Ingram ecosystem services timber value chain 07052013 2

1. Innovations in integrating ecosystem services
into tropical timber value chains with Dutch links
Ecosystem Services Workshop, University of Kiel, Germany
6-8 May 2013
Verina Ingram1, Jolanda van den Berg1, Mark van Oorschot2 and Marcel Kok2
1
Agricultural Economics Institute, (LEI) Wageningen University & Research centres,
2
Netherlands Environmental Assessment Agency (PBL)

2. Aim & scope
 Aim:
● Inventory governance “steering” mechanisms for
Dutch government to stimulate sustainable use and
maintenance of ecosystem services through
international value chains.
 Scope:
● International chains for tropical timber, relevant to the
Netherlands (consumers, enterprises, NGOs etc.)
● Analyse trade from/for Dutch policy perspective.

3. Methodology
1.
Develop and test analytical framework
a) Literature study
b) Conceptual & analytic framework
c) Policy and practice discourse analysis (using ES definition/framework
from MEA)
2.
Select case studies: innovations in international tropical timber
a) Literature review
b) Interviews
3.
Develop recommendations for intervention possibilities
4.
Next step: workshop to test results and recommendations

4. Analytical framework
FRAMEWORK CONDITIONS
Regulation
Business operating environment
Demand
Political system
Infrastructure
POLITICAL ECOLOGY
INNOVATION SYSTEMS
VALUE CHAINS
PROCESS DYNAMICS
Retail
Consumers
processing
Wholesale
Retailers
Production &
Traders
Resource
Processors
Harvesters
Relationships
Institutions
Actors
Processies
Chain platform
Enabling
e.g.
certification
Government
Research
CSOs &
NGOs
Consumption

5. -
Links locations and landscapes also demand and supply
Embodies economic but also other forms of value
links products and ESS associated with their extraction, production & use
Links different actors
Embraces (plural) governance (formal, informal, market-based) & management systems
Timber value chain
Consumer
Individuals
Timber companies
Packaging
companies
Consumer
Private sector
Furniture
companies
Carpentary &
Joinery companies
Veneer
Veneer
Plywood
Plywood
Saw mills
Veneer plants
Plywood mills
Logs
Logs
Illegal loggers
Natural
forest
Construction
companies
Paper & pulp
companies
Panel products
Panel products
Sawn wood
Sawn wood
Local individuals &
communities
Consumer
government sector
Paper products
Biomass
Biomass
energy
energy
Paper Mills
Energy plant
Pulp Mills
Pulp
Pulp
Logging companies
Enriched
natural
forest
Government
landowners
Forests & Trees
Concession holders
Plantations
Wood residues
Wood residues
Small scale &
plantation owners
Agroforestry
& Individual
trees
Energy production
companies
Biomass
Biomass

6. Results Discourse analysis
1.
2.
ES not defined in Dutch policy: vague, container term
3.
Couched in terms of economic value, strong emphasis on market
mechanisms to ensure sustainable use and maintenance of ES
4.
Biodiversity “valuable” frequently associated with conservation, new
market-based initiatives & financial instruments to maintain it
5.
Dutch sustainability agenda strongly internationally driven- emphasise
Dutch competiveness
6.
Business partners stimulated to lead, government facilitating,
stimulating and supporting role – creating space for enterprises to
take sustainability initiatives and develop innovations
ES used to connect economics and ecology, emphasising the economic
use of natural resources and biodiversity

7. Results Selected cases of chain innovations
Case
Sustainable
Trade Action
Plan 2011-2015
Driver
Dutch
government
Focus
Multi-stakeholder
partnerships and platform
Innovation
Institutional
framework,
finance (€105
million 5 years)
Learning
Explicit in IDH
business model
Forest
Stewardship
Council (FSC)
certification
(International
and Dutch)
Private sector
Certification for sustainable
operations, specific
expanding certification to
ecosystem services
Include
ecosystem
services in
certification,
process
orientated
Pilot, ForCES
multistakeholder,
learning explicit
Dutch Public
Procurement
Policy
EU &
Government
driven
GFTN and TPAC as a multistakeholder platforms
Framework
conditions,
regulations to
drive innovations
in chains
Linked to FSC
and PEFC
certification
standards
REDD
International,
NGOs, national
policy
Multi-stakeholder platforms
Novel mix of
finance, policy
practice &
research,
resource focused
Pilots learning
orientated,
Specific mention
ecosystem
services

8. IDH & Action Plan for Sustainable Trade
2011-2015

ES not explicit in IDH & STAP model and not mentioned in its literature or
interviews:

IDH stimulates “trade in certified sustainably produced timber and other forest
products is a proven mechanism for promoting sustainable forest
management”. STAP stimulates certification, especially FSC, seeks to increase
demand for certified timber in Netherlands & Europa.

