‘VALIDATION OF LEGAL TIMBER PROGRAMME’ (VLTP)

Russian Far-East Khabarovsk Region

Illegal Logging Update and Stakeholders Consultation 20.01.2006

Chatham House, London

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VLTP being implemented as from 01.01.2006 in Russia

Khabarovsk region of the Russian Far East:

first region to implement VLTP

the 2nd largest timber producing region in Russia

– annual harvest of over 9 million cubic meters

– 8 million m3 produced for export

– 99% to China, Japan and Korea (China over 60%)

200 logging & processing companies (some

international)

forest system based on concessions (long term lease of

forest resources) and annual permits

‘VALIDATION OF LEGAL TIMBER PROGRAMME’ (VLTP):

BECOMING OPERATIONAL

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WHAT IS VLTP?

a programme of independent timber legality verification designed by SGS

an alternative but complementary / stepwise approach to responsible FM and Certification

a tool designed to meet the requirements of international mechanisms (eg. ENA FLEG, EU FLEGT) – VLTP Statements could serve as a basis for issuing official export permits

a scheme implemented in the Khabarovsk region under regional government mandate and on a voluntary basis

operated by SGS in association with a local partner - the RFE Forest Certification Centre (FCC)

SGS VLTP Statements and Stickers (for use on products) provide independent and internationally-recognized assurances that wood-based products have been produced and sold legally, in compliance with specified legality criteria

VLTP processes: a combination of audits, spot checks and monitoring of Legal Origin (company,

production sites), Legal Compliance (activities, products), and Traceability a CoC mechanism for companies processing and trading in legal products

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VLTP in the Khabarovsk Region: a Government initiative

The Government of the Khabarovsk Region requested voluntary forest certification or verification as a tool to combat illegal logging, associated trade and corruption in the forest sector

In 2005 the interdepartmental working group (IDWG) selected the SGS concept of Independent Validation of Legal Timber note: IDWG was created by a decree of the Governor of the

Khabarovsk Region to assist with development of voluntary forest certification. The IDWG members represent federal and regional government departments, agencies and institutions which are responsible for forest inventory, management, monitoring and control as well as for developing regional and federal legislation

The regional Government endorsed the scheme, including a preliminary definition of “legal timber” and methods to verify it

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The VLTP scheme will involve the Government, an independent verifier and the main stakeholder groups in different ways: Collaboration Agreement between the regional Government and SGS

on implementation of VLTP Operation Council (OC) will:

– be based on IDWG members and also include representatives of local environmental NGOs, industry, indigenous people association, etc.

– approve and maintain the VLTP Standard– manage interdepartmental coordination in matters related to VLTP – monitor the implementation and functioning of the Programme– manage a dispute settlement and an appeal mechanisms

FCC: provides technical assistance such as education and training, assistance with improvement of forest management standards and company level CoC systems, etc.

Partnership between SGS and FCC: will eliminate risks of conflict of interest by separating independent third party auditing and consulting

International environmental/ social NGOs will be invited to sit in an Advisory Committee and meet with the OC to make recommendations

Open lines (Internet, phone/fax, post, seminars) will enable civil society and the public to interact with the Programme

VLTP in the Khabarovsk Region: a multi-stakeholder partnership

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STATUS OF VLTP IMPLEMENTATION

October 2005: first VLTP informational workshop held in Khabarovsk logging companies representing 50% of regional timber production

participated

December 2005: several of the biggest companies expressed interest in participating and filed formal Applications

January 2006: VLTP Agency starts operating procedures and documentations being developed

February 2006: VLTP Standard approved, following expert consultations educational & training workshop organised by FCC with USAID support 28 companies from four Russian Far East Regions have registered

Initial activities: training of local auditors (VL, CoC) initial auditing of 3 logging companies with over 600,000 m3 of timber

production (export to China and Japan)

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FUTURE PROSPECTS for VLTP in Russia

As from 2007 Regional Governments will be responsible for all forest management functions

There is potential for verification of legality to be implemented in other regions: as a replication of the VLTP model under similar regional

schemes or to expand under the SGS ‘Timber Legality and Traceability

Verification’ (TLTV) service to individual companies

All of you who are interested are kindly invited to provide support and input to the development of VLTP in Russia

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THANK YOU!

Andrey ZakharenkovRFE Forest Certification Center, Khabarovsk, Volochaevskaya, 71Phone/fax (4212) 21-79-52

Email: ntfpas@mail.ru Antoine de La RochefordièreSGS Natural Resource Monitoring Services (NRMS)Sustainable Forestry Programme Geneva, SwitzerlandWeb site: http://www.sgs.com/forestrymonitoring Email: antoine.delarochefordiere@sgs.com