BRAZIL FOREST STEWARTSHIP COUNCIL MEETING ON CERTIFIED

UNCLAS SECTION 01 OF 03 BRASILIA 000663 SIPDIS E.O. 12958: N/A TAGS: SENV EAGR EAID TBIO ECON SOCI XR BR SUBJECT: BRAZIL FOREST STEWARTSHIP COUNCIL MEETING ON CERTIFIED PRODUCTS -------------- Summary -------------- ¶1. SUMMARY: The 3rd Brazil Certified Fair and the Amazonia Sustainable Forum (Sao Paulo, April 2008) brought together the Brazilian Council for Forestry Management and the Forest Stewardship Council (FSC),in partnership with Friends of the Earth, Imafora, and Imazon for discussion of sustainable forest management and forest product certification with producers, traders, and consumers. The events promoted FSC-certified products and strategic business models intended to be certifiable, marketable, and sustainable. END SUMMARY -------------- The Event -------------- ¶2. The 3rd Certified Brazil Trade Fair of FSC Certified Products (Sao Paulo April 16-18, 2008) was jointly organized by the Institute for Forest and Agriculture Management and Certification (Imaflora), the Institute for Man and the Environment of the Amazon Region (Imazon),Friends of Earth for the Brazilian Amazon, the CBMF Brazilian Council for Forestry Management (FSC/BRAZIL),with sponsorships from USAID, Suzano Paper and Pulp, Klabin, Banco Real, Banco do Brasil, and others. ¶3. This 3rd Certified Brazil Trade Fair follows the initial 2004 Trade Fair which advocated the potential for the certification market in Brazil. The 2nd 2006 Trade Fair confirmed the success of the forest certified market, bringing in an increased number of exhibitors, products, and visitors. All three trade fairs focused on promotion of the sustainable management and development of the Brazilian forest sector. ¶4. The 2008 Trade Fair showcased the rising demand for FSC-certified products worldwide, as well as rising demand for financial institutions with sustainable procurement policies. Sectors represented at the Trade Fair included wood and non-wood forest product processors, civil construction, architecture, exterior/interior design, personal care products, and retail trade. ¶5. To be granted the FSC label, forest products must be produced from raw materials obtained from environmentally appropriate, socially beneficial, and economically viable forest management. Certified chain of custody records trace the raw material from the forest to the end user, ensuring origins and handling of timber and non-timber forest products. The FSC label carries the highest credibility in national and international markets, serving as the only volunteer system that includes environmental, social and economic sectors. -------------- A growing market -------------- ¶6. According to Forest Stewardship Council (FSC) International global data for 2008, over 100 million forest hectares are FSC-certified in 79 countries. Of this 100 million hectares, 13 million are classified as tropical forest. In 2006, the market value of FSC-labelled products exceeded USD $20 billion. The UN Food and Agriculture Organization reports the FSC certification program to be the fastest growing forest certification scheme in the world. ¶7. Brazil remains the Latin American country with the most certified forest enterprises (206) and the largest certified forest area (6.2 million hectares with 70 certified holders). Bolivia holds second place (1.7 million hectares with 17 certified holders); and Peru holds a distant third (628,385 hectares with 9 certified holders). ¶8. Although certified forest enterprises are on the rise, 80% of BRASILIA 00000663 002 OF 003 the annual wood extraction from the Brazilian Amazon forest is illegal. Illegal logging in Bolivia and Peru also remains a problem. -------------- Brazilian Perspective -------------- ¶9. Tasso Azevedo, the Director of the Brazilian Forest Service, emphasized that FSC-certification is a tool to create a sustainable forest economy which increases the value of the standing forest instead of illegal timber products. The FSC certification program strengthens collaboration between environmental, social and economic sectors in Brazil by promoting strategic and sustainable land management for business growth. The 2007 approval of Brazil's Public Forest Management Law further promotes the alliance between governmental sectors, civil society, and business enterprises. ¶10. Azevedo offered two examples of forest preservation initiatives: 1) Greenpeace program (Cidade Amiga da Amazonia) that encourages state governments and Brazilian municipalities (36 participants thus far) to prohibit use of illegally logged wood in public purchasing; and 2) the FSC-Certified Products Purchasing Guide (Paginas Verdes, Guia de Compras de Produtos Certificados FSC) which stimulates the certified product chain as well as consumption of certified products http://www.fsc.org.br/arquivos/Completo_PV.pd f -------------- The Amazonia Sustainable Forum -------------- ¶11. Following the 2008 Trade Fair, the Amazonia Sustainable Forum, led a public dialogue on the need for an equitable and sustainable Amazonia in which leadership will promote new alternatives to the present model of deforestation and predatory exploration of natural resources of the Amazon Forest. Forum discussion was led by French economist Ignacy Sachs and Jecinaldo Barbosa, indigenous leader of COIAB (the Coordination of Indigenous Organizations of the Brazilian Amazon). ¶12. Amazonia represents 59 percent of the total area of Brazil, provides livelihood for 12.2 percent of the population (22.2 million),contains 180 different ethnic groups, reports 10 million inhabitants below the poverty line, and only contributes 8 percent to national GNP. The deforested area of Amazonia is reported at 700,000 km2, roughly 1.5 times the size of France. -------------- Conclusion -------------- ¶13. The 3rd Certified Brazil Trade Fair, 2008 demonstrated the increasing market share of FSC-certified forest products, indicating that sustainable development of Brazilian forests is a viable business strategy. Forests across Brazil, Amazonia and Latin America are now more often being viewed as worth more standing than cut. Business strategies that define the new and sustainable roles between Amazonian ecosystems and their inhabitants are becoming certifiable, marketable, and sustainable. ¶14. COMMENT: Subsequent to the trade fair event, the EU announced its intention to approve a wood exportation law that would require a mandatory seal attesting to legitimate product origin. The EU, with its 27 member countries, is considered the most lucrative timber products market in the world. According IMAZON, 36 percent of the wood extracted from Legal Amazonia (Amazon states of Brazil) is exported, with 47 percent destined for the European market. EU wood industries estimate that illegal timber product commerce amounts to an annual loss of tax revenue approximating US$ 15 billion. END COMMENT. BRASILIA 00000663 003 OF 003 CHICOLA