News

30 January 2008: WWF and Flannery promote climate change forestry experiment in PNG
WWF and Australian climate change author Tim Flannery have made a joint submission to the Australian Garnaut Climate Change Review, proposing that PNG villagers in remote areas sell carbon or biodiversity credits via Internet auction site eBay to conserve their forest areas. They will apparently do this using a combination of mobile phone technology, laptops, Internet auction sites and satellite mapping.

The concept is that the rural poor would benefit more from trading carbon in trees than from harvesting them. PNG's rural poor need more income. Less than 9 per cent of rural households have access to piped water and less than 15 per cent of the rural population attends school beyond the age of 15. The scheme, however, is likely to decrease not increase income.

For a start, the idea requires a globally managed system to trade carbon credits and none is in prospect. A related idea was proposed at the UN Framework Convention on Climate Change last year and was even given some World Bank support. It depends on the establishment of a global system to trade carbon credits under the Convention. At Bali in December, parties to the Convention did not endorse the idea of globally managed carbon trading and remain unlikely to do so.

With less than 0.5 per cent of people able to access the Internet, communications in PNG could not support such a system anyway. Only 1.2 per cent of the population of five million have fixed-line telephones. A simpler and more effective strategy would be to improve commercial forestry and to increase harvesting: that generates the environmental benefit of increasing the carbon sink in PNG forests and increases the returns from commercial forestry, thereby increasing rural incomes. But WWF (along with Greenpeace and the Australian Conservation Foundation) have consistently worked against commercial forestry in PNG.

30 January 2008: Greenpeace assessment of legality verification systems - who benefits?
In a new "assessment" of systems to verify the legality of forest logging, Greenpeace has advanced a set of criteria which requires a "time-bound commitment" to adopting FSC-certified forestry management.

The report criticises many other verification systems for lack of transparency. Greenpeace fails to mention in the report that it has a proprietary interest in FSC as a founding member and that it is a member of one of FSC's governing bodies.

Greenpeace has an established record of targeting businesses that do not adopt its preferred policies on forestry and sourcing of timber. It usually also promotes the FSC system set up by WWF which companies must pay to join. FSC is facing increasing competition from legality verification schemes, which offer legality verification without onerous procedures and costs that can be prohibitive for developing country operators.

8 January 2008: Tropical forests - what crisis?
A new study from the University of Leeds challenges claims of a global crisis in tropical forestry. The study, published in the US-based National Academy of Sciences, has found that evidence of a decline in tropical forest area is unclear.

"The picture is far more complicated than previously thought", said Dr Alan Grainger, the study's author. "If there is no long-term net decline in global forestry, it suggests that deforestation is being accompanied by a lot of natural reforestation that we have not spotted", he said.

Dr Grainger is one of the world's leading authorities on deforestation. He has found inconsistencies among United Nations' forest resources assessments. He has concluded that current data cannot be used to monitor tropical forest area with great accuracy.

"Scientists all over the world who have used these data to make predictions of species extinctions and the role of forests in global climate change will find it helpful to revisit their findings in the light of my study", he said.

17 December 2007: UNFF agreement adopted
The UN General Assembly has adopted the UN Forum on Forests Non-Legally Binding Instrument on All Types of Forests (NLBI), eight months after the agreement was reached in April 2007.

The agreement on international forest policy and cooperation calls for greater international cooperation and national action to reduce deforestation, reverse the loss of forest cover, prevent forest degradation, promote sustainable livelihoods and reduce poverty for all forest-dependent peoples.

It "sets a new standard in forest management", according to the General Assembly.

Under-Secretary-General for Economic and Social Affairs, Sha Zukang, stated that the agreement represented "a new era for international forest policy, characterized by reinvigorated dialogue at all levels".

Zukang also said that "further pro-poor, pro-nature and pro-growth actions that link trees and forests to the achievement of the internationally agreed development goals" are needed "to enable forests to contribute to the overall development of society".

16 December 2007: Bali Roundup
A number of key developments related to forestry took place at the United Nations Framework Convention on Climate Change (UNFCCC) Conference in Bali, Indonesia, from 3 to 14 December.

• UNFCCC - role of sustainable forestry as tool to reduce carbon emissions recognised
  Forestry was a hot topic at the UNFCCC meeting. There was a keen awareness among Green NGOs that if they couldn't walk away with commitments to binding emissions cuts from developed nations, they could try to force their anti-forestry agenda under the Convention. The results were mixed. On the one hand, the UNFCCC peak body, the Conference of the Parties, agreed to consider policy approaches and positive incentives for reduced emissions from deforestation in developing countries as part of its mitigation activity, which could have a detrimental impact on the forestry industry. However, it also agreed to recognise the role of sustainable forestry and enhancement of carbon stocks in developing countries when formulating mitigation strategies.
  
  
• World Bank - fails to recognise sustainable forestry
  The World Bank wasted another opportunity to take positive action on forestry, growth and climate change, with the launch of its Forest Carbon Partnership Facility (FCPF) at the UNFCCC Conference. The professed aim of the Facility is to fund deforestation measures in developing countries in a way that may help to create carbon credits which these countries can trade in an international system after 2012. Yet it is unlikely that a system of global trading will be agreed upon. The Fund looks like an offer of money to developing countries to adopt Bank policies on deforestation.
  
  
• Indonesia
  Host nation Indonesia made some major announcements regarding forestry and climate change at the UNFCCC conference. The Indonesian Government announced that it will select four forestry projects for the World Bank's proposed Reduced Emissions from Deforestation and Degradation (REDD) scheme. The Indonesian Government also launched the 'Orangutan Conservation Strategy and Action Plan', which was widely supported by NGOs and governments within the region for attempting to preserve orangutan habitat and reducing climate change emissions. The Indonesian province of Papua also announced that it will review all forestry operations in the province. Finally, Papua signed a number of agreements with carbon investment companies in return for financial assistance.
  
  
• NGOs
  A large number of NGOs were present at the UNFCCC Conference - and a large number had the forest industry in their sights. Greenpeace launched its "Tropical Deforestation Emission Reduction Mechanism", which aims to raise funds to avoid deforestation, but which opposes any commercial forestry activity. One participant asked if Greenpeace was more interested in carbon reductions or avoided deforestation, to which Greenpeace responded that it was only interested in avoided deforestation.

8 December 2007: IFC withdraws from Olam
In another disappointing development in World Bank forest policy, the International Finance Corporation (IFC), the investment arm of the World Bank, divested its 3.4 per cent stake in Olam, a Singapore-based company with holdings in the Democratic Republic of Congo (DRC), in December 2007.

Olam had been under repeated attack from Greenpeace over its involvement in the DRC. These attacks were maintained despite Olam holding just less than 1 per cent of all forestry concessions allocated by the DRC Government (which were subsequently handed back earlier in 2007) and having never cut down a single tree in the DRC. The company issued a statement strenuously denying Greenpeace's charges, stating that the IFC and Olam's policy approaches had diverged, and also stating that it believed that it had been unfairly targeted because of the IFC's stake in the company.

29 November 2007: UK DFID as anti-forestry advocate
The UK's Department for International Development (DFID) has employed the advocacy tactics of Green NGOs with two booklets on illegal logging in Indonesia, Ghana and Cameroon. The DFID publications are 'policy lite', written in a journalistic style with no sourcing of data and information.

Aid agencies are usually more responsible, with reports backed up with sourced statistics, serious analysis and solid policy recommendations.

The reports attempt to equate the timber trade in Indonesia, Ghana and Cameroon with the trade in illicit drugs. They also squarely blame Chinese demand for illegal logging and are critical of the World Trade Organisation (WTO) for not cracking down on the illegal timber imports - despite this being well outside the WTO's ambit.

However, the booklets are heavily in favour of the European Union's mooted voluntary partnership agreements (VPAs) which encourage developing countries to sign away their WTO rights.

