APRIL 2011 A PROFOR WORKING PAPER FOR DISCUSSION Improving Forest Governance in the Mekong Region OPTIONS FOR REGIONAL ACTIVITIES IN SUPPORT OF NATIONAL PROGRAMS - Volume 2: Proposed Activities FOR ACKNOWLEDGMENTS This report was supported by the World Bank and the Program on Forests (PROFOR). Significant inputs were made by preparation teams from Lao People's Democratic Republic, Cambodia, and Vietnam, and respective World Bank country offices. Many individuals provided suggestions and information: James Bampton, Jake Brunner, Kerstin Canby, Tom Clements, Cao Chi Cong, Tim Dawson, Mark Gately, Aimi Lee, Tran Kim Long, Bill Maynard, Richard McNally, Felise Nguyen, Nguyen Khac Coi, Nguyen Ton Quyen, Nguyen Thanh Tung, Nguyen Tuong Van, Nguyen Huu Dung, Thomas Osborn, Khamphout Phandanouvoung, Khamla Phanvilay, Michael Prescott, Sebastian Schrader, Todd Sigaty, Suon Sovann, Phuc Xuan To, Prom Tola, Thalavanh Vongsonephet, Vincent Van den Berk, and Linh Anh Thi Vu, as well as all the participants of the workshops held in Vientiane, Lao PDR, and Hanoi, Vietnam. DISCLAIMER All omissions and inaccuracies in this document are the responsibility of the authors. The views expressed do not necessarily represent those of the institutions involved, nor do they necessarily represent official policies of PROFOR or the World Bank. Suggested citation: Program on Forests (PROFOR). 2011. Improving Forest Governance in the Mekong Region, Volume 2: Proposed Activities. Working Paper. Washington D.C: PROFOR. Published in April 2011 For a full list of publications please contact: Program on Forests (PROFOR) 1818 H Street, NW Washington, DC 20433, USA profor@worldbank.org www.profor.info/knowledge Profor is a multi-donor partnership supported by: Learn more at www.profor.info Improving Forest Governance in the Mekong Region -- Vol. 2 TABLE OF CONTENTS Table of Contents iii List of Acronyms iv 1. Preface 1 2. Proposed regional activities 3 3. Detailed descriptions of proposed activities 12 1. Coonversion timber and issues of land use allocation: relevance for timber legality assurance systems 12 2. Increasing the role of judicial sector and courts in forest governance 14 3. Developing national capacity 18 4. Regionally linked centers of expertise: support for industry and government in meeting market requirements for third-party verification 22 5. Biannual or annual forest governance update meetings 25 6. Regional forest governance peer review program: national experience and lessons learned regarding forest governance 27 7. Transferring REDD+ technology to support forest law enforcement and innovative ICT use 29 8. Forest governance indicators 32 9. FLEG-REDD+ linkages 34 10. Impacts of improved forest governance and market-based requirements for legality 36 11. Understanding underlying drivers of illegal logging and associated trade: analysis leading to national action 39 12. Adoption of public procurement policies by Mekong governments and donors 41 13. Toolkit for community-forest industry partnerships 44 4. Possible medium-term Interventions 46 iii Improving Forest Governance in the Mekong Region - Vol. 2 LIST OF ACRONYMS ARKN-FLEG ASEAN regional knowledge network for forest law enforcement and governance ASEAN Association of Southeast Asian Nations Coc chain of custody CoEs Centers of expertise CPET Central Point of Expertise on Timber Procurement (U.K.) EC European Commission EFI European Forest Institute EIA Environmental Investigation Agency EU European Union FLEG Forest Law Enforcement and Governance FLEGT Forest Law Enforcement and Governance and Trade GFTN Global Forest Trade Network ICT information and communication technology ITTO International Tropical Timber Organization IUCN The World Conservation Union MoF Ministry of Finance MOU memorandum of understanding MRV monitoring, reporting, and verification NGO nongovernmental organization PROFOR Program on Forests RAFT Responsible Asia Forestry and Trade REDD/REDD+ reduced emissions from deforestation and forest degradation SMEs small and medium enterprises TRAFFIC Trade Records Analysis of Flora and Fauna in Commerce VPA Voluntary Partnership Agreement WEN wildlife enforcement network WRI World Resources Institute WWF-GFTN World Wildlife Fund - Global Forest Trade Network Improving Forest Governance in the Mekong Region -- Vol. 2 iv 1. PREFACE Volume 1 of this report identifies and describes key issues and tendencies in forest governance in the Mekong region. In the past few years, there has been a noteworthy pace of change and reform in the region, and countries have taken several steps to improve forest governance and legality. This has often been thanks to increased demand for accountability and transparency that has emerged from within the countries. At the same time, the international environment has changed. Consumer countries are increasingly demanding verification of the legality of timber and wood product exports. The amended Lacey Act of the United States and the European Union (EU) Timber Regulation and Voluntary Partnership Agreements (VPAs) have set new standards for how the international community pays attention to legality issues. Another major trend in global forest policies that has an influence in the Mekong region is climate change and the ongoing negotiations on how to reduce emissions from deforestation and forest degradation (REDD+). As discussed in Volume 1, Mekong countries have several common factors that allow them to share and learn from each others' experiences and successes. Although each country has its own endowment of resources and experiences, studying how things are done in other countries in the region can help tremendously in achieving better forest outcomes. Learning, innovating, and experimenting can be done in all aspects of the forest. This includes the social, economic, and environmental services derived from forests. This volume identifies 13 areas of potential collaboration in the region. All of them aim at improving forest governance and law enforcement and strengthening cohesion in the sector in the region. All of them- - Include regional components that cover issues common to several Mekong countries but that would still support national processes - Utilize existing committees, working groups, forest governance processes, and participants rather than establishing new administrative layers - Increase accountability and transparency in decision making and access to information - Focus on building capacity to manage systems and processes beyond the term of project activities Improving Forest Governance in the Mekong Region - Vol. 2 This is a menu of options for governments, donors, and potentially also civil society organizations. It is not a single program with a single financing source. We hope the various organizations active in the region will pick up from here and implement some or all of the proposed activities. All the proposals can naturally be adjusted to fit the implementing organizations' other activities, available resources and-as time passes-changes in the operating environment. The individual project concepts describe the objective, main approach, and a very tentative budget for the program. Though the overall program aims to address the whole diversity of forestry, each individual proposal is independent and can be implemented irrespective of progress made in others. The first section of the report (Volume 1) provides an overview of governance in the forestry sector and existing initiatives to combat illegal logging and associated trade. This section (Volume 2) outlines recommendations for regional and country-level activities to improve forest governance in the Mekong region. Chapter 2 presents the proposals in a tabular format, while chapter 3 presents each proposal in more detail. Chapter presents potential activities that were considered but ultimately deemed in need of further pre-feasibility assessment. The first section of the report provides an overview on governance in the forest sector and existing initiatives to combat illegal logging and associated trade. The second section outlines recommendations for regional and country-level activities to improve forest governance in the Mekong region. Improving Forest Governance in the Mekong Region -- Vol. 2 2 2. PROPOSED REGIONAL ACTIVITIES TITLE DESCRIPTION NOTES AND REMARKS 1.Conversion timber and issues Land use allocation processes in the Mekong countries may pose the most significant Significant efficiencies can be realized by of land use allocation: relevance challenge to the implementation of timber legality assurance systems and ensuring linking to research and civil society for timber legality assurance equitable benefits to small and large-scale producers alike. Increasingly vocal land use organizations active in the Mekong region. systems conflicts are resulting not just from increasing land allocations for agribusiness, plantations, and infrastructure projects, but also from the underlying long-term problem of unclear or insecure land tenure and systems in most places in the Mekong region. "Conversion timber" is likely the largest source of exported timber in countries like Lao PDR and Cambodia. Although organizations outside the forest sector have been following the situation carefully, none has made the targeted link to timber legality assurance systems. A separate component may be added to link this activity specifically to REDD+ programs that will need to address the same issues. Proposed activities * Analytical work to understand and articulate more clearly the relevance of issues of land tenure and land use conflicts, as well as conversion timber to emerging markets for legal timber * Development of guidelines for verification and chain of custody (CoC) of conversion timber (principles and practical guidelines) 3 Improving Forest Governance in the Mekong Region - Vol. 2 TITLE DESCRIPTION NOTES AND REMARKS 2.Increasing the role of judicial The key legal institutions such as judiciary, prosecutors, and Ministries of Justice are This activity could also be designed as a sector and courts in forest rarely engaged in forest justice, where enforcement and administrative penalties are often preparation study for potential