China updates Related policy trends stakeholders involvement

China updates Related policy trends & stakeholders’ involvement China updates Xiufang Sun Chatham House illegal Logging Updates and Stakeholder Consultation London Jan 26 2007

Government relevant initiatives • Economic development – to build a resource/energy saving and environment friendly society Market measures related: • – New tariff policy effective on Nov. 1 2006 • – Cancelled or lowered export tax rebates on hundreds of products, effective on Sept. 15 2006 • • – 10% temporary export tax on wood flooring, disposable chopsticks and wood chips Cancellation of tax rebates for Charcoal, railway sleepers, wood tools Reduction of tax rebates to 11% for wood packaging, wood doors & windows, plywood, laminated wood floorings 5% consumption tax on solidwood floorings and disposable chopsticks effective in March 2006

Government relevant initiatives -2 – Green procurement policy- eco-labeling, effective on Jan. 2007 • The central & provincial governments are asked to give priority to products proven to be environmentfriendly • Wood based products, including wood based panels, wood floorings, and furniture, make up about 25% of total labeled product categories • Standards –protection of consumers’ health, environment, energy & resources saving, etc. – nothing on legality of wood sourced

In forestry sector… – Tenure reforms in collective forest areas Experiences with provinces of Fujian & Jiangxi show • Larger share of forestland is now managed by household & farmer groups • Increasing share of forest income for farmers • Higher harvest level, boost timber production & increased afforestation by farmers • Lead forest authority to refine policy regulations, rather than simply enforce existing regulations – logging quota system – China’s forest certification scheme

More directly relevant, what is being done – High level national leader commitment to international cooperation, e. g. China-EU summit, participation in international processes –FLEG – Bilateral Communications with key timber producing nations, Russia, Indonesia, Myanmar – SFA initiated forest policy dialogue – Trade watch and information exchange program initiated by SFA to publicize trade info & raise awareness of public & industry on sustainability – Mof. Com set up a task force working on “Sustainable Development: China and Global Markets” , forest products is one of the three commodities to be studied. – In general : not clear which ministry is the leading coordination body for the issue, SFA – forestry related technical, Mof. Com – trade, not priority for any ministry

What can be done further – More active cooperation with relevant countries – Educating Chinese enterprises overseas – Better coordination among different government agencies – Establishment of info exchange network among timber producing and importing countries – More research, better data available

Industry/private sector • WWF/GFTN, TFT, work with Chinese companies on tracking wood sources • Increasing number of Chinese companies go for Co. C • Market driven • In general: Low awareness of IL & trade

Civil society Civil • International NGOs play the key role – IUCN, WWF, TNC, CI, FT, Greenpeace, etc. • Local NGOs limited in numbers and capacity • Academia – CAF, BFU, CASS – relevant research

Forest Trends’ related work in China Forest Trends’ related activities in China • Studies – China in the Global Market: Trends and Implications for Forests and Livelihoods • Market and policy analysis – Market trends, commodity chains (Russia, Indonesia, Myanmar) – Livelihood impacts – Policy constraints • Informal network of analysts – Policy Briefs • Technical supports, awareness raising – Dissemination of studies, e. g. workshops, conferences – Multi-stakeholder training workshop on ENA FLEG Oct 2005 – Technical Experts Information Sharing Workshop Sept 2006

Work Program and Information Sharing Workshop

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