Confronting Sustainable Forestry in a Period of Uncertainty and Change

FSERC/Dr. M. SHIBA 1

Confronting Sustainable Forestry in a Period of Uncertainty and Change

- Forest Certification’s Role as a Market-Based Catalyst -

Masami ShibaField Science Education and Research Center, Kyoto University

Kyoto, 606-8502, JapanTel +81-75-753-6441; Fax +81-75-753-6451

E-mail: [email protected]

Naoya OgawaProject Development Dept., Planning HQ, AMITA Corporation

Tokyo, 102-0075, JapanTel +81-3-5215-8326; Fax +81-3-5215-3040

E-mail: [email protected]


Purpose of this researchPurpose of this research

The primary purpose of this research is to discuss the potential effects of forest certification in association with CoC on management and market strategies of plantation forestry through different certification schemes such as FSC, PEFC and SGEC which parallel or competently emerge on the same products markets in Japan and also partly in the Asia and Pacific regions.


Background

　 Overview of development of forest certification in Japan 　　　・　 Forestry issues outlook 　・　 The emergences of Forest Certification　　　・　 Reaction to Certifications

　 Current Status

Concluding remarks

Area to be coveredArea to be covered


News of international exciting success, interesting stories or important events relating to forest certification over the several last months!


News - October 4, 2007

Independent Research finds FSC to be most effective certification option for sustainable forest management SFM in Canada.

PriceWaterhouseCooper’s 2007 report on the Global Forest, Paper and Packaging Industry confirms Forest Stewardship Council (FSC) certification as the preferred choice of the industry’s top 100 companies.


News - June 25th 2007

A unique multi-stakeholder FSC National Initiative (NI) was established in China with the support of China’s State Forest Administration (SFA), the Chinese Academy of Forestry (CAF), the WWF China and many others.


2003 2004 2005 2006

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J ap an C hina

China’s Timber TradeChina’s market for industrial timber, pulp, and paper is the second largest in the world, outranked only by the United States. China’s timber product imports 1.5 time in volume between 2003 and 2006.


FSC certification is growing quickly in China, particularly in Chain of Custody (CoC). There are over 300 FSC-CoC certificates issued and the numbers are increasing at an astonishing rate.

In June 2007, China had six Forest Management Units (FMUs) certified according to FSC standards. In China, more than 700,000 ha of forest are currently FSC certified.

Development of FM and CoC certification in China


The Toyota Motor Corporation, directing to domestic forestry reclamation model construction, acquired the private owner’s forest (Moroto Forest Product Corp. in Nagoya) of 1630ha located in Odai-cho, Mie Prefecture. For the promotion of sustainable forest management globally, TOYOTA is now starting various supports through its financial and technical development assistance at the private sector level.

Odai-cho, Mie Prefecture

News - 27 September 2007


Forest certification verified by independent third-party assessments has widely accepted a relatively short time and has solidified its place as integral tool for addressing SFM issues in all types of climate forests around the world .

Overview of development of forest certificationOverview of development of forest certification

Table Comparison of forest areas certified by major forest certification programs: in 2001, 2004 and 2006

PEFC

147,742,160 (100 )70,086,773 (100 )Total

30,319,476 (20.5)11,336,032 (16.2)SFI

28,400,000 (19.2) 4,215,000 ( 6.0)CSA

48,600,000 (32.9)32,370,000 (46.2)

40,422,684 (27.4)22,165,741 (31.6)FSC

Area certified (%) Programs

20042001Year 2007

90,710,640 (30.7)

69,408,326 (23.5)

81,172,835 (27.5)

54,121,158 (18.3)

295,412,959 (100 )


Table Progress of FM- and CoC certifications under three different programs; in 2004 - 2006

FSC 199,853 - 267,706 19 - 24 202 - 413 SGEC 3,919 - 256,140 6 - 29 3 - 29

PEFC - - 3 - 20

Total 203,772 - 523,846 25 - 53 208 - 462

Certification Programs Area

(ha)Sites (No.)

CoC (No.)

Statistical year: 2004 - 2006

FSC certification is growing in Japan following its first forest management certificate in 2000. Currently, 24 forest management units are certified according to FSC's high social and environmental standards, covering a total area of 267,706 hectares of forestland. One certificate holder consists of 120 groups, representing 3643 forest owners.


