Lesser Know Timber Species

 

Photo: Mark van Benthem

Lesser Known Timber Species (LKTS) are globally underutilized species of timber. LKTS are emerging more than ever as a major challenge for the timber industry, requiring a proactive response to regulatory developments, sustainability imperatives, and increasing demands for species diversification. LKTS will be a returning rubric in this newsletter.

This time we provide the context for LKTS and in the next newsletters, everytime a LKTS species will be presented, kicking off with Pucté in the first 2024 newsletter. Firstly, the increasing rate of listings tropical timber species in Appendix II of CITES highlights the need for the industry to adapt quickly to the growing diversity of species to be processed. This diversification, driven by ecological concerns and sustainability imperatives, requires in-depth consideration of the identification, processing, and promotion of the resources used.

Furthermore, in the context of the next generation of forest management plans – the first generation of which is ending – the use of LKTS species is becoming a central issue. Decisions taken in this context will have long-term repercussions on the sustainability of the timber industry and its impact on forest ecosystems. New legislation, such as that currently in force in the Republic of Congo, adds a further layer of urgency by encouraging those involved in the sector to pay particular attention to this issue.

Against this backdrop, where environmental issues and the sustainable management of forest resources take center stage, various projects have emerged in recent years to address the LKTS issue. The member companies of the Fair&Precious collective have all undertaken more or less isolated initiatives. For example, the effective promotion of Gombé in Gabon has been positive. In addition, ATIBT’s initiative in Cameroon to identify and promote species of interest on the markets illustrates the need for a proactive and coordinated approach.

ever, to move forward meaningfully, it is imperative to put in place a real strategy, characterized by increased collaboration between wood processing industries and forestry companies committed to certified sustainable forest management. This collaboration is crucial to ensuring the responsible use of tropical wood through LKTS species, by aligning industrial practices with the objectives of conserving natural resources and preserving forest ecosystems.

 

Chemical analysis tools have timber tracing potential

 

Multi-element analysis has the potential to be developed into a timber tracing tool to help combat illegal trade. That’s the conclusion of a recent project undertaken by an international group of researchers who collaborate via Timtrace, a Dutch-based operation that develops and tests methods to verify the claimed origins of timber.

The Timtrace report says that tracing has become more important than ever, as regulation internationally seeks to ensure timber trade legality to combat deforestation. “Legislation, such as the EU Timber Regulation (EUTR) and the incoming EU Deforestation Regulation (EUDR) require documents and certificates of origin. Yet, these can be falsified. Therefore, it is important to independently verify the origin of wood, based on the properties of the material”, states Timtrace. “These methods can help timber traders to support the paper trail showing they source timber legally and create transparency in their value chain.”

Multi-element analysis, says the research project report, involves measuring a large number of elements, such as magnesium, calcium, and lanthanum, simultaneously using mass spectrometry. Based on this elemental analysis, an ‘origin-specific fingerprint’ is defined given that the chemical composition of plant material, such as wood, varies according to local environment and soil chemistry. The most likely origin of a sample can be determined by comparing the chemical fingerprint to an established geo-referenced dataset.

“This can help to answer two relevant tracing questions: origin verification and assignment”, says the report. “The verification question addresses whether a wood sample came from a certain (claimed) origin. The assignment question addresses which location a wood sample most likely originated from in case the sample origin is entirely unknown.”

Multi-element analysis has been shown to work for the assignment and verification of a range of commodities, including vegetables, bananas, and tea. However, the chemical composition of timber is more complex and the method had not previously been tested sufficiently across different countries and wood species. The research project looked at its applicability to three economically important species, tali and azobe from Central Africa and red meranti from Borneo.

“We first analysed whether the two timber species from Central Africa shared their variation in elemental composition across the study region”, says the project report. “Then we developed classification models for all timber species based on the elemental composition, addressing both origin verification and assignment accuracy.” The researchers assessed whether wood elemental composition correlated with soil variables that affect element uptake and lastly simulated a real-life tracing case by applying classification models to a set of blind samples, to determine their most likely origin.

