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Report

The FAO Advisory Committee on Paper and Wood Products held its Forty-sixth Session in Vancouver, Canada on 31 May 2005. The meeting was attended by 37 participants from 20 countries, including 14 members (see Annex 1, list of participants) and it was chaired by Mr Saeki Yoshihiko, President of the Japan Paper Association. This report summarizes the main results of the discussions.

Item 1. Opening of the Session and welcome addresses by representatives from the Government of Canada and FAO

Mr Saeki Yoshihiko, vice-chairman of the Advisory Committee, opened the forty-sixth Session and Mr Brian Emmett, Assistant Deputy Minister, Canadian Forest Service, welcomed the participants on behalf of the Canadian government and expressed the hope that, despite the very busy week of activities and meetings, everybody would find some time to enjoy the city of Vancouver and the natural beauty that surrounds it. He noted that, not incidentally, this is also one of the most productive forest regions in the world. The forest sector has played a fundamental role in Canada’s economic and social development. Canada has become the nation that it is today, in part because of the influence of forestry. It is genuinely part of Canada’s heritage. A healthy forest and a strong forest sector have helped produce considerable prosperity for Canadians in cities and towns across the country.

Canada is familiar with the role that forests and the forest sector can play in economic and social development around the world. Sustainable forest management can play a key role in achieving and supporting the Millennium Development Goals with respect to combating extreme poverty and hunger, provision of safe drinking water, universal primary education, gender equality in education, and prevention of maternal and child mortality and HIV aids. Mr Emmet stressed that one of his personal missions is to persuade the Canadian Development Agency to place forestry even higher on their agenda. Action has been taken in order to meet international commitments with respect to poorer countries; in the most recent budget, the Government of Canada confirmed its commitment to double international assistance by 2010.

Canada has taken a leadership role by virtually eliminating bilateral debt of the highly indebted poor countries and by committing to multilateral debt relief. In addition, over two years ago, Canada extended virtually unrestricted access for imports from least developed countries.

Canada also supports the development of an international arrangement on forests. Canada’s forest resources amount to 10 percent of the world’s forests and are a tremendous gift of nature to the country, which recognizes that with this gift comes a corresponding responsibility. Mr Emmet emphasized that Canada is, and will continue to be, a more than responsible steward of its forest resources. The world has a right to expect this of Canada and, in turn, Canada has the right to expect that other nations will not take advantage of this good behaviour by failing to meet their own responsibilities.

It is understood that Canadian forest practices matter to the rest of the world in an important way and vice-versa.

About 15 years ago, Canada and other nations began to work hard in developing and implementing an international agreement on forests. It is Canada’s view that a strong, legally binding commitment is the best way to facilitate the necessary political commitment to advance the profile of forest issues, increase finances, achieve higher priority on the agenda of development agencies and that of the Government, internalise global forest goals, and accelerate on-the-ground action in support of sustainable forest management. There is a reality here that needs to be recognized, which is that a consensus on a legally-binding initiative has yet to be established and Canada supports non-binding options such as quantitative goals, a code of conduct, certification and the possible role of voluntary peer reviews.

For corporations, there are also opportunities for social and economic development through policies and practices that are socially responsible. Forest practices in Canada and around the world have changed tremendously over the past generation or so. A Canadian company, TEMBAC, provides a good example of socially responsible practice. This company recently received an award from the Conference Board of Canada for having created regional advisory committees that give community representatives a voice to influence the company’s future and help to find a better balance between the needs of communities and those of the company. These committees are composed of representative of first nations and there are also regional people, NGOs, unions, companies and members of the business community. The role consists of advising and making recommendations on a wide range of issues and also management of the company’s environmental, community and scholarship funds. An aboriginal relations unit was also created in the forest management group to support employees in developing good relationships with aboriginal communities in TEMBAC’s areas of operation. This has made it possible to build sound business relationships to support aboriginal communities, which is an important priority of the Government of Canada.

