Forestry and Development E-News: June 2009

 

Forestry and 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.

Greenpeace actions risk fanning anti-Chinese sentiment - reports in Malaysia

June 2009: The recent anti-Asian riots in PNG reflect how sensitive race issues are in the country.  There are regular flare-ups in this society in which the pressures associated with social change, high population growth and international migration are constant.

Asians (principally Chinese) have been a constant target in recent years.  Untimely media commentary in Malaysia that the activities of Malaysian forestry companies in the past may have contributed to this general situation brought an instant response from the PNG Forest Industries Association which has been extensively reported in the PNG and Malaysian media.

The following is an extract from a report in The Star in Malaysia on 28 May:

 

PETALING JAYA: The attacks against the Chinese in Papua New Guinea are due to an influx of illegal workers from China and not caused by the forest industry, say industry officials.

PNG Forest Industries Association executive officer Bob Tate said news reports alleging that the forest industry had promoted social disturbance was wrong, and risked inflaming a dangerous situation.

"Reports that problems in the forest industry, where the biggest operators were Malaysian-owned, had promoted social disturbance in the past were irresponsible and risked further inflaming a dangerous situation.

"For a start, there has not been any significant social disturbance from the forest industry in PNG, except foreign for foreign-finance environmental NGOs who are opposed to commercial forestry,"  he said in a statement.

Tate accused Greenpeace of leading an organised campaign to stop commercial forestry, calling the campaign unethical and opportunistic.

"It risks fanning anti-Chinese sentiment, both in Europe as well as PNG," he said, citing a 2005 report titled "Partners in Crime: The UK Timber Trade, Chinese Sweatshops and Malaysian Robber Barons in Papua New Guinea's rainforests".

"As well as branding the Malaysian-owned forest businesses in PNG as 'Robber Barons', it also persistently referred to them as 'Malaysian-Chinese'," he said.

 

The 2005 report was published by Greenpeace and is still online.

PNG and climate change: US$2.4m in funding

June 2009: Details of funding under an international programme to prepare Papua New Guinea to participate in the REDD forestry programme have been announced.  Sponsored by the UN Environment Programme (UNEP), the UN Development Programme (UNDP) and the FAO, the programme will provide approximately US$2.4m over two years.

REDD was conceived by the World Bank as a win/win strategy - developing countries would generate carbon credits to sell into a global system to trade emissions as part of a global strategy to reduce emissions of greenhouse gases.

No such global trading system is in prospect; not at least until China agrees to support mandatory global caps on emissions.  That is not likely in the foreseeable future.

So REDD is evolving into an arrangement to assist developing countries to better manage deforestation and forestry.

The good news is that the FAO will provide approximately US$1m to assist PNG to establish a robust methodology for calculating PNG's emissions.

The inclusion of the FAO in the process is an immensely positive step.  The FAO - unlike some of its fellow United Nations bodies - has genuinely stuck with its brief to improve food and agricultural output throughout the world.

The FAO's technical work on forestry - such as the periodical Unasylva - is arguably the most objective forest policy analysis available in a highly politicised field.

The illegal logging issue

Another positive development is that 'illegal logging' does not appear in the programme.  Anti-forestry groups such as Greenpeace continue to cite the World Bank to support the Greenpeace claim that 70 per cent of PNG logging is illegal.

It is to the shame of the Bank and its professionalism that its staff refuse to disavow its endorsement of that number, despite having been told officially by the PNG Government that the very report that they cite as evidence itself concedes that the number is an assumption and that the report's authors made no empirical assessment of forestry in PNG.

On the contrary, the empirical indications are that most logging is legal.  SGS, the independent agency which monitors PNG log exports to ensure that taxes are paid, finds no indications of widespread illegal logging.

There is no significant discrepancy between PNG timber export statistics and statistics on timber in import markets.  Major variations between them would be sure indicators of substantial illegal logging.

The downside of the programme is the stated intention to review all PNG forestry laws.  This is not necessary.  It will simply create a fresh opportunity for anti-forestry NGOs to continue to obstruct commercial forestry.

