Forest Law Enforcement & Governance (FLEG)

1. Priorities, Follow-up and the Future of FLEG Regional Ministerial Processes, the World Bank View Presentation at the Illegal Logging Update and Stakeholder Consultation Royal Institute of International Affairs, Chatham House, London, January 20, 2006 Tapani Oksanen, World Bank FLEG Task Team Leader Forest Law Enforcement & Governance (FLEG)

2. The 2002 Forest Strategy commits the Bank to collaborate with borrower countries and partners to reduce by half the financial losses from illegal logging by 2013 • Since 2001 the Bank has actively engaged in high-profile efforts to halt illegal logging and related crimes in partnership with producer and consumer country governments, NGOs and responsible private companies • The Bank’s Forests Team in the Agriculture and Rural Development Department has a FLEG team which coordinates specific FLEG related activities & collaborates with key staff in the Regions and Country Offices World Bank role in Forest Law Enforcement & Governance (FLEG)

3. Since 2001 the Bank has: • Acted as coordinator/secretariat for Regional Ministerial processes (S-E Asia 2001 & Africa 2003, Europe and Northern Asia 2005) and provided support for their follow-up • Incorporated illegal logging into the policy dialogue in borrower countries (e.g. Indonesia, Cameroon, DRC) • Supported illegal logging related action in 32 (out of 51) forestry projects (IBRD, IDA, GEF) for an estimated amount of 280 million USD (about 11% of total project cost), including stand alone projects and forestry components in broader projects • Initiated in 2005 a process to mainstream illegal logging related issues into broader governance programs and develop a corporate approach World Bank role in Forest Law Enforcement & Governance (FLEG)

4. EAST ASIA • Strategy development meeting (NYC, May 2005) • Forest transparency and access to data • Regional and international enforcement cooperation • International Customs Enforcement Workshop (Nov. 28-30, 05, Cebu, Philippines) Planned: • Indonesia Forest Sector Transparency Workshop (February, 06) • Regional Task Force and Advisory Group meeting (March 7-9, 06, Manila, Philippines) • E-Asia FLEG Strategic Action Plan • Declaration to strengthen regional and international enforcement cooperation, forest transparency and access to data • Proposal for the Agenda of the Ministerial meeting FLEG: Status of Regional Activities

5. EAST ASIA • International Experts Meeting on Anti-Money laundering and Related Approaches in Investigation and Prosecution of Illegal Logging (March 10-12.06, Philippines) • Assembling the lessons learned in the investigation and prosecution of forestry crimes • Integrating AML regime and asset forfeiture as potential prosecutorial tools • Assessing capacity building needs of investigators and prosecutors • 2nd Ministerial Meeting (late 06?) to follow up on FLEG implementation FLEG: Status of Regional Activities

6. AFRICA • Libreville workshop for COMIFAC countries (to recreate country level FLEG momentum) • Coordination of FLEGT – FLEG initiatives (COMIFAC plan of Convergence) • Information sharing (contact groups, COMICFAC FLEG newsletter) • Country level ILAPs • Initiation of a process to establish IFMs in Gabon and Congo DRC, and DPL for NRM in Gabon (Dec 05 Board clearance) Note: • Need to establish a collaborative approach • Need to define appropriate structures & initiate process for ownership building FLEG: Status of Regional Activities

7. LATIN AMERICA AND THE CARIBBEAN • Discussions on FLEG process initiated with ATCO in collaboration with FAO and other key agencies, focus on the Amazon Region • Technical workshop on “best practices for improving law compliance in the forest sector” led by FAO to create the technical basis for a political process In the Amazon Region (June 06?) • Central America: country-level diagnostic work initiated in key problem countries (Honduras), making use of the E-Asia experience and building towards a (sub?) regional political process • Strategic discussions needed on engagement of civil society, private sector and international community in the most productive way FLEG: Status of Regional Activities

8. EUROPE AND NORTH ASIA • Regional Ministerial Conference (Nov. 22-25 ’05), resulting in the MD and IAP • Internal assessment in the Bank on the use of different types of financing & advise instruments to support formulation and implementation of ILAPs • National follow-up activities: Russia; Bosnia and Herzegovina ILAPs • Turkey regional workshop to define methodologies/best practices for ILAPs planned for April 06 • International Steering Committee follow-up meeting of high priority for structured action FLEG: Status of Regional Activities

9. ELEMENTS OF RESOURCE STRATEGY FOR WB ACTIONS: • Restructuring of WB supported projects to better target follow-up needs • Donor-financed components to use WB supported projects to leverage IL related reforms, and coordination with donor funded projects • New innovative financing arrangements (e.g. regional lending instrument) • Donor inputs into existing/new trust funds, FLEG dedicated secondments to: • Strengthen facilitation and coordination functions entrusted to WB • Finance specific workshops and support to horizontal cooperation • Finance specific high-priority actions (identified in ILAPs) Resource mobilization for effective action