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Forest Certification in Russia

Forest Certification in Russia. By Dr. Maria Tysiachniouk, Centre for Independent Social Research, Russia. Context-Globalization. In early 1990s boarders opened for multinational companies Export orientation policy in order to promote economic growth

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Forest Certification in Russia

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  1. Forest Certification in Russia By Dr. Maria Tysiachniouk, Centre for Independent Social Research, Russia

  2. Context-Globalization • In early 1990s boarders opened for multinational companies • Export orientation policy in order to promote economic growth • Environmental movement became transnational-WWF, Greenpeace • Forest Club, a group of national NGOs and the European Taiga Rescue Network • NGO transboundary campaigns—a prehistory of certification • Fights for high conservation value forests (old growth) • Saving Karelian Forests-internet campaign, Greenpeace direct action in Arghangelsk –increasing transaction costs

  3. State forest policy • 1997-Forest Code • Public property, Leskhozes • 2000-functions of Goskomecologia and Federal Forest Service given to the Ministry of Natural Resources, restructuring of the State administration • 2004 new restructuring of State Administration • 2004-new forest code in the process of its development, plans for forest privatization in 2010 • Vertical power in decision making

  4. The national certification initiatives • In Russian Forest code of 1997—article on compulsory forest certification-never implemented • Voluntary national forest certification-supported by wood processing forest producers including Ilim Palp, Ministry of Natural Resources, WWF-toward FSC • Voluntary forest certification supported by Timber Merchants and Exporters, ex prime minister Kasianov-toward PEFC

  5. FSC in Russia • 3 enterprises received FSC certificate motivated by Western co-owners and partners • WWF information campaign, conferences, workshops • WWF used state institutions, created certification centers • Using the power of the market to create new institutions • WWW-created a Environmentally Responsible Producers group, criteria for ecologically responsible forest business, partnership with Stora Enso and IKEA, eco-rating of forest companies • Model Forests: Silver Tiger and Pscov (system of intensive and sustainable forest management)

  6. FSC in Russia • FSC national working group and several regional working groups groups--standards • FSC contact person from Greenpeace • Enviromentally Responsible Producers Group—do not influence market demand, is kind of a club, coordinated by WWF staff • Certification centers, some effective, others not • One firm-”Euro-partner” is seeking FSC accreditation to become an auditor • Eco-rating of the companies • Seeking to establish a Russian national FSC office • 8 FM/COC certificates, 1.4 million ha certified • 4 chain of custody certificates

  7. Forestry Sector Challenges • Illegal logging (especially in Far East), illegal logging by Leskhozes • Power conflicts between companies—lack of security in business community • Backwardness of forest sector, especially in the regions distant from the center • Permanent restructuring of forest sector • Too few investors in processing industry

  8. What influence the success (field research findings) • Boarder with Europe-versus boarder with China-environmental sensitivity of the market • NGO business and NGO governmental partnerships • Level of involvement of WWF • NGO cross boarder networks • Western funding allocation

  9. High sensitivity of the market Value of old growth forest in Europe European Union’s Commitment to buy only certified wood in 2005 Relatively low illegal wood trade Effectiveness of cross boarder networks European context

  10. European part of Russia-case studies

  11. Regional Context at Far East • Lawlessness, non-sensitive market, high demand for any wood • Illegal wood flows to China; multiple criminal networks and corruption • WWF creates models: Kedr brigade, Terney Les, Chuguevka • Government cooperates with WWF in law enforcement • WWF-IKEA China, Green Olympics 2008 • Failure of NGO networks across Russia-China border (asymmetry of the boarder, NGO priorities, Western Hot Spot Strategy)

  12. Share of GFTN Members in Russian Forest Products Trade in 2001 Russian exporters Foreign importers Leading Exporting Members of Russian Producer Group 1. Volga 2. Arkhbum 3. LEMO Group Leading Importing Members of European buyers groups 1. Van Hoorebeke Timber 2. IKEA International A/S 3. SCA Forest Products non-members – 93% non-members – 99.8% 7% members of Russian producer group members of European buyers groups 0.2% Trade between GFTN members 0.0% Source: State Customs Committee of Russia, 2002

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