This is not new for DFID. In PNG in 2006, it funded a scurrilous report by the Australian Conservation Foundation suggesting that the forest industry was responsible for gun trafficking.

November 10: ITTO funds PNG governance project
The International Tropical Timber Organisation (ITTO) has funded a governance project in PNG to the tune of almost US$500,000. The project aims to enhance forest law enforcement in PNG and support sustainable forest management activities. Forest law enforcement in PNG has been heavily criticised by NGOs operating in the area who are unfamiliar with capacity and resource constraints within PNG that severely limit the ability of forest authorities to enforce forest law. Instead, NGOs simply accuse the forest industry of being corrupt.

2007: Greenpeace unscrupulously attacks certifiers
Greenpeace has attacked Swiss-based auditing organisation SGS by launching a letter-writing campaign against the company over its recent FSC inspection of Spanish industrial plantation company NORFOR. SGS was engaged by NORFOR to conduct Forest Stewardship Council (FSC) certification for its forestry operations. The FSC has since requested a small number of remedial actions for the certification following stakeholder complaints - one of which was made by Greenpeace.

24 October 2007: Prince Charles takes anti-development position
In a speech at a WWF event in London, Prince Charles launched a private-sector initiative aimed at protecting old growth rainforests for their "services to humanity". He said that the value of living forests would need to out-compete other drivers of forest destruction - some of which were the demand for palm oil, beef and soya from rich countries. The Prince of Wales fails to understand that soya and beef are essential foodstuffs and income sources for people in developing countries.

17 October 2007: Greens maintain unscrupulous attacks on PNG, ANZ
Australian and New Zealand Greens campaigning against the proposed Gunns pulp mill in Tasmania are using the PNG forestry industry as a pawn in their campaign. The campaign is attacking Gunns' banker, ANZ. To gain further leverage on the bank, campaigners have unscrupulously dragged another ANZ client, Rimbunan Hijau, into the campaign. All of Rimbunan Hijau's forestry operations in PNG are legal. The attacks are doubly unscrupulous, first relying on unsourced and unsubstantiated claims about levels of illegal logging in PNG, then drawing a link with a company that just happens to operate in that country. A recent International Tropical Timber Organization (ITTO) draft report that has been eagerly flaunted by NGOs such as Greenpeace in their criticism of the industry did not at any point state that illegal logging was of concern in PNG.

11 October 2007: World Bank releases Forest Carbon Partnership Fund details
The World Bank has released details of the Forest Carbon Partnership Facility (FCPF). The FCPF is a market-based mechanism aimed at compensating developing countries for Reduced Emissions from Deforestation and Degradation (REDD). The World Bank has indicated that it will rely heavily on contributions from governments, the private sector and other public sector entities for funding. According to a World Bank presentation, the FCPF aims to have US$1 billion at its disposal for compensation payments by 2014. It has also stated in a concept note that it will work with the private sector in implementing programmes.

10 October 2007: Forestry plays role in reducing poverty in rural PNG
A new report from an Australian consulting firm reveals that private-sector forestry investments play a vital role in reducing poverty in rural areas in Papua New Guinea. The report, 'The Economic Contribution of Rimbunan Hijau's Operations in PNG', has found that forestry contributes significantly to economic and social development in rural areas. The report, which was commissioned by forestry company Rimbunan Hijau (RH), details the private-sector funding of roads, bridges, airstrips and services such as health and education in rural areas. It found that RH's contributions in these areas exceeded government spending by as much as 80 per cent. Written by Australian consulting firm ITS Global, the report indicates that the forestry industry contributed approximately 187 million kina ($US90 million) to the PNG economy in 2006; accounts for 5 per cent of PNG's exports and employs more than 9,000 people. On its own, RH's forestry operations contributed just under 80 million kina (K) to the economy last year. The company paid nearly K70 million last year in levies, royalties and duties. In addition, the company employs more than 4,000 forestry workers. New PNG Forestry Minister Belden Namah said that he was "impressed" by the report, as it revealed the industry's positive contribution to the PNG economy. Read the full report here.

9 October 2007: Greenpeace tactics hold little sway in developing countries
Greenpeace has come under pressure from local groups on both sides of the Pacific Ocean in relation to its anti-forestry activities. In Castelo dos Sonhos in Brazil, Greenpeace campaigners were ambushed by angry local residents and timber workers after they attempted to haul a tree trunk to Rio de Janeiro for an 'exhibition' on climate change. Locals were upset that the NGO did not ask locals for permission before removing the tree. In Indonesia, Greenpeace has ignored the failure of its PNG-based Global Forest Rescue Station and established a 'Forest Defenders Camp' in Riau. In PNG, the Global Forest Rescue Station was designed to promote subsistence eco-forestry. It was an exercise that ultimately failed to bring sustainable development outcomes to the people of the region.

24 September 2007: UN High-Level Event on Climate Change aims high
The UN-convened High-Level Event on Climate Change (HLECC) was held at the UN Headquarters in New York on 24 September. The meeting was aimed at building momentum for the UN Climate Change Conference, to be held on 3-14 December in Bali, at which negotiations are to take place for a post-2012 international climate change agreement. The HLECC marked the first meeting of a newly-formed Coalition of Rainforest Nations. The coalition consists of Brazil, Cameroon, Congo, Costa Rica, Gabon, Indonesia, Malaysia, Papua New Guinea, Colombia, the Democratic Republic of Congo and Peru.

9 September 2007: APEC leaders make declaration on forests and climate
The APEC Australia 2007 Conference was held on 2-9 September, and culminated with the 15th APEC Economic Leaders' Meeting. At the conclusion of the meeting, the APEC Economic Leaders issued the Sydney APEC Leaders' Declaration on Climate Change, Energy Security and Clean Development, which included an Action Agenda on Forests. In addition, Australia and Indonesia have signed the Kalimantan Forests and Climate Partnership agreement to which Australia will commit A$30 million. Australia also announced funding of A$15.7 million for the Asia-Pacific Forestry Skills and Capacity Building Programme.

30 August 2007: Woolworths pressured by NGOs
Australian supermarket chain Woolworths has withdrawn tens of thousands of units of tissue and paper products after ceding to NGO pressure over its links with an Indonesian paper supplier. NGOs have made allegations that a range of products labelled with a "Sustainable Forest Fibre" logo were sourced from unsustainable forestry practices. Woolworths sources these products from Asia Pulp and Paper (APP), an Indonesian company that has long been a target of NGOs such as Greenpeace.

20 August 2007: Australian forestry gains standard
The Australian Forestry Standard (AFS) has been fully recognized as an Australian Standard following a comprehensive three-year review process. The AFS is the standard for forest management under the Australian Forest Certification Scheme (AFCS).

A number of changes were made to the Standard from its 2003 version, which was recognised by Standards Australia as an 'interim standard'. The revised standard will not certify plantation forestry on cleared native forest land. It also provides greater transparency for the certification process and a greater regard for social and indigenous interests in forest management. The AFCS is endorsed by the Programme for the Endorsement of Forest Certification Schemes (PEFC). A related press release issued by AFS Limited is available here.

20 August 2007: NZ Greens attempt to derail developing economies
The forestry industry in Papua New Guinea (PNG) has again come under attack from environmental activists who are using financial institutions as leverage in their anti-forestry campaigns. The New Zealand Greens Party has launched an attack against the ANZ Banking Group in a coordinated campaign with the New Zealand Financial Sector Workers' Union (FINSEC). The groups have urged a consumer boycott against the bank. The banking group has previously been the target of campaigns from NGOs in New Zealand regarding claims that the bank financed military operations in Iraq. The action is part of a campaign by NGOs around the world to pressure financial institutions to force their customers to change their practices.

