The merged body brings together merchants

ETTF News SUMMER 213 New European union speaks up for timber The merger of the European Timber Trade Federation (ETTF) and Federation Européenne Negoce de Bois (FEBO) is going ahead at the end of the year, following meetings of both organisations in Cologne. The two bodies, representing timber importers and merchant/traders respectively, have been moving toward a union since 211 when ETTF General Secretary André de Boer took the same role at FEBO. Contents Earlier this year FEBO President Marc Chambost also joined the ETTF Board. ETTF president Andreas von Möller said merger was the natural next step. The trend has been towards concentration of Andreas von Möller European timber trade bodies to further our interests and convey our views clearly to decision makers, notably the EU, he said. There are so many more issues we need to address together. The most recent example is the EU Timber Regulation (EUTR). If the ETTF had not existed before, we would have had to invent it for this alone. He added that the members of the merged organisation, which will be known as the ETTF, account for 8% to 9% of Europe s timber trade. Mr Chambost agreed the industry would be stronger working together. Timber importers and merchant/traders have so many goals in common, and we are far more likely to achieve them as a single body, he said. In particular we have a huge opportunity to concentrate marketing efforts and resources to capitalise on the environmental benefits of timber. He also stressed that the new body would retain divisions to represent the specific interests of merchants and importers. ETTF has nine industry P2 Belgian Federation backs Great Bear Rainforest conservation. P3 ETTF s Eastern Europe EUTR outreach information campaign a success. P4 UK s Wood for Good campaign starts 21, timber specifier database. P5 A school hit by an earthquake has been rebuilt, thanks to the Italian timber sector. P6-7 The Global Timber Forum could fill a key role, said delegates at its launch federation members, in the UK, France, Germany, Netherlands, Spain, Italy, Greece, Belgium and Italy. It also has three associate, the European Federation of Parquet Importers, and independent companies HF Blom in Norway and Robelbois in Morocco. The merged body brings together merchants FEBO has 11 members in 1 countries. These include bodies which are also ETTF members, plus several different merchant associations in the Netherlands, Germany, France and Denmark. In addition it has members in Austria, Luxembourg and Switzerland, and the Finnish Sawmills Association also belongs. The merger creates a more comprehensive industry alliance across Europe, said Mr de Boer. It will encourage greater co-operation and give us a stronger base and finances. and importers P8 European Wood Promotion Programme in London summit P9-1 Viewpoint articles by Mikael Westin of the Swedish Wood Preservation Association, Nurudeen Iddrisu of the Ghana Forestry Commission, and Dr Dwi Sudharto of the Indonesian Forestry Ministry. P11-12 The latest EU trade analysis and statistics from Forest Industries Intelligence The ETTF Newsletter is produced with funding from the UK Department for International Development Global Timber Forum launches at UNFAO The first steps in the creation of a new communication and networking platform for the international timber industry were taken in Rome in May. The launch meeting for the Global Timber Forum (GTF), which is backed by the ETTF, was held at the headquarters of the Food and Agriculture Organisation of the United Nations (UNFAO). It was attended by over 8 industry organisation and private sector delegates from 4 countries. The event was co-convened by the UNFAO and The Forest Trust/Timber Trade Action Plan (TFT/ TTAP). It followed the presentation of the GTF concept by the ETTF during Malaysia s Global Wood Mart last autumn. ETTF Secretary General André de Boer said the inspiration for the venture was the growing number of issues, from climate change and maintenance of the forest resource, through sustainable development and construction, to anti-illegal timber measures and marketing, where the timber sector needs increasingly to coordinate. Facing such challenges and opportunities, there has never been a more important time for our industry to present a united front, he said. At the GTF launch, achievable goals were put forward that we can now work towards. Jukka Tissari, Forestry Officer Trade and Marketing at the UNFAO Forest Products Service, said the GTF could also promote deeper collaborative action to foster responsible timber trading. Consultation is now underway on the formation of a GTF advisory panel and secretariat, and development of a media strategy, including the launch of a website. André de Boer Full story p6-7. SUMMER 213. 1

NEWS Belgians back Great Bear Austro-Italian contract update The Austrian and Italian timber industries have agreed a new Standard Contract for softwood trade. The Belgian Federation of Wood Importers (BFHI) has come out in support of the NGO-backed campaign to designate 7% of Canada s Great Bear Rainforest a protected area. Environmentalists have long been pressing for strict conservation rules to be imposed on most of the 32,km 2 forest on the Canadian west coast, and a deal was finally struck between the British Columbian government, NGOs, the forest products industry and first nation representatives in 26. As well as establishing the conservation zone, this also entailed imposition of strict management and timber production controls across the whole forest. The deadline to hit the 7% protected area target is now March 214, but currently it stands at just 53%, with nine months to go. It was to press the Canadian timber industry to up its efforts to bridge that 17% gap that Greenpeace approached BFHI. This led to a meeting and teleconference between the latter s secretary general Bart De Turck, federation member Jan Stevens of Stevens Establishments, representing Belgian importers sourcing from Canada, and Stephanie Goodwin and Jonas Hulsens of Greenpeace Canada and Belgium respectively. Belgium is not a major user of timber from the region, but a number of importers are sourcing Western Red Cedar for use in construction, and it was due to this that we were asked to use our influence, said Mr De Turck. Mr Stevens agreed to the request and contacted Canadian suppliers to urge their support for the conservation agreement. They reacted positively and we re now awaiting the result of final negotiations. The BFHI s action, he added, underlined the environmental commitment of the Belgian importing industry. AEIM raises risk ratings The Spanish Timber Trade Federation (AEIM) has raised the illegal timber danger rating to high for three African countries on its risk assessment website www. maderalegal.info. At the same time, AEIM is getting involved in initiatives to promote legal tropical timber, concerned that the EU Timber Regulation may lead to European buyers avoiding tropical sources generally over perceived illegality risk or the complexities of proving