Research Event
Chatham House, London
Toby Fisher, Barrister, Landmark Chambers; Representative of the South African Human Rights Commission, Marikana Commission of Inquiry
Gary White, Director of Operations, Ineqe Group; Expert Witness on Policing, Marikana Commission of Inquiry
Chair: Muzong Kodi, Associate Fellow, Africa Programme
The Marikana Commission of inquiry was appointed by South Africa’s President Jacob Zuma following more than 40 deaths (with many others left injured) after police opened fire on striking miners at Marikana in August 2012.
The massacre was reported as the worst use of lethal force by the South African Police Service since 1994, and brought issues of labour dispute resolution, public-order policing and accountability into stark relief.
Speakers will discuss the Commission's recently-published report and its potential impact on industrial stakeholders, as well as the wider consequences for South Africa.
Invitation Only Research Event
Chatham House, London
While there is much anecdotal information about the impact of mining on forests, no comprehensive review of minerals as a forest risk commodity has yet been undertaken. Indications are that mining activities are an important driver of deforestation in many countries, and that the impact of mineral extraction on forest resources is likely to increase with growing global demand for minerals.
This event will discuss the state of knowledge on the impact of mining on forests, identify the available policy tools aimed at supporting sustainable supply chains, and determine the data needs to facilitate improved monitoring, control and regulation of the sector.
Attendance at this event is by invitation only.
Members Event
Chatham House, London
Professor Dieter Helm CBE, Professor of Energy Policy, University of Oxford
Chair: David Shukman, Science Editor, BBC News
As the global population and economy continues to grow, the international community faces the challenge of accommodating significant growth over the coming decades without a major loss of biodiversity and natural capital, the world’s stock of natural resources. Presenting an economic analysis of these natural assets, Dieter Helm will argue that natural capital and environmental concerns should be placed at the core of economic policy. He will set out a framework for sustainable growth, outlining key measures that could help to preserve the environment while also enabling economic growth.
Invitation Only Research Event
Pew Charitable Trust Center, Washington DC
This transatlantic dialogue will bring together a number of stakeholders, focused on options for reducing deforestation in agricultural supply chains. Key questions will be asked such as: What are the current and projected patterns of supply and demand for key commodities, and their impacts on forests? Who are the key producers and what is their relative impact on forests? How are these patterns likely to change in the future? What are the key points of leverage in these supply chains? What is the scope of potential action by the US, the EU, and its member states?
The current status and future trends in the global production and trade in major agricultural commodities will also be examined, along with the key leverage points for influence. Global forest footprint of major agricultural commodities and deforestation hotspots will be discussed and key drivers of deforestation will be examined. Finally, the potential roles of government in reducing commodity-driven deforestation will be analysed to gain a better understanding of the potential for state action in the EU and the US contexts.
Attendance at this event is by invitation only.
Invitation Only Research Event
Chatham House, London
This event will focus on the trade in Pericopsis elata (Afrormosia/Assamela) harvested in West and Central Africa, and will be co-chaired by Emmanuel Heuse, FLEGT facilitator in the Democratic Republic of Congo.
This workshop is supported by the Climate and Land Use Alliance, the UK Department of International Development and the European Union Action to Fight Environmental Crime.
Attendance at this event is by invitation only.
21 January 2015
This paper finds high levels of deforestation and widespread problems in Malaysia, particularly in the state of Sarawak.
This paper is part of a broader Chatham House study which assesses the global response to illegal logging and the related trade.
There has been limited progress in tackling illegal logging and related trade in Malaysia since 2010. Widespread problems remain, particularly in the state of Sarawak. There are high levels of deforestation throughout the country: expansion of timber, pulp and agricultural plantations (including oil palm and rubber) is the main driver of forest loss.
Forest policy-making in Malaysia involves both the federal and state governments, but the states have prerogative rights to develop their own policies on land and forests. This poses challenges, not least since governance of the forest sector varies quite significantly from one region of the country to another.
The government has been negotiating a Voluntary Partnership Agreement (VPA) with the EU since 2007. Negotiations stalled for a number of years but resumed in 2012 without the participation of Sarawak. Concerns remain among stakeholders about the limited recognition of indigenous peoples’ rights by the government, as well as about corruption and the lack of transparency.
Awareness of illegal logging and related trade is increasing in the private sector, although the area of natural forest concessions certified as being under sustainable production remained virtually unchanged during the period 2008–12.
Asia is the major export market destination for Malaysia’s timber products. However, both the US and the EU import significant volumes of wood-based products from Malaysia too.
The Malaysian Anti-Corruption Commission (MACC) has recently stepped up investigating corruption in the forest sector. In Sarawak, an intensified focus on combatting illegal logging could signal a turning point for the state’s forest sector.
In order to build on its response to illegal logging and related trade to date, the Malaysian government should fully engage with the voluntary partnership agreement process and improve multi-stakeholder participation. Transparency in decisions about forest allocation needs to be significantly improved and greater recognition accorded to the rights of indigenous peoples.
More concerted efforts are required to tackle high-level corruption – for example, through strengthening the MACC. At the same time, the government should consider options for an independent monitor for the forest sector as a means of improving forest governance.
21 January 2015
According to this paper, corruption continues to be a dominant feature of Cameroon’s forest sector, and there is an apparent lack of political will to institute change.
This paper is part of a broader Chatham House study which assesses the global response to illegal logging and the related trade.
