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Report of the Forty-second Session of the
FAO Advisory Committee on Paper and
Wood Products

REPORT

1. The FAO Advisory Committee on Paper and Wood Products held its forty-second session in Rome on 27 April 2001. Mr Luis Deslandes chaired the session, which was attended by 15 members and 37 other participants from 24 countries, and 4 international organizations (Annex 1).

Item 1. Opening of the session and welcome address

2. Mr Luis Deslandes, Chief Executive Officer, Sociedad Portuguesa de Papel S.A., opened the session and welcomed the participants.

3. On behalf of Dr Diouf, Director-General of FAO, Dr Hosny El-Lakany, Assistant Director-General of the Forestry Department, welcomed the members of the Committee and all the participants. He expressed the Organization's gratitude to the members of the Committee, recognizing the importance of participants' contribution to the activities of the Committee in terms of time and expertise and acknowledged the support and the guidance of the Committee in the activities of the Forest Products Division related to the forest industry sector. He recalled the uniqueness of the Committee and its important role as a liaison between the private sector and FAO.

Item 2. Adoption of the agenda

4. The agenda (Annex 2) was adopted as proposed.

Item 3. Review of actions taken by FAO on the recommendations made at the forty-first session of the Advisory Committee

5. Dr Wulf Killmann, Director, Forest Products Division, FAO, reviewed the activities undertaken by FAO, and their relevance to the recommendations made by the Committee at its previous session. He indicated activities were concentrated in four areas:

a) Mitigation of global climate change: FAO organized a meeting on verification of country-level carbon stocks and exchanges in non-annex I countries, attended by 17 experts. A new post of senior forestry officer (forestry and climate change) was established and the recruitment is proceeding with staffing expected in September 2001.

b) Promotion of sustainable forest management: FAO organized an expert consultation on criteria and indicators for sustainable forest management (SFM) in collaboration with other international organizations. FAO hosted a seminar on building confidence amongst forest certification schemes and their supporters with ITTO and GTZ. FAO will continue playing a role between stakeholders in certification. FAO continued to be closely involved in all stages of the World Bank forest policy implementation review and strategy. The World Bank recognizes that there are other certification systems than the Forest Stewardship Council (FSC), and it is not restricting its project financing to those using exclusively FSC certified products. After extensive work by FAO to contribute to the review of the World Bank forest policy implementation review and strategy, it appears the Bank does not see as strongly as before the need for such a review and revision, but that it will only present a vision statement for its action in the forestry sector. The subject is still being discussed and it is difficult to have a definite picture due to the involvement of various other World Bank's departments operating independently from each other. World Bank's initiatives in non-forestry sectors appear to affect the forestry sector more than activities in the forestry sector itself.

c) More frequent exchange of information: a meeting between the FAO Advisory Committee on Paper and Wood Products and the International Forum on Forest and Paper Associations (IFFPA) was held to discuss relationship, synergies and complementarity of both committees. FAO commissioned a study on "Comparison of wood products and major substitutes with respect to environmental and energy balances", and the results should be available in August 2001. Packaging may be added in the study later. Forest Communicators Network of FAO-ECE Timber Committee carried out a study on the substitutes of wood and paper packaging two years ago.

d) Recovered paper: a working group was established to review definitions and classifications and a proposal was presented to the Committee.

Item 4. FAO and Industry activities in forestry

a) Overview of FAO's work with special consideration to forestry

6. The structure and organization of FAO and more especially of the Forestry Department was presented to the participants. The process of planning and the strategic framework were introduced as well as the areas considered as priorities by the Forestry Department.

b) The international forestry debate and connected bodies

The intergovernmental forest policy dialogue: from Rio to UNFF

7. During the United Nations Conference on Environment and Development (UNCED) in Rio de Janeiro in 1992 forests were most controversial and various initiatives were developed to address deforestation mostly in the tropical countries. The debate moved onwards to include all forests at a later stage. It was decided that a separate body was needed to address forestry issues and the International Panel on Forestry (IPF: 1995-1997) was established. It was succeeded by the International Forum on Forestry (IFF: 1997-2000) and will be replaced by the United Nations Forum on Forests (UNFF).