In Central Africa, tracing accuracy was 86%–98% for regional clusters of chemically similar sites, with accuracy depending on the tracing question. These clusters were 50–800 km apart and tracing accuracy was highest when combining the two timbers. The tracing accuracy of Red Meranti on Borneo was 88% at site level. The researchers state that further evaluation in the use of this approach with wood is needed, with reference databases covering wider geographic areas and representing more species. But their first project results are considered a success. “Overall, these results illustrate a high potential for multi-element analysis to be developed into a timber tracing tool which can identify the origin for multiple species and can do so at a within-country scale”, concludes their report.

 

 

Ghana to issue FLEGT Licences in 2024

 

 

Ghana is set to start issuing Forest Law Enforcement Governance and Trade (FLEGT) licenses for exports to the EU and UK in 2024. The news came out of a September meeting in Brussels of the Joint Monitoring and Review Mechanism (JMRM) body for the country’s FLEGT Voluntary Partnership Agreement (VPA) with the EU. The JMRM is a bilateral platform to track the progress of the VPA, which, when fully implemented to the satisfaction of governments of both the EU and Ghana, enables the start of licensing.

The meeting agreed on a joint action plan, setting out the final steps to be taken to ‘complete Ghana’s readiness to issue FLEGT licenses’. According to Forestry Commission of Ghana Director Chris Beeko, this involves Parliament giving the green light to the ratification of Timber Utilisation Contracts. These are entered into by timber rights holders and the Ghanaian Ministry of Forestry and must be ratified by Parliament to comply with legal requirements. This process is anticipated to be completed by the year’s end before Parliament rises. The JMRM will then convene to document this and issue a communiqué on the completion of the Ghana FLEGT licensing readiness process. “This is tentatively scheduled for February 2024”, said Chris Beeko, adding that “the communique on Ghana’s readiness will trigger the processes in the EU to list the Ghana FLEGT license in their systems [as the next step] towards the start of licensing”.

In the EU, under its new Deforestation Regulation (EUDR), FLEGT licenses will be accepted as proof of Ghanaian timber and wood products legality. Under the UK Timber Regulation, FLEGT licenses from Indonesia, the only country so far to issue them, exempt its timber from further import legality due diligence. They are also accepted as proof of legality and sustainability under UK government procurement policy. The same is expected to be the case for Ghanaian licenses.

“We are currently moving forward with a transposed agreement, so there can be a Ghana-UK FLEGT VPA”, said Chris Beeko. “With this, a similar treatment of the FLEGT license as pertains under the EU agreement will apply to the UK market. Discussions are underway to initial this before the end of November.” Ghana signed its VPA with the EU in 2009. It committed the country to establishing a nationwide Timber Legality Assurance System (TLAS) to ensure that timber products comply with national laws and regulations.

The VPA also entails Ghana promoting sustainable forest management and measures for the preservation of forest ecosystem services, such as carbon storage and protection of soil and water quality and biodiversity. Other aspects include the improvement of forest and timber sector working conditions and the involvement of local communities in forest management decision-making.

According to the Forestry Commission of Ghana, the VPA also increases transparency in the forest sector and ‘stimulates continuous improvement in forest governance’. “It galvanises stakeholders around a common objective of timber legality and sustainable forest management”, says the Commission. “It has enabled an inclusive approach to policy-making and promoted ownership of forest policy, [leading] to a transformational shift in the forest sector regulatory environment.”

The end result is a consolidation of Ghana’s position as a ‘front runner in combatting illegal logging to ensure legal and sustainable timber supply for both domestic and international markets’.

 

‘

ATIBT’s expansion in South- and Central America

 

In a significant development in the growth and geographic spread of ATIBT’s international membership network, it has signed up three South American forest management and timber organizations. They are ATIBT’s first members outside Central Africa and have also become partners in its international Fair&Precious tropical timber marketing and communication campaign.