long-term governance: regional stock- handled by the forest authorities. Where formal judicial systems are involved, courts are technical assistance programs, as long- taking review and capacity often backlogged and prosecutions inadequately conducted, resulting in very low term transformation would need to be building conviction rates for environmental crimes. More equitable application of justice is needed implemented at the national scale for to ensure that there is no bias in favor of wealthy and politically well-connected significant funds. perpetrators. Proposed activity Regional stock-taking activity to understand legal systems better, from enforcement through to prosecution and conviction. The result will be to propose reforms on how judges, prosecutors, foresters, local governments, civil society, and lawyers can better work together to handle or assist in the prosecution of forestry cases once forest officers have completed enforcement activities. Improving Forest Governance in the Mekong Region -- Vol. 2 4 TITLE DESCRIPTION NOTES AND REMARKS 3.Developing National Capacity In-depth understanding and experience with FLEG-related market practices lies with a Develops national capacity, decreasing 3.DevelopinnginternationalaNity -Training of trainers: Forest Law severely limited group of individuals within forest ministries, nongovernmental Enforcementorganizations (NGOs), and possibly industry. Most training is run by international NGOs, (FLEG) curriculum for consisting of 'drop-in" expertise, usually in English, and is poorly coordinated. Short- and nmer ls alre d (FLveG)ii currciiulmrfo long-term efforts are needed to deepen the cadres of national experts who can engage torainvatialsnio (heN World Wllf univrsites (racttionrs)on issues of forest governance and REDD+, and implement third-party verification ConservationRUnionsil (IUiN) Worsildif FundversitiesponiprecAstiFonest) -FLEG short courses for programs. professional developmentanTrd(RF)Foetrns,TT) (practitioners advlpimers) Proposed activities that could be readily adapted to university (practitioners and policy makers)settings. -Network FLEG curriculum at national universities: Training of trainers (university professors) conduct case studies for and subsequent development of training modules for two-day, one-week, and Training related to the policy requirements iclsionuc cesuie semester-long courses on FLEG-related market requirements, focusing on the of international market requirements s development of practitioners who readily understand systems of CoC, auditing, (Lacey Act, EU Timber Regulation, etc.) certifications, and the like. may be best left to international consistng of "rop-in expertse, uorganizaEtionsh;anuniverosityoordinted.lShrt-uan FLEG courses for professional development: Short courses for continuing education focuseon hevbasic p ricl o l (one to two weeks long) in coordination with national universities, focusing on (a) withcu o thid-arty vericiplon copy(eg practitioners' courses: elements of third-party verification systems; and (b) policy makers: less technical aspects of verification systems and on linking broader forest Co , auditing, certification programs, and susequen deveopmentof traningcodulesforatw-day,one-wek,nan governance to market requirements. focusin onithe eSupport for small, cross-boundary networks of promising young and national experts from the Mekong region to undertake cross-border case studies for curriculum development. 5 Improving Forest Governance in the Mekong Region - Vol.2 TITLE DESCRIPTION NOTES AND REMARKS 4.Regionally Linked Centers of Most training activities on market requirements for industry in environmentally sensitive Based on Central Point of Expertise on Expertise: Support for Industry in markets are run by international NGOs, consisting of "drop-in" expertise, usually in Timber Procurement (CPET) concept in Meeting FLEG-related Market English, and are poorly coordinated. There is little direct link or analysis of implications for the U.K. Requirements local stakeholders, industry, and governments. Could be one or several centers in Proposed activities Mekong, but all linked to Vietnam (and Regionally linked national FLEG Centers of Expertise will provide greater access to possibly Thailand). information and training. Center staff will also be able to better identify which critical Institutional home must be neutral national stakeholder groups have been ignored to date, such as smaller industrial players far from organization. the big cities. Joint training teams by government, NGOs, industry, and universities or training institutes to serve as focal points for training events run by international organizations. 5.Biannual or Annual Forest Flagship event in the Mekong, similar to the semiannual Chatham House Illegal Logging Rotating hosting, or hosting by Vietnam or Governance Update Conference Update Meetings. Thailand (center of most markets for (Chatham House style) Mekong timber); long-term sustainability needs to be ensured. 6.Regional peer review program: With strongly intertwined timber trade and market interests, Mekong governments will Improved cross-border collegiality, morale regional reviews of national need to collaborate closely to develop a mutual understanding on institutional set-up and boosting. experiences and lessons learned development opportunities. The ASEAN Peer Consultation process has been launched to develop mutual understanding and trust and could be revitalized. Cooditonsud b need to be ensured. Proposed activities * Cross-border demonstration of national programs, followed by "peer reviews" to summarize lessons learned and possible recommendations * Study tours for sharing experiences * Country-specific peer reviews to produce lessons learned and recommendations. Improving Forest Governance in the Mekong Region -- Vol. 2 6 TITLE DESCRIPTION NOTES AND REMARKS 7.Transferring REDD technology Remote and real-time data, much of them likely to be funded under REDD+ programs, Regional REDD+ institution would need to to support law enforcement could be enormously helpful to forest enforcement staff, and ground-truthing abilities of be identified. forest enforcement staff would give feedback to REDD+ programs. REDD+ mechanisms still largely to be Proposed activities developed. This activity would build the skills and institutional incentives necessary to interpret and share data between REDD+ and forest enforcement agencies. It would ensure that REDD-funded monitoring, reporting, and verification (MRV) remote and real-time data are made available to forest law enforcement agencies, and that forest agencies are able to overlay these data on forest areas and concessions, and can provide ground-truthing. Specific activities could include: * Design support to REDD+ MRV to facilitate long-term sharing with forest law enforcement agencies * Training to interpret data either in raw form or after preliminary interpretation by REDD+ MRV activities, including protocols for ground-truthing and feedback of findings back to REDD+ MRV * Facilitation of institutional memorandums of understanding (MOUs) for data sharing * Joint development of information and communication technology (ICT) systems * Possible support for a regional REDD+ institution to work with forest law enforcement personnel at national levels 7 Improving Forest Governance in the Mekong Region - Vol. 2 TITLE DESCRIPTION NOTES AND REMARKS 8.Forest governance indicators Many countries have had activities to improve forest governance. However, there is often Ensure that this is not just a one-off inadequate baseline information, and forest governance reform programs are often interesting report and workshop, but that designed based on visible symptoms rather than underlying causes and drivers of poor adequate follow-up actions are governance. This activity will develop national governance baselines and identify reform implemented. options. Link with other ongoing governance Proposed activities monitoring processes. * Setting governance baselines and regional collaboration on identifying and Ensure that regional value is added. resolving challenges * Preparation of national baseline studies of expert opinions based on existing generic template prepared by the World Bank * Multistakeholder workshop to validate the expert findings; regional study of lessons learned and key ingredients of governance reforms 9.FLEG-REDD+ linkages It is widely acknowledge that forest governance programs are critical to the success of Requires close coordination with FLEGT REDD+ programs, and many governance issues are pertinent for the successful and REDD+ processes. implementation of REDD+ programs. However, how these issues will be addressed, either with or without coordination with forest governance programs, has not yet been fully explored beyond the conceptual level. Proposed activity Background research and policy analysis focusing on how REDD+ and forest governance programs may benefit from each other or exacerbate leakage to unsustainable sources. Specific issues are likely to include crossovers in stakeholder engagement, law enforcement, land tenure, rights access, barriers to both certification and carbon markets, and issues of leakage. Improving Forest Governance in the Mekong Region -- Vol. 2 8 TITLE DESCRIPTION NOTES AND REMARKS 10.Impacts of improved forest Understanding how shifts in the nature of demand for timber affect livelihoods, local Potential duplication with other ongoing governance and market-based economies, and timber markets will be essential to designing and implementing forest programs, although this activity is longer- requirements for legality governance programs. Issues of land tenure and access rights, industry consolidation, term and coordinated across countries. demonstration on and barriers to market entry by small forest producers will all be critical to monitor. * livelihoods and local Proposed activity economies Regional analyses and workshops focusing on * domestic and international * Impact on local livelihoods, local economies, and industry (small, medium, and large timber markets and leakage producers, traders, and manufacturers) from forest governance and market-related