reviewed.

• Transparency of certification proccess. Public reports and mapping

• Certification is a mean not an end. Certification should not always come with the right to use a label. (process of continuos improvement)

• To improve public/comunities participation in the corresponding certification process

• To avoid, by all means, to return from the “cetification era” to the “activism era”.

THANKS