Forests and Globalization

Challenges and Opportunities for Sustainable Development

William Nikolakis, John Innes

• Publisher: Routledge
• Year: 2014
• ISBN:
  9781317660729
• Edition: 1
• Topic: Technology & Engineering
• Subtopic: Forestry
• Index: Technology & Engineering

The overarching contribution of this book is a review and assessment of the current and future impacts of globalization on the world's forests. The work has been developed by the "Resources for the Future" Task Force for the International Union of Forest Research Organizations (IUFRO).

Four key themes are addressed: the effect of globalization on forests (including future trade flows); plantations as the primary source of forest products and its consequences, including plant breeding and forest health; the effect of new products such as bio-products and markets on forests; and the emergence of forest ecosystem services and their impact on the landscape and human communities. These four themes are examined in detail to map out the impacts of these trends for forests throughout the world and at multiple scales, and how forest research needs to be adapted to address these trends. Overall, the volume provides a major synthesis of current thinking and knowledge on the topic for advanced students, as well as policy-makers and professionals in the forest sector.

1 Resources for the future

John Innes and William Nikolakis

 

 

 

In 2010, the International Union of Forest Research Organizations published its strategy for the period 2010–2014. It identified a number of areas where research was needed, including one called “Resources for the Future.” The Strategy identified that sustainable management and protection of forests (including forest landscape degradation and restoration) will remain the dominant theme for the forest research community in the future at the global, regional, national and local levels. It argued that understanding the role of insects and pathogens would be important, particularly as they related to global change. The Strategy went on to explain that innovation in the field of forest products, goods and services together with sustainable and responsible operations would play an important role in determining future management options. The development of new processing techniques and environmentally, socially and politically acceptable products were identified in the Strategy as having key importance for the future. At the same time, it argued that benefits and values of non-wood forest products to large portions of the world’s population would need to be accepted, realized, and properly accounted for. This implied that changes in governance and the understanding of governance structures against different socio-cultural conditions would play an important role for the sustainable management of the world’s forests.

The Strategy set out a number of areas for special emphasis, including trends in demand for innovative forest products, ecosystem goods and services and conflicting needs, management options (including conservation, avoided degradation, restoration concepts), and globalization and changes in governing systems. To encourage progress in these areas, IUFRO established a Task Force on “Resources for the Future,” which it intended would bring together a diverse range of scientists from within its nine Divisions. The Task Force did more than that, drawing in policy makers, decision makers, end users and a range of other stakeholders who all held a common interest in the future of resources derived from the world’s forests. Many of the contributions from these individuals were brought together in a conference held at the University of British Columbia in Vancouver, Canada, August 2013. This book represents the outcome of this conference, supplemented by a number of additions from individuals who were unable to get to the conference.

Globalization

The first major theme covers the impacts of globalization on the forest sector. The forest sector is changing rapidly, and evidence of this change occurs at many scales. Cohen in Chapter 2 examines these changes in detail, starting with an analysis of the drivers affecting the demand for forest products. Many of these changes are arising from the increasing recognition that the world needs to move towards a more sustainable Green Economy (also often termed the bio-economy). He considers that the four most important drivers affecting forests and necessitating a shift towards a Green Economy are: population growth, a geographic shift in economic power and growth of the middle class, growing resource demand, scarcity and commodity prices, and the environmental degradation that is accompanying the growing demand for resources.

Roberts and Nikolakis in Chapter 3 continue this theme, examining how far companies have transformed towards the Green Economy. Much of this is revolving around a suite of new bioproducts that are being developed in response to the need to switch from unsustainable products derived from fossil fuels to a range of more sustainable products derived from forests. Such a change has the possibility of reinvigorating the forest sector, particularly in Europe and North America, but the changes have been slow in materializing. It seems likely that such changes will only occur through government incentives, as witnessed by the major changes that have occurred in Europe in response to requirements for power utilities to increase their use of sustainable sources of energy. The authors conclude with policy considerations to consider in support of further bio-energy investments.

Liebhold and Wingfield in Chapter 4 describe that rapid globalization has broken down the geographical barriers that once protected forests. Today, forests are exposed to a range of disturbances, pathogens and invasives, often transferred from wood products. The authors contend that in developing trade agreements policy makers need to consider phytosanitary regulations to limit insect and disease movement in the future, with the ambition to protect both native and plantation forests.

