ecosystem services in tropical timber value chains

Innovations in integrating ecosystem services

into tropical timber value chains with Dutch links

Ecosystem Services Workshop, University of Kiel, Germany

6-8 May 2013

Verina Ingram1, Jolanda van den Berg1, Mark van Oorschot2 and Marcel Kok2

1 Agricultural Economics Institute, (LEI) Wageningen University & Research centres,

2 Netherlands Environmental Assessment Agency (PBL)

Aim & scope

Aim:

● Inventory governance “steering” mechanisms for Dutch government to stimulate sustainable use and maintenance of ecosystem services through international value chains.

Scope:

● International chains for tropical timber, relevant to the Netherlands (consumers, enterprises, NGOs etc.)

● Analyse trade from/for Dutch policy perspective.

Methodology

1. Develop and test analytical framework

a) Literature study

b) Conceptual & analytic framework

c) Policy and practice discourse analysis (using ES definition/framework

from MEA)

2. Select case studies: innovations in international tropical timber

a) Literature review

b) Interviews

3. Develop recommendations for intervention possibilities

4. Next step: workshop to test results and recommendations

PROCESS DYNAMICS Relationships Institutions

Actors Processies

Harv

este

rs

Resource

Pro

cessors

Production & processing

Tra

ders

Wholesale

Reta

ilers

Retail

Consum

ers

Consumption

FRAMEWORK CONDITIONS Regulation

Business operating environment Demand

Political system Infrastructure

Chain platform

CSOs & NGOs

Research Government Enabling

e.g. certification

Analytical framework

POLITICAL ECOLOGY INNOVATION SYSTEMS VALUE CHAINS

- Links locations and landscapes also demand and supply - Embodies economic but also other forms of value - links products and ESS associated with their extraction, production & use - Links different actors - Embraces (plural) governance (formal, informal, market-based) & management systems

Timber companiesConstruction companies

Furniture companies

Carpentary & Joinery companies

Packaging companies

Paper & pulp companies

Energy production companies

Sawn woodSawn wood Panel productsPanel productsVeneerVeneer PlywoodPlywood Paper products

PulpPulp

Biomass energy

Biomass energy

Government landowners

LogsLogs BiomassBiomass

Concession holdersSmall scale &

plantation ownersLogging companiesIllegal loggers

Forests & Trees

Consumer Private sector

Consumer Individuals

Consumer government sector

Wood residuesWood residues

Paper MillsPulp MillsSaw mills Veneer plants Plywood mills Energy plant

Natural forest

PlantationsEnriched natural forest

Agroforestry & Individual

trees

Local individuals & communities

Timber value chain

Results Discourse analysis

1. ES not defined in Dutch policy: vague, container term

2. ES used to connect economics and ecology, emphasising the economic

use of natural resources and biodiversity

3. Couched in terms of economic value, strong emphasis on market

mechanisms to ensure sustainable use and maintenance of ES

4. Biodiversity “valuable” frequently associated with conservation, new

market-based initiatives & financial instruments to maintain it

5. Dutch sustainability agenda strongly internationally driven- emphasise

Dutch competiveness

6. Business partners stimulated to lead, government facilitating,

stimulating and supporting role – creating space for enterprises to

take sustainability initiatives and develop innovations

Results Selected cases of chain innovations

Case Driver Focus Innovation Learning

Sustainable

Trade Action

Plan 2011-2015

Dutch

government

Multi-stakeholder

partnerships and platform

Institutional

framework,

finance (€105

million 5 years)

Explicit in IDH

business model

Forest

Stewardship

Council (FSC)

certification

(International

and Dutch)

Private sector

Certification for sustainable

operations, specific

expanding certification to

ecosystem services

Include

ecosystem

services in

certification,

process

orientated

Pilot, ForCES

multi-

stakeholder,

learning explicit

Dutch Public

Procurement

Policy

EU &

Government

driven

GFTN and TPAC as a multi-

stakeholder platforms

Framework

conditions,

regulations to

drive innovations

in chains

Linked to FSC

and PEFC

certification

standards

REDD International,

NGOs, national

policy

Multi-stakeholder platforms Novel mix of

finance, policy

practice &

research,

resource focused

Pilots learning

orientated,

Specific mention

ecosystem

services

IDH & Action Plan for Sustainable Trade

2011-2015

ES not explicit in IDH & STAP model and not mentioned in its literature or

interviews:

IDH stimulates “trade in certified sustainably produced timber and other forest

products is a proven mechanism for promoting sustainable forest

management”. STAP stimulates certification, especially FSC, seeks to increase

demand for certified timber in Netherlands & Europa.

Innovations: chain wide, PPP matching system stimulates innovations and

‘tried & tested’’ approach, focus on sustainability problems central. Platform

and network approach

Stakeholders: all actors – but excludes some (CSOs, research), accent on

business, government role indirect as IDH executes Dutch government policy

PROCESS DYNAMICS

Harv

este

rs

Resource

Pro

cessors

Production & processing T

raders

Wholesale

Reta

ilers

Retail

Consum

ers

Consumption

FRAMEWORK CONDITIONS Stimulating PPP

Chain platform

CSOs & NGOs

Research Government Enabling e.g. certification

Sustainable Trade Action Plan & IDH ESS addressed:

- Provisioning goods (timber)

Via FSC

- Goods (timber, non-timber)

- Regulating functions

- Support functions

- Cultural functions

+

- Biodiversity

Forest Stewardship Council

All ESS explicit (some implicit) in FSC standards & principles

Further being developed in FoRCES “Expanding FSC Certification

to Ecosystem Services” pilot project – bundles ESS

Innovations: chain breed (traceability), emphasis on ES

production level (forest) & consumer, multi-stakeholder, only

certification organisation to look at multiple ES products and

services - other schemes (e.g. carbon) look at just one.

