WORKSHOP ON DEVELOPING SYNERGIES BETWEEN CARBON SINKS AND SUSTAINABLE DEVELOPMENT THROUGH FOREST CER

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WORKSHOP ON DEVELOPING SYNERGIES BETWEEN CARBON
SINKS AND SUSTAINABLE DEVELOPMENT THROUGH FOREST
CERTIFICATION Brussels, April 5-6, 2001
Verification and Certification of Sustainable
Forest ManagementDr. Markku SimulaIndufor Oy

• Töölönkatu 15 E, FIN-00100 Helsinki, FINLAND
• Tel. [phone], fax [phone]
• e-mail markku.simula_at_indufor.fi
• www.indufor.fi

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Structure of Presentation

• 1. Background
• 2. Current Situation and Existing Schemes
• 3. Certification Criteria
• 4. Certification and Auditing Procedure
• 5. Institutional Arrangements
• 6. Small-scale Forest Owners
• 7. Value Added of SFM Forest Certification
• 8. Conclusions

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Genesis

• Environmental concerns of consumers
• Failure of governments to address deforestation
• Failure of boycotts of tropical timber to stop
  deforestation
• Environmental competitiveness in marketing mix

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Main Objectives of Voluntary Market-based Forest
Certification

• 1. Promotion of sustainable consumption
  (market promotion)
• 2. Promotion of sustainable forest management

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2. Current Situation and Existing Schemes
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Certified Forests in the World(March 2001)
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Certified Forest Area in Europe by Country
Total 48.7 million ha
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Certified Forest Area in Europe by Scheme
Total 48.7 million ha
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Share of Certified Forests of All Forests
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Elements of Market-based Forest Certification
Body
Action
Result



Standard-setting body
Forest certification standard
Standard setting
Auditing of forest management
Certification body
Forest certificate
Verification of chain of custody
Certificate of chain of custody
Environmentallabeling body
Licensing of companies
Environmental label
Accreditation body
Accreditationevaluation
Registration of certification body
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Comparison of FSC and PEFC Certification Schemes
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Initiatives to Define Credible Schemes

• Generic requirements (IPF/IFF)
• European NGOs
• WB/WWF Alliance (under revision)
• Australian Initiative (Kanowski et al. 2000)
• Forest Industry (IFIR 2001/CEPI 2000)
• Buyers Groups
• Keurhout Foundation
• FSC
• PEFC
• ITTO framework for auditing schemes (2001)
• Donors (DFID, GTZ)
• etc.

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Attributes of Credible Certification Schemes

• 1. Compatibility
• 2. Access to all types of forest and forest
  owners/managers
• 3. Independence
• 4. Participation
• 5. Reliability of audit work and consistency
• 6. Transparency
• 7. Performance and management system requirements
• 8. Continuous improvement
• 9. Cost-effectiveness
• 10. Voluntariness

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Development of Certification in Typical Country
Conditions
Individual certification operations
Awareness raising and training
Development of national/ subnational criteria
Testing
Institutional arrangements and capacity building
Finalization of criteria and arrangements
Implementation
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3. Certification Criteria
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Types of Certification Criteria

• Management system criteria
• requirements on the management procedures
• set the desired status or dynamics in management
  and operational planning
• define monitoring and information systems
• Performance criteria
• qualitative or quantitative requirements on
  operations
• definition of forest management measures (inputs)
• definition of forest management outcomes

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Essential Elements of Forest Management System

• Resource assessment
• forest inventory (growing stock, mortality,
  increment)
• biodiversity assessment
• soil and water
• Management plan
• strategic aspects (management goals,
  production/protection areas, infrastructure,
  etc.)
• management plan (silvicultural and harvesting
  activities by compartment, timing)
• Operational plan
• annual harvesting, silvicultural and other
  operations
• Monitoring and evaluation
• operational records, cost accounting, surveys and
  studies
• Auditing
• internal and external auditing

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Carbon Measurement and Forest Management System
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FSC Requirements for Criteria

• 1. Compatibility with the 10 FSC Principles and
  Criteria
• 2. Criteria are in accordance with local
  ecological, social and economic circumstances
• 3. Used in conjunction with national and
  international laws and regulations
• 4. Harmonisation of national standards within a
  region

