• SCA is Europe’s largest forest owner and a major timber, pulp and paper manufacturer.
• A long-standing member of FSC, it announced its intention to temporarily pause its FSC Forest Management certification in Sweden starting June 1, 2025, due to a series of systemic challenges it sees within the current FSC framework.
  • Still supports FSC: Although SCA is leaving the Swedish FSC system on June 1st, they will remain a member, keep its Controlled Wood and Chain of Custody certifications, and maintain Forest Management certification in Estonia, Latvia, and Lithuania.
  • Hopefully temporary: The pause is intended to protect SCA’s ability to meet climate and sustainability goals, not to leave FSC entirely.
  • To prompt dialogue: SCA is calling for a meeting with FSC and stakeholders in Frankfurt to work on solutions collaboratively.

The Forest Stewardship Council (FSC) certification has been a vital component of sustainable forest management in Poland for over 25 years. Until recently, approximately two-thirds of the total forest area of 9.2 million hectares in the country were FSC-certified. The certified forests are managed by the Regional Directorates of State Forests (RDSF) and two Forest Experimental Stations under the University of Poznań.

Despite initiating dialogue in November 2022 between FSC International and Polish State Forests, six Regional Directorates of State Forests (RDSFs), representing an area of roughly 2 million hectares, have opted to discontinue FSC certification in their respective regions. The affected regions include:

• Gdansk (FSC-certified area: 303,938 ha) - expired
• Torun (FSC-certified area: 456,447 ha) - expired
• Poznan (FSC-certified area: 419,535 ha) - certificate expired on 4 April, 2023
• Warsaw (FSC-certified area: 194,960 ha) - certificate expired on 9 April, 2023
• Radom (FSC-certified area: 325,074 ha) - certificate expired on 1 May, 2023
• Pila (FSC-certified area: 362,770 ha) - recertification granted on 10 March, 2023; license agreement was valid until May 31, 2023

The collaboration between Polish foresters and FSC has enabled many Polish companies to grow their market reach through exporting their FSC certified products to regional and international companies. Today, Polish companies are among global leaders when it comes to the production of furniture, doors, windows, panels, and other wood-based products. There are currently 2,500 FSC Chain of Custody (CoC) certificates in Poland, making it one of the top countries for FSC CoC globally.

Kim Carstensen, Director General of FSC International, says: “We will reinforce our engagement and presence in Poland to ensure that we have a solid foundation for responsible forest management now and in the long term. We will continue to promote sustainable practices throughout the country in line with our values, while safeguarding its global credibility”.

FSC acknowledges the significant implications for certified supply in the country coupled with the existing shortages as a consequence of the Ukraine war. To address this issue, FSC is actively working alongside partners and members to develop strategic solutions to fill the supply gap.

Hungary waived environmental regulations protecting native forests from logging, showing the increasingly extreme steps the government is willing to take to prepare for next winter’s energy shortages.

Prime Minister Viktor Orban's cabinet, citing the effects of the war in neighbouring Ukraine, loosened regulations on logging to meet increased demand for firewood as a result of surging gas and electricity prices.

WWF-Russia recommends companies to not source nor use wood obtained from salvage logging, and to take additional measures to verify the legality of sanitary wood felling, such as increasing company field audits, until the risk of illegal wood from salvage logging entering supply chains has been minimised drastically.

This report by independent environmental charity Earthsight finds illegal logging in FSC-certified supply chains in Ukraine. Focussed on the Carpathian forests, it found around 100 sites are being felled illegally each spring, when silence periods should protect several endangered animal species including brown bears, wolves and Eurasian lynx. While regulations require Environmental Impact Assessments (EIAs) before sanitary felling is conducted, no EIAs were found to have been carried out. Evidence sited by Earthsight includes the Ukrainian State Environmental Inspectorate (SEI), local environmental organisations, and research commissioned by WWF Germany.

Earthsight claims this illegal logging has not been picked up in FSC audits because of systematic issues with FSC that go beyond Ukraine: conflicts of interest as auditing bodies are paid by the logging companies they certify; inadequate oversight by Assurance Services International (ASI) which should be holding the auditing bodies to account but is argued to have failed to do so. The report documents a wide array of cases where FSC-certified firms have been accused of illegal logging, clearance of High Conservation Value (HCV) forests, and human rights abuses from all over the world – including in places such as Brazil, China, Congo, Indonesia, Peru, Romania, Russia, Ukraine. Earthsight highlights that FSC has only investigated 13 companies in its 27-year history – 0.02% of the more than 44,000 it has certified.