Stakeholders: companies (timber companies/ timber concession

holders , transporters, processers, retailers) & NGOs (WWF,

Greenpeace, SMN, ICCO)

Roles: joint development and implementation of standard, criteria

and system

PROCESS DYNAMICS

Harv

este

rs

Resource

Pro

cessors

Production & processing T

raders

Wholesale

Reta

ilers

Retail

Consum

ers

Consumption

FRAMEWORK CONDITIONS Voluntary

Market-based

Chain platform

CSOs & NGOs

Research Government Enabling

e.g. certification

Forest Stewardship Council ESS addressed:

- Provisioning goods (timber,

non timber, carbon in

ForCES)

- Regulating functions

- Support functions

- Cultural functions

+

- Biodiversity

Dutch sustainable procurement

ES largely implicit in Dutch 2008 procurement criteria for timber

(TPAC), although forest regulation function explicitly stated.

Innovations in chain: example and target setting by government as

buyer, tests use of certification (FSC, PEFC) as way of meeting 100%

sustainable procurement by 2010, code of conduct, controls &

sanctions by business association VVNH.

Stakeholders: government buyers, construction & timber company

suppliers, Association Dutch timber companies, NGOs

(Milieudefensie), SMK/TPAC, Dutch Agency, research bodies, customs.

Roles: central government ‘steers’ (via financing), policy

implementation by SMK/TPAC, independent testing by TPAC trade

mark, self-regulation (enforcement) timber sector (via association),

import authorities.

PROCESS DYNAMICS

Harv

este

rs

Resource

Pro

cessors

Production & processing T

raders

Wholesale

Reta

ilers

Retail

Consum

ers

Consumption

FRAMEWORK CONDITIONS Regulation

Chain platform

CSOs & NGOs

Research Government Enabling

e.g. certification

Public procurement ESS addressed:

- Provisioning goods (timber)

Via FSC

- Provisioning goods (timber,

non-timber)

- Regulating functions

- Support functions

- Cultural functions

+

- biodiversity

REDD+ in Indonesia

ES only implicit in REDD+ pilot projects. CO2-reduction and

biodiversity protection only ES that are specific.

Innovations: new legal and institutional setting (new actors: REDD+

Commission, Bappenas, UKP4, REDD+ Task Force) for REDD+ in

Indonesia.

Stakeholders: Ministries Foreign Affairs & Economic Affairs, Dutch

Ambassador, NGOs (WWF, Greenpeace), FSC Nederland, IDH Borneo

Initiative, IUCN-NL, NL REDD+ platform, researchers.

Roles: Dutch (indirect) financing of FCPF-World Bank en direct ODA

support (for REDD+), Dutch ambassadorial support and from bilateral

support to Indonesian government, NGO’s & enterprises.

PROCESS DYNAMICS

Harv

este

rs

Resource

Pro

cessors

Production & processing T

raders

Wholesale

Reta

ilers

Retail

Consum

ers

Consumption

FRAMEWORK CONDITIONS Voluntary

Global convention

Chain platform

CSOs & NGOs

Research Government Enabling

e.g. certification

REDD ESS addressed:

- Provisioning goods (timber,

carbon)

- Regulating (climate)

+

- biodiversity

Multiple chain stakeholder involvement seen as critical to success

ES have been largely not made explicit in cases, instead

sustainability and biodiversity

Exception is FSC certification –driver to integrate ES in 3 cases

Drivers vary per cases- mandating, facilitating, partnering and

endorsing

Framework conditions triggered innovations - but created barriers

Differing extent to which civil society and consumers (private,

corporate or public)

Power and control of the chain, especially access to information and

institutional building, important to how innovation introduced and

its impact.

Commonalities & differences

Conclusions 4 cases illustrate studies dependence upon 2 governance or steering

mechanisms: market based & regulatory

Actors remarked that ES concept is not clear and is too complex -

confusion with concepts of biodiversity and sustainability

Timber certification forms basis of innovations in all 3 cases

Paradox: Dutch government does not intervene in FSC standard

(companies & NGOs in lead) → role limited for Dutch government to

promote FSC certified timber (procurement policy & financing IDH)

so Dutch government only indirectly able to promote ES via FSC

certification (FSC & IDH members). Risk of derailing by interests of

other chain actors and other initiatives with more control in chain

ESS Cascade (Potschin & Haynes-Young, modified)

Governance and

management

institutions/systems

for public and private

goods & services

Governance and

management institutions

for public and private

goods & services

1. Simplify terminology

2. Move up from concession and chain to landscape level

3. Lengthen temporal focus further than just ‘since certification’

4. Refocus on ES at other chain stages- not just production

5. Move towards evidence based policy making on impact of certification on ES

6. Make ES conservation through certification more explicit

7. Develop & use (internationally accepted) impact indicators for ES assessment to “see through the trees” of multiple certification schemes and sustainable forest management initiatives

Recommendations

Questions?

Comments?

More information:

[email protected]