Cartulinas CMPC S.A.
|Suzano Pulp and Paper
|Unidade Jacareí Unit
Forest Legislations 2
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.
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.
Brazil’s government has abolished a vast national reserve in the Amazon to open up the area to mining. The size of the area will be open to mining is about 30% of Renca which is larger than Denmark. Although the government confirmed the nine conservation and indigenous land areas within it would continue to be legally protected, activists worried that these areas could be badly compromised.
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.
The Brazilian government has revised upward its estimate for the extent of Amazon rainforest destroyed last year. Figures released last week by Brazil’s National Space Research Agency (INPE) put Amazon deforestation at 6,207 square kilometres for the year ended July 31, 2015. That represents an increase of 6.5 percent relative to the estimate of 5,831 square kilometres published last December.