Innovations: chain wide, PPP matching system stimulates innovations and
‘tried & tested’’ approach, focus on sustainability problems central. Platform
and network approach

Stakeholders: all actors – but excludes some (CSOs, research), accent on
business, government role indirect as IDH executes Dutch government policy

9. Sustainable Trade Action Plan & IDH
FRAMEWORK CONDITIONS
Stimulating PPP
Wholesale
Retail
Consumers
Production
&
processing
Retailers
PROCESS DYNAMICS
Traders
Resource
Processors
Harvesters
ESS addressed:
- Provisioning goods (timber)
Via FSC
- Goods (timber, non-timber)
- Regulating functions
- Support functions
- Cultural functions
+
- Biodiversity
Consumpti
on
Chain platform
Enabling e.g.
certification
Government
Research
CSOs &
NGOs

10. Forest Stewardship Council
 All ESS explicit (some implicit) in FSC standards & principles
 Further being developed in FoRCES “Expanding FSC Certification
to Ecosystem Services” pilot project – bundles ESS
 Innovations: chain breed (traceability), emphasis on ES
production level (forest) & consumer, multi-stakeholder, only
certification organisation to look at multiple ES products and
services - other schemes (e.g. carbon) look at just one.
 Stakeholders: companies (timber companies/ timber concession
holders , transporters, processers, retailers) & NGOs (WWF,
Greenpeace, SMN, ICCO)
 Roles: joint development and implementation of standard, criteria
and system

11. Forest Stewardship Council
Wholesale
Retail
Consumers
Production
&
processing
Retailers
FRAMEWORK CONDITIONS
Voluntary
Market-based
PROCESS DYNAMICS
Traders
Resource
Processors
Harvesters
ESS addressed:
- Provisioning goods (timber,
non timber, carbon in
ForCES)
- Regulating functions
- Support functions
- Cultural functions
+
- Biodiversity
Consumpti
on
Chain platform
Enabling
e.g.
certification
Government
Research
CSOs &
NGOs

12. Dutch sustainable procurement

ES largely implicit in Dutch 2008 procurement criteria for timber
(TPAC), although forest regulation function explicitly stated.

Innovations in chain: example and target setting by government as
buyer, tests use of certification (FSC, PEFC) as way of meeting 100%
sustainable procurement by 2010, code of conduct, controls &
sanctions by business association VVNH.

Stakeholders: government buyers, construction & timber company
suppliers, Association Dutch timber companies, NGOs
(Milieudefensie), SMK/TPAC, Dutch Agency, research bodies, customs.

Roles: central government ‘steers’ (via financing), policy
implementation by SMK/TPAC, independent testing by TPAC trade
mark, self-regulation (enforcement) timber sector (via association),
import authorities.

13. Public procurement
FRAMEWORK CONDITIONS
Regulation
Wholesale
Retail
Consumers
Production
&
processing
Retailers
PROCESS DYNAMICS
Traders
Resource
Processors
Harvesters
ESS addressed:
- Provisioning goods (timber)
Via FSC
- Provisioning goods (timber,
non-timber)
- Regulating functions
- Support functions
- Cultural functions
+
- biodiversity
Chain platform
Enabling
e.g.
certification
Government
Research
CSOs &
NGOs
Consumpti
on

14. REDD+ in Indonesia

ES only implicit in REDD+ pilot projects. CO2-reduction and
biodiversity protection only ES that are specific.

Innovations: new legal and institutional setting (new actors: REDD+
Commission, Bappenas, UKP4, REDD+ Task Force) for REDD+ in
Indonesia.

Stakeholders: Ministries Foreign Affairs & Economic Affairs, Dutch
Ambassador, NGOs (WWF, Greenpeace), FSC Nederland, IDH Borneo
Initiative, IUCN-NL, NL REDD+ platform, researchers.

Roles: Dutch (indirect) financing of FCPF-World Bank en direct ODA
support (for REDD+), Dutch ambassadorial support and from bilateral
support to Indonesian government, NGO’s & enterprises.

15. ESS addressed:
- Provisioning goods (timber,
carbon)
- Regulating (climate)
+
- biodiversity
REDD
FRAMEWORK CONDITIONS
Voluntary
Global convention
Retail
Consumers
Wholesale
Retailers
Production
&
processing
Traders
Resource
Processors
Harvesters
PROCESS DYNAMICS
Consumpti
on
Chain platform
Enabling
e.g.
certification
Government
Research
CSOs &
NGOs

16. Commonalities & differences
 Multiple chain stakeholder involvement seen as critical to success
 ES have been largely not made explicit in cases, instead
sustainability and biodiversity
 Exception is FSC certification –driver to integrate ES in 3 cases
 Drivers vary per cases- mandating, facilitating, partnering and
endorsing
 Framework conditions triggered innovations - but created barriers
 Differing extent to which civil society and consumers (private,
corporate or public)
 Power and control of the chain, especially access to information and
institutional building, important to how innovation introduced and
its impact.

17. Conclusions

4 cases illustrate studies dependence upon 2 governance or steering
mechanisms: market based & regulatory

Actors remarked that ES concept is not clear and is too complex confusion with concepts of biodiversity and sustainability


Timber certification forms basis of innovations in all 3 cases
Paradox: Dutch government does not intervene in FSC standard
(companies & NGOs in lead) → role limited for Dutch government to
promote FSC certified timber (procurement policy & financing IDH)
so Dutch government only indirectly able to promote ES via FSC
certification (FSC & IDH members). Risk of derailing by interests of
other chain actors and other initiatives with more control in chain

18. ESS Cascade
(Potschin & Haynes-Young, modified)
Governance and
management institutions
for public and private
goods & services
Governance and
management
institutions/systems
for public and private
goods & services

19. Recommendations
1. Simplify terminology
2. Move up from concession and chain to landscape level
3. Lengthen temporal focus further than just ‘since
certification’
4. Refocus on ES at other chain stages- not just production
5. Move towards evidence based policy making on impact of
certification on ES
6. Make ES conservation through certification more explicit
7. Develop & use (internationally accepted) impact indicators
for ES assessment to “see through the trees” of multiple
certification schemes and sustainable forest management
initiatives

20. Questions?
Comments?
More information:
verina.ingram@wur.nl