world news - 12.07.2007
Illegal logging — China's big wooden problem
Throughout the tropics, illegal logging
and unregulated land clearance are decimating tropical forests. Weak
governance and law enforcement in many countries contribute to a
climate susceptible to illegal logging.
The international timber trade, especially the global demand for
tropical timbers, has been part of the problem but it is also part of
the solution. By increasing consumer demand for verified legal or
sustainable tropical wood and wood products, the international timber
trade has the potential to transform the forest products sector and
governance structures in forest-producing countries. However, consumers
must be willing to pay more for certified wood products and companies
must be willing to support initiatives that encourage sustainable
forest management in order to increase the availability of supply.
Given China's recent emergence as a major export hub for wood products,
consumers must demand that Chinese producers take responsibility for
eliminating illegal and unknown-origin wood from their supply chains. A
recent analysis conducted by Tropical Forest Trust concludes that a
pairing of market incentives with technical assistance holds the key to
eliminating illegally harvested wood from Chinese supply chains.
Leading exporter
From being a net importer of many wood products in the 1990s, China
is now a leading exporter of furniture, plywood and flooring and is
rapidly moving up the ranks in exports of doors, windows and mouldings.
China's domestic wood consumption also increases significantly each
year as the economy continues to develop.
Despite having the world's largest plantation acreage, China
imports vast quantities of wood to keep up with high levels of
production. Russia is by far the largest supplier of logs and sawn wood
to China, providing temperate softwood species mainly for the domestic
housing market. For tropical wood, south-east Asia is the dominant
supplier with 70% of the region's hardwood exports heading for China.
South America and central Africa also export significant quantities to
China.
The nature of China's wood distribution system is complex where
individual farmers, small traders and small manufactures are all
prominent players, and domestic and imported wood passes through
numerous hands. Yet the number of private enterprises continues to
increase, giving rise to intense competition, overproduction and excess
capacity.
While China's rise in international wood products trade is attributed
to its price advantage, on an individual company level many
manufacturers face tough conditions and are largely at the mercy of the
market from both the supplier and the consumer perspective. With
increased import duties in both the US and European Union markets, and
looming anti-dumping and World Trade Organisation action in both
markets, Chinese producers are set to face a difficult road. A
combination of economic incentives and disincentives will be necessary
to encourage Chinese manufactures to incorporate legal or sustainable
wood standards into their procurement policies.
Proving beyond doubt the legality of the timber in China's
manufacturing industry is extremely challenging. Most Chinese firms
lack the capacity, desire or financial incentive to track their wood
supply chains to ensure timber originated through legal means. Domestic
issues are only compounded by the opacity of timber supply systems
overseas.
One of the key characteristics of Chinese manufacturers is that they
are extremely adaptable. Faced with economic incentives to change, they
will. It only takes a few examples of 'first movers' who are seen to be
gaining an advantage by changing the way they operate for more
companies to move in that direction.
Slowly an awareness of sustainability issues is emerging within China.
A few Chinese manufactures have moved to adapt to market demands by
more rigorously controlling their supply chains. The economic benefits
of shorter (and more easily monitored) supply chains are compelling
progressive manufacturers to make direct links with overseas timber
suppliers that can provide full legal documentation. Organisations like
the Tropical Forest Trust are working within factories, helping develop
rigorous wood control systems to ensure supply chains contain only
legal wood. Committed companies also support and encourage sustainable
practices in the forests from which they source.
Clearly, the encouragement and support from buyers will be
instrumental in transforming the Chinese industry away from its use of
illegal timber. By demanding nothing less from China, the positive
implications will be felt throughout the world.
See also:
- — North America faces sliding demand for lumber
- — Hawaii timber industry ready to saw
- — Brazil: Civil construction fuels hefty growth in domestic market
- — New unit to test timber
- — The First EFI Regional Office Established