7 August 2007: NZ illegal logging report suspicious
The New Zealand Government has announced that it will consult industry, importers and retailers on a new proposal to introduce rules on the legality of imported timber products. The New Zealand Ministry of Agriculture and Forestry (MAF) has published a report entitled Implications for the New Zealand Wood Products Sector of Trade Distortions due to Illegal Logging. The report states that trade distortions due to illegal logging cost the New Zealand forest industry NZ$266 million a year in lost revenue, and that illegal timber harvesting depressed wood product prices around the world. The report specifically identifies PNG, the Solomon Islands, Myanmar, Laos, Viet Nam, and Thailand as countries exporting "suspicious wood", citing unsubstantiated claims by NGOs such as Greenpeace.

1 August 2007: Another illegal logging Bill for US Senate
Another illegal logging Bill has been introduced into the US Senate. The 'Bipartisan Combat Illegal Logging Act' follows the introduction of a Bill against illegal logging tabled in US Congress in March of this year. The Bill's text is in many ways identical to the earlier Bill that was introduced in March this year. The Lacey Act has been identified by anti-logging groups as a potential model for legislation. Submission of a Bill to the US Senate is no indication of a likely change in policy by the Administration on any subject. Submitting a Bill with no expectation it will be passed is a common way of drawing attention to an issue.

27 July 2007: Climate change to dominate forest policy
Forests and climate change are becoming more prominent in international policy. At the Australian Government's High Level Meeting on Forests and Climate, which took place in Sydney during the week ending July 27, Australia made three large-scale commitments to climate change, which will have a direct impact on forestry in the region. Read an Australian Government press release here. At the same meeting, the World Bank released details on its new Global Forest Alliance (GFA), a new institutional arrangement that subsumes its current forestry partnerships (the World Bank-WWF Alliance, Profor and FLEG). It will provide for consultation with stakeholders and also raise funds for the Forest Carbon Partnership Facility (FCPF). The facility primarily concentrates on Reduced Emissions from Deforestation and Degradation (REDD), and purchasing carbon credits from developing countries. The World Bank presentation on FCPF is available here. The World Bank presentation on REDD is available here.

30 June 2007: ITTO funds Pilot Project in PNG
The ITTO will jointly fund a Timber Legality and Traceability Verification (TLTV) pilot system with Saban Enterprises Limited, a PNG-based timber company and subsidiary of Rimbunan Hijau (PNG), demonstrating a commitment to legal logging in PNG from both the private sector and the international community.

The voluntary scheme is designed to strengthen forestry law governance and enforcement on global timber markets, will promote the production and trade of timber from legally and sustainably managed forests, and will provide importers with the confidence they seek with respect to the harvesting of timber in accordance with PNG law.

Implementation of a TLTV scheme will provide concrete evidence that those who sign up are not engaged in illegal logging; it will independently demonstrate that Saban Enterprises Limited's Australian timber exports meet all PNG forestry laws, policy requirements and standards.

The PNGFIA announced earlier this year that it would introduce a TLTV scheme in 2007.

30 June 2007: Yale mixes it in the global forestry debate
Two recent interventions suggest that members of the Yale Center for Environmental Policy and Law, an environmental institution that carries significant international influence, are becoming activists in the global forestry debate.

In 2005 and 2006, the Center published a general rating of sustainability of forestry in developing countries. Its standard was that not more than 3 per cent of forest was being logged annually. PNG met that standard.

In October last year, the PNG forest industry cited the Yale rating at an illegal logging conference hosted by the ITTO. It has been cited since. It appears that PNG's leading anti-forestry NGO complained to Yale about this. After that, a member of the Center wrote to media in PNG and Australia stating that the index now should not be used as a measure of sustainability.

Several anti-forestry campaigners and NGOs have made statements indicating that the PNG election should be decided on forestry issues.

Around the same time, research by a member of the Yale Center was used as part of a campaign to pressure financial institutions not to finance timber companies. The paper criticized HSBC and Credit Suisse for facilitating an IPO by Malaysian-based conglomerate Samling on the Hong Kong stock exchange. The researcher had studied the activities of Samling's subsidiary, Barama, in Guyana. BankTrack, a small NGO set up by other NGOs to pressure financial institutions to adhere to the Equator Principles, criticized the banks for supporting the IPO, while at the same time they were adherents to the Equator Principles.

HSBC correctly pointed out that the activity was an IPO and that the Equator Principles only applied to project finance.

30 June 2007: US Congress creates nasty trade and environment linkage
The Democrat-controlled US Congress and the Republican Bush Administration have agreed to place environmental conditions in free trade agreements (FTAs). In future, FTAs will require compliance with the terms of nominated multilateral environmental agreements (MEAs). This will include the CITES, one of the handful of international environmental agreements adopted by the US.

This foreshadows the possibility that if a partner in a bilateral FTA with the US fails to abide by obligations under CITES, the dispute provisions of the FTA may be invoked, invalidating other rights secured under the agreement. At present, there are no penalties for failing to apply obligations under CITES.

This requirement will only become law when Congress re-enacts law which US Administrations have traditionally used to secure Congress's approval of trade agreements. The old law was time-bound and lapsed at the end of July. Re-enactment is unlikely in the remainder of the second Bush term.

11 June 2007: G8 backs World Bank forest carbon plan
The G8 has supported a World Bank proposal for a US$250 million pilot facility to provide finance to developing countries which manage forestry to reduce emissions of carbon dioxide. Known as the Forest Climate Partnership Facility (FCPF), it has been put together under the World Bank's new Global Forest Alliance (GFA).

Details of how the scheme will work are unclear, but it appears to encourage reforestation, reduction of deforestation and restrictions on the conversion of forest land to other uses. Initial presentations on the FCPF indicated that subsidies will be used to prevent conversion of land for both agricultural and biodiesel purposes. There are also indications that the Facility aims to promote the creation of carbon credits which can be traded.

A related concept fostered by the Bank is a scheme to reduce emissions from deforestation or forest degradation (REDD). This has been endorsed in principle by the Rainbow Coalition of small countries with significant forest industries.

The notion of accepting payments for not harvesting timber may seem like an attractive prospect for developing countries. Already, a number of governments have indicated preliminary support, including the Democratic Republic of Congo and a number of regional governments in Indonesia.

11 June 2007: Malaysia and Indonesia defend palm oil
The Malaysian and Indonesian governments have launched a campaign to defend their countries' palm oil industries internationally. The palm oil industry has come under increasing attack from NGOs around the world.

Several environmental NGOs have claimed that a combination of palm oil plantations for biofuels, as well as illegal logging, is causing damage to Indonesia's rainforests. WWF and Friends of the Earth in the UK have been running a campaign against the oil palm industry, targeting supermarket chains such as TESCO, and food manufacturing companies, claiming that palm oil plantations endanger orangutan habitats. Greenpeace has also heavily criticized palm oil as a source for biofuels, claiming that its green credentials are false.

Malaysia and Indonesia are the world's two largest producers of palm oil. The Malaysian and Indonesian governments have also stated that they will set up a joint economic committee that will examine illegal logging.

7 June 2007: Developing countries block anti-forestry moves in CITES
Developing countries foiled an effort by NGOs at an international meeting in the Netherlands at the beginning of June to convert the international convention to control trade in endangered species into a tool to control trade in timber.

The meeting of CITES had been the subject of intense lobbying over the previous few months. NGOs such as Greenpeace and Friends of the Earth had been attempting to have a number of timber species listed on Appendix II of the convention. In recent years there has been agreement within CITES to restrict trade in some species of mahogany.

At this meeting, NGOs had targeted merbau in particular, releasing a report claiming that merbau exports from PNG and Indonesia were illegal and endangering the species. Another report released by Greenpeace focused specifically on Dutch importers in an attempt to gain leverage at the CITES meeting. However, no countries buckled to NGO pressure and the timber was not nominated for review.

NGOs also targeted Spanish cedar and rosewood. The EU proposed that the timbers be placed on Appendix II which specifies species which are endangered. But these proposals were withdrawn once it became clear that they would be voted down.

