Think Piece 2017 Encounter London-Edinburgh 21st - 25th June #NGP2017

The role of planted forest in combating illegal logging and climate change

During the encounter we will be exploring a number of issues connected to forests, plantations and climate change. This think piece and these questions is to help participants understand some of the underlying issues and whilst also helping them think about the bigger picture. NGP does not try to provide answers to these questions, but rather it aims to develop wider understanding of these complex and multi-layered issues. The encounter is a unique opportunity to explore these issues, to ask lots of questions and to hear a wide

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range of possible solutions.

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What do we mean by a climate resilient landscape? We know that climate change will have significant impacts on our forests and plantations both in terms of climate (in particular temperature and rainfall) but also species and biodiversity. Is it possible to future proof our forests or rather what species of trees should we be planting now to ensure that we have sustainable forests in 50 or 100 years’ time? Can we assess the resilience of a landscape, could we look simply at species diversity or should we develop a specific matrix for each region or forest type to better understand how it will be impacted by a changing climate?

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Can we integrate forestry and plantations into other land uses? We often think in boxes, and like to compartmentalise people and land use types. “I’m a forester and you are a farmer”. The area on the map shaded in dark green is a forest and shaded light green is a field, but can we become more sophisticated than that? Managing land for a timber crop is broadly similar to managing land to grow wheat or barley, just simply that the time scales are different. Diverse farms and diverse landscapes are much more resilient to change, than those depending on a single crop or plantation type. How can we encourage and support initiatives such as agroforestry, in landscapes which are often focussed on the production of a narrow range of commodities ?

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Can we maintain the value of forest certification, and at the same time reduce the cost and complication of being certified? For many years there has been a desire to reduce some of the bureaucracy involved in forest management certification. It is concern about this bureaucracy and its potential cost that prevents many smaller producers (and some larger ones) from becoming certified and producing certified timber. Could we use a risk adjusted, to reduce some of that bureaucracy? What particular requirements can we leave-out from an audit, or audit less or more intensively? How do we balance the risk of not auditing a particular issue with the risk of a future failure? Does amalgamating a large number of small forest owners help us reduce those risks, particularly by using Group Scheme Certification? Group certification is a way for more than one forest operation to be certified under a single FSC certificate. The certificate is held by one organisation or person on behalf of a group of forest owners or managers who agree to participate in the group. An FSC accredited certification body will audit a sample of members and carry out a risk assessment of the entire group scheme, rather than auditing each individual forest owner.

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How do we balance the trade-offs between forest restoration and forest productivity? The global demand for forest products is set to triple by 2050, whilst at the same time we know that the world’s forest are continuing to be lost and degraded at an alarming rate. Plantations represent about 7% of the world’s forest cover but have the potential to meet between 50% and 70% of the world’s round wood requirements. The Bonn Challenge is a global effort to bring 150 million hectares of the world’s deforested and degraded land into restoration by 2020, and 350 million hectares by 2030. How do we find the balance between restoring the world’s forests for social and biodiversity reasons, whilst simultaneously increasing production of sustainable forest products for a range of uses? And what are the finance mechanisms available to make restoration at scale? Should that restoration be focussed in key areas where those forests will have the most impact on biodiversity such as tropical rainforests? Similarly should we focus plantation development and expansion in already degraded areas and close to the end market for the products which they produce?

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Forests and plantations Forests and plantations have a unique role in value creation in rural economies; they can offer a long term buffer against rapid changes to the economy and to the climate. They are not just a source of timber, but also a supplier of a wide range of other ecosystem services including biodiversity, carbon sequestration and flood mitigation. This economic value and these wider ecosystem values are not guaranteed unless we manage our forests and plantations sustainably. However, the increasing global demand for forest products, and for the other ecosystem services means that we also need to significantly expand our forests and plantations. Where and how this expansion occurs, is critical if we are to future-proof our landscapes and make them climate resilient. There are no simple solutions to this expansion, and no secret formula to decide where trees should be planted, or even what type of tree. The only way forward is through open dialogue and discussion, which recognises our common future challenges.

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UK and Global Forestry The UK is the 3rd largest net importer of timber in the world, the vast majority of this total is soft-wood timber from the boreal forests of northern Europe and Russia. However a significant amount is also from tropical forest countries. In a number of locations, legal and sustainable supply of timber to the UK is at risk of depletion. The years of supply remaining for primary, secondary and plantation forest has been estimated in coun-tries that supply a significant proportion of UK timber and timber product imports through bilateral trade. These indicate that a number of source countries are on the verge of depleting their reserves of forest available for production, factoring in the percentage area of forest designated for logging and for forest protection and conservation.

