Forestry & Development E-News: April 2010

 

Forestry & Development (F&D) is an online resource on sustainable forestry. It supports commercial forestry as a viable source of economic growth which is compatible with sustainability.

Contents

Is Australia about to cave on illegal logging?

Rumours circulating in Canberra indicate that the Australian Government is about to implement a new policy on illegal timber imports. But the impending policy will have less to do with achieving positive environmental outcomes than political game playing – and the cost will inevitably fall on the Pacific’s poorest.

REDD will do little for PNG according to leading economist

One of the Pacific region’s leading agricultural economists has argued that proposed REDD schemes will do little to improve the livelihoods of local communities in Papua New Guinea.

Global deforestation slowing: FAO

New findings from the Food and Agriculture Organization of the United Nations (FAO) indicate that the global rate of deforestation slowed over the last decade.

Illegal logging ‘virtually impossible’ to measure: Chatham House

One of the UK’s leading think-tanks on illegal logging declares that good evidence is hard to find.

South Africa lashes Greenpeace for lobbying efforts

South African authorities hit back against environmental NGOs for their efforts to halt a World Bank loan investing in power plant infrastructure in the country’s failing energy industry.

Is Australia about to cave on illegal logging?

Rumours circulating in Canberra indicate that the Australian Government is about to implement a new policy on illegal timber imports. But the impending policy will have less to do with achieving positive environmental outcomes than political game playing – and the cost will inevitably fall on the Pacific’s poorest. 

Canberra sources indicate that Australia’s Department of Agriculture, Fisheries and Forests (DAFF) has finally sent to Cabinet proposals on how to implement Labor’s election commitment to ban the import of illegal timber products. During the 2007 election campaign, Labor made clear promises to “require disclosure at point of sale of species, country of origin and any certification” and “identify illegally logged timber and restrict its import into Australia”.

Illegal logging has been a cause celebre among environmental campaigners in the Australia/Pacific region for the last decade. The key target has been the forestry industry in Papua New Guinea. The allegations against the industry from environmental campaigners have been at best scurrilous. At worst they have bordered on racial vilification. There have even been complaints in the Malaysian media about the unwarranted emphasis by campaigners on the Chinese ethnicity of the owners of the company.

The claims made by environmental campaigners – such as the claim that 90 per cent of timber from PNG is illegally logged – have been grossly overstated. These claims have been made with no supporting empirical evidence.

Accurate data on illegal logging is lacking. Seneca Creek, the definitive study on illegal timber markets, places the total global amount at roughly 10 per cent of global trade. Yet the authors admit their report is “more art than science”. To date there is no sound empirical research on the global extent of illegal logging.

Duncan Brack, one of the world’s cheerleaders for the illegal logging cause, has even stated that it is close to impossible to obtain an accurate measurement of the world’s illegal logging activity.

The Australian Government commissioned the highly respected Centre for International Economics to complete a regulatory impact statement for an Australian illegal logging policy.

The report concluded that the amount of ‘illegal’ timber entering Australia was miniscule. It also concluded that any regulatory measure would do little about levels of illegal logging in the region, and that it would impose a cost on Australian consumers. It recommended that voluntary measures be undertaken by the industry.

Australian forestry minister Tony Burke stated clearly that he rejected the findings of the report – because it would mean not delivering on an election promise. Never mind that the promise was ill-thought in the first place, or that much of the data driving the debate have been unreliable. 

The measures that the Australian Government is now considering amounts to a de facto trade ban on imported forest products.

Trade bans fly in the face of the Government’s firm and repeated declarations that it will not support environmental trade bans.  It would be far more effective just to work with them to improve forestry practices, as Tony Burke has already promised when announcing other programmes.

Ordinarily prudent politicians would run a mile from these odious Green-inspired quagmires, particularly if they are created to advance imperious EU-style trade bans.

Yet, one policy option reportedly before Cabinet is a ‘Clayton’s’ trade barrier on timber imports from Asia-Pacific countries.  The idea is to mandate a trademark to verify the legality of any timber product import. That will also likely fall afoul of WTO rules. Any regulated control that discriminates against imports is out.

Why, then, is the Australian Government thinking of implementing a policy that is based on spurious claims and that its own research did not recommend?

It is an election year. This may be suitable Green compensation for the Government’s failing climate change and renewable energy policies. But rather than ensuring positive environmental outcomes, such policy will serve to undermine economic development in countries such as PNG.

Our developing neighbours know what DAFF has been slow to work out. This is not a campaign to stop illegal logging, but one to pressure developing countries to restrict their forestry industries. 

The implications are serious.  Pressuring poor countries not to avail themselves of the right wealthy countries happily once exercised – to gain from more productive use of forest land – is imperious. Especially, as in the case of Australia’s three leading forestry neighbours, more than enough forest area has already been set aside for conservation.

We should not be surprised. The same tactic has been used against the Australian forest industry. Harm to the environment has been exaggerated to foster opposition to forestry.

The Australian Government seems to have bought the Green line, much to the detriment of Australia’s immediate neighbours..

