12
01 Spring 2014 ETTFNews Spring 2014 Key moves at GTF The new Global Timber Forum (GTF) continues to evolve, with the launch of its website and an online fact-finding survey of timber industry bodies worldwide. It has also secured funding from the UK Department for International Development (DFID). The GTF was first unveiled at the Global Wood Mart in Malaysia in 2012. Its aim is to become an international networking and communications hub for exchange of information and best practice. Its role will also be to identify key issues impacting the timber market's progress, develop solutions, and provide a global voice for the sector’s views and interests to decision makers. According to GTF facilitator Rachel Butler, the initiative is gaining international support following its summit and roadmap launch at the Rome headquarters of the Food and Agriculture Organisation of the UN last year. The event itself attracted delegates from over 40 countries. The website, www.gtf-info.org, went live earlier this year with the launch of the survey, targeted at industry bodies across the sector, from forest to retail. “In a sector that remains fragmented and dominated by small to medium sized enterprise, the survey’s goal is to collate information to facilitate communication and ultimately co-ordinated, effective action on a range of issues,” said Ms Butler. “Among other areas it will look at timber industry involvement in inter- governmental and NGO initiatives, constraints to timber business activity and skill deficiencies.” She said that the ‘significant’ new UKDFID funding will underpin awareness raising of the GTF’s role and accelerate website development. The latter will include discussion forums, news and events listings, links and information on the GTF membership network. 02 Belgium beats certification target 03 Finnish trade’s new website goes live 04 Dutch tackle certified timber bottlenecks 05 ETTF welcomes Indonesia’s FLEGT VPA ratification 06 UK’s Wood for Good launches timber construction campaign 07 Danish federation’s building products show a hit 08 Indonesian and Ghanaian FLEGT VPA awareness events held in London 09 Viewpoints from Malcolm Scott of the New Zealand Imported Tropical Timber Group, Cees de Jager of the North American Softwood Lumber Board, and Kim Carstensen of the Forest Stewardship Council 11 Latest EU timber trade flow analysis and statistics from ETTF analyst Rupert Oliver Contents The EU Timber Regulation (EUTR) has been effectively implemented and the timber trade has coped well with it across much of the EU. But it remains a work in progress and more effort is needed from the trade and national authorities to ensure uniform enforcement. These are ETTF and industry media conclusions a year after the EUTR was introduced. A report on implementation of the Regulation in German trade magazine Euwid found major variation in organization and awareness of responsibilities among EUTR enforcement agencies, or Competent Authorities (CAs), in different countries. Some were well-resourced and already undertaking company inspections, including those in the Netherlands, Belgium, the UK and Germany. The latter also launched an investigation into a possible EUTR breach, involving wenge from the Democratic Republic of Congo. But Euwid reported that other CAs had not established their role, and enacting legislation, setting out enforcement mechanisms and penalties, still had to be implemented in some countries. Penalty levels also varied widely between countries where they had been set. ETTF Secretary General André de Boer said CAs needed time to formulate and internalise procedures. “But we must ensure they all operate equally effectively to guarantee uniform The ETTF Newsletter is produced with funding from the UK Department for International Development EUTR remains a work in progress, says ETTF EUTR enforcement,” he said. “Inadequate implementation in just one could undermine the whole Regulation and it's been said this could result in redirection of timber flows to points of entry where it's less rigorously policed. It has to be applied to the same high standard everywhere to successfully combat illegal trade.” After a meeting with Dutch and German timber federations at the EC, Mr de Boer also remained critical of the latter’s slow pace in processing EUTR Monitoring Organisation approvals. “So far just two out of almost 30 have been dealt with and approved," he said. "However, the EC said they were assigning more resources to it and that pending MO applications would be processed this year." The ETTF also urged creation of a central point of information on applicable legislation in countries of harvest. ”CAs have to check if importer operators meet their EUTR obligations to gather information on this legislation,” said Mr de Boer. “It would make for more effective and efficient controls if CAs and operators used the same information source.” German Competent Authority BLE seized Wenge in suspected EUTR breach André de Boer European Timber Trad e Federation E T T F @ettf1 www.ettf.info Rachel Butler

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Page 1: TTTF News Spring 2014dktimber.dk/wp-content/uploads/ETTF-Newsletter-Spring-2014.pdf · Spring 2014 02 Daniela Tengg receives the plaque at the summit ETTF News @ettf1 The Belgian

01Spring 2014

ETTF NewsSpring 2014

Key moves at GTFThe new Global Timber Forum (GTF) continues to evolve, with the launch of its website and an online fact-finding survey of timber industry bodies worldwide. It has also secured funding from the UK Department for International Development (DFID).

The GTF was first unveiled at the Global Wood Mart in Malaysia in 2012. Its aim is to become an international networking and communications hub for exchange of information and best practice. Its role will also be to identify key issues impacting the timber market's progress, develop solutions, and provide a global voice for the sector’s views and interests to decision makers.

According to GTF facilitator Rachel Butler, the initiative is gaining international support following its summit and roadmap launch at the Rome headquarters of the Food and Agriculture Organisation of the UN last year. The event itself attracted delegates from over 40 countries.

The website, www.gtf-info.org, went live earlier this year with the launch of the survey, targeted at industry bodies across the sector, from forest to retail.

“In a sector that remains fragmented and dominated by small to medium sized enterprise, the survey’s goal is to collate information to facilitate communication and ultimately co-ordinated, effective action on a range of issues,” said Ms Butler. “Among other areas it will look at timber industry involvement in inter-governmental and NGO initiatives, constraints to timber business activity and skill deficiencies.”

She said that the ‘significant’ new UKDFID funding will underpin awareness raising of the GTF’s role and accelerate website development. The latter will include discussion forums, news and events listings, links and information on the GTF membership network.

02 Belgium beats certification target

03 Finnish trade’s new website goes live

04 Dutch tackle certified timber bottlenecks

05 ETTF welcomes Indonesia’s FLEGT VPA ratification

06 UK’s Wood for Good launches timber construction campaign

07 Danish federation’s building products show a hit

08 Indonesian and Ghanaian FLEGT VPA awareness events held in London

09 Viewpoints from Malcolm Scott of the New Zealand Imported Tropical Timber Group, Cees de Jager of the North American Softwood Lumber Board, and Kim Carstensen of the Forest Stewardship Council

11 Latest EU timber trade flow analysis and statistics from ETTF analyst Rupert Oliver

Conte

nts

The EU Timber Regulation (EUTR) has been effectively implemented and the timber trade has coped well with it across much of the EU. But it remains a work in progress and more effort is needed from the trade and national authorities to ensure uniform enforcement.

These are ETTF and industry media conclusions a year after the EUTR was introduced.