The targeting of commercially viable species within CITES is another chapter in the NGO global campaign to restrict commercial forestry, following campaigns against illegal logging. Rather than basing campaigns on facts, there has been a specific targeting of species that form a valuable part of the forest trade. This international trade in forest and wood products is a vital contributor to economic growth and poverty reduction in developing countries.

Full briefing documents from the CITES meeting can be viewed here.

24 May 2007: Chinese action on illegal logging
The US and China have announced a consensus on a number of environmental and energy issues at the Strategic Economic Dialogue (SED) on May 22 and 23. The SED aims to incorporate environmental objectives into a broader economic framework. Three policy areas in particular were addressed by the Dialogue: clean coal technology, clean energy, and agreements on illegal logging, oceans and fisheries. Both nations have agreed to engage in a dialogue to produce a bilateral agreement on illegal logging by the end of 2007.

China's Foreign Ministry spokesperson, Jiang Yu, has stated that China is taking measures to address illegal timber imports from countries such as Myanmar.

7 May 2007: NGOs keep up unethical campaigns against developing countries
Forestry in developing countries has come under recent attack, once again, from anti-development NGOs on opposite sides of the globe. The Australian Conservation Foundation (ACF) has launched a second attack on the ANZ banking group last month, pressuring it to withhold banking services from one of its clients, Rimbunan Hijau (RH), a timber producer in Papua New Guinea.

The attacks on the timber industry in PNG, the bank and the timber importer have come just weeks after the PNG forestry industry announced a commitment to a legality verification scheme through Swiss-based firm SGS.

At the same time, Greenpeace has launched an attack on Dutch timber importers such as Hoek Lopik, which purchase timber from RH. The NGO has once again called for bans on imports of timber from developing nations, putting the future of developing economies at risk.

It tried this tactic in Australia with the same material, and failed. In addition to recycling previously discredited and unsubstantiated claims, the report also smears EU initiatives such as the Forest Law Enforcement Governance and Trade (FLEGT) program to reduce illegal logging because it does not entail trade bans which would not be permissible under WTO rules.

The report was also released at the same time as a Greenpeace report that unfairly criticizes timber operations in the Democratic Republic of Congo, and a WWF report that also criticizes the EU's timber import policies.

All this activity is taking place at a time when the EU is assessing whether it needs to take "additional measures" on illegal logging. Caught up in this long and protracted campaign are the developing countries themselves, who depend on forest industries for jobs, raising living standards and economic growth.

28 April 2007: UN forum on forests adopts Non-Legal Binding Instrument
The Seventh Session of the United Nations Forum on Forests announced that it has adopted a Non-Legal Binding Instrument on All Types of Forests (NLBI). The session, which concluded in New York on April 28, had the specific aim of having the instrument adopted. The NLBI is a substitute for a legally-binding instrument, which members agreed last year that they would not consider until at least 2015.

The NLBI was welcomed by all member states, scientific bodies, the UN Food and Agriculture Organisation and the World Bank, but was heavily criticised by NGOs at the Session. NGOs argued that the Instrument does not tackle the "underlying causes of deforestation É including the need for the reduction of consumption."

The session documents are available here.

26 April 2007: Indonesian provinces to limit logging
Governors of three of Indonesia's provinces have committed to measures which limit carbon emissions and logging in the provinces' tropical rainforests. The agreement between the provincial governors of Aceh, Papua and West Papua was reached at a World Bank sponsored meeting on climate change in Nusa Dua in Bali on 26 April. Minutes from the meeting are yet to be released publicly.

The main aims of the agreement are to mitigate the impact of climate change and address deforestation. The governors expressed a determination to implement policies which are environmentally friendly, and pursue sustainable development and reduction of greenhouse gas emissions.

The Governor of Aceh committed to imposing a moratorium on all logging, pending the outcome of a review of the forestry industry. The Governor of Papua committed to revoking licenses of logging companies whose operations are not deemed to contribute to sustainable forest management. Both Aceh and Papua committed to relocating approximately five million hectares of conversion forest for carbon trading.

The roundtable was attended by representatives of Indonesia's central government, civil society, the international community and the private sector.

A news report covering the event can be found here.

15 April 2007: China develops guidelines for sustainable plantations
The ITTO has reported that China has developed sustainable forestry guidelines for plantation management.

The guidelines are yet to be implemented, but according to an ITTO report, the State Forest Administration (SFA) is currently in the process of selecting timber companies to implement the guidelines.

China is coming under increasing pressure from NGOs, the EU and the US Government to implement sustainable practices in its plantations and to confirm the legality of its timber sources.

Regulations for the Implementation of Forestry Law of the People's Republic of China are available here.

11 April 2007: Congo cancels logging rights
The government of the Democratic Republic of Congo (DRC) has cancelled 21 logging contracts it deemed to have been granted illegally. The contracts covered approximately 3 million hectares of forest.

The holders of the cancelled rights, mostly small companies, were given two weeks to contest the decisions. Large logging firms, such as Safbois, Sodefor, Siforco and Soforma, account for approximately 70 per cent of the country's production capacity, but were unaffected by the decisions.

The DRC government has come under considerable pressure from the EU and from the World Bank regarding its forestry policies. The International Conference on Sustainable Forest Management in the Democratic Republic of Congo was held in February; Belgium pledged an initial annual contribution of 1 million Euro for the Congolese Institute of Nature Conservation.

Information on the International Conference on Sustainable Forest Management in the Democratic Republic of Congo is available here.

2 April 2007: EU suspends imports of ramin from Malaysia
The EU has suspended imports of the timber ramin from all Malaysian territories. The EU Scientific Review Group on Trade in Flora and Fauna made the decision that ramin imports be suspended in mid-April.

The basis for this decision was that trade in the species "is likely to have a harmful effect on the conservation status of the species or the extent of the territory occupied by the species".

The report also stated that requested information regarding quota establishment for the species had not been received, nor has a report outlining their non-detriment findings on the previous quota. The EU will urge Malaysia to provide this information.

There has been considerable pressure on the trade in ramin for a number of years. It is currently on the CITES (Convention on the International Trade in Endangered Species) in Appendix II, listed as a vulnerable species, meaning trade is permitted.

The assessment of the EU Scientific Review Group can be read here.

28 March 2007: Australia commits $200 million to forestry in developing world
The Australian Government has announced a practical approach to address climate change in the form of the Global Initiative on Forests and Climate. The initiative commits A$200 million to promote sustainable forestry to preserve forestry sinks in developing countries. Australia has called for support from other countries for the initiative, putting it in a position to lead global policy on deforestation without being subject to anti-development agendas pushed by environmental NGOs. Read the statement from Australian Environment Minister Malcolm Turnbull here.

27 March 2007: PNG moves towards legality verification
Papua New Guinean forestry has taken a step towards legality verification. The PNG Forest Industry Association (PNGFIA) announced last week that it is now working with Swiss firm SGS (Societe Generale du Surveillance), one of the world's most credible inspection and verification auditors.

Under a new pilot programme, the PNGFIA and SGS will assist PNGFIA members in joining the Timber Legality and Traceability Verification (TLTV) programme offered by SGS. The move has been welcomed by a number of stakeholders, including the Australian Government. Read a press release from the Australian Minister for Fisheries, Forestry and Conservation here.

22 March 2007: Stora Enso, Botnia under attack from Greenpeace
Finnish pulp and paper manufacturer Stora Enso has come under attack from environmental NGO Greenpeace. Greenpeace helped organize a protest at both the Stora Enso and Botnia pulp and paper plants in northern Finland, claiming that the company had accepted pulp from native forests. Stora Enso accepts pulp from Metsahallitus, a state-owned timber company. Stora Enso strenuously denied the claim, citing its wood procurement principles and its national stakeholder processes that prevent the purchase of products from native forests. Read the Stora Enso press release here.