Supporting sustainable forest practices

At least the FAO work will help build the infrastructure that PNG needs to assess the content and performance of its forest estate properly.  Around 30 per cent of PNG is already set aside, so the fundamentals of forestry biodiversity are preserved.

Improved management of the commercial forest estate requires a full forest inventory (PNG does not have one) and more technical information about species to improve silviculture in PNG.  With that, improved forest conservation and management can be achieved.

If PNG can earn the benefits from carbon credits, so much the better.  Irrespective of whether or not that is achieved, improvement in the capacity of PNG authorities to manage  forestry will deliver certain benefits to the PNG economy.  This will benefit landowners, forest workers and people in poor rural areas where only forestry provides the infrastructure necessary to raise living standards.

 

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FSC Australia seeks charitable status

June 2009: Despite the Forest Stewardship Council’s (FSC) bluster, there are regular reports in the Australian forest industry that the FSC just cannot get operational.  Its coverage is small (from its publicity one would not think so) and it has signally failed to establish a national Australian SFM standard.  There are also signs that it is short of money.

In April, Australia's arm of FSC decided to seek recognition by Australia's tax authorities as a charity.  FSC promotes itself as a supplier of business services and charges heftily for them.  But business can't be too good given that the basic reason that organisations seek charitable status is to reduce costs and increase donations.

Businesses join FSC not for the "feel good factor" or the tax deductibility of the cost, but to acquire certification to supply markets where buyers want FSC certification (often after they have been pressured by WWF or Greenpeace to do so) or to get a Green anti-forestry organisation off their own backs.

When they have a choice, they prefer the PEFC forest certification standard, which is more professionally delivered and does not bring with it the attendant political demands.

WWF likes to regularly warn companies that their "reputation" may be at risk if they do not adopt policies proposed by WWF.  Ironically, it is those who associate with WWF who often receive the biggest bruising.

FSC is increasingly becoming a business risk for forestry companies.  Feuding among Green groups has resulted in Greenpeace and Friends of the Earth (both members of FSC) attacking FSC certification.  That is of little value to businesses which buy FSC services precisely to keep Greens off their backs.

Is WWF a provider of business services or a Green activist?  Like its sire and warden, WWF, FSC has to make up its mind.  So does business, and maybe even the Australian tax authorities.

 

Greenpeace's timber policies questionable

June 2009: To coincide with the Australia-PNG Ministerial talks in Brisbane in June, Greenpeace renewed its call to ban imports of 'illegal' timber from PNG.  Its spokesman was quoted as stating that Greenpeace wanted imported timber to be certified as legal and banned it if wasn't.

This statement is redolent of Greenpeace's continuous claims that the timber on the ship that it seized illegally in the Gulf of Papua last September was illegal - even after it was demonstrated on the public record that this was not the case.

The Greenpeace claim implies that it supports trade in forestry.  But Greenpeace supports something quite different.

Greenpeace's position on forestry in PNG is that there should be no "industrial" (read "commercial") forestry, only eco-forestry or community forestry.  That is commercially unviable, as even WWF has found, and would result in the closure of an industry which employs 9,000 people.

The only certification system which Greenpeace supports is the FSC system (it is a member and sometime supporter) which does not have a fully developed system for certifying legality of forestry in PNG.

The most comprehensive legality verification system available in PNG has been developed by the highly-reputable international inspection company SGS, which Greenpeace has attacked on grounds which has led the usually reserved Switzerland-based company to sharply criticise Greenpeace's claims.

Nevertheless, official agencies continue to treat Greenpeace as a serious participant in forestry discussions rather than a political combatant.  Australian officials recently thanked Greenpeace for its advice and assistance in the development of the Asia-Pacific Carbon Partnership programme.  A key element is to promote carbon trading between Australia and its neighbours.

A few days later, Greenpeace launched an international attack against the creation of carbon credits in any developing country.  This was no change of position.  Greenpeace has always opposed measures to reduce emissions by promoting sinks to absorb.  It insists that the only proper strategy is to shrink carbon-based energy industries.

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