A report on implementation of the Regulation in German trade magazine Euwid found major variation in organization and awareness of responsibilities among EUTR enforcement agencies, or Competent Authorities (CAs), in different countries. Some were well-resourced and already undertaking company inspections, including those in the Netherlands, Belgium, the UK and Germany. The latter also launched an investigation into a possible EUTR breach, involving wenge from the Democratic Republic of Congo.

But Euwid reported that other CAs had not established their role, and enacting legislation, setting out enforcement mechanisms and penalties, still had to

be implemented in some countries. Penalty levels also varied widely between countries where they had been set.

ETTF Secretary General André de Boer said CAs needed time to formulate and internalise procedures.

“But we must ensure they all operate equally effectively to guarantee uniform

The ETTF Newsletter is produced with funding from the UK Department for International Development

EUTR remains a work in progress, says ETTF

EUTR enforcement,” he said. “Inadequate implementation in just one could undermine the whole Regulation and it's been said this could result in redirection of timber flows to points of entry where it's less rigorously policed. It has to be applied to the same high standard everywhere to successfully combat illegal trade.”

After a meeting with Dutch and German timber federations at the EC, Mr de Boer also remained critical of the latter’s slow pace in processing EUTR Monitoring Organisation approvals.

“So far just two out of almost 30 have been dealt with and approved," he said. "However, the EC said they were assigning more resources to it and that pending MO applications would be processed this year."

The ETTF also urged creation of a central point of information on applicable legislation in countries of harvest.

”CAs have to check if importer operators meet their EUTR obligations to gather information on this legislation,” said Mr de Boer. “It would make for more effective and efficient controls if CAs and operators used the same information source.”

German Competent Authority BLE seized Wenge in suspected EUTR breach

André de Boer

EuropeanTimberTrade

Federation

E

T

T

F @ettf1 www.ettf.info

Rachel Butler

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02Spring 2014

Daniela Tengg receives the plaque at the summit

ETTF News www.ettf.info@ettf1

Spring 2014

The Belgian government, Timber Importers Federation (BFHI), and other organisations signed an accord in 2011, with the aim of boosting certified timber’s share of all imports from 15% to 35% by 2018. Progress toward the target is being monitored by Dutch forest and timber sustainability consultancy Probos. Now the latter has delivered its first interim assessment, with the cooperation of the FSC and PEFC certification schemes, giving market figures for 2012. The results, said BFHI General Secretary Bart De Turck are dramatic.

“The report shows that 1,960,100 m3 of primary wood products from certified sustainable managed forests round wood equivalent (rwe) were placed on the Belgian market in 2012,” he said. “That’s 40.5% of primary wood consumption, which means we’ve

already surpassed the target we set in 2011, and six years ahead of schedule.”

The Belgian sawn softwood sector sells the highest percentage of certified sustainable timber, at 48,7% of the total. This is followed by panels with 40.6%.

“In sawn hardwoods, the figure is 12% certified for tropical and 20.5% for temperate species,” said Mr De Turck. “But the overall percentage of tropical hardwood in total Belgian timber consumption is less than 5% and shrinking.”

Of the total of certified material sold in Belgium in 2012, 75% was imported and for FSC material, the figure was 91%. The balance came from native forests.

“That means the greatest opportunity for growing certified market volumes lies in increasing Belgium’s certified forest area,” said Mr De Turck.

Belgium beats certified deadline by six years

Belgian trader Vandecasteele's Aalbeke warehousing. The company has FSC and PEFC certification

Bart De Turck

Gezaagd naalhout – sawn softwood Gezaagd tropisch loofhout – sawn tropical hardwoodGezaagd gematigd loofhout – sawn temperate hardwood Plaatmaterial – sheet materials

0

10

20

30

40

50

60

90

100%

2008 2012 2008 2012 2008 2012 2008 2012 2008 2012 1 2 3 4 Total

Gezaagd naaldhout Gezaagd tropisch loofhout

Gezaagd gematigd loofhout

Plaatmateriaal Total

Certified wood market share in Belgium 1. Sawn softwood2. Sawn tropical hardwood3. Sawn temperate hardwood4. Sheet materials

This was the thinking behind the launch of its new Timber Café by Centrum Hout, the Dutch Wood Information Centre .

Held at the Netherlands’ Timber Trade Association (NTTA) headquarters in Almere, the Café events start with “short and powerful presentations” from industry experts, with question and answer sessions. Then the audience has a chance to continue the discussion with a drink and a snack.

“The idea is to provide new insights and inspiration, in a relaxed environment,” said NTTA Managing Director Paul van den Heuvel.

The theme of the first Timber Café, which attracted 40 'customers’, was construction timber. Subsequent events will look at fire performance, exterior applications, new product development and environmental issues.

Coffee and timber conversation

At its recent market summit with the Austrian Sawmills Association (p5), Fedecomlegno paid tribute to two leading members who have died recently.

Gianfranco Corà passed away in February aged 82, after heading his company,Cora’ Domenico & Figli Spa, for nearly 40 years. He globalized the business launched by his father, opening offices in Indonesia and Singapore, and expanding further into Bosnia, Romania and Gabon. He also set up the Fondazione Corà to provide student scholarships, and received the Italian honour Cavaliere del Lavoro in 2004.

Also at the meeting, a commemorative plaque was presented to Daniela Tengg in memory of her husband, Fedecomlegno vice president Roberto Tengg, who died last summer. Mr Tengg was chairman of agency Agrifor International, and a former president of Promolegno and vice president of CEI-Bois.

Gianfranco Corà

Tributes to Corà and Tengg

Belgian timber importers’ confidence that they would beat official targets for increasing certified material imports has been borne out by a market survey.

What better way to convey timber’s market message than in a friendly convivial atmosphere over a coffee and a bite to eat?

Conference... coffee and cake

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The site, www.woodproducts.fi, has been created by the Finnish Timber Council (FTC), whose shareholders include ETTF members Finnish Sawmills and the Finnish Timber and Builders Merchants Association.

“It presents both Finnish timber products and construction and living solutions with the aim of improving international awareness of their range and quality,” said the FTC. “It

also presents key arguments for using timber

and includes articles on contemporary applications of wood in construction and interiors.”

The site is targeted at architects and other specifiers, buyers and, indeed, “anyone interested in using wood as a construction or manufacturing material”.

In English, French, German, Russian and Chinese, as well as Finnish, the new facility showcases everything from sawn timber to

Finnish wood products raise global profile online

indeed, “anyone interested in using wood

Trade association Le Commerce du Bois (LCB) has urged members to be “very careful” in their due diligence illegality risk assessment (DD) procedures, with the French timber sector still facing uncertainties over implementation of the EU Timber Regulation.