requirements * Impacts of timber trade shifts and cross-border leakage 9 Improving Forest Governance in the Mekong Region - Vol. 2 TITLE DESCRIPTION NOTES AND REMARKS 11.Regional studies and The consultation process for this report identified several issues common to virtually all workshops leading to national Mekong countries, but for which actions would need to be undertaken at the national action level. Proposed activities To capitalize on the lessons and experience from neighboring countries, regional studies should be undertaken, reviewed at regional workshops, and, if appropriate, continued at the national level (possibly with technical assistance investment). Potential topics include * Industry overcapacity and its role in unsustainable forest management and regulations of licenses and practices of wood processing facilities * Plantation development in the Mekong region * Definitions of legality: experiences from around the world, including nonforest sectors such as extractive industries (mining, infrastructure), and including references to overregulation and barriers to legality * Community forest management and community forest enterprises: opportunities or barriers to market requirements for legality * Fiscal systems for forest revenue and public expenditure reviews * Free trade zones: scoping study on the issues associated with the zones (legal status, customs procedures, legal requirements relating to enforcement and customs, implementations for chain-of-custody and legality assurance systems), with particular focus on China, Singapore, and Malaysia Improving Forest Governance in the Mekong Region -- Vol. 2 10 TITLE DESCRIPTION NOTES AND REMARKS 12.Adoption of public Advocacy and technical assistance for Mekong countries and main regional consumer See, for example, International Tropical procurement processes by countries for Mekong timber (e.g., Malaysia, Singapore, Indonesia) on green procurement Timber Organization (ITTO) study on government and donors policies, giving preference to or requiring proof of legality of wood products for civil works public procurement policies (2010). and governmental supplies. May require long-term technical Proposed Activities assistance. Analysis of existing public procurement programs, identification of potential leverage Informality of domestic construction and points, and facilitation of dialogue purchasing practices makes action difficult and likely a long-term goal. 13.Toolkit for community-forest The increase in land allocations for plantations in the Mekong (e.g., rubberwood) has industry partnerships been rapid in recent years, with a wide range of community-private industry interactions that mix community and industry provisions of capital, labor, land, and in-kind inputs. The World Bank and PROFOR have documented best practice toolkits highlighting issues such as contracts management and benefits sharing arrangements. Proposed activity Regional overview of best practice, provision and dissemination of toolkits 11 Improving Forest Governance in the Mekong Region - Vol. 2 3. DETAILED DESCRIPTIONS OF PROPOSED ACTIVITIES 1. COONVERSION TIMBER AND ISSUES OF LAND USE ALLOCATION: RELEVANCE FOR TIMBER LEGALITY ASSURANCE SYSTEMS OBJECTIVE Better understand issues related to land tenure and land use allocation process in Mekong countries and their impact on timber legality assurance systems, and market access in Europe and the United States. This will be achieved through: i. Analytical work ii. Principles and guidelines for developing CoC for conversion timber This activity may be expanded to link with REDD+ programs, given the need to address the same land tenure and rights issues before performance-based payments with adequate social safeguards can be made. BACKGROUND Land allocation processes in the Mekong region pose a significant challenge to implementing timber legality assurance systems and ensuring equitable benefits to small- and large-scale producers alike.1 Increasingly vocal conflicts over land often result from inappropriate allocation of land concessions for agribusiness, plantations, and infrastructure. In most cases, they reflect long-term fundamental problems with unclear or insecure land tenure and rights systems. This "conversion timber" is likely to be the largest source of exported timber in countries such as Lao PDR and Cambodia. While NGOs have been following this situation carefully, no specific links have been made to emerging needs for timber legality assurance systems. PROPOSED ACTIVITIES Analytical work and dissemination workshops to understand more clearly and articulate the relevance of issues of land tenure and land use conflicts, as well as conversion timber, to emerging markets for legal timber. 1 The same applies to the challenge these issues pose to REDD+ implementation and performance-based payment schemes. Improving Forest Governance in the Mekong Region -- Vol. 2 12 This activity could be expanded to include case studies of the mutual benefits that REDD+ and FLEGT programs can have in collaboratively addressing issues related to land tenure and land allocation processes. TARGET AUDIENCE AND POTENTIAL PARTNERS - National stakeholders (industry, civil society, government) - Development and donor agencies - EU FLEGT VPA negotiations - REDD+ implementation agencies TIMELINE AND BUDGET Year 1: - Analytical studies - Development of principles and draft guidelines - Workshops Years 2-3: - Analytical studies - Piloting draft guidelines (one country) - Workshops Proposed Budget (US$) Year 1 2 3 4 Analytical work 80,000 80,000 30,000 15,000 Development of principles (incl. workshops) 30,000 20,000 10,000 Development of guidelines 60,000 40,000 30,000 10,000 Pilots 40,000 80,000 80,000 40,000 National expert coordination 20,000 20,000 20,000 20,000 International expert coordination 40,000 40,000 40,000 40,000 270,000 280,000 210,000 210,000 TOTAL 970,000 13 Improving Forest Governance in the Mekong Region - Vol. 2 2. INCREASING THE ROLE OF JUDICIAL SECTOR AND COURTS IN FOREST GOVERNANCE OBJECTIVE Improve the efficiency of forest law enforcement through enhanced participation and capacity of judiciary and prosecutors in forest and other environmental crime cases. This will be achieved through: i. Developing capacity of nonforest sector prosecutors in laws and impacts related to forest and environmental crimes ii. Increasing efficient and effective prosecutions of forest crimes iii. Increasing regional collaboration iv. Increasing checks and balances among forest agencies and the judicial sector BACKGROUND In most countries, forest crimes and penalties are formally included in the national penal code and are administered by the judicial branch. However, often forest ministries and agencies are the main enforcement bodies, and even severe violations are dealt with through administrative means. This happens in the Mekong region, where, despite the inclusion of forest crimes in criminal codes (including the use of penalties and fines), the national justice system or national courts do not enforce them. Forest officials tend to prefer to negotiate administrative fines at the point of the crime, and lack either the capacity or will to file cases within the jurisdiction of another branch of government.2 Where the judicial sector does become engaged in the prosecution of forest crimes, experience from around the world shows that those involved in processing environmental cases need specialist knowledge of the impacts and consequences of the crimes and an in-depth understanding of the laws relating to the environmental sector. As the enforcement agencies in all Mekong countries increase their capacity to detect cases of forest crime and regulatory infringements, there is an equal need for the criminal and civil justice system at provincial and national levels to keep pace, and process and prosecute in a timely manner. This is important both for reasons of fairness to all those involved and to maximize the deterrent value of the process. 2 In one province in a Mekong country, 88 cases of forest and wildlife crime were reported in 2009. Only 2 have been processed to a judicial conclusion through the courts; 34 were dealt with through administrative processes, and 52 remain outstanding. Improving Forest Governance in the Mekong Region -- Vol. 2 14 PROPOSED ACTIVITIES i. National reviews of judicial sector involvement in the prosecution of forest crimes will be prepared to provide input to a regional overview. These reviews will include analysis of the mandates, legal provisions in forest legislation and criminal procedures, capacity, effectiveness (comparing volume and value of fines through administrative resolution of adjudication by the court system), and existing structures and potential for agency collaboration. ii. A regional workshop will focus on sharing experiences from the Mekong region or elsewhere in Asia (e.g., Indonesia, the Philippines). iii. National training and awareness-raising processes and improved institutional procedures will be developed, including- a. Training and awareness raising within the justice sector, including lessons learned from South East Asia on the enforcement of forest crimes and integration of forest legislation and criminal code and procedure (twice over two years) b. Recommendations for systems where assets can be held or sold with the monetary value held in escrow, administration of fines, removal of licenses, etc. c. Improved procedures for identifying "environmental cases" for referring to courts or tribunals, and guidelines for evidence procedures and the forms of civil, criminal, or administrative justice at an appropriate level (e.g., federal, provincial, district) d. Development of curriculum in law schools and judicial training programs on forest crimes iv. Facilitation of dialogue between government agencies, civil society, and donor programs on long-term support to engage the judicial branch in the suppression of forest crimes v. Recommendations for a large-scale three- to four-year technical assistance program 15 Improving Forest Governance in the Mekong Region - Vol. 2 INNOVATION WITH ENVIRONMENTAL COURTS AND TRIBUNALS: EXPERIENCE FROM OTHER COUNTRIES Over the past three