legality. The rating for the Democratic Republic of Congo and Central African Republic on the risk assessment website was increased due to political unrest, said AEIM General Secretary Alberto Romero. The Mozambique rating went The Great Bear Rainforest up after an Environmental Investigation Agency report, which alleged that nearly half of China s Mozambican imports in 212 were illegal. The website ratings are regularly reassessed to take into account latest reports from various sources, said Mr Romero. We will also reexamine the illegality risk of these countries as political and other considerations change. He added that AEIM is also keen to stress the importance of continuing to source legal timber from tropical countries, both for the sake of supplier and importer businesses, but also to give financial incentive for sustainable forest management. To this end it recently took part in a seminar in Madrid on public timber procurement of timber products, organised by Giampiero Paganoni and Christoph Kulterer The new contract was signed by the Austrian Sawmills Association (Fachverband der Holzindustrie Östereichs) and the Italian Wood Trade Association, (Fedecomlegno) following meetings between executives of the two organisations. The new agreement will optimise trade relationships between our countries and industries, said Fedecomlegno President Giampiero Paganoni, who signed the contract with Christoph Kulterer, President of the Austrian industry organisation. Austria supplies Italy with around 54% of its softwood needs. This comprises 2.5 million m 3 of sawn timber out of total Italian imports of 4.15 million m 3, and 276,775m 3 of logs from a total of 1.3 million m 3. It s thirty years since the first contract was signed, so we decided we needed to update some of the terminology and language, said late Fedecomlegno Vice-President Roberto Tengg (see p4). We ve also adjusted many quality parameters to reflect the advances in processing technology at Austrian sawmills. a range of bodies including NGOs, government agencies and the EU. There are serious concerns about the possible negative effects of the EUTR in tropical timber demand and consumption, and the shift towards other timber species, said Mr Romero. Alberto Romero 2. Summer 213

NEWS ETTF Eastern Europe EUTR outreach achieves goals A information drive organised by the European Timber Trade Federation to raise awareness and understanding of the EU Timber Regulation (EUTR) in Eastern Europe and Russia has been a success, said Secretary General André de Boer. The ETTF initiative was also backed by the UK Department for International Development and undertaken in association with nonprofit sustainability organisation NEPCon, which helped draft the Federation s own EUTR Due Diligence System (DDS). It comprised a series of seminars individually tailored for EU countries Latvia, the Czech Republic, and Poland, and suppliers to the EU, Ukraine and Russia. The outreach pamphlet in Russian Lively discussion followed presentations NEPCon legality experts explained the detail and background of the Regulation and presented solutions for tackling its requirements, including the ETTF DDS. Cretan trade gets Regulation message The Hellenic Timber Association (HTCA) hosted a seminar at the Wood Show Creta to explain the implications of the EU Timber Regulation (EUTR) to Cretan importers. At the event in Heraklion, HTCA scientific advisor Dr George Ntalos detailed the HTCA board director Gerardis George, Vicky Kaltsidou and Dr George Ntalos Speakers from local industry and representatives of international companies, such as IKEA, JELD- WEN and DLH, also gave their views on meeting the EUTR s legality requirements. The seminars each attracted between 35 and 5 participants drawn from all parts of the timber supply chain, plus trade associations, employers organisations, government agencies and NGOs. Representatives of the FSC and PEFC certification schemes also attended. The audience in the Czech Republic According to NEPCon, the turnout and lively debate following the expert presentations demonstrated that businesses in the region were becoming increasingly aware of the EUTR, but needed to learn more about its precise requirements and the tools available to help meet them. Our industries are beginning to experience the EUTR affecting their trade, said Michal Rezek, NEPCon representative in the Czech Republic. For instance, seminar delegates had already had requests for EUTR compliance assurance from customers and wanted information on how to meet that demand. This is what we set out to achieve to kick-start the process of adaptation by the timber industries in the region, said Mr de Boer. The seminars also brought local suppliers and international buyers together, which helped different industries realise the significance of the EUTR and the need to adapt to it. The seminar audience background and workings of the Regulation. He also explained the benefits of using the EUTR-aligned European Timber Trade Federation Due Diligence System for illegality risk assessing suppliers, which the HTCA has adopted on behalf of its members. A question and answer session followed, in which some participants commented that the EUTR was a burden given the state of the Greek economy, said HTCA director Yannis Albanis. But the event finished with several traders joining the HTCA. At the seminar, HTCA vice-president Vicky Kaltsidou also explained the wider benefits of HTCA membership, including its Code of Conduct. GD Holz members pass first inspection Thomas Goebel A record 1 people attended the annual Foreign Trade Day event of the German Timber Trade Federation (GD Holz) to discuss latest industry developments, including the first inspection of companies under the antiillegal wood EU Timber Regulation. Participants at the event in Bremen in April, heard from GD Holz chief executive Thomas Goebel and export department head Jonathan Stech, that Germany s EUTR Competent Authority, BLE (the Federal Agency for Food and Agriculture), had inspected three companies to ensure they had the proper due diligence risk assessment procedures in place. Two more inspections were lined up for May. At least two BLE officers attended each inspection, and gave no more than 48 hours notice. One company was operating GD Holz s due diligence system, which is aligned to the pan-european system developed by the European Timber Trade Federation. It was found to be working in line with the EUTR. However, another inspected business was importing only from Switzerland and had wrongly assumed it did not need to operate due diligence systems. The BLE officers told the company to implement them, but imposed no sanctions as these early inspections were only regarded as trial runs to fine tune procedures. The first wave of proper checks were due to start at the end of May. At the Trade Day, delegates also heard presentations on the state of trade and business outlook from Dr Alexander Krüger of Bankhaus Lampe and Ed Pepke of the European Forestry Institute. Among a range of issues, the latter addressed early trade impacts of the EUTR. Dr Krüger described the outlook for business as moderate. Attendees included 12 new GD Holz members. Summer 213. 3

