PERU Ministry of Agriculture General Direction of Forest and Wildlife

Peru’s Forest sector Reform:

Promoting forest sustainability

Kazan, May 2012

Contents

1. Forest sector context 2. Legislation reform3. Forest zoning4. Mechanisms to access resources5. Promoting good practices in forest management6. Deforestation Illegal logging7. Improved Forest Information System and Control Module8. Transparency and Anticorruption Actions

1. Forest Sector Context

• Mega biodiversity: 84 life zones according to L.Holdridge bioclimatic system (72% of the 117 existing in the world)

• 2nd biggest forest area in South America, 9th in the world, 4th in tropical forests

• 2500 timber species; avg. 250 trees/ha; approximately 200 m3/Ha, avg. harvest 5 m3/Ha

68.7 million hectares of Forest• Coastal 4.6%• Andean 1.3 %• Amazon 94.1%

PERU: LAND OF FORESTS

Institutional Framework

National Forest and Wildlife Authority: General Directorate of Forest and Wildlife under the Ministry of Agriculture

Defines national forest policy and is directly responsible for: a) elaborate an d approve regulations for forest management, b) approve forest land use planning and develops the national inventory in coordination with regional governments, c) provides export permits, d) promotion of forest activities, e) manages the National Forest and Wildlife System

National Environmental Authority: Ministry of Environment Regional Forest and Wildlife Authorities: Regional Governments

responsible for * a) provide rights for forest and wildlife resources management y b) forest and wildlife control

*In regions where decentralization process has been applied.

Institutional Framework

Supervision: National Supervisor Organism of Forest and Wildlife Resources (OSINFOR) in charge of supervise the correct implementation of the rights given to manage forest and wildlife resources.

Control authorities:- National Police- Environmental Prosecutor- Ports Authority (DICAPI)- Tax Authority (SUNAT)

2. Legal Reform

New World Forest Management Paradigms

• Leave behind wood extraction approach and turn into an ecosystemic approach viewing the forest as a provider of and services.

• Multiple uses: wood, resins, rubbers, nuts and chestnuts, among others products different from wood, wild fauna, research, ecotourism and recreation, scenic beauty, water provision, capture and carbon retention, among others services.

• Multiple stakeholders: in several levels, direct and indirect: from inhabitants of the forests (local and indigenous communities) to all the society.

• Use and valuation of ecosystemic services as a key tool in the fight against deforestation and the climatic change

World Tendencies for Regulations

• Greater autonomy for forest national agencies. • Application of the subsidiary principle: competitions transferred to

the sub national authorities (federal or decentralized governments). • Emphasis ordering and zoning for the allocation of rights to access

resources. • Emphasis in incentives/prizes, before commando-control

instruments had little “enforcement” • Incorporate new instruments to give value to the forest. • Decision making that involves all, requires the participation of all. • Recognize the influence of other sectors´ regulation in forests

conservation (agrarian efficiency and competitiveness, labor opportunities, advances in bioenergy, etc)

Legal and Institutional Framework Improvements Legal framework improvements

• New Forest and Wildlife Law (Law 29763)• Forest and Wildlife Regulations under construction• National Forest and Wildlife Policy Bill for approval

Institutional changes• Creation of OSINFOR as an independent entity (DL 1085)• Creation of Ministry of Environment (DL 1013)• Decentralization process (up to 6 regions)• Personnel number increase and capacity building programs

applied (DGFFS, OSINFOR, GORES)

Control system strengthening: • Third parties allowed to be hired for supervision (DL 1085)• Verification of CITES species (100%) prior establishment of

export cuotas.• Audits for concessions every five years• Control module system under construction• Application online for CITES documentation

PERUVIAN FOREST AND WILDLIFE POLICY

Principles

Main Goal

Forest governance, Ecosystemic approach, Preventive and Precautionary approach, Competitiveness y Productivity, Intersectorial Approach, Interculturality

Equity and social inclusion, y Sustainable use of the forest and wildlife Patrimony.

Promoting sustainable development assuring conservation and sustainable use of goods and services from the forest ecosystems.

Specific Objectives

To Promote competitiveness through forest management and industrialization of forest and wildlife products and value adding productive chains.

To Strengthen forest governance and effective public administration on forest sector.

To Consolidate community forest management with social inclusion and equality.

NEW FOREST & WILDLIFE LAW

• Strengthens forest institutionalism: Creation of the Forest & Wildlife Service (SERFOR), with administrative autonomy.

