Ghana the VPA Chatham House Illegal Logging

Ghana & the VPA Chatham House Illegal Logging Update and Stakeholder Consultation, July, 2006 By Alhassan Attah & Chris Beeko

2 Ghana & the VPA

Structure of Presentation l Ghana & the VPA l 3 l l l Ghana’s Perception of initiative The Preparatory Process so Far The Challenges Lessons Learnt Some Reflections & Recommendations

Ghana’s Perception Ghana & the VPA l l l 4 The VPA can assist in moving forward governance reforms if it is rightly approached The VPA could have wide ranging impacts and must therefore not be narrowed down to negotiating legality definitions and systems of verification A well informed long-term programme support is required to establish a legality regime and implementing VPA

The Preparatory Process So Far

Identification of issues for negotiation and implementation l Ghana & the VPA l 6 l l Definition of Legality Design of a verification system Impact/risk assessment of initiative on country Strategies for containing the domestic market under a legality regime

Structures put in place for preparation Multi-stakeholder Steering Committee to oversee preparatory process Technical working groups/teams to deliver outputs for negotiation and implementation Ghana & the VPA l l i. ii. iv. l 7 VLTP team Legal definition team Impact/risk assessment team Domestic market legality strategy Secretariat that gives technical and administrative support to the process

The Preparation Ghana & the VPA l – l l Fiscal study, legal & institutional study Review of forest control system and introduction of verification system Outputs of technical deliverables for the negotiation and implementation – l 8 Studies to inform negotiating position and implementation of schemes under agreement legal definition, domestic market legality options, impact assessment Consultation of interest groups on various deliverables

The consultative process on technical deliverables for VPA – Verification System Ghana & the VPA Ministerial Clearance Steering Committee Civil Society NGOs Chainsaw Ops/ 1 event Illegal Loggers Industry 9 FC internal 2 events 1 event

Ghana & the VPA Road Map to Negotiation Step 1 Define legality November 2006 10 Step 2 Agree Design of Legality Verification System Dec. 2006 Step 3 Conduct Impact Assessment Studies Mar 2007 Step 4 Design required Sector Programmes May 2007 Step 5 Final formal Negotiations June 2007

The Challenges

Challenge 1 - The Domestic Market Ghana & the VPA l l 12 Domestic market is served largely by a system of illegal logging – chainsaw operations Volume of trade on domestic market equals that of export Installing an export legality regime without tackling the domestic market has little meaning But VPA appears export oriented …

Challenge 2 - Industry & Trade Reaction to Reforms l Ghana & the VPA l l l 13 Ensuring buy-in of industry into initiative View of legal compliance as limitation to profits Ensuring that recalcitrant producers do not engage in a last minute cash-in before system closes loopholes Ability to balance power and interest level of stakeholders to minimise undue political interventions

Challenge 3 - VPA & Previous National Reform Initiatives Ghana & the VPA l l l 14 Align reforms under the VPA to ensure that they compliment earlier gains in reform processes Balance forces for and against the new reforms Managing reform fatigue Establishing the link between FLEGT and the previously initiated Certification process Reconciling interests and differences of Civil Society and Industry & the Regulatory System

Lessons Learnt Ghana & the VPA l l 15 Initiative presents opportunities to harmonise interests of industry, civil society, land owners, State and market Partnership of regulatory system with civil society is required in the process to stabilise policy implementation environment Status quo need challenging Communication and clarity of purpose is critical for success of initiative

Some Reflections & Recommendations

Recommendations Ghana & the VPA l l l 17 Network of prospective producer country signatories to the agreement Buyers could act more to influence behaviour of producers Development of capacity of Civil Society is required to deepen their contribution to process VPA must be placed in context – PEFC, FSC must examine policies and engage producer governments more constructively Target support to ENGOs

Recommendations cont’ Ghana & the VPA l – l l 18 EU must have an appreciation of the wider implications of implementing legality regimes in producer countries social, economic and political implications The concomitant support for managing entire change and mitigating negative impacts Improved consultation and engagement on the process between EU and prospective partner countries

Thank You attah@ghanatimber. co. uk chrisbeeko@hq. fcghana. com