Wood Import Wood Products Export & Forest Certification Process in China

1. Wood Import Wood Products Export&Forest Certification Processin China October 23rd , 2012 Ho Chi Minh City of Vietnam Benson Yu Director of PEFC China Initiative

2. Today Agenda • Wood import and wood product export of China • PEFC and PEFC in China • China Forest Certification Council (CFCC) – the national forest certification scheme

3. Wood Import and Wood Product Export of China

4. Wood Import of China • China is one of the biggest wood import countries in the world, about 30% of total consumption relies on abroad market. • Wood import of 2011 increased 35% on previous year, sawn timber increased 50% even. • The sourcing countries structure had a big change as well, Russia contributed 31.4% of the whole import, decreasing 5%, Canada’s contribution increased 4.1%, USA increased 3%.

5. Main Sourcing Countries for Import Wood of China

6. Round Wood Import of China • Before 2008 round wood import maintain 10% increasing averagely. • In 2008 round wood import decreased 20.5%, further decreased 5.1% in 2009 due to the crisis. In 2010 there was a big rebound, in 2011 increased 20.2% on the previous year, even 11.74% higher than the peak year 2007.

7. 2000-2011 Round Wood Import

8. Main Souring Countries of Import Round Wood • Russia slightly decreased 0.37% of Jan-Nov of 2011. • Import from Gabon decreased from top 5 of 2005, top 9 of 2010 to top 36 of 2011. • Import from USA increased 91.86%. • Import from Canada increased 131.59%

9. Main Souring Countries of Import Round Wood

10. Sawn Timber Import of China • Before 2008 sawn timber import always kept around 6 million m3 a year. • In 2009 sawn timber import increased 40% dramatically. • Sawn timber import of 2011 increased 45% compared to 2010. • Broad-leaf species increasing, but conifers increased 59.65%, even obviously.

11. 2001 - 2011 Sawn Timber Import

12. Main Sourcing Countries of Import Sawn Timber • Jan-Nov of 2011 Canada contribution from No.2 to No.1, increased 78.6% compared to the previous year. • USA and Indonesia increased most, 95.56% and 95.26% respectively. • Chile also increased 75.93%, Russia increased 41.09%.

13. Main Sourcing Countries of Import Sawn Timber

14. 2001 – 2011 Import Round Wood and Sawn Timber Volume and Proportion

15. 2000 – 2011 Import Coniferous and Broad-leaf Proportion of Round Wood

16. 2001 – 2011 Import Coniferous and Broad-leaf Proportion of Sawn Timber

17. Import Tropical Wood of China • Recent 10 years the proportion of import tropical wood was decreasing step by step.

18. 2001 – 2011 Import Tropical Round Wood Proportion

19. Plywood Export of China • Among all of the man-made panel export, plywood export was the fastest growing one, the first 10 months of 2011 exceeded the whole year volume of the year 2010. The whole year export of plywood of 2011 increased 27.63% compared to 2010. It was also higher than the peak year 2007, to be a new record.

20. 2006 – 2011 Plywood Export

21. Main Export Countries of Chinese Plywood

22. Particle Board Export of China • In 2011 the total export volume was 124900 tons, increased 20.56% compared to 2010.

23. 2006 -2011 Particle Board Export

24. Main Export Countries of Chinese Particle Board

25. Fiberboard Export of China • In 2011 the fiberboard export was 2.41 million tons, increased 14% almost compared to 2010, but still smaller than the peak year 2007.

26. 2006 – 2011 Fiberboard Export

27. Main Export Countries of Chinese Fiberboard

28. Furniture Export of China • From 1990’s Chinese furniture export started the fast growing, the export value from 208 million USD of 1990 to 32.99 billion USD of 2010, increased almost 118 times. • In 1995, 1.765 billion USD, No. 7 in the world. • In 2001, 3.968 billion USD, No. 2 • In 2005, 13.77 billion USD, No.1 (exceeded Italy) • Export to more than 250 countries and regions, kept the position of the biggest furniture export country since 2005 until now.