There are other ways that well-managed forests can support economic and social development. As the market for CO2 emissions trading develops, states and companies can invest in upgrades for industries facilities, both domestically and internationally, that would reduce carbon emissions and implement afforestation projects that would produce carbon credits. The local community benefits from efficient technology while the investor can benefit from selling carbon credits. This is a great example of Dr Bruntman’s exhortation to think globally and act locally.

These ideas and possibilities can lead to better conditions in an economic and social sense as well as a better management of forests. It is a win-win situation. To conclude, Mr Emmet pointed out that gatherings such as the present meeting provide a forum for the continuing advancement of forestry communities’ common goals. He encouraged all participants to make the most of this opportunity.

Mr Avrim Lazar, President and CEO of the Forest Products Association of Canada and Chair of the International Council of Forest Products Associations (ICFPA), welcomed the participants and thanked the Government of Canada and the Canadian Forest Service, for having made it possible for the Committee to meet in Vancouver and for welcoming the Food and Agriculture Organization of the United Nations (FAO) into Canada. Mr Lazar also expressed appreciation to FAO for seeking the input of the private sector and for ensuring that these consultations are not simply a formality but a genuine exchange of views. Mr Lazar then recalled that on 30 May a full day of International Council of Forest Products Associations Annual Meeting had been held. One of the things evidenced was how much the industry’s priorities overlap with those of the UN, especially FAO’s. Discussions were held about best practices in plantations, best practices in sustainable forest management, promoting certification and best practices to developing countries and the role of the forest sector in alleviating poverty. Importantly, discussions focussed on how to combat, and not merely address, illegal logging. It is not surprising that the private sector has such productive relations with FAO because so many of the concerns of the private sector also are the concerns of FAO. Mr Lazar concluded by wishing participants an informal and productive session for the rest of the day.

Subsequently, Mr Wulf Killmann, Director, Forest Products and Economics Division, FAO, welcomed the participants on behalf of Mr Jacques Diouf, Director-General of FAO. He expressed FAO’s gratitude to the hosts, the Government of Canada and the Forest Products Association of Canada, who so kindly invited the Committee to hold this Forty-Sixth Session in this beautiful city of Vancouver. He also thanked Mr Avrim Lazar, President and CEO of FPAC, and his team, for the excellent organization of the meeting, and, last but not least, expressed his gratitude to the participants, for serving on the ACPWP and advising FAO.

Mr Killmann mentioned that 2005 was a year which had seen increased activity in the forestry sector. In February, the Kyoto Protocol and its Clean Development Mechanism finally entered into force, and in late November/early December the first Meeting of Parties, the so-called COP- MOP, would be convened in Montreal. In March, FAO had hosted in Rome a Ministerial Meeting on Forestry Issues and the 17th Session of the Committee on Forestry. The discussions for a new International Tropical Timber Agreement are ongoing. During the preceding two weeks, delegates had attended the 5th Session, which concluded the United Nations Forum on Forests, and in August IUFRO would hold its World Conference in Brisbane.

In his recent report: “Towards Larger Freedom”, UN Secretary-General Kofi Annan deplored the fact that, despite substantial progress in the formulation and implementation of national forest policies, deforestation and forest degradation continue at an alarming rate. He stressed the critical role of forests in achieving the Millennium Development Goals, noting that nearly 1.6 billion people depend, to varying degrees, on forests for their livelihoods

In September 2005, the UN General Assembly would review progress made during the past five years towards achieving the eight Millenium Development Goals. Whilst the important environmental contributions offered by forests are generally recognised, their social and economic role is often overlooked. The sustainable management and use of forests not only contributes directly to attaining MDG 7 (conservation of natural resources), but also to goal 1 (poverty reduction, food security) and, indirectly, to most of the others. The increasing acceptance of the social and economic role of forests also became the Leitmotiv for the latest issue of the State of the World’s Forests, which was published just three months previously.

The private sector too was looking afresh at the link between the social and economic aspects of its work. An example of this was the inclusion of corporate social responsibility as an Agenda item for the forthcoming International Forest Products Summit and the CEO- Roundtable.

In the past, discussions in these international fora were, to a great extent, led by government employees. However, as we all know, civil society and the private sector are major actors in the drive for more sustainable management of the world’s forests.

