ETTF News Winter 2014 - The European Timber Trade Federation

ETTFNews
Winter 2014/15
@ettf1
www.ettf.info
$100,000 from ITTO meeting
primes EUTR data platform
The ETTF-proposed central information platform to assist companies with
their EU Timber Regulation (EUTR) due diligence has secured two-thirds of its
funding and is now set to start development.
Contents
The $100,000, of the required
$150,000, was pledged by
Netherlands and Japanese donors
at the International Tropical Timber
André de Boer
Organisation’s (ITTO) Council
meeting in Yokohama in November, following a
presentation on the project by ETTF Secretary
General André de Boer.
“This generous support has been confirmed
and [development] activity will commence
early 2015,” said ITTO Assistant Director Steve
Johnson “We will also engage with the ITTO
Trade Advisory Group (TAG) to ensure input on
relevant ITTO activities.”
Mr de Boer told the meeting that the online
platform would constantly update EU 'operators'
on supplier country laws which timber must
comply with under the EUTR. And he welcomed
the funding announcement as good news for the
European industry and EUTR implementation.
02 Belgians focus on Brazilian
legality
03 Dutch urged to widen tropical
hardwood options
04 ETTF members voice hopes and
expectations for EUTR Review
05 Cameroon SMEs talk EUTR and
FLEGT with EU trade
06 Europe should promote tropical
positives, says ATIBT
07 UK Wood Awards for timber
building bigger, better and bolder
08 Trade must urge sustainable
procurement for other materials,
says Danish Federation’s Jakob Rygg
Klaumann
09 Viewpoints from Davyth Stewart
of Interpol, David Hopkins of the
UK Wood for Good campaign
and new Chairman of the Wood
Toolbox, and Julia Young of WWF
11Leading timber operators
across Europe relay their EUTR
experiences over the last two
years, and explain how they
want to see the Regulation and
the FLEGT programme develop
for the benefit of the forest,
environment and timber trade
Winter 2014/15
He was also confident of securing the rest .
“We can now move to implementation,” he
said. “And I’ve also proposed to the Sustainable
Tropical Timber Coalition to support what
would be effectively a one-stop shop for EUTRapplicable producer country legislation and
documentation. I’m optimistic of securing a
further $25-30,000 and seeking suggestions on
raising the remainder.”
Under the EUTR, timber must be legal under
the laws of the country of origin. But currently
companies are on their own when it comes to
researching this legislation.
“A central data resource would not diminish
individual due diligence responsibilities, but
make their task more straightforward and
raise standards,” said Mr de Boer. “Ultimately
if all companies, and EUTR Competent
Authorities (CAs), referred to the same current
information it would also ensure more uniform
The website will feature
latest EUTR-applicable
producer country forestry
and timber sector legislation
implementation of the Regulation and enhance
its effectiveness against illegal timber.”
Mr Johnson said the platform concept sat
well with the ITTO policy as the TAG had a
similar concept for a tropical country forest
sector and timber trade information facility.
Other ETTF members backed the database
at a discussion meeting in the summer.
“It should also help harmonize criteria set
by CAs for due diligence processes,” said GD
Holz CEO Thomas Goebel. “And input could
come from NGOs, as well as CAs, importers,
federations and producer country authorities.”
GTF in Shanghai in 2015
The Global Timber Forum (GTF), the new ETTF-supported international communications and
networking platform for wood industry associations worldwide, is holding a summit meeting
in Shanghai, China, from June 9 to 11 2015. Its interactive website is also close to launch.
The GTF’s goal is to provide a channel, through its online presence and
events, for the global timber sector, including ETTF members, to share
news, views and best practice. Its role will also be to help develop the
market for wood, and, working with other bodies, to strengthen the
industry’s voice to key decision makers in government, industry,
NGOs and the wider market.
Key areas of focus are making the most of the forest
resource; meeting market legality requirements; promoting
timber and wood products; and realising new market
opportunities for wood, especially in green building.
The GTF 2013 launch summit, co-convened by the
ETTF at the Rome HQ of the UNFAO, attracted
over 80 delegates from 40 timber organisations
globally. The Shanghai event is expected to attract
up to 120 association representatives from around
the world to discuss and confer on key issues.
The GTF Website now in final development, will be
an open access information exchange and database. A
Forum section will host live discussions on latest industry
developments and concerns, with site users able to post
comment and raise key questions.
The core theme of news coverage, which will also include
feedback facilities, will be timber’s key strategic role in
achieving a global green, low carbon future.
The site will also include a global industry contact database.
For more [email protected]
The ETTF Newsletter is produced with funding from the UK Department for International Development
01
ETTF News
@ettf1
Brazilian legality a focus
for Belgian traders
Bart
De Turck
As authorities continue to hold Rotterdam-transiting containers
of ipe for further investigation under the EU Timber Regulation
(EUTR), the Belgian Timber Importers Federation (BFHI)
organized a special workshop on Brazilian timber legality.
The November BFHI event was organized with
environmentalist trade monitoring network
TRAFFIC, and addressed by Olivier Demaret of
Belgium’s EUTR Competent Authority, the SPF.
There were also presentations from auditing
body and EUTR Monitoring Organisation
NEPCon, Ramiro Azambuja, director of Brazil’s
processed timber industry association ABIMCI,
and Geraldo Bento, chairman of the country’s
forest sector national forum, FNBF.
“We had 30 delegates representing most
Belgian tropical hardwood traders,” said
BFHI General Secretary Bart De Turck. “The
event was planned [to address broader EUTR
issues], but because of latest developments
we concentrated on Brazil. It was useful for
confirming that legality of shipments can only
be proven in the ways our importers currently
use; by ensuring they have exactly the right
documents, verified in exactly the right way.
TRAFFIC said the only course beyond this was
to inspect the source in person, which our
importers or their representatives also do.”
NEPCon explained how importers could
mandate them as an MO to undertake
supplier inspections and chain of custody
checks. Mr de Turck highlighted that this
would incur additional cost for companies,
although this could be shared with other
traders sourcing from the same suppliers.
Earlier this year the Greenpeace report
The Amazon’s Silent Crisis alleged high levels
of illegality in the Brazilian timber sector,
notably Parà. Following its claims, Saint Gobain
Building Distribution in the UK withdrew
ipe from sale at subsidiaries Jewson and
International Timber. Other UK importers also
put ipe on hold and the NGOs urged other
national CAs to investigate Brazilian imports.
At the time of going to press, Mr Demaret
said investigations by SPF and customs
into the six containers of ipe imported into
Belgium were ongoing. They were currently
awaiting ‘clarity’ on legality documentation
from Brazil and Belgian ‘operator’ importers.
Ipe in the forest
www.ettf.info
More Danish merchants
on course for certification
XL BYG Group is the latest
to follow a growing trend
among Danish timber and
building merchants to opt for
environmental timber chain
of custody certification – a
move backed by their ETTFmember industry federation
Danske Byggecentre.
Palle Thomsen
The company launched their
joint PEFC and FSC multi-site certification
programme earlier this year and passed
the audit in October. Managing Director Jes
Gravesen said it was a demanding process.
“Stores had to adapt to a broad range
of new procedures, and staff underwent
training in handling and selling certified
wood,” he said. “But it’s the right way to go
to meet the expectations of increasingly
environmentally-minded customers.”
Danske Byggecentre Chief Executive Palle
Thomsen said the growing timber market
trend to certification had been reinforced by
the Danish government’s recent decision to
specify sustainable material only.