NEWS Timber construction database starts to build The initial phase in the development of a comprehensive new online technical and environmental database to boost use of timber in UK construction is due to go live. The new website is the core element of Wood First Plus, the timber in construction initiative of the UK s long-standing timber industry promotion campaign Wood for Good. It will include life cycle analysis for timber and wood products, plus essential information on their use with Building Information Modelling (BIM) the software-based approach for all parties working on a construction project to plan and manage it, and predict and engineer its cradle to grave environmental performance. Leading timber architect Craig White of White Design, Wood for Good s new chairman, told campaign supporters at the database launch event that it was vital to put timber on an even competitive footing with rival materials. When I was starting my career all the information I needed to work in steel and concrete was at my finger tips, supplied by the steel and concrete industries, he said. I had to find out about working with timber pretty much by myself. The Wood First Plus site, he said, will make architects, engineers and other specifiers more comfortable and confident in using wood. He added its information would also help the timber industry and users navigate the EU Construction Products Regulation and CE Marking. According to Wood First Plus Project Manager and UK Timber Trade Federation (TTF) sustainability manager Stuart Harker, timber companies will also be able to use a platform within the site to help them develop their own Environmental Product Declarations (EPDs). This should give them significant savings over drafting them independently, he said. The LCA data for Wood First Plus will be collated by consultants PE International. And the American Hardwood Export Council (AHEC), which has just become a major Wood for Good sponsor, said it will contribute its own comprehensive US Hardwoods LCA work to the project, also undertaken with PE. The initial cost of setting up the database is Wood data can make UK architects more daring 18, and will be covered by Wood for Good, the TTF, Forestry Commission Scotland, and Scottish Enterprise. At the end of the day we will have a single, credible go-to point delivering the hard evidence construction specifiers need to make timber a first choice material, said Wood for Good Director David Hopkins. Technical and eco aspects are covered Pictures: UK Wood Awards EUTR authority visits Belgian importers The Belgian Wood Importers Federation (BFHI) has taken the country s EU Timber Regulation competent authority on fact-finding visits to member companies premises. The aim of the initiative is to familiarise our government s designated EUTR competent authority, FOD Environment, with the documentation and due diligence risk assessment system (DDS) used by our importers to comply with the Regulation, said BFHI General Secretary Bart De Turck. Taking part in the visits, accompanied by Mr De Turck, were FOD Environment s Policy Director Denis Pohl, Case Officer Olivier Desmaretz and Advisor General Roland Mertens of its inspection service, who heads its EUTR control operation. Members visited were Somex, Denderwood and Van Hoorebeke, which between them handle material from Africa, South East Asia and Russia. They showed the FOD Environment officers DDS documentation available from each of these sources and explained their inventory monitoring and chain of custody control systems. The programme of visits obviously underlines our commitment to a collaborative approach Van Hoorebeke took part in EUTR project to implementing the EUTR, said Mr De Turck, adding that it was hoped to arrange a visit by FOD Environment to plywood importer Altripan later in the year. Bart De Turck News Briefs Roberto Tengg Roberto Tengg dies Fedecomlegno vice president, Roberto Tengg, former chairman of timber agency Agrifor International srl, died on June 1 aged 73. Mr Tengg s long agency career started in 1966 and covered many different aspects of the trade. He was a pioneer in the development of the Italian market for US hardwood and OSB, and was also a prominent figure in the plywood business. He was also president of the Promolegno marketing initiative and vice-president of CEI-Bois. With his death, the timber sector has lost one of its most eminent representatives and greatest experts, said Fedecomlegno. Norway holds EUTR event Norwegian ETTF associate member HF Blom reports that Norway s Ministry of the Environment invited all timber importers in the country to an EU Timber Regulation information meeting at the end of May. More follows on www.ettf.info. UK TTF funds engineer student The UK Timber Trade Federation is funding an engineering student through a Timber Engineering Masters Degree at Edinburgh Napier University. The aim of the scholarship initiative, which individual timber companies are also backing, is to increase the UK s pool of timber engineering expertise. 4. Spring 213

News Wood school brings new hope after quake An all timber school built in Finale Emilia, Italy, with the support of the wood sector, has opened to replace one destroyed in a catastrophic earthquake. The previous Sacro Cuore kindergarten and primary school was damaged beyond repair by the quake that devastated the Emilia Romagna region in May 212. Subsequently the timber, cork and furniture industry association Federlegno Arredo, of which European Timber Trade Federation member Fedecomlegno is a part, stepped in to help. The organisation formed the hub of an alliance of 8 member companies, public bodies and designers, not just to replace the school, but build a state of the art structure that could withstand future tremors. The 16m 2 school, which has 24 pupils, is built in a mix of cross laminated timber, timber frame ETTF backs Cameroon governance events The European Timber Trade Federation (ETTF) supported two recent events in Yaoundé, Cameroon to inform the industry about developments in Congo Basin forest governance and the EU Timber Regulation (EUTR). The first was the Forest Governance Forum run by the IDL group and FODER. Also backed by the EU and UK Department for International Development (DFID), this conference, which attracted 2 people, brings together government, civil society, international organisations, the private sector, communities and the academic world to discuss forest governance issues, and particularly recently the EU FLEGT process and EUTR. Technical advisor to the ETTF Rachel Butler spoke on Private Sector perspectives in implementing EUTR, looking at how the Regulation will affect business interests in the region. Ms Butler also addressed a one-day workshop and MHM (Massiv Holz Mauer) solid wood panels. A fundamental component for the success of the project was FederlegnoArredo s decision to develop a design using a construction system that not only offers numerous