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Above left: IMM Indonesia correspondent Daru Asycarya at the IMM Jakarta conference Above right:Indonesian industry stakeholders want the role of the IMM to continue
and market impacts of FLEGT and FLEGT licensing.
In its role, the IMM has generated and analysed trade data and produced open access reports on its survey findings. It has relayed news via its website and newsletters and undertaken special sectoral and other studies on specifier and end-user views of FLEGT and its market influence. However, after seven years, its operating contract ends on December 31.
The recent trade consultations, says IMM, were held to gauge opinion on the quality and scope of its work, but the importance of the continuation of independent market monitoring was raised as a key topic by participating stakeholders. They also voiced ongoing support for FLEGT and FLEGT licensing in the light of the proposed EU Deforestation Regulation. The latter requires EU timber ‘operator’ importers and traders (except SMEs) to undertake due diligence to ensure timber and wood products placed on the EU market are not implicated in deforestation or forest degradation. It recognises a FLEGT Licence as proof of legality, but ends its status as a ‘green pass’ into the EU market, which currently exempts licensed goods from due diligence. “It would be a tragedy if the new EU Regulation undermined the success we had,” summarised one Indonesian stakeholder, according to the IMM report. Stakeholders at the consultation in Indonesia unanimously agreed that the IMM “has an important role in measuring the achievements and impacts of the VPA” and should continue in 2023 and beyond. Ideally, stakeholders felt that the project should not re-start from scratch in 2023, but build on the IMM’s past work and capacity.
Government representatives highlighted the importance of “information and data on the
EU market and EU policy” provided by the IMM, and found its website’s data dashboard and market dynamics information particularly useful. Private sector stakeholders appreciated especially that IMM was independent and considered its data as “high quality and valuable”.
At the Nantes consultation, stakeholder comments included that IMM had delivered “good and useful market data, feedback and inputs” of relevance to businesses and trade bodies and valued as a reference in their work. Its surveys were said to have provided “a unique opportunity for the trade to get its voice heard by EU policy makers”. On the future development of the role of an independent market monitor, representatives of the government and private sector groups in Jakarta said it should provide more in- depth analysis of trade between Indonesia and the other markets outside the EU with legality and/or sustainability requirements on timber imports and highlight opportunities created in these by FLEGT Licences.
Another view that came up at the consultations was that a monitor should get more involved in communication and awareness raising of FLEGT. This is currently not in the IMM’s mandate, but Indonesian stakeholders felt that its role should include
wider outreach and advocacy functions. According to the IMM’s report, the impression prevailed that EU institutions had “failed to promote licensing”, both to member states and to businesses within the EU. Ghanaian delegates took up the same theme. “Awareness of the quality of a FLEGT Licence is limited by the fact that only Indonesia is licensing, so more needs to be done to let the market know what we’re talking about,” one stakeholder is reported as saying. “And as market reception for licensed timber warms, other suppliers will be encouraged to progress their VPAs and start licensing. We must support the market for FLEGT-licensed timber.”
“FLEGT needs apostles,” commented another delegate.
Currently 15 countries are engaged at some stage of the VPA process; Indonesia, Malaysia, Vietnam, Laos, Thailand, Cameroon, Ivory Coast, Liberia, Central African Republic, the Republic of the Congo, Gabon, Democratic Republic of the Congo, Ghana, Honduras and Guyana. ■
The full reports on the Indonesia, Nantes and Ghana IMM consultations can be found at:
www.flegtimm.eu
FLEGT AND THE UK
Until 2021 the IMM also undertook surveys of the UK to gauge market perceptions of FLEGT and reception of FLEGT-licensed timber and wood products from Indonesia. It ceased this work when Brexit took effect. However, after the EU referendum, the UK concluded a bilateral FLEGT VPA with Indonesia. This is effectively a carbon copy of the EU VPA, so also mandates market monitoring as part of the agreement.
www.ttjonline.com | November/December 2022 | TTJ
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