In response, FSC states it is fully aware of the issues in Ukraine, and insists that whenever illicit acts are identified or reported they are investigated. IKEA says it has started its own investigations, commissioned audits from a 3rd-party independent audit company, asked questions to ASI, and pledges that if any illegal wood is indicated in its product it will take immediate action.

Earthsight’s report focuses on IKEA because, as the biggest buyer of wood in the world, it has the most influence to drive positive change. However, the issues found by Earthsight apply to the publishing industry as much as they do to IKEA. Therefore, the Book Chain Project will further look into Earthsight’s findings and update you as soon as we decide what further action to take.

According to an investigation by the environmental charity Earthsight, in the area of forest - Velykyi Bychkiv within Ukraine, loggers appear to be taking advantage of loopholes that allow for “sanitary felling” during the silent periods in the spring and early summer from 2018 to 2020. Some of the wood in question is found in the supply chain of Swedish furniture maker Ikea, who denied wrongdoing and immediately began their own investigations into all parties mentioned in Earthsight’s report.

Indonesia’s environment ministry will file civil lawsuits against five companies in connection with fires that razed their concessions last year. Fire season in 2019 burned an area half the size of Belgium and released double the amount of carbon dioxide as the fires in the Amazon. Officials say they are preparing both civil lawsuits — seeking fines against the pulpwood and oil palm firms blamed for the fires — and criminal charges. However, a spate of recent cases suggests the government will have a hard time getting the money, with only a tiny fraction paid out of the $231 million awarded from nine companies in similar lawsuits.

Metsä Group's Äänekoski mill in Finland now calls itself a ‘bioproducts mill’ as it makes paper and wood for recyclable drinks cartons, clothing and building materials. They re-use the chemical additives and by-products of the production process to make sure they are not wasted. They also deploy drones to digitally map the forest area so they can monitor trees using a mobile phone app and then arrange remotely for contractors to thin or harvest an area when the trees look ready. For more information, please visit Metsä Group's website.

This August, Network for Certification and Conservation of Forests (NCCF), the national member of PEFC from India, has released the voluntary certification standard for Trees Outside Forests (TOF) in India after three years' development. In the Indian context, TOF refers to agroforestry, urban trees and forests and scattered trees in farmland and homesteads, trees along roads, canals, railway lines and in orchards and gardens. These trees are mostly privately owned, even by small and marginal farmers. TOF resources play a very important role in meeting the demand for wood fibre in India, especially for the pulp and paper, plywood and composite products, handicrafts and furniture industries. Currently, TOF resources are estimated to meet more than 85% of the industrial wood requirements. We anticipate that NCCF will seek the endorsement of TOF certification standard by PEFC and will keep following its development.

A four-year investigation by the US Environmental Investigation Agency (EIA) uncovered evidence of an illegal timber trade stretching from Chinese-owned Dejia Group in West Africa to major hardware stores located across the USA.
The timber was from the okoumé tree, classed vulnerable on the IUCN Red List, with a range limited to just four African countries. US Federal officials are investigating the importers, Evergreen Hardwoods and Cornerstone Forest Products. The Dejia Group also exports to European countries where the EU Timber Regulation is in force, including France, Belgium, Italy, Spain and Greece.

The World Economic Forum recently published research suggesting consumers in a few key emerging market producer countries (Indonesia and Brazil) and importing countries (China and India) together account for 40% of global consumption of the four commodities most associated with tropical deforestation—soy, beef, palm, and wood products. The authors project that by 2025 demand for these commodities within these four countries could increase by 43%, resulting in forest areas equivalent to the size of Nigeria being cut down every. Increasing demand for meat and calorie-rich foods, regulatory changes, and shifts in constraints for domestic production will all be key factors in fueling demand in these emerging market economies.

The tariffs on Canadian lumber and Canadian uncoated groundwood paper from the Trump administration on trade war, resulting in a significant rise in the cost of newsprint. Newspaper publishers in the US is now struggling to adapt, incorporating newspaper section limits, cutting page counts, decreasing issue frequency and laying off staff.