One of the new members, Mil Madeiras Preciosas, based in Itocoatiara in the Brazilian state of Amazonas, is a subsidiary of the Swiss-based Precious Wood Group. ‘Mil’ was established in 1994 and has a mission to not just succeed as a timber business, but ‘through forest management in the Amazon, improving people’s quality of life through rational, sustainable use of natural resources. The mission statement says: “The group believes in raising awareness and through education, promoting knowledge in society about the value of responsible consumption of forest products”. In 1997, the company became ‘the first indigenous forest management company in Brazil to obtain FSC certification’. It also holds PEFC-accredited Cerflor certification. “We strongly support the intention of ATIBT to not only represent tropical timber from Africa but from other continents too. Thus, it was a logical consequence that Mil joined ATIBT when we heard it wants to expand its activities in Latin America” said Markus Pfannkuch, co-chief executive of Precious Woods.

The second new ATIBT member and F&P partner is Maderacre, which manages 220,000 hectares of natural forest in Tahuamanu, Madre de Dios, Peru, and supplies a range of timber and wood products to international markets. Its forest management has been FSC-certified since 2007 and is part of the Madre de Dios REDD project. Its plant in Iñapari produces decking, flooring, finger-jointed, and other dimensioned goods, and its species range from Cumaru and Jatoba to Ipe and Garapa. In total, it has identified more than 150 species of commercial interest in its concessions.

Maderacre’s commercial manager Jose Canchaya sees joining ATIBT as helping reinforce its message about the value of sustainable forest management. “It is a proven solution to fight against deforestation and climate change, but this is not well disseminated around the globe”, he said. “We think ATIBT can help us to make more people understand the best way to conserve the tropical forest is to use it in a responsible way and create formal jobs. We have been working in the Amazon for 21 years and have many studies and learned lessons that can help to spread the benefits of sustainable forest management. In the environmental services field, by now we have 15 years of experience developing carbon credit projects in a productive forest.” He added that Maderacre’s values also align with those of Fair&Precious. “Fair&Precious is gaining recognition as a label that promotes sustainable forest management beyond conservation. A thriving local community is at the centre of all its efforts. This is something we strongly promote as well and we would like to include the Amazon Rainforest in the brand’s scope and mission.” Further underlining the ATIBT’s focus on strengthening ties with South- and Central America is its engagement with projects to further develop the sustainable forest management of the Selva Maya Forest by indigenous and other community operations in northern Guatemala and the Yucatan Peninsula in Mexico.

The third South American ATIBT member is the Association of Wood Exporting Industries of the State of Pará  (AIMEX). This association, founded in 1981, supports the link between public authorities and timber exporting companies. Currently, the association has 23 members. The objectives of AIMEX are fivefold: (1) To encourage the sustainable, rational and balanced exploitation of the forest through the autonomous forest management plan as a basic condition for the sustainability of the forest resource so that the wood-forest sector is a vector of sustainable development of the economy, (2) To associate the conservation of the vegetation cover and the benefits derived from it, with the generation of employment and income, contributing to a standard of living compatible with the natural wealth of the region, (3) To serve AIMEX members involved in the tropical timber trade, maintaining order, structure and ethics in the world market, (4) To promote the wood species of the State of Pará and to defend the interests of the forestry wood sector in public and private policy issues, (5) To provide products that meet the latest standards of sustainability and legality, complying with laws, such as those contained in the FLEGT (Forest Law Enforcement, Governance and Trade) and the European Timber Regulation (EUTR), as well as the standards established in commercial contracts.

Furthermore, the Rainforest Alliance has been involved in initiatives to secure rights of tenure and strengthen the technical capacity and sustainability of forest operations through certification in both countries. They claim to have now attained a level ‘to access more responsible markets and maintain sustainability’. Consequently this June it organised a trade mission ‘to find ways of improving the marketing of timber from Mexico’s certified community forests’. Among the participants were ATIBT and its members Probos and Precious Woods. They held ‘intense and constructive’ talks in Tulum, Mexico with representatives of community forest operations, called Ejidos, before spending several days visiting the Selva Maya forest in Mexico and Guatemala. Among the recommendations from the mission were the establishment of a regional forest and timber association and a marketing strategy around the Wood of Selva Maya.