LCB Director Eric Boilley says part of the problem is that the French government still has not passed national enactment legislation setting out EUTR penalties and other enforcement details.

“French operators are conducting business in an incomplete legal framework,” he said.

Adding to uncertainty is the slow response of the European Commission (EC) to LCB’s application to become an EUTR Monitoring Organisation (MO), with the authority to monitor and oversee members’ due diligence operations.

“This means great uncertainty for companies which have opted for our collective LCB DD system approach. ” said Mr Boilley. “What happens if we’re not now approved as an MO? In the situation, we’ve urged members simply to be very careful in DD procedures.”

The position is complicated by the fact that French authorities seem to be dealing with CITES certified imports in isolation from the EUTR, with new legality assurances required.

“In addition to other information, importers are being asked for proof of legality of a certificate that comes from an independent international audit organization!” said Mr Boilley. “It’s an excess of zeal.”

The French industry is also concerned about EUTR implementation elsewhere in the EU and “possible negative impacts of a lack of coordination between countries”.

“Some, like France, as a result could suffer loss of business to those where [controls] are less demanding,” said Mr Boilley. “We urge ETTF to strengthen demands to the EC to ensure harmonization of administrative procedures.”

French urge a step up in EUTR implementation

ETTF tackle EUTR and tropical issues at GD Holz meeting

Eric Boilley

A new website has been launched to raise the international profile and reputation of Finnish timber products.

The annual trade meeting of GD Holz was addressed this year by ETTF Secretary General André de Boer, and its Trade Analyst Rupert Oliver of Forest Industries Intelligence.

The event took place in Bremen from March 20-21.

Mr de Boer took part in a session with GD Holz Chief Executive Thomas Goebel looking at implementation to date of the EU Timber Regulation (EUTR). He also discussed the ETTF and European Organisation of Sawmills-backed Wood: Growing Cities campaign, and addressed the FSC's controversial Online Claims Platform (see p8). In addition, he covered the EU Sustainable Tropical Timber Coalition, which aims to raise awareness of the availability of certified tropical material and increase its EU market share at a time of tropical sales decline.

Mr Oliver looked at impacts of the EUTR and other anti-illegal timber regulatory measures on European and international timber trade flows.

The meeting was also addressed by GD Holz Foreign Trade Sector Chairman Günter Kugler.

Rupert Oliver

finished furniture. Products are divided by end use, with concise details on performance characteristics. There are also supplier links.

The various sections look at “basic” timber products, different forms of timber construction, building products, and wood’s use in building interiors and exteriors, plus infrastructure projects, from transport barriers to bridges.

The broader information on the benefits of using wood covers its technical capabilities in construction and interiors applications, timber’s environmental credentials and the market performance and statistics of the Finnish forestry sector.

A Finnish timber interior and (inset) timber bridge on the site

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ETTF News www.ettf.info@ettf1

The analysis was initiated by the Green Deal Group, an alliance focused on “stimulating sustainable forest management” comprising the Netherlands Timber Trade Association (NTTA), government, retailers, manufacturers, the IDH Sustainable Trade Initiative, and NGO Tropenbos International.

“Currently the operation of the various certification systems creates added administrative and logistical burdens, and the need to hold double stocks because of limited possibilities to mix different [FSC and PEFC] sustainability labels,” said

NTTA managing director Paul van den Heuvel. “This leads to frustration and even to companies choosing wood without a sustainability label, or alternative materials. We want to organise things better.”

The study looked at the PEFC, FSC, and Dutch Kerhout certification and chain of custody systems, and the proposed ISO chain of custody standard. One conclusion was that their operation could be improved with “better knowledge transfer between supply and demand sectors, client and contractor”.

“Specification often stipulates one scheme, or specific timber species,” it states. “But if based instead on government criteria for sustainable timber and the broad performance requirements wood has to meet, it would open up more options in certification and wood variety.”

Around 86% of NTTA member imports are “demonstrably sustainable”, but Mr van den Heuvel said it would be difficult to achieve 100% unless market bottlenecks were unblocked.

“However, our analysis shows where action is needed and the Green Deal signatories are evolving a plan to make this happen,” he said. “Representing the entire market sector, we can make a difference.”

He added that a subsequent study would assess direct and indirect costs of chain of custody certification.

Tackling sustainability supply bottlenecks A major study has been undertaken into supply chain bottlenecks restricting the ability of the Netherlands timber sector to grow market share for certified sustainable products.

Supporters sign up to the Green Deal in 2013

The new facility is being developed by UK promotional campaign Wood for Good under its Wood First Plus initiative to help make wood a first choice construction material. It is working in association with LCA specialists PE International, and with support from a range of backers, including the UK Timber Trade Federation and American Hardwood Export Council.

“This data has only been available in fragmented form,” said Wood for Good director David Hopkins. “We’re bringing it together in an accessible format in one online location.”

The aim, he said, was to increase building professionals’ “confidence in timber and

make them more comfortable using it”.

Next, timber technical performance data would be added to create a “truly comprehensive timber information resource to rival anything offered for concrete and steel ”.

The site would not only be a practical work tool, said Mr Hopkins, but a valuable marketing aid for timber.

“And in the future it will have more value,” he added. “Due to advances in renewables technology, it is estimated that a building’s operational carbon will account for only 5%

of its total footprint. That means building fabric will be the key area to achieve further improvement, so timber’s carbon benefits are set to give it an even greater edge over other materials.”

The database will go live during Embodied Carbon Week, the UK Green Building Council’s sustainable construction awareness-raising event in April.

Cross laminated timber-based Kingsgate House in London, the world’s first PEFC

project certified building

Timber LCA site unveiled at premier UK building show

David Hopkins

The Nature Centre in Haltia, set to attract 200,000 visitors a year, is based on cross laminated timber panels, while the roof structures comprise prefabricated timber-based systems. It features varnished ash flooring and is finished in treated varnished spruce cladding externally, and waxed spruce internally. Awards organiser the Finnish Wood Council said it demonstrated the best in traditional and modern wood processing methods.

An honourable mention was given to the new offices at Metsä Group’s Tapiola site (above right). Architects Helin & Co said their inspirations were local timber building traditions and the aesthetics of a birch forest. Primary trestle-like supports comprise laminated veneer lumber columns and double laminated timber beams.

The winner of the Finnish Wood Council’s latest Wood Awards is a conference centre for events focused on nature, the environment and their significance in Finland’s cultural and economic life.

Natural winner of Finnish Wood Awards

A new website giving comprehensive life cycle analysis (LCA) data for timber and wood products, and the tools and information to develop Environmental Product Declarations (EPDs), was “soft launched” at the Ecobuild sustainable construction show in London in March.