“We expect the government's lead to
result in more big businesses implementing
similar procurement guidelines,” he said.
“This will obviously give merchants that go
through the certification process a leg up.”
He added that Danske Byggecentre is
itself working to promote sustainability
in construction, liaising with certification
bodies like PEFC Denmark “to bridge the
gap between merchants and requirements
for sustainability”.
Extend EUTR to more secondary wood
products, NGO report urges
As the first Statutory Review of the EU
Timber Regulation (EUTR) gets underway
(p4), a new report highlights how much
material is bypassing the anti-illegal
timber measure in the form of exempted
secondary wood products.
The study was drafted by independent
consultancy Probos, and commissioned by
WWF Netherlands. It assesses key secondary
timber products import flows to the EU in
general and the Netherlands in particular, with a
focus on products beyond the EUTR’s scope.
Origins of many secondary products are unclear
Winter 2014/15
Main conclusions are:
• Secondary wood products’ average share of
EU-28 timber imports by value from
2008-2013 was 49.9%.
• Top importers are UK, Germany, France, the
Netherlands and Italy.
• Of the extra-EU secondary wood product
import total, 47% was EUTR exempt.
Imports of these secondary products into the
Netherlands were further studied by country of
origin, timber species, major importers and
sustainability certification. Items included ‘other
seats with wooden frames’ (upholstered and
not), books, paper and paperboard packaging,
charcoal, and guitars.
The report also highlighted that most
EUTR-exempt secondary timber imports
came from countries without bans on illegal
timber import or trade.
“This underlines the risk that EU secondary
timber product imports contain illegal timber,”
said WWF Netherlands. “So, as part of its
Review, we are calling on the EU to enlarge the
scope of the EUTR to all timber products.”
For more:
www.probos.nl/rapporten-2014/1162-importof-secondary-timber-products-by-the-eu28
An XL BYG branch
Cautious Austrian outlook
An Austrian Timber and Woodworking
Federation survey shows its members
expecting continuing challenging market
conditions. Companies reported a good
first quarter, but the rest of 2014 as
stagnant, notably in veneers, lumber, and
construction timber, with tight prices,
rising costs and bad debt. With Austria's
low public spending hitting demand,
businesses say maintaining present sales
levels in 2015 would be seen as a success.
02
ETTF News
@ettf1
www.ettf.info
Over-specification curbs sustainable wood sales
Use of verified sustainable timber could be limited by specifiers being too restrictive in choice of species and certification scheme.
This was the concluson of a seminar on
sustainble timber in government projects
organised by the Netherlands Green Deal
initiative.
An alliance of industry, end users, retailers,
NGOs and government, including Tropenbos
and the Royal Netherlands Timber Trade
Association (NTTA), the latter aims to make
sustainable certified timber the Netherlands
market norm.
The seminar, under the title “Stimulating
Sustainable Forestry”, took place in Tiel at the
Tropical hardwood lock gates
from NTTA-member Wijma
Rivierenland Water Board
(Waterschap).
Delegates heard that
certified sustainable timber
has risen from 58% to
86% of NTTA members’
total imports since 2008.
However, in hardwood
Hennie Roorda of Rivierenland
certified material’s share is
Water Board addresses the meeting
only 55%, so “considerable”
efforts were needed to boost
“By adhering to government certification
sales, particularly in Netherland’s key marine
criteria and specifying physical mechanical
products sector, said speakers.
properties rather than species, you give
One route to market growth, it was
contractors freedom of choice,” she said.
suggested, was to give contractors greater
“That not only potentially increases the
specification freedom.
quality and cost effectiveness of the project,
The Netherlands government’s Timber
but helps broaden use of wood from
Procurement Assessment Committee (TPAC)
sustainably managed forests."
accepts FSC, PEFC and Malaysian MTCS
René Boot of Tropenbos agreed.
certification as proof of sustainability. According
"Focusing on a single type of wood also
to Annemieke Visser Winterink of the Probos
reduces the economic value of the forest,
forestry foundation, specifiers should therefore
and consequently resources available for
opt for material verified under any of these
sustainable forest management," he said.
schemes, and focus on technical capabilities
For more www.bewustmethout.nl.
rather than specific species.
Database highlights lesser-known tropicals
An online specification database, with
a focus on lesser-known timber species
(LKTS), is one of the first market outcomes
of the Sustainable Tropical Timber
Coalition’s (STTC) programme to revive and
develop the European tropical sector.
Launched in 2013, backed by the ETTF,
the STTC’s goal is to highlight that use
of sustainable tropical timber is vital to
providing a commercial incentive for forest
maintenance. It comprises an EU-wide
alliance of public and private sector backers
and has working groups for communication,
developing business contacts, legality and
sustainability and technical issues.
The latter group initiated the new wood
database (www.houtdatabase.nl ). It was
developed by the Netherlands Timber Trade
Association (NTTA) and forestry sustainability
agency Probos, with Dutch government
support. It matches timber species to
application, providing data on mechanical
properties, aesthetics, processing,
applications and availability. Initially in Dutch,
it is now being translated into English.
LKTS are central to the database, as the
STTC maintains that wider awareness and
knowledge of these can increase European
specifier interest in tropical timber and
broaden its application. Critically, they can
also make sustainable forest management
more commercially viable.
“With common species at risk of depletion,
using LKTS could add value to forest areas
and disincentivise clearance for other
uses,” said the STTC. It added that its
technical issues group is now also looking at
construction façade use of LKTS.
Norway builds bridges
to market growth
Norway has announced a
programme to boost timber
bridge construction.
Currently 10% of Norwegian bridges
are built in wood, but Otto Kleppe,
Director at the Public Roads
Administration, said there was ‘strong
political will to increase that significantly’.
“We are directing state funds to
research and export growth,” he said.
The development programme, he
added, includes engineered wood
specialist Moelven and the Norwegian
Institute of Wood Technology.
Norway currently builds around half a
dozen large timber road bridges annually.
Winter 2014/15
“The longest is 70 metres but twice that is
feasible,” said Mr Kleppe. “Timber is a major
Norwegian resource so we are keen to
show we are prepared to invest in its use in
technically demanding applications.”
Norway has recently averaged €400
million annually on bridge building, but
the new finance will fund an additional
140-160 projects.
Expo helps make MADE
Pavilion designs for the Milan
Expo will be on show at the MADE
construction fair in the city,
which is owned and managed by
wood and furniture federation,
FederlegnoArredo, parent association
of ETTF member Fedecomlegno.
The structures for the May to October
Expo, which is expected to attract 30 million
visitors, will be unveiled at MADE from
March 18-21, complementing its timberbuilding, interiors and fittings exhibits.
MADE has switched from annual
to biennial, and show chief executive
Giovanni De Ponti said coinciding with
Expo made for an auspicious launch for
its new format.
“Our focus is opportunities for Italian and
international business audiences looking
for contacts on a worldwide scale,” he said.
“With EXPO 2015 on the horizon, Milan’s
marketing communications are heading for
a new international dimension.”
In 2013 MADE attracted 211,000
visitors, including 36,000 from abroad.
Timber-based building
is a key MADE focus
03
ETTF News
@ettf1
www.ettf.info
EUTR and FLEGT Reviews will consult widely
The European Commission’s 2015 Reviews of the EU Timber Regulation (EUTR) and Forest Law Enforcement Governance and
Trade Action Plan (FLEGT AP) will be as wide-ranging and consultative as possible.