decades, judicial institutions in some countries have responded to environmental challenges in innovative ways. More than 350 specialized environmental courts and tribunals have been established in 41 countries. The Green Bench of the Supreme Court of India hears public interest environmental cases filed by citizens. In other countries, governments have set up specialized environmental courts and tribunals. The Land and Environment Court of New South Wales, Australia, is a leading example of a specialized court. The Philippines has set up 117 municipal and regional trial courts designated as environmental courts, and reports suggest that they have been quite successful in addressing the caseload in this specific area. The World Bank Philippines Environment and Natural Resources Sector Adjustment Project (1992) supported numerous training workshops and seminars for judges, prosecutors, forest service employees, civil society, and lawyers who were designated to handle or assist in forest crime cases. The project "resulted in the filing of numerous cases (541 in 1996 alone) against illegal loggers (including powerful local leaders), illegal log transporters and operators of illegal sawmills. More significantly, for the first time in the DENR [Department of Environment and Natural Resources], hundreds of these cases resulted in the conviction of forestry criminals. Memoranda of Agreement (MOAs) were executed between the DENR and other agencies including the Department of Justice, the Supreme Court, the Department of National Defense and the Philippine National Police." Source: Implementation Evaluation Report, World Bank 2000 Full-scale implementation of judicial reform to incorporate environmental crime would need long- term term technical assistance. For example, in the Philippines, a World Bank project (see box) noted that "after the completion of the technical assistance, while the high number of cases filed in the courts has continued, the number of cases resolved and the number of convictions have dropped. Evidently, the presence of a concerned judge, a motivated prosecutor and a supportive Governor in the province are the right ingredients needed for the successful prosecution of forestry cases." This project could be followed by an extensive regional or national capacity- building program(s). TARGET AUDIENCE AND POTENTIAL PARTNERS - Relevant ministries: justice, forestry, environment - Faculties of law - International development partners that have supported judicial reform in the Mekong region - ASEAN wildlife enforcement network (WEN) - United Nations Development Programme (implements projects to strengthen the access to justice of rural communities, many of which are forest dependent, but does not focus on forest crimes or enforcement) - Environmental NGOs (Conservation International, World Conservation Society, and The Nature Conservancy have developed programs, for example in Indonesia, that raise Improving Forest Governance in the Mekong Region -- Vol. 2 16 awareness of forest crimes and build capacity in the judicial sector, leading to an increase in cases adjudicated) - Trade Records Analysis of Flora and Fauna in Commerce (TRAFFIC) (provides support and training in environmental, forest, and wildlife law) TIMELINE AND BUDGET Year 1: - National reviews - Regional overview - Regional workshop and peer reviews - Development of partnerships with law schools - Design of pilot procedures Years 2-3: - National curriculum development - Training programs - Development of expert witness system (including training) - Implementation of pilot procedures - Development of guidelines - Facilitation of intragovernmental collaboration - Recommendations for three- to four-year technical assistance program Proposed Budget (US$) Year 1 2 3 National reviews (one per country) 60,000 Regional overview 15,000 Regional workshops and trainings 40,000 40,000 25,000 National curriculum development 30,000 Design of pilot procedures 25,000 Implementation of pilot procedures 20,000 25,000 Coordination 25,000 25,000 25,000 140,000 140,000 75,000 TOTAL 355,000 17 Improving Forest Governance in the Mekong Region - Vol. 2 3. DEVELOPING NATIONAL CAPACITY OBJECTIVE Deepen the cadres of national experts and practitioners who can engage on policy discussions on forest governance and implementation of forest governance programs; in particular those relevant for third-party verification processes and REDD+. This will be achieved through: i. Developing forest governance curriculum at national universities, training of trainers, and developing of training modules for practitioners ii. Developing forest governance short courses for professional development; short courses for continuing education (one to two weeks long) for practitioners and policy makers iii. Support for forest governance research program at national research institution(s) iv. Support for small cross-boundary networks of promising young national experts to undertake cross-border case studies that both increase understanding of illegal logging and associated trade and contribute to curriculum development BACKGROUND In the global effort to increase capacity for forest governance, it is widely recognized that national actors from both the public and private sectors need to be empowered with the skills and training to engage in informed national and international dialogue and institutional reform processes, as well as be able to respond to shifts in market demands. There is also a need to foster innovative and collaborative coalitions among institutions across Mekong region borders, and have local and regional voices reach out to each other as well as to the international community. However, national universitieS3 are not being utilized to their fullest, despite their role in training the next generation of leaders for government, public sector, and industry through regular degree programs as well as continuing education for government officials through short courses. Many senior faculty members have extensive influence owing to their expansive network of prior students, as well as their perceived unbiased perspectives in their multiple roles as professors, researchers, and experts advising governments and donor programs. Currently, most university forestry programs do not have courses or curriculum on good governance in the forestry sector, although the basic legal framework is often covered. Over the past three decades, there has been increasing recognition that forest management is much broader than growth and yield and species identification; ideas about more holistic management 3 Potential relevant universities include National University of Lao PDR, Hanoi University, Royal Phnom Penh University, and several universities in Bangkok, especially AIT. Improving Forest Governance in the Mekong Region -- Vol. 2 18 about community engagement and sustainability are now common. However, many of the new approaches are very slow to be introduced into curricula and teaching. The majority of employers find that most graduates are very ill equipped for the real-life situations after three or four years of university training. Several international organizations (e.g., IUCN, Forest Trends, Environmental Investigation Agency (EIA), World Resources Institute (WRI), WWF-GFTN, and TRAFFIC) provide outreach or capacity-building exercises related to forest governance and international market requirements, but these are often uncoordinated, one-off events. Training related to policy requirements of international markets (e.g., U.S. Lacey Act and EU Timber Regulation) may be best left to international organizations, which are best able to follow this constantly evolving arena. University curricula, however, would focus on the basic principles of complying with market demand for third-party verification (e.g., CoC, auditing, certification programs, customs administration). PROPOSED ACTIVITIES i. Developing university training course modules, which can be tailored to course type and length, to national and regional contexts, and to particular audiences (e.g., business schools, natural resource management courses). ii. Developing semester-long courses for undergraduate and professional students, focusing on principles and tools related to CoC and forest management auditing, and adapting the training modules previously developed. iii. Developing a series of short continuing education certificate courses on both policy and practitioner issues, working with national universities or training institutions and adapting the training modules previously developed. Practitioners' courses would focus on principles and elements of third-party verification systems, while policy courses would focus on less technical aspects of verification systems and on broader forest governance links to market requirements. iv. Supporting pilot short courses and helping to establish national institutions as centers of expertise and training. To keep up to date with the latest industry and international policy developments, local industry, government, and international organizations would be invited to contribute to curriculum development. v. Supporting a two- to three-year forest governance research program at a national research institution in partnership with an international organization that can help to ensure effective targeting of research and dissemination of findings to international markets and donor actions. vi. Supporting a small, informal cross-boundary network of promising young national experts to undertake cross-border case studies that both increase understanding of illegal logging and associated trade and contribute to curriculum development modules. This informal network 19 Improving Forest Governance in the Mekong Region - Vol. 2 would be coordinated by a research organization that would guide the effective targeting of research and dissemination of findings to international markets and partners. The long-term vision would be to strengthen the voice of these young experts and deepen the cadres of national experts who can engage on issues of forest governance and REDD+. This effort would not duplicate the work of other regional networks already in existence (e.g., Association of Southeast