competitive benefits, but is anti-seismic, highly ecologically friendly and delivers considerable energy savings, said Emanuele Orsini, of the Assolegno/Federlegno Arredo Houses and Wood Structures Group. It is also fast to build, so ideally suited to this sort of emergency situation. FederlegnoArredo president Roberto Snaidero said that members had given time, material and money for the project and that it involved competitors working side by side. The experience has been important for our federation, he said. In fact, it has given birth to a new business network in the sector. in Yaoundé on the EUTR, run by environmental lawyers ClientEarth, which attracted 4 people from the timber and forestry sectors of Cameroon and the Democratic Republic of Congo. She covered Delegates at the conference the implications of the Regulation for importers and what due diligence risk assessment means for timber producers. Like the Lacey Act and Australian Illegal Logging Prohibition, the EUTR changes one fundamental concept, she said. Risk and obligation to ensure legality now fall on the importer. She added that certification and legality verification can support due diligence illegality risk assessment under the EUTR, but do not assure compliance with its legality requirements. NEPCon raise Spanish EUTR awareness NEPCon s Christian Sloth leads the workshop The Spanish Timber Trade Federation (AEIM) took part in an EU Timber Regulation workshop in Madrid organised by non-profit sustainability organisation NEPCon recently. The event was open to AEIM members and other companies, and was attended by around 2 delegates, representing companies including a Portuguese paper business, NGOs and certification bodies. The event explained the aims of the EUTR, its legal requirements, due diligence illegality risk assessment systems and supplier verification. AEIM also took the opportunity to present its own EUTR-aligned due diligence system, although this is currently only available to members. It is now in use by 112 companies, said General Secretary Alberto Romero. Secretary General de Boer is knighted André de Boer, Secretary General of the European Timber Trade Federation has been made a knight of the Order of Orange-Nassau, one of the Netherlands' top honours. Mr de Boer received his title for his contributions to timber importing and promoting sustainable forestry, while in his previous post as long-standing managing director of the Netherlands Timber Trade Association, the VVNH. It was also in recognition of his work in local politics. He said he was very honoured by the accolade. "But I see it as much an honour for the VVNH and a tribute for the Netherlands timber industry, as a personal award," he said. Mr de Boer received his decoration from City of Amsterdam mayor Eberhard van der Laan. Mr de Boer has been presented with the annual award for Extraordinary Entrepreneurship by the Netherlands Association of Timber Agents. André de Boer wearing his insignia SPRING 213. 5

NEWS FEATURE Forum for the future A new international networking and communications platform could help the timber sector tackle key global issues. Mike Jeffree reports. The 8 delegates gathered in Rome for the launch of the Global Timber Forum (GTF) and to discuss its objectives were clear about what they did not want it to be. The world, they said, did not need just another timber trade conference or talking shop. The GTF had to offer something new. It must not duplicate existing organisations or initiatives, or as, one delegate put it, reinvent the wheel. It also had to deliver, said speakers. The Forum was heralded by its instigators, the European Timber Trade Federation (ETTF), as a new vehicle to boost networking and knowledge sharing across the industry. Its proposed role is to help spread of best practice, encourage and disseminate environmentally sound timber trading methods, and provide a channel for communicating solutions for shared problems and challenges. Andreas von Möller of the ETTF, Eduardo Rojas-Briales and Jukka Tissari of the UNFAO Speaking at the launch, Mohindra Chand of the Guyana Manufacturing and Services Association welcomed the initiative. If we can bring different stakeholders together in a true forum for sharing ideas and expertise to improve the performance of the industry, it could be very powerful, he said. John White of the UK Timber Trade Federation agreed. There is a huge amount of invaluable exchange and information out there in our sector. The opportunity for the GTF is to tap into and capture it for the benefit of a wider global audience, he said. Besides facilitating internal dialogue, delegates stressed, the GTF should look outward and help communicate the industry s opinions and messages to decision makers in government, the marketplace and NGOs. We often hear the story of the timber industry, but it s being told by other people; politicians, environmental activists, other industries with their own interests, said Ashley Amidon of the International Wood Products Association. If we want our good news to be heard, we have to tell it ourselves. Another speaker pointed out that a Forum was a not just a place for discussion and sharing information, but a market for promotion and selling. Delegates at the GTF launch Michael Buckley John Halkett One of our goals must be to lobby the case for timber in competition with rival materials Steve Johnson Steve Johnson of the International Tropical Timber Organisation (ITTO) took up the theme. One of our goals must be to lobby the case for timber in competition with rival materials, he said. There is a huge opportunity for us to share and use common information to explain the role and value of timber in the wider economic environment, agreed Gao Ya of the China Timber and Wood Products Distribution Association. At the two day launch, which was co-hosted at the headquarters of the United Nations Forest and Agriculture Organisation (UNFAO) by the ETTF, UNFAO and The Forest Trust/Timber Trade Action Plan, speakers addressed the key areas where the GTF could have most benefit. One was in helping the sector cope with the proliferation of anti-illegal timber regulations. Delegates agreed that all measures to eradicate illegal logging were welcome. But there was an urgent need for greater coordination between the demands of the increasing number of separate national and regional rules This would make them easier to work with and, as a result, work better for the sake of the forest and environment. There s a risk of all these different regulations and criteria imposing such a burden on suppliers that it results in diversion of timber to other markets, said ITTO Executive Director Emmanuel Ze Meka. We must work together so the cost of ensuring legality is not the creation of new barriers. There is also a danger that the focus on legality legislation and due diligence means that EU FLEGT Voluntary Partnership Agreements (VPA) and wider moves towards sustainability become sidelined, said Françoise Van de Ven of the Democratic Republic of Congo Timber Industry Federation (FIB). The conclusions of a delegate breakout group addressing this issue were reported back by Malaysian Timber Council London director Sheam Satkuru-Granzella. André de Boer 6. Spring 213