Added impetus for tropical timber promotion

 

The Fair&Precious (F&P) sustainable tropical timber promotion and communications program gained a further four partners in the first half of 2023. The F&P campaigning ‘collective’, which was launched by ATIBT to raise international awareness of the environmental, social, and economic value of a sustainable tropical forestry sector and the technical and design potential of tropical timber, now has 43 partners, a mix of businesses and industry, research and consultancy organisations.

One new partner is French bespoke door and window manufacturer Millet. The 77-year-old company prides itself on retaining traditional joinery craft skills, while combining these with the latest production technology, and also highlights its commitment to minimising its environmental impact. “I entered the company with the ambition to show that we can do business differently and innovations we invest in contribute to sustainable development, which is as important to me as the growth of the group“, said Managing Director Fabrice Millet. The company’s environmental policy includes sourcing certified sustainable raw materials. “Working with certified wood producers is a requirement, not an option” it states. “For us, forests are a precious asset, essential for regulating climate and biodiversity. It is a matter of managing the forest sustainably, not damaging it during harvesting, and conducting applied research to better understand and manage forest dynamics.”

The European Parquet Industry (FEP) says it has joined F&P as the latter’s ten environmental and social commitments align with its values and the messaging of its own Real Wood campaign. This is aimed at growing the market for real wood flooring, which it claims to be not just aesthetically superior to other materials, but to have stronger environmental credentials. “The ecological advantages of real wood as a floor are undeniable. Far less energy is used in the extraction, processing, and disposal of wood than with any other building material” states the campaign. “It is recyclable, and the carbon-storing properties of wood products play a significant role in reducing greenhouse gas emissions.”

Another new F&P backer is Eticwood, the international Belgian tropical and agroforestry consultancy, services, and solutions specialist, which provides advice and technical assistance to partners via offices in Europe and Africa. The forestry projects it supports are focused on the ‘economic and social empowerment of communities’ and implementation of sustainable development initiatives, which also integrate climate issues and maintain biodiversity.

Alongside, Ecocoa, a Belgian artisanal chocolate producer, co-owned by Eticwood and Durwood, has also taken up an F&P partnership. The company’s catchline is ‘from bean to bar’. It uses only verified sustainable cocoa bean sources with full traceability and, by limiting intermediaries in the supply chain, says it can offer fair remuneration to producers. “Our short chain allows us to increase the producers’ income without charging the final consumer a high price”, says Ecocoa.

 

F&P is increasing activities in the US

 

A new strategy has been launched to raise awareness of and grow support for the Fair&Precious (F&P) tropical timber promotional campaign in the US

F&P founder, the International Tropical Timber Technical Association (ATIBT), has appointed US-based Nathalie Bouville as the focal point consultant for the project. She’s tasked with cultivating interest in the campaign and encouraging US organisations and companies to join and become partners. “My role centers on formulating a growth strategy tailored to the USA market and steering this initiative to bolster membership engagement”, she said. The pivotal moment to date in the communications effort was the presentation of ATIBT and F&P at the World of Wood Convention held in Charlotte, South Carolina, in April 2023. “The event, organized by the International Wood Products Association (IWPA), provided a prime opportunity to showcase ATIBT and to present the distinctive features of the F&P platform”, said Ms. Bouville. “Building on this foundation, I am proactively engaged with a specifically targeted group of tropical wood importers via email, phone calls, and webinars, to introduce them to the value of F&P. The aim is not only to facilitate familiarity but also to cultivate a dynamic community of tropical wood importers integrated into the ATIBT/F&P ecosystem.”

