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Deforestation, illegal logging and palm oil

Forests cover almost a third of the earth’s surface, holding a wealth of the world’s biodiversity. They are an essential ‘carbon sink’, taking large amounts of carbon out of the atmosphere every year. They support livelihoods for over 2 billion people. All this makes them very valuable ecosystems and worth protecting.

Latest news

26 September 2011 - UK welcomes Indonesia’s lead in protecting forests

Background

According to latest figures from the UN Food and Agriculture Organisation, an average of 13 million hectares of forest was lost each year between 2000 and 2010. This was either through conversion to other land uses (mainly agriculture) or loss through natural causes (eg forest fires).

Deforestation is the cause of around one fifth of the world’s greenhouse gas emissions (the emissions associated with climate change) and poses a major threat to biodiversity through habitat loss. This is more than just an environmental problem; it’s an economic one too.

Most of the world’s endangered forests grow in developing tropical and sub-tropical countries. The three main rainforest regions that remain are the ancient Amazon in South America, the Congo Basin in Africa, and the forests of Indonesia and the rest of South East Asia. They have to weigh the cost of good forest management against the pull of economic growth. As a result of these economic pressures, the problem of deforestation has not been an easy one to solve.

Despite this, the UK government is committed to helping protect this valuable asset. Doing so will require a widespread international effort from governments, businesses and non-government organisations alike.

The root of the problem is, through legal or illegal activity, there is money to be made from clearing natural forest to sell the timber and/or use the land for other purposes such as farming. In South East Asia, for example, the production of palm oil (used in food and cosmetics) is linked to the clearing of natural forests for plantations. In Brazil, cattle ranching has been linked with deforestation.

To tackle the causes of deforestation, forests have to be made worth more to local people when they are standing than when cut down. This also means having a better understanding of the economic value of services ecosystems provide, for example providing food and sustenance, storing carbon and regulating water and air. Recognising this, the UK along with other countries has supported a major international project, The Economics of Ecosystems and Biodiversity.

This is the principle behind a major international process underway to set up an innovative mechanism called “REDD+”. This mechanism is being discussed as part of the UN-led international climate change negotiations. It aims to create a financial value for the protection of forests by offering incentives for developing countries to reduce emissions from forested lands and invest in sustainable development.

To underpin this finance mechanism, it is critical to still tackle the underlying drivers of deforestation (ie illegal clearing of forests and planned clearance for agriculture and other economic activities) through improved governance, law enforcement and support for sustainable livelihoods.

The UK has taken a lead in driving forward an agreement on a REDD+ mechanism. Defra has also focused on addressing the most critical drivers of deforestation, including illegal logging and supporting sustainable palm oil production. Defra is currently running a research project with Brazilian government on ways to reduce the impact of cattle ranching on the Amazon Rainforest.

What is the government doing to address this issue?

1. REDD+ mechanism

The UK is playing a leading role in the development of a REDD+ mechanism and played a pivotal role in establishing the REDD+ Partnership (PDF 310 KB) of developed and developing countries. As part of the ‘Fast Start’ climate change finance commitment, the UK has also pledged £300 million over 2010-2012 to support plans and preparations in countries with large forests to be able to reduce rates of deforestation.

2. Tackling illegal logging

Forest Law Enforcement Governance Trade (FLEGT) regulations

In December 2005, EU Agriculture Ministers finalised new legislation on Forest Law Enforcement, Governance and Trade Regulations (FLEGT) that prohibits the import of illegally harvested timber into the EU. It also allows the EU to enter into legally binding Voluntary Partnership Agreements (VPAs) with timber producing developing countries and provides them with assistance to tackle illegal logging

The UK government is now in the process of introducing secondary legislation in the form of a statutory instrument to implement these regulations designed to control the entry of legally licensed timber products in the UK. It is envisaged these regulations will be applicable in the UK in early 2011. Voluntary Partnership agreements have already been signed with Ghana and Cameroon and negotiations with several other countries are in the pipeline. These bilateral agreements will ensure timber products from partner countries are only allowed on to EU markets if they are accompanied by a valid licence proving they have been harvested from verified legal sources.

In the UK, Animal Health, an executive agency of Defra, the Welsh assembly government and the Scottish government have been given the task of managing FLEGT licensing.

EU Illegal Timber (Due Diligence) Regulation

The EU has recently agreed a new regulation aimed at stopping the trade in illegal timber within the EU. The Illegal Timber (Due Diligence) Regulation makes it an offence to place illegal timber on the EU market. It also requires operators to undertake due diligence on their supply chains to check the timber has been harvested legally in accordance with the laws in the country of harvest. This responsibility applies to all operators first placing timber on the EU market, regardless of where the timber was harvested. Internal traders throughout the supply chain are also required to keep a record of from whom they have bought timber and to whom they have sold it. EU Member States will now have until early 2013 to implement the regulation.

Public procurement policy

From April 2009 policy has demanded that central departments will only purchase timber and timber products that derive from sustainably managed forests or are licensed under a FLEGT agreement.   From April 2015 only sustainably produced timber will be purchased.

3. Palm oil

Palm oil is the world’s most used vegetable oil. Its use in Europe, US, China and around the world is very widespread (estimated to be in 1 in 10 products on UK supermarket shelves). Around three quarters of the world’s palm oil supply is used in food, with the rest used in cosmetics, other chemicals and for bioenergy.

In South East Asia, expansion of palm oil plantations is one of the major drivers of deforestation conversion of carbon-rich peat soils. This is because it is highly profitable and global demand is rising. Palm oil plays an important economic role, for example, the industry employs 2-3 million people in Indonesia. However, we must seek to reap the benefits of palm oil without suffering the costs associated with climate change and biodiversity loss caused by converting natural forests and peatlands.

The government made clear its intention to encourage sustainable production and consumption of palm oil by launching a new project in July 2010 to map UK supply chains. The project looked at how much palm oil we use, in what products, where it comes from and how much could be considered sustainable. It also looked at the potential actions that could be undertaken to move towards the UK sourcing only sustainably produced palm oil and involved businesses from across the industry. The report has now been published.

Also announced in July 2010 was a project supported by Defra, the UK Department for International Development (DFID) and the Chinese Ministry of Commerce, to develop the case for sustainable sourcing in China, the world’s largest country consumer of palm oil. It will also explore options for the Chinese government to encourage sustainable sourcing.

The Roundtable on Sustainable Palm Oil (RSPO) is an industry-led initiative which has developed principles and criteria for sustainable palm oil production, and has begun to certify some oil as sustainably produced. This initiative has already created change in the industry but more progress is needed.

Key facts and figures

  • Forests cover approximately 30% of the earth’s land surface
  • Forests are a major carbon reservoir and sink, regulating the global climate
  • Forests are home to 80% of the world’s remaining land-based biodiversity
  • Forests have effectively disappeared in 25 countries and another 29 countries have lost more than 90% of their forest cover
  • Deforestation continues at an alarming rate, with the loss of some 13 million hectares (130,000 km2) a year
  • Around 90% of the world’s supply of palm oil is produced in Malaysia and Indonesia
  • China is the world’s largest consumer of palm oil, followed by the EU

Relevant regulations

Key publications and documents

Procurement advice

General advice

Other organisations

Page last modified: 10 October 2011