This assessment of the extent of illegal logging in Cameroon and the response to this issue suggests that progress has stalled since 2010. The reform of the legislative framework for the forest sector has yet to be completed; and while there have been improvements in the availability of forestry information, there remain many gaps. Furthermore, the principle of transparency has yet to be broadly accepted within the government. Enforcement is weak and information management systems are deemed inadequate. Most important, corruption remains widespread and the political will needed to drive change is felt to be lacking.
While there is evidence of progress in the private sector – the area of forests with legality verification and certification has increased – illegal activities are rife throughout the forest sector. Half of all timber production is estimated to come from the informal artisanal sector – mainly supplying the domestic market. However, illegal activities are also common in supply chains for export: timber originating from ‘small permits’ and sales of standing volume permits is thought to be particularly problematic. This is of particular concern, as the supply of timber from such permits is expected to increase owing to the growing pressure on forests from other sectors.
Since 2000 trade has shifted away from sensitive markets: the EU market’s significance as a destination for Cameroon’s exports of timber-sector products has decreased, while China’s significance has increased enormously. This has important implications for strategies on how best to tackle illegal logging in Cameroon.
In order to make further progress, markets for legal timber need to continue to be developed in key consumer countries – which, in the case of Cameroon, are now both the EU and China. Within Cameroon, further analysis of the political economy of the forest sector is required. Attempts to tackle corruption should be reinforced, and this would be facilitated by examining the experience of anti-corruption efforts elsewhere in the world. Further improvements to transparency are needed; the establishment of a new independent observer will be important in achieving this goal.
The next stages of legal reform will require broad consultation among stakeholders, in particular small-scale producers as well as local communities and indigenous peoples. Efforts to promote a legal domestic market should be intensified, including more extensive training and outreach for small-scale producers and processors. Finally, to improve enforcement efforts, continued investment in the training of enforcement agents and the provision of adequate resources are required.
Invitation Only Research Event
Chatham House, London
Moïse Katumbi Chapwe, Governor, Katanga Province, Democratic Republic of the Congo
Katanga Province in the Democratic Republic of Congo (DRC) is immensely wealthy in minerals such as copper, uranium and gold, and is home to around fifty per cent of the world’s cobalt reserves. Rising outputs from the province’s copper and cobalt mines have contributed to the DRC’s average GDP growth of 8.5 per cent over the past two years. However, despite visible infrastructure developments in the province to service the industry, few Congolese are benefiting from the revenues and the economy is yet to diversify.
Moïse Katumbi Chapwe, the governor of Katanga Province, will discuss his approach to resource governance and will examine how regional governments can capitalise on resource revenues to improve livelihoods.
Attendance at this event is by invitation only.
Research Event
Chatham House, London
Dr David Zweig, Chair Professor, Division of Social Science, Hong Kong University of Science and Technology
Chair: Dr Michal Meidan, Associate Fellow, Asia Programme, Chatham House
China’s resource diplomacy transpires in a world still dominated by the United States. Drawing on extensive research on global energy politics, the speaker will argue that despite Chinese claims that the US is instrumentalizing energy to contain its rise, there is little evidence to suggest that the latter intends to use the ‘oil weapon’.
Invitation Only Research Event
The India Habitat Centre, New Delhi, India
Dr Ashwini Swain, Fellow, CUTS Institute for Regulation and Competition
Glada Lahn, Senior Research Fellow, Energy, Environment and Resources, Chatham House
Dr Gareth Price, Senior Research Fellow, Asia Programme, Chatham House
As part of the international dialogue on Valuing Vital Resources, this seminar will convene policy-makers, scholars, technical practitioners, NGOs, multilateral agencies and the media to discuss recommendations for new policy approaches in India to reorient energy and water use in agriculture. The aim is to gain input to practical policy proposals and identify the work now needed to make them robust.
Attendance is by invitation only. Please note this event is held in New Delhi, all times are local.
This event is organized together with the CUTS Institute for Regulation & Competition (CIRC).
19 December 2014
This research paper sets out recommendations for enhanced dialogue and intensified international cooperation that could significantly improve the functioning of global mineral markets.
Enhanced dialogue and intensified international cooperation in four areas could significantly improve the functioning of global mineral markets:
Research Event
Chatham House, London
The discovery of valuable natural resources such as hydrocarbons or minerals in conflict-affected states or disputed regions can be a double-edged sword. While economic growth may help overcome conflict and consolidate peace, much of the academic literature links the economic, social and environmental impacts of resource development with an increased risk of violent conflict between or within fragile states.
Recently however, the role of business in advancing peace has emerged as a topic of increasing discussion in academia and in forums such as the UN Global Compact. Resource development has also become a key objective for donor development strategies in fragile states such as Afghanistan, Somalia and Myanmar, on the assumption that extractive sector development can contribute to stability and security.
This event will gather key stakeholders from business and policy to investigate if and where natural resource development has contributed to peace-building, built cooperation among stakeholders or helped to resolve, rather than exacerbate, tensions. If so, it will endeavour to draw out common, replicable lessons of what made these developments successful from a peace-building perspective.
The event will be held under the Chatham House Rule.
10 December 2014
While the Vietnamese government has made some progress towards tackling illegal logging and the associated trade, there has been little progress in policy reform, and there is still no legislation regulating illegal timber imports.
This paper is part of a broader Chatham House study which assesses illegal logging and the associated trade.
The Vietnamese government has made some progress towards tackling illegal logging and the associated trade. It has negotiated a voluntary partnership agreement (VPA) with the EU, a process that has prompted a review of relevant legislation and improved the government’s engagement with civil society. In addition, it has signed agreements with Lao PDR and Cambodia in which it has committed to coordination on forest management and trade. However, there has been little progress in policy reform, and there is still no legislation regulating illegal timber imports.