NEWS FEATURE The industry should capitalise on timber s potential in green building projects, like Melbourne s 1-storey CLT Forte Tower John Halkett Forum For The Future ctd... We can t expect the regulations themselves to be redrafted, but the GTF could assist the industry to achieve greater alignment in areas such as evidence of legality and how to meet due diligence requirements in a changing environment". she said. It could also encourage sharing of due diligence experience and expertise and highlight the value of the FLEGT VPA process in proving legality, even before the VPA is actually concluded. could further boost wood s prospects by building a library of timber construction case studies. In addition it could encourage a harmonised approach in the timber and wood products industry to environmental life cycle analysis (LCA), which was becoming an increasingly important criteria in building product Ultimately the timber industry must put itself in a position to benefit from anti-illegal timber legislation, said ETTF president Andreas von Möller. If we lose that battle, we lose the war. Another proposed goal for the GTF is to help capitalise on timber s potential in sustainable green building. Globally, said speakers, architects, designers and authorities are looking for ways to drive down the carbon and wider environmental impact of construction. Many have already discovered wood building products and systems as the answer, but more would follow if the timber industry spread the word and the knowledge in a more concerted and coordinated way. In his address entitled Building Greener, Higher, and a Better Life With Wood, John Halkett of the Australian Timber Federation highlighted how the latest engineered wood products enabled it to contribute even more to the green building revolution. Cross laminated timber (CLT) in particular is opening up new horizons, he said. It makes better use of the resource, competes structurally with concrete and has major benefits in terms carbon and weight; it s a cleaner, simpler, faster material to build with. A focus on sustainable timber production Reporting back the conclusions of the delegate group for this topic, Rupert Oliver of the American Hardwood Export Council (AHEC) said the GTF specification, and promote energy use per square metre as a rallying point for the use of timber. He said he would recommend that AHEC share its data with the GTF, including its extensive US hardwood LCA work. A key focus for the Forum, said speakers, would also be marketing and promotion. It could act as a global hub for market research and timber marketing campaigns. Ideas and information could be then be shared, collaboration encouraged and common international promotional messages developed. The GTF could also communicate the importance of sustainable timber production in providing communities with a financial incentive to maintain and develop the global forest resource Realising forest values, and sustaining local livelihoods, plays a key role in forest restoration and encouraging sustainable management worldwide, said UNFAO Assistant Director General Forestry Eduardo Rojas-Briales. Secretary General André de Boer confirmed that the ETTF would continue to fund the Forum s initial development. It would then need to secure wider industry backing, ideally, he said, in the form of small amounts from a large number of supporters. The next steps, said GTF facilitator and independent advisor to the ETTF Rachel Butler, would be further consultation on the establishment of an advisory board and secretariat, and development of a communications strategy, including a website and possibly other media, such as a newsletter. A group of delegates, The Forte Tower, in Melbourne representing the six continents and China, was also selected to draft a letter of commitment to be sent to prospective GTF participants worldwide. Michael Buckley of timber sector consultancy Turnstone Singapore, who chaired the second day of the launch, urged the GTF s supporters to form a clear vision for its future. We have a real opportunity here to take a step forward as an industry, he said. But we need to leave this process with an action plan that is simple, practical and doable. In his conclusion, Mr de Boer agreed with other speakers, that the project also needed to be driven forward urgently. We ve made the decision to establish the GTF, now we need to keep the momentum going, he said. We don t want to be having these same discussions in two years time." GTF and wood promotion Delegates at the GTF launch suggested a range of wood promotion roles for it: To collate quality data to support wood products' life cycle analysis claims To create a website for sharing timber promotion campaign information from around the world. To pool ideas and recent research findings related to the benefits of wood. Spring 213. 7

NEWS London summit for wood promotion The first annual meeting of stakeholders in the new European Wood Promotion Programme (EWP) took place in London in May, hosted by the UK Wood for Good campaign and Timber Trade Federation (TTF). Kimmo Jarvinen The promotional initiative, to pool the resources and expertise of timber marketing campaigns and organisations across Europe, was launched by the European Timber Trade Federation and European Organisation of Sawmills last year. Its first project is the EU Wood Growing Cities promotion, which is developing a marketing toolbox for the industry to use to highlight the environmental and performance benefits of using wood in urban construction. Twenty-five delegates from timber promotional bodies backing the initiative convened at London s Building Centre for the EWP two day meeting. They discussed examples of timber marketing best practice, focusing on which aspects of Wood: Growing Cities could be adopted on a pan-european level, and agreed to start joint PR activities promoting wood in construction. The toolbox was very well-received and all participants are committed to developing it Action urged on China imports The Belgian Wood Importers Federation (BFHI) is urging the EC to impose the EU Timber Regulation (EUTR) as strictly on imports of Chinese wood furniture as sawn timber and other wood products. The BFHI says EU annual imports of Chinese The tool box includes timber building case studies together, said Kimmo Jarvinen, Secretary General of EOS and coordinator of Wood: Growing Cities. For decades architects and builders have been trained to work and think in concrete. Only by combining our powers can we make wood top of mind again. By aligning communications, we can promote a really positive timber message covering construction, industry, economics and the environment across Europe, agreed David Hopkins, head of communications for the TTF and Wood for Good. It should make media, policy makers and specifiers sit up and take notice. furniture amount to 1.6 million m 3 of timber. That is half as much timber again