8. The length of meetings, continuous and growing use of acronyms in international bodies, and proliferation of international organizations participating in the same initiatives unfocused discussions and lack of concrete action proposals with timetable are major obstacles to the participation of the private sector in these meetings. However, FAO is not in a position to change significantly this situation and the private sector should voice these concerns to government. IFFPA is in the process of applying for NGO status and would thus be able to participate in international meetings. An alternative to direct recognition is to be part of national delegations. The International Chamber of Commerce (ICC) is accredited to UN organizations, and can represent officially industry on specific issues.

9. Though World Trade Organization (WTO) negotiations are dealing with agriculture and non-agriculture issues, forestry is not an important issue. In WTO forestry issues are only addressed in the Trade and Environment Committee but even there it is not a priority.

c) Developments in the area of mutual recognition of certification systems, sustainable forest management, and criteria and indicators

i) Criteria and indicators for sustainable forest management

10. Sustainable forest management (SFM) recognizes the contribution of forests to economic, social, cultural and environmental development. The amount of forests managed according to a formal or informal management plan ranges from 6 percent in developing countries to 89 percent in developed countries. Criteria and indicators are tools used to review status and to monitor trends towards SFM. FAO provides support and services to member countries in relation to SFM, and acts as a focal point for the issue of criteria and indicators for SFM.

11. There are some 150 countries adhering to one or more of the various international processes for criteria and indicators (ITTO, Tarapoto, Amazon, etc.). Countries are in the process of verifying the relevance of the indicators that could lead to a reduction of the number of indicators presently considered. An FAO/ITTO/UNEP/CIFOR/IUFRO expert consultation on criteria and indicators for SFM was held in Rome to assess the current situation and review the way ahead. An international conference on criteria and indicators for SFM is being developed to facilitate and promote dialogue and understanding among various stakeholder groups and will eventually lead to increased commitment to further the implementation of SFM.

Forest certification - current status and recent developments

12. Many certification schemes are being developed but only a small number are operational. Importing countries in, as well as exporting countries to, Western Europe are the most interested countries in certification. Areas under certification with any scheme (Forest Stewardship Council, Pan European Forest Certification Scheme, ISO, Sustainable Forestry Initiative, etc.) are growing, showing the interest in the certification issue. The certification process is not driven by concerned customers, but it is pushed by environmental groups, retailers, forest owners, etc., who want to demonstrate their management in order to gain market advantage over competitors. Growing attention is given to some form of mutual recognition between the various certification processes.

13. FAO has maintained a strong interest in the issue of certification by participating in and organizing seminars and workshops such as the recent FAO/GTZ/ITTO seminar on "Building confidence among forest certification schemes and their supporters". Participants included producers, trade associations, NGOs, governments and certification schemes among others. Participants expressed a desire to continue the dialogue and agreed that neutral organizations such as FAO, GTZ and ITTO should continue to facilitate the dialogue.

ii) Global mutual recognition framework

Why mutual recognition?

14. The International Forest Industry Roundtable (IFIR) is a network of associations and companies meeting since 1994 addressing SFM issues. It has established a roundtable on mutual recognition to enable mutual recognition, expand the availability of certified products, prevent discrimination and promote the practice of SFM.

15. There are presently many certification systems according to forest types, ownership, business structure and politics. It is important to have mutual recognition to avoid confusing the market, to increase competitiveness and minimize trade barriers and regulation. Mutual recognition is an arrangement under which one certification system recognizes and accepts other certification systems as being equivalent in intent, outcomes and process in critical elements.

16. The action plan of the International Mutual Recognition Framework for 2001-2002 is to i) continue stakeholder consultations, ii) refine proposal for implementation, and iii) build support for establishing the network to meet the goal of having an operational mutual recognition operative by the first quarter of 2002.

17. An agreement was reached in April 2001 between the IFFPA and IFIR to endorse the concept of mutual recognition, to acknowledge IFIR technical report, to endorse the working group action plan and to support the Advisory Committee recommendations to FAO. The International Mutual Recognition Framework proposes that ACPWP makes the following recommendations to FAO: i) endorse the concept of mutual recognition, ii) acknowledge IFIR technical report, iii) endorse the working group action plan, and iv) support implementation via technical support for assessment tools and capacity building.

iii) National/regional certification systems development

Confederation of European Paper Industry's (CEPI) comparative matrix of certification systems

18. CEPI recognized that the various forest certification systems could confuse consumers of forest products, create trade barriers, and raise credibility doubts, and to address these concerns it initiated a comparative matrix of certification systems. This matrix should provide reliable and unbiased information, help in facilitating debate towards mutual recognition and allow for comparing of the systems against credibility principles. Neither the matrix nor CEPI will provide judgement of the certification systems.