There is a high level of awareness of illegal logging and associated trade within the private sector: Forest Stewardship Council (FSC) chain-of-custody (CoC) certification has increased rapidly, particularly in the furniture sector. But efforts are hampered by poor access to third-party verified raw material.
Both trade data discrepancies and analysis of trade flows indicate that illegal trade remains a serious problem. The volume of imports of wood-based products at a high risk of illegality is estimated to have increased since 2000, while its share in the volume of total imports of wood-based products gradually declined until 2009 and then increased slightly: they are estimated to have comprised 18 per cent of the total by volume in 2013.
In order to build on its response to illegal logging and related trade, the government should establish a legal responsibility for Vietnamese importers to ensure that their timber sources are legal. Furthermore, to increase domestic demand for legal products, it should establish a public procurement policy requiring the use of verified legal products. Within the framework of the VPA, broad and effective multi-stakeholder engagement will be vital to ensure that a robust timber legality assurance system is developed. In addition, proactive partnerships should be forged with high-risk supply countries to establish legality criteria and indicators that reflect the full scope of the relevant legislation in those countries.
10 December 2014
Although the Chinese government and private sector have taken action to tackle illegal logging and associated trade, there is evidence to suggest illegal trade remains a significant problem.
This paper is part of a broader Chatham House study which assesses illegal logging and the associated trade. The Chinese government has made notable progress in its efforts to tackle illegal logging and the associated trade. This has included the development of a draft national timber legality verification system (TLVS) and its active engagement with a number of consumer countries. The government’s plans to establish bilateral trade agreements with producer countries are also encouraging, although no formalized commitments have yet been made. Reflecting the growing awareness of the impact of Chinese companies overseas, the government has also been developing further guidance to promote sustainable forest products trade and investment.
The private sector is also taking action, with continued growth in the uptake of chain-of-custody (CoC) certification. Industry associations have been promoting legal and sustainable sourcing, and they will have an important role to play in testing the draft TLVS.
These steps are likely to have had an impact on the volume of illegal wood-based products being imported into China. However, trade data discrepancies and analysis of trade flows both indicate that illegal trade remains a significant problem. While imports of high-risk products are estimated to have declined since 2000, these are reckoned to comprise 17 per cent of the total by volume in 2013. This proportion is high compared with other timber-importing countries examined in this assessment.
In order to build on its response to illegal logging and related trade, the Chinese government should establish binding regulations and stringent controls on the import and export of illegal wood-based products. The draft TLVS should be further developed, including through pilot projects with timber-exporting countries and effective consultation with industry, civil society and other consumer-country governments. The government’s procurement policy should be strengthened through the clarification of its legality and sustainability requirements, the inclusion of a wider range of products within its scope, and the development of a robust mechanism to monitor compliance.
Increased training for the private sector on due diligence, market regulations and legality requirements in consumer countries is required to stimulate further action by industry, and the work to elaborate further guidelines for companies operating overseas in the forest products trade should be continued. Awareness-raising initiatives for Chinese consumers should also be extended, in order to increase demand for verified legal wood-based products.
1 December 2014
OPEC is making the same fundamental mistakes it made during the 1980s oil price collapse.At the end of November amidst much speculation, OPEC kept its formal production level of 30 million barrels per day in what appears to be an oversupplied market. This controversial decision was taken because cutting production would cede market share to the growing production flooding out of the US. The immediate result was a significant fall in oil prices.
The 'official' logic behind the decision was twofold. First, it was contended that weak demand was temporary because of slow economic growth and would recover next year. Second, the argument went, lower prices would close high-cost production from the shale technology revolution. In other words, current prices were too low and the market, allowed to operate, would rectify this. Many (rightly) saw this decision as a significant landmark in global oil markets. In effect, OPEC had ceded any semblance of control over the market and prices, instead launching the oil price onto a sea governed by market forces.
Those with knowledge of oil market history will see this as a very dangerous gamble based on two serious misconceptions. After the oil shocks of the 1970s, the market was in a similar position as now. Demand was falling and non-OPEC supply was rising. In response, to defend prices, OPEC (but effectively Saudi Arabia) cut production because the fall in demand was seen as temporary as a result of global recession and would shortly recover. It did not. Then when the oil price eventually collapsed in 1986, the OPEC view was that lower prices would quickly reverse as they would shut in high-cost production, specifically in the North Sea. These views in the 1980s were conceptual mistakes, still relevant today and likely to undermine OPEC’s current strategy. The mistakes are a failure to understand the difference between an income effect and a price effect on demand and the failure to understand the difference between a break-even price (what investors consider when deciding whether to invest in new producing capacity) and a shut-in price (what existing operators consider will cover variable costs and if not, will stop production from existing wells.).
While some of the fall in demand in the 1980s was because of the recession (an income effect), some was due to genuine demand destruction as the result of much higher prices (a price effect). Recession-induced lower demand reverses itself when the global economy recovers, but demand destruction is permanent. Today, part of the fall in oil demand is because oil prices have inexorably risen (from $32.40 in 2002 to $108.66 in constant 2013 dollars). Furthermore, many sources of recent oil demand growth, notably China and India, have been moving from subsidized domestic oil prices to higher border-based prices. OPEC’s expectations of quickly recovering demand may be optimistic as they were in the early 1980s.
OPEC is hoping lower break-even prices will reduce shale production. Various estimates for the US shale break-even price have been bandied around (usually in the realm of $60-$80 per barrel). Most are far too high, because they ignore the fact that the recent boom in shale operations has grossly inflated project costs. If investment in new capacity slows, then project costs − and hence the break-even price − will fall.
