Presentation at recent Model Forest Network Conference

1. Forest Certification Systems and Trends
in the Global Marketplace
Glenn Keays, CEA(SFM), EMS(LA)
Senior Consultant, Management Systems & Sustainability

2. Information Overload!!
For the next 30 – 40 minutes…
You will be exposed to
statistics on forest
certification
Information on increases and
decreases in certification
Graphs, numbers, acronyms,
words…
But hidden in all of this could be a bit of knowledge!!
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3. Status of Global Forest Certification
May 2009 the global area of certified
Global Certified Forest Area
forest endorsed by one or other of the
international frameworks PEFC, 5.6% FSC, 2.7%
Forest Stewardship Council (FSC)
Programme for Endorsement of Forest
Certification (PEFC)
amounted to 325.2 million hectares
Not Certified,
Only about 8% of the global 91.7%
forest area is certified
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4. What Type of Forests are Certified?
Percent of Forest Types Globally
Boreal
33% Tropical
42%
Percent of Certified Forests by Type
120
Temperate
25% 100
80
Percent
60
86 91
99
40
Source: FAO, 2007 20
14 9
0 1
Tropical Temperate Boreal
% Certified % Uncertified
4

5. Intact Forest Landscape – Green
Disturbed Forest Landscape – Yellow
Source: Potapov, P. et al. 2008. Mapping the world’s intact forest landscapes by remote sensing. Ecology
and Society 13(2):51.
5

6. Trends in Forest Certification - Europe
82 million hectares (53% of forest area) certified
Clear distinction regarding which certification scheme
Large State and Industrial Ownership – FSC
Small Non-industrial Private Ownership – PEFC
Most PEFC certifications are large group or regional certifications
~500,000 small forest owners (out of estimate total of 16 million owners)
No increase in certified forest area in past several years
Appears supply of certified softwood is in excess of end-user demand
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7. Trends in Forest Certification - CIS
Russia is a growth area for both FSC and PEFC
FSC has 19.2 million hectares certified
FSC Russian National Standard now accredited
Two forest certification schemes are being evaluated for PEFC
endorsement
Russian National Council for Forest Certification (now endorsed)
National Council of Voluntary Forest Certification in Russia
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8. Trends in Forest Certification – Canada
146 million hectares certified to
CSA, SFI and FSC
Canada has the most
Largest area of certified forests in the
world
More fibre originating from certified
forests than any other country in the
world
Canada has 40% of the world’s
certified forest area
Accounts for
50% of PEFC
25% of FSC
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9. Trends in Forest Certification - USA
Forest Land Ownerhip in the US Certified Forests in the US
Private Certified
Industrial, 13%
13%
Public, 29%
Private Non-
Non-
industrial,
58% certified
87%
Percent Certified
t
ec
Source of Fibre Production
Private Industrial 69%
nn
Private Industrial 29%
co
Private Non-industrial 63% Private Non-Industrial 0.2%
is
Public 8% Public 12%
D
A
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10. Trends in Forest Certification - USA
Failure to attract small landowners has resulted in a flattening out of
the total certified forest area in the USA
According to a recent survey, only 12% of US family forest owners
have heard of forest certification*
American Tree Farm is now PEFC endorsed
The challenge will be to encourage small landowners to work together
for group certification in a sector where there is little or no tradition of
cooperative action
*(Butler, B. 2006. Family Forest Owners of the United States. A Technical Document Supporting the Forest Service
2010 RPA Assessment)
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11. Trends in Forest Certification – Other Regions
Australia
Over 9 million hectares certified
Most to Australian Forestry Standard, which is PEFC endorsed
Brazil
6.4 million hectares certified
Mostly softwood plantations in Southern Brazil
FSC and CERFLOR (PEFC Endorsed)
China
16 FSC certificates issued, covering 1.2 million hectares
Less than 1% of China’s forests are certified
Chinese manufacturers rely heavily on imported wood products
Imported wood forms a significant proportion of exported wood products
Traceability of imported wood is the key issue
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12. Trends in Forest Certification – Other Regions
Japan
National forest certification program – SCEC accounts for 714,000
hectares
There are 26 FSC Certificates covering 280,000 hectares
The total certified forest area is less than 4% of Japan’s total forest area
Africa
5.6 million hectares certified to FSC – Gabon, Cameroon, Congo
The Gabonese Forest Certification Scheme is the only PEFC endorsed
scheme in Africa
Malaysia
Malaysian Timber Certification System was PEFC endorsed in 2009
4.8 million hectares certified to MTCS
Indonesia
900,000 hectares certified to FSC
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13. Market Demand for Certified Forest Products
The number of FSC and PEFC chain of custody (CoC) certificates issued
globally increased by 41% from 2008 to 2009
Uptake of FSC certification has outpaced PEFC – as of May 2009 there
were:
12,707 FSC CoC Certificates
5,108 PEFC CoC Certificates
Significant gains by SFI – from 100 certificates in 2008 to over 400
presently Certified Locations by Product Type in the USA
1600 1401
Number of Locations
1400
SFI
1200
982 FSC
1000
800
600 435
400
200 32 6 24
0
Solid Wood Paper Products Other
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14. Demand for Certified Forest Products
The most prominent market benefits for CFPs are market
access and brand image
Price premiums for CFPs are an exception in Europe and North
America
Drivers
Green Building Systems – LEED
Certified Paper
Biomass for Energy
Public Procurement Policies
Niche Markets
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15. Leadership in Energy and Environmental
Design (LEED)
The value of Green Building Construction Starts was up five five-fold
from 2005-2008
From $10 Billion in 2005 to $49 Billion in 2008
Green Building could triple by 2013, reaching $96-$140 Billion
Currently only recognizes FSC but a review of other standards is being
carried out – a lot of pressure to recognize SFI and CSA
Green Building Council of Australia recognizes FSC and PEFC in their
Green Star Certification Program
Other Green Building Certifications gaining recognition
ANSI, Green Globes, BREEAM, National Green Building Program
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16. So Where Does This Get Us?
There is no single reason the world’s certified forest area remains relatively
small
Certified wood products are not commanding prices that will cover the cost of
certification
Information about certifications has been slow in reaching many landowners
Certification is deemed too expensive and complicated for small landowners
However, large companies are beginning to use forest certification as a tool to
guarantee their wood and paper supply is dependable and originates from
well-managed sources – market reaction?
The EU and USA are considering laws banning the importation of wood
products from illegally-harvested sources
Increasing demand created by ‘socially responsible’ business and restrictive
import laws will likely encourage the expansion of the world’s certified forest
area in the future
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17. One More Trend to End With…
Global Paper and Paperboard Consumption
60
50
kg/person/year
40
30
20
10
0
1970 1980 1990 2000 2005
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18. Thank you…
Questions?
Glenn Keays, MSc, CEA(SFM), EMS(LA)
Senior Consultant, Sustainability Services
glenn.keays@amec.com
506-450-0168