Therefore the private sector is increasing its participation and visibility in these international forestry fora, as was seen at the recent COFO and UNFF sessions. Earlier in 2005, FAO’s Forestry Department sought advice on its work from two different panels. Representatives from the private sector participated in both panels, reflecting the importance FAO attaches to this collaboration.

Mr Killmann recalled that the meeting agenda provided for special discussions on the Code of Planted Forests, the Code of Corporate Responsibility, Emissions Trading, and Future Fibre Supply.

All these issues involve and directly affect the private sector. Some of them provide opportunities for governments, non-governmental organizations and the private sector to develop partnerships and joint activities. FAO was looking forward to acting as a forum for discussion and as a neutral facilitator to promote this collaboration.

For the benefit of participants unfamiliar with the work of the Committee, Mr Killmann reminded the participants that the Committee’s role is to provide advice to FAO on its programme in the fields of forest industries and paper. The annual sessions are thus especially important since the recommendations presented by Committee members help us to direct our work for the year to come.

Though sessions of the Committee are not open to the public, experts in the sector are welcomed and FAO looks forward to their comments and suggestions.

In two inter-sessional meetings during past year, discussion had taken place on how to further strengthen the mutual relationship and increase the benefits generated by debate, for both the private sector and FAO. It was agreed to sharpen the focus, reduce lecturing and allow more space for discussions. Mr Killmann called on the participants to experiment this new approach at the present meeting.

Mr Killmann concluded by encouraging the participants to express their ideas and suggestions in a frank and open manner so as to contribute to the recommendations which will be put forward, and to take full advantage of the opportunity offered by this session to meet and exchange ideas with colleagues from other regions of the world.

Item 2. Adoption of the provisional agenda

The Agenda was adopted (Annex 2), with the proposal to move items 4 and 5 to 13:30, item 6 to 10:30 and item 8 to 14:00 hrs.

Item 3. Review of actions taken by FAO on the recommendations made at the 45th Session of the Committee

Mr Killmann presented the progress made by FAO in implementing the recommendations of the ACPWP at its 45th Session (page 21).

Mr Armando Cafiero, Managing Director of ASSOCARTA, reported on the main results of the side event jointly organized by ICFPA, WBCSD and FAO during the 17th Session of the Committee on Forestry – COFO, held in Rome from 15 to 19 March 2005. Over 40 experts from around the world participated in the meeting, representing Governments, international organisations such as the World Bank and the UNFF and many industry colleagues. The objectives of the meeting were to inform on certification status and key challenges, to raise awareness of the private sector’s contribution, to share some experiences being developed around the world and to discuss the private sector in the phased approach to certification. To achieve these objectives, four outstanding presentations were made: a leading paper presented by Markku Simula, followed by a presentation by Mr Paul-Emmanuel Huet, Secretary General of ATIBT on the Pan-African certification initiative. Mr Tham, Director of the Malaysian Timber Council’s London office, then presented the Malaysian initiative to promote SFM and certification. Finally, Mr Boris Tabacof, ACPWP Chairman, presented the experience, progress and results from South America, in particular Brazil. Mr Cafiero recalled that forest certification has increased greatly around the world in recent years. In 2004, more than 220 million hectares were certified, but this still represents only 6% of the total forested area in the world. Out of 220 million ha certified, 95% is in North America and Europe and, over the years since certification began, it is clear that the other continents still do not account for more than 10% of the total certified area. Against this background, the presentations showed that the main challenges faced in advancing certification in developing countries would appear to be the shortage of qualified human resources, the inadequate regulatory and political framework, including instability and poor governance, and the lack of natural certification and accreditation services. The message shared with the audience on behalf of ICFPA is the same as the one presented at COFO during ICFPA’s intervention, which is that the private sector is definitely part of the solution for SFM, that good governance and law enforcement and capacity building are necessary to ensure sustainable forest management, that a diversity of approaches to SFM exist and all certification schemes aim to improve practices and therefore should be supported, and that a basic approach and similar concepts have to be accepted and promoted. Mr Cafiero recalled the need to re-assess the sustainability impact of public procurement policies.