This is the message from Bernard Crabbé of
the EC Directorate General for Development
and Cooperation (DEVCO).
“The Commission wants a balanced
mix of stakeholders consulted, including
governments, private sector and civil society,”
he said. “Particular attention will be paid to
involving business representatives, in partner
countries and the EU.”
FLEGT consultation at an Indonesian mill
Consultants appointed for the EUTR
Statutory Review have now started collating
implementation and enforcement data.
“Online stakeholder consultation will also
take place early in 2015,” said Mr Crabbé. “And
EU member states will additionally submit
EUTR biennial reports in April.”
The Commission will subsequently submit its
EUTR report to the EU Council and Parliament
by December 3 2015.
“It will review the functioning and effectiveness
of the Regulation and will be made publically
available,” said Mr Crabbé, adding that any
Regulation reforms required will follow in 2016.
The review of the wider FLEGT AP, including
the FLEGT Voluntary Partnership Agreement
(VPA) initiative to help producer countries
implement forestry and timber legality
assurance systems, began with a November
meeting between consultants and the EC
Steering Committee.
Wider consultation starts February, including
surveys of private sector and civil society
FLEGT engagement in member states and VPA
A Ghana FLEGT VPA
stakeholder meeting
signatory countries, bilateral meetings and a
“multi stakeholder workshop” during Brussels
FLEGT Week from 16-19 March. A “web-based
tool” will allow further stakeholder input.
The FLEGT review team will also visit VPA
signatory and other producer countries, China
and member states. The process completes
next October.
For review updates: http://ec.europa.eu and
www.euflegt.efi.int/eu-flegt-evaluation
ETTF urges uniform EUTR enforcement
and FLEGT VPA progress
The ETTF sees scope for the Reviews of the EU Timber Regulation (EUTR) and
Forest Law Enforcement, Governance and Trade Action Plan (FLEGT AP) to
drive improvement in implementation, operation and greater clarity in both.
The ETTF itself is currently talking with
other bodies, including the European
Confederation of Woodworking Industries
(CEIBois) and Association Technique des
Bois Tropicaux (ATIBT) to establish joint
positions to put to review panels.
“Among our points is the need for more
guidance on the scope of EUTR applicable
producer country timber and forestry
legislation,” said Secretary General André
de Boer. “Ensuring more equal enforcement
across member states is also essential.”
The latter view was echoed by Anand
Punja, Head of Sustainability at the UK
Timber Trade Federation (TTF).
“It is quality of enforcement that is of
interest as there’s a perception it is higher
in parts of Europe than others,” he said.
“This puts companies in certain countries at
a competitive disadvantage.”
The TTF, he added, has suggested key
performance indicators for EUTR enforcing
Competent Authorities (CAs) and was
‘reassured that many aspects of these have
been picked up’.
Mr de Boer said the EUTR Review should
also address the role certification could
play in ‘operator’ importers’ due diligence
illegality risk assessment and mitigation.
“There’s a view that certification schemes
which fully address its proof of legality
criteria should get a semi-green lane
through the EUTR,” he said.
Mr Punja agreed EUTR should “find an
Winter 2014/15
André de Boer
inclusive way to build on the excellent work
certification has done and place greater
value on it”.
ETTF members also want the EUTR
exemption of ‘secondary wood products’,
such as certain types of furniture, to be
readdressed. Bart De Turck, General
Secretary of the Belgian Timber Importers
Federation (BFHI), maintained that current
criteria are not sufficiently risk-based.
“Clearly composite products with long
supply chains from high risk countries, like
Chinese furniture, should be a key focus.”
The role of Monitoring Organisations
(MOs) was another issue raised at a recent
meeting of the EUTR review group of Forest
Based Industries, a pan sector body formed
to advise on EU wood sector policy. MOs are
authorised to operate EUTR due diligence
systems on behalf of client companies, but so
Hardwood conference
broadens scope
The ETTF will jointly host the 2015
International Hardwood Conference in
Copenhagen on September 17 with the
European Sawmillers Organisation (EOS).
Consequently it will broaden to encompass
non-European species, including tropical,
as well as European hardwoods.
Anand Punja
Bart De Turck
far only four have been appointed.
On the Review of the FLEGT AP and its
Voluntary Partnership Agreement (VPA)
programme with supplier countries,
ETTF members said they wanted more
rapid progress toward VPA signatories
supplying legally assured FLEGT licensed
timber, which will be exempt from further
EUTR due diligence. Several suggested
more support was needed in producer
countries, plus more analysis of the
potential EU market value of FLEGTlicensed timber to incentivise the process.
“We also need to identify if there are
common [issues slowing progress on VPAs],”
said Mr Punja.
Mr de Boer finally cautioned EUTR
reviewers that “if there was any pressure to
raise its bar from legality to sustainability,
the industry will oppose it”.
Eco impact guide launch
UK timber promotion campaign
Wood for Good has launched a
Users Guide for its online lifecycle
assessment (LCA) database. It shows
how to use the database to estimate
timber products’ environmental
impacts, including global warming
potential and water footprint.
www.woodforgood.com
04
ETTF News
@ettf1
www.ettf.info
Cameroon SMES and European
trade urge EUTR cooperation
In a groundbreaking event in Brussels, Cameroonian timber sector small to medium
sized enterprises (SMEs) met EU industry representatives to discuss challenges
and opportunities represented by the EU Timber Regulation (EUTR), and the
country’s FLEGT Voluntary Partnership Agreement (FLEGT VPA).
Around 25 Cameroonian delegates took
part in the trip, which included site tours,
a workshop and meetings with timber
businesses, the Belgian Competent Authority,
and EU and FLEGT Facility representatives.
The host was NEPCon, the Danish-based
international environmental consultancy
and EUTR Monitoring Organisation (MO).
The rationale of the event, it said, was that
EUTR requirements impose complex new
burdens on suppliers, which SMEs can find
especially problematic.
“The effects are throughout the supply
chain and this was an opportunity for
suppliers and importers to discuss how to
meet challenges together,” it said.
Global Timber Forum’s (GTF) Rachel Butler
gave an overview of the EUTR’s new market
requirements, stressing that the onus for
EUTR due diligence was on the EU ‘operator’
buyer, not the supplier. The GTF’s new
networking and communications website,
she added would facilitate international best
practice exchange on these issues (see p1).
Martin Mbongo of the Cameroon
Forestry Ministry also described its policy
for increasing EUTR communications
between supplier SMEs, EU customers and
Competent Authorities.
“A specific discussion point was the EUTR
obligation on EU ‘operators’ to demand
documentary evidence of legality and
the fact that they are currently doing this
individually.This is leading to suppliers being
asked for all kinds of information and feeling
overwhelmed by a tsunami of requests,”
said ETTF Secretary General André de Boer,
who also attended. “The need to streamline
Delegates at the Brussels event
Spanish take tropical timber support online
Efforts to boost the tropical timber sector will form a central focus of the Spanish Timber
Trade Federation’s (AEIM) online communications relaunch.
Earlier this year, AEIM became a supporter
of the Sustainable Tropical Timber Coalition
(STTC), the international public and private
sector programme launched by Dutchgovernment agency IDH-The Sustainable
Trade Initiative to revive and develop
Europe’s tropical market.
Subsequently at the Madrid Sustainable
Construction Show, it featured STTC
branding on its stand and distributed
1500 copies
of its “Tropical
Timber; Why
Not?” leaflet in
Spanish.
