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Jeremy Wall European Commission, Brussels, DG Enterprise & Industry,

European Commission. Chatham House, London: 09/07/2007 Illegal Logging Up-date and Stakeholder Consultation: Industrial Initiatives. Jeremy Wall European Commission, Brussels, DG Enterprise & Industry, (Textiles, Fashions & Forest-based Industries Unit). Jeremy.wall@ec.europa.eu.

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Jeremy Wall European Commission, Brussels, DG Enterprise & Industry,

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  1. European Commission Chatham House, London: 09/07/2007Illegal Logging Up-date and Stakeholder Consultation:Industrial Initiatives Jeremy Wall European Commission, Brussels, DG Enterprise & Industry, (Textiles, Fashions & Forest-based Industries Unit). Jeremy.wall@ec.europa.eu

  2. Summary of presentation: • overview of EU (EC + MS) policies relating to forest-based sector • roles of EU forest-based industries 3. role of DG ENTR as supporting partner in EC "FLEGT team" 4. activities in that role, e.g. green public procurement policies 5. law v. voluntary measures? 6. need and scope for innovating & encouraging new private-sector initiatives in support of FLEGT 7. EC forest-based industries' communication (September).

  3. EU forest-based industries (woodworking, pulp & paper; printing):- 340 Bn € turnover p.a. (8% of EU manufacturing added value), - 2. 5 M jobs (9 % of EU manufacturing jobs)- 90 % of wood from sustainably managed EU forests (SFM) = 55% NAIHence, EU is importing about 10 % (+/- 35 M m³) of the supply of wood for industries (in Finland +/- 25 % wood is imported, currently most from Russia)NB Timber imports filling specialist niches or competitive commodities- EU F-BI has growing export markets for paper and structural timbersNB roles of forest-based industries (F-BI) as:- raw material operator and “co-ordinator”(i.e. « wood mobiliser »)- as innovator & developer of new product & process technologiesBUT: mostly SMEs, so: low investment in R&D & education; high costs; vulnerable to low-cost (IL) competitors → risk of relocation outside EU

  4. Therefore the competitiveness of the EU forest-based industries must be maintained and enhanced for: products > jobs > wealth > growthOverall role of DG Enterprise: to help maintain and enhance the competitiveness of the EU F-BI, through: - EU Industry policy - Lisbon Agenda – sustainable growth and better, more secure jobs - less and better regulation + voluntary approachesRole in EU FLEGT Action Plan as an associated EC service: - concern for upholding interests of legitimate EU timber businesses - inputs to all FLEGT policy and legislative initiatives, assist VPAs - FLEGT information for (non-)EU industry & linkage to other stakeholders - encouragement of FLEGT private-sector initiatives (C-o-Cs, projects) - identify & encourage new (voluntary) market-based initiatives, including incentives for FLEGT-licensed timber in EU market

  5. Example: Green public procurement policies for timber: - organise and contribute to sectorial information meetings - help raise awareness of differences between national schemes - inputs to 2007 EC communication process on GPP: NB green only ≠ sustainable ≠ legal- identification of need to re-assess relationship w.r.t. FLEGT priorities

  6. FLEG(T) is about failures in the content and/or application of laws- therefore, is more law the only/best solution? Will it add cost/red tape?- can voluntary measures play a greater role than hitherto?- if so, they must be: effective, cost-efficient, equitable, credible, visible, etc.Examples: - European Paper Recovery and Recycling - Bio-degradeable Plastics Agreement - EU & Partners timber industry codes of conduct- GPP will go « beyond legal requirements » Others….?But such voluntary measures only part of the FLEG(T) equation; VPAs showif no direct EU market premia/incentives available, what other incentives? - technical assistance for training, energy linkages, etc. for partners? - investment in partner countries? role of EU banks? Ideas, please!

  7. Forest-based Sector(Resources and Industries): • DG Enterprise & Industry - Forest-based Industries: http://ec.europa.eu/comm/enterprise/forest_based/index_en.html EC, DG AGRI: EAFRD • http://ec.europa.eu/agriculture/rurdev/index_en.htm EC, REGIO: Structural and Cohesion funds • http://ec.europa.eu/regional_policy/index_en.htm Energy policy EC, DG TREN: EU • http://ec.europa.eu/energy/ DG ENV Climate Change: http://ec.europa.eu/environment/climat/home_en.htm Finance European Investment Bank (EIB) • http://www.eib.org/ General information on FP7 EU research • http://ec.europa.eu/comm/research • Seventh Framework Programme http://ec.europa.eu/comm/research/future/index_en.cfm • Information on research programmesand projects http://cordis.europa.eu/ • RTD info magazine http://ec.europa.eu/comm/research/rtdinfo/ • Information requests research@ec.europa.eu

  8. The Lisbon Agenda - matching sustainability with competitivenessThe Lisbon Agenda: wasre-launched Feb 2005.Recalling the three components of sustainability (environmental, social, economic), as well as competitiveness, it seeks: « To preserve the EU sustainable development model for the future, the Union’s competitiveness must be strengthened; its economy dynamised »:Other EU policies: Internal Mkt., Industry, Employment, R&D (EC + MS) - EU + attractive for investment & work (Single Mkt., less & better regulation)- 2010: R&D 3% GDP - knowledge & innovation for sustainable growth- 2010 create 6 M new and better jobs (Essentially:growth & jobs)

  9. EU Forest-based industries: • New communication document foreseen 3rd qtr. 2007: • « Innovative & sustainable forest-based industries in the EU » • (This is in follow-up to the 1999 communication: « The State of the Competitiveness of the EU Forest-based & Related Industries ») • The new communication will address sectorial challenges: • - Increased Global Competition • - Wood Raw Material • - Secondary Raw Material • - Energy • - Demand for wood and paper products • Structural Change

  10. F-BI communication - principles & objectives • To enhance the competitiveness by taking care of the advanced know-how and competences that the EU forest-based industries possess while also taking into consideration related competences in the chemical industry and the machinery industry. • To recognise the forest-based industries strategic role in mitigating climate change, enhancing a sustainable energy supply, promoting sustainable forest management and in supporting generally a sustainable development. • To support an enhanced level of innovation and research and technological development. • To facilitate the forest-based industries’ access to a sufficient raw material supply, both new fibres and recovered, at reasonable costs. • To facilitate an energy supply at competitive prices. NB challenges will be addressed through 24 action areas

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