Supporting Sustainable Tropical Timber Trade: Takeaways from FSC Amazon Business Encounter 2024

By Gao Ya and Skirmantė Tumosaitė

The Amazon forests are home to about 10% of the world’s terrestrial biodiversity and store an equivalent of 15–20 years of global CO2 emissions in its vegetation. Nearly 60% of the Amazon rainforest is in Brazil, the world’s second-largest exporter of tropical logs and the third-largest exporter of tropical-sawn wood. Europe is a key export market for these products.

According to a study by the Probos Foundation, if Europe had sourced 100% verified sustainable tropical timber products in 2020, it would have positively impacted over 16 million hectares of semi-natural and natural tropical forests. However, only 31–36% of Europe's tropical timber imports in 2021 came from verified sustainably managed forests.

How does sustainable tropical timber trade help to protect the Amazon forests?

A vast forest area in Brazil needs protection from illegal logging, poaching, and land conversion. Local governments, NGOs, and forest management organizations are making great efforts to enforce environmental laws, empower Indigenous Peoples, and ensure safe working conditions. Sustainable trade with the EU and the demand for FSC-certified products support these efforts.

As of July 2024, 9.53 million hectares of natural and planted forests in Brazil had been certified by FSC. These well-managed forests can maintain a sustainable economic value, which protects them from being converted for short-term profits. Timber harvesting done right can sustain the local economy and have minimal impact on the forest ecosystem.

How can we support sustainable tropical timber trade between Brazil and the EU?

This question was at the heart of the FSC Amazon Business Encounter 2024, organized by FSC and held in Belém (Pará), Brazil, on 31 October 2024. The 4th edition of this series of events brought together 110 forest managers, sawmills, traders, importers, manufacturers, and other stakeholders engaged in the sustainable management of the Amazon forests and Amazonian tropical timber value chain. The Business Encounter provided an opportunity to discuss current global tropical timber supply chain challenges while building and maintaining relationships between suppliers and buyers. Here are our key takeaways from the event.

Need for closer ties between producers and traders

22 tropical timber importers and traders, 21 sawmills, and 12 forest management units from the Brazilian Amazonian region benefited from business matchmaking discussions, facilitated by FSC Brazil.

“We consider the event a success and are extremely pleased to have provided a business environment that values the production of tropical wood from Brazil,” said Elson Fernandes de Lima, Executive Director of FSC Brasil. “In addition to business matchmaking, we brought relevant topics for the European market and forest management to the table. This fosters closer ties between producers and traders, strengthening trade between Brazil and Europe,” added Lima.

Expected impacts of CITES rules on tree species ipê and cumaru

New CITES rules for ipê and cumaru tree species will come into effect on 25 November 2024 and generate greater demand for analysis, inspection, and monitoring to export the species. Deryck Martins, President of the Association of Wood Exporting Industries of the State of Pará (AIMEX), said:

“History shows that the inclusion of a wood species in the CITES Annex II can lead to its exclusion from the international market due to increased transaction costs and its association with biodiversity loss. The best way forward would be to improve forest control, monitoring, and inspection, rather than banning species from the market, which would harm forestry enterprises that operate in compliance with the rules and standards of a sector that has been increasingly evolving in search for ecological sustainability.“

Need for cooperation and clear communication

The panel of industry experts from Algimi Florestal, GWW Houtimport, Imaflora, and Madeflona identified the best measures to support sustainable tropical timber trade:

• Timely and strong cooperation within the global tropical timber industry to reverse the trend of tropical timber exclusion from markets.

• Clear communication about sustainable tropical forest management contributions to global environmental and social agendas.

Companies need support to comply with the EU Deforestation Regulation (EUDR)

Dr Joanna Nowakowska, System Performance Director at FSC International, acknowledged the major challenges facing those affected by EUDR and introduced a way forward: FSC Aligned Certification for EUDR. Comprised of the FSC Regulatory Module and the newly revised FSC Risk Assessment Framework, FSC Aligned Certification for EUDR provides companies with the tools, solutions, and guidance needed to comply with the EUDR.

At FSC, we recognize the value of natural tropical forests and have a clear target to increase the uptake of FSC certification in tropical forest regions. For more information about the FSC Amazon Business Encounter 2024, contact Tijmen Hennekes (FSC Nederland) at [email protected] or Elson Fernandes de Lima (FSC Brasil) at [email protected].

For more information about FSC’s work on natural tropical forests, please contact Bruno Rath (FSC Latinoamérica) at [email protected], Daniela Teixeira Vilela (FSC International) at [email protected], Wyke Smit (FSC Nederland) at [email protected].