“We also
organised an
architects’
seminar on
timber as
sustainable
construction
material,” said
AEIM General
Alberto Romero (right) at the
Secretary
Sustainable Construction Show, where
Alberto Romero.
AEIM distributed its tropical leaflet
At this event,
Winter 2014/15
he added, discussions additionally took
place with forestry consultancy Probos,
sowing the seeds for developing AEIM’s
STTC support as an integral element of its
new online programme.
“Internet communications, especially
via tablets, laptops and smartphones, are
key for reaching our core target for this
campaign; the architects and designers,”
said Mr Romero. “Our existing website
already gets 1,000 hits a month, and on
Twitter @aeimmadera has 2,321 followers,
including many specifiers.”
In 2015, he added, AEIM expects these
numbers to grow with its website rebuild, as
will Spanish exposure to the STTC message,
which will be further embedded into its
online activity as part of the process. The
STTC logo and news will feature prominently
on the new site, and a data section will have
full specification information on 45 tropical
species, including application pictures and
details of certification, availability and origin.
“We’ll also have information on lesser
known species which could complement
those under high demand pressure, like Ipé,
teak and iroko,” said Mr Romero.
Cameroon SMEs feel
overwhelmed by EUTR
data requests
information flow is obvious, which has led
the ETTF to propose its one-stop online
EUTR legality information database (see p1).”
“Cameroon delegates also said they aim
to complete the VPA process in 2016, but
stressed their need for more support in
establishing FLEGT VPA legality assurance
systems,” said Belgium Timber Importers’
Federation General Secretary Bart De Turck.
NEPCon said they hoped the Brussels
meeting would trigger ongoing EUTR
communications with Cameroonian SMEs.
German customs plywood
misclassification hits trade,
says GD Holz
German timber trade federation GD
Holz is urging customs authorities to
revise their current approach to Chinese
plywood classification, which is leading
to imposition of higher duty rates.
The problem centres on German customs
classifying any product comprising layers of
veneer bonded together in a ‘parallel’ way
as ‘similar laminated wood’. This subjects it
to 10% duty, against plywood’s 7%.
GD Holz pointed out that Chinese
plywood has areas of ‘parallel’ bonded
material because it is a low tech product,
aimed at such applications as concrete
formwork. As a result, it often includes
manual veneer jointing and defect filling,
leading to accidental ‘parallel’ stratification.
GD Holz has persuaded customs to
sample plywood only in central areas,
where veneer overlaps are less common.
But the authorities still insist that, even if
boards have these defects randomly, they
must be subject to the higher duty.
“By our calculation, since 2012 this
additional 3% has
cost our members
€900,000,” said GD Holz
CEO Thomas Goebel.
“Taking into account
additional sample costs
and storage, this could
rise to €1.3m. Unable
to pass the increase
on for such a low
margin product, some
importers’ plywood
Chinese plywood
manufacture includes
turnover has fallen 30%.”
manual jointing
GD Holz has now
taken the matter to the
Federal Ministry of Economic Affairs. “The
only other route is court, or companies
transferring to alternative European ports,”
said Mr Goebel.
05
ETTF News
@ettf1
African SME market requirement
support gathers momentum
Telling the good
tropical news
The industry needs to communicate
positive news about tropical timber to
underpin market demand.
The Forum audience
This was the call from the International Forum
of the Association Technique Internationale
des Bois Tropicaux (ATIBT) in Amsterdam in
November, which was supported by the ETTF.
The theme of the event, which was also
sponsored by the Sustainable Tropical Timber
Coalition, ITTO, UNFAO and EFI FLEGT facility,
was Strengthening Trust in Tropical Timber.
ATIBT Director Ralph Ridder told the
150-strong audience that tropical timber's
global market position was under threat.
Defending it meant tackling misinformation,
notably its automatic association with
rainforest destruction. Its unique technical
capabilities and inherent value in providing
commercial incentive for forest maintenance
also needed to be more widely highlighted.
"We must communicate the positive
stories better to customers, specifiers and
the media,” he said.
An ETTF-supporrted, Global Timber
Forum (GTF) co-funded initiative to help
central African small to medium-sized
timber enterprises (SMEs) cope with
tough new market legality requirements
is gaining political support.
The trade must
highlight tropical
timber’s unique
properties
The STTC said its strategy was to influence
public and corporate procurement in favour of
tropical timber through market education
“Persisting fear of tropical timber is the
biggest enemy, not just of the trade, but of
the forest,” said Ted van der Put, Programme
Director at IDH-The Sustainable Trade Initiative,
the Netherlands body coordinating the
Coalition. “If it undermines demand for timber,
forest conversion will accelerate.”
On ATIBT’s own strategies, Mr Ridder said
it aimed to expand membership, increase
cross-sector collaboration and step up market
education. Under new communications head
Tullia Baldassarri, it has already relaunched its
website and newsletter and started a tropical
timber consumer survey.
The ATIBT also announced its project to
create a timber DNA database for its central
African producer members’ key species, in
association with DNA-tracking specialists
Double Helix, and Germany’s Thünen Institute.
“Using genetics to determine legality
will support long-term access to markets
with increasingly strict legality and other
procurement requirements, like the US and
Europe,” said Mr Ridder, adding that the
project is actively seeking donors.
SMEs need FLEGT and EUTR support and engagement
The ATIBT Forum (above) also addressed tropical sector issues surrounding
implementation of the EU Timber Regulation (EUTR) and EU FLEGT Voluntary
Partnership Agreement programme
Consultant Caroline Duhesme said her EUTR
Congo Brazzaville impact study identified
variation in due diligence approaches from
European companies as a problem.
“Due to continuing lack of understanding
[of the Regulation] in the EU trade, suppliers
face a variety of requests for information, and
details that aren’t required,” she said.
Other speakers addressed the slow
progress of the FLEGT VPA programme
Bérénice Castadot and the Unibois team
Winter 2014/15
www.ettf.info
to establish legality assurance systems in
supplier countries, with no signatory yet
authorised to issue FLEGT licences which
would allow their timber access to the EU
without further EUTR due diligence. Several
stressed the need for small to medium sized
suppliers to be more engaged with FLEGT.
ATIBT echoed this view and FLEGT specialist
Bérénice Castadot highlighted its work with
the UNIBOIS SME alliance in Congo Brazzaville.
“This involves education on
technical aspects and developing
tools,” she said. “Ultimately our
aim is to extend it elsewhere.”
While acknowledging the time
it was taking signatory countries
to reach FLEGT licensing stage,
Chris Beeko of the Ghana
Forestry Commission said it was
important to stress what the
initiative has achieved so far in
forestry practice improvement,
increased transparency and
stakeholder engagement.
The project, ‘Supporting and
Enabling the Central Africa Timber
Trade Sector’, started in 2013 by
identifying the key challenges
posed to SMEs by the EU Timber
Regulation (EUTR) and Forest
Law Enforcement Governance
and Trade Voluntary Partnership
Agreement programme.
Also supported by the
Economic Community of Central
Germain Yene
African States (ECCAS), the focus
is on Cameroon, Congo Republic,
Democratic Republic of Congo and Gabon,
with consultations including SME trade
bodies, forestry administration and VPA
participant representatives.
The initial outcomes were country and
regional reports presented at the meeting
of the ECCAS regional FLEGT unit in Douala,
Cameroon, last April, where a communiqué
on constraints facing SMEs and potential
solutions was drafted.
In October, the communiqué’s conclusions
were discussed at the ECCAS inter-ministerial
conference in Kinshasa on the “Fund
for the Green Economy and Structural
Transformation of the System of Economy of
natural resources in Central Africa”.