22 March 2007: Beware the Equator Principles
International banks HSBC and Credit Suisse have come under pressure from NGOs such as Global Witness, who claim that the institutions have breached their own sustainability guidelines. The banks played a managerial role in the IPO for Samling, a Malaysian-based timber company. But, as signatories to the Equator Principles, they have made a voluntary agreement not to provide financial assistance to commercial logging operations in primary tropical moist forest, as defined by International Finance Corporation guidelines. Read the HSBC Forest Land and Forest Products Sector sustainability guidelines here.

15 March 2007: Global demand for certified timber weak
Global consumer demand for timber products certified under the Forest Stewardship Council (FSC) scheme makes up a small proportion of the timber market, contrary to claims by Green groups WWF and Greenpeace. A report from the UK's Timber Trade Federation recently stated that although 56 per cent of wood and wood products imported into the UK in 2005 were certified, demand for certified timber made up just 10 per cent of sales. FSC products made up 50 per cent of UK's certified imports. These findings stand in stark contrast to the picture painted by WWF and Greenpeace. More information is available here.

13 March 2007: Asia-Pacific forests improving
The UN Food and Agriculture Organisation's (FAO) State of the World's Forests report reveals that the world's forests are not on the verge of catastrophe. The report, released on March 13, highlights the reforestation that is currently taking place around the world. A total of 57 countries reported a net increase in total forest area in the period from 2000 to 2005. The full report can be read here.

5 March 2007: Greenpeace encourages supporters not to think
The European Union (EU) has concluded a public consultation on the introduction of "additional measures" to combat illegal logging. The consultation included an extensive questionnaire posted on the EU website. In a related press release, Greenpeace International discouraged visitors to the Website from filling in the questionnaire, warning them of 'beaurocratic [sic] technobabble'. Instead, they were urged to send a submission "custom made" by Greenpeace, which called for an outright ban on EU imports of illegal timber. Greenpeace failed to notify the readers that such a ban is likely to conflict with the EU's obligations to the World Trade Organisation (WTO).

1 March 2007: Germans reject WWF-FSC campaign
Germany's federal government has launched a government procurement scheme and a consumer guide for the purchase of wood and wood products from legal and sustainable sources. The newly-announced procurement policy accepts FSC (Forest Stewardship Council) and the PEFC (Programme for the Endorsement of Forest Certification Schemes) certification as verification of legality and sustainability. The German government also released a consumer guide for sustainable shopping, which also recommends the PEFC label. 'Nachhaltig einkaufen: Der Wegweiser' ('The Sustainable Buying Guide') is available in German here.

15 February 2007: SGS shows PNG timber Is legal
In a speech at a recent illegal logging seminar funded by the UK's Department for International Development (DFID), Papua New Guinea's Trade Minister Paul Tiensten disputed allegations by environmental NGOs that commercial logging in PNG is illegal. Statistics provided by Societe Generale de Surveillance (SGS), an international provider of monitoring services, were used as evidence. The Minister asserted the sovereignty of the PNG government to make policy, and the need for those who want to participate in the process to follow proper procedures. The full version of Paul Tiensten's speech can be found here.

12 February 2007: Heart of Borneo Initiative signed
The governments of Brunei, Indonesia and Malaysia have signed a Declaration on the Heart of Borneo Initiative, pledging to cooperate in ensuring effective management of forest resources and conservation of protected areas on the Island of Borneo. The Heart of Borneo area covers approximately 220,000 square kilometres (one third of the island). The voluntary cooperation is said to respect each country's sovereignty, laws, regulations, policies, and territorial boundaries, and will consist of research and development, education, training and fundraising. A copy of the declaration can be found here.

9 February 2007: A Green Attack on the WTO and the UNCED Consensus
In a speech last month to ECIPE (European Centre for International Political Economy) in Brussels, the Chairman of World Growth, Alan Oxley, said that the WTO was being weakened by ENGO campaigns to create a global convention on forestry. WWF, Greenpeace and the FSC have heavily lobbied governments to breach fair competition standards to include only FSC-certified products in their procurement policies. The lobbying is part of a long-term campaign to have FSC standards used as an import control. This campaign is part of a long-term attack by WWF and Greenpeace on the WTO. The casualty in this campaign will not be the WTO. Rather, it will be developing countries who will lose valuable export income. A briefing on the speech can be found here.

28 January 2007: Germany's government procurement policy to accept FSC and PEFC certification
Germany's federal government has made a commitment to purchase wood and wood products that have come from legal and sustainable sources. The newly-announced procurement policy accepts FSC (Forest Stewardship Council) and the PEFC (Programme for the Endorsement of Forest Certification Schemes) certification as verification of legality and sustainability; 'comparable proofs' will also be accepted (although it is not clear what this means). The procurement policy will be reviewed after four years. A related press release from Germany's Federal Ministry for the Environment, Nature Conservation and Nuclear Safety can be located here.

29 January 2007: Rimbunan Hijau launches a major HIV/AIDS initiative in PNG
Rimbunan Hijau PNG, a major commercial forestry operator in Papua New Guinea, has announced that it will contribute K600,000 (A$278,000) to the national fight against HIV/AIDS. The funds (granted through the RH Foundation) will be delivered over a three-year period. The announcement was made at the opening of a new publishing facility in Lae, PNG. More details are available here.

December 2006: FSC failing to uphold indigenous peoples' rights - WRM
The World Rainforest Movement (WRM) has accused the FSC-accredited forest certifier SGS Qualifor of closing its eyes on human rights abuses in Uganda. FSC certification has been granted to a tree-planting project in the Mount Elgon National Park, which WRM alleges is characterised by violence towards indigenous communities. In its monthly bulletin, WRM claims that because 'tree planting inside the boundary of the national park cannot be separated from the management of the national park', operations of the whole park were to be taken into account by SGS when granting certification.

21 December 2006: 2011 International Year of Forests - UN
United Nations General Assembly has adopted a resolution declaring the year 2011 as the International Year of Forests. The move aims to promote sustainable management, conservation and development of forests worldwide. United Nations Forum on Forests (UNFF) Secretariat has been tasked with serving as the 'focal point' for the implementation of various activities during the year, and has set up a related Website. The associated press release also states that 'governments, regional and international organizations and civil society organizations are expected to create national committees and designate focal points in their respective countries'

19 December 2006: UK Government releases review of forest certification schemes; PEFC and FSC approved
The UK Government has released its review of existing forest certification schemes. The study found that the Forest Stewardship Council system (FSC), the Programme for the Endorsement of Forest Certification schemes (PEFC), Canadian Standards Association scheme (CSA), and North America's Sustainable Forestry Initiative (SFI) all met UK Government's procurement policy requirements in regards to legality and sustainability.

The National Association of Forest Industries and the Australian Forestry Standard Limited hailed the decision. Australian Forest Certification Scheme is a fully-endorsed member of the PEFC.

The Malaysian Timber Certification Council scheme (MTCC) was found adequate in ensuring legality. However, it was found wanting in terms of ensuring sustainability, due to the lack of 'any clear procedures or safeguards relating to the influence of different interest categories' during the standard-setting process.

A full version of the report can be found here.

15 November 2006: Claims of log smuggling in PNG unfounded
www.illegal-logging.info, a website managed by Chatham House and funded by UK's Department for International Development (DFID), has published an article which dispels some of the myths regarding illegal logging in Papua New Guinea. Written by Kwame Asumadu (an independent consultant based in Australia), the article outlines the independent monitoring system of PNG log exports developed and implemented by Société General de Surveillance (SGS). SGS is an international provider of monitoring services and directly oversees five per cent of all world trade. It has been operating in PNG since 1995. The article argues that the monitoring system in place 'provides a verifiable proof that allegations of rampant log smuggling in PNG [often raised by environmental non-governmental organisations] are highly questionable'.