as Europe s total imports of tropical hardwoods from all sources, said BFHI Secretary General Bart De Turck. Unless stricter controls are imposed on this trade, an important part of the EUTR s objective [to block illegal wood from the EU] risks being missed. He said the BFHI continues to press the Belgian EUTR competent authority FOD Environment on the issue and urges colleagues in the European Timber Trade Federation to address it. Netherlands nears sustainabilty target Members of the Netherlands Timber Trade Federation (VVNH) are making good progresss towards their 215 target of importing 85% of timber and wood products from third party verified sustainable sources. The 237 member companies between them import 2 million m3 of softwood, hardwood and sheet materials a year, 6-7% of the country s total. Last year they achieved an average 83% sourced from forests certified under the FSC or PEFC schemes. The figures respectively for softwood, panel products and hardwood were 96%, 76% and 48%. According to the VVNH, the industry has made steady progress towards its target through the economic downturn. In 211 the average across the import sector was 77% sustainable, in 21 71% and in 29 63%. Our 215 target is within reach, said VVNH managing director Paul van den Heuvel. But we must continue to encourage the use of wood from sustainably managed sources to ensure it is the norm across the whole marketplace. It has also been announced that the EU Sustainable Tropical Timber Coalition (STTC) will launch on November 6 in Amsterdam, rather than London as originally planned. The project is led by the Dutch government-supported IDH Sustainable Trade Initiative and also supported by the European Timber Trade Federation, FSC, PEFC and ATIBT. Its aim is to grow the European market for sustainably sourced tropical wood by 3% by working with private industry, governments and local authorities. For more contact Carolien de Boer: deboer@ idhsustainabletrade.com Graph showing VVNH members sustainably sourced imports. Green represents the average, blue softwood, yellow panel products and red hardwood. Plywood quality scheme launches The Plywood Committee of the German Timber Trade Federation, GD Holz, has launched a quality-driving project in response to concerns over structural grade plywood standards. The organisation says the Quality Initiative for Plywood, which held its first meeting in April, was launched in reaction to marketplace worries about the performance of structural products and whether some met CEN and national quality standards, were graded correctly and fit for purpose. A working group for the initiative has been developing uniform rules for plywood grading and aims to launch a Code of Conduct for importers and a scheme logo by the autumn. 8. Spring 213

VIEWPOINTS Recognise your true rivals The timber industry has become increasingly united in seeing non-wood materials as its key competition, but there s a risk of that unity breaking down over modified wood, says Mikael Westin, managing director of the Swedish Wood Preservation Association Mikael Westin "Since the mid-198s, when I started in the timber trade, there has been tremendous structural change, from production level through to distribution channels. Total production of Swedish sawn softwood in 1985 was around 12 million m 3. Today this figure is almost 5% higher. During the same period the number of sawmills in Sweden has been reduced by 5% to about 14 sites. The big mills have become even bigger, the medium-sized have merged and many small ones have disappeared altogether. In importing countries we have seen a similar concentration, among homegrown timber suppliers, traders and end users. Some regret this trend. But it has had its benefits, for instance leading to much greater focus of research and development resources. The result of that has been tremendous product development. In the beginning of the 199s many buyers in preferred green timber. Today drying technologies are high tech, giving much greater choice and enhanced performance. Consequently demands for specialities have become commonplace. A huge variety of new wood products have reached the market and this, in turn, has helped lead to impressive expansion of timber applications, notably in modern construction. Following this consolidation and development, we have also increasingly focused our joint communication activities, national and international, in recognition that the foremost rivals for wood products are non-wood materials. All sawmills and wood producers have come to accept that the biggest risk to their business is not posed by the mill next door, but suppliers of concrete, plastics or steel. At the same time, of course, the rival material sectors have strengthened their marketing arguments, including against wood. So today our industry has huge opportunities, but more so than ever, cannot afford internal disagreements and arguments. We must all agree that the use of any wood product is better than the use of a non-wood product. But there seems to be one sector this acceptance is not universal the modified wood industry. It has seen colossal investment and evolution in recent years. There are reports of 1m spent on developing the acetylation process alone, and a similar sum going into furfurylation. But why, after all this, is decking one of the prime markets targeted by modified timber? It is a low end product, selling in Swedish diy stores for about 1 per running metre, and then probably at a loss. Of course suppliers could say that modified timber can be a decking substitute for threatened species from tropical rainforests. But shouldn t the emphasis be on exploiting the material s technical benefits to find really new end uses and help the wider industry s efforts to compete with rival materials? With improved durability, stability and strength there are a range of areas where modified material can pose a serious threat to man-made products. But to me it seems the trade is more focused on selling the new products to the same old customers. Of course I am biased, as I represent the timber preservers in Sweden. But, after all the progress made by the timber sector in recent years, wouldn t it make more sense for the millions invested in these latest products to result in pushing back the technical and market boundaries for wood, rather than encouraging the industry to compete with itself?" Is modified wood right for decking? Ghana goes above and beyond The Ghanaian timber and forestry industry set its sights on not only meeting the latest international legality and environmental requirements, but exceeding them. Now it is focused on raising awareness of its achievements, says Mohammed Nurudeen Iddrisu, Head of the Ghana Forestry Commission (London Office) Nurudeen Iddrisu "In both developed and developing countries, there is increasing concern about the impact of logging on the environment. In this regard, the most common perception is that logging in the entire tropical region is largely illegal and a main cause of negative environmental effects. However, tropical countries such as Ghana, with a long standing history of sustainable forest management and timber trade partnership with the EU, have acknowledged this concern and are now genuinely taking steps to address illegal logging, alongside the development and improvement of sustainable forest management practices. Forest certification is undoubtedly cited as the ultimate step for ensuring forest sustainability. However its implementation has been difficult for most tropical countries due to the huge financial resources required, and other areaspecific implementation bottlenecks. As a result, a number of these states have positioned themselves to take advantage of the support provided under the EU Forest Law Enforcement Governance and Trade initiative (FLEGT) with the aim of concluding a FLEGT Voluntary Partnership Agreement (VPA), [which enhances access to EU markets through a FLEGT license in exchange for undertakings on forest Spring 213. 9

