EU Action Plan for Forest Law Enforcement, Governance and Trade The EU FLEGT Action Plan and “due...

EU Action Plan for Forest Law Enforcement, Governance and Trade

The EU FLEGT Action Plan The EU FLEGT Action Plan and “due diligence” proposal and “due diligence” proposal

Chamber of CommerceChamber of CommerceMoscowMoscow, 26 March 2010, 26 March 2010

John Bazill, Svetla AtanasovaJohn Bazill, Svetla Atanasova

DG Environment EDG Environment European Commissionuropean Commission


Illegal logging: what is at stake?

Loss in assets and revenues Loss of future trade opportunities Loss of development opportunities Loss of biodiversity Trade reputation Undermining rule of law Legitimate operators find it hard to

compete and long term investment decreases


EU response

EU FLEGT Action Plan (2003) FLEGT Regulation (2005)

Voluntary Partnership Agreement

2008: Proposal for a Regulation On obligations of operators placing timber

and timber products on EU market


Regional response

2005 Europe and North Asia FLEG Conference


EU FLEGT Action Plan

2003 FLEGT Action PlanAim: address illegal logging and related

trade combining supply and demand measures: Development cooperation Public procurement policies Private sector initiatives FLEGT voluntary partnership agreements Other legislative measures


Green Public Procurement

EU target of 50% of tenders for purchases of goods and services to have “green” criteria by 2010

Currently procurement policies for timber in Belgium, Denmark, France, Germany, Netherlands, UK,

Focus on sustainability, with legality as a minimum

Process of cooperation between EU Member States to develop more coherent procurement policies;

EU rules to ensure fair competition


Private Sector Measures

Trade Federation Codes of Conduct Company purchasing policies Beverage carton manufacturers 100%

traceability commitment by 2015 Customer/ lending policies of some banks


FLEGT VPAs

Bilateral partnership agreements between the EU and timber-producing countries: Partner country agrees to only export to EU

verified legal timber and timber products Sets up control and licensing systems to

provide guarantee of legality Independent monitor EU only accepts timber shipments

accompanied by FLEGT Licence Product coverage flexible


FLEGT Voluntary Partnership Agreements

Legality assurance elements Legality definition Chain of custody/ traceability Verification of legality Issuing of FLEGT Licence Independent monitor

+ capacity-building


FLEGT VPA

Stakeholder process an important element for the EU Practical definition of “legal timber” Often the first time all forest-relevant

legislation discussed together May lead to identification of areas for

simplification or reform


VPA State of Play

Information NegociationPre-negociation Implementation


Additional measures

FLEGT VPAs good but Limited coverage Possibility of shipping via a third country Demands for legislation to make it illegal to

sell illegal timber in the EU


“Due diligence” proposal I

Still a proposal !

Focus: The first placing timber products on the EU market.

Obligation: traders to demonstrate “due diligence” in ensuring the legality of the produce traded;

Applies to EU and imported timber and a wide range of timber products

Not a border measure


Due diligence proposal II

Legality: legislation applicable in country of harvest

legal right to harvest Taxes and fees linked to harvesting Compliance with forest management regulations

including relevant environmental laws Respect for third parties tenure/use rights Relevant trade and export rules


Due diligence proposal III

EU traders have to demonstrate due diligence by:

Having access to information on country of harvest, species, legal compliance

Conducting risk assessment/ mitigation

Identifying the country of harvest

Having access to information on legal compliance;


Due diligence proposal IV

Systems: traders may use their own risk management systems or use systems run by recognised organisations;

Exemptions: FLEGT and CITES timber;


Due diligence proposal – likely key issues in 2nd reading

“prohibition” (on sale of illegal timber) Scope of applicable legislation Obligations on EU operators selling timber

and after first placing on the market penalties labelling


What might this mean for Russian exporters?

Identify relevant Russian legislation and how to demonstrate compliance

EU importers may make new contract conditions

Traceability May have some impacts for Chinese

exporters to EU of finished products made from Russian timber


The process of adoption of the “Due Diligence” Regulation


The process of adoption of the “Due Diligence” Regulation - Commission

Proposal

Broad and lengthy public consultation process held between December 2006 and June 2008;

Commission adopted the legislative proposal in October 2008. Published in the Official Journal of the European Union;

The proposal is based Title XX Environment, TFEU; Due Diligence Regulation will be adopted through the

ordinary legislative procedure.


The process of adoption of the “Due Diligence” Regulation - First Reading

Proposal is forwarded to the European Parliament (EP) and to the Council; to the Committee of the Regions and the Economic and Social Committee;

EP delivered a position, introducing 75 amendments to the proposal in April 2009. This position was discussed and amended within the relevant parliamentary committee: ENVI, then adopted in plenary session by a simple majority;

The Council adopted by a qualified majority its position on 1st March 2010 and forwarded it to EP (255 votes out of 345 (73.91 %) and at least 14 Member States in

favor; at least 62% of the Union’s total population)); Commission adopted its Communication on the Council position on

9th March and forwarded it to EP.


The process of adoption of the “Due Diligence” Regulation – Second

Reading Triggered by the receipt in EP at its March 8th –11th plenary

session of both the Council Position and Commission Communication;

A three-month time limit is laid down by the Treaty (this period may be extended by a month)

Likely scenario: EP proposes amendments to the Council position by an

absolute majority of its Members and the text thus amended is forwarded to the Council and the Commission.

Time limits: the ENVI Cttee will discuss amendments in April; May and June; a second reading amendments should be voted on in the July 5-8 plenary session of the EP


The process of adoption of the “Due Diligence” Regulation – Council

Second Reading

Commission opinion on EP amendments: determines the type of vote necessary in the Council: if the Commission has given a negative opinion on at least one amendment, the Council will have to act unanimously as regards acceptance of the European Parliament’s position overall;

Council second reading - a three-month time limit following receipt of the European Parliament’s amendments (this period may be extended by a month);

Possible scenarios: Council approves the amended position the act will be deemed

to have been adopted (expected by end-November 2010); The Council does not approve the amendments to its position -

Conciliation.


Conciliation 1 President of the European Parliament convenes a meeting of the

Conciliation Committee within six weeks (may be extended by two weeks);

Composition: members of the Council and an equal number of members of the EP, as well as the Commissioner responsible;

Modus operandi: negotiations are conducted during informal trialogues involving teams of negotiators for each institution;

Decision-making: each delegation to the Conciliation Committee must approve the joint text in accordance with its own rules: qualified majority for the Council’s delegation and simple majority for the European Parliament’s delegation;

Commission’s role: the Commission plays a mediating role and frequently proposes compromises.


Conciliation 2 Elements for negotiation: negotiations focus on all the amendments

adopted by the European Parliament at second reading;. Time limits: the Treaty stipulates a time limit of six weeks (which may

be extended by two weeks) for approving a joint text. The Conciliation Committee produces a joint text; Possible Scenarios:

The European Parliament and the Council adopt the act in accordance with the joint text within six (or eight) weeks.. The legislative act is adopted.

Parliament and the Council do not approve the joint text within the stipulated time limit, the act is deemed not to have been adopted and the procedure is ended;

The Conciliation Committee does not produce a joint text. The act is deemed not to have been adopted and the procedure is ended.

IF Conciliation occurs the process will end by April 2011.


TIMELINE

Entry into force: on the 7th day following the publication

Application date: Commission: 2 years; Council: 30 months; EP: 1 year.


THANK YOU!

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