FLEGT

Illegal logging is the harvest, transportation, purchase or sale of timber in violation of laws. The harvesting procedure itself may be illegal, including using corrupt means to gain access to forests; extraction without permission, or from a protected area; the cutting down of protected species; or the extraction of timber in excess of agreed limits. Illegal logging is a driving force for a number of environmental issues such as deforestation, soil erosion and biodiversity loss which can drive larger scale environmental crisis such as climate change and other forms of environmental degradation.

Illegality may also occur during transport, such as illegal processing and export (through fraudulent declaration to customs); the avoidance of taxes and other charges, and fraudulent certification. These acts are often referred to as "wood laundering".

Illegal logging is driven by a number of economic forces, such as demand for raw materials, land grabbing and demand for pasture for cattle. Regulation and prevention can happen at both the supply size, with better enforcement of environmental protections, and at the demand side, such as an increasing regulation of trade as part of the international lumber Industry.

Overview

Illegal logging is a pervasive problem, causing enormous damage to forests, local communities, and the economies of producer countries. The EU, as a major timber importer, has implemented the European Union Timber Regulation as means to halt the import of illegally sourced wood products. The identification of illegally logged or traded timber is technically difficult. Therefore, a legal basis for normative acts against timber imports or other products manufactured out of illegal wood is missing. Scientific methods to pinpoint the geographic origin of timber are currently under development. Possible actions to restrict imports cannot meet with WTO regulations of non-discrimination. They must instead be arranged in bilateral agreements. TRAFFIC, the wildlife trade monitoring network, strives to monitor the illegal trade of timber and provide expertise in policy and legal reviews.

Scale

It is estimated that illegal logging on public land alone causes losses in assets and revenue in excess of US$10 billion annually. Although exact figures are difficult to calculate, given the illegal nature of the activity, decent estimates show that more than half of the logging that takes place globally is illegal, especially in open and vulnerable areas such as the Amazon Basin, Central Africa, Southeast Asia and the Russian Federation.

Available figures and estimates must be treated with caution. Governments tend to underestimate the situation, given that high estimates of illegal logging may cause embarrassment as these suggest ineffective enforcement of legislation or, even worse, bribery and corruption. On the other hand, environmental NGOs publish alarming figures to raise awareness and to emphasise the need for stricter conservation measures. For companies in the forestry sector, publications making high estimates can be regarded as potentially threatening for their reputation and their market perspective, including the competitiveness of wood in comparison to other materials. However, for many countries, NGOs are the only source of information apart from state institutions, which probably clearly underestimate the true figures. For example, the Republic of Estonia calculated a rate of 1% illegally harvested timber in 2003, whereas it was estimated to reach as much as 50% by the NGO "Estonian Green Movement". In Latvia, the situation is comparable; anecdotal evidence points towards 25% of logging being illegal.

Consequences

Illegal logging contributes to deforestation and by extension global warming, causes loss of biodiversity, and undermines the rule of law. These illegal activities undermine responsible forest management, encourage corruption and tax evasion and reduce the income of the producer countries, further limiting the resources producer countries can invest in sustainable development. Illegal logging has serious economic and social implications for the poor and disadvantaged with millions of dollars worth of timber revenue being lost each year.

Furthermore, the illegal trade of forest resources undermines international security, and is frequently associated with corruption, money laundering, organized crime, human rights abuses and, in some cases, violent conflict. In the forestry sector, cheap imports of illegal timber and forest products, together with the non-compliance of some economic players with basic social and environmental standards, destabilise international markets. This unfair competition