VIEWPOINTS Regulation puts industry on track ctd... management and timber traceability]. Following the inception of the FLEGT Action Plan, Ghana in 29 became the first country to sign a VPA with the European Union. To further demonstrate its commitment, the country also committed to applying the VPA legality standards to all its timber exports, regardless of destination, as well the Ghanaian domestic market. Illegal loggers must have nowhere to hide Indonesia s commitment to eradicating the illegal timber trade will soon lead to its first FLEGT-licensed timber under its EU Voluntary Partnership Agreement heading for Europe, writes Dr Dwi Sudharto, Director of Forest Product Process and Marketing Management at the Directorate General of Forest Management of the Indonesian Forestry Ministry Indonesian forest and timber industry, meaning there should be no shortage of SVLK-licensed timber available to ETTF members. We already have nearly half of all production forest and more than 65 timber processing companies audited. This means that most solid timber products are now available under the scheme. Timber is tracked along the supply chain In compliance with the terms of VPA, and with the ultimate aim of achieving a FLEGT licence, the Government of Ghana via its Forest Commission has developed, we believe, a thorough and credible Legality Assurance System (LAS) to reinforce and realign all forest governance laws to meet international standards, as well as ensure national sovereignty in its application. To advance this initiative, an Independent Monitor (MI) has been appointed in consultation with the EU and local civil society groups to add a further measure of transparency. A Wood Tracking System (WTS), enabling the establishment of a credible chain of custody from forest to port for wood products destined for either export or sale on the domestic market, has also been piloted with positive results. A service provider has now been appointed to extend this pilot to cover all forests, with final national rollout in consultation with the EU. Following this, the first Ghanaian FLEGT licence is scheduled to be issued early 214. And, while the VPA FLEGT processes have been worked out, steps were also taken to ensure that Ghana was ready and in full compliance with the legality requirements of the EU Timber Regulation (EUTR). In addition, through its London office, the Ghana Forestry Commission has started putting together an intensive Ghana s VPA Awareness Creation campaign, to be staged in workshop format in selected EU countries over coming months. We re confident that this whole process will benefit Ghana and consumer countries alike." 1. Spring 213 Shipments are checked and checked again Dwi Sudharto "The recent well publicised case of illegal logging in West Papua is a timely reminder that this is still an issue in South East Asia and that European buyers sourcing from the region have to be careful of falling foul of the EUTR, especially if purchasing timber products through seemingly innocent third countries. However there were two pieces of good news arising from this incident. The first is that the violations were picked up by Indonesia's Independent Forest Monitoring Network (JPIK), which is a key component of the country s SVLK timber legality assurance scheme. The second positive, is that none of the illegal timber had been licenced under the SVLK. Instead it was found hidden in containers in Surabaya, East Java. West Papua is remote and difficult to monitor, typical of much of Indonesia, which is why, when developing the SVLK, the Ministry of Forestry asked civil society to join forces with government and responsible business to be our eyes and ears in these far corners of the archipelago. We all want illegal loggers to have nowhere to hide. We also need civil society involvement to reassure our customers in Europe that SVLK really does mean Indonesian Legal Wood, and it is for such concerned markets that we developed the scheme over the past 1 years. It is now being rapidly implemented across the Half of production forests is now audited The new SVLK Licence Information Unit (LIU) is also fully operational and has processed over 3, export licences. These V-Legal licences must accompany all exports of the 24 HS Codes listed in the current trade regulation. What is more, buyers can instantly check the validity of the SVLK export permit by visiting the SILK website, http://silk.dephut.go.id, and entering the licence number. You can also email the unit directly at subdit-ivlk@dephut.go.id. Indonesia and the EU are also now gearing up for the launch of the first EU Forest Law Enforcement Governance and Trade-licensed (FLEGT) timber through the country s Voluntary Partnership Agreement. We ran a shipment test with the EU in late 212 enabling both sides to iron out glitches in the licencing system, and since March Indonesia has been ready to sign the VPA, which will cement our long partnership with the EU. In fact, as you read this, a team of top EU and Indonesian experts is making sure that the SVLK system will be fully operational and so meet expectations from EU consumers and traders when the VPA goes live. What is extra gratifying is that all this investment is proving good for business. Recent trade data demonstrates increased interest from EU buyers. So far so good! But we are already doing more, so check out how we progress with SVLK by visiting our website." The SVLK licensing scheme is growing fast