Mr Killmann reminded the meeting that this had been the first time that the private sector had been given the floor at a Committee on Forestry (COFO) Session and expressed the hope that this practice could continue in future. He also mentioned that in 2006 – as always, in alternation with COFO –the Regional Forestry Commission meetings will be held. He proposed that, if this proves possible, representatives of the private sector should participate and take the floor at all the Regional Forestry Commission sessions, to ensure that more private sector concerns and ideas are brought into the discussions. There is certainly still space to increase the communication between the private sector and FAO and, at the end of the day, in many countries it is the private sector that manages the forests and the processing of the products. Mr Lazar requested the list of the Commissions and dates and indicated that ICFPA would prepare messages and identify representatives to attend each meeting. It was therefore agreed that the dates and venues of next year’s sessions would be distributed.

Mr Killmann then referred to other FAO activities not directly addressed through the recommendations process:

• Forest Resources Assessment Process. Every 10 years, FAO produces an assessment of the forest resources of the world, based upon reports through national correspondence from the countries. The last was done in 2000, so the next would be ready by the end of 2005;

• Forest Products Yearbook is produced annually. In 2005, it was intended to produce also a graphics-only glossy summary;

• Forestry and forest products country information available on FAO website;

• Forest Sector Outlook studies for Europe and Latin America. The Outlook Study for West and Central Asia was under preparation;

• Logging code of best practices: one has been developed for Central and West Africa, another would be undertaken for tropical forests of South America;

• Economics of sustainable forest management;

• Start-up of a major project in the Congo Basin countries, Democratic Republic of the Congo, the Republic of the Congo, Cameroon, Gabon, Equatorial Guinea and Central African Republic, looking into the role of non-wood forest products (NWFP) in the food security situation of these countries. This activity will proceed for several years;

• Training sessions on climate change issues for foresters in Latin America, Africa and Asia. Support is also provided to the Intergovernmental Panel on Climate Change and the Secretariat of UNFCC on technical issues.

Finally, FAO hosts a number of Secretariats. The Collaborative Partnership on Forests (CPF) is part of the international arrangement on forests (UNFF) and FAO chairs and hosts the Secretariat. FAO also hosts the National Forest Programme Facility, a funding mechanism which is an information initiative created in response to recent intergovernmental dialogue on forests and which recognizes the essential role of national forest programmes in addressing forest sector issues.

Item 4. Code on corporate social responsibilities

Mr Lazar informed the Committee that ICFPA will address the issue of corporate social responsibilities.

Item 5. Code of best practices for planted forests

Mr Luis Leal, Director General of the Portuguese Pulp and Paper Association, presented a progress report on the development of the code and future activities planned for its completion.

He explained that the objective is to introduce a Code of Best Practices for Planted Forests to provide the framework to balance the economic, cultural, social and environmental dimensions of planted forests in supply of wood, fibre, non-wood products and services, whilst contributing positively to sustainable forest management, integrated land-use and livelihoods.

The Code of Best Practices for Planted Forests as proposed will complement and supplement, without detracting from, the different forest certification schemes in existence.

It is important to note that certification of planted forests has occurred generally in industrialized (developed) countries. However, 80% of planted forests globally are in developing countries or those with economies in transition, which often have difficulty in achieving standards or do not have the resources to obtain certification. Rapid expansion of area and impact of planted forests & plantations, industrial or non-industrial, amounts to approximately 4.5 million hectares per year. There is a need to learn from both negative and positive experiences in planted forests, so as to make a greater contribution to planted forests in the cultural, social, environmental, economic and technical areas.

It is important to demonstrate greater accountability and improve international reputations. Other issues are: the need to demonstrate compliance with best practices in planted forest management for market access – certification, as well as alienation from traditional lands & uses of natural resources, land-use conflicts, traditional, tribal, customary land and cultural attachment, and First Nations which are often marginalized from main plantation development. Furthermore, First Nations’ land & land-use rights should be properly recognized & respected, and they should be increasingly involved in participatory planning, implementation & investment.