A new study finds that illegal logging, coupled with weak state-run timber licensing systems, has led to massive timber harvesting fraud in Brazil, resulting in huge illicit harvests of Ipê trees. Ipê wood is largely shipped to the U.S. and Europe with the high value (up to $2,500 per cubic meter at export). Buyers all along the timber supply chain turn a blind eye toward fraud, with sawmills, exporters, and importers trusting the paperwork they receive, rather than questioning whether the lower prices they pay for Ipê and other timber may be due to timber laundering. This process is doing major damage to the Amazon. To reduce document fraud, the Brazilian federal government required that all states register or integrate their timber licensing systems within a national timber inventory and tracking system known as Sinaflor. While this should reduce fraudulent paperwork, better oversight of forest management plans and more onsite inspections of timber operations are needed also.

Hardwood Dimensions, a timber importer in the U.K., violated the EU Timber Regulation by not properly verifying the legality of a shipment of Cameroonian ayous in January 2017. A judge ordered Hardwood Dimensions to pay 4,000 pounds ($5,576) plus court costs in the case. The case calls into question the effectiveness of Forest Stewardship Council certification, which Hardwood Dimensions has held since 2000.

The Environmental Investigation Agency (EIA) says decking on luxury yachts made in the UK have illegal wood on them. EU rules dictate that point of origin in the chain of sale must be legally-sourced teak from Myanmar. Princess Yachts International and Sunseeker International, both singled out by the EIA in their statement, will be at the London Boat Show this week.

Even as the logging industry lobbies the Canadian government to further delay measures that would protect the country’s diminishing woodland caribou herds, research and satellite images of the boreal released last month by NRDC clearly illustrate the failure of voluntary industry commitments to protect woodland caribou habitat.

FSC in Brazil is now working with BVRio, the organization that set up the Responsible Timber Exchange in late 2016. BVRio pulls together data on the pricing, supply chain and certification of timber and wood products through its Responsible Timber Exchange. Since opening in November 2016, the exchange has fielded more than 400 offers for 5 million cubic meters of timber, 30% of which was FSC-certified. The partnership with FSC is aimed at bolstering the market for certified forest products.

Vietnam has largely succeeded in reforestation within its border. Started in the 1980s, accompanying the transition to a market-driven economy, forestry management moved to a multi-sector approach with NGOs, businesses, local communities and management boards involved from originally government control. In 2008, Vietnam become a REDD pilot country, and both Forest Trends and FAO have recorded the increase in forest cover in Vietnam. However, challenge still exits. The demand for wood products in Vietnam is high, and now the country imports much from Cambodia, where illegal and unsustainable loggings happen frequently.

Two organizations, Woodland Trust and Confer, warn that England now is cutting down more trees than planting in the possibly 40 years. They pointed out that England is already one of Europe’s least wooded countries, and the government is missing its target to plant 11 million trees in the UK in the lifetime of this parliament. The UK government responded that the woodland cover was at its highest level since the 14th century, and planting rates vary from year to year. The Woodland Trust, Confor and large commercial forestry groups call on the government to commit to planting 7,000 hectares of woodland every year until 2020 and then to increase planting to 10,000 hectares a year.

From 15 November special licences issued by Jakarta will certify the legality of timber products destined for the EU such as pulp, plywood and furniture. This assurance system, will be independently audited to ensure the timber is legally sourced and meets environmental standards. Once the agreement takes effect from 15 November, timber exports from Indonesia that do not carry this certification will be prohibited from trade within the EU.

The FSC International Board of Directors agreed to important changes to the new Controlled Wood standard (FSC-STD-40-005 V3-0) and its implementation. Requirement for “Simplified Risk Assessments” was removed. Instead FSC will allow certificate holders maintaining company Controlled Wood Risk Assessments to continue to employ these for sourcing from countries where a National Risk Assessment (NRA) or Centralized National Risk Assessment (CNRA) development process is already underway.

Myanmar’s National League for Democracy-led Government announced a national logging ban, effective immediately, which will run until the end of March 2017. Satellite data shows the tree cover in Myanmar has lost nearly 5 percent (2 million hectares) from 2001 through 2014. In 2014, Myanmar enacted a ban on raw timber exports. A driving force of Myanmar’s illegal timber trade is demand from China, and Myanmar was once China’s biggest supplier of rosewood in 2013. The demand from china declined in 2015 since China’s economy slowed, and currently, China’s timber trade with Myanmar is officially suspended.

A recent study released by 12 international and Indonesian NGOs reveal that Asia Pulp &Paper (APP) is building one of the world’s largest pulp mills without a sustainable wood supply in South Sumatra. This analysis indicates that the current planted area owned by APP is insufficient in supporting this new mill as well as the 2 existing mills. This report suggests that APP may fail to meet its ‘zero deforestation commitments’ made in 2013 which included ‘100% sustainable plantation wood for pulp’.

