CERTIFIED FOREST PRODUCTS (CFPs)

1. CERTIFIED FOREST PRODUCTS (CFPs) • Secretariat Introduction, with focus on the supply of CFPs: Mr. Ed Pepke, Forest Products Marketing Specialist, UNECE & FAO Timber Branch • Expert presentation, with focus on the markets for CFPs: Mr. Keith Forsyth, VELUX A/S (author, “Status of Forest Certification in the UNECE Region”)

2. Sources of information • “Markets for certified forest products”, Chapter 11 of the Forest Products Annual Market Review, 2001-2002 • “Status of Forest Certification in the UNECE Region, Summer 2002”, a UNECE/FAO Geneva Timber and Forest Discussion Paper • Country market statements for the TC

3. Info sources for Discussion Paper • Informal network of officially nominated country correspondents on certification of sustainable forest management and on certified forest products • Expert authors’ insight and supplementary sources

4. Supply of CFPs • Most of world supply from UNECE region (CIS, Europe and NA) • 124 million hectares total, mid-2002 • 43 million ha PEFC • 33 million ha SFI • 24 million ha FSC • 11 million ha American Tree Farm System • 9 million ha CSA

5. Supply of CFPs • Potential supply of CFPs is 234 million m³ annually worldwide. • Minor part of the wood from certified forests is actually traded as labelled CFPs.

6. Supply developments during past year • SFI system had largest growth, up 162% • FSC growth in Canada, Estonia, Latvia, USA • PEFC growth in Austria, France, Germany, Latvia, Norway and Switzerland

7. Supply problems • Lack of mutual recognition • Environmental groups and foreign retailers strongest supporters of FSC • Forest owners and forest industry strongest supporters of PEFC. • Lack of premiums and limited demand • Lack of chain-of-custody certificates

8. Other findings • Environmental image gained importance as driver of attitudes for forest owners. • Supply seen as limiting market growth

9. Findings from country market statements • Germany: 60% certified, c-o-c limiting supply • France: 100% certified by end 2002 • Latvia: 50% state forests by FSC, PEFC for private and municipal • Poland: 55% state forests. 100 c-o-c. • UK: 40% certified. “Difficult to sell uncertified softwood roundwood.” Government procurement policies for recycled or legally and sustainably grown wood products.

10. Findings from country market statements • Turkey: Growing recognition and preference, but no labelling. • Ireland: all National Forestry Board’s forests FSC certified • Finland: 95% PEFC certified. Growing market. Mutual recognition with Dutch Keurhout Foundation. Fear that without mutual recognition, forest-based products will lose market shares to competitors of non-renewable raw materials.

11. Findings from country market statements • Spain: PEFC certification starting. No domestic market. Some value-added production using imported CFPs. • Austria: PEFC in place • Lithuania • small FSC volumes entered marketplace • FSC label does not influence price • Label enables contracts and buyers • Forest owners association for PEFC

12. Findings from country market statements • Switzerland: FSC & PEFC (Q Label) = 10% forestland. Minimal, but growing market. • Romania: FSC initiated, with c-o-c • Canada: 15% certified by CSA, FSC, SFI, mostly for export. Equivalency and mutual recognition proposed for market efficiency.

13. Next speaker on CFP markets: Mr. Keith ForsythVELUX A/S