It was recalled that planted forests are a source of rural employment and that they can complement and support agriculture, livelihoods and sustainable land-use. On the one hand, planted forests can be developed for high productivity of wood, fuelwood, fibre and non-wood forest products in monocultures, and, on the other hand, there could be flexible and diverse species approaches of smallholder, trees outside the forests and agroforestry.

Smallholder, social, community, farm forestry, and agroforestry mechanisms are important for growing planted forests and trees – in accordance with people’s needs. Plantation forest management is as much about people and livelihoods as it is about management of trees and forest products.

There is a strong trend globally for the private sector (corporate and smallholder) to invest in planted forests. Corporate knowledge of germplasm, silviculture, markets, trade, funds, etc, is superior, whilst smallholders have land and labour but lack this knowledge.

Greater covenants are needed for improved social and environmental responsibility – whilst corporate boards and shareholders pressure for greater profitability. Large scale planted forests can face complex social issues – they can alienate local communities from land that has traditionally provided goods and services.

Mr Leal concluded by briefing the Committee about the next steps to follow in the development of the Code. A task group, consisting of collaborating partners/planted forest specialists, will continue its work. Following the roundtable exercise to evaluate needs, detail objectives, identify target beneficiaries and elaborate on the scope, contents and process in preparation of the Code of Best Practices for Planted Forests, which was held on 20 January 2005, a concept note based on a scoping meeting and co-opting additional partners will be reviewed. In addition, a draft outline of the Code would be prepared, taking into account existing processes and documentation. A second collaborating partner meeting would be organized, including co-opted members, with the aim of reviewing the advanced outline, would be held in mid June 2005. Based on this, the draft Code of Best Practices for Planted Forests would be prepared and shared with collaborating partners for feedback.

A second draft of the Code would be developed and an International Stakeholder Workshop would be held, in order to introduce and review the Code, prior to its presentation to the FAO Regional Forestry Commissions in 2006.

Item 6. Emissions trading

Mr Peter Vis from the European Commission presented the challenges and opportunities of emissions trading. Mr March Stuart from Eco-Securities presented the process and examples of forestry projects under the Clean Development Mechanism, and Mr Dirk Brinkman, from Brinkman & Associates Reforestation Ltd talked about the carbon trade in the forestry sector.

Item 7. Future fibre supply

Dr Gary Bull from the Faculty of Forestry, University of British Columbia and Professor Sten Nilsson, Deputy Director and Forestry Program Leader at the International Institute for Applied System Analysis, presented a global wood supply analysis describing the need to improve information on availability of fibre supply.

Item 8. Recommendations of the Committee to FAO for 2005-2006

The Committee proposed the following recommendations to FAO:

(a) The Committee recommended that FAO further enhance its assistance to developing countries in implementing forest certification, inter alia through FAO and ICFPA representations to other relevant UN organizations in support of developing countries’ implementation of certification;

(b) The Committee urged FAO to continue and enhance its efforts to promote inclusion of the ICFPA in international processes discussing sustainable forest management, including but not limited to WB/WWF and UNFF.

(c) The Committee further recommended that FAO continue to help clarify the role that the private sector can play in combating illegal logging and to assist in finding an appropriate definition for it;

(d) The Committee also recommended that FAO continue its work on the code of best practices for planted forests, with strong input from the private industry sector.

(e) The Committee recommended that FAO help to co-host with ICFPA a global seminar on energy dynamics and its impact within the paper and forest sector;

(f) The Committee further recommended that FAO work with ICFPA to seek opportunities to document the social and economic contributions made by the industry;

(g) The Committee agreed to hold its 47th Session in Rome, on 28 April 2006.

Item 9: Date and place of next session

The Committee proposed to held its 47th Session in Rome, on 28 April 2006. [Subsequently, it was agreed to push the date of the meeting back to 6 June 2006.]

Item 12. Closing remarks

Mr Killmann thanked all participants and the Forest Products Association of Canada for having hosted this meeting and declared the 46th Session of the ACPWP closed.

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