19. Starting in 1999 questionnaires were prepared and sent out, with a follow-up in 2000. The matrix was prepared and reviewed by an independent body and revised accordingly. CEPI acknowledges the need to improve the matrix, recognizes the problems due to information provided by certification bodies, understands the need to involve other stakeholder, believes the matrix should help facilitate mutual recognition and intends to revise it in 2001. The ultimate goal is to have the matrix run by an independent body, such as research or academic institution or an international body.

20. The proliferation of certification systems is causing confusion and there is a need to establish a governing body to ensure credibility and quality of the various schemes since integration of these national schemes could be difficult. However, economic forces are pushing toward a unified system, and industry would want to avoid going through numerous national systems before marketing their products. In spite of the growing importance given to certification systems and mutual recognition, sustainable forestry management is and should remain the first priority. There is some concern over the fact that certification, which was originally intended specially for developing countries, is now mostly discussed in developed countries and that these systems are becoming so complicated as to leave out the countries for which they were originally designed. FAO will support the implementation of SFM in developing countries, as well as any system, which will contribute to SFM, such as certification among others.

Item 5. Climate change

a) Forestry and climate change after CoP6

21. The 3rd Conference of Parties (CoP3) to the United Nations Framework Convention on Climate Change (UNFCC) adopted the so-called Kyoto Protocol whereby i) countries committed themselves to reducing greenhouse gas emissions; ii) flexible mechanisms for the mitigation of climate change were agreed upon; and iii) the protocol would enter into force when at least 55 parties had ratified it. The Special Report on Land Use, Land-use Change and Forestry helped shed light on the role and potential of forests within the international mechanisms related to climate change.

22. In November 2000, the 6th Conference of Parties (CoP6) to UNFCC met to ratify the Kyoto Protocol. No agreement was reached due to such issues as: compliance (what happens when a party does not fulfil its commitment?); what projects are to be executed under the flexible mechanisms; modality and operating rules; rules of trading emissions; how to finance transfer of technology to developing countries; monitoring; verification; and one of the major issue: how to include forestry in the Kyoto Protocol if it is to be considered as a carbon sink.

23. In April 2001, the United States of America decided to withdraw from the Kyoto Protocol, that they would not send the protocol to Congress for ratification and that they would not implement the treaty. It will thus be very difficult to ratify the treaty without the United States of America which is an important country in terms of emission of greenhouse gas (about 25 percent of total emissions). Efforts are under way by others (Europe, Russian Federation, Japan) to investigate ratification without the United States of America as well as other approaches presently under consideration.

b) Review of FAO and Industry activities related to climate change

i) Review of FAO activities related to climate change

24. FAO sees its role in the context of climate change as:

- a neutral forum: organizing meetings and workshops on subjects of relevance to climate change (verification, assessment of methods and tools);

- a repository and provider of data and information: forestry and land-use data, soil maps, publications;

- networking: participation in and co-sponsoring of initiatives and UN meetings, establishment of electronic servers to share information;

- custodian of methods, standards and models: contribution on forestry definitions to the Intergovernmental Panel on Climate Change (IPCC).

25. FAO will recruit a senior forestry officer on climate change to improve the capacity of the Organization to address the issue. Furthermore, the Organization will aim its activities at a more comprehensive programme to assist member countries in reducing emissions and adapting to climate change; preparing legal and policy instruments to prepare strategies; monitoring and understanding implications of climate change; and strengthening cooperation and synergies between various organizations.

ii) Review of Industry activities related to climate change

Meeting the challenge of climate change

26. An ad hoc group of signatory countries decided to present jointly their views on climate change. Participants included: American Forest and Paper Association (AF&PA), Confederation of European Paper Industry (CEPI), Forest Products Association of Canada (FPAC), Japan Paper Association (JPA) and New Zealand Forest Industries Council (NZFIC), together representing about 75 percent of world paper production. The objectives were to identify common points of view, communicate with key stakeholders and seek further opportunities for cooperation.