However, in terms of OPEC’s current strategy, the break-even price is the wrong metric. What matters in the next few years is the shut-in price. After the 1986 price collapse, a number of stripper wells in US (with high variable costs) did close, but the loss of production was minimal. North Sea production, which had been OPEC’s prime target, was hardly affected and actually increased in 1987. The current level of shut-in price for shale oil is again debatable, but almost certainly is well below $40 per barrel. Thus it will be some time before existing shale oil production falls, even if prices stay low.
Should the oil price fall towards variable costs, threatening shale supply, it will be the OPEC producers who must blink first. They will then try to take back control of the market, if they can.
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25 November 2014
This paper accompanies a series of assessments on China, France, Japan, the Netherlands, the UK, the US and Vietnam, providing details on how the estimates of the level of illegality of imports of wood-based products into those countries were derived.
This paper accompanies a series of Chatham House assessments on China, France, Japan, the Netherlands, the UK, the US and Vietnam and provides details on how the estimates of the level of illegality of imports of wood-based products into those countries were derived. The assessments are part of a research project that monitored levels of illegal logging and related trade in selected consumer, producer and processing countries in order to evaluate the effectiveness of efforts to tackle this problem.
The paper describes the methodology for estimating the levels of wood-based products at high risk of illegality that are being imported into consumer and processing countries. The methodology was developed in order to provide quantitative estimates of the scale of such imports and to assess how they have changed over time. The figures adopted for the assessments are based on the best available evidence; but, given the challenges of quantifying levels of illegal logging and the limited information available for some countries, they should not be regarded as definitive. Rather, they indicate the likely levels of illegality and, perhaps more important, how they may have changed over time.
25 November 2014
While the Netherlands has been one of the most proactive European countries in addressing illegal logging and the related trade, a key challenge will be effective enforcement of the EU Timber Regulation given the country’s role as a major conduit for timber to the rest of Europe.
This paper is part of a broader Chatham House study which assesses illegal logging and the associated trade.
The Netherlands has shown a strong response to the problem of illegal logging and related trade: the government played an active part in the development of the EU’s FLEGT Action Plan, and has been supporting the negotiation and implementation of Voluntary Partnership Agreements with producer countries.
The government has also been promoting the production and consumption of sustainable timber. It has a comprehensive procurement policy, established the Sustainable Trade Initiative and helped to launch the European Sustainable Tropical Timber Coalition.
As a result both of these government actions and of promotion by the private sector, there is a high proportion of certified wood-based products on the Dutch market as well as a large number of companies with chain-of-custody certification. A high level of media coverage on the issue of illegal logging also indicates that there is widespread awareness of this issue.
This response is thought to be partly responsible for the decline in imports into the Netherlands of timber-sector products likely to be illegal, currently estimated to comprise two per cent of the total. However, there has been a significant shift in the types and sources of high-risk products coming into the country, reflecting changes in the global timber industry: a growing proportion is coming from China and comprises more highly processed products such as furniture.
While the Netherlands has been one of the most proactive European countries in addressing illegal logging and the related trade, further action could be taken. A key challenge will be effective enforcement of the EU Timber Regulation given the Netherlands’ role as a major conduit for timber to the rest of Europe. Systematic monitoring of its timber procurement policy is also required.
25 November 2014
Though the Lacey Act is an important piece of legislation for tackling the trade in illegal timber, its impact on levels of illegal imports into the US is uncertain.
This paper is part of a broader Chatham House study which assesses illegal logging and the associated trade.
Efforts to tackle the problem of illegal logging and related trade have continued in the United States; the Lacey Act amendments in 2008 have influenced behaviour within the industry and high-profile enforcement cases have increased awareness of the issue.
The impact of the Lacey Act on levels of illegal imports into the US is uncertain. The proportion of imports of high-risk timber-sector products is estimated to have declined since 2010, while that of paper-sector products has stayed at about the same level: in 2013, high-risk imports were estimated to comprise five per cent and two per cent of the totals respectively. However, there has been a significant shift in the types and sources of high-risk products coming into the country, reflecting changes in the global timber industry: a growing proportion is coming from China and comprises more highly processed products such as furniture.
Though the Lacey Act is an important piece of legislation for tackling the trade in illegal timber, several implementation and enforcement challenges have arisen since the amendments were enacted, in particular the interpretation of ‘due care’. Improvements to the procedure for processing import declaration forms are also required to ensure effective enforcement of the act. In order to effectively tackle illegal logging and the related trade, the US government should also continue to encourage its trading partners to strengthen their forest governance.
25 November 2014
The UK has been one of the most proactive European countries in addressing illegal logging and the related trade, and of the five consumer countries studied, it scored highest in the assessment of laws, regulations and policies related to this issue.
This paper is part of a broader Chatham House study which assesses illegal logging and the associated trade.
The United Kingdom has shown a strong response to the problem of illegal logging and related trade; of the five consumer countries studied, it scored highest in the assessment of laws, regulations and policies related to this issue.
The government played an active part in the development of the EU’s FLEGT Action Plan and has subsequently been supporting the negotiation and implementation of voluntary partnership agreements with producer countries. The government has also been providing a significant amount of funding, through the Forest Governance, Markets and Trade Programme, to initiatives aimed at tackling the trade in illegal timber and improving forest governance.
The private sector in the UK has also been proactive, as reflected in the increase in the number of companies with chain-of-custody certification and in the amount of certified wood-based products on the UK market. A high level of media coverage of illegal logging also indicates that there is widespread awareness of this issue.