“Two draft political decisions were
approved by ministers; one on ECCAS
SME promotion and one covering SMEs’
market access and governance,” said project
facilitator Germain Yene. “These were
further validated by the ECCAS council of
ministers meeting in Ndjamena, Tchad and
put forward for consideration at the next
heads of states conference.”
Presidential succession at HTA
The Hellenic Timber Association (HTA)
has elected its new board of directors
and agreed its presidential succession.
The new board comprises Elias Stergiou,
Vice President, Vicky Kaltsidou, Secretary
General, Kostas Xenos, Treasurer, with
other members comprising Alexandra
Gerardi, Antonis Stasinopoulos, Xaris
Rouhatas and Michalis Xalkiadakis.
Yannis Albanis, who has been President
of the HTA since 2005, was reelected to the
post, but will be succeeded by Vice President
Christos Papanastasiou at the year end.
Yannis Albanis, Christos Papanastasiou, Kostas Xenos
06
ETTF News
@ettf1
www.ettf.info
Wood Awards reflect UK wood construction renaissance
The number and range of entries for this year’s UK Wood Awards competition highlighted
that timber construction is now a key component of the country’s built environment.
Ditchling
Museum
Alfriston School
Award runner-up, WWF UK
headquarters by Hopkins Architects
Hat Tree
That was the view of architect Alison
Brooks, addressing the Awards
presentations in London in November.
“This, in turn, underlines how timber
engineering has advanced in the UK and the
extent to which architects’ and designers’
understanding of the carbon and wider
environmental benefits of using wood has
grown,” she said.
In total there were 300 entries across
the building and furniture categories of the
event, backers of which include AHEC, the UK
Timber Trade Federation and Wood for Good.
The Arnold Laver Gold Award went
to the Ditchling Museum of Art+Craft, a
restoration/construction project by Adam
Richards Architects featuring CLT and
English Oak. The Commercial and Public
Access Award went to The Sam Wanamaker
Playhouse in London, designed by McCurdy
& Co in English and European Oak, redwood
and spruce. House No. 7 in Scotland by
Denizen Works, using Scottish spruce
glulam, larch and pitch pine, won the Private
Award, and Alfriston School Swimming Pool
in Beaconsfield by Duggan Morris Architect,
with its glulam and cross
laminated timber roof, the
Structural Award. The Studio
in Oxford by James Wyman
Architects, featuring English
sweet chestnut, took the
Small Project Award.
One of two Special Awards
went to dRMM Architects for
Endless Stair, an exhibition
project using American
tulipwood CLT structurally.
The Bespoke Furniture
Award was won by Makers’
Eye for European oak furniture
at St. Hugh’s College, Oxford,
while the Production Furniture
category went to Fowler & Co
for its European birch Hat Tree’.
Technology supports north Italian timber
A willingness to invest has seen companies across the timber sector of northeast
Italian region of Triveneto come strongly through the downturn.
This was the conclusion of a report
presented at the national conference
of Italian Wood Associations in October
at Godega di Sant’Urbano, which was
organised by Federlegno Arredo, parent
trade body of ETTF member Fedecomlegno.
The Gardino Consulting study, the
200-strong conference audience heard,
found that companies across the sector in
Triveneto, notably wood packaging makers,
had suffered less in the recession than
competitors elsewhere in Italy.
“The reason was continuing commitment
to investment,” said Fedecomlegno
Chief Executive Domenico Corradetti.
“Machinery used is more modern,
especially in sawmills and packaging plants,
Winter 2014/15
and companies also continued to recruit.”
The roofing and larger timber
construction sector in the region saw sales
decline 20-25%, but this was also less than
contraction in the rest of Italy.
The Gardino report also forecast
improvement across timber and timberusing sectors in the region in 2015.
President Roberto Snaidero said
Federlegno Arredo was now focused on
spreading growth across the Italian industry.
“There are positive indicators from the
renovation sector and in terms of work to
improve building energy efficiency,” he said.
A report was also presented on Italy’s
pallet recycling and reuse sector, which
processes 25 million units annually.
The Studio
FSC OCP data
protection challenge
VDP, the German paper industry
association, says companies testing the
FSC’s Online Claims Platform (OCP) may
risk infringing German data protection
law. The conclusion follows a review
by the data protection authority of the
German state of North Rhine-Westphalia,
which apparently found issues with the
OCP’s provisional terms and conditions.
As a result, VDP said in a November press
release that the OCP should not be operated
on its current terms and conditions and users
should not enter real data.
The VDP’s latest criticism comes after FSC
International responded to wider timber
and paper trade concerns over the OCP’s
operation by allowing participation by
certified companies to remain voluntary.
It had previously envisaged making it
mandatory and rolling out globally in 2015.
The concept for the online database was
to enable continuous monitoring of all FSCcertified timber through the supply chain.
In response to the VDP, FSC International
said a verdict on whether the OCP’s terms
and conditions infringed German law would
only be made by the authorities once FSC
presented the final version for review
after the consultation process has been
completed. The latter is expected to start
shortly, tying in with the FSC’s chain-ofcustody standard revision consultation.
New UK trade body by Q2
Plans for the UK Timber Trade (TTF)
and British Woodworking Federations
to form a joint company headed by one
chief executive should be complete
by summer. TTF chief executive David
Lennan said the Federation boards
would vote on the proposal in June.
The move would effectively create a
new trade body of over 1000 members.
MO approvals ‘soon’
Earlier EC predictions that four
more EUTR Monitoring Organisation
applications were likely to be approved
in 2014, did not come to fruition. But
a spokesperson said approvals were
expected in the first quarter of 2015.
07
Interview
@ettf1
Animated
ambition
www.ettf.info
Denmark's
wood
promotion
animations
have been
a global
internet hit
And Danish
construction
is in recovery.
Architect
Eentileen
Photo: Nikolaj
Callisen Friis
The Danish timber sector is emerging from the downturn determined to build on its
successful promotional strategy and capitalize on government sustainability commitments,
Danish Timber Trade Federation Director Jakob Rygg Klaumann tells the ETTF Newsletter.
What is the state of the Danish economy
and timber industry?
appoint a CA and put EUTR implementing
legislation in place. It has performed checks on
our biggest importers, companies accounting
for 25-30 % of import value, and taken a
very sensible route. There have been no
prosecutions yet, but it has engaged in dialogue
with the sector and made itself visible. It has also
announced a step up in investigations in 2015,
including physical product checks.
sustainable materials.
And in that strategy
Jakob Rygg Klaumann
timber products are
highlighted as an
exemplar of sustainability, so things are moving
in our direction. But we still need to promote
use of timber as a solution to specific policy
targets, and highlight that obvious solutions are
sometimes solutions you don’t see.
Who are your industry's key customers?
What’s your view on reported variation in
EUTR implementation in different states?
What’s been the impact of the Danish Wood
Initiative’s (Træ Er Miljø) popular timber
promotion animations ?
The sector has been hit quite hard during
three and a half years of economic stagnation,
with loss of turnover and jobs. But rising
Danish consumer and business confidence
is stimulating private consumption and
investment, and the economy is now expected
to experience modestly positive growth.
Construction and woodworking sectors
are main markets and both show signs of
improvement. However, woodworking is very
export oriented and some traditional markets
are still depressed.
Does certified timber have significant profile
in the Danish market?