The Montagnes Blanches endangered forest has become a focus area for conservation organisations due to threats on its unique features by illegal logging. According to satellite data provided from 2000-2013, almost 50% of the intact forest landscape has been lost or degraded. Furthermore the species, woodland cari-bou within this forest is now being identified as threatened under Canada’s Species at Risk 2.

According to a newly released report from a non-profit organization called Forest Trends, in the past few years, imports of rosewood, collectively known as hongmu, from Africa surged, which are prized by Chinese furniture manufacturers who use them to make products that are highly coveted status symbols.

Auditors say EU scheme to tackle $100bn global trade in illegal timber is poorly designed, badly managed and largely ineffective. Four EU countries – Greece, Spain, Hungary and Romania – have still not implemented an EU timber regulation proposed five years ago, allowing an easy passage to market for the fruits of deforestation. While on the supply side, part of the problem rests with a poor prioritisation of aid, the auditors say. Liberia received €11.9m to tackle illegal logging, when its yearly wood exports to the EU only averaged €5m.

The largest hardwood flooring retailer in the United States, Lumber Liquidators, agreed to plead guilty to several violations of the Lacey Act. The company will have to pay a combined $13.2 million for importing illegally harvested timber from areas including forests in far eastern Russia and other compliance issues. The raids that led to the charges followed investigations and reports by the Environmental Investigation Agency (EIA) and WWF. Lumber Liquidators faces separate allegations that it imported laminated wood products with illegal levels of formaldehyde.

A study by FSC has found that approximately 300 million cubic metres of FSC certified wood are harvested every year, making up 16.6% of the total global industrial roundwood market.

32 indigenous villagers in Cambodia’s north-eastern area, Stung Treng province, called on local forestry officials to crackdown on illegal saw mills and to provide them with protection after they received death threats from unsanctioned loggers of luxury timber. The 32 villagers are community activists, and they vowed to keep fighting illegal logging in their local area despite the threats. The environmental watchdog Global Witness said in a report in February that China’s voracious demand for luxury furniture is the driver behind the multimillion-dollar illegal trade in rosewood in Cambodia.

Despite government plans to eradicate illegal logging that have been in place over the past five years, encroachment on the country’s forests remains rampant, a recent report says. The report, released by a number of NGOs grouped under the Coalition against Forestry Mafia and the Washington-based Forest Trends, said that more than 30 percent of the timber used by the country’s industrial forest sector could be considered illegal. According to the report, while the source of this illegal wood was unclear, it was likely from trees harvested during the clear-cutting of natural forests from new oil, palm and pulp plantations. In order to meet the demands from the industrial forestry industry, the government had pledged to boost the number of industrial forestry plantations as the primary source of legal wood in Indonesia. The plantations produce fast-growing species of trees like acacia. However, the report found that the plantation sector was dramatically underperforming. In 2007, the forestry ministry predicted that by 2014, plantations would be producing at almost twice the rate reportedly achieved.

Russia’s Federal Security Service (FSB) is working with environmentalists to combat illegal logging in the country’s Far East. Activists from WWF described long term collaboration with officials from Russia’s former KGB service in the effort to combat corruption and illegal timber exports as “unusual” but also unavoidable. WWF has been providing training for local customs officials on how to spot illegal species. A 2013 report by the Environmental Investigation Agency estimated that 96% of the valuable hardwoods harvested in the Russian Far East end up in China, while at least 80% of all felled trees have been logged illegally.

For decades, mahogany, ebony, rosewood and other rare tropical hardwoods have been extensively logged to produce valuable wood products, particularly guitars and other instruments. Increasingly aware of the impacts to forests and communities from over-harvesting, many instrument manufacturers have taken steps to make their supply chains more sustainable. Now, musicians are joining the call to make sure guitars and other instruments are made from legal, sustainably sourced wood. Last week the Environmental Investigation Agency and REVERB released a video featuring artists such as Jason Mraz and Michael Franti urging consumers to find out where their wood comes from.