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While sanctioning Indonesia’s VPA on February 27, the EU parliament said final improvements were needed in its SVLK legality assurance system before it can issue FLEGT licences, which will give its timber products access to the EU without further

due diligence illegality risk assessment under the EU Timber Regulation. These involve ensuring coverage of all timber sources and third party audit of chain of custody.

European Environment Commissioner Janez Potočnik however, said outstanding concerns on local people’s land tenure rights went beyond the VPA’s remit, and should not hold up FLEGT licencing. He said a balance had to be struck between ‘aspiration and realism’.

Indonesia’s trade minister Bayu Krisnamurthi predicted a 5-7% rise in exports to the EU once FLEGT licences are issued, which will be this year, the country says.

“Indonesia’s FLEGT ratification is very good

news,” said ETTF Secretary General André de Boer. “It’s a complex process, but Indonesia sets an example for others to follow. We now hope we will receive FLEGT-licenced timber in 2014.”

ETTF members have also been working with the timber sectors of Indonesia and Ghana, which hopes to deliver FLEGT-licenced timber this year too, highlighting their achievement under the FLEGT process and underlining its wider values.

Last year the Belgian timber importers federation (BFHI) hosted a Ghana FLEGT VPA awareness event and held a market dialogue on the Indonesian SVLK system. Following ratification of its VPA, Indonesia’s ambassador to Belgium wrote to thank BFHI General Secretary Bart De Turck for his support and said the process should be finalised in April.

In association with the UK Timber Trade Federation, Ghana and Indonesia also gave FLEGT VPA presentations in London in February (see p8).

EU keen for FLEGT licensed wood after Indonesian VPA ratificationThe ETTF has welcomed the EU parliament’s ratification of Indonesia’s EU Forest Law Enforcement Governance and Trade (FLEGT) Voluntary Partnership Agreement (VPA), the final step in the process before authorisation is given for the country to issue FLEGT licences for timber and wood products.

Eighteen million ha of Indonesia’s forest have

been SVLK audited

The February meeting in Verona looked at latest trade trends. Delegates heard that from January to November 2013, Italian imports of Austrian softwood fell 10% on the same period in 2012 to 2.14 million m3. This was due to Italian economic conditions and demand levels, but also low raw material availability and high prices facing Austrian sawmillers.

“Round wood pricing has been an issue in Austria since 2010, but little could be done because of low availability, particularly during the summer peak demand period,” said Fedecomlegno Chief Executive Domenico Corradetti. “The ratio of round wood price to sawn deteriorated again in December, with a further round wood rise.”

The severe winter had compounded market constraints, said Fedecomlegno President Giampiero Paganoni, severely restricting Austrian harvesting.

“The adverse conditions also slowed down the Italian building sector,” he said.

On a brighter note, while the Italian domestic timber market remains competitive, Mr Paganoni said that exports, particularly of furniture and packaging, were seeing more “positive signs”.

For the future, he and Austrian Sawmills Association President Christoph Kulterer agreed their industries should focus on developing “trade in new products, such as glulam”.

“Joint efforts should also be made to spread knowledge about new methods of timber construction and new wood product standards,” said Mr Paganoni. “ We should also invest in the timber education of the new generation of engineers, architects and decision makers in other market sectors.”

The latest meeting between the Italian timber traders of Fedecomlegno and their leading softwood suppliers, the Austrian sawmill sector, concluded that the two should work together to grow the market.

Market education needed in tough economic climate

Giampiero Paganoni and Christoph Kulterer

The meeting takes place on June 13 in Amsterdam and will be attended by representatives from member federations across Europe.

Under the new constitution of the enlarged ETTF, which now comprises 17 members, it has two sections representing the interests of the importers, which made up the membership of the original ETTF, and the merchant organisations which comprised FEBO. The two will hold separate discussions on the morning of the meeting, and then convene for the general assembly.

“This will be a chance for the wider membership of the new ETTF to meet and address key issues, and discuss our future strategies and finances,” said Secretary General André de Boer.

The ETTF is holding its first general assembly following its January 1 merger with the FEBO organisation.

First enlarged ETTF agm

André de Boer

Dr Dwi Sudharto of Indonesia’s Directorate General of Forest Management during legality assurance system checks

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Under the banner Growing Communities, the events target architects, engineers and other building professionals and specifiers, such as local authorities and housing associations.

The first, headlined “Meeting the housing challenge”, focused on timber construction systems’ ability to provide rapidly constructed and affordable, but high quality, energy-efficient homes.

One speaker, Alex Goodfellow of timber frame producer Stewart Milne Timber Systems, said the UK wood-based construction sector could double sales to 50,000 housing units a year by 2019, giving it 28% new build market share.

“We have the capacity and we're going to benefit from green legislation, build rate pressure and skills shortages in masonry," he said.

He highlighted timber-frame’s quick build potential with a presentation on a 1,000-bed student accommodation block his company erected in 22 weeks and which achieved

an ‘outstanding rating’ under the BREEAM green building standard.

A presentation from fellow UK timber-frame specialist Accord underlined wood’s suitability for factory prefabrication, while architects Guy Taylor focused on its design flexibility and energy efficiency.

Wood for Good Director David Hopkins said Growing Communities' goal was to

"demonstrate timber building’s versatility as a solution across the market".

“It features at the heart of a growing number of UK design-conscious projects, from housing, to schools and hospitals,” he said. “Our aim is to build on this momentum and move timber from the perimeters, to become a first-choice construction material.”

www.woodforgood.com/events

UK campaign highlights timber building potentialUK promotional campaign Wood for Good, which is backed by the Timber Trade Federation (TTF), has launched a seminar programme raising awareness of timber’s construction potential.

UK timber-based building is increasingly diverse. Photo: STMS

The Spanish Timber Trade Federation AEIM has been recognized for its efforts in improving the industry’s environmental performance.

At the recent Fimma-Maderalia timber and furniture show, the organization received the accolade of “Forest sustainability responsible body” from PEFC Spain.

The citation was given to AEIM President Carles Alberch, who, in his response, said the timber sector had achieved a dramatic turnaround in improving its environmental credentials. As a result, wood was recognized in Spain as a sustainable material and its responsible use as contributing to forest conservation and legal trading.

“AEIM was a pioneer,” he said. “We agreed our first Environmental Code of Good Practice in 1995 and this evolved to become our complete Environmental Due Diligence System which meets the legality requirements of the EU Timber Regulation.

In addition 65 members have FSC or PEFC chain of custody certification.”

Also at Maderalia, AEIM Secretary General Alberto Romero, presented an overview of the first year under the EU Timber Regulation.

“To ensure effective enforcement, our Association has continued to develop our timber illegality risk assessment of key supplier countries, which we post on our website www.maderalegal.info,” he said. “And we can confirm that 82% of members’ imports now come from countries of negligible illegality risk.”