27. On forest sinks the group promotes SFM, recommends the use of FAO/IUFRO definitions for reforestation, afforestation and deforestation, and full carbon accounting and recognizes the role of managed forests. It promotes energy efficiency by encouraging the use of residual biomass as fuel, the implementation of combined heat and power and promotes research on emissions reduction and global climate change effects. In these countries while production increased, emissions decreased (biofuel usage increased, fossil fuel emissions decreased). The group encourages recycling; supports production of energy from excess recovered fibres, recognizes carbon sinks in products, and encourages substitution with wood-based products.

28. The position of this group regarding the Kyoto Protocol is that it should not distort competitiveness or raw material supply, the policies should be based on a carbon cycle approach and flexible mechanism should be recognized. Future activities will include: meetings, exploration of additional opportunities with non-signatory nations and the development of emission reporting systems.

29. There should not be any artificial promotion of using wood fibre for energy generation. It is considered more efficient from an economic, environmental and energy-wise point of view to use the wood fibre in the highest value products (such as paper, panels, lumber) for as many cycles as possible before using it to produce energy. This would further lengthen the carbon cycle by storing carbon in the product for a longer time than if the recycled fibres were burned immediately.

Item 6. Recommendations by the Advisory Committee to FAO, plan of action for the period 2001-2002, theme of the forty-third session of the Advisory Committee

30. After discussions within IFFPA, the Committee recommended that FAO undertake the following activities until the next session of the Committee in 2002:

Climate change

- Support the industry's efforts to monitor the carbon value chain through its knowledge on forestry and forest products and undertake and/or continue projects on carbon in forest and forest product.

- Clarify the existing definitions on forestry related to climate change issues.

Mutual recognition of forest certification schemes

- Endorse the concept of mutual recognition based on the forest management, marketing and trade access benefits that an International Framework for Mutual Recognition can provide.

- Acknowledge the technical work carried out by the IFIR's Working Group on Mutual Recognition during 1999/2000 and its Framework Proposal Report dated February 2001.

- Endorse the IFIR/IFFPA Action Plan for ongoing open consultations with all stakeholders, refinement of Framework components and implementation during 2001/2002.

- Support further dialogue, discussion, development and implementation through, for example, the provision of:

Statistics

- Continue its activities in recovered paper principally in clarifying definitions and classifications of recovered paper grades.

31. These recommendations will be reviewed by FAO for compliance with the objectives and policies of the Organization, and the results of this evaluation as well as the programme that FAO could envisage will be communicated to members of the Committee. Further discussions on recommendations and agenda will take place at an intermediary meeting scheduled later in 2001.

Item 7. Date and place of the forty-third session of the Advisory Committee

32. Through Professor Akim (Russian Federation) an invitation from the Leningrad Region was extended to hold the next session in the Russian Federation and the Committee decided that the forty-third session would be held in St Petersburg on 25-26 April 2002.

Item 8. Any other business

Secretariat note: Activity report of the working group on recovered paper

33. At its last session the Committee recommended the establishment of a working group to review recovered paper definition and classification. The working group proposed, and the Committee approved new definitions for the following ratios: Recovered paper collection rate, Recovered paper utilization rate, Recovered paper in fibre use rate, as well as the abandon of the ratio about Adjusted waste paper net recovery rate. Some grade definitions were revised to make them comparable to those used by other organizations.

Other comments

34. In spite of the new name of the Committee and its expanded mandate, it was regretted that agenda items were not giving enough importance to issues relevant to the wood products sector. A better mechanism should be established to identify agenda items which balance the programme of the session of the Committee. Such issues as the impact of illegal activities on trade was suggested as an example.

35. At its last session the Committee considered how the private sector could work with FAO on promoting SFM. FAO has prepared and will communicate its proposals to the members of the Committee for review and comments.

Item 9. Closing remarks

36. The Director, Forest Products Division, thanked all members of the Committee and their advisers for attending this session, he reiterated the importance of the Committee to FAO and emphasized the gratefulness of the Organization for their time and commitment. The Chairperson thanked all participants and the FAO team who organized the meeting before officially closing the forty-second session.

 

Annex 1: list of participants

 

Annex 2: agenda

1. Opening of the session and welcome address

2. Adoption of the provisional agenda

3. Review of actions taken by FAO on the recommendations made at the Forty-first Session of the Advisory Committee

4. FAO and Industry activities in forestry