China's Heilongjiang province, which borders Russia to its north and east, contains 18.5 million hectares of state forest - more natural forest than any other province in the country. However, since the mid-twentieth century, Heilongjiang has had over 600 million cubic meters of timber extracted from its woodlands. Now, China is trying out a complete ban on commercial logging in the province's state-owned forests. Forestry experts predict that this trial ban will allow forests to regenerate hence, replenishing timber supplies, but will also push the industry to focus on improved forest management. According to the State Forestry Administration, to ensure that the ban is enforced and implemented over its intended time frame, the central Chinese government has allocated 2.35 billion yuan ($375 million) per year to cover forestry workers’ living costs between 2014 and 2020. If the ban succeeds, it could be extended throughout northeastern China and Inner Mongolia.

A study published in the journal Science, led by Holly Gibbs of the University of Wisconsin-Madison, found that the moratorium on forest conversion established by Brazilian soy giants in 2006 dramatically reduce deforestation for soy expansion in the Amazon, and have been more effective in cutting forest destruction than the government's land use policy in the region. The study is based on spatial analysis across thousands of farm in the Brazilian Amazon and cerrado, a woody grassland, and researchers compared forest loss before and after the moratorium was established.

According to Myanmar military officials 122 foreign national (mainly Chinese) and 20 Myanmar citizens were arrested for illegal logging and other alleged crimes in northern Myanmar. Along with the arrests, authorities seized 436 logging trucks and 14 pickup trucks loaded with logs, stimulant drugs, raw opium and Chinese currency. Locals blame the continuous illegal logging on the lack of enforcement as authorities and rebel officers are commonly bribed in exchanged for permission for illegal logging in the area. Unfortunately the insatiable Chinese appetite for hardwood furniture and a lengthy and porous border enables this illegal activity to continue.

PEFC Italy, along with Conlegno, RiSSC, Risk Monitor and CNVP have launched a project aimed at preventing criminal organizations infiltrating into the EU timber market. The TREES project (Timber Regulation Enforcement to protect European wood Sector from criminal infiltration) aims at promoting standard procedures to prevent the risks of criminal infiltrations into the European market. By the end of the project, a standardized set of guidelines, actions and strategies to overcome difficulties in Due Diligence implementation will be developed, providing market operators with suggestions on how to carry out risk assessments and risk procedures.

British businesses from the high street and timber, construction, publishing, DIY and grocery industries are among the first UK firms committing to responsible forest trade to help end deforestation around the world with a shift to 100 per cent sustainable timber and wood products by 2020. The existing loopholes in the current legislation to combat illegal timber means some industries are exempt from ensuring that their wood or products have come from legal sources. In 2015 the timber regulation is due to be reviewed and WWF and its campaign supporters are calling on the UK government to demand the EU makes the necessary improvements to the regulation to ensure that all timber products are covered and thus end the import of illegal wood.

A tree-by-tree battle between activists and timber workers more than three decades in Tasmania tore apart the Apple Isle. Finally, a historic peace deal came in 2012. Hodgman’s government removed 400,000 hectares of native forest from reserves, designing it “future potential production forest land” – available to be logged in six years’ time. The Hodgman government is also putting anti-protest laws aimed squarely at the environment movement. Plantations in Africa, south-east Asia and South America had come online and flooded the solid wood and woodchip markets with cheap, plentiful supply. Tasmania’s major green groups are plotting their next steps. The Hodgman government has created a ministerial council to advise on the future of the state’s forestry industry, without any environmentalist invited. The Hodgman government’s pro-logging drive makes the negotiations between environmentalists and the industry impossible.

Recognising the severe impact illegal logging is having on tax revenue generation, the Lao government has launched a pilot program to track the source of timber from sawmills and wood-processing plants. Demand for the valuable hongmu (redwood) timber from neighbouring China is thought to be driving illegal logging in the country. The pilot program requires all logs in sawmills and wood-processing plants to be inspected before export and to lay a framework for documentation that they are derived from legal sources, according to the reports.

Kenya has recently seized a shipment of $13 million worth of rosewood illegally harvested in Madagascar and bound for Hong Kong. The writer highlights the trend of illegal shipments through Hong Kong and notes that as neither Hong Kong nor China has laws banning illegal timber, border authorities cannot intercept it unless it is CITES-listed. According to estimates only 16 per cent of China’s processed timber is then exported, so there is a huge domestic market that is not subject to regulations preventing the use of illegally-harvested timber.

Cambodia has the 5th fastest rate of deforestation in the world. By law, the government have to put any wood that is seized from illegal logging activity up for auction with the proceeds deposited in the state treasury. However these auctions are not transparent, and corruption is rife. Illegal wood is often sold to government officials at cheaper than market prices, which actually promotes further illegal logging activity. The investigative report highlights cases of corruption and the attempts to stop the trade of illegally sourced wood by NGOs.