Asian Nations Regional knowledge network for forest law enforcement and governance (ASEAN ARKN-FLEG)), which are more highly formalized. TARGET AUDIENCE AND POTENTIAL PARTNERS - National universities and forestry training institutions - REDD project development agencies and stakeholders - Pan-ASEAN Certification Initiative and national representatives to its Technical Working Group, which may be able to contribute modules on its proposed stepwise approach and principles of transparency, acceptability, equitability, comparability, incentives and disincentives, and public consultation - International organizations with experience in national timber legality assurance systems and existing guidelines and programs, such as TFT [[does this stand for The Forest Trust of Tropical Forest Fund? If the former, please spell out], WWF-GFTN, and consultants. - International organizations engaging in outreach for international market policy developments, such as the European Forestry Institute Forest Law Enforcement and Governance and Trade (FLEGT) Facility, EIA/WRI Forest Legality Alliance, The Nature Conservancy's RAFT program, and Forest Trends. - ITTO - ARKN-FLEG - National and international research institutions TIMELINE AND BUDGET Year 1: - Development of training modules - Review of existing training materials and guidelines - Review of potential for course or module accreditation to develop common standards across the region - Identification of national universities for semester-long courses in two countries - Adoption of training modules in one country (semester courses) - Identification of training institution for short courses in two countries Improving Forest Governance in the Mekong Region -- Vol. 2 20 - Adoption of training modules in two countries (short courses-policy makers and practitioners) - Pilot and revision of short courses - Initiation of cross-border case studies Years 2-3: - Expansion and continuation of year 1 activities in new countries and institutions - Continuation of cross-border case studies; publication and integration into training modules - Year 4 - Revision of training modules as necessary - Implementation of semester-long courses (no longer funded) - Pilot short courses continue (no longer funded) - Revision of short courses as necessary - Implementation of national research programs - Finalization of cross-border case studies; publication and integration into training modules Proposed Budget US$ Year 1 2 3 4 Development of training modules 45,000 20,000 10,000 10,000 Coordination with national universities 25,000 15,000 15,000 15,000 Implementation 10,000 15,000 15,000 15,000 Development of short courses 15,000 15,000 15,000 15,000 Implementation 10,000 15,000 15,000 15,000 Researcher network Annual meetings 25,000 25,000 25,000 25,000 Case studies 60,000 60,000 60,000 30,000 Coordination 25,000 25,000 20,000 20,000 215,000 190,000 175,000 145,000 TOTAL 725,000 21 Improving Forest Governance in the Mekong Region - Vol. 2 4. REGIONALLY LINKED CENTERS OF EXPERTISE: SUPPORT FOR INDUSTRY AND GOVERNMENT IN MEETING MARKET REQUIREMENTS FOR THIRD-PARTY VERIFICATION OBJECTIVE Provide ongoing, high-quality support and information to national constituents in local languages about market requirements for third-party-verified legal timber, and help to identify practical methods to exclude illegal timber from supply chains. This will be achieved through: i. Support for locally based institutions to develop institutional expertise through training and technical assistance ii. Regional hubs in Vietnam, Thailand, and China4 (major manufacturing hubs of the Mekong region), with satellite centers in major supply countries (Laos, Cambodia, Myanmar, etc.) BACKGROUND Developing and implementing methodologies to comply with market demands for third-party- verified forest products must involve both governments and industry. On the industry side, however, companies are hesitant to make commitments to implement supply chain management unless they believe there are cost-effective ways of achieving this in practice. To make progress, it is important to have the following: - Consistent, locally appropriate advice and guidance available to companies so that as each new company begins to engage, support is available - Practical methodologies for implementing controls in practice so that companies that do not have the resources to develop an approach for themselves can adopt existing methods and approaches - Communication up and down the supply chain so that approaches can be developed that can be implemented by all actors, from producer to final consumer. Approaches can be adapted to a variety of organizations: large, small, export-oriented, domestic market oriented, and so on. In particular, inclusion of small and medium enterprises (SMEs) is important and often requires focused support and approaches. From the policy side, an enabling environment that creates incentives and levels the playing field for the legal sourcing of wood products will be critical. Government needs to understand how 4 Regional hubs could be expanded to other Asian countries such as Malaysia and Indonesia. Improving Forest Governance in the Mekong Region -- Vol. 2 22 changes in policy and legislation, support from government departments, or changes to administrative procedures can create such an enabling environment. As progress is achieved, growing technical competence within industry and parallel awareness within government becomes self-perpetuating in the long term. Currently, this type of assistance is being provided in the Mekong region primarily by international NGOs. However, developing national expertise will be the key to long-term objectives. Centers of expertise (CoEs) have already been used with great success in some consuming countries (e.g., the CPET in the U.K.5). By establishing FLEGT Centers of Expertise in both producing and processing countries, supported by partners in consuming countries, better collaboration would be supported. These CoEs would serve as mechanisms to improve mutual understanding of issues, aims, and challenges and support the practical implementation of approaches that work efficiently across the global commodity chain. PROPOSED ACTIVITIES Development of national CoEs would entail- i. Identifying and training relevant organizations and their staff. ii. Developing nationally appropriate materials. iii. Support for two to three years of CoE operation to help establish the CoE niche, which would include technical support to SMEs interested in learning more about verification processes. Support would include operational support as well as technical partnerships with experienced international organizations. iv. Identifying a self-financing model for long-term sustainability (e.g., integration within association or government bodies). TARGET AUDIENCE AND POTENTIAL PARTNERS: - National universities and forestry training institutions that may be able to serve as national centers of expertise - International organizations with experience in national timber legality assurance systems and existing programs, such as The Forest Trust, WWF-GFTN, and consultants - Industry and government beneficiaries 5 The CPET website provides information on the U.K. government's timber procurement policy and advice on how public sector buyers and their suppliers can meet these policy requirements in practice. Background information is available on how these practical solutions were developed, including the types of evidence that demonstrate legality and sustainability and the criteria for evaluating such evidence. CPET also has a help line and provides training. The service is provided by a private company (http://www.cpet.org.uk/). 23 Improving Forest Governance in the Mekong Region - Vol. 2 TIMELINE AND BUDGET Year 1: - Identification of national institutions - Training of national institutions - Development and translation of relevant materials Year 2: - Website and call centers established - Continued development and translation of relevant materials - Partnerships with international organizations with similar programs and objectives - Technical assistance to eligible industry operations Year 3: - Website and call centers in operation - Continued development and translation of relevant materials - Partnerships with international organizations with similar programs and objectives - Technical assistance to eligible industry operations Proposed Budget US$ Year 1 2 3 Per large country Set up and training 120,000 90,000 50,000 Development of materials 50,000 40,000 25,000 Operational support 25,000 25,000 15,000 Travel 2500 2 2500 One large processing country 220,000 180,000 115,000 Replication in a smaller country 154,000 126,000 80,000 Coordination 25,000 25,000 25,000 399,000 331,000 220,500 TOTAL 950,000 Improving Forest Governance in the Mekong Region -- Vol. 2 24 5. BIANNUAL OR ANNUAL FOREST GOVERNANCE UPDATE MEETINGS OBJECTIVE Increased understanding of forest governance issues by sharing lessons learned and information about initiatives undertaken by governments, industry, and civil society on the issue of illegal logging and associated trade. This will be achieved through: Biannual regional meetings, in Chatham House style, on illegal logging and associated trade. The meetings may be hosted by government or an NGO, either on a rotating basis or consistently in one location. BACKGROUND Owing to the increased focus on legality, government agencies and industries need to understand and implement rigorous consumer demand-side measures to eliminate exports and imports of illegal wood products. There are important lessons to be learned from the different government, industry, and NGO approaches around the world. To date, information dissemination by international organizations has been fragmented and inconsistent. The Chatham House Illegal Logging and Stakeholder Update Series has provided a successful model (duplicated in both China and the United States by organizations such as IUCN and Forest Trends), which shows that frequent (e.g., biannual) and well-prepared meetings help to foster a continual path of learning, as well as a community of experts. PROPOSED ACTIVITIES Regularly scheduled meetings focusing on issues relevant to the Mekong region would provide updates on the latest initiatives, regulations, and research in the area of forest governance and trade in illegal timber. Activities would include the following: i. Consultation with (international) partners and others on an institutional home for the meetings (location, hosting arrangements, timing). Options include hosting by research organizations, regional body (ASEAN), international organization or NGO, or government. ii. Biannual development of agenda in consultation with an informal steering committee. iii. Biannual workshop of 50 to 100 people, with 50 percent expected to need financial support to attend. 