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FSC Principles and Criteria
Tenure
Compliance
Indigenous peoples
Plantations
FSC Principles and criteria
Benefits
Maintenance of forest conservation
Environmental impact
Monitoring and assessment
Management plan
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Carbon Sink-related Aspects in FSC Principles

• Performance requirements
• Benefits from the forest efficient use (5)
• Environmental impact maintain the ecological
  functions and the integrity of the forest (6)
• Management system requirements
• Management plan appropriate to scale and
  intensity of operations (7)
• Monitoring and assessment (8)

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Carbon Sink-related Aspects in FSC Criteria

• The rate of harvest not to exceed permanently
  sustained level (5.6)
• Ecological functions to be maintained intact,
  enhanced or restored (6.3)
• Description of the forest resources to be
  managed provisions for monitoring of forest
  growth and dynamics, maps (7.1)
• Monitoring and assessment procedures (8.1)
• Research and data collection on yield, growth
  rate, regeneration, forest condition, composition
  and changes in flora and fauna (8.2)
• Plantations prevention/minimisation of outbreaks
  of pests, diseases, fire and invasive species
  (10.7)

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PEFC Requirements for Criteria

• 1. Compatibility with Pan European CI, Pan
  European Operational Level Guidelines
• 2. Respect the relevant legal requirements,
  national policies and programmes
• 3. Cover relevant aspects of SFM in the country
• 4. Cover conditions of forests and elements of
  forests and administrative systems, which are
  relevant for the implementation of SFM

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Pan-European Operational-level Guidelines (PEOLG)
Wood production
Maintenance of forest
Biological diversity
Productive functions
Productive functions
Ecosystem health and vitality
PEOLG
Sustainable harvesting
Regeneration, trading harvesting
Forest resources and global carbon cycles
Increment
Socio-economic functions
Silvicultural measures
Inventory and mapping
Monitoring
Land conversion into forest
Quantity and quality of resources
Management plans
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Carbon Sink-related Aspects in Pan-European
Criteria

• Maintenance of appropriate enhancement of forest
  resources and their contribution to global carbon
  cycles (1)
• Maintenance of forest ecosystem health and
  vitality (2)
• Maintenance and encouragement of productive
  functions of forests (3)

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Carbon Sink-related Aspects in PEOLG (1)

• Performance requirements
• Management to safeguard the quantity and quality
  of the resource (1.2a)
• Silvicultural measures to be taken to maintain
  the growing stock (1.2b)
• Conversion of abandoned and treeless land into
  forest (1.2c)
• Improvement of the quality of forest resources
  (3.2a)
• Timely regeneration, tending and harvesting not
  reducing productive capacity (3.2b)
• Harvesting level not to exceed sustained rate
  (3.2c) and not cause lasting damage to ecosystems
  (4.2e)

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Carbon Sink-related Aspects in PEOLG (2)

• Management system requirements
• Inventory and mapping (1.1b)
• Management plans appropriate to the size and use
  of forest area (1.1c)
• Periodic monitoring and evaluation (1.1d)
• Monitoring of health and vitality of forests
  (2.1b)
• Planning for maintenance and enhancement of
  protective functions (5.1a)

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Carbon and SFM Certification Criteria

• Carbon storage in the growing stock of timber
  established and monitored but not measured in C
  terms
• Forest area under management established and
  monitored including land conversion
• Management system elements expandable for sinks

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4. SFM Certification and Auditing Procedures
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Summarised Procedure for SFM Certification
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Audit Procedure for SFM Certification
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Audit Guideline
Indicator
Verifier

• Audit guideline
• ensures uniformity of assessment
• guides internal data collection and audits
• preparation process important in defining the
  relevant, unambiguous
• parameters for each criteria
• consistency of assessment by individual auditors
• strengthening of monitoring (all aspects of SFM)
• identification of gaps (in knowledge, data,
  cooperation)

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Auditing Issues of SFM

• How well the chosen indicators describe the
  economic, ecological and social aspects of
  forestry?
• How they can be applied in forest management
  planning?
• How sensitive they are to the changes in forest
  management practices, habitat structures, etc.?