The American Forest and Paper Association has released its 2014 Sustainability Report, exhibiting the substantial and measureable progress that US pulp, paper, packaging and wood products have made towards achieving sustainability goals. The report outlines how paper mills self-generate most of their energy needs, and most of that energy is renewable and that the forest products industry is the second largest producer of combined heat and power electricity in the manufacturing sector.

Thailand's Dong Phayayen-Khoyai Forest Complex is in danger of losing its World Heritage status because illegal logging is destroying the forest. The International Union for Conservation of Nature (IUCN) says there is ineffective management to prevent the illegal logging of Siamese rosewood that was once abundant in the area. The IUCN is also concerned about plans to build a hydroelectric dam in the forest although the director of the Cultural and Natural Environmental Management Bureau said that there is a high possibility that the construction of the dam will not go ahead.

Indonesia’s VPA was backed by the European parliament on 27th February. This Voluntary Partnership Agreement acknowledges that Indonesian timber and wood products are being certified through the domestic timber legality verification system (SVLK) as legally harvested and processed, thereby complying with the EUTR. Analysts have suggested that this access to the European market will increase exports from Indonesia to the EU by 5 – 10% this year.

Monks and villagers in Ubon Ratchathani’s Khemmarat district of Thailand have teamed up to protect their 100-year old Siamese rosewood forest from illegal logging gangs. The rosewood trees in this area have grown naturally for 100 years, and most are more than six metres high. By closing the temple doors during the night, the monks are preventing illegal logging gangs from entering the temple and cutting down the trees. Most illegally cut rosewood trees are transferred to China via Laos and Vietnam. During 2008 – 2014, over 27,000 pieces of Siamese rosewood have been confiscated by police and some 395 offenders arrested.

The pattern of overseas investment and cooperation by Chinese timber enterprises is evolving rapidly. Chinese forestry enterprises have invested around US$1.3 billion in some 20 countries mainly for timber harvesting, primary processing as well as a growing interest in wood product manufacturing.

Building on the sustainability achievements of the London 2012 Olympic and Paralympic Games, the Organising Committee of the Olympic and Paralympic Games Rio 2016 and FSC Brazil announced that all forest products that will be acquired by the Organising Committee will be certified. This includes overlay structures, furniture, communication materials and stationary. The partnership between FSC Brazil and the Organising Committee is expected to boost the market for FSC certified wood in Brazil, and also to provide a push for responsible forest management in Brazil.

Greenpeace has reported that Asia Pacific Resources International Limited (APRIL) faces expulsion from the World Business Council for Sustainable Development (WBCSD) if it fails to stop clearing rainforests and peatlands on the island of Sumatra. APRIL has twelve months to comply or face expulsion from the WBCSD. APRIL is one of the largest deforesters in Sumatra, with 60% of its wood coming from natural forests. Campaigns against APRIL have been stepped up a notch since its biggest competitor – Asia Pulp & Paper (APP) – signed a comprehensive forest conservation policy last February.

Canada’s Resolute Forest Products have had 3 of its forest management certificates suspended following complaints filed by the Grand Council of the Crees; the representing body of the First nations communities, as well as Greenpeace. The certificate suspension is due to the company failing to meet various FSC requirements including the protection of high conservation values and support from stakeholders for its operation. The suspended forest management certificates mean that Resolute can no longer label their pulp, paper and wood products as FSC-certified.

Lumber Liquidators, the top-selling flooring retailer in the US, is currently under investigation over whether it has been importing illegally logged wood products from the Russian Far East in violation of the US Lacey Act. The company is now facing class action lawsuits from investors following criticism from a noted hedge fund adviser who has argued that the recent increases in the company’s profit margins have come, in part, by increasing imports of illegally harvested wood from China and the Russian Far East.

The EU has signed a VPA with the Government of Liberia which aims to improve forest governance and ensure that the wood imported into the EU has complied with the Liberian legal requirements. The UK Government is providing aid to support the process and the ultimate goal of developing FLEGT licenced timber.

Officers from US Immigration and Customs Enforcement (ICE) raided the corporate headquarters of Lumber Liquidators, the top-selling flooring retailer in America, in Toano, Virginia. ICE agents were investigating whether the company had imported illegally logged wood products from eastern Russia. The Environmental Investigation Agency (EIA) has published a sobering report which gives details that Lumber Liquidators has allegedly purchased millions of square feet of illegally logged hardwoods in the Russian Far East.