She reports that, while most US importers are familiar with Latin American wood types, they are less knowledgeable about African species and their properties. “They are not used to dealing with Africa, especially the francophone central region”, said Ms. Bouville. “Some might even have negative preconceived ideas about African timber, so they are curious to learn more. They want support to identify new sources of supply, help in understanding legal frameworks, and in general how to do business in these unknown territories.”

 

The American tropical timber market is reported traditionally to have been price-led and focused on ensuring transactions are legally sound. “The notion of sustainability up to very recently was not necessarily seen as a priority”, said Ms. Bouville. “But the climate crisis and the need for a drastic change in environmental practices has finally hit the American public and therefore the business world has to adapt to it. There is an increased pressure to green all business sectors and I can testify from my interactions with importers that sustainability will be top of their list in the future. I am optimistic, therefore, that they will see the benefits of joining ATIBT and F&P. Furthermore, the new CITES listings which will restrict imports of ipe and cumaru and the general narrative about tropical wood from the Amazon can be seen as a market opportunity for wood from other regions, contributing further to a more sustainable timber market in the USA.” ATIBT is also sharing its market resources and insights on the African tropical timber sector with the IWPA and the organizations are in the process of signing a partnership agreement. They have already had several joint meetings on CITES topics.

 

Fair&Precious Partners in the spotlight: Eticwood

 

In the latest of our interviews with Fair&Precious partners, the STTC/F&P Newsletter talks to Jerome Laporte, Founder and Director of tropical forestry and agroforestry consultant and solutions provider ETICWOOD  

STTC/F&P: How would you describe ETICWOOD, who you are, what you do, and what you stand for as a  business?

Jerome Laporte: ETICWOOD is a consultancy focused on sustainability in tropical forestry and agroforestry. Through advice, expertise, and technical assistance on the ground it aims to provide sustainable, inclusive solutions to the climate crisis and biodiversity erosion.
Eticwood comprises a team of dynamic engineers, supported by a network of international experts. It sees itself as an explorer and developer of innovative solutions, that align ecosystem productivity, the well-being of local populations, and the competitiveness of companies to preserve natural environments.  The economic and social empowerment of communities and the implementation of sustainable development initiatives in agriculture and agroforestry are among our ongoing concerns.  Eticwood is also committed to playing an active role in implementing the solutions proposed to customers. As such, teaming up with DURWOOD, it created the ECOCOA chocolate factory to produce zero deforestation, sustainable, and fair fine chocolate from cocoa beans from ETICWOOD’s field projects. Thanks to ECOCOA, ETICWOOD not only provides advice and technical assistance to forest communities involved in cocoa, but it also helps give value to their production at a fair price while guaranteeing and promoting its origin.

 

STTC/F&P: Why did you become a Fair&Precious partner?

JL: Fair&Precious promotes sustainable and responsible business practices, which can enhance the reputation of our companies as supplying environmentally friendly, fair-trade brands. As a member, our companies should be able to establish relationships with like-minded businesses, which can support our growth. Fair&Precious also encourages transparency in supply chains, which can help our companies  improve the quality of our products and services and build customer trust.

 

STTC/F&P: Is enough being done to communicate that use of sustainable tropical forest products can benefit people and the climate?

JL: Social and environmental positives of tropical products are increasingly understood by consumers. As one of the main selling points we highlight that  “eating our chocolate helps to protect elephants and gorillas living in Africa’s rainforest, while providing jobs to remote communities”. That said, ETICWOOD’s field projects and ECOCOA are still small and  niche and we need to upscale.

At the same time, tropical goods bashing is still prevalent and many are still associated with deforestation and/or low social standards. Therefore, intensive communications campaigns have to take this on and promote success stories. We also believe a private agroforestry certification process, ensuring zero-deforestation, should be created to increase visibility and credibility of these goods. It is critical too that public donors  support local zero-deforestation commodity field projects, such as the responsible cocoa initiative ETICWOOD and Pallisco undertook in Cameroon backed by AFD, the French Development Agency. Furthermore, the introduction of the EU Deforestation Regulation (EUDR) means added  support needs to be provided to companies like ours, so it’s not just the most powerful businesses that remain competitive and able to keep selling to Europe.