A full version of the article Illegal logging in Papua New Guinea - the other side of the story can be found here.

9 November 2006: FSC-Watch launched
A website aimed at scrutinising the activities of the Forest Stewardship Council was launched on 9th November 2006. FSC-Watch (www.fsc-watch.org) is run by a group of ex-FSC employees 'who are very concerned about the constant and serious erosion of the FSC's reliability and thus credibility'. The website states that unless structural problems within the FSC system are addressed, 'the FSC is doomed to failure'. FSC-Watch acts as an information portal, providing latest news on FSC certification whilst also encouraging reader comments and contributions.

8 November 2006: PEFC publishes requirements for the avoidance of controversial wood
The Council of the Programme for the Endorsement of Forest Certification schemes (PEFC) has published a mandatory guide for the Avoidance of Controversial Sources. All PEFC-certified suppliers of forest-based products are now required to produce a signed self-declaration that none of their supplied raw material originates from a 'controversial source'. In a case where the materials are considered as "high risk" (with list of indicators provided by PEFC), the supplier must provide PEFC with necessary information on origins of the material and the whole supply chain. Certified material from other certification systems (such as FSC) is considered as not requiring further checks.

The new guide forms Appendix 7 of the International PEFC Chain of Custody Standard. It becomes effective as of 1 May 2007, and can be found here.

2 November 2006: Australian government refuses NGO calls for tropical timber ban
In a draft policy paper, the Australian government has produced a list of measures it is planning to undertake to tackle the issue of illegal logging. Despite the pressure from green NGOs such as Greenpeace, the discussion paper rules out banning imports of tropical timber from countries such as Papua New Guinea (PNG) and the Solomon Islands. Instead, it focuses on voluntary industry measures, and supports a government review of forest certification schemes.

In an accompanying media release, the Australian Minister for Fisheries, Forestry and Conservation, Eric Abetz, stated that an attempted ban 'would also prevent legal timber coming into Australia', and that 'significantly, no other country has implemented such a ban'.

The policy paper was welcomed by the Shadow Minister for Primary Industries, Resources, Forestry and Tourism, Martin Ferguson, and the National Association of Forest Industries. Greenpeace and Australian Conservation Foundation, together with Tasmanian Senator Bob Brown have criticised the policy as ineffective, and renewed their calls for the government to ban tropical timber imports.

In a related edition of ABC's radio show PM, the Greenpeace campaign to halt commercial forestry in PNG came under heavy criticism from Alan Oxley, a managing director of a consultancy ITS Global and a former Australian Ambassador to the GATT.

The draft policy paper, Bringing down the axe on illegal logging - a practical approach can be found here.

The media release by Senator Abetz is available here.

26 October 2006: New body to promote Australian timber industry
The Australian Government has given approval to the formation of a new company to promote the timber industry. Forest and Wood Products Australia (FWPA) will provide generic marketing and promotion of the environmental credentials of timber as well as providing research and development services to the industry which are currently undertaken by the Forest and Wood Products Research and Development Corporation (FWPRDC). FWPRDC could not provide marketing services for the industry under its enabling legislation. It is expected that the new company will begin operation on 1 July 2007. The National Association of Forest Industries (NAFI) has welcomed the development.

A related press release by Australian Minister for Fisheries, Forestry and Conservation Eric Abetz can be found here.

10 October 2006: International forum on government procurement policies produces mixed findings
The United Nations Economic Commission for Europe (UNECE), together with Food and Agriculture Organization of the United Nations (FAO), held a policy forum on "Public procurement policies for wood and paper products and their impacts on sustainable forest management and timber markets". Attendees included stakeholders from exporters, traders, industry and NGOs. The forum's primary findings were that while there is strong political momentum towards procurement policies for forest products, only a few countries are currently applying procurement policies in practice. There are many difficulties with implementation, including the complexity of assessing certification schemes.

Documents presented at the forum can be found here. A related press release from UNECE is available here.

20 October 2006: Australian Treasury rejects NGO allegations against ANZ
The Australian Treasury has ruled that ANZ has no case to answer in an NGO complaint which asserted that, by having financial links to Rimbunan Hijau, ANZ is breaching various OECD Guidelines. The complaint was lodged by a consortium of Green NGOs (including the Australian Conservation Foundation, CELCOR and Human Rights Council of Australia), and made references to 'respect of human rights' and 'contribution to economic, social and environmental progress'.

The Australian National Contact Point for the OECD Guidelines for Multinational Enterprises (ANCP) rejected the complaint, stating that ANZ's links with Rimbunan Hijau could not be characterised as investment (as required by the OECD Guidelines). Citing the absence of ANZ membership in 'any RH Board, management committee or other decision making body of RH', ANCP stated that it was difficult to see ANZ having the kind of links with Rimbunan Hijau that would enable it to direct the company's operations. The ruling did not include a discussion of the allegations made by the NGOs against Rimbunan Hijau.

Earlier this year, ACF and CELCOR produced a report which accused the commercial forestry sector in Papua New Guinea (in which Rimbunan Hijau plays a major role) of causing 'spiralling abuse of civil, political, economic, social and cultural rights'. The report recycled material from earlier papers by Greenpeace, and the claims were denied by the PNG Government and the PNG forest industry (see the news item on 7 August 2006, below).

The full version of ANCP's findings can be found here. The story was also covered in The Age.

25 September 2006: EU and Malaysia launch formal VPA talks; NGOs sceptical
Following a meeting in Brussels, the European Union and Malaysia have agreed to embark on formal negotiations towards conclusion of a voluntary partnership agreement (VPA). A part of the EU strategy on forest law enforcement, governance and trade (FLEGT), VPAs require certain imports from the signatory country into the EU to be subject to a legality verification licensing system. The overall aim is to ensure that Malaysia only supplies legal timber to the European market. The relevant EU press release can be found here.

In response, the Environmental Investigation Agency (EIA) and Indonesian NGO Telapak have labelled the proposed VPA as inadequate. They have called for "mandatory regulations" (i.e. a ban), stating that the 'voluntary approach alone will be ineffective' in stemming the flow of illegal timber into EU. EIA also urged the EU to demand that Malaysia stops dealing in illegal Indonesian timber.

16 September 2006: World Bank allegations against PNG lacking evidence
The World Bank has published Strengthening Forest Law Enforcement and Governance - Addressing a Systemic Constraint to Sustainable Development, a report which estimates the effects of illegal logging in developing countries. The report claims that an estimated 70 per cent of Papua New Guinea's total forest production is illegal.

A review of documents which the report lists as references with respect to the claim has failed to find any evidence for the claim. Follow-up communication with the World Bank revealed that no profiling of PNG forestry was undertaken. The report also fails to provide a working definition of illegal logging, despite admitting that 'different stakeholder groups use different definitions to promote their agenda'. A full version of the report can be found here.

16 September 2006: Greenpeace criticised in The Australian
The Australian has published 'A skewed vision from team green', an article by Alan Oxley on commercial forestry in Papua New Guinea. The article exposes to the lack of evidence supporting the claims of human rights abuses in the industry, made in the report recently released by CELCOR and Australian Conservation Foundation (ACF). It also points to the need for forestry companies operating in remote areas to call in police forces to keep order, refuting CELCOR-ACF insinuations that forestry companies are responsible for distribution of arms throughout PNG.

Greenpeace's suspect definition of "illegal logging" is exposed, and its campaign against Rimbunan Hijau Group (the largest forestry company in PNG) is scrutinised, concluding that claims against the company 'are baseless or cannot be properly substantiated'. The article also provides an environmental case for ongoing commercial forestry in PNG, and emphasises the importance of the industry to PNG's development. The full text of the article is available here.

