Earlier this year Vietnam initialled a timber trade agreement with the EU that will see Vietnam implement legislation to address imports of illegally harvested and traded timber in return for timber exports to the EU. According to a recent EIA investigation, Vietnam continues its role as a serial offender in the illegal timber trade, with large volumes of illegal timber still flowing across the Cambodian border unhindered. EIA have identified three main areas within Cambodia where substantial illegal logging operations continue. EIA tracked timber from these sites is being smuggled out of Cambodia and into Vietnam across informal crossings.

A RM1.2 billion takeover has saved about 1,500 workers’ jobs at ailing India-owned pulp and paper mill Sabah Forest Industries Sdn Bhd, which was owned by India-based Ballarpur Industries Ltd previously. The takeover by Pelangi Prestasi Sdn Bhd entails the transfer of all SFI assets, land titles and timber licenses and is made possible by strong support of the Sabah state government. The takeover is targeted to be completed by end of this year. Pelangi Prestasi committed to retain all SFI workforce and undertake workers’ back-wages, providing training and support as well as enhance access to basic amenities. For the next five years, it will focus on sustainable development of the forest concession area to maximise value through integrated processing and diversification of products.

The publishing initiative run by Carnstone, The Book Chain Project, held its second Asia Summit on 24th of April in Shenzhen, China. It was an opportunity for all the stakeholders in the paper and pulp industry to get together to discuss the latest developments in responsible fibre sourcing. Among the 70 delegates there were paper mills, printers, publishers, retailers, timber experts, and NGOs. The aim of the Summit was to discuss the latest developments on responsible forest sourcing and to share best practice.

The first session included speakers from Carnstone, Chronicle Books, and Donnelly, who shared their understanding on forest sourcing and provided the customer perspective. Next, WWF introduced their work on increasing demand of certified and recycled paper products. IKEA also presented their forest traceability system. Then, IPE and China Water Risk provided their insights on industrial pollution and the water-use pressures present in China.

The next session focused on three major paper mills; UPM, APP and Chenming Paper, sharing their response to the growing expectations and regulations around paper manufacturing. This panel was also joined by TFT who shared their insights on how mills can develop and implement sustainable sourcing systems and encourage engagement further up the supply chain.

The certification schemes, FSC and CFCC, explained how they are evolving to ensure transparency and traceability in global forest supply chains. And the event closed with practical sessions from the Carnstone team, who guided mills and printers to get the most from the online Book Chain Project database. Printers and mills had an opportunity to ask questions, share feedback, and offer ideas and improvements for the future.

Further reading:
Speakers’ slides: https://bookchainproject.com/event?event=5
IPE’s Companies environmental performance monitoring database: http://www.ipe.org.cn/IndustryRecord/Regulatory.aspx?keycode=343j9f9ri329293r3rixxx
China Water Risk website: http://chinawaterrisk.org/
An introduction to FSC certification scheme: https://v.qq.com/x/page/g0639hql3zp.html

The publishing initiative run by Carnstone, The Book Chain Project, held its second Asia Summit on 24th of April in Shenzhen, China. It was an opportunity for all the stakeholders in the paper and pulp industry to get together to discuss the latest developments in responsible fibre sourcing. Among the 70 delegates there were paper mills, printers, publishers, retailers, timber experts, and NGOs. The aim of the Summit was to discuss the latest developments on responsible forest sourcing and to share best practice. Further reading and speakers’ slides: https://bookchainproject.com/news

EPN have published their third report on the state of the global paper industry, presenting an analysis of the world’s pulp and paper industry, and the commercial, social and environmental risks and opportunities facing it. The report examines the performance of the industry against each of the goals of the Global Paper Vision; 1) reducing global paper consumption and promote fair access to paper, 2) maximising recycled fibre content, 3) ensuring social responsibility, 4) sourcing fibre responsibly, 5) reducing greenhouse gas emissions, 6) ensuring clean production and 7) ensuring transparency and integrity. Key themes include the need to bring paper consumption down to sustainable levels, to address climate chain impacts across the supply chain and to drive action around commitments.

A union of palm oil smallholders is challenging the allocation of a billion-dollar fund that they say fails to help them rejuvenate their low-yielding oil palms and instead unfairly subsidizes large biofuel producers. Only 1 percent of the fund went to the smallholder replanting program last year, while 89 percent went to the biodiesel subsidy. The government has promised to amend the split to 22:70 this year. But the government has also defended the subsidy, saying it needs to artificially boost the price of crude palm oil, to make biodiesel competitive with the regular diesel sold in the country — which is also subsidized by the state.

The Draft National Forest Policy 2018 is now open for public comments, and will replace the older 1988 policy once it comes into force. Critics are apprehensive about how the draft policy deals with community participation and industrial forestry. The current draft is bereft of knowledge-driven solutions, some experts say.

A report by WRI shows ongoing deforestation in an oil palm concession in Papua, Indonesia, operated by a subsidiary of South Korea’s POSCO Daewoo. The company has responded by saying its operations in Papua are legal and fully permitted.
Concerns over deforestation by POSCO Daewoo have prompted other companies to say they will not allow its palm oil into their supply chains. These include big-name brands such as Clorox, Colgate Palmolive, IKEA, L’Oreal, Mars and Unilever. POSCO Daewoo has issued a temporary moratorium on land clearing in its Papua concession and hired a consultant to advise it on how to proceed with its operations there.

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.