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19TH ROUND TABLE ON SUSTAINABLE DEVELOPMENT OECD

19TH ROUND TABLE ON SUSTAINABLE DEVELOPMENT OECD. The Economics of Illegal Logging and Associated Trade Paris, 8/9 January 2007. OECD Round Table on Sustainable Development. Ministerial level, multi-stakeholder, informal dialogue forum Achieving a shared understanding

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19TH ROUND TABLE ON SUSTAINABLE DEVELOPMENT OECD

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  1. 19TH ROUND TABLE ON SUSTAINABLE DEVELOPMENTOECD The Economics of Illegal Logging and Associated Trade Paris, 8/9 January 2007 Chatham House, Illegal Logging Update and Stakeholder Consultation

  2. OECD Round Table on Sustainable Development • Ministerial level, multi-stakeholder, informal dialogue forum • Achieving a shared understanding • Alternative to formal negotiating structures • Catalyst for action on global issues • Objectives for meeting on illegal logging • Analyse progress made to date • Discuss ideas for practical action (‘no regrets’) • Engage ministers and representatives with different backgrounds and portfolios • www.oecd.org/sd-roundtable see ‘meeting papers’ Chatham House, Illegal Logging Update and Stakeholder Consultation

  3. Analysis • Increased cost of compliance on the supply side • Licensing and certification • No discriminating market on the demand side • Trade displacement • No shared long term objective • Make UNFCCC, BDC and MDG goals operational for forest Chatham House, Illegal Logging Update and Stakeholder Consultation

  4. Unit Cost of Certification (in $) Chatham House, Illegal Logging Update and Stakeholder Consultation

  5. Number of hectares under different certificationstandards Source: Cashore et al,2006 Chatham House, Illegal Logging Update and Stakeholder Consultation

  6. Area certified under each system as a % of total regional forest cover Source: Cashore et al,2006 Chatham House, Illegal Logging Update and Stakeholder Consultation

  7. Analysis • Increased cost of compliance on the supply side • Licensing and certification • No discriminating market on the demand side • Trade displacement • No shared long term objective • Make UNFCCC, BDC and MDG goals operational for forest Chatham House, Illegal Logging Update and Stakeholder Consultation

  8. Major ‘high risk’ trade flows Chatham House, Illegal Logging Update and Stakeholder Consultation

  9. Analysis • Increased cost of compliance on the supply side • Licensing and certification • No discriminating market on the demand side • Trade displacement • No shared long term objective • Make UNFCCC, BDC and MDG goals operational for forest Chatham House, Illegal Logging Update and Stakeholder Consultation

  10. FLEGT ‘No regret”? (1) • FLEGT ineffective • Geographical coverage limited, • and not likely to be expanded…. • Referring to FLEGT as ‘second best’ is ambiguous • but holds promise • financial assistance • Market pressure by creating awareness • Learning experience for multilateral trade agreement Chatham House, Illegal Logging Update and Stakeholder Consultation

  11. ’No regrets’ (2) • Positive incentives climate change regime • High potential, high risk • How to allocate benefits? • Closing information gaps for sound policy • Impact of illegal logging on the forest • Interaction with deforestation • Trade flows • Cost of certification and effect on market prices • Cost of certification and competitiveness • Long term projections for demand and supply of wood products Chatham House, Illegal Logging Update and Stakeholder Consultation

  12. ‘No regrets’ (3) • Improving information flows and cooperation between agencies and companies • engaging custom offices • engaging ministry of finance • Using modern technologies to increase transparency and governance • Satellite images • Web based tools • Log tracking technologies Chatham House, Illegal Logging Update and Stakeholder Consultation

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