25 Improving Forest Governance in the Mekong Region - Vol. 2 A possible expansion of this activity could include associated side events that could focus on topics of regional importance, to which relevant experts would be invited, and for which options papers would be developed. TARGET AUDIENCE AND POTENTIAL PARTNERS - All stakeholders: industry, government, civil society - National and international organizations with experience to share - Regional institutions that may be identified as host organizations TIMELINE AND BUDGET Year 1: - Identification of hosting and timing arrangements - First meeting Year 2: - Second and third meetings Year 3: - Fourth and fifth meetings Proposed Budget US$ Year 1 2 3 Per meeting Venue, supplies, etc. 10,000 10,000 10,000 Travel and accommodations 45,000 45,000 45,000 Regional coordinator 25,000 25,000 25,000 International coordinator 15,000 15,000 15,000 2 meetings per year 95,000 95,000 95,000 95,000 95,000 95,000 TOTAL 285,000 Improving Forest Governance in the Mekong Region --Vol. 2 26 6. REGIONAL FOREST GOVERNANCE PEER REVIEW PROGRAM: NATIONAL EXPERIENCE AND LESSONS LEARNED REGARDING FOREST GOVERNANCE OBJECTIVE Increase understanding of mechanisms to improve forest governance issues. This will be achieved through: i. National experts sharing lessons learned with cross-border counterparts ii. Counterpart peer review process and case study development BACKGROUND With strongly intertwined timber trade and market interests and commonalities in trade and development situations, Mekong countries can find mutual benefit in better understanding cross- border issues as well as collaborating closely to develop a mutual understanding on institution setup and developmental opportunities. ASEAN has instituted the ASEAN Peer Consultation process, which yielded high-value results both in terms of content as well as mutual respect and understanding from national participants across borders. After an active start, the process has been inactive in the past few years. This component would revitalize the Peer Consultation process, with a targeted focus on forest governance issues. PROPOSED ACTIVITIES The Regional Forest Governance Peer Review program would entail the following: i. Consultation by participants, regional bodies, and others on an institutional home for the peer review process. Options include hosting by a research organization, regional body (ASEAN), international (NGO), or government-with pros and cons of each option in terms of factors such as local ownership, outreach, and freedom from negative political influences. ii. Annual peer review processes (for three years), each consisting of the following: a. Identification of national representatives from government and civil society b. Identification of topic (varies each year) c. Development of short background papers by representatives of each host d. Development of summary and issues paper 27 Improving Forest Governance in the Mekong Region - Vol. 2 e. Series of peer review group study tours f. Back-to-office reports and peer review analysis A possible expansion of this activity could include regional workshops to discuss findings. TARGET AUDIENCE AND POTENTIAL PARTNERS - All stakeholders: industry, government, civil society - National and international organizations with experience to share - Regional institutions that may be identified as host organizations TIMELINE AND BUDGET Year 1: - Identification of hosting and timing arrangements - First peer review process Years 2-3: - Second and third peer review process Proposed Budget US$ Year 1 2 3 Per meeting Venue, supplies, etc. 10,000 10,000 10,000 Travel and accommodations 45,000 45,000 45,000 Regional coordinator 25,000 25,000 25,000 International coordinator 20,000 20,000 20,000 National counterparts 30,000 30,000 30,000 2 meetings per year 130,000 130,000 130,000 130,000 130,000 130,000 TOTAL 390,000 Improving Forest Governance in the Mekong Region -- Vol. 2 28 7. TRANSFERRING REDD+ TECHNOLOGY TO SUPPORT FOREST LAW ENFORCEMENT AND INNOVATIVE ICT USE OBJECTIVE Identify ways in which technological advances developed to support REDD+ implementation can enhance forest law enforcement. This will be achieved through i. Capacity building, technology adaptation and transfer ii. Establishing information-sharing protocols between REDD+ and law enforcement agencies iii. Pilot ground-truthing of REDD+ generated data (satellite or aerial imagery) to demonstrate the mutual benefit of data sharing between REDD+ MRV and forest law enforcement programs iv. Joint development of ICT applications BACKGROUND It is widely recognized that the success of REDD+ programs will depend on adequate levels of forest governance ("no REDD without FLEG"). Much of the technological support being developed for the implementation of REDD+ involves collecting remote sensing and real-time data that could equally benefit the efforts of law enforcement agencies. Shifting cultivation, illegal logging roads, concession encroachment, and unlawful transportation can all be identified more easily through remote sensing methods than by traditional ground patrols. Both human and financial resources allocated to law enforcement are often inadequate, and therefore targeted patrols based on technical surveillance and intelligence can be a cost-efficient way to operate. Consequently, there is an advantage in implementing ICT and other technological applications from REDD+ MRV in law enforcement and other forest governance processes. The converse also holds true: Ground-truthing by forest enforcement agencies may provide valuable feedback to the REDD+ MRV processes. However, the skills to interpret data and the institutional incentives to share these data between REDD+ and forest enforcement agencies are usually lacking. Ensuring that the results from REDD-funded MRV are made available to forest law enforcement agencies, that forest agencies are able to overlay them with data on forest areas and concession and can provide ground-truthing, will be valuable to all stakeholders. 29 Improving Forest Governance in the Mekong Region - Vol. 2 PROPOSED ACTIVITIES i. Design support for REDD+ MRV programs to identify range of data that would be of use to both REDD+ and forest law enforcement ii. Design information transfer protocols, including protocols for ground-truthing and feedback of findings back to REDD+ MRV iii. Train enforcement agencies training to interpret data either in raw form or after preliminary interpretation by REDD+ MRV processes iv. Develop ICT This activity could be expanded to include support for a regional REDD+ institution responsible for MRV and working with forest law enforcement personnel at national levels. Another direction also needs to be studied: how FLEG technologies could be utilized in REDD+ MRV. TARGET AUDIENCE AND POTENTIAL PARTNERS - REDD+ implementation stakeholders (government agencies, international organizations) - Forest law enforcement agencies - REDD+ platforms (United Nations Collaborative Programme on Reducing Emissions from Deforestation and Forest Degradation in Developing Countries, Forest Carbon Partnership Facility, Forest Investment Program, bilateral programs) TIMELINE AND BUDGET Year 1: Establish a technology transfer mechanism: - Identify REDD technology under development. - Develop review system for assessing applicability of new technology. - Build capacity to analyze data. - Develop system for transferring data between agencies. - Provide support and training in real-time response to remote data. - Develop training in data interpretation at district and local levels. Years 2-3: Support for implementation: - Assess the appropriate level for data interpretation-district, provincial, or national. - Review the impact of availability of real-time information on enforcement agencies. Improving Forest Governance in the Mekong Region -- Vol. 2 30 Proposed Budget US$ Year 1 2 3 Design and feasibility 30,000 30,000 10,000 Travel 15,000 15,000 15,000 National experts 40,000 40,000 40,000 Training 100,000 100,000 100,000 International technical assistance 50,000 50,000 50,000 Publications 15,000 15,000 5,000 250,000 250,000 220,000 TOTAL 720,000 31 Improving Forest Governance in the Mekong Region - Vol. 2 8. FOREST GOVERNANCE INDICATORS OBJECTIVE Develop national governance baselines to better monitor improvements in forest governance. This will be achieved through: i. Preparation of national baseline studies ii. Multistakeholder workshops to validate expert findings iii. Regional study of lessons learned and key factors in successful governance reforms BACKGROUND Many countries have had active programs, donor funded and otherwise, to improve forest governance. Many programs have not yielded significant impact to date, in part because of the need for broader governance reform, but also because often governance reform programs have been designed on the basis of visible symptoms rather than with full knowledge of the underlying causes and drivers of poor governance. PROPOSED ACTIVITIES This activity would develop national governance baselines and identify reform options accordingly. This would entail the following: i. Preparation of national baseline studies based on experts' findings, using existing generic templates prepared by the World Bank (2009) ii. Multistakeholder workshop to validate expert findings and define the governance baseline iii. Regional studies on lessons learned and key factors in successful governance reforms A possible expansion of this activity could include regional workshops