29. 1990 – 2010 Furniture Export

30. Furniture Export of China • Two driving forces of the fast growing export of furniture: • external investment of furniture production. Since 1990’s the investments from Hong Kong, Taiwan and other more than 30 countries set up factories in China for furniture production. Their capacity almost contribute about 60% of the whole country. • In 2000 China joined the WTO. • Wood furniture export even in 2008 it still had 2.77% increase. In 2010 there was a big increase about 39%. In 2011 the export increase was about 8% compared to 2010.

31. 2006 – 2011 Wood Furniture Export

32. Main Exporting Countries of Chinese Furniture Jan – Nov of 2011

33. Wooden Doors Export of China • In 2011 the total wooden door production of China was about 88 billion RMB, export was about 583 million USD, less than 5%. It shows the sector is in the starting stage, in international market it has no advantage yet.

34. 2006 – 2011 Wooden Doors Export

35. Main Exporting Countries of Chinese Wooden Doors Jan – Nov of 2011

36. Wood and Bamboo Floor Export of China • From 2006 to 2011 the floor export had the trend of decreasing, in 2011 the floor export decreased 7%. • Over the past 20 years China floor production had reached a very high record, 8 years ago in the main international market the floor produced in China almost contributed 20% of the market share. But after 2007 the situation was changed, the export volume and value both decreasing.

37. 2006 – 2011 Wood and Bamboo Floor Export

38. PEFC and PEFC in China

39. What is PEFC? • Global, non-profit, non-governmental organisation • Voluntary mechanism promoting sustainable forest management providing independent, third party certification of good practices • Alliance of national forest certification systems with global representation • World's largest forest certification systemand provider of sustainably managed wood • Certification system of choice for small forest-owners 39

40. Members; Endorsed Systems; Distribution of Certificates Europe 80 million ha 33 % TCA 7,547 CoC North America 145 million ha 60% TCA 567 CoC Asia 4.6 million ha 2 % TCA 618 CoC Africa 5 CoC Central and South America 3.2 million ha 1 % TCA 91 CoC Oceania 10 million ha 4 % TCA 241 CoC • International Stakeholder Members • APP Timber • Building and Wood workers' International (BWI) • Confederation of European Forest Owners (CEPF) • Confederation of European Paper Industries (CEPI) • Earth Focus Foundation • European Network of Forest Entrepreneurs (ENFE) • European Tissue Symposium (ETS) • International Family Forestry Alliance (IFFA) • Metsaliitto Group • StoraEnso - Endorsed national member - Non-endorsed national member 40 * ha - hectares CoC – Chain of Custody certificates TCA – Total Certified Area

41. Certified Area Growth 41

42. PEFC Certified Forest by Regions 42

43. Top Ten – Certified Forest Area 43

44. Chain of Custody Growth 44

45. Chain of Custody by Region 45

46. Top Ten – Chain of Custody 46

47. Acceptance by Government Procurement Policies • PEFC is recognised by the Japanese, British, Dutch, French, Danish Belgian, Scottish Governments and also London Olympics TimberProcurement Policies • PEFC is recognised by the Swiss Recommendation for public authorities; the German government has agreed to only purchase certified timber • Recommended by the European Commission Guidelines on Green Public Procurement • Governmental procurement policies of Finland, Sweden and Spainare in development 47

48. Acceptance by Other Procurement Policies • Green Building Councils in Italy and Australia, the Code for Sustainable Homes and BREEAM in the UK • Green Building Assessment Protocol for Commercial Buildings and the National Green Building Standard (US), and Built Green (Canada) • Comprehensive Assessment System for Built Environmental Efficiency (CASBEE) Japan 48

49. Acceptance by Companies in Key Markets retailers banking publishing & printing others

50. Certification Globally Only 9% of the world’s forests are certified – will grow to 15% in 10 years Only 26% of the world’s industrial roundwood supply is certified – expected to grow to between 40-50% in ten years 66% of the total area certified to PEFC 9% 26% 66% 50