• Facilitates public participation through SERFOR’s consultative and directive councils (CONAFOR & COREFOR)

• Specifies the roles of the regional governments in the forest administration

• Promotes forest certification • Recognizes and protects indigenous people’s rights• Establishes access conditions (concessions, permits, authorizations)

to goods and services of the natural ecosystems, including Environmental Services such as Carbon sequestration and conservation. (ecosystemic approach)

• Establishes legal locks to grant deforestation authorizations and forbids land use change from primary forest to agrarian purposes.

NEW FOREST & WILDLIFE LAW• Control enforcement adding detalied tools for control such as

forest zoning and categories in line with the ecologic economic zining (made by regional governments) and inventories of forests and wildlife.

• CITES species protection of species considered under Annex I such as cedrelia and mahogany stablishing special measures such as in site inspections before and after harvest.

SOCIAL INCLUSION IN NEW LAW

• Recognition and respect to ILO 169• Respect to traditional knowledge• Public participation in control and protection of the

forest resources (Local Forest Management Committees and Indigenous Communities Participation over their territories)

• Capacity building and technical assistance• Community forest management (with possibilities for

associative agreements with private companies)

Open Participation Process

Consultation Process with Indigenous People

Forest Law enacted

Rulings Approval

July 22nd, 2011

1st Draft

2nd Draft

Versión Final

End of 2012

Methodology and Calendar with Interagency Group

TODAY

New Forest and Wildlife Regulations

3. Forest Zoning and Land planning

FOREST ZONING•3 Forests Categories of Primary and Secondary forests divided by intensity of possible extraction•Planted Forests as product of forestation or reforestation where management of timber and non timber products is possible.

Permanent Production Zones

•Fragile ecosystems where limited extraction is possible. National Natural Protected Areas are settled in this zones (nowadays 73 covering 15.21% of the territory)

Protection and Conservation Zones

•Areas which require special strategy to restore their ecosystem. They may be for timber management purposes or for restoration and conservation

Recovery Zones

•Indigenous People in Isolation Reserved Territories: no management allowed•Agro forestry Production Zones•Residual Forests: appropriate for conservation, use of non timber products and environmental services, limited timber extraction)•Non forest vegetation associations (for non timber and environmental services)

Special Treatment Zones

PERMANENT PRODUCTION FORESTS

RegionsArea

Thousand (ha)

Ayacucho 146

Cusco 172

Huánuco 622

Loreto 9 302

Madre de Dios 1 935

Puno 25

San Martin 1 122

Ucayali 3 540

Loreto Ucayali: Biabo Cordillera Azul 899

TOTAL 16 864

4. Rights to access forest resources

ACCESS TO FOREST RESOURCES: Multiple uses and stakeholders

•Granted in Permanent Production Forests •Public Areas•Forest Management rights conceded for 40 renewable years

Timber Concessions

•Ecotourism, Conservation, Wildlife management•Public Areas•(brazil nut, medicinal and ornamental plants, bamboo, rubber, others)

Non Timber Forest Products Concessions

•Private Areas or Community areas with forests of any zoning category or forest and/or wildlife managementPermits•For extraction of ornamental, medicinal and riverside plants, use and tenure of wildlife, hunting in restricted areas. Authorizations

•Granted in Public Areas for agroforestry systems. (coffee, cacao)Use Cession

Forest concessions granted

Concessions Nº Area (ha)

For wood

Por Concurso Público 556 7,117,997.00

Por adecuación de contrato 20 343,886.44

For other resources different than wood

Castaña 983 863,778.11

Shiringa 23 16,021.39

Ecoturism 29 59,774.10

Conservation 18 648, 211.74

Wildlife management 2 4,590.12

Others

Reforestation 293 135,143.00

TOTAL 1 924 9, 189, 401.90

5. Promoting Good Practices in Forest Management

PROMOTING GOOD PRACTICE IN FOREST MANAGEMENT

• Forest certification is encouraged by Law (promotional conditions by reducing the annual fee to be paid). As a result we have 13 FSC-certified Forest Management operations and 28 Chain-of-Custody certificates

• Access right to forest resources include the right to economic benefits from environmental services such as CO2 capture.

• As a result of our forest good management, CITES Standard Committee recently recognized that Peru complied with the indicator s of sustainable management for mahogany.

• Voluntary commitment to reduce GHG emissions by avoiding unplanned land use change of forest lands and forest degradation.

• Peru hosts forest carbon projects (1 CDM and 2 VCS).