He added that ensuring uniform implementation of the EUTR across the EU remained a key concern of the Spanish timber sector.

Subsequent discussions addressed the continuing fall in sales of certified timber in Spain, post EUTR implementation. Speakers agreed the industry should continue to back certification to underline its commitment to sustainability.

Spanish importers awarded sustainability accolade German trade predicts good year aheadThe German timber trade is set for growth through 2014, according to GD Holz chairman Jürgen Klatt.

After a sales decline of 7% in the first quarter 2013 due to poor weather, the trade recovered through the rest of the year to record only a marginal 0.3% monthly average decrease on 2012. And recovery accelerated, with sales up 10% in December year on year. Best performance was seen in garden wood products, which were ahead 20%.

The improvement has continued in 2014. “Mild weather in January and February

has helped construction activity,” said Mr Klatt. “As a result, first quarter timber sales are well above the same period in 2013. Most GD Holz members now expect business to be at least consistent or better in coming months, with only a minority predicting decline. The economic conditions are right, the construction industry, particularly housing, is running well and overall it looks set to be a good year for our trade.”

Jürgen Klatt

AEIM directors with the Award

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The biennial event, which is organized by ETTF member, the timber and builders merchants association Danish Building Centres (Danske ByggeCentre), took place in the Fredercia exhibition complex in February. Billed as Scandinavia’s most important building show, it attracted 27,150 visitors from Denmark and abroad, an increase on the last event in 2012.

A total of 300 companies took stands, exhibiting breakthrough developments across the range of construction products, with timber and wood build systems prominent among them.

Sustainability and green building have been on the

Byggeri agenda for some time and, in recognition of their growing significance in shaping the building industry, Danske Bygge Centre launched its Environmental Product Awards at the event in 2010.

“It has become a central issue to ensure that the industry not only delivers products and solutions which satisfy basic technical and performance requirements, but also incorporate aspects such as energy efficiency and CO2 reduction,” said Danske ByggeCentre Chief Executive Palle Thomsen.

The three Awards categories are Energy, Climate and Environment, with the winners chosen on the basis of their products’ contribution to energy efficiency and carbon reduction in production and during use in a building.

“The prizes are presented by Crown Prince Frederik of Denmark and valued across the sector,” said Mr Thomsen. “The winners use them in their national and international marketing.”

This year’s Environmental Product Award winners were Betongruppen, Sundolitt and Saint-Gobain Gyproc.

Sustainability and sophistication on show at Byggeri exhibitionThe Danish Byggeri 2014 building products show simultaneously focused on the growing need to innovate to meet ever higher construction sector specification requirements, and to drive up the industry’s environmental performance.

The survey commissioned by the Wood for Good promotional campaign quizzed 100 MPs of various parties. On timber building, most agreed it was a quicker and more efficient construction method, but only 40% agreed that it had a low fire risk and just 13% considered environmental sustainability of building materials as a main priority

On broader environmental issues, 77% thought UK-sourced wood was sustainable, but only 51% thought the same about

imported timber. A total of 76% thought timber use helped to cut emissions, but just 42% agreed using more wood increased forest cover.

Wood for Good also undertook more in-depth interviews with several MPs and, as part of planned efforts now to educate politicians about timber held round table discussions at the Houses of Parliament on “Decarbonising Construction – the role for timber” at the end of March.

“Few politicians seem hostile to using timber, but there is a lack of knowledge in several areas that needs addressing,” said Wood for Good Director David Hopkins.

It is now being considered how this survey initiative can be extended to EU politicians.

www.ettf.info

A major survey of UK members of parliament (MPs) on their perceptions of the timber industry and timber construction uncovered some positives, but also misunderstandings about the impact of increased wood use on forestry.

UK politicians need timber education

ETTF members put a number of requests for amendment and clarification in the Nordic Softwood Contract 2012 on the agenda for a meeting with the industry federations of Sweden, Finland and Norway.

The two groups held a meeting to discuss the Contract in Amsterdam on March 18.

The ETTF said in a communiqué to the Nordic bodies that it wanted the document to “take into account as far as possible the interests of buyer and seller in a balanced way”.

The outcome of the meeting will be covered at www.ettf.info

Softwood contract issues

Among the other speakers at the event was American Hardwood Export Council (AHEC) European Director David Venables addressing the theme “Educating architects through timber promotion”. The US organization has targeted architects, specifiers and designers in recent years with a number of headline grabbing architectural and furniture projects highlighting the technical and environmental performance of timber generally, and US hardwoods in particular.

At its annual meeting in March, Spanish Timber Trade Federation AEIM presented a new study on the sector’s environmental performance undertaken for WWF Spain.

Americans and WWF at the AEIM agm

The Sclera Pavilion, one of AHEC’s architectural projects, using US tulipwood

David Venables

Timber and timber-build systems featured strongly at Byggeri 2014

Palle Thomsen

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08Spring 2014

ETTF News www.ettf.info@ettf1

The London meetings were addressed by representatives of the two countries’ timber industries, embassies, and others involved in their FLEGT programmes. Each was attended by around 40 members of the UK timber trade, and NGO delegates.

Speakers from both countries said they

were on track to deliver their first FLEGT-licenced timber, which will be exempt further due diligence under the EU Timber Regulation, this year. They also stressed that their work under the FLEGT process had already achieved major improvements in their timber sector's legality controls, environmental and wider social performance and in stakeholder participation.

"Both events underlined the depth and breadth of efforts involved in FLEGT in supplier countries," said TTF Chief Executive John White. "In particular, they emphasised that, while FLEGT-licensed timber is held up as the ultimate goal, the true value is in the process itself, what is going on on the ground in terms of establishing watertight legality assurance systems (LAS), chain of custody monitoring and control, and much

broader stakeholder involvement in the industry and decision making."

TTF Head of Sustainability Anand Punja agreed: “FLEGT is ultimately about delivering better trade governance and building suppliers' capacity to establish and operate legality assurance and chain of custody systems, and that is what it is already doing in a number of countries."

FLEGT process makes timber legality markThe UK Timber Trade Federation (TTF) supported events in February to raise awareness of Ghana and Indonesia’s progress through the EU Forest Law Enforcement Governance and Trade (FLEGT) process, and the value of the initiative.

Ghana’s FLEGT software for chain of custody monitoring was presented

John White

The exercise was part of the NTTA’s continuing efforts to ensure effective implementation of the Regulation and help build industry knowledge at the CA.

Nine inspectors from the latter, the Agriculture and Nature Division of the Netherlands Food and Consumer Product Safety Authority (NVWA) took part.