A recently published paper has highlighted the fact that large volumes of rosewood logs have disappeared from depots in Northeast Madagascar. The logs are smuggled by small boats to larger ships waiting offshore. It was reported that traffickers were offering around 1 million Malagasy Ariary ($450) per household in the Masoala peninsula to turn a blind eye regarding rosewood.

A new £15m forestry research centre at Birmingham University will study how climate change is affecting Britain's woodlands and examine how trees can be protected from the threat of invasive pests and diseases, such as the Chalara fraxinea virus which has caused the spread of Ash dieback across the country.

The European Bank for Reconstruction and Development (EBRD) and the Food and Agriculture Organization of the United Nations (FAO) have joined forces to promote viable forestry investment and innovation in the Russian Federation's Far East based on sustainable use of forest resources. Improving legal frameworks and the inventory of forest resources; developing modern forestry infrastructures and supporting services, in particular railway transportation networks; introducing modern logging, as well as harvesting and wood-processing technologies; providing adequate training at local level; clearly designating and protecting forest areas of high biodiversity value are among the key Roadmap recommendations.

A report from the UK- and US-based Environmental Investigation Agency (EIA) has said that up to 80% of the hardwood harvested in the Russian far east is logged illegally. The EIA say the demand for this material comes from Chinese sawmills and subsequently their western customers. The material that is of most concern is illegally logged Russian oak. US wood flooring retailer, Lumber Liquidators, was named in the report as being heavily reliant on Chinese suppliers who allegedly mainly sell illegally logged material. The EIA say the US and EU regulations on illegal logging are important pressure points where they now have the ability to intervene – before now, and without this pressure, illegal logging in Siberia has seen rapid expansion. Despite industry incentives from the Russian government, incredible demand from China has led to Chinese sawmills establishing just over the China-Russia border. EIA’s investigations suggest that most of these mills rely on a supply of illegally logged timber.

Report from the Guardian looking at the increasing use of DNA tracking for imports of solid wood of at risk species.

The report questions why FSC and PEFC aren’t adopting such technology but, as the FSC spokesperson points out, ‘at this point, the cost effectiveness and the science aren't quite there, you can't do testing on paper or lots of composite wood products because the DNA is generally removed. For some tropical species, there are many closely related relatives, which also makes it difficult.’

Germany’s EU Timber Regulation (EUTR) competent authority, BLE, is investigating suspected breaches of the law.

BLE was apparently tipped off by its Belgian counterpart and Greenpeace about several consignments of wenge (often referred to as Congolese Rosewood) delivered via Antwerp to a number of German customers.

Greenpeace alleges that the timber comes from an illegal source in Democratic Republic of Congo and contravenes the EUTR.

One report showed a complicated supply chain with the timber being imported from the Congo to Belgium by a Swizz trader, and from there on to Germany.

Short opinion piece on the major themes that were discussed at a recent Forest Legality Alliance meeting in Washington DC between members and experts involved in the harvest, manufacturing and trade of forest products. Illegal logging rates worldwide have declined by about 20 per cent since 2008. The main drivers indicating a shift were deemed to be that legality requirements are now in the mainstream (already in the US, EU and Australia and they are being explored in China and Japan), proactive companies are taking control of their supply chains, and the introduction of public procurement policies in some of the world’s major cities, in particular in Latin America, that require the sourcing of legal timber products.

The Malaysian Government has launched MYTLAS to verify the legality of Malaysian wood products. The country is currently negotiating a Voluntary Partnership Agreement (VPA) with the EU under the Forest Law Enforcement, Governance and Trade Programme (FLEGT). It appears likely that Peninsular Malaysia and the state of Sabah will conclude a VPA with the EU separately from the state of Sarawak which will make arrangements to participate in the VPA later. Sarawak has been at the centre of allegations of primary rainforest clearance and the Chief Minister has been accused by the NGO Bruno Manser Fund of money-laundering profits from forest clearance in Switzerland. There are concerns that a partial VPA would undermine FLEGT by setting a precedent whereby countries can sell legal timber into the EU while continuing deforestation in certain regions.

The Indonesian government plans to introduce “wood terminals” dealing only in certified lumber as part of its efforts to reduce illegal logging. Wood accepted by the terminals would include the lumber’s origin, the time of logging, the type of wood and the date it was registered. This development follows the implementation of a Timber Legality and Verification System (SVLK) as part of Indonesia’s voluntary partnership agreement (VPA) with the EU.