to discuss findings. TARGET AUDIENCE AND POTENTIAL PARTNERS: - All stakeholders: industry, government, civil society - National and international organizations with experience to share TIMELINE AND BUDGET Year 1: Improving Forest Governance in the Mekong Region -- Vol. 2 32 - Baseline studies in two countries Year 2: - Multistakeholder workshops in initial two countries - Baseline studies in two additional countries - Country lessons learned Year 3: - Multistakeholder workshops in two additional countries - Country and regional lessons learned - (Regional workshop) Estimated at US$ 100,000 per country, comprising the following inputs: Consultants US$ 20,000 Training US$ 45,000 Meetings and workshops US$ 15,000 Travel and accommodation US$ 10,000 Publications and translations US$ 10,000 33 Improving Forest Governance in the Mekong Region - Vol. 2 9. FLEG-REDD+ LINKAGES OBJECTIVE Develop better understanding of and practical links between FLEG and REDD+. This will be achieved through: Increased understanding and dissemination of common issues to FLEG and REDD+ processes. BACKGROUND It is widely acknowledged that forest governance programs are critical to the success of REDD+ programs, as many of the issues highlighted are just as pertinent for the successful implementation of REDD+ programs. However, how these issues will be addressed, either with or without coordination with forest governance programs, has not yet been fully explored beyond the conceptual level. Given the strong potential overlap between forest governance (particularly FLEGT) and REDD+ programs in terms of the importance of secure land tenure and rights systems for livelihoods, as well as the potential for leakage from industry trade shifts resulting from REDD+ or FLEGT programs, this activity could be expanded to cover relevant areas of FLEGT-REDD convergence. In the past 15 years, the major manufacturing countries of the Mekong region (China, Vietnam, and Thailand) have all implemented domestic forest conservation programs to protect environmental services in their own country. National REDD+ programs could turn out to be similar examples of conservation programs. Research has now demonstrated the "leakage" effect for both China and Vietnam as imports from neighboring countries soared to make up the gap created by the curtailing of domestic timber production. It has been widely recognized that EU FLEGT programs could likewise be sidestepped by leakage effects; cross-border leakage effects are also a large concern of REDD+ programs. A country with both FLEGT and REDD+ could see significant impacts on both domestic and neighboring country industry and livelihoods. PROPOSED ACTIVITIES Background research and policy analysis focusing on how REDD+ and forest governance programs may benefit from each other, or exacerbate leakage to unsustainable sources. Specific issues are likely to include crossovers in stakeholder engagement, law enforcement, land tenure, rights access, barriers to both certification and carbon markets, and issues of leakage. Improving Forest Governance in the Mekong Region -- Vol. 2 34 TARGET AUDIENCE AND POTENTIAL PARTNERS - National stakeholders (industry, civil society, government) - Development and donor agencies - European Commission (EC) FLEGT VPA negotiations - REDD+ implementation agencies TIMELINE AND BUDGET Year 1: - Three focus groups (e.g., conversion timber, legality definitions, etc.) established and made operational - Two to three policy briefs in two countries - One workshop Years 2-3: - Continued focus groups and policy briefs - Workshop - Synthesis report Proposed Budget US$ Year 1 2 3 Policy briefs 50,000 50,000 50,000 National experts 40,000 40,000 40,000 International experts 40,000 40,000 40,000 Workshops 40,000 40,000 40,000 170,000 170,000 170,000 TOTAL 510,000 35 Improving Forest Governance in the Mekong Region - Vol. 2 10. IMPACTS OF IMPROVED FOREST GOVERNANCE AND MARKET- BASED REQUIREMENTS FOR LEGALITY OBJECTIVE Develop basic understanding of potential impacts of wide-scale implementation of programs to ensure legality throughout timber supply chains for export and domestic markets. THIS WILL BE ACHIEVED THROUGH i. Social and livelihood impact assessments (ex-ante) ii. Market and trade impact assessments (ex-ante, including likely leakage issues) iii. Development of recommendations to minimize possible negative socioeconomic or environmental impacts BACKGROUND Wide-scale implementation of timber legality assurance systems, both for export and domestic markets, will impact industry and livelihoods; whether these will be positive or negative impacts depends on the extent to which they were dependent on the status quo. Enterprises exporting timber to the United States or Europe will need to implement timber legality assurance systems or shift to other markets. Industries, households, and communities that relied on the benefits from illegal timber may see incomes decline. SMEs may find legality verification processes a barrier to entry to major markets. On the positive side, industries that are able to comply with new market requirements may see market niche increase; communities that have been hurt by poor rule of law in forest areas may benefit from more clearly defined laws and regulations, particularly those relating to land tenure and rights access. In the past 15 years, the major manufacturing countries of the Mekong region (China, Vietnam, and Thailand) have all implemented domestic forest conservation programs to protect environmental services in their own country. National REDD+ programs could turn out to be similar examples of conservation programs. Research has now demonstrated the "leakage" effect for both China and Vietnam as imports from neighboring countries soared to make up the gap created by the curtailing of domestic timber production. It has been widely recognized that EU FLEGT programs could likewise be sidestepped by leakage effects; cross-border leakage effects are also a large concern of REDD+ programs. FLEGT VPA programs have paid significant attention to monitoring the impacts of the VPA processes. However, much attention has been paid to monitoring of auditing and verification processes, and less to the broader governance issues and their socioeconomic and environmental impacts, which admittedly are broader and harder to monitor. Improving Forest Governance in the Mekong Region -- Vol. 2 36 PROPOSED ACTIVITIES i. Regional analyses and workshops would cover issues such as impacts on- ii. Local livelihoods and economies iii. Local industry iv. Market and trade patterns v. Harvesting patterns TARGET AUDIENCE AND POTENTIAL PARTNERS - National stakeholders (industry, civil society, government) - Development and donor agencies - EC FLEGT VPA negotiations TIMELINE AND BUDGET Year 1: - Compilation of data (livelihood, harvesting, trade) in two countries - Workshops to validate data - Two to three studies in two countries Year 2: - Compilation of data (livelihood, harvesting, trade) in two countries - Workshops to validate data - Two to three studies in two countries Year 3: - Synthesis report 37 Improving Forest Governance in the Mekong Region - Vol. 2 Proposed Budget US$ Year 1 2 3 Research 70,000 70,000 40,000 National experts 50,000 50,000 50,000 International experts 50,000 50,000 50,000 Workshops 40,000 40,000 40,000 Publications and translations 40,000 40,000 40,000 250,000 250,000 180,000 TOTAL 680,000 Improving Forest Governance in the Mekong Region -- Vol. 2 38 11. UNDERSTANDING UNDERLYING DRIVERS OF ILLEGAL LOGGING AND ASSOCIATED TRADE: ANALYSIS LEADING TO NATIONAL ACTION OBJECTIVE Greater understanding of the dynamics of drivers of illegal logging and associated trade, with subsequent national action. This will be achieved through: i. Analytical work at regional and national levels ii. National and regional workshops BACKGROUND The main report (Volume 1) identified numerous issues common to virtually all Mekong countries, but for which actions would need to be undertaken at the national level. To capitalize on the experience from neighboring countries, however, regional studies should be undertaken, reviewed at national workshops, and, if appropriate, continued at the national level with either additional analytical work and workshops or full-scale technical assistance. PROPOSED ACTIVITIES Suggested analytical work includes the following: i. Extent and nature of plantation development in the Mekong region a. Trends b. Socioeconomic implications c. Environmental implications ii. Industry overcapacity and its role in unsustainable forest management, regulations of licenses, and practices of wood processing facilities a. Strategies to reduce overcapacity (e.g., lessons learned from fishing industry decommissioning through quotas, licensing and incentives, minimum compliance standards, industrial zones) b. Specific recommendations for small-scale operations c. National recommendations - Identifying overcapacity - Socioeconomic impacts of decommissioning 39 Improving Forest Governance in the Mekong Region - Vol. 2 - Development of criteria, protocols, and verification procedures for decommissioning and sanctions - Compensation and incentive packages iii. Definitions of legality: experiences from around the world, but reaching beyond just the forest sector, to include, for example, extracting industries (mining, infrastructure) and including references to overregulation and barriers to legality iv. Community forest management and forest enterprises: opportunities or barriers to market due to requirements for legal verification v. Fiscal systems for forest revenue vi. Free trade zones, with particular focus on China, Singapore, and Malaysia (major export points for Mekong countries): scoping study on issues association with these zones (legal status, customs procedures, legal requirements relating to enforcement and customs, implications for CoC or timber legality assurance systems). TARGET AUDIENCE AND POTENTIAL PARTNERS - National stakeholders (industry, civil society, government) - Research organizations TIMELINE AND BUDGET Years 1-3: - Analytical studies - Workshops Proposed Budget US$ Year 1 2 3 Per country average analytical work cost 55,000 55,000 