E: Yamanashi

1:PRF/143000/P&N/SW/2003

1/SCS/1070

2/SW/11312

3/SCS/2152

4/SA/1814

5/SA/1257

6/SGS/1462

8/SGS/3044

7/SW/143000

10/SGS/5991

9/SA/3274

11/SA/531612/SGS/955

17/SA/4447

13/SA/235216/SGS/12096

14/SA/9266

15/SA/1281

18/SGS/25526

19/SA/32391

21/SGS/41

20/SGS/3028

23/SA/1270

22/SGS/3984

24/SAS/106

Certified turn/certifier/area (ha)

Completed forest certification under FSC program in Japan, as of October 2007

Total area: 267,706ha

FMUs: 24sites

CoC: 413


FS

C-C

oC

(No

.)

3 726

65

158

242

413

2000 2001 2002 2003 2004 2005 2006

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Most of the 413 FSC chain of custody certificates are in the paper sector and Mitsubishi Paper Mills Ltd. (MPM) is one of the forerunners.


W ilderness, 1%

Arable land, 13%

W ater body , 4%

Road, 3%

B &H lot, 5%

Others, 8%

Forest, 66%

2/3 of the Land is covered with forests of which 41% consists of plantation forests.

Approximately 10 million hectares of plantation forests have been established since the end of World War for the Ⅱrehabilitation of degraded land and the expansion of the timber industry.

Current land use in Japan


BackgroundBackground

Some sticky issues on plantation forestry in Japan

Small scale forestry: average size of private forests is 2.6 ha and most (89 %) of the forests are 5 ha or less.

Lack of forestry labor, aging of workers, increasing absentee owner, the depopulation of urban village.

Lack of silvicultural tending: 60 % of the plantations are in the 15-35 year age class being under necessary of thinning.

Few market chance for the thinned logs.

Increasing awareness of environmental issues between public.

Increasing unreliability upon changeable governmental forestry policies and related regulations.

Continuing dependence on relative cheaper imported timber since 1970’s and shrinking the market opportunity for domestic forest industry sectors: the rate of domestic timber supply falls to less than 20 %.


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N on-national fores ts (P ub lic & p rivate forests ) N ational fores ts

Approximately 60% of plantations are less than 40 years olds and therefore need sustained nurturing.

A concentration of plantations of the same stand, structure, and age class resulted, later causing a nationwide silvicultural problem


74.7

20.7

4.6

28

32.6

39.4

0 10 20 30 40 50 60 70 80

P erc ent (%)

1-5ha

5-20ha

20ha -

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ss of c

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gorie

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rea (h

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N umber o f ow ners A rea

Small-scale individual forest owners comprise the majority of non-national forest proprietor.

There are approximately 2.9 million private owners of non-national forests. They are widely dispersed throughout Japan and typically manage small-scale operations covering less than 5ha.


1960 1965 1970 1975 1980 1985 1990 1995 2000

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30P

erc

ent (%

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N o . o f la bo re rs (L ) R a tio o f ove r 65-yea ras o lds (R)

According to the most recent population survey in 2000, there were about 70,000 forestry workers, representing a decline to 9 percent of the peak number in 1960. Of these, 25% are over the age of 65, so a further decline in the near future is unavoidable.


19601970

19801990

19951996

19971998

19992000

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N ational P rivate

It is increasing by necessary to promote the use of wood, especially domestic wood with the increase in forests ready for harvest, and the interest to use of wood as global warming countermeasures.


1970 1975 1980 1985 1990 1995 2000 2005

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Im po r te d (L) Domes tic (L) S e lf s uffi c ie n t ra tio (R )

The industrial wood demand in 2004 increased from the previous year, and the domestic wood supply increased for two years in a row. In particular, the use of domestic conifer for plywood , mainly Sugi (Japanese cedar) increased. In addition, log export volume increased from previous year.


1965 1975 1985 1991 1994 1996 1998 2000 2002 2004

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O ther C hip & p ulp P layw ood L umb er

The timber demand ranges approximately from 90 to 110 million cubic meters per year or about one cubic meter per capita, which has been relatively stable. About 60% of this is lumber and plywood to be used in construction. In recent years the demand for lumber is decreasing while the demand for plywood and wood chip are increasing.