They heard ETTF General Secretary André de Boer speak on latest Regulation developments and Managing Director Paul van den Heuvel on the NTTA’s EUTR Policy, and Timber Checker information and guidance service. Erik Leeuw, Houthandel Van Dam’s Director, and Allard Eckhardt, Environmental Co-ordinator of merchant group PontMeyer explained its due diligence practice.

NTTA plans another visit in the autumn.

The Netherlands Timber Trade Association (NTTA/VVNH) has organized a fact-finding visit to a member importer Houthandel Van Dam for the country’s EU Timber Regulation Competent Authority.

Dutch build bridges with Competent Authority

The Austrian timber sector marketing campaign ProHolz has started an international roadshow to promote timber-based construction. ‘Wood – Building the Future’ has two elements. The Woodbox is a timber ‘freight container’, containing an exhibition of 50 recent timber buildings and facilities for presentations. In conjunction, where Woodbox goes ProHolz will also run 'Wooddays' networking events for the local construction sector and specifiers, underlining the benefits of timber for low carbon building in urban environments. From March to May the roadshow will visit Milan, Bratislava, and Ljubljana. It may go to Brussels for European Wood Day Action Week in September, then Turin, Prague, Zagreb, Florence, Budapest and Belgrade through 2015 and 2016.

Timber building tourNew UK trade allianceA new UK timber trade body has been proposed to give the sector a more united and stronger lobbying voice. Talks have been held on the new umbrella grouping by representatives of several organisations, including the UK Timber Trade Federation, Wood Panel Industries Federation, Structural Timber Association, British Woodworking Federation and research body TRADA. It would have a legal identity and board of directors with suggested names including the Confederation of Timber Industries. It proposes to work closely with the UK Wood for Good promotional campaign.

Fresh FSC OCP doubtsGerman, Austrian and Swiss timber trade bodies, including GD Holz, have raised new doubts over the FSC’s proposed Online Claims Platform (OCP) for registering transactions in FSC certified timber. They are concerned that use of the web facility may have data protection and competition law implications and are recommending companies not to participate, even in testing.

Previously voiced concerns included the cost and administrative burden of using the site, with the UK TTF also urging members not to get involved. ETTF Secretary General André de Boer has written to FSC asking it to justify the OCP, while saying it would cooperate in resolving problems with its current paper-based claims system. For more: www.ettf.info

The Woodbox in construction

Buildings in Austria and Italy featured in the roadshow

Inspectors with (from left) André de Boer and Erik Leeuw

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09Spring 2014

www.ettf.info@ettf1

Despite being found a long way “down under”, New Zealand buyers are well known in every corner of the timber-producing world. Be it from Guyana, Gabon or New Guinea, tropical hardwoods are continually shipped to the New Zealand market.

Since 1992 members of the New Zealand

Timber Importers Association, environmental NGO’s (including Greenpeace), timber merchants and retailers and the government, in observer capacity, have met under the auspices of the New Zealand Imported Tropical Timber Group (www.nzittg.org) to develop strategies to eliminate illegally logged timber supply from the market. And ultimately the NZITTG Charters’ principal target is to achieve sustainable supply, not just legally harvested timber.

Group members represent 80% of New Zealand’s sawn timber imports, and a significant share of plywood and outdoor furniture imports. Every six months we report the percentages of our total

purchases accounted for by legally or sustainably verified material, and the criteria under which they have been imported.

Over the last 20 years these reports show that non-verified tropical hardwood imports have fallen to less than 10% of the total by volume, and now the bulk are covered by VLO/VLC/PEFC or FSC certified schemes.

In April 2011, NZITTG members also agreed to import only third party legally verified material from Indonesia, then the biggest source of tropical hardwoods, into New Zealand. This goal has been achieved. Checks on documentation identity are regularly performed and to date no “failures” have been recorded. And because green buyer awareness in New Zealand at specifier, merchant, and retail levels is very high, suppliers of other hardwoods have had to match or better the credentials of Indonesian merbau and balau to find acceptance. Fortunately, availability of certified and verified legal hardwood timber from South America and West Africa has been encouraging.

New Zealand government procurement policy also calls for sustainably produced timbers where possible. It requires chain of custody documentation with invoices, although verified compliant timbers may be approved on individual application.

In recent years the NZITTG has additionally lobbied successive governments for illegal logging legislation to level the playing field. So far, in our highly geared trading nation, this has not been introduced, no doubt for fear of trade reprisals. But with the advent of the Australian Illegal Logging Prohibition Act, one wonders for how long the New Zealand legislative door will stay shut.

Having said that, existing voluntary arrangements appear to work well enough by virtue perhaps of the small highly visible market in which we operate, and the long- held commitment of New Zealand importers to responsible forest management.

Our next challenge is certification and management of non-tropical species. In fact European, North American and Australian hardwoods and softwoods are already included in members’ ‘Source Reports’, but there is no reference to them in our Charter, or a requirement on NZITTG members to buy only third party verified or certified product. Inevitably, the existing laws and export criteria of these major non-tropical supplying countries offer considerable protection to buyers. However, as they say, the bar keeps lifting, so long as the market agrees that the benefit of environmental certification outweighs the cost.

New Zealand raises the procurement barVoluntary measures ensure that legally and sustainably verified tropical timber now accounts for 90% of New Zealand’s imports. But traders are still raising the bar. They’re pressing for anti-illegal timber import legislation and looking at non-tropical timber’s eco credentials. Malcolm Scott of the New Zealand Imported Tropical Timber Group reports.

Viewpoints

US takes timber promotion to whole new heights

In the face of market attrition from rival materials, the US Softwood Lumber Board launched a major new promotional programme. Its latest campaign, around the use of timber in a 42-storey apartment block, is its most impactful to date. SLB Chief Marketing Officer Cees de Jager reports.

The US softwood lumber sector has been working its way through a very difficult set of market conditions. Overlaying economic issues have seen a steady decline of timber market share, as homeowners, builders and architects select alternative products.

Competing products, largely manufactured from non-renewable resources, have also engaged in sustained and effective marketing campaigns designed to grow sales for their products at the expense of timber’s.

This steady and serious erosion of

wood's market has gone unchecked for decades. The US softwood lumber industry has established a number of short-lived programs over the years to address it, but has not sustained the leadership and unified support necessary for a turnaround.

But in the summer of 2011, 67% of softwood lumber companies polled in a referendum representing 80% of US softwood lumber shipments and imports, approved the creation of a new fund for softwood lumber promotion.

Operating under the Softwood Lumber

Board (SLB) banner, the fund’s goal is to grow softwood lumber markets and profitability in the US market. Specific objectives include:

• To increase wood use in the light commercial/non-residential and multi-family markets.