I believe that the timber industry (possibly through the ATIBT and F&P) should also develop communication initiatives on FSC and PEFC certification to ensure and highlight that they retain value in the framework of the EUDR.

 

STTC/F&P: Can sustainable tropical forest products compete on price?

JL: Competing on prices is a tricky debate and depends often on business strategy. For example, ECOCOA’s chocolate is high-quality made from responsibly sourced, traceable cocoa, while our selling price is still comparable with, if not lower than that of other chocolates made from lower-standard cocoa in environmental and social terms. We would not source products or employ people at unfair rates, and we also believe that the products and services we sell must be affordable and not only for the elite. We don’t believe the two are mutually exclusive. It is just normal practice for us to ensure the fair origin of our goods and the good labor conditions of our workers and partners, while regulations such as the EUTR and EUDR exist to take care of unfair actors who might otherwise undercut ethical suppliers.

What we also see is the market becoming increasingly sensitive to ‘storytelling’. Consumers want to know what they have on their plate and where it comes from. Even the most concerned consumers may be unwilling to pay a premium to ensure the origin of tropical forest products, but at the same time, they may look to alternatives if unconvinced about the social and environmental claims of goods.

 

STTC/F&P: You are involved in the forestry/timber and cocoa sectors. Do you see these as compatible and complementary businesses in developing tropical countries?

JL: In the current context of developing tropical countries and especially in our remote working areas, with poor public services, where the economic development of an entire region relies often only on local timber companies, compatibility between forestry and agroforestry will become one of the key aspects of tomorrow’s forestry. Strategic partnerships between companies active in both sectors will help alleviate the pressure on timber companies from rapidly growing local populations around their concessions who are legitimately looking for economic opportunities.

ETICWOOD tested and implemented this compatibility with Pallisco in Cameroon while developing a sustainable cocoa sector with different communities around their concession. The outcomes are very promising in terms of capacity building of cooperatives, job creation in remote communities, and adding value to existing cocoa plantations. If the project was upscaled, we’d expect other significant outcomes. These include new business line developments for timber companies through the provision of services in line with the cocoa chain of custody and the establishment of carbon projects. It might also be possible to combine trees and cocoa fields (such as in Central America) to mitigate decreasing forest productivity in second and third rotations.

 

STTC/F&P: What would be your sales pitch for tropical timber– and for verified sustainable cocoa?

JL: To protect the forest, use wood, save the elephants, eat chocolate!

 

STTC/F&P: Are you optimistic about the future of the tropical timber sector?

JL: Definitely… but the right conditions must be met. As well as workshops and publicity we need support from public donors for real field actions.

 

Film focuses on sustainable management social benefits

 

Photo: World Bank

The third in a trio of films from ATIBT on sustainable tropical forest management focuses on its social impacts, with input from local people, civil society and logging company workers.

‘For the well-being of the population’ was shot in the Congo Basin, where the forest stretches across six countries, covers 2.5 million km2 and supports the livelihoods of 75 million people. It is also, of course, an area rich in resources, home to major industries including mining, forestry, oil and agro food production.

The challenge, states the film is how to balance the needs of the local population and economic interests ‘to reconcile conservation and the commercial exploitation of the natural environment’. Sustainable forest management is a key part of the solution, it says. ‘FSC and PEFC certified companies harvest wood, while limiting their impact on eco systems and seeking to preserve the culture and natural resources of forest inhabitants’.

One of the latter, Emmanuel Bokouaka, whose family lives in a Congo Brazzaville forest community said certification had changed his perception of foresters.

‘Before we had the preconceived idea that foresters were destroying the forest with the agreement of the state,” he said. “But now they’re working  to improve the condition of our villages. They take trees that interest them and protect our food sources.”