7 September 2006: Drastic measures proposed by Victorian anti-forestry NGOs
Victorian Forest Alliance (coalition of NGOs including The Wilderness Society and Australian Conservation Foundation) has called for the area of protected forests in eastern Victoria to be increased by 970,000 hectares. A report by the Alliance, Choosing a future for Victoria's forests, argues that the local timber industry should deal with a sudden decrease in resources via 'a rapid shift from commodity production using native forests to commodity production based on plantations'. The report fails to address how this unrealistic shift would be achieved. Instead, it proposes a $104 million investment in tourism, and $32.5 million in recurrent funding for National Parks.

The report also suggests widening the definition of "old-growth forests" to include 'negligibly-disturbed younger forests and forest with a mature growth stage, which have the potential to become the old-growth forests of the near future'. This move appears designed to add credibility to calls for increasing conservation areas. A full version of the report can be found here.

August 2006: Greenpeace and WWF respond to ITS Global report
Greenpeace International and WWF South Pacific have posted separate responses to Whatever it takes: Greenpeace's anti-forestry campaign in Papua New Guinea, a report by ITS Global.

Greenpeace has challenged the independence of the report, citing the fact that the report was commissioned and paid for by Rimbunan Hijau. It also disputes the claim that its policies impede development in PNG, and maintains the claims of illegality and human rights abuses in the PNG forest industry. To support these allegations, Greenpeace produces a list of sources used in its previous reports (which were dealt with by ITS Global); no substantial new evidence is provided. The document, titled Rimbunan Hijau can't handle the truth, can be found here.

WWF's response includes the rejection of allegation that it is engaged in a global campaign to replace commercial forestry with eco-forestry, stating its support for 'commercial forestry companies all over the world who appreciate É truly sustainable forestry'. By stating that 'much of the criticism levied against WWF in the report is wrongly based on the assumption that WWF owns and manages the Forest Stewardship Council (FSC)', WWF misrepresent the claim by ITS Global that it controls the FSC. The document also falsely sustains the claim that global consumer demand for certified timber is strong; this claim is disproved by the recently released UNECE/FAO Forest Products Annual Market Review, 2005-2006 (click here). WWF's document, Certified timber market speaks for itself, can be found here.

August 2006: World Bank creates new challenge for forestry in developing nations
The International Finance Corporation (the arm of the World Bank Group responsible for private-sector lending) recently conducted a review of its safeguard lending policies and has developed a new set of Performance Standards on the social and environmental impacts of funded projects. The new Performance Standards are now in force. Performance Standard 6 relates to sustainable natural resource management. The standard requires clients involved in natural forest harvesting or plantation development to have their resources independently certified, or 'develop and adhere to a time-bound, phased action plan for achieving such certification'.

According to the latest data, forest certification remains largely confined to the forests resources of the developed countries. The new standard will therefore make it extremely difficult for forestry operators in developing countries to obtain financial assistance from the Bank.

A full version of Performance Standard 6: Biodiversity Conservation and Sustainable Natural Resource Management can be found here.

23 August 2006: NGOs target ANZ for its association with Rimbunan Hijau
A five-member coalition of Australian and PNG NGOs has filed a formal complaint to the Organisation for Economic Cooperation and Development (OECD) against the ANZ Bank over the latter's relationship with Rimbunan Hijau. ANZ is accused of being complicit in the alleged environmental and social damage caused by RH, thus breaching OECD Guidelines for Multinational Enterprises. The coalition includes Australian Conservation Foundation (ACF), the Centre for Environmental Law and Community Rights (CELCOR), the Environmental Law Centre, the Human Rights Council of Australia, and the PNG EcoForestry Forum.

In particular, NGOs assert that ANZ's financial relationship with Rimbunan Hijau is detrimental to PNG's economic, social and environmental progress, whilst also contributing to human rights violations. The claims against Rimbunan Hijau rely on the reports by the Independent Review Team, Forest Trends and Masalai-i-tokaut as evidence; these sources have been largely discredited in a report by ITS Global. The submission calls for ANZ's 'immediate disengagement from socially and environmentally destructive forestry operations in PNG' (i.e. commercial forestry), as well as a commitment to promote 'community-based forestry operations'. A full version of the submission can be found here.

22 August 2006: Skill shortage in Australian timber industry due to 'negative propaganda'
A report funded by the Australian Government has found that an 'undeserved negative image' is the core reason for a skills shortage in the Australian timber industry. Conducted by the National Association of Forest Industries (NAFI) in conjunction with the Australian Plantation Products and Paper Industry Council (A3P), the study asserts that the negative perceptions about the wood and paper products industry results in the inability to attract young professionals (particularly engineers, accountants and electricians).

The Australian Minister for Fisheries, Forestry and Conservation, Senator Eric Abetz lamented the fact that 'the Greens' continual negative propaganda' is having a negative effect on the industry, particularly as the number of timber plantations increases. The government also pledged its commitment to improve the public perception of the industry.

A full version of the report, Wood and Paper Products Industry Skills Shortage Audit, is located here.

7 August 2006: PNG forest industry abusing human rights, says AFC
The Australian Conservation Foundation (ACF) has produced a report which accuses the commercial forestry sector in Papua New Guinea of causing 'spiralling abuse of civil, political, economic, social and cultural rights'. The report, Bulldozing progress: human rights abuses and corruption in Papua New Guinea's large scale logging industry, was produced in collaboration with the Centre for Environmental Law and Community Rights (CELCOR), a PNG-based NGO.

The report recycles material from papers by Greenpeace attacking the PNG forestry sector. ITS Global undertook a critique of Greenpeace's allegations and found them to be baseless (see Whatever it takes - Greenpeace's anti-forestry campaign in Papua New Guinea, available here). ACF and CELCOR also include evidence from a small number of interviews with land owners. The evidence is unverifiable and presented without regard to investigating the actual circumstances in which claims were made. Many of the claims relate to a road-clearing project, which was investigated and closed by PNG authorities. The case is not indicative of production forestry in PNG.

In their recommendations for solutions to PNG's political and economic problems, ACF and CELCOR propose increased funding for groups such as CELCOR and the replacement of industrial logging with small-scale eco-forestry. This mirrors Greenpeace's vision for forestry in PNG. ACF and CELCOR also call for increased funding for the police force, and creation of new public supervisory bodies. They do not discuss how such actions could be resourced or the economic impacts of phasing out an industry important to PNG's economic growth.

The Papua New Guinea Government and the PNG forest industry have denied the allegations. A full version of the ACF report can be found here.

5 August 2006: Greenpeace targets furniture retailers in Sydney
Furniture retailers in Sydney's Homeworks Caringbah shopping complex were subjected to a day of action by Greenpeace. Claiming that retailers were 'selling products sourced from suspected illegal timber from Papua New Guinea and Papua, Indonesia where over 80% of the logging is illegal', Greenpeace activists wrapped 'Forest Crime Scene' tape around timber furniture, placed stickers on timber furniture with the message 'Is this timber stolen from rainforests?', and attempted to confiscate a table made from suspected stolen timber. Activists left after police entered the premises.

Greenpeace's claims of illegality were based on a 'suspicion', due to the alleged lack of credible certification on the stocked furniture. The Greenpeace spokesman urged furniture retailers to adopt purchasing policies which would ensure the absence of illegal timber, and encouraged consumers to purchase FSC-certified products.

26 July 2006: New report highlights the importance of commercial forestry in PNG
A new report has found that commercial forestry is a consistent contributor to growth in Papua New Guinea and could play a larger role in development in the future. The Economic Importance of the Forestry Industry to Papua New Guinea, produced by ITS Global, marks a first attempt to estimate the economic value of the infrastructure created by commercial forestry in PNG.

The findings contradict claims by Greenpeace and other Green NGOs that commercial forestry in PNG is economically unviable and provides little economic value. The report found that the industry employs 10,000 people, contributes 5 per cent to GDP and a quarter of a million dollars each year in exports. Export taxes on logs account for 3 to 6 per cent of all tax.