Yes, more of our members are getting chain of
custody (CoC) certified under PEFC or FSC or
both, and recently big retailers have done the
same. In June this market move was reinforced
when government changed its procurement
policy in favour of sustainable timber only.
How has your membership coped with
the EU Timber Regulation (EUTR)?
They were well prepared, having worked
towards ensuring supply chain legality and
sustainability for many years. But the EUTR
also introduced new system requirements
and terminologies that posed challenges. To
simplify the process we adopted the ETTF due
diligence system (DDS) to form the backbone
of members’ EUTR strategy. We introduced
support in species recognition, including
DNA testing and we’re also now backing
ETTF proposals for a central website collating
current information on EUTR-applicable
producer country timber legislation (see p1).
Has the Danish EUTR Competent Authority
(CA) enforced the EUTR strictly?
Denmark was one of the first EU states to
Winter 2014/15
Lack of uniformity on enforcement is a basic
concern. And the EU Commission’s EUTR
Scoreboard published earlier this year did
little to relieve that concern. Having said that,
the Danish CA is now working closely with UK
and Nordic counterparts, sharing practical and
technical experience, so some enforcement
harmonization is taking place.
What’s the latest on your involvement with
the Danish Intergovernmental Panel on
Climate Change, assessing carbon storage
of harvested wood products (HWP)?
The Panel’s report is due soon, but it may prove
difficult for us to communicate the conclusions
as the IPCC accounting rules for HWP don’t
favour imported wood use. So Danish Forest
owners will have a clearer message to promote:
Use Danish Timber for the benefit of Denmark’s
CO2 account. And, while imports dominate
market share, Danish HWP sales are growing.
As the importers association, the Danish TTF will
have to communicate something more generic
from the panel’s conclusions, like ‘Tackle Climate
Change: Use Wood’.
Your Federation has pressed the Danish
government to apply equally strict
environmental procurement criteria to other
materials. What has been the outcome?
Recently it did unveil a new strategy for Danish
Construction highlighting five key focus
areas, one of which is promoting use of more
We’ve had great feedback and still get a lot
of positive attention from across the timber
supply chain worldwide. The format is unique,
the message easy to understand and they’re
so easy to spread. So far the three films have
been viewed over 125,000 times online and
they’re now available in five language versions.
We have no current plans for a fourth, but you
should never say never!
What other promotions or lobbying
initiatives to boost the Danish timber
sector are planned?
Træ Er Miljø is working on an entirely new
platform to communicate to the public arena
and will launch a new website in 2015. As a
federation, we will also lobby for increased use
of wood in construction, and specifically we will
use the new government construction sector
strategy as a route to target and influence
politicians. In other Nordic countries there's
firm political will to promote timber use via
dedicated national programmes. Of course
their forest and wood working industries have
greater weight in their national economies, but
we’re still inspired by their achievements.
So are you optimistic for the future of the
timber sector in Denmark and globally?
Yes, definitely, as it is the only industry based
on a truly sustainable material. It’s down to us
to capitalize on its inherent properties.
08
Viewpoints
@ettf1
Time for timber to strike
Growing our Low Carbon
Economy manifesto
All the political and environmental indicators are pointing in timber’s
favour, but the industry must communicate and deliver the data to
capitalise, says David Hopkins, Executive Director of the UK’s Wood
for Good campaign, and new Chairman of the Wood Toolbox
promotional programme.
“The Wood for Growth Action days in
Brussels this autumn, taking timber’s
commercial, technical and environmental
message to decision makers, could not have
been better timed.
Our industry’s message on low carbon
solutions was well received. It also linked
perfectly with the emissions reduction and
energy efficiency targets set last month in the
EU’s climate package. The outcome should be
huge opportunity for timber market growth.
The EU agreement includes 40% emissions
reductions for member states, and up
to 30% energy efficiency improvements.
Manufacturing, construction and energy
production will be key focuses.
Timber now has the chance to really prove
its worth. The life cycle assessment (LCA) data
published earlier this year by the UK Wood for
Good campaign comprehensively proves that
timber products use far less energy during
manufacture than competing materials. It also
demonstrates they have a negative carbon
footprint, absorbing and storing more carbon
dioxide than emitted during processing.
At building level, timber frame requires less
energy to manufacture and wood’s natural
insulation properties make it ideal for energy
efficient construction. Consequently it’s becoming
recognised as the practical route for achieving
the most binding low-carbon standards;
cutting emissions now and future proofing
housing against energy price rises.
Ultimately the political rhetoric on energy and
emissions targets is unlikely to translate
into action for a year or more. However,
collectively across Europe, the timber
sector needs to ensure we maximise our
opportunities. We must focus on data
production and full building level LCA
studies to develop the evidence base we
need. We also need effective, collective
communication programmes to ensure
policy makers are aware that solutions
exist before they start down a particular
policy making path.
The UK industry recently launched
its Growing Our Low Carbon Economy
prospectus, highlighting areas where the
timber supply chain can bring benefits
to economy, society and environment.
It has already been presented to UK
politicians and it is backed by a series of
online animations from Wood for Good
and Carbon Visuals (www.woodforgood.com)
explaining timber’s carbon storage potential.
Like these, the new document is designed for
everyone in the industry to use.
In association with the EU-wide Wood
for Growth lobbying programme, European
timber federations and other bodies have
also developed the Wood Toolbox. This
forms the foundations for a strong, collective
pan-EU communications programme; a
package of educational and marketing
material, including timber construction case
studies and common messaging, to inform
our key audiences and policy makers and
David
Hopkins
www.ettf.info
The Timber
Industry
Growing our
Low-Carbon
Economy
Image © Wood Awards
A still from Wood for
Good’s Build with
Carbon animations
take the case for timber further and wider.
As leaders gather in Paris in 2015 for
the global climate talks, we need to work
together to ensure that timber is seen as
the first choice solution to environmental
problems. As part of this process, the next
European Wood Toolbox meeting takes place
in central London on January 27, hosted by
the Timber Trade Federation and Wood for
Good. It will be open to all European timber
promotional organisations and focus on
engaging users with the Wood Toolbox, and
developing an even more powerful common
external narrative for our sector.”
Tackling illegality, supporting the market
The EU Timber Regulation (EUTR) provides the opportunity for the
legitimate timber industry to report companies sourcing or selling
illegal wood in the EU and, at the same time, safeguard the commercial
viability of the market, writes Davyth Stewart, Interpol Natural Resources
Environmental Crime Unit Coordinator.
“We must not underestimate the
consequences illegal logging has on the
timber industry and the legal timber trade.
Illegal supplies can be sold at a lower price
than timber sourced legally, due to the
evasion of costs along the supply chain,
such as taxes, licences
and permits, plus the
exploitation of cheap labour
and illegal traders' operation
without appropriate safety
equipment. This results in
global price suppression of
7-16%, which means that
law-abiding members of the
timber industry are being
denied US$30 billion a year
in lost income. Tackling
Davyth Stewart
illegal logging, therefore,
Winter 2014/15
will enable the legitimate trade to obtain
appropriate market value for their timber
and this, in turn, will make strategies,
such as improving the efficiency of wood
processing, recycling and re-use, more
economically viable.
As we know, operators within the European
Union are bound by the EUTR to implement
Due Diligence Systems (DDS) to ensure
timber in their supply chain is legally sourced.
Despite these rules, it is still possible for
illegal wood to infiltrate the EU market by
means of corruption, fraud and falsification of
paperwork along the supply chain.