REDD will do little for PNG according to leading economist

April 2010: One of the Pacific region’s leading agricultural economists has argued that proposed REDD schemes will do little to improve the livelihoods of local communities in Papua New Guinea.

Dr Colin Hunt, visiting fellow in the School of Economics at the University of Queensland and author of Climate change and carbon sinks: forestry in the fight against global warming, gave a presentation at ANU looking at potential costs and benefits of a future REDD (Reducing Emissions from Deforestation and forest Degradation) scheme in Papua New Guinea.

Hunt, an advisor on forestry to the Papua New Guinea Government, argued that the implementation of a REDD scheme posed serious threats to PNG, as the financial benefits from forest credits had little chance of filtering through to landowners. He further argued that it was unrealistic and immoral to assume those currently working in the forestry industry could rely on REDD welfare.

Hunt’s estimates demonstrate that the prospect of REDD generating economic returns for PNG, above reasonable opportunity cost estimates, is remote.

The presentation signaled a departure from his previously published views.

Hunt’s questioning of the potential benefits for Papua New Guinea from REDD implementation, specifically benefits to land owners and forestry workers, marks a significant shift in the debate on REDD. In particular, it points to the fact that many more governments and institutions are examining more closely the claims surrounding the economic returns of REDD within developing countries, particularly when compared with the returns from forestry and agriculture. 

Global deforestation slowing: FAO

April 2010: New findings from the Food and Agriculture Organization of the United Nations (FAO) indicate that the global rate of deforestation slowed over the last decade. The report, covering 233 countries and areas, is FAO’s most comprehensive forestry study to date. The report, delivered every five years, is considered to be the definitive assessment of global forests. The release of the key findings precedes the publication of the complete Global Forest Resources Assessment 2010, scheduled for October 2010.

The new data show that deforestation rates have decreased over the past 20 years. Approximately 13 million hectares of forest were converted or lost annually in the last decade, compared to a rate of 16 million hectares per year in the 1990s.

The study states that Brazil and Indonesia, which had the highest loss of forests in the 1990s, have significantly reduced their deforestation rates. Indonesia’s annual rate of deforestation fell to 0.5 million hectares from 1.9 million hectares over the past 20 years.

The findings also indicate that tree planting programmes in countries such as China, India, the United States and Vietnam, in conjunction with areas of natural forest expansion, have slowed down global deforestation rates. The report states that the area of planted forest increased by about five million hectares annually from 2005 to 2010. In Asia alone, the rate of forest area growth increased by approximately 80 per cent.

Illegal logging ‘virtually impossible’ to measure

April 2010: Illegal logging rates have fallen in several countries according to a pilot study for a new research project by Chatham House, a UK think-tank. Chatham House’s illegal logging expert, Duncan Brack, further argued that it is “virtually impossible” to accurately measure the amount of illegal logging in a  presentation at a joint UNECE, FAO, and WTO conference on emerging trade measures on timber markets.

Brack’s presentation outlined the current research project. The study aims to assess the illegal logging sector by looking at: national levels of media attention on illegal logging; government policy development and implementation to address illegal logging and poor forest governance; private sector policy development and implementation to address illegal logging; and poor forest governance; and the actual level of illegal logging and trade (where available).  The study also includes a survey of experts within each respective country. 

The preliminary results covering five countries showed what Brack describes as “encouraging progress” in Cameroon and Indonesia from 2001-06. The pilot study also found a reduction in imports of illegally-sourced timber in all consumer and processing countries profiled in the research. 

The first phase of the full study, Measuring the Response to Illegal Logging: Indicators of Progress, is expected to be published in June/July 2010. The research project is largely funded by the UK Department for International Development (DFID).

South Africa lashes Greenpeace for lobbying efforts

April 2010: South African authorities hit back against environmental NGOs for their efforts to halt a World Bank loan investing in power plant infrastructure in the country’s failing energy industry. Earlier this month, Greenpeace intensified lobbying efforts against a proposed World Bank loan assisting the development of the Medupi coal-fired power station. Greenpeace failed to stop the World Bank from eventually approving the US$3.7 billion loan.

Pravin Gordhan, the South African Finance Minister, accused environmental NGOs of trying to impose their priorities on a country lacking the reliable power taken for granted by developed nations. “It is regrettable that . . . developed countries and very small group of NGOs in South Africa are putting their environmental concerns, which can’t be immediately addressed, above the economic needs of South Africa and our need to grow the economy so that all the people benefit.”

Greenpeace opposed the loan on the grounds that coal power adds to greenhouse gas emissions, despite the project allocating $260 million for wind power and a further $490 million to improve the plant's efficiency. According to a Greenpeace Africa spokeswoman, “the victims of this decision are the hundreds of thousands of impoverished people”.

However, proponents of the development say that what impoverished people in South Africa need most is affordable and reliable power. Rather than further harming the poor, they argue that the power station is essential to alleviate poverty. The World Bank, in approving the loan, argued that “without energy, countries face very limited or no economic growth: factories and businesses cannot function efficiently; hospitals and schools cannot operate fully or safely; basic services that people in rich countries take for granted cannot be offered.”

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