55,000 regional synthesis 20,000 20,000 20,000 average workshop cost 30,000 30,000 30,000 coordination 0 N0 000 115,000 115,000 115,000 2 countries per year 230,000 230,000 230,000 TOTAL 690,000 Improving Forest Governance in the Mekong Region -- Vol. 2 40 12. ADOPTION OF PUBLIC PROCUREMENT POLICIES BY MEKONG GOVERNMENTS AND DONORS OBJECTIVE Governmental purchasing policies give preference to, or require, verification of legality. This will be achieved through: i. Analytical work ii. Advocacy BACKGROUND In most countries, government agencies are major consumers of wood products for construction, paper, furniture, and other items. Although "green" procurement policies have been applied in many countries for years, timber procurement policies are new instruments to promote sustainable consumption and production of wood products. As of 2008, only a handful of countries had enacted procurement policies regarding the trade of wood products (including Belgium, Denmark, France, Japan, Netherlands, New Zealand, Norway, and U.K.). If several countries in Asia adopt advanced procurement policies, it may increase demand for verified timber in regional markets. Since most green procurement policies require a verification system, there may be overlap with activities to support forest certification and CoC systems. The EU-European Forest Institute (EFI) Asia FLEGT Project has included in its work plan the potential to organize an experts' meeting on green procurement opportunities within Asia. The ITTO Thematic Program on FLEGT also plans to develop procurement policies and other tools for market promotion through a participatory and transparent process; however, these activities will not be funded in Lao PDR or Vietnam, which are not ITTO members. The Institute for Global Environmental Strategies and the Asia Forest Partnership are planning research on the impact of Japan's procurement policy in the Asia Pacific Region. PROPOSED ACTIVITIES Green procurement policies would need to be developed by the individual governments through a multiagency dialogue among, for example, the Ministry of Environment, Ministry of Interior, Ministry of Finance, and Ministry of Agriculture. The policy would need to be adopted by the prime minister or Council of Ministers to be effective nationally and required for each agency to implement. Implementation would also lead to building new cross-sectoral alliances. One 41 Improving Forest Governance in the Mekong Region - Vol. 2 obvious partner to implement the policy would be the Ministry of Education, owing to the potential use of wood for school buildings, and the Ministries of Commerce, Finance, Public Works, and Local Development, since they administer the use of public funds. Specific activities could include the following: i. Development of national timber legality standards (in countries where FLEGT VPA processes are not already doing so) ii. Review of literature and procurement policies iii. Discussion with other projects and donors in the region iv. Regional workshop and national meetings to further discussion and raise awareness v. Potential study tour or training vi. Conducting a feasibility study and developing a pilot program TARGET AUDIENCE AND POTENTIAL PARTNERS - Ministries of Environment, Interior, Public Works, Education, and Finance, as well as Council of Ministers, Prime Minister's Office, and similar agencies - The Food and Agriculture Organization and ITTO, which have been engaged in analysis of procurement policies and could partner for technical assistance, materials, and workshops or training - Partners from national verification systems (e.g., Forest Stewardship Council, Smartwood Verification of Legality, Programme for the Endorsement of Forest Certification) TIMELINE AND BUDGET Years 1-2: - Feasibility studies - Development of national timber legality standard - Analysis of existing procurement policies - Studies on lessons learned from other countries Year 3: - Dissemination Improving Forest Governance in the Mekong Region -- Vol. 2 42 Proposed Budget US$ Year 1 2 3 National analyses (3 countries) 55,000 Regional synthesis 20,000 Dissemination 35,000 45,000 45,000 110,000 45,000 45,000 TOTAL 200,000 43 Improving Forest Governance in the Mekong Region - Vol. 2 13. TOOLKIT FOR COMMUNITY-FOREST INDUSTRY PARTNERSHIPS OBJECTIVE Community groups are better able to enter into fair and equitable partnerships with industry. This will be achieved through: i. Regional overview of best practices ii. Development of toolkits iii. Dissemination and training BACKGROUND The increase in land allocations for plantations in the Mekong region has been astounding in recent years, with a wide range of community-industry interactions that mix community and industry provisions of capital, labor, land, and in-kind inputs. PROFOR has documented best practice toolkits that highlight contracts management, benefits sharing, and other issues pertinent for communities. These models could be piloted and used at the country level. Simultaneous innovation in several Mekong countries would allow for sharing of cross-country experiences. PROPOSED ACTIVITIES Suggested analytical work includes the following: - Regional overview of best practices - Development of toolkit - Training of communities TARGET AUDIENCE AND POTENTIAL PARTNERS - National stakeholders (local communities, industry, government) - Best practice multinational firms operating in the Mekong region - Research organizations - Community trainers Improving Forest Governance in the Mekong Region -- Vol. 2 44 TIMELINE AND BUDGET Year 1: - Regional overview of community-industry partnerships - Development of localized toolkit (e.g., based on PROFOR products) Year 2: - Review of toolkit with industry leaders - Community training Estimated at US$ 100,000 per country, comprising the following inputs: Consultants 20,000 Training 45,000 Meetings and workshops 15,000 Travel and accommodation 10,000 Publications and translations 10,000 Total 100,000 45 Improving Forest Governance in the Mekong Region - Vol. 2 4. POSSIBLE MEDIUM-TERM INTERVENTIONS The project concepts in this Chapter were proposed in the consultative process. However, they usually depend on outcome of on-going processes and are feasible only in medium and long-term programs. Some may require also long-term financing and technical assistance. Title Description Notes, issues to be resolved B 1. Regional mechanism to monitor forest The quality and access to forest and trade related data in * Institutional incentives and quality of data need to be ensured sector data and timber trade the Mekong is poor. Improved access is necessary. * Needs clear institutional home Proposed activity would consist of regional mechanism * Difficulty in obtaining this data. This has been demonstrated e.g. with for publicly available data on timber companies, harvest, the East Asia FLEG Clearing-House Mechanism and ITTO efforts to sales, trade and crime; helping to improve transparency in governance and improve dialogue; improve monitoring improve trade data reporting. of timber flow data and availability of information by communities, the private and the public sector B 2. Rapid response mechanism (forest Small, just-in-time flexible funding to allow forest law * Governance and financial management of small-grants facility difficult. governance policy innovation enforcement agencies to take advantage of opportunities facilitation grants) as they present themselves: workshops, training sessions, small-scale information dissemination, field visits, project proposal development, publications for the office, printing, consultations, etc. B 3. Support for modern criminology Workshops, consultant reports, training and capacity * This would likely need to be in the form of long-term technical practice building assistance which should be conducted at the national level B 4. Regional timber trade analysis Studies * Likely component of EFI Monitoring & Evaluation process (after initial scoping studies) B 5. Development of regional Regional center for identifying trends and hotspots in * Creation of new institution with long-term operational costs can be environmental crime center environmental crime; facilitating communication between considered only after national capacity building national agencies; common analysis and systems for at in a en ies dat mtns anas* Important links with Interpol or International Consortium to Combat training and data transfers. Wllf rm Wildlife Crime Improving Forest Governance in the Mekong Region -- Vol. 2 46 Title Description Notes, issues to be resolved B 6. Defining legality: regional processes Regional process including: regional advisory group; * Possible duplication with EFI FLEGT facility and EU's VPA processes and national drafting teams technical advisor(s); national drafting teams; legal .* Possibility to use other expertise to learn from other sectors (e.g. assessments; exchanges with Malaysia or Indonesia; training; compilations of international experience and international requirements. B 7. Improve Vietnam chain-of-custody Working with government on Chain-of-custody (CoC) * Lessons learned from Liberia include that this is a multiple year, and certification to improve regional systems, and companies to increase supply and CoC of several million USD project. sourcing and supply chain verified legal and certified wood products managment* Potential for REDO or VPA-related investments management B 8. Development of partnerships between Development of partnerships between government, * Multi-stakeholder approaches is a model to be incorporated into all government, industry and civil society industry and civil society to improve enforcement possible activities at national or regional levels (e.g. Philippines to promote forest law enforcement (patrolling and monitoring of sites, joint training Environment and Natural Resources Sector Adjustment Project) opportunities). Models such as WWF or WCS in pp tunitrl i ). an d ee ct a* Specific partnership would likely be a national activity with little value- added from regional approaches. * Possible broadening of monitoring to be conducted by VPA protocol Improving Forest Governance in the Mekong Region -- Vol. 2 47