This response is thought to be partly responsible for the decline in imports into the UK of timber-sector products likely to be illegal, currently estimated to comprise three per cent of the total. However, there has been a significant shift in the types and sources of high-risk products coming into the UK, reflecting changes in the global timber industry: a growing proportion is coming from China and comprises more highly processed products such as furniture.
While the UK has been one of the most proactive European countries in addressing illegal logging and the related trade, further action could be taken. Cooperation with the Chinese government and its private sector would be beneficial. Systematic monitoring of the UK’s timber procurement policy is also required, and the efforts made to date to enforce the EUTR will need to be maintained.
25 November 2014
The response by the French government, as well as increased sourcing of sustainably certified products by the private sector, is thought to have been a factor in the decline in imports of timber-sector products likely to be illegal.
This paper is part of a broader Chatham House study which assesses illegal logging and the associated trade.
The French government has been engaged on the issue of illegal logging and the related trade: the government played an active part in the development of the EU Forest Law Enforcement, Governance and Trade (FLEGT) Action Plan and has been supporting the negotiation and implementation of voluntary partnership agreements (VPAs) in producer countries.
The government has also been actively promoting the production and consumption of sustainable timber, providing funding for forest-management related projects in producer countries and establishing the National Group on Tropical Forests to facilitate a multi-stakeholder dialogue on forest policy. Media coverage of illegal logging has increased considerably since 2007, indicating greater awareness of the issue among the general public.
This response, as well as increased sourcing of sustainably certified products by the private sector, is thought to have been a factor in the decline in imports into France of timber-sector products likely to be illegal. The proportion of timber-sector imports at high risk of illegality is currently estimated to be two per cent. The proportion of highly processed products such as furniture has grown significantly, as has the share coming from China, with a parallel decline in imports of logs and sawnwood from central and West Africa.
However, there remain a number of areas for improvement by the government. In particular, with legislation now in place to implement the EUTR, this should be rigorously enforced and sufficient resources put in place to enable this. Furthermore, the effectiveness of the sanctions regime should be monitored. The planned review of the public procurement policy should be undertaken, and monitoring of its implementation should also be introduced.
25 November 2014
Japan's legality verification system, known as the goho-wood system, is not only voluntary but has serious design weaknesses which limit its ability to eliminate illegal products from Japan’s market.
This paper is part of a broader Chatham House study which assesses illegal logging and the associated trade.
The Japanese government has continued to engage on the issue of illegal logging and related trade, but its approach remains focused on ‘soft’, voluntary measures rather than establishing legally binding requirements. It has been actively promoting the country’s legality verification system, known as the goho-wood system, and this is helping to raise awareness of the issue of illegal logging in Japan. However, the system is not only voluntary but has serious design weaknesses which limit its ability to eliminate illegal products from Japan’s market.
While the number of companies registered as goho-wood suppliers has increased, this may be occurring at the expense of sustainability certification, which is more demanding and expensive. The number of companies in Japan with FSC chain-of-custody certification remains low.
Japan’s imports of timber-sector products at high risk of illegality are estimated to have declined significantly since the start of the century, though levelling off since 2010, while imports of high-risk paper-sector products are estimated to have gradually increased over this period. Levels of high-risk imports remain significantly above those of the other consumer countries reviewed. These are currently estimated to comprise 12 per cent and seven per cent of total timber- and paper-sector products respectively.
It is recommended that the government develop further legislation to control imports of illegal products, including a requirement for risk assessment and mitigation as well as third-party monitoring. Such legislation would also help support the government’s policy to promote the domestic timber industry. Until such legislation is passed, Japanese industry should implement more robust risk assessment and mitigation procedures.
29 October 2014
The government of Lao PDR has taken steps to reduce illegal logging and associated trade but significant implementation and enforcement challenges remain. The country also faces pressure on forest resources from agricultural plantations, mineral extraction and infrastructure development.
This paper is part of a broader Chatham House study which assesses the global response to illegal logging and the related trade.
The government of Lao PDR has taken a number of steps to reduce illegal logging and associated trade. Most notably, it has made progress towards negotiations with the EU on a voluntary partnership agreement (VPA). This has prompted the establishment of a multi-stakeholder steering committee and a technical working group and the revision of several land and forestry laws to include provisions related to the Forest Law Enforcement, Governance and Trade (FLEGT) Action Plan.
However, significant implementation and enforcement challenges remain. The legal framework is unclear and, at times, contradictory. Implementation by central and local governments is inconsistent, and internal mechanisms to oversee government decisions are limited. Moreover, enforcement capacity is weak and there is a lack of transparency. The available evidence suggests that illegal practices are widespread in the forest sector.
Awareness of the issue of illegal logging has improved, including in the private sector. The area of natural forest certified under the Forest Stewardship Council (FSC) scheme has been gradually increasing in recent years. However, a key challenge for the Lao forest sector is pressure on forest resources from agricultural plantations, mineral extraction and infrastructure development.
In order to make further progress in tackling illegal logging, the government should push ahead with preparations for the VPA negotiations, ensuring that the lead agencies are appropriately engaged and resourced to implement a credible dialogue process. Data on the allocation and management of forest resources should be systematically collected and made available to the public in order to enable effective forest monitoring. In addition, accountability mechanisms, including anti-corruption strategies, should be clearly defined and implemented by all relevant ministries to ensure that forest resources are exploited legally and for the benefit of the country.
29 October 2014
The Ghanaian government has taken a number of important steps to reduce illegal logging and related trade but a number of enforcement and administrative challenges remain, as well as broader governance challenges including corruption.