• To grow demand in residential and mid-high rise construction through building system improvements and innovation.

• To promote the benefits and uses of softwood lumber products for appearance

continued...

The Softwood Lumber Board’s www.rethinkwood.org site

Over 90% of New Zealand’s tropical imports are third party verified.

Now it’s looking at temperate

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11Spring 2014

applications, including the outdoor living market, joinery and interior finishing.

• To promote the practical, aesthetic and environmental benefits of softwood lumber products.

The SLB focuses funding on four centres of excellence: building standards; pro-wood messaging; design and construction; and appearance. These can be seen as its four primary business operations, analogous to fibre supply, marketing, industrial and retail sales functions in a forest products company. Each is a specialised programme focusing on specific activities, yet all working in a complementary fashion to deliver results.

Perhaps the highest profile project supported by the SLB so far has been the timber tower research initiative with world-renowned architectural firm, Skidmore, Owings & Merrill (SOM).

SOM decided to conceive a prototype

timber building based precisely on an existing concrete high-rise structure, the 395-foot-tall, 42-story Dewitt-Chestnut Apartments block in Chicago, which it designed, and was built in 1966.

SOM’s conclusion is that their hybrid engineered timber and concrete prototype structure is not only economically viable from a materials standpoint, can compete with reinforced concrete and steel structures across design components, and is marketable, but is also a positive contributor to sustainability, as it is capable of reducing a structure’s carbon footprint by 60 to 90%.

SOM’s research findings, recent developments in Europe and Australia, and increasing global demand for sustainability make a strong case for future growth in the number and size of tall wood buildings.

Meanwhile, the SLB continues to work with thought-leading engineering and architecture firms, as well as developers to accelerate the

adoption of taller wood buildings in the US. Such structures create a significant opportunity for the lumber industry, estimated to be capable of consuming up to 6 billion board feet annually.

www.ettf.info@ettf1Viewpoints

While the European Commission’s latest European Union (EU) Forest Strategy is a vital tool to protect Europe’s forests, it has overlooked the achievements and powerful potential of credible forest certification schemes, such as that of the Forest Stewardship Council (FSC).

I believe this is a serious oversight on the part of the Commission, particularly when more than half of the EU’s forest cover is now certified by private certification schemes. In fact an estimated 55–65 % of total forest area in the EU is now certified, with more than 20% – or 31 million hectares – of the total currently covered by the FSC scheme.

Besides the positive impact that certification schemes have on forest management, they also facilitate industry, buyers and sellers to choose responsibly sourced wood or wood-based products through their chain of custody and labeling practices. This is evidenced clearly by the fact that nearly 13,000 EU-based companies now process and sell FSC wood.

Across the rest of the world, certification schemes are also proving to be increasingly successful in motivating industry, public procurers and consumers to support sustainable forest management with their purchasing power. Global production of certified roundwood has increased and in Europe more than 70% of all pulp used in paper and board production comes from certified forests.

To be sure, the new EU Forest Strategy does highlight the importance of forests for the region’s economy, employment and environment. It sets important guiding principles for forests and for forest goods and services, including sustainable forest management, forest protection, resource efficiency and global responsibility.

However, I encourage the Council of Ministers and the European Parliament to evaluate the impacts of the different certification schemes active in the EU, and globally, in ensuring sustainable forest management in practice, and to recognise those that perform sufficiently.

The Commission and member states should promote increased use of transparent and effective forest management and chain of custody certification systems, governed through the balanced participation of social, economic and environmental stakeholders, within and beyond the EU. They should also champion group certification as a tool to overcome the constraints of fragmented forest ownership in many countries.

Although certification schemes have proven to be instrumental in other EU policies, such as the EU Timber Regulation, EU Eco-labeling and Green Public Procurement, the Forest Strategy has overlooked their potential as a tool for achieving sustainable forest management.

Certification worth a second EC forest strategy lookThe EC has committed a serious oversight in its new Forest Strategy by overlooking the potential contribution environmental certification schemes can make toward development of a rounded environmentally and commercially sound forestry sector, writes Forest Stewardship Council Managing Director Kim Carstensen.

EU Commissioner for Agriculture and Rural Development Daclan Ciolos said that the new EU Forest Strategy, published last September, aimed to balance the value of forests as “key ecosystems and a source of wealth and jobs”.

Strategy goals include:

• Assisting forest practice technological and scientific knowledge transfer and development of higher added-value products.

• Ensuring EU forest management remains multifunctional.

• Improving coordination in sustainable forest management [policy].

• Creating a European Forest Bureau Network to harmonise National Forest Inventory data.

The EU Forest Strategy

13,000 EU companies process and sell FSC-certified products

55-65% of EU forest is certified, 31 million ha under the FSC scheme

US takes timber promotion to new heights... continued

The 42-storey timber tower structure combines engineered

wood and concrete

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11Spring 2014

www.ettf.info@ettf1Stats & Analysis

The EU Timber Regulation (EUTR) was introduced at the bottom of Europe’s deepest recession since the war. A variety of indicators show that March 2013 was the point at which economic activity was at its lowest ebb. Since then EU economies have bumped along the bottom or shown some improvement

This is particularly true in construction, a key EU timber demand driver. Total EU construction value last March was 23% less than in 2007. However, through the rest of the year, overall activity increased, but only to 20% below pre-crises level.

Chart 1 reveals how construction downturn and recovery have varied between countries. Activity in Germany, the UK and France has been relatively resilient over the last five years and showed signs of revival in the second half of 2013. In Spain, Portugal and Italy, however, construction value remains below pre-recession levels and has yet to show signs of recovery.

Total import value of all EUTR-regulated timber and timber products into the EU28 in 2013 was €10.72 billion, 4.6% less than 2012’s €11.23 billion. The overall downturn is explained by the combined effects of recession and supply diversion to other more active global markets.

As chart 2 shows imports of all product groups fell, except logs and biomass.

EU imports of softwood and birch logs, mainly to Finland, increased from Russia during 2013 as the latter’s log export taxes were replaced by a quota.

Biomass imports were boosted by European energy companies’ need to meet renewables obligations, particularly from North America into the UK and the Balkans into Italy. There was also significant growth in Swedish and German imports of softwood logs from Norway, which reports the highest log harvest for 20 years.

The impact of these trends is also apparent in chart 3. This shows the value of EU imports increased from the CIS, North America and non-EU Europe in 2013, but declined from elsewhere.

Analysis of specific product trade flows reveals short-term fluctuations that may be partly explained by the EUTR. This was always expected to mostly affect timber trade from countries perceived as higher risk for illegal logging, or that are engaged in EU Forest Law Enforcement Governance and Trade Voluntary Partnership Agreements, or have particularly complex supply chains. That means, broadly, tropical timber and complex products from China. And overall EU imports of all these products were lower in 2013.