Governance

Good governance at all scales will be an essential component of the future forest sector. Governance takes many forms, and is so complex that IUFRO has devoted a Task Force to looking at this single issue (the IUFRO Task Force on International Forest Governance). Attempts to develop a global convention on forests have been unsuccessful, but forests are covered in many existing international conventions, such as the World Heritage Convention and the Convention on Biological Diversity. Most countries have enacted detailed forest legislation governing the use and protection of their forest resources, but in some countries, corruption and lack of enforcement are severely limiting the value of such laws.

Brack in Chapter 5 examines these issues in relation to illegal logging. This is primarily a domestic issue, since the basic issue is one of illegality in a particular country. However, there is also a globally significant trade in illegal logs, and Brack also summarizes this problem, pointing out that until quite recently, it was not unlawful for consumer countries to import illegally logged wood. This has changed with new legislation in countries such as the USA, Australia and in the European Union. Tools such as certification have been encouraged, but the uptake of certification has been very low in tropical countries. Procurement policies within countries and by major consumers (see Chapter 7 by Hildeman and Carlsson) is having an effect, but will not help prevent the illegal logging of timber for domestic consumption.

At a local level, Corriveau-Bourque et al. in Chapter 8 have examined the implications of changing policies associated with forest tenures. This is particularly important if more products are to be derived from forests in the future. There are fundamental questions being posed over ownership of forests – such questions occur not only in tropical countries, but also in countries such as Canada where Aboriginal peoples are questioning why they do not have full rights and title over their ancestral and traditional territories. International agreements such as the United Nations Declaration on the Rights of Indigenous People, the mainstreaming of Free, Prior, and Informed Consent (FPIC), and the development and adoption of the Voluntary Guidelines on the Responsible Governance of Tenure have all helped set the stage for changes in tenure arrangements for forests.

Such changes are not only regulatory, there is increasing pressure on the private sector to adopt socially just and environmentally beneficial practices (see Lister and Dauvergne Chapter 6). Major companies are increasingly concerned about corporate social responsibility (CSR); in fact it has become a standard in day to day practice and in reporting. Tools such as certification help this, but it extends beyond certification, especially in countries where forestry regulations are limited or not enforced. Many such companies are adopting a zero net deforestation policy in an attempt to minimize their global footprint on forests, although it is still too early to say whether these policies are going to be effective.

An example of how a major consumer of forest products is adapting to these changes is provided by Hildeman and Carlsson in Chapter 7. IKEA is one of the world’s biggest furniture retailers, and consumes 15 million m³ annually. It has not specified that it will require particular types of wood. Rather, it has specified what it will not accept in its timber supply. For example, wood must not be sourced from forestry operations engaged in forest-related social conflicts or be harvested from Intact Natural Forests (INF) or other geographically identified High Conservation Value Forests (HCVF), unless they are certified as responsibly managed. Wood must not be harvested from natural forests in the tropical and sub-tropical regions being converted to plantations or non-forest use, nor can it come from officially recognized and geographically identified commercial Genetically Modified (GM) tree plantations.

Wood supply

It is evident that the sources of fiber will change in coming years, particularly given the increasing rate of global fiber consumption. The proportion of fiber derived from plantations has been steadily increasing and with massive new investments in plantations in countries such as China, this trend is set to continue. However de Fégely in Chapter 9 argues that there are a number of important considerations associated with future investments in forest plantations. These include a progressive reduction in the land area available for plantations, changes in government policies towards plantations, and growing concerns about their environmental impacts. Attracting new investors will require marketing more than wood as a return. Carbon credits, biodiversity credits and other ecosystem service payments will make investment more attractive, but this will also require changes in the way that plantations are established and managed.

Such changes are on the way. Neves Silva in Chapter 10 argues that plantations have a critical role to play in the future Green Economy, and that if managed well, they can make a major contribution to the conservation of biodiversity. The New Generation Plantations concept being promoted by WWF illustrates this change in thinking. It is based on the principles of sustainable forest management: environmentally sound, socially responsible and economically viable.

The potential for biotechnology to deliver step changes in yield is discussed by May and Hirsch in Chapter 11. While advances in biotechnology mean plantations can generate more fiber using less inputs, there is the need to obtain social license before such advances are widely adopted in practice.

Nabuurs et al. in Chapter 12, argue that many different factors are at play in Europe, and all have potential ramifications for timber supply. Attempts are being made to make plantations more environmentally friendly, but the trade-off is reduced timber productivity. This reduction is not being offset by payments for environmental services associated with the changes in silvicultural practices. The bio-economy in Europe is currently hotly debated, as is the potential of European forests to provide bio-energy. Bio-energy demands in particular may result in a fiber deficit, necessitating the import of wood products from outside Europe.