Timber importers and operators, together
with non-governmental organizations (NGOs),
can play a crucial role in tackling this further
by providing information about potentially
illegal shipments, operators and suppliers.
A legitimate timber
trade is a more
profitable timber trade
They often have access to information that
the Competent Authority (CA) or monitoring
entity does not, acquired through due
diligence procedures, or investigation into
competitor supply chains.
Within the parameters of the EUTR, a
unique information sharing opportunity is
also provided called ‘Substantiated Concerns’,
continued...
09
Viewpoints
@ettf1
www.ettf.info
Tackling illegality... continued
which could prove to be key in disrupting
illegal timber flows. This allows those with
credible, reliable information regarding illegal
logging and timber to bring it to their national
CA. This information may then be used by law
enforcement authorities to address the flow
of illegal timber in the EU supply chain.
The Substantiated Concerns stipulation
is a valuable tool to law enforcement to
isolate and dismantle the illegal logging
trade. Furthermore, it provides the legal
trade with the means to aid law enforcement
efforts and hold companies accountable
for engaging in illegal behaviour or noncompliance with the EUTR – companies which
are undercutting them on the market.
To be useful to law enforcement, the
evidence supporting the Substantiated
Claims must be trustworthy and reliable.
When information is unreliable, the risk is that
law enforcement will lose confidence in the
entities providing it. Therefore, it is important
EUTR provides
tools for the
trade to work
with initiatives
like Interpol’s
Project Leaf
against illegal
suppliers
that the industry works together with law
enforcement agencies and the European
Commission to implement proper processes,
and also that clear guidelines are made
available to timber companies to explain the
kind of information needed, and how best to
ensure its reliability and legitimacy.
To help confront the illegal timber trade,
timber companies need to make greater use of
the Substantiated Concerns option.
Of course, an obligation falls on the industry
itself to cooperate with law enforcement
agencies, by providing reliable and
substantiated information about any illegal
activities of their competitors within the
industry. But it is also long term in the
commercial interests of the legitimate trade
and the health of the overall timber market.”
Viable, legal and sustainable forestry and
timber sectors protect the forest itself from
conversion to alternative land use
Forest foundations for the future
The timber and forestry sectors have made progress on legality and sustainability of
wood supply. Now NGO WWF wants to work with them to build on that achievement,
says Corporate Stewardship Manager Julia Young.
“Thirty two companies have so far joined
a new WWF programme simply called the
forest campaign. This is designed to leverage
support for responsible forest trade - making
legality stick, and sustainability the norm.
Those on board are working to three
commitments; to source sustainably by 2020; to
ensure the EU Timber Regulation (EUTR) really
does exclude illegal timber from the European
market; and to work out what mechanisms or
incentives could enable all businesses to make
the transition to sustainable timber sourcing.
If we could hand on heart say that no
illegal timber was making its way on to the
European market, and that the vast majority
of timber and timber products reaching
us comes from sustainable sources, it
might be easier to agree our campaign
should be focused on agricultural drivers
of deforestation. But illegal timber still
depresses global prices and, another issue
is that from sustainably managed tropical
forests, we still use a limited range of species,
so their capacity to provide more material
and economic viability remain largely
untapped. Consequently forests often cannot
hold their own against competing land uses,
Winter 2014/15
regardless of their potential to deliver more
timber and other major contributions in
terms of ecosystem services and support for
biodiversity. But we need forests. We need
their multiple services and, without their
effective, sustainable use, how will we meet
demand for wood for timber, paper and fuel
products, which we think will treble by 2050?
Due recognition goes to those companies
and industry bodies which have been working
to tackle this issue, and prioritising sourcing
legally and sustainably. This has supported
the spread of forest legality and sustainability
certification, and raised awareness across
sectors and with customers. Many are also
going to great lengths to demonstrate they
meet the EUTR. And the sustained interest in
the success of the Forest Law Enforcement
Governance and Trade Voluntary Partnership
Agreement programme is well justified
and commendable. This is changing forest
governance in many places.
But despite this progress, illegal and
unsustainably sourced timber still gets to
market. So, we still have a pressing need
to strengthen existing mechanisms and
find new ones which can further promote
Julia Young
uptake of legal and sustainable sourcing and
application of sustainable timber. Will this
be via accords between government and
business to deliver and report on compliance
with policies to secure sustainable goods?
Will this positive reinforcement approach, in
lieu of regulation for sustainability, be enough
to drive change? We don’t have all the
answers at WWF, but we're looking for them.
Maybe you can think of a few?
As we share this planet, and the availability
of your forest resources may depend on the
maintenance of someone else’s, we need
to think ahead. How are we going to make
sure they can meet the needs of today,
without compromising future needs? So we
want more businesses across Europe to get
involved in our forest campaign – and set
a new direction for the market so that we
are able to more positively forecast what
will happen to the security and viability
of global forest resources. By harnessing
the economic and political will for change,
millions of hectares of natural forest can
be kept standing, increasing protection for
biodiversity and safeguarding livelihoods and
sustainable timber supply."
10
Feature
@ettf1
www.ettf.info
EUTR – rising to challenges, realising opportunities
Nearly two years since the EUTR’s introduction, and at the outset of its 2015 Statutory Review by the EC, leading
European timber businesses see major positives emerging from it. But they also identify major scope for more
effective implementation and broader stakeholder collaboration. Mike Jeffree reports.
Vandecasteele’s 16ha site
Vandecasteele Houtimport is a leading
player in the European timber trade. It’s also
a prominent supporter of the EU Timber
Regulation, although not an uncritical one.
The Belgian-based international importer and
trader backs the anti-illegal timber measure for
the key reasons it was introduced; because the
illegal trade contributes to deforestation and
the resulting loss of habitat and forest carbon
storage potential; and because it impacts
livelihoods of local communities, depriving them
of an environmental and commercial resource,
while also hitting tax revenues of often very
poor supplier countries.
But Vandcasteele’s support is also down
to other aspects of the EUTR, which it feels
should be far more widely appreciated.
“It is important, not just for protecting
the forest, but protecting our legitimate
EU timber trade too,” said Export Manager
Geneviève Standaert. “The forest and the
timber from it are our business. We don’t
want to see its future threatened by illegal
logging, or the illegal trade undercutting our
markets. We also don’t want illegal timber in
our supply chains, for moral reasons and the
reputational damage it does to businesses
and timber. The EUTR defends our
The company’s 120,000m3 of stock and 180 species makes EUTR due diligence a major process
reputation. It helps level the playing field with
the illegal trade and, hopefully, will eventually
help eradicate illegal wood completely.”
Vandecasteele says working together to
meet the requirements of the EUTR has
also strengthened its connections with its
suppliers worldwide. But it’s not all positives.
The Regulation has also proved demanding
and occasionally complex work, sometimes it
believes, unnecessarily complex.
There have also been unrealistic
expectations of the timeframe needed by
the EU trade and suppliers to
adapt, and failure to fully exploit
opportunities for constructive
stakeholder collaboration, notably
between the trade and NGOs.
Vandecasteele’s own
experience illustrates the
demands of the EUTR for the
industry, but also, it maintains, the
industry's commitment to getting
Ready for despatch
from a Rougier
it right.
West African mill
The company is a big business.