Wanted Limited number of indicators, cheap to
measure, easy to understand, highly correlated
with a state and expected development of species
diversity and forest condition.
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5. Institutional Arrangements
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Institutional Framework of SFM Certification
Arrangements
Working Group on Certification Criteria
National body - council - association
Accreditation body - national - international
Auditors
Certification body - national - international
Applicant
Chain of custody
Forest
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Accreditation

• Procedure by which an authoritative body gives
  formal recognition that a body or person is
  competent to carry out specific tasks. (ISO/IEC
  Guide 21996)

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Tasks of Accreditation Body

• Development of accreditation program
• Recognition of the competence of certification
  bodies and auditors
• Supervision of certification bodies
• In the case of FSC additionally
• Endorsement of national standards
• Ownership of the label
• Promotion

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Options for Accreditation Standards

• 1. ISO 14001 EMS standard (EN 45012)
• 2. Product certification (EN 45011)
• 3. Inspection bodies (EN 45004)
• 4. Standard on auditors (ISO 14012)
• Different implications for forest certification.

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Accreditation Standards
Accreditation body for certification bodies ISO
Guide 61/EN 45010
Accreditation body for laboratories ISO Guide
58/EN 45003
Accreditation body for inspection bodies ISO/IEC
TR 17010
Assessment of certification bodies ISO Guide
61/EN 45010
Assessment of laboratories ISO Guide 58/EN 45003
Assessment of inspection bodies ISO/IEC TR 17010
Cert. Body for products ISO Guide 61/EN 45010
Cert. Body for management systems ISO Guide 62/EN
45012ISO Guide 55
Cert. Body for personnel EN 45013
Testing and calibration laboratories ISO Guide
25/EN 45001
Inspection bodies ISO/IEC TR 17010-EN 45004
Certification of service products process
Certification of management systems
Certification of personnel
Testing and calibration
Inspection
Manufacturer/ supplier
Manufacturer/ supplier
Manufacturer/ supplier
Manufacturer/ supplier
Manufacturer/ supplier
Source K. Gustavsson
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Suitable Accreditation Bodies for Forestry

• Certification body for EMS ISO Guide 66,
  EA-7/02, Norm. Doc. (e.g., ISO 14001), regional
  forestry criteria
• Certification body for QMS EN 45012 (ISO Guide
  62), EA-7/01, Norm. Doc. (e.g., ISO 9001),
  regional forestry criteria
• Certification body for products EN 45011 (ISO
  Guide 65), EA-6/01, regional forestry criteria
• Inspection body EN 45004, EAL-G24, regional
  forestry system requirements

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Accredited Certification Body

• Independent and impartial
• Defined and public certification requirements
• Published certification rules
• Decides independently on certification rules,
  procedures, criteria and needed evidence
• Opinions of interested parties to be noted

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Existing SFM Certification Bodies

• 10 FSC-accredited bodies SGS (UK), Smartwood
  (US), SCS (US), Silva Forest Foundation (CAN),
  Luso Consult (GER), SABS (RSA), IMO (SWI), SKAL
  (NET), BM Trada (UK), Soil Association (UK)
• PEFC nationally accredited certification bodies
• Nationally ISO 9000/14001 accredited bodies, SFM
  accreditation programme under preparation (FIN)
• Other national schemes national accreditation
  bodies or to be defined

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Mandatory Certification

• Russia is the only country with a mandatory
  certification system but its added value is not
  yet established
• Some countries have considered incorporation of
  SFM standards into the legal requirements which
  could lead to mandatory certification, and
  eventually contracting out enforcement
• In order to arrest illegal operations independent
  auditing of forest management and the chain of
  custody is applied in some developing countries
  this practice is likely to expand

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6. Small-scale Forest Owners
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Concerns of Private Forest Owners on
Certification

• Constitutional rights
• Additional costs
• Participation and decision-making
• Credibility as landowners and managers

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Why Group Certification in Europe?