STATISTICS & ANALYSIS Construction contraction continues to curb EU imports The EU Timber Regulation has arrived at a challenging time for the industry, with EU timber product imports declining in line with deteriorating economic conditions, reports Rupert Oliver of Forest Industries Intelligence in his latest statistical analysis for the ETTF. In roundwood equivalent terms, EU timber product 28 29 21 imports Softwood sawn and are mouldings estimated at 39.4 1.9 million 9.3 1.6m3 in 212, Plywood & veneer 1.7 8.2 9.2 Hardwood logs 11.3 4.4 6.4 down Hardwood sawn 8% & mouldings compared to the 9.previous 5.9 6.4 year (Chart 1). Softwood logs 6. 3.9 4.7 A Joinery clear reflection of the continuing 4.4 3.3 weakness 3.5 in the Composite panel 2.1 2.3 2.5 wider EU economy, notably in construction. million m3 roundwood equivalent 6 45 3 15 Chart 1: EU-27 import volume of timber by product group 28-212 28 29 21 211 212 Timber Products by region 28 29 21 211 212 The Russia & impact CIS in 2241.9 value 1263.4 terms 1727.9 was 1868.9 less, 1735. but only China 1177.4 819.2 181. 193.5 198.8 Europe (Non-EU) 174.5 867.9 99.2 177.2 16.8 marginally, Other Asia with 1162.3total 836.7EU 926.6 imports 871.5 last 87.8 year around Africa Timber Products by region 1235. 77.2 789.3 79.7 7.8 7.2% Latin America lower at 16.7 28 to 6.66 661.1 29 billion 74.1 21 737.7 (Chart 211 626.3 2122). Composite panel North America 997. 648.7 781.4 717.1 616.1 Joinery Russia & CIS 2241.9 1263.4 1727.9 1868.9 1735. Softwood logs Pacific 16. 1.8 25.3 19. 17.2 China 1177.4 819.2 181. 193.5 198.8 Hardwood sawn & mouldings 8964.8 5814.8 761.7 7175.5 6662.9 Europe (Non-EU) 174.5 867.9 99.2 177.2 16.8 Hardwood logs Other Asia 1162.3 836.7 926.6 871.5 87.8 Plywood & veneer Chart EU-27 import value of timber by region 28-212 2: Softwood sawn and mouldings Africa 1235. 77.2 789.3 79.7 7.8 Latin 9 America 16.7 661.1 74.1 737.7 626.3 North America 997. 648.7 781.4 717.1 616.1 Pacific 16. 1.8 25.3 19. 17.2 8964.8 5814.8 761.7 7175.5 6662.9 million euro million million euro euro million euro 9 45 9 45 45 Chart 2: EU-27 import value of timber by region 28-212 Chart 2: EU-27 import value of timber by region 28-212 28 29 21 211 212 95 Composite panel Joinery Softwood logs Hardwood sawn & mouldings 8 Hardwood logs Plywood & veneer Softwood sawn and mouldings 65 Composite panel Joinery Softwood logs Hardwood sawn & mouldings 5 Hardwood logs Plywood & veneer Softwood sawn and mouldings Pacific North America Latin America Africa Other Asia Europe (Non-EU) China Russia Pacific& CIS North America Latin America Africa Other Asia Europe (Non-EU) China Russia & CIS 45 And quarterly data reveals that the situation was 28 29 21 211 212 deteriorating as the year progressed, with timber product import 28value 29 weakening 21 211 sharply 212 in the Russia & CIS 2241.9 1263.4 1727.9 1868.9 1735. second China half. 1177.4 In fact, 819.2imports 181. 193.5 in the 198.8 October to Europe (Non-EU) 174.5 867.9 99.2 177.2 16.8 Other Asia 1162.3 836.7 926.6 871.5 87.8 December Africa 212 1235. period 77.2 789.3 were 79.7 at their 7.8 lowest level Timber Products by region Latin America 16.7 28 661.1 29 74.1 21 737.7 211 626.3 212 since North Russia America & CIS the third 2241.9 997. quarter 1263.4 648.7 of 1727.9 781.429 1868.9 717.1(Chart 1735. 616.1 3). Pacific 16. 1.8 25.3 19. 17.2 China 1177.4 819.2 181. 193.5 198.8 8964.8 5814.8 761.7 7175.5 6662.9 Europe (Non-EU) 174.5 867.9 99.2 177.2 16.8 Other Asia 1162.3 836.7 926.6 871.5 87.8 Chart 2: EU-27 import value of timber by region 28-212 1235. 77.2 789.3 79.7 Africa 7.8 Latin 9 America 16.7 661.1 74.1 737.7 626.3 North America 997. 648.7 781.4 717.1 616.1 Pacific 16. 1.8 25.3 19. 17.2 8964.8 5814.8 761.7 7175.5 6662.9 million euro million million euro euro million euro 9 9 9 45 9 45 45 45 Chart 2: EU-27 import value of timber by region 28-212 Chart 2: EU-27 import value of timber by region 28-212 Chart 2: EU-27 import value of timber by region 28-212 Chart 2: EU-27 import value of timber by region 28-212 28 29 21 211 212 Pacific North America Latin America Africa Other Asia Europe (Non-EU) China Russia Pacific& CIS North America Latin America Africa Other Asia Europe (Non-EU) China Russia & CIS The downward 28 29trajectory 21 211 aligns 212 closely with overall economic trends. During 212, European construction sector activity fell to new lows, a trend which continued into 213 (Chart 4). Particularly worrying is that the construction decline is Composite panel 21Q2 21Q3 21Q4 211Q1 211Q2 211Q3 211Q4 Joinery212Q1 212Q2 212Q3 now EU-27 nearly 11.65 universal 99.68 99.45 across 97.78 97.35 the 95.59 EU. 94.84 Not Softwood surprisingly, 89.57 logs 87.79 88.58 Germany 99.95 11.94 99.8 1.11 11.28 11.23 12.88 Hardwood 11.6 sawn & 12.6 mouldings 12.97 Hardwood logs this Spain has 16.48 led to 9.78weakening 91.63 83.63 joinery 85.47 84.42manufacturing 8.14 72.31 61.96 6.74 Plywood & veneer France 11.52 99.45 98.97 98.82 97.51 98.11 97.45 87.15 85.97 86.63 Softwood sawn and mouldings Italy 98.49 98.96 11.5 99.43 96.35 91.74 89.97 79.95 78.65 79.16 activity in many EU countries (Chart 5). 21Q2 21Q3 21Q4 211Q1 211Q2 211Q3 211Q4 212Q1 212Q2 212Q3 EU-27 11.65 99.68 99.45 97.78 97.35 95.59 94.84 89.57 87.79 88.58 Germany 99.95 11.94 99.8 1.11 11.28 11.23 12.88 11.6 12.6 12.97 Spain 16.48 9.78 91.63 83.63 85.47 84.42 8.14 72.31 61.96 6.74 France 11.52 99.45 98.97 98.82 97.51 98.11 97.45 87.15 85.97 86.63 Italy 98.49 98.96 11.5 99.43 96.35 91.74 89.97 79.95 78.65 79.16 Chart 5: Eurostat Chart index 5: Eurostat of wood index joinery of wood production joinery production in EU Countries in EU Countries (21 (21 = 1) = 1) 11 11 95 8 65 5 21Q2 21Q3 21Q4 211Q1 21Q2 21Q3 211Q2 21Q4 211Q3 211Q1 211Q4 211Q2 212Q1 211Q3 212Q2 211Q4 212Q3 212Q1 212Q4 212Q2 213Q1 212Q3 212Q4 213Q1 The decline in imports during 212 is also partly explained by exchange rate movements. The value of the euro fell relative to the US dollar and other international currencies during the year (Chart 6). This has hit the competitiveness of imported wood relative to domestic production. Chart 6: US dollar/ Euro exchange rate. Source www.xe.com EU-27 EU-27 Germany Germany Spain Spain France France Italy Italy Closer analysis of trade flow data reveals several other key trends. In 212, EU 27 imports of softwood logs increased by 4.5% to 5.25 million m3. Increasing imports from Norway (+8%) and Ukraine (+1%) offset declining imports from Russia (-26%) and Belarus (-32%). Norway is the EU s biggest external softwood log supplier, shipping 1.88 million m3 in 212. Russia cuts log export tax In 28 Russia exported over 3 million m3 of softwood logs to the EU. Last year the figure was less than 1 million m3. The decline follows imposition of log export taxes from 28. However, following Russia s accession to the World Trade Organisation in 212, these have been substantially reduced from 213 with potential to boost the EU s imports once more. An indicator of the possible consequences of this move came in 212 when Russia axed export tariffs on birch. Consequently its hardwood log exports to the EU jumped 18% to 3.3 million m 3, helping lift EU imports of non-tropical hardwood logs overall 3.8% to 6.2 million m 3. EU imports of hardwood logs from Belarus (again mainly birch) also increased by 1% to 1.6 million m 3, but from Croatia and Ukraine (mainly oak) they fell by 2% and 29% respectively. Construction sector weakness had a particularly dramatic impact on sawn softwood, with EU 27 imports down 8% to 4.7 million m 3 in 212, just below the previous low of 4.72 million m 3 recorded in 29. Imports rose from Belarus (+1% to 517, m 3 ) and Norway (+3% to 417, m 3 ), but this was more than offset by falls from Russia EU construction activity continues to fall Chart 4: Source Eurostat Spring 213. 11