50,000100,000

150,000200,000

250,000300,000

350,000400,000

450,000

Trad itiona l post & beam housing

W ooden re inforced pre fabrica ted

Two by four system

S tee l re inforced pre fabrica ted

429,862

133,418

105,824

20,415

Number of new housing by construction methods in 2006

Today’s new housings by construction methods are classified into four types such as, the traditional post and beam, the wooden reinforced prefabricated, the two by four (2 x 4), and the steel reinforced prefabricated, respectively. Accordingly, over 62.3% of all new houses were built by the traditional post and beam method in 2006.


1989 1991 1993 1995 1997 1999 2001 2003

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f saw

mill

7.5-75kw 75-300kw 300kw -

According to a complete survey of sawmills by power categories, there were 6479 mills under 75kw, 2444 mills under 300kw, and 497 mills over 300kw in 2004, respectively. Number of small-scale mills under 7.5kw is rapidly decreasing in these years.


100

148

100

88

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78

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19

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160

Index

LW LWPI CGP SM LP STP WHLP

The stumpage price of Sugi (Japanese cedar9 in 2004 was one-fifth of the price in 1980, and in 2005 one sixth of the price. Forest owners’ motivation towards forestry activities is diminishing due to the depressed profitability of forestry.

LW: Logging wage, LWPI: Lumber and wood pro price index, CGP: Corporate goods price (Aggregate average), SMLP: Sugi middle log price, STM: stumage Sugi price, WHLP: Western hemlock log price


Compliance with Law and Principles・ In sufficient understanding of relevant forest, forestry and natural preservation laws,・ No document records on natural and local laws and regulations related to forest management,・ Lack of records on taxes, applicable charges, and other operational expense.

Tenure and Use Rights and Responsibilities・ Lack of clearly documented and mapped information supporting legal ownership and boundaries,・ No documentation of legal or customary use right to the non-timber products of local communities.

Community Relations and Workers’ Right・ Lack of opportunities for employee’s training and education,・ Insufficient relevant health and safety guidelines and practices,・ No documentation of the right of workers to organize and voluntarily negotiate with their employers,

Missing or Weakness identified through certification program


Benefits from the Forests・ The expected level of harvesting is not clearly justified in terms of permanently sustainable yield of the timber products on which the management plan is based,・ No work plan and budget for management practice showing expected costs and revenues for short-term financial years,・ In sufficient extraction and processing of thinned logs on –site taking into account of the need to minimize timber waste; most thinned logs are left on site,・ Too emphasis and dependence on single forest products and lack of attempt to create non-timber products.

Management Plan・ Lack of upfront documentation on the description of the forest in management plan,・ Missing mapped information on a management plan; maps adequate to guide on-site activities,・ Less freedom of timeframe (short-term, middle-term, long-term) of management plan; nebulous plan without updated description and condition.

Missing or Weakness identified through certification program


Findings through certifications examinedFindings through certifications examined

Although there are many different criteria between competing certification schemes applied to each management practice of forestry sector, most of the information identified as “missing” or “weakness” relative to each of criteria were surprisingly similar for the different types of forest operation, and they delineated of particular relevance to management context of Japanese plantation forestry.


Wood Supply Chain Management 　 Timber Logistic Biomass use IC/IT Technology

SFM

Market-basedapproaches

Criteria and Indicators　 Practice Code/Guidelines Model Forests Governmental Regulationｓ

Policy/management-based

approaches

Certification of Forest Products

Concluding remarks

Forest certification will play an important role as a “catalyst” and/or “powerful driver” towards responsible forest management practices because these initiatives have requirements related to corporate environmental policies, industrial process planning, use of best available technology, self-auditing, and a commitment to continual improvement.


Why should such challenges be so meaningful !Why should such challenges be so meaningful !

Private forestry sector will be examined to see how a Japanese private forest management would measure up to international standards!

Forest Owner’s Association done as a resource-manager (group) certification for a large group of small-forestland owners will be looked at as an example of how certification can work on the infrastructural reconstruction of cooperative association for the economic welfare of individual forest owners!

Industrial forestry sector will be looked as an example of how certification can work on sustainable forestry-based socioeconomic development through partnership with local communities!

- to support environmentally appropriate, socially beneficial, and economically viable forest management.

Sustainable Forest Management

Forest C

ertific

ation

Confronting Sustainable Forestry in a Period of Uncertainty and Change

Documents

ha of forest

global forest

coc certification

shibaforest certification

shibafsc certification

forest management units

effective certification

sustainable forestry