Norbert Gami of the Congo Wildlife Conservation Society describes the forest as the ‘pantry’ of local communities and says any form of commercial exploitation that destroys their resources is not sustainable. Certified forest management, however, engages forest inhabitants in ‘social mapping’ with logging companies to ensure their interests are taken into account and the forest remains an area that provides them with food, medicine and other resources, and respects their social heritage.

The film acknowledges local populations can’t prevent granting of concessions to state owned forest in the Congo, but stresses their involvement in the process.

Jeveline Nguimbi of IFO Interholco’s social team describes the ‘sensitisation’ work that’s done with communities before harvesting commences in a concession. Together with locals, she undertakes geo-referenced mapping to delineate production zones and protected areas.

A key part of a sustainable forest management plan, says Eric Mvouyou, head of IFO Interholco’s social team, is establishment of a local development fund to share part of the profits from logging operations with communities. This underpins development of micro-projects by local people, with forest operations also supporting schools, health care and other community resources in their area.

Certified forest operations also, of course, generate jobs for local people. The film  highlighted that in the past communities relied on hunting and slash and burn agriculture, one cause of deforestation.  Mbané Joseph Florian, a heavy vehicle driver for Pallisco said his job enabled him to feed his family of 16 children and send them to a good school.

Norbert Gami concludes that the developing countries of the Congo need to balance conservation and development and in this respect sustainable forest management is a ‘model that works’. “It involves communities in decision making , which didn’t happen before, “ he said. “It’s not 100% perfect, but will improve with time.”

Besides IFO Interholco and Pallisco CIFM, ATIBT credits Rougier Gabon, Precious Woods and CIB OLAM for their support in making the film.

Click here to see all three films in the series.

Brazil’s Lula faces up to forest challenge

 

Photo: Ricardo Stuckert

President Luiz Inacio Lula da Silva of Brazil says tackling Amazonian deforestation, which rose dramatically under his predecessor Jair Bolsonaro, is a government priority.

Demonstrating his intent, he has revived the Amazon Fund, which he set up as a REDD+ mechanism during his previous term in office in 2009 to attract investment from business and governments to combat forest degradation. This is now worth $1.3 billion, primarily donated by Norway, but with Germany and oil business Petrobras also contributing.

During his earlier term, President Lula did make significant advances in his environmental strategy, with forest clearance declining by 80% between 2004 and 2012. He has also now set up a ‘anti-deforestation task force’. His aim, he says is ‘zero deforestation’.

While welcoming his reversal of Bolsonaro’s policy, which was effectively laissez faire on deforestation, allowing mining and agro-business to clear more land and ignoring indigenous communities’ rights, some commentators raise significant question marks over President Lula’s chances of success in stopping land clearance. Chiefly they point out that his government lacks the resources for the scale of the task.

France 24 reports that he came away from a meeting with President Biden in Washington with only a ‘vague promise of intent’ that the US would back the Amazon Fund. Brazil has also appealed to the EU, France, the UK and Spain to contribute, but so far without success.

“Activists say Lula’s government needs to fight all-out on multiple fronts: massively upscale ‘command and control’ operations; bust organized crime groups that profit from destroying the forest; invest big in the ‘green economy’; and resume creating new Indigenous reservations,” reports French media network France24. “But environmentalists say his cash-strapped government is in a bind. it needs more money to reduce deforestation, but needs to reduce deforestation to attract more money.”

The severity of his problems was highlighted by the fact that in February, President Lula’s second month in office, the level of Brazilian Amazon deforestation hit a new high.

Analysis of the situation by Eduardo Porter of Bloomberg in a Washington Post article in March says the President must ‘think like a capitalist’ to achieve his green ambitions. He must convince businesses and notably farmers that his policies serve their interests too.

“For Lula to save the Amazon over the next 10 years, he must offer a viable business plan to farmers who live off it,” writes Porter. “They need a profitable way to keep land out of production. Lula will not come anywhere near achieving his goals without their help.”

This, he maintains, is going to take a lot of money, with the Earth Innovation Institute (EII) in San Francisco stating that Amazon forested land is worth just $300 per hectare, but four times that if cleared for production.