Tropical fluctuationChart 4 shows the three-month rolling average roundwood equivalent (RWE) volume in cubic meters of EU imports of hardwood products from tropical countries last year. Average monthly imports fell to a low of 390,000m3 RWE in December 2012 , but then staged a hesitant recovery during 2013. By December last year the average monthly import figure had risen to 410,000m3 RWE, mainly due to increases in sawn wood and plywood. continued...

EUTR trade impacts remain blurred by economic environmentSome see tentative signs that the EU Timber Regulation (EUTR) is influencing EU timber and wood products trading patterns, with the effects on tropical suppliers committed strongly to legality assurance and certification possibly being positive. However, for the most part the continuing slow pace of EU economic recovery, combined with uneven EUTR enforcement is still making its impacts difficult to unpick from market demand issues. ETTF trade analyst Rupert Oliver reports. Construction in the parts

of the EU recovered well

EU imports from Malaysia picked up

1 Construction in the parts of the EU recovered well

Elsewhere building rates remained below 2007 levels

Chart 1: Change in construction production value in the EU and selected EU countries

Jan-07 to Dec-13 (4th Qtr 2006 =100)

Chart 2: EU28 import value of EUTR-regulated timber by product group – years 2011-2013

Chart 3: EU28 import value of EUTR-regulated timber by supply region - years 2011-2013

Chart 4: EU28 import of wood products from tropical countries - 3 month rolling average

1000m3 RWE - Jan 2012 - Dec 2013

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12Spring 2014

www.ettf.info@ettf1

Chart 5 shows how the fortunes of major suppliers of tropical hardwood to the EU have changed. Imports from Malaysia declined to 85,000m3 per month RWE at the end of 2012 and remained there until September 2013. But then they rose sharply to over 100,000m3 RWE in November . This is partly due to improved demand, particularly in the UK, together with restocking in advance of the increase in EU import duties on Malaysian products from 3.5% to 7% on 1 January 2014 due to a change in the country’s GSP status. But the EUTR may additionally have given Malaysian plywood shippers a competitive boost relative to Chinese competitors, who have struggled to meet demands for legality documentation.

It remains difficult to identify any EUTR effect in trade with either Indonesia or Vietnam. EU monthly imports from both fluctuated, with strengthening spring trade, followed by a summer and autumn decline. That’s due to seasonal fluctuations in European imports of garden products, mainly decking in the case of Indonesia, and furniture in the case of Vietnam. Imports of the latter from Vietnam during spring and summer 2013 actually rose, but Indonesia’s were down, additionally hit by European over-stocking of bangkirai decking.

African suppliers’ fortunes in the EU also varied widely last year. Low import levels from Cameroon are probably more likely due to mounting supply problems, rather than the impact of the EUTR, with shortages particularly pronounced for sapele, the most popular commercial species in Europe. The country’s overall EU sales fell in the year to May 2013 to around 58,000m3 per month RWE, recovering to 70,000m3 in the autumn, before falling back to 56,000m3 in December, when they were further hit by a port strike in Douala.

Gabon and Congo Republic benefit from certification EU imports from Gabon in late 2012 were affected by harvesting restriction and France’s economic slowdown. However, both problems eased during 2013, leading to a strengthening recovery. And now the EUTR may now be benefitting the large European-owned Gabonese operations in competition with other tropical providers, due to their strong commitment to certified wood. This may also partly explain the gradual strengthening of EU imports from the Congo Republic last year.

EU imports of tropical hardwood from Ivory Coast fell to a low of 20,600m3/month RWE in the three months to February 2013. It was suggested importers were concerned about possible EUTR conformance issues, with imports recovering to 27,800m3/month RWE in the three months to November as confidence grew that legality documentation would stand up to scrutiny.

The Ivory Coast exporters also likely benefited from slow recovery in demand for key species like framire and ayous in the UK and Italy during the second half.

Brazilian EU downturnEU timber product imports from Brazil have fallen dramatically since the start of recession (chart 6) with monthly shipments of all tropical hardwood from the country averaging no more than 20,000m3 RWE by the end of last year. This is due to the combined effects of weak EU demand, exchange rate volatility and restricted supply as the Brazilian government has taken steps to curtail illegal logging. The problems of obtaining legality assurance in the complex fragmented supply chains that exist in the Amazon may be another contributing factor post EUTR.

However EU imports of softwood plywood from plantations in southern Brazil were nearly as high in 2013 as 2012.

There is also no clear evidence of EUTR effects in EU trade with China (chart 7).

EU imports of both Chinese wood furniture and hardwood plywood dipped sharply in April and May last year, due, some feel, to initial uncertainty among EU importers and retailers about legality documentation from some Chinese suppliers. However a fall in imports of interior furniture is normal that time of year and there are also signs Chinese wood furniture is losing competitiveness

due to rising labour costs, volatile freight rates, and increased competitiveness among European producers. The downturn in EU hardwood plywood imports from China could also be explained by the construction slump. Then both Chinese furniture and plywood imports rebounded again in the summer, while EU imports of softwood plywood continued to strengthen through the year.

Too early for definitive verdict So while there are tantalising glimpses of possible EUTR impacts on trade after 12 months of implementation, it remains too early to assess long-term fallout. This is currently obscured by the effect of the downturn and supply problems due to capacity closures and diversion of wood fibre to other markets. Furthermore, while the EUTR was introduced a year ago, it is still early days in terms of effective enforcement. This is clear from the recent survey of EUTR authorities in Euwid. The German trade journal reports that the EUTR enforcement bodies, or Competent Authorities (CA), are active in Denmark, UK, Germany, and the Netherlands. But the pace of implementation has been slower in France and southern and eastern Europe. The EC process to recognise Monitoring Organisations is also taking time, with only two so far appointed - Conlegno in Italy and NEPCon with EU-wide coverage. And even in countries where CAs are active, building up necessary capacity and knowledge required to provide advice and pursue successful prosecutions remains a challenge.

The real impact of the Regulation will only become clear as the EU economy recovers and more progress is made toward uniform enforcement.

All charts are based on eurostat figures, analysed by www.forestindustries.info

1 Construction in the parts of the EU recovered well

Sapele shortages hit overall African exports

Indonesian EU exports were hit by decking overstocking

Chart 5: EU28 import of wood products from main tropical suppliers - 3 month rolling avg.

1000m3 RWE - Jan 2012 - Dec 2013

Chart 6: EU28 import of wood products from Brazil - 3 month rolling average

1000m3 RWE - Jan 2012 - Dec 2013

Chart 7: EU28 import of wood products from China - 3 month rolling average

1000m3 RWE - Jan 2012 - Dec 2013

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