This paper is part of a broader Chatham House study which assesses the global response to illegal logging and the related trade.
The Ghanaian government has taken a number of important steps to reduce illegal logging and related trade, most notably with the signing of the Ghana–EU voluntary partnership agreement in 2009. This agreement has prompted improved multi-stakeholder dialogue within the sector as well as a process of legal reform. Considerable effort has also been put into the development of a timber legality assurance system, which has been successfully piloted. However, a number of enforcement and administrative challenges remain, particularly in relation to tenure and land and resource rights, as well as broader governance challenges including corruption.
Awareness of the issue of illegal logging has improved among the private sector, and the area of natural forest that is verified as legally compliant has increased considerably in recent years. However illegal practices remain widespread in the country. Illegal chainsaw milling is prevalent, predominantly supplying the domestic market. Illegality is also an issue in supply chains for export, albeit at a lower level. Trade data discrepancies indicate that illegal trade is a problem, in particular for tropical logs, and there is a lack of clarity over the legality of many logging permits.
A key challenge for the country is its declining resource base. The forest sector has shrunk considerably over the last 15 years as a result of this, and the situation looks set to worsen. Wood-balance estimates indicate that timber consumption considerably exceeds sustainable harvesting levels.
In order to make further progress in tackling illegal logging, the process of legal reform and efforts to improve enforcement need to continue. Priorities include: a review of fiscal policies for the sector; improvements to land administration; completion of the conversion process of logging rights; and implementation of the legality assurance system across the country. Efforts must also continue to address the challenge of illegal chainsaw milling, which will require a range of approaches from legal reform to developing alternative livelihood strategies.
29 October 2014
Brazil's government has made slow progress in tackling illegal logging and associated trade, and illegality, corruption and fraud remain widespread in the country's forest sector, despite a relatively strong legal framework.
This paper is part of a broader Chatham House study which assesses the global response to illegal logging and the related trade.
The Brazilian government has made slow progress in tackling illegal logging and associated trade since the previous Chatham House assessment, in 2010. Illegality, corruption and fraud remain widespread in the forest sector, despite a relatively strong legal framework. Considerable efforts have been made to improve law enforcement in the sector but these have been hampered by poor coordination between the relevant government agencies, limited resources and inadequate penalties. At the same time, attempts to involve a range of stakeholders in policy discussions and decision-making have stalled.
The private sector’s response to illegal logging is perceived to be weak, despite the reasonably high uptake of sustainability certification schemes. Initiatives are under way aimed at promoting a legal and sustainable market for timber within Brazil, with the engagement of the private sector. However, such undertakings are modest given that the majority of the country’s timber production is consumed domestically.
Considerable investment in systems to monitor timber and revenue flows is required to tackle fraud, while the regulation of sawmills needs to be tightened to reduce the scope for the laundering of illegal timber. The imposition of appropriate sanctions and ensuring the collection of financial penalties could help to fill the gap in resources that is impeding effective enforcement.
Clarification of the regulatory framework is needed – in particular, those regulations related to the fiscal regime for the forest sector – as is the simplification of the processes for approving forest management plans. The latter is a priority if smallholders are to be able to engage in legal and sustainable forest management. An extensive programme of outreach and training is a prerequisite for ensuring such engagement. Finally, efforts to promote legal timber on the domestic market should be intensified and expanded.
29 October 2014
The Indonesian government has taken a number of important steps to tackle illegal logging and the associated trade but implementation and enforcement challenges remain, in particular a poorly functioning decentralized governance system, persistent corruption and insufficient transparency of information.
This paper is part of a broader Chatham House study which assesses the global response to illegal logging and the related trade.
The Indonesian government has taken a number of important steps to tackle illegal logging and the associated trade, most notably with the ratification of the Indonesia–EU FLEGT voluntary partnership agreement in 2014. The process of negotiating this agreement has contributed to the introduction of a national timber legality verification system (SVLK), clarification of the relevant legal framework and significantly improved engagement with stakeholders in the forest sector. There have also been important developments in recognizing indigenous peoples’ tenure rights to forest land and resources.
However, implementation and enforcement challenges remain. In particular, progress is hampered by a poorly functioning decentralized governance system, persistent corruption and insufficient transparency of information.
The private sector has responded positively, with growing awareness of the issue of illegal logging. While uptake of voluntary legality verification has recently declined, with the need for this now circumvented by the introduction of the SVLK, the area of forest certified as being managed sustainably increased in 2012.
An analysis of data on timber production and consumption suggests that illegal logging has decreased since 2000, and the findings of the expert perceptions survey tend to confirm this for the period 2010 to 2013. In part, these findings reflect a shift towards plantations and away from natural forest harvesting. However, legal ambiguity over the permitting process for forest conversion may mean that levels of illegality are higher than these data suggest.
Building on the government’s response to illegal logging will require effective implementation of the SVLK including addressing identified shortcomings. Improved land-use planning to support effective control and monitoring of forest conversion is also needed. Increased resources and training for enforcement officials are required, while efforts to tackle corruption in the sector should be stepped up. The government should clarify the rights of indigenous peoples through concrete actions such as developing clear processes for mapping and registering their land claims.
Research Event
Chatham House, London
Charles Wanguhu, Coordinator, Kenya CSO Platform on Oil and Gas
Ndanga Kamau, Oil and Gas Policy Adviser, Oxfam Kenya
John Ochola, Chairman, Kenya CSO Platform on Oil and Gas / EcoNews Africa
Simon Thompson, Chairman, Tullow Oil
Chair: Alex Vines, Research Director, Area Studies and International Law; Head, Africa Programme, Chatham House
In 2012, Kenya joined the swathe of East African countries with recent significant oil and gas discoveries. Long-established as a regional leader in terms of economic growth, foreign investment and technological innovation, Kenya's leaders are now assessing how to establish an effective policy framework to manage oil revenues while at the same time managing the expectations of its citizens.