There is significant environmentalist opposition to using offsetting to support forest maintenance. But Porter says ‘without market mechanisms to draw private capital into the effort, zero-deforestation will be impossible. “The effort must come with capital for farmers to make ending deforestation work for them,” he writes.

But on a positive note he points to a ‘path-breaking deal’ Guyana signed in December 2022 to sell $750 million of carbon credits to US oil firm Hess to fund the government’s Low Carbon Development Strategy, which supports a range of environmental initiatives. A similar programme in Brazil, says the EII could generate $13-$48 billion by 2030 to ‘reward those who forgo the right to clear forest’. This, says Porter, could also fund forest monitoring, law enforcement and bio-economy start-ups.

Greenpeace Brasil’s Cristiane Mazzetti also strikes a more upbeat tone. At least, she says, Brazil is ‘back to having a quote-unquote ‘normal’ government’.

Buying into forest biodiversity

 

Photo: Ludovic Marin/AFP

A focus at the One Forest Summit in Gabon was harnessing markets in support of forest maintenance, including via biodiversity certificates.

The Libreville event in March included a roundtable discussion hosted by the ATIBT looking at the relation between domestic timber markets in Central African countries and uptake of sustainable forest management. It was described as ‘an increasingly important topic in [the region’s] forest economy’.

The conclusion was that development of its domestic markets, as well as exports, are ‘essential for the future of the sustainable sector’. But, it was agreed it wouldn’t be easy. “We need a fiscal approach to facilitate access to sustainable wood by consumers in our countries,” reported ATIBT. One suggested way forward was a cut in VAT on this timber.

The summit also included discussions on ‘innovative finance’, looking at new instruments that could attract global investment in forest maintenance and wider conservation. These opened with a presentation on a Global Environment Facility report ‘Opportunities and Challenges for Biodiversity-Positive Carbon Credits and Nature Certificates’. This explores market-based solutions for biodiversity conservation.

ATIBT was also involved in developing this theme for the Summit. It maintains that sustainability certification of forests, as ‘both economically profitable and environmentally beneficial,’ is part of the solution, alongside ‘classic conservation’ measures, for combating deforestation and degradation. At the same time, it acknowledges, that such approaches are not ‘valued to their full extent’. It notes in particular that the access of certified sustainable forestry and timber production to carbon finance is restricted as they cannot demonstrate the same ‘additionality’ of benefits as their non-certified counterparts. Moreover, the carbon market mechanism of ‘offsetting’ is itself also increasingly being questioned. Instead schemes involving business making ‘contributions’ to combating climate change are increasingly being put forward, including at COP27.

“We would then speak of a ‘carbon contribution’ or ‘biodiversity contribution’, without the right to offset,” states ATIBT. It goes on to support the view of CIRAD researcher Alain Karsenty that ‘we abandon the term carbon credits in favour of what could be “positive impact certificates” covering carbon, biodiversity and social issues’.

ATIBT is itself involved in the Organisation for Biodiversity Certification (OBC) initiative. This  ‘aims to create an operational tool for assessing local positive impacts on biodiversity or on the carrying capacity of biodiversity, based on technical and scientific consensus’.

ATIBT, through its ‘Carbon and Diversity Commission’ (CBC) is also addressing other opportunities for forest concessionaires to tap into carbon finance via ‘Improved Forest Management’ (IFM) projects, such as those adopting ‘reduced impact logging for climate change mitigation’ strategies. “Too few IFM projects exist, methodologies are complex and technical barriers are holding back forest concessionaires,” said ATIBT. “The CBC is studying how to remove obstacles and connect investors with project leaders on the ground.”

One Forest Summit attendees also issued the Libreville Plan, with its pledges including a political commitment to reverse deforestation by 2030 and securing remuneration for services provided to the rest of the world by forest countries.

It was also announced that €100 million had been committed by France, the Walton Foundation and Conservation International for Positive Conservation Partnership initiatives, with volunteer countries focused on carbon stock and biodiversity protection.