At the regional level, the impact of the industry includes the provision of roads, air fields and services, wharves, schools and medical clinics for the local populace. A case study of Western Province indicated the industry doubles the amount of infrastructure provided by the provincial government. The report also found that the industry could contribute more if property rights, taxation and institutional arrangements and economic policies were improved. The study provided evidence that eco-forestry (promoted by Greenpeace as a replacement for commercial forestry) is currently commercially unviable in PNG.

The report was commissioned by Rimbunan Hijau (PNG) Group, the largest forestry operator in PNG, to assess the current and potential economic significance of forestry in Papua New Guinea. To see the report in full, click here.

25 July 2006: Greenpeace brokers deal to ban the use of "illegally" grown soy in the Amazon
Leading European supermarkets, food manufacturers and fast food chains such as McDonalds have pledged not to use soy "illegally" grown in the Amazon region in response to Greenpeace's claim that large areas of Amazon forests are being cleared for the crop. A two year moratorium on newly deforested land in the Amazon has been agreed on. The deal was brokered by Greenpeace UK, which linked the illegal destruction of the forest to large-scale soy farming. The related press release by Greenpeace can be found here. The story was also covered by The Age.

20 July 2006: PNG accused of transfer pricing, but evidence lacking
A news article in The Australian has accused the Papua New Guinea forest industry of engaging in transfer pricing, resulting in the loss of A$100 million a year in tax revenue for the PNG government. However, the news item fails to provide adequate evidence for the claim, citing only the difference in export prices of timber from PNG, Malaysia and western Africa. Other factors influencing export prices have been ignored, and the allegation of an A$100 million tax revenue loss is referenced to unspecified "industry sources". The PNG Forest Industries Association has denied the claim.

19 July 2006: NAFI welcomes new toolkit to assess effects of reforestation
Australia's National Association of Forest Industries (NAFI) has welcomed the launch of a toolkit which will provide a framework that enables private investors, farmers and the forest industry to optimise commercial forestry. Developed by Ensis (a collaboration between CSIRO in Australia and Scion in New Zealand) and launched by the Australian Forestry and Conservation Minister, Senator Eric Abetz, the Commercial-Environmental Forestry toolkit is said to increase the cost-effectiveness of revegetation projects, including commercial timber plantations. A relevant press release can be found here.

18 July 2006: Poland and Czech Republic progressing towards PEFC certification
Forest certification schemes of Poland and the Czech Republic are undergoing the international public consultation period in a bid to achieve PEFC endorsement. External consultancies have been hired by PEFC to independently assess whether the national systems comply with the PEFC benchmark requirements. While the Czech Republic is seeking PEFC's re-endorsement for a second 5-year period, Poland's bid is its first. More information can be found on the PEFC website.

15 July 2006: Greenpeace campaign against forestry in PNG laid bare
ITS Global has released a report which reveals that a campaign run by Greenpeace against Rimbunan Hijau (the largest forestry company in PNG) is baseless. Greenpeace claims that Rimbunan Hijau's logging is illegal and is destroying the environment. It also claims that the company abuses human and labour rights, and is engaged in corruption. None of these claims can be substantiated.

The report, Whatever it takes - Greenpeace's anti-forestry campaign in Papua New Guinea, concludes that Greenpeace's attack on the company is a proxy campaign to replace commercial logging in PNG with eco-forestry and subsistence forestry. If successful, this strategy would cost PNG 10,000 jobs, reduce GDP by 5 per cent and reduce exports by half a billion Kina. The report also points out that PNG's forestry is not in danger of imminent destruction, as Greenpeace contends.

The report notes 'Greenpeace is not interested in developing sustainable commercial forestry or improving the economic welfare of the people of PNG. It has only two interests in PNG: first, to see it used as a model for its own view of how the world should look; and second, to secure a tactical victory to support its global campaign to stop commercial forestry'.

Greenpeace's accusations against the company are made in The Untouchables: Rimbunan Hijau's world of forest crime and political patronage, released in 2004 by Greenpeace International, and Partners in Crime: the UK timber trade, Chinese sweatshops and Malaysian robber barons in Papua New Guinea's rainforest, released by Greenpeace UK in 2005.

ITS Global was commissioned by Rimbunan Hijau to review Greenpeace's claims and assess them. Whatever it takes is an exhaustive and detailed analysis of the claims. To access the full text, click here.

12 July 2006: Greenpeace climbs building in protest
Greenpeace has staged a 12-hour protest on top of the UK government's Cabinet Office building, claiming that the latter is being refurbished using timber from Papua New Guinea. Greenpeace has long asserted that commercial forestry in PNG is "illegal". Labelling the UK government procurement policy on timber purchase as 'totally ineffectual', Greenpeace has demanded that the government imposes a total ban on imports of PNG timber. The story was covered by UK's Telegraph. Greenpeace's recollection of the event can be found here.

7 July 2006: Eight new projects for Tasmanian forestry industry
AU$14 million will be spent on eight new forestry projects established under the Tasmanian Community Forest Agreement. $3.5 million will come in form of grants from Tasmanian and Federal governments, whilst the remaining funding will be provided by the industry. The grant money will be used for upgrades and purchases of new equipment, which 'will boost safety and efficiency, and enable many to meet the challenge of moving into new forest types', according to the Australian Forestry and Conservation Minister, Senator Eric Abetz. A media release by the Department of Agriculture, Fisheries and Forestry (DAFF) can be found here.

3 July 2006: Australian government under criticism from PNGFIA
Bob Tate, the executive officer of the Papua New Guinea Forest Industries Association (PNGFIA), has condemned the possibility of Australia banning timber imports from PNG. In an article posted on the PNGFIA website, Tate stated that such a move 'will be contributing to loss of jobs, rural development and income generation in rural PNG'. The comments come following an article in The Australian, which alleged that Australian Forestry Minister Eric Abetz labelled the "vast majority" of rainforest logging in PNG as "illegal". Bob Tate has denied the allegation.

22 June 2006: NAFI dismayed by the decision on sleepers
National Association of Forests Industries (NAFI) has voiced its disappointment at the decision by the Australian Rail Track Corporation (ARTC) to upgrade the North-South rail link between Brisbane and Melbourne using concrete, rather than timber sleepers. According to NAFI CEO Catherine Murphy, the move will result in the loss of 600 direct and 1200 indirect jobs and will have a negative environmental impact, as 'the production of 1.3 million concrete sleepers per year will result in the release of thousands of tonnes of greenhouse gases into the atmosphere'.

Ms Murphy also lamented the $10 million investment in mill upgrades, made in the anticipation of ARTC requirements. NAFI is planning to work with the New South Wales and Victorian timber industry to reverse the decision. Related press release can be found here.

20 June 2006: UN lifts ban on Liberia's timber exports
The United Nations Security Council voted unanimously to lift the ban on Liberia's export of round logs and timber, applauding the country's new President for her efforts in managing the nation's forests. The Council also praised Liberia's newly-imposed moratorium on timber exports and new concessions, pending the passage of appropriate forestry legislation. The Council's decision is to be reviewed after 90 days. Sanctions were originally imposed on Liberia in May 2001, after reports that the Liberia's natural resources were fuelling conflict in the region. The related news release from UN can be found here.

15 June 2006: EU adopts Forest Action Plan
The European Commission (EC) has adopted an EU Forest Action Plan, which provides a framework for forest-related actions at the EU and member-state level. The plan aims primarily at improving the long-term competitiveness of the European forest sector, through innovation and research activities, as well as training for forest-owners and forest workers. Increased use of forest resources for energy production is also proposed, as well as the development of a European Forest Monitoring System. The plan contains 18 key actions, to be implemented jointly with the member states during 2007-2011.

A full copy of the EC communication on the plan can be found here. A related press release by the European Commission, titled 'European Commission adopts an EU Forest Action Plan', can be found here.