Trends in non-conventional forest products

Many jurisdictions have been strongly advocating the increased use of forest products. Forest products are renewable, and are therefore a more sustainable option to many competing products, especially those derived from fossil fuels. There are several approaches to this, including the promotion of more wood in buildings, and the development of new materials based on wood and its components.

Hoogendoorn and Benton in Chapter 13 show that globalization has always affected rattan and bamboo products. Rattan in particular was developed on the basis of a global trade in the product, and in recent years, bamboo products have penetrated many markets that previously were exclusively wood-based. Bamboo has many advantages, not least of which is its rapid growth. It has proven to be very adaptable, and engineered bamboo products are now widely available.

Ecosystem services

The provision of ecosystem services by forests is dependent on the continued existence of forests that can meet the needs of human wellbeing. Forests are under threat because of continued conversion to other forms of land use, particularly in the tropics. They are also under threat from pests and diseases, the incidence and severity of which may change as a result of both globalization and climate change.

Brand and Singh in Chapter 14 discuss the development of markets for ecosystem services. For many years, there has been a lot of talk about payments for ecosystem services (PES), but relatively little action. However, in a number of places around the world, valid schemes have been developed, resulting in better valuation of standing forests. Brand and Singh argue that ultimately, there is a need for both conservation and production functions of forests to be accorded appropriate value. They suggest that the correct allocation of property rights, price signals and regulatory instruments should result in the redirection of capital flows into more sustainable investment strategies.

Wunder et al. in Chapter 15 focus on important design principles to support the effectiveness of PES. Drawing on practical experience in developing PES, the authors consider how the socio-economic impacts of PES can be addressed through careful design with particular focus on conditionality.

Conclusions

The forest sector is currently undergoing a major transformation. Both areas of production and markets are changing rapidly, as is the nature of the goods and services provided by forests. These changes will provide both challenges and opportunities. The array of stakeholders in the forest sector is evolving, and new partnerships are being developed, such as those between pulp mills and chemical companies or between conservation organizations and forest plantation managers. These changes have implications for forest research, which is increasingly being conducted by non-traditional forest research organizations. As is happening in the industrial sector, forest researchers may have to seek out new partners who can help them develop research in these new areas of endeavor.

2 Forces shaping the globe’s forests and forest use

David Cohen

Introduction

There are new forces buffeting businesses, including the forest sector, worldwide. A fundamental structural shift is underway, towards a global business model where long-term firm profit is predicated on operations that improve global sustainability. Businesses that provide solutions to environmental and social problems will have a competitive advantage in the marketplace. This concept (named shared value by some) is gaining acceptance in both the academic literature (e.g. Carroll and Shabana, 2010; Berns et al., 2009; Porter and Kramer, 2006; Porter and Kramer, 2010, Cohen et al., 2013) and publications from strategic consulting firms (e.g. MIT and BCG, 2011; Bonini and Gorner, 2011; KPMG, 2011). Firms transform themselves to align with new competitive realities, documented in the rich academic literature on business transformation (e.g. Armenakis and Bedeian, 1999; Kotter, 199...

Table of contents

• Cover
• Half Title
• Title Page
• Copyright Page
• Table of Contents
• Foreword
• Author biographies
• 1 Resources for the future
• 2 Forces shaping the globe’s forests and forest use
• 3 Thoughts on transforming the forest sector: the potential (and reality) of the bio-economy
• 4 Globalization and its implications to forest health
• 5 The consumer-country response to illegal logging and the international trade in illegal timber
• 6 Voluntary zero net deforestation: the implications of demand-side retail sustainability for global forests
• 7 IKEA: a furniture company’s view on wood
• 8 Roots of recognition and contested claims: opportunities and challenges for pro-community forest tenure reform since 2002
• 9 Future directions for plantations: investment options and product markets
• 10 New Generation Plantations: what future role towards sustainability?
• 11 Commercialization of forestry genetic research: from promise to practice
• 12 Can European forests meet the demands of the bio-economy in the future? Wood supply alongside environmental services
• 13 Bamboo and rattan production and the implications of globalization
• 14 What is needed to make markets for forest ecosystem services a reality?
• 15 Lessons in the design of payments for environmental services: theory and experience
• Index