At this event, the panel will discuss how transparency and accountability can be strengthened as Kenya moves to become an oil-producing nation. This event will mark the UK launch of a report by the Kenyan Civil Society Platform on Oil and Gas, entitled Setting the Agenda for the Development of Kenya's Oil and Gas Resources.
LIVE STREAM: This event will be live streamed. The live stream will be made available at 12:00 BST on Wednesday 8 October 2014.
THIS EVENT IS NOW FULL AND REGISTRATION IS CLOSED.
Invitation Only Research Event
Chatham House, London
Disputes over resources are a persistent challenge to international peace and security. Natural resources (such as oil, natural gas, minerals, timber and water) are a major source of national income for many countries and, alongside land, are essential to the livelihoods of many millions of people. There is a growing recognition among researchers and decision-makers that in many fragile states disputes over these resources have fed into, and underpinned, violent conflict and instability.
Although international engagement in national resource disputes is not always desirable or feasible, where it is necessary and possible to support, supplement (or even substitute) national dispute resolution processes it is important to think through the parameters of such action: Who gets involved? With what financial resources? When does an intervention begin? How do they act?
This one-day roundtable will bring together around 30 experts from policy, academia and business to discuss these questions and more.
The event will be held under the Chatham House Rule. Attendance is by invitation only.
Invitation Only Research Event
Food and Agriculture Organization of the UN, Rome, Italy
This meeting will focus on standards for NGOs wishing to submit 'substantiated concerns' in the EUTR context, and best practice in cooperation with enforcement agents in forest producer countries. The workshop will be attended by representatives from EU member states as well as officials from the US and Australia.
This workshop is the next in a series of EUTR/Lacey/Australian ILPA enforcement workshops co-organized by Chatham House and Forest Trends. Please note this event will be held in Rome.
Attendance at this event is by invitation only.
8 September 2014
This paper examines governments’ efforts to use public procurement policy to promote the use of legal and sustainable timber. Timber procurement can provide valuable lessons to governments when developing sustainable procurement policies for other products associated with deforestation.
Governments are increasingly using public procurement policy to promote the use of legal and sustainable timber, thereby helping to reduce deforestation and illegal logging and encouraging sustainable forestry.
At least 26 countries, mostly in the EU, currently possess some form of timber procurement policy at central government level. Although some have been implemented more recently than others and all tend to vary in their design, the evidence suggests that they are having a positive effect on increasing market share for verified legal and sustainable timber. Although government purchasing accounts for only a limited share of the market, the evidence also suggests that these timber procurement policies are having a broader impact on consumer markets, partly through their impact on suppliers and partly through the signals they send to the market.
These policies are also relatively straightforward to introduce: many countries already possess some form of green procurement policy, and criteria for legal and sustainable timber can easily be tailored to fit. In general no new legislation is needed, though the more comprehensive policies benefit from training and advice to government purchasers.
The gradual spread of the EU Green Procurement Policy programme, and commitments by an increasing number of private companies to eliminate deforestation from their supply chains are likely to encourage further uptake of procurement policies for sustainable timber. Timber procurement can also provide valuable lessons to governments when developing sustainable procurement policies for other products associated with deforestation, such as palm oil.
Invitation Only Research Event
Chatham House, London
Paula Hodges QC, Partner; Head, Global Arbitration Practice, Herbert Smith Freehills
Stéphane Brabant, Partner; Chairman, Africa Practice Group, Herbert Smith Freehills
Disputes between international companies and national governments commonly arise in the extractive industry where high expectations from producer countries often run alongside emotive issues of ‘ownership’ and ‘exploitation’. In 2013, Chatham House published the report Conflict and Coexistence in the Extractives Industries, examining the rising occurrence of long-running and expensive company-government disputes. Continuing the conversation, the speakers will share their personal insights regarding doing business in Africa's oil and gas sector and preparing for crisis situations. They will outline why they believe the effective management of any crisis is critical to achieving an early settlement and why arbitration is the best formal mechanism for resolving disputes in Africa. They will also discuss what the preconditions of success are, and how companies must adjust to new commercial and political realities when engaging with national companies.
Attendance at this event is by invitation only.
21 July 2014
Increasing agricultural productivity and adapting farming to climate change are central to Africa’s development prospects. There are important opportunities to enhance yields and increase resilience through the adoption of improved crop varieties. In some cases, biotechnology, and in particular genetic modification (GM), offers advantages over conventional plant-breeding approaches. Accordingly there are a various projects under way to develop new GM varieties for African farmers, ranging from drought-resistant maize to varieties of cassava, banana, sorghum, cowpea and sweet potato with resistance to pests and disease.
In addition to government funds, these projects have also attracted the support of influential donor agencies and philanthropic foundations. However, despite the expenditure of considerable resources, the potential of GM in Africa is not being realized. So far no GM trait developed for African farmers has been put to use.
Multiple barriers inhibit the development and adoption of pro-poor GM varieties in Africa. On the demand side, farmers may be reluctant to adopt GM varieties owing to a lack of export opportunities and distrust of the technology among local consumers. Farmers may also be concerned about exploitation by transnational seed companies (despite the fact that development of new GM technologies in Africa is dominated by the public sector). On the supply side, donor funding struggles to match the long timescales of research and development, while incentives among research scientists may be poorly aligned with farmer outcomes. Non-existent, poorly functioning or overly punitive regulatory regimes discourage investment.
