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.

The London-based Environmental Investigation Agency (EIA) has published a report accusing China, the world’s biggest importer and consumer of timber, of fuelling the trade in illegal timber with at least a tenth of imports coming from illegal sources. Over 75 per cent of China’s timber imports are processed for domestic consumer markets and are not affected by legislation in the US and EU. The EIA urges China to bring in similar legislation to ensure real progress in curbing the trade in illegal logging.

APP has received SVLK timber legality certification on its ninth and final mill. Indonesia’s Timber Legality Assurance System (SVLK) ensures that all exported products are traceable to verifiable points of origin. The EU Voluntary Partnership Agreement (VPA) under which SVLK has been developed is expected to become operational in 2013.

Analysis reflecting on the global state of illegal logging and the importance of Australia joining the EU and the US in implementing anti-illegal logging measures through its own Illegal Logging Prohibition Bill. It draws attention to the flood of illegal timber which is exported to Australia from South East Asia and the difficulty legitimate timber producers in Australia and New Zealand have in competing domestically and internationally.

‘Green Carbon, Black Trade’, a joint report from UNEP and INTERPOL says that $30-$100 billion of revenue are lost by key logging countries each year to the illegal timber trade. The losses are mainly attributed to key logging countries in Central Africa, the Amazon Basin and South East Asia. An editor of the report highlights how organised crime has become more sophisticated over the past decade with government websites hacked to extract logging permits, falsifying certificates and laundering timber by selling it through plantations.

The Russian government has committed up to $12.4 billion over the next eight years to be spent on forestry protection. This will include restoration and improvement of species composition in forests, reducing illegal logging and addressing the black market in timber, improving aerial monitoring, cultivating trees for restoration and creating fire ponds to protect against wildfires. In response to the announcement of the policy, the CEO of the forestry company RusForest called for privatisation of the country’s forest, saying that this would incentivise longer term investment in the management of Russia’s forests. The current model is for companies such as RusForest to manage areas of forest on relatively short-term leases from the government. Russia currently imports more paper than it produces despite having around 700 million hectares of forest.

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.

Burmese authorities detained eighty Thai citizens who were suspected to have engaged in illegal logging in Burmese territory. Seizures of timber-cutting machinery, bulldozers and trucks were also made by the Burmese security forces. Since the arrests, 31 have been released but 49 are still being detained following negotiations with Thai authorities.

APP has announced that three of its mills in Java have achieved SVLK certification. The SVLK system creates a chain of custody process which aims to ensure that mills only receive and process timber from legal sources and that all export products can be traced to verifiable points of origin.

The State of the World’s Forests 2012 (SOFO 2012) report will be officially presented at Rio 20+ this week. The report argues that more sustainable use of forestry resources is key to meeting many of the core challenges being discussed at Rio 20+. This is through the role it can play in creating jobs in rural areas and the possibilities of recycling and carbon storage offered by sustainably managed timber products.

Lord Mandelson said his work with APP related to the new EUTR VPA requirement for Indonesian companies to supply only legally harvested timber. He said he would be advising APP on how to make the new regime a success and how to communicate it with customers and stakeholders.

According to an Indonesian weekly news magazine the Ministry of Environment is preparing a civil suit against fourteen pulp and paper companies – twelve linked with APP and two with APRIL – for illegally clearing forests on Sumatra. The value of the timber only represents four per cent of the damages being claimed, the balance is for ‘ecological losses’. The Ministry of Forestry is opposing the lawsuit.

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.

Central African Republic and Liberia become the fifth and sixth countries to sign Voluntary Partnership Agreements (VPAs) with the EU. Under the EU Action Plan on Forest Law Enforcement, Governance and Trade (FLEGT), VPAs commit partner countries to establish systems and a licencing scheme to ensure only verified legal timber products (including pulp and paper) are exported from that country from 3rd March 2013 (globally; not just to EU member states). VPAs with Ghana and Cameroon are close to being signed and VPAs with four more countries are currently being negotiated.

In advance of the entering into force of the EUTR, the UK Contractors Group has stated that all timber products purchased for either temporary or permanent use on UKCG member sites will be certified as legally and sustainably sourced through FSC or PEFC.