Its Aalbeke site covers 16ha and
it carries 120,000m3 of stock,
Paul–Emmanuel Huet, Social and
comprising 180 species, from
Environmental Manager Rougier, France
European, American, Brazilian,
Asian and African hardwoods, to
“We welcomed the EUTR as a measure to
softwoods and clears.
effectively fight against unfair illegal competition
Offering this range has been
and combat imports of illegal timber in Europe.
central to Vandecasteele’s
We had our own internal due diligence system
success. But another key factor,
prior to the EUTR, but had to make some updates
it maintains, has been the
in terms of procedure to show we had all the
environmental performance
necessary controls in place. Consequently the
underpinning it, a long-term
impact on our supplier base was insignificant. In
business focus.
terms of improving EUTR implementation we’d like
“We secured FSC certification in
to see greater significance given to private third
1999 and today 70% of our timber
party certification in due diligence, and Europe to
is either FSC, PEFC, or third party
take an official position on the set of documents
legally verified,” said Ms Standaert.
from each producer country which has to be
Consequently, she said,
considered by importers for due diligence.”
a large part of adapting to
Winter 2014/15
the EUTR comprised fine-tuning existing
legality assurance systems, although, given
Vandecasteele’s number of species and
sources, that in itself took time.
“And we’ve also had to introduce some
new practices to meet EUTR due diligence
system (DDS) demands," said Ms Standaert.
"We, in fact, adopted the DDS established
by the Belgian Timber Importers’ Federation,
itself based on the European Timber Trade
Federation (ETTF) EUTR-aligned system."
Another laborious, but key part of the
process, which Vandecasteele started in
2012, was translating the DDS documents for
suppliers into numerous languages.
“We also undertook extensive staff
training, appointed a dedicated due diligence
manager and developed specialist software,
centralising all EUTR data,” said Ms Standaert.
Two years on, EUTR procedures are integral
to Vandecasteele's daily business, but again its
scale still makes that a major task.
“And it’s a big undertaking for smaller
companies too,” said Ms Standaert. “They
may not have our volumes, but have fewer
resources to cope. In fact some have
switched from direct import to buying from
larger importers’ as a result. That benefits
companies like us, but ultimately reduces
market diversity, which is not so good for
consumers, suppliers and potentially the
forest, given it’s more sustainable to use a
wider range of species and sources.”
The other key EUTR task was ensuring
suppliers were geared up to DDS processes.
“Those who demanded 100% instant
compliance underestimated the challenge
for suppliers,” said Ms Standaert. “Rome
wasn’t built in a day and they needed time
and support. Many are in poor countries and
aren’t even computerized.”
continued...
11
Feature
@ettf1
www.ettf.info
EUTR – rising to challenges... continued
Danzer Congo
subsidiary IFO
manages 1.16m ha
of FSC certified forest
Tom Van Loon, Group
Environmental Manager
Danzer, Germany
“We already had ISO 14001 certified
procurement to verify legality and
environmental impact from Africa,
but since EUTR we expanded these
procurement procedures to all
sources, and added a new level of
systematically auditing non-certified,
high risk area suppliers. The EUTR
is creating a level playing field, but
we need more focus on third party
verification and certification systems,
and less on documentation, which may
not be reliable in high risk countries.”
Chris Sutton, Managing
Director James Latham, UK
“EUTR helped formalize what our
industry should already have been
doing. We had to tighten some
procedures, but already followed
the UK Timber Trade Federation
Responsible Purchasing Policy,
and had a computer system that
could deal with necessary supplier
information. We had to play hardball
with a few suppliers on paperwork,
but worked with them, visiting them
worldwide, and as a result only lost
one or two. EUTR has been a benefit.
We just hope all EU countries now
enforce it as effectively as the most
rigorous do already.”
Winter 2014/15
Forest Law Enforcement Governance and
Where possible, Vandecasteele put
Trade Voluntary Partnership Agreement
suppliers that struggled on hold, trading
(FLEGT VPA) initiative. Signing a VPA (and six
again once they’d taken necessary actions.
such bilateral agreements are now in place)
“This is a collaborative effort and dropping
entails supplier countries implementing
suppliers is counter productive to tackling
comprehensive timber legality assurance
illegality and preserving the forest,” said
systems. Once approved, this entitles them to
Ms Standaert. “If we’re no longer trading
issue FLEGT export licenses, giving timber EU
partners, we lose any influence. Suppliers
market access without further due diligence.
may sell to less demanding markets, or even
“We need those first VPA signatories at
convert forest to other commercial uses, and
the FLEGT-licensing stage and to increase
there are big powerful companies ready to
awareness of the initiative in the industry and
plant soy and palm oil instead.
marketplace,” said Ms Standaert. “It would be
Collaborating with suppliers on due
a big benefit to both buyers and suppliers.”
diligence, she added, has also improved
Vandecasteele wants the value of the
their working relationships and business
management.
The company has also undertaken
customer EUTR instruction.
“There was a lack of
understanding that we, as the
‘operator’ company first placing
timber on the EU market,
undertook due diligence supplier
risk assessment, while they as
Wijma supplied this
traders purely had to record who
Cameroon FSC
Ekki bridge in Belgium
they bought from and sold to,” said
Ms Standaert. “Some customers
demanded supplier data they didn’t
Ad Wesselink, Managing Director
need. But thanks to information
Wijma Kampen, Netherlands
from operators, the EU itself and
EUTR Competent Authorities (CA),
“A central listing of current documents proving
that situation has improved.”
legality would strengthen EUTR. But critically we’d
Vandecasteele has now had its
like stronger programmes to support supplier
first EUTR audit by the Belgian CA.
country take up of Forest Law Enforcement
While it had to make some
Governance and Trade Voluntary Partnership
changes, overall it went well
Agreements (FLEGT VPAs), which ultimately lead
“But there’s no room for
to them issuing FLEGT licences providing legality
complacency," said Ms Standaert.
assurance and allowing timber access to the EU
"Staying in line with EUTR means
without further EUTR due diligence. Overall EUTR
constant attention to detail and
and FLEGT are critical to restoring the image and
working to improve processes.”
market share of tropical timber, a great resource.”
Vandecasteele also sees room to
improve wider administration of the
EUTR for the timber trade to be more widely
Regulation, supporting the ETTF proposal for
communicated too, and vitally the Regulation
a central database on EUTR-relevant supplier
and wider war on illegal wood to become a
country legislation (see p1).
still more co-operative, joint effort between
“That could also highlight potential issies
EU trade, its global supplier network, the
with particular sources, with input from trade,
authorities and critically, the eNGOs.
EU, supplier country authorities, and NGOs.”
“There’s still a feeling some NGOs see the
Vandecasteele also urges greater
EUTR purely as an enforcement measure to be
pan-EU standardisation of due diligence
forced on a reluctant trade, and highlight where
documentation to assist suppliers and, to the
we fall short,” said Ms Standaert. “In reality, the
same end, greater coordination on proof of
vast majority of us are passionately committed
legality with other anti-illegal timber market
to combating illegal timber, and we can do that
regulations, such as the US Lacey Act.
most effectively by working together. The EUTR
There’s also a need for the European
and FLEGT represent huge opportunities for
Commission to accelerate appointment of
that cooperation. We all have the same goals;
EUTR Monitoring Organisations (MOs), the
to ensure a legitimate, healthy timber trade.
bodies authorised to create and manage DDSs
Ultimately that’s in the interests of buyers,
for operators. There are now just only four.
suppliers, consumers, and the environment,
“MOs would help smaller operators
as a legal timber market provides the critical
especially,” said Ms Standaert.
commercial incentive for maintaining and
Vandecasteele also wants greater trade
growing forests worldwide.”
and government impetus behind the EU’s
12