The most important barriers – such as regulatory constraints, consumer distrust and weak farmer demand – must be understood in the context of wider social and political dynamics surrounding GM, typified by misinformation, polarized public discourse, and dysfunctional and opportunistic politics. The result is most GM projects becoming ‘stuck’ at the field trial stage without ever progressing to release. This ‘convenient deadlock’ of continual field trials allows governments to manage political risks by effectively balancing the demands of pro-GM and anti-GM lobbies – proponents of GM have a pipeline of technologies, while opponents are appeased by the failure of any to gain approval. The disabling socio-political environment for GM development in Africa greatly reduces the efficacy of investment in this technology.
This has two important implications. First, technology development needs to be located within a wider project of transformation that engages key actors – most notably politicians, policy-makers and farmers – as stakeholders from the outset, and includes strategies to address multiple demand- and supply-side barriers. Second, successful adoption is more likely in countries with less disabling political conditions, characterized by lower levels of consumer distrust and opposition, genuine farmer demand and demonstrable commitment from government. Focusing efforts and resources on a small number of ‘best bet’ countries will also allow donors and technology providers to support more ambitious, transformational projects led by national governments.
9 July 2014
Despite early warnings that the country could soon be facing famine, a half-funded appeal and muted media coverage suggest that lessons from Somalia’s 2011 humanitarian crisis have not been learned.On its third anniversary, South Sudan is teetering on the brink of humanitarian disaster. Without urgent action, some parts of the country face famine as a result of conflict, a poor harvest and high, pre-existing levels of malnutrition and poverty. If all this sounds eerily familiar, it should. In July 2011 similar conditions saw famine strike in Somalia, just as South Sudan gained its independence. It is estimated that more than a quarter of a million people died during this catastrophe, most of them children.
The situation in South Sudan shows the lessons of 2011 have not been learned. Early warnings of disaster in Somalia accumulated for almost a year before famine was eventually declared by the UN. The threat was first explicitly raised by the Famine Early-Warning Systems Network (FEWSNET) in March 2011 and again in May. Yet the humanitarian system remained dormant. Had donors and agencies intervened early, they could have prevented the downward spiral into destitution and starvation. The reasons why early warnings did not lead to early action were documented in a major Chatham House report that concluded with numerous recommendations for how programmes, funding and decision-making should be reformed to avoid such a failure ever happening again.
Fast forward to 2014 and head 1,000 miles west, and little seems to have changed. FEWSNET warned of famine in South Sudan in early May, yet official UN data reveals no subsequent increase in funding. If anything, contributions to the South Sudan emergency appeal appear to have slowed, with April, May and June showing markedly less being received than in previous months. With the lean season (when food insecurity peaks) now well underway, the appeal is less than half-funded.
Experience shows that the thing most likely to mobilize emergency funding is not early warning but media coverage, which can lead to pressure from publics for donor governments to act. News of the situation in South Sudan has been muted, however. According to Google Trends, there was no increase in the number of headlines on South Sudan following the famine warning in May for example. Three years ago in Somalia, it was not until famine was declared that the crisis caught the global media’s attention and donors finally responded. By then it was, by definition, too late to avert catastrophe.
Despite these alarming similarities, it is not inevitable that South Sudan will mark its third anniversary with famine. Like all complex forecasts, famine early warnings do not deal in certainties. And, although the window of opportunity for preventive action has probably closed by now and the challenge of reaching communities in the midst of conflict is huge, it is still possible for humanitarian actors to mitigate the worst-case scenario with a concerted and coordinated push to distribute aid and scale-up emergency infant nutrition programmes in the worst-affected areas. But even if famine is avoided, communities in South Sudan will be left weaker, poorer and more vulnerable to the next crisis. The risk will remain.
To comment on this article, please contact Chatham House Feedback
2 July 2014 , Volume 90, Number 4
2 July 2014 , Volume 90, Number 4
7 May 2020 , Volume 96, Number 3
In the May 2020 issue of International Affairs, we explore the many uses of images in the conduct of global politics.
7 May 2020 , Volume 96, Number 3
7 May 2020 , Volume 96, Number 3
7 May 2020 , Volume 96, Number 3
7 May 2020 , Volume 96, Number 3
7 May 2020 , Volume 96, Number 3
7 May 2020 , Volume 96, Number 3
7 May 2020 , Volume 96, Number 3
7 May 2020 , Volume 96, Number 3
7 May 2020 , Volume 96, Number 3
7 May 2020 , Volume 96, Number 3
7 May 2020 , Volume 96, Number 3
7 May 2020 , Volume 96, Number 3
1 November 2007 , Number 7
City types are waking up to wind, waves and the sun and their potential to make energy – and money. This is just as new energy policies for Europe emerge with twenty percent targets for renewable energy and greenhouse gas cuts. Add to the mix climate change negotiations which will be back in Bali in December.
1 November 2007 , Number 4
The world’s most populous democracy and its new economic engine are both busy modifying positions on Burma, their much smaller but troublesome neighbour. India and China have growing economic interests there, yet seem to have come to very different conclusions about how to protect them.
1 October 2007 , Number 7
Chinese goods seem to flood western markets: computers, light bulbs, sweaters, T-shirts and bras. The instinct is to try to protect home producers. A better plan would be to work with Beijing on producing products for the next industrial revolution – the creation of a low-carbon economy. But that would take real vision and political courage.