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UK Timber Industry The UK timber industry contributes significantly to the domestic economy, directly and indirectly. The total gross value added (GVA) generated in the UK economy by the timber industry was £21 billion in 2013/14, or around 1% of UK GDP. This breaks down as value generated through the use of timber in downstream industries (£14.4 billion), the direct contribution of the timber industry itself (forestry, harvesting and primary processing £4.1 billion), value generated by the timber industry through its spending in upstream industries (£1.5 billion), and the spending power of individuals employed (£0.8 billion). Comparing projections of supply from UK forests against simulated domestic demand growth of 5.5% to 2030, reinforces these concerns. It suggests that the current ratio of domestic to imported supply (40:60 in 2014) can at best be sustained until 2030. Assuming this modest growth stays roughly the same to 2050, the proportion of domestic timber will reduce to 22% by 2050, if not sooner. The UK needs to increase its capacity for commercial timber growth without impacting on forests’ other social and ecological values. Landscape scale management focuses on coordinating multiple ecosystem functions and services across a landscape rather than managing individual sites, each with a single purpose. This approach could enable the UK to develop areas of forest for multiple uses, of a higher quality than previously seen. Although requiring a greater level of planning in decision-making and stakeholder engagement.

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UK Timber Scottish Forestry Industry Scotland’s The UK timber forests industry and woodlands contributescover significantly 1.44 million to the hectares domestic or economy, 18% of directly the totaland landindirectly. area. Forestry The total Commission gross value Scotland, added which (GVA) manages generatedthe in the UK economy National Forest byEstate the timber on behalf industry of the was Scottish ~ £21.0 Government billion in 2013/14, Ministers or around owns or manages 1% of UK 470,000 GDP. hectares (33%) with the remainder largely in privately ownership. This breaks down as value generated through the use of timber in downstream Woodland cover industries in Scotland (£14.36 increased, billion), the primarily directdriven contribution by the of increase the timber in industry itself plantation forestry, (forestry, relatively harvesting slowlyand fromprimary 7% (0.51 processing million ha)- £4.1 in 1947 billion), to 8% (0.66 hectares) 1965 and increased more rapidly to in 12% (0.92 value million generated by theintimber industry through its spending upstream million hectares) in themultiplier”) 1980 and 16% (1.28 million ha)the byspending the late 1990’s. industries (“spending (£1.51 billion), and power of individuals employed (£0.78 billion). Over the last 30 years there has been a marked change in the approach to designing woodlands in Scotland, withforests a strong emphasis on providing Comparingnew projections of supply from UK against simulated domesticbenefits. multiple demandIngrowth the 1970’s of 5.5% the to emphasis 2030 reinforces was more these focussed concerns. on timber It suggests that production, withthe large current areasratio of single of domestic speciesto monocultures imported supply planted. (40 : 60 in 2014) can at best be sustained until 2030. Assuming this modest growth Existing plantations staysare roughly being the converted same to after 2050, timber the proportion harvesting by of domestic timber will reduce diversifying tree species, by between age structure a third and andathe halfproportion to ~22% by of open 2050,spaces. if notrestructuring This sooner. process is routinely applied to develop forests that are increasingly valuable for biodiversity and recreation as well as a timber The UK needs resource. However to increase it is vitalitsthat capacity this restructuring for commercial doestimber not significantly growth without future impact impacting timber onproduction forests’ other andsocial the investment and ecological in local values. timber Landscape scale management focuses on coordinating multiple processing. ecosystem functions and services across a landscape rather than managing In recent years, individual the economic sites, each value withofa forestry single purpose. in the rural economy has been more widely recognised. In late 2015 the Scottish Government Though requiring published “The economic a greatercontribution level of planning of forestry in decision-making in Scotland” which and stakeholderthat highlighted engagement, the contribution this approach of forestry could increased enabletothe £954 UKMillion to develop areas ofValue (Gross forestAdded) for multiple from the uses, 2008 of afigure higher of quality £670 Million. than previously Over the same seen. time-frame the number of people employed in the forestry and sector has increased by 50% to 25,000.

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The NGP 2017 Encounter will be co-hosted by WWF and the Forestry Commission in the UK

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NEW GENERATION PLANTATIONS PLATFORM PARTICIPANTS are: State Forest Administration of China, Forestry Commission of Great Britain, Governo Estadual do Acre, Brazil, APSD, Arauco, CMPC, Fibria, Kimberly-Clark, Mondi, Navigator, New Forests Company, Stora Enso, Suzano, UPM, Veracel.

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NGP 2017 ENCOUNTER COLLABORATION with: UK Confederation of Forest Industries, IUFRO Sustainable Planted Forests for a Greener Future Task Force, Forest Stewardship Council, Boreal Forests platform, Institute of Forest Biosciences and The Forests Dialogue.

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#NGP2017

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2017 Encounter London-Edinburgh 21st - 25th June

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NGP ECOSYSTEM OF COLLABORATION

Main Sources WWF - 100% SUSTAINABLE TIMBER MARKETS THE ECONOMIC AND BUSINESS CASE SRUC – Rural Policy Centre – Rural Scotland in Focus 2016

Think Piece - New Generation Plantations

How can we encourage and support initiatives such as agroforestry, in landscapes which ... The UK is the 3rd largest net importer of timber in the world, the vast.

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