• 16 million forest owners involved, most with
  (very) small holdings and limited knowledge and
  direct involvement in forest management
  operations
• To ensure equitable access to private small-scale
  forest owners
• To reduce costs per forest holding
• To expand coverage of certification

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Underlying Elements for Group Certification

• Forest ownership structure (private, state,
  institutions)
• Organisations of forest owners and cooperative
  arrangements
• Role of forest owners in management decisions
• Role of forest administration in enforcement,
  extension and promotion
• Availability of monitoring data for alternative
  scales

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Approaches to Group Certification of Smallholders
Grouping of Individual Owners
Regional Grouping
Participating forest owners Non-participating
forest owners
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Comparison of Group Certification Models
Regional Group Certification

• Advantages
• large coverage
• involves all parties
• low costs
• uniform areas
• suitable for small holdings
• high rate of participation

• Disadvantages
• evidence on commitment
• need for information and training
• arrangements for data collection
• up-to-date register on forest holdings
• requires good organisation

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Comparison of Group Certification
ModelsCertification of Groupings of Individual
Owners

• Advantages
• clear commitment
• high awareness among participants
• membership registers
• link with management plans
• easy to start

• Disadvantages
• proceeds slowly
• scattered areas
• costs higher
• special effort to in-volve contractors and
  processors as not formally committed

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Group/Regional Certification Frameworks
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7. Value Added of SFM Forest Certification
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Value Added of SFM Certification

• Actual
• performance standards above and broader than
  legal requirements
• improved quality and environmental management
  systems
• market promotion
• mobilisation of all actors to implement higher
  standards (in regional group certification)
• Potential
• reduction in enforcement costs
• reduction of environmental risks
• access to financing and extension
• gaining public acceptance for forest utilisation
• leveraging effectiveness of other policy
  instruments
• benchmarking between substitutes

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8. Conclusions
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State of the Art of SFM Certification

• SFM certification is a well-established but still
  evolving instrument which is spreading fast
  worldwide
• Several elements require further definition in
  existing schemes (e.g. accreditation)
• Lack of mutual recognition arrangements between
  schemes reduces the effectiveness of SFM
  certification as a market-based soft policy
  instrument

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Synergies between SFM and Sink Certification (1)

• SFM certification verifies that
• the forest is under management (production and
  protection forests) cf. Art. 3.4
• the forest is sustainably managed (SD
  requirement)
• SFM certification
• does not directly verify carbon stocks and flows
  in the forest but
• it can verify land use changes and changes in the
  growing stock
• it can also verify the implementation of positive
  and negative measures having an influence on
  sinks
• SFM certification and carbon sink verification
  require separate protocols but these can be
  combined into a single audit procedure to save
  costs

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Sustainability Issue
Sustainable development (SD)
Land use regulation/planning
Sustainable forest management (SFM)
Carbon sinks
SFM verification can ensure that carbon sinks are
managed according to SD principles
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Synergies between SFM and Sink Certification (2)

• Audit procedures follow similar principles
• General procedures of existing accreditation
  bodies for ISO 9000 and 14000 series standards
  are likely to be applicable both for SFM and sink
  verification
• Small-scale private forest ownership represents a
  challenge for SFM certification and sink
  verification but appropriate group certification
  approaches can address this issue
• Combining SFM and sink verification could add
  value to both

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Synergies between SFM and Sink Certification (3)

• SFM certification has potential to assist in
  addressing some issues related to sinks and their
  verification
• permanence - sustainability assessment, FMU/group
  level commitment to maintain/increase carbon
  stock as part of SFM goals
• leakage - carbon as an SFM output can reduce
  incentive for leakage regional group
  certification incorporates large areas
• additionality - SFM as a possible baseline in
  managed forests
• uncertainty and risks - accurate inventories
  benefit both SFM and carbon verification SFM
  criteria address fire and other damage regional
  certification represent lower risk level than
  individual holdings
• biodiversity impacts - incorporated in SFM
  criteria
• transaction costs - economies of scale through
  combined auditing group certification accesses
  sink benefits for smallholders

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Synergies between SFM and Sink Certification (4)

• Harvested wood products and SFM certification
• SFM-based labelling requires chain-of-custody
  (COC) verification
• In accounting of sinks/flows in harvested wood
  products COC certification
• establishes the country of origin of traded
  products (e.g., for national reporting)
• allows joint labelling of sustainability and
  carbon neutrality of wood products (including in
  the case of bioenergy-based electricity and heat)

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Conclusions

• The accumulated experience on SFM certification
  can provide useful lessons for developing sink
  verification procedures
• Strong potential synergies exist between SFM
  certification and sink verification which can
  assist in reducing transaction costs and
  addressing open issues in the application of the
  UNFCCC and the Kyoto Protocol
• However, several details would have to be worked
  out before the two instruments can be effectively
  combined including policy issues and technical
  problems