Aid, trade, diplomacy and law enforcement
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1 Aid, trade, diplomacy and law enforcement A Dutch view on reducing deforestation in supply chains of agricultural commodities. Rob Busink, Nature and Biodiversity Department Transatlantic Dialogue, October 2014, Washington
2 Outline of presentation Dutch International Forest policy Agricultural Commodities involved Palmoil as an example Experiences and lessons learned Policy options Recommendations Transatlantic Dialogue, October 2014, Washington
3 Dutch International Forest Policy Main goal: achieving sustainable forest management at the global and European level By: promoting legal and sustainable timber production sustainable trade chains of commodities that contribute to deforestation like palm oil, soy improved eco efficient agriculture production an adequate and sustainably financing of forest management Transatlantic Dialogue, October 2014, Washington
4 Current instruments for sustainable timber trade Government procurement policy for sustainable timber; EU legislation concerning illegal timber Development cooperation and capacity building Tax facilities (green investment) Green deal between government and private sector Transatlantic Dialogue, October 2014, Washington
5 Agricultural Commodities On which agricultural commodities we focus? Criteria: Significant impact of production on environment Dutch leverage in trade: large volumes; significant player Commodities Soy Palm oil (after China and India Netherlands is 3-rd importer) Cocoa Our view on sustainable production of agricultural commodities: To contribute to worldwide sustainable economic development in the agricultural sector, as an engine for fair income and productive employment Transatlantic Dialogue, October 2014, Washington
6 Palm oil as example; a Dutch approach (1) Our approach: innovative national partnerships between all stakeholders Solutions: effective and socially, economically, environmentally sustainable Strong collaborative and strategic relationships needed between the private sectors and civil society Netherlands government does not produce nor procure: therefore in 2007 policy letter to Parliament which was the start of current approach Transatlantic Dialogue, October 2014, Washington
7 Palm oil as example; a Dutch approach (2) Then international Multistakeholder approaches like RSPO step in; Dutch government facilitated this process; Most important: Dutch industry has taken its responsibility: Manifesto Task Force Sustainable Palmoil: after 2015 only Sustainable Palm Oil for domestic use. Unilever even after 2014 No government interference, no WTO disputes
8 Results
9 Lessons learned No government interference when it is not needed Stakeholder approach very important Collaborative and strategic relationships between private sectors and civil society needed. Government only supporting and stimulating; Monitoring of progress needed
10 Production efficiency Deforestation can also be reduced by increasing production efficiency. A rough calculation: Malaysia 4.5 mln ha Average:4 ton/ha Large companies 3.0 mln ha Average: 8 ton/ha Smallholders 1.5 mln ha Average:2 ton/ha Small holders Average: 4 ton/ha Save ha Small holders Average: 8 ton/ha Save 1.5 mln ha
11 Comparison: timber - palm oil Government involvement in production (state owned forest) and consumption (procurement) Many producing countries and companies involved in production, processing and trade Sustainably produced timber has to cover all the costs of sustainable forest management; low benefits per ha No agreed view on sustainably produced timber No government involvement in production as well direct consumption; much more private sector involvement Limited number of countries and companies involved in production, processing and trade; Sustainable palmoil production relatively high benefits per ha Agreed view on sustainably produced palm oil (RSPO)
12 Policy options for reducing impact of commodities Facilitate and support private sector initiatives/public private cooperation (including the financial sector) Increase production efficiency through ODA or private initiatives Public procurement policy (no one size fits all approach); stimulating globally accepted standards (ISO) legislation and law enforcement (Voluntary) partnership agreements Transatlantic Dialogue, October 2014, Washington
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