A new Eyes on the Forest report accuses Asia Pacific Resources International Limited (APRIL) of continuing to destroy large areas of rainforests and peatlands despite a commitment to end natural forest logging by 2009. The report draws links between APRIL’s wood suppliers and their obtaining of cutting licences from officials who have been convicted of corruption offences and are now serving custodial sentences. In response APRIL has acknowledged that it continues to clear natural forest but claims that all licences were issued prior to the moratorium in 2011, hence making the company compliant with Indonesian law.

The actor and environmental activist Woody Harrelson is putting his support behind the construction of a $500 million tree-free paper mill in Canada which would produce straw-based paper. Prairie Pulp and Paper, the company behind the project, already produce a copy paper which is 80 per cent waste wheat straw. According to a study they commissioned this paper has a lower environmental impact than 100 per cent recycled paper. However, a representative of the Forest Products Association of Canada thinks wheat paper will be a niche product due to limited availability of waste wheat and the need for the strength and quality in paper that is provided by wood fibres.

A Cambodian journalist, Hang Serei Oudom, who wrote a number of stories uncovering forest crimes linked to businessmen and powerful officials has been found murdered in his car. Cambodia’s forest cover has dropped from 73 to 57% between 1990 and 2010 according to the UN. His murder follows that of prominent local environmentalist, Chhuth Vuthy. In the last story before his death, Oudom accused the son of a military police commander of smuggling logs in military-plated vehicles and extorting money from people who were legally transporting wood.

The Union of Concerned Scientists (UCS) has published a report, Wood for Good: Solutions for Deforestation-Free Wood Products, analyzing tropical wood production’s effect on deforestation and offering solutions for sustainable production. The report identifies a threefold solution to meet the global demand for sustainable tropical wood: 1) turn to responsible plantation forests; 2) governments to develop policies that make sustainable forest management an attractive business prospect; and 3) all stakeholders should demand products certified by FSC or PEFC.

The US House of Representatives will vote this week on a bill called the RELIEF Act (The Retailers and Entertainers Lacey Implementation and Fairness Enforcement Act) which would significantly weaken the use of the Lacey Act to regulate against illegal logging by allowing manufacturers to keep illegal wood and limiting the species and country declaration requirements to solid wood (i.e. pulp and paper would be excluded). The article points to World Bank estimates which suggest that government and businesses suffer more than $10 billion in lost revenue each year due to illegal logging, $1 billion of which is lost by the US.

The Viet Nam Administration of Forestry announced that over 13,700 violations of forest protection and timber management laws were reported in the first six months of 2012. Around 623ha of forest land have been lost in this period as a result of changes in forest use purposes, illegal logging and forest fires. Government ministries working on the issue aim to tighten controls on the wood processing industry and local authorities have been ordered to review existing forestry projects and ensure that forest protection programmes are adequately funded.

Kimberly-Clark is investigating the use of plants which make more efficient use of land and resources without displacing food crops in its efforts to meet its ambitious goal of cutting the amount of wood fibre it uses by 50% by 2025. It is currently test marketing tissue products containing bamboo and is also exploring ways to use waste fibres that remain after agricultural crops such as wheat have been harvested.

As part of its new policy, APP said it will suspend further natural forest clearance on the 1.1 million hectares of pulpwood concessions it owns until assessments have been carried out to identify areas of high conservation value forest (HCVF). APP will also be asking its independent suppliers, who control 1.6 million hectares to accept the key principles of HCVF and comply by 31st December 2014. On APP’s Rainforest Realities website, Aida Greenbury, Managing Director of Sustainability, said “It is the aim of APP’s policy to exclude HCVF from the supply chain”.

Letter from Purwadi Soeprihanto, Executive Director, Association of Indonesian Forest Concessionaires
Published on the Chatham House Illegal Logging website this letter draws attention to the new certification system for Indonesia’s timber sector called SVLK (or TLAS using the English acronym). It is intended to address the requirements of the EUTR, which comes into force in March 2013, by providing assurance that Indonesian wood products are produced in a legal and sustainable manner.

Press release for a report published by the Union of Concerned Scientists called ‘Logging and the Law: How the U.S. Lacey Act Helps Reduce Illegal Logging in the Tropics’. The report draws attention to how illegally harvested wood distorts prices of legal wood and has a negative impact on the US wood industry.