• REDD Readiness process ongoing

Greenhouse Gases Emission Reductions in the Forest Sector

6. Deforestation and Illegal logging

27

DEFORESTATION MAP OF PERUVIAN AMAZON– 2000

Main causes- Migrant agriculture- Illicit crops- Cattle - Projects of other sectors

(hydrocarbon, hydroelectric, roads, etc)

- Illegal logging - Illegal Mining- Forest Fires

Region Region area(ha)

Amazon forest original

extension (ha)Deforested area

(ha)Forest lost

(%)

Huancavelica 2 213 147 70 331,61 51 990,69 73,92Cajamarca 3 402 288 737 164,06 520 061,64 70,54Piura 3 589 249 65 359,65 31 737,07 48,55Ayacucho 4 381 480 338 575,22 135 373,07 39,98Junín 4 440 967 2 473 770,41 734 303,77 29,68Amazonas 3 924 913 3 660 824,56 1 001 540,11 27,36San Martín 5 125 331 4 861 264,88 1 327 736,15 27,31Huanuco 3 772 224 2 324 627,46 600 654,46 25,84Pasco 2 531 959 1 745 379,00 302 020,89 17,30Cusco 7 189 197 3 639 050,99 537 632,37 14,77Puno 7 201 227 1 589 608,30 146 041,32 9,19La Libertad 2 479 456 84 753,23 7 231,69 8,53Ucayali 10 241 055 10 110 075,70 627 096,73 6,20Loreto 36 885 195 36 299 852,66 945 642,15 2,60Madre de Dios 8 518 263 8 419 180,26 203 891,86 2,42

Total 105 895 951  76 419 817,98 7 172 953,97 9,39

DEFORESTATION

Fuente: Mapa de Deforestación de la Amazonía Peruana -2000 INRENA-CONAM / PROCLIM

DEFORESTATION FOR AGRICULTURAL PURPOSES

ESTRATEGIC MEASURES IN THREE FRONTS:A) Where deforestation focus: more vulnerable forests to be

affected. Conjunction government acts to keep value of standing forest.

B) Where people is forced to migrate: Emphasize productivity of economic activities in those areas to reduce migration to forest.

C) Where is already deforested: Limit the area and promote forestation activities.

A) Where deforestation focus.

• Eliminate incentives in agricultural sector with perverse consequences in forest (focus in correct assignment of credits, technical assistance, tenure rights)

• Reforce Land Planning based on:– Natural potential– Legal order

• Promote legal instruments to give value to standing forests: strengthening concessions system and communitarian forest management (technical and financial assistance)

DEFORESTATION FOR AGRICULTURAL PURPOSES

B) Where people is forced to migrate

- Strengthen productivity of economic activities : - Capacity building and technology transfer. - Create/strenghten association models- Create market information easily available

DEFORESTATION FOR AGRICULTURAL PURPOSES

C) Where is already deforested- Create conditions to reforest in the andes area:

- Investment funds and technical assistance to formulate and develop carbon sequestration projects.

- Optimize stablished agroforestry systems (premium quality coffee and cacao)- Technical assistance- Market intelligence

- Focalize correctly incentives for agricultural production in order to prevent them to become perverse incentives in forests.

DEFORESTACION POR TALA DE BOSQUES PARA ESTABLECER AGRICULTURA

6. Improved Forest Information System and Control Module

INTERNET and other

Information capture(Server DICFFS and links

SIF-AL)

entrances• Legal Information • Wood transportation• Information about forest and wildlife rights • Technical and scientific studies• Maps and other data bases

outcomes• Legal Manual• Forest statistics• Forest and Wildlife register• Systematize scientific information• Theme maps• Administrative System for CITES Permits

INTERNET and other

QUALITY CONTROL

OBJECTIVEIntegrate, systemize and analyze information and place

it publicly available

Information Processing

• SIF-AL (software)

• Others software

Proyect SNIC

7. Transparency and Anticorruption Actions

Forest Governance

Competition Transferences on Forest Sector• Since 2009 the Ministry of Agriculture has transferred functions to six regional

governments (Madre de Dios, Ucayali, San Martin, Loreto, Amazonas y La Libertad). Regarding south american camelidae, competences have been transferred to all regional governments expect regional government of Lima.

• We are developing and implementing a capacity program for regional governments based on 4 modules, with US cooperation.

Anticorruption Plan for Forest Sector. Anticorruption Plan was approved on july 14th 2011. It established actions for a period of 5 years concerning all entities involved in the forest

sector.

Forest Governance

Ministry of Agriculture received the prize “Good Practices on Forest 2010”. Awarded by a national NGO “Derecho, Ambiente y Recursos Naturales (DAR)” and “Global Witness” as a recognition of beign the public institution with best transparency and information available.

Website: http://www.minag.gob.pe/dgffs/With updated technical and legal information on the forest sector.

TRANSPARENCY

Ministerio de Agricultura

Dirección General Forestal y Fauna SilvestrePERÚ

Thank YouGeneral Directorate of Forest and WildlifeMinistry of Agriculture – Peru

www.minag.gob.pe