Select Committee on Environmental Audit Minutes of Evidence


Annex I

A QUICK COMPARISON OF THE FIVE FOREST CERTIFICATION SCHEMES ENDORSED BY THE UK GOVERNMENT AS PROOF OF LEGALITY (MTCC) OR LEGALITY AND SUSTAINABILITY (PEFC, SFI, CSA AND FSC)

CANADIAN STANDARD'S ASSOCIATION (CSA)

Main positive points

    —  The CSA standard does include (some) minimum performance requirements.

    —  CSA has developed a well-described participation process; each certification includes broad stakeholder participation and consultation.

    —  The CSA has a very well developed chain of custody system.

Main negative points

    —  Companies can develop their own certification standard on a case by case basis, thereby not presenting a consistent minimum standard.

    —  Although local stakeholder processes are well defined they are nevertheless under the control of the company and their scope is so broad that they may or may not be effective in truly improving forest management.

    —  Insufficient procedures for addressing the rights and interests of indigenous peoples.

Conclusion

  The CSA standard can provide an effective tool to improve relations between the company and local people. However, the fact that there is no meaningful minimum performance threshold and that companies can influence the local certification standard (ie the indicators and targets against which performance is measured) used for their audit are problematic for a scheme that wants to deliver a product label. Broad stakeholder consultation is a good thing, but allowing companies to set their own standards on a case-by-case basis is not. A standard that does not result in standardised levels of performance is not a true performance standard. Therefore, until the CSA has developed a clear minimum threshold a product label is not really suitable.

FOREST STEWARDSHIP COUNCIL (FSC)

Main positive points

    —  Balanced participation of economic, social and environmental interests in decision making at all levels, including in the development of the standards.

    —  Thorough and well formulated procedures.

    —  A credible performance based standards that qualifies for a consumer label: FSC certified forests prohibit the clearing of natural forests for replacement by plantations, exclude the use of GMO trees, includes the protection of High Conservation Value Forests and afford the clear recognition of indigenous peoples' rights.

Main negative points

    —  Certification in absence of national standards is problematic. Phasing out of certifiers standards as soon as possible is required.

    —  Consultation processes are not always implemented as required on paper. Clear improvement is needed to ensure adequate consultation processes are carried out.

    —  Current certification of large-scale industrial tree plantations has led to undermining of local and national campaigns in a number of countries.

Conclusion

  FSC remains by far the most independent, rigorous and credible certification system. Its national standards are performance-based and their development requires full participation of all interest groups. The FSC's baseline prohibits the conversion of forests to plantations. GMO trees are explicitly excluded and the standard includes forest protection measures. FSC is also most advanced in recognition of forest peoples' rights. It rightfully uses a consumer label. For the FSC to retain the confidence of the environmental and social movement, however, it needs for the future, it needs to enforce stricter implementation of its procedures and seriously address the problems associated with the certification of plantations.

PROGRAMME FOR THE ENDORSEMENT OF FOREST CERTIFICATION (PEFC), FORMERLY THE PAN EUROPEAN FOREST CERTIFICATION SCHEME

Main positive points

    —  Inclusion of core ILO standards as a requirement for all certification schemes under the PEFC umbrella.

    —  Increased transparency in some member countries, notably Sweden and Germany.

    —  Requirement of a revision of the national standards every five years.

Main negative points

    —  The variability of PEFC's standards leads to a serious lack of consistency in what PEFC delivers and stands for, making it inappropriate for a consumer label.

    —  The scheme is governed by forest owners and forestry industry; the independence of the schemes is, therefore, questionable.

    —  The programme does not require certification at FMU level; most PEFC endorsed schemes certify at regional level.

Conclusion

  Given the variability in the national programmes admitted, the PEFC does not represent a consistent and credible performance based standard for forest certification. It is, therefore, not suitable for a product label. Lack of participation of other stakeholder groups in standard setting procedures and lack of transparency are also problematic. Although PEFC seems to be trying to improve its procedures and, hopefully, over time its standards, it remains to be seen if this process will continue if it starts endorsing many of the less credible schemes outside Europe.

SUSTAINABLE FORESTRY INITIATIVE (SFI)

Main positive points

    —  Quality of the standard has improved, including some recognition that some critical forests need conservation.

    —  An attempt has been made to increase the independence of the SFI and its board from the AF&PA and to widen participation on the SFI's board to include some environmental NGOs.

    —  If the SFI's standards are improved, the SFI framework could potentially improve the practices of many US and Canadian forestry companies.

Main negative points

    —  Certification of near status quo: there is no meaningful minimum performance based standard including preventing conversion of natural forests to plantations, adequately protecting rare and endangered species, limiting clear cutting and addressing social issues, including indigenous' peoples rights and workers' right.

    —  Companies can customise the standard used to assess them; certification is therefore not "independent". Furthermore the scheme is run by the industry (AF&PA) and although there is an "independent board", this board is not balanced or independent and still dominated by forestry industry interests.

    —  There is no formal chain of custody certification requirement for product labelling. As much as 100% of products carrying the SFI label can originate from forests not even managed to the SFI's standards, without any indication on the labels.

Conclusion

  Because the SFI requires broad participation by AF&PA member companies, it has considerable potential to influence their forest management practices. However, SFI has no clear performance requirements and allows for misleading labelling of products that do not originate in SFI certified forests. The SFI also gives vested interests considerable influence over the programme and the certification process. SFI is therefore not suitable for a product label.

MALAYSIAN TIMBER CERTIFICATION COUNCIL (MTCC)

Main positive points

    —  Demonstrates a potential legal framework in accordance with various laws, policies and regulations of the three regions in Malaysia: Sabah, Sarawak and Peninsular Malaysia.

    —  MTCC has made an attempt to work towards compatibility with FSC principles, criteria and indicators.

    —  Procedures, standards and guidelines are clearly documented and freely available.

Main negative points

    —  There is no clear minimum performance based threshold.

    —  There is no full recognition of land rights of local and indigenous peoples and no requirement for full participation of these groups.

    —  There has been no acceptable participation of environmental, social NGOs and representatives of indigenous peoples in the development of the certification standard.

Conclusion

  Although the MTCC has positive aspects in comparison with some of the other schemes, the standard used for certification is not sufficiently performance based to allow for a credible consumer label. Furthermore, there is no clear recognition of land rights and user rights in the standard, which is a serious omission in Malaysian context and has, as a consequence, seriously undermined support for the standard in Malaysia.





 
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Prepared 24 January 2006