Trade Partnerships Offer Hope Against Deforestation

Woodlands in nearly every forested country face threats from climate-change-driven fires and deforestation pressures fueled by economic interests exploiting natural resources. Credit: Imran Schah/IPS

By Agus Justianto
BANTEN, Indonesia, Jan 10 2025 (IPS)

In Indonesia’s forests today, we can breathe a sigh of relief. At the conclusion of our dry season, during a time when climate change impacts are increasing in frequency and severity, there were no giant fires with plumes of smoke choking our region.

Tragically, forest fires have been burning elsewhere with increasing intensity, in the Amazon and even in New York City, as unprecedented droughts plague forests across the globe.

Indonesia was the first tropical forest nation to launch its tracking system, and only Ghana tracks its timber at a similar scale. It is one of the first steps required of countries that export timber to UK and EU markets, and ensures that our timber products, including furniture and paper, have been sustainably sourced and comply with all our legal requirements

The rise in global deforestation continues to be a focus of attention. But in Indonesia, which contains the third largest extant of tropical rainforest, the deforestation rates are still below the peak rates from 8-10 years ago despite climate impacts like El Nino systems and the continuing threat of large fires.

The importance of Indonesia’s progress is diminished if it remains unique. Woodlands in most every forested country remain vulnerable, to both climate-change-fueled fires as well as deforestation pressures from economic interests seeking to exploit the natural resources that forest lands contain.

Scientists have calculated that almost one half of all emissions from burning fossil fuels were absorbed by the world’s forests over the past three decades. The world is getting a better understanding of just how important forests are in the global fight against climate change.

Our experience starts with something that, though it may seem basic, too many countries suffer from: the need to stop criminal enterprises from decimating forests. Globally, illegal logging and other forest crimes generate an estimated US$100 billion annually—almost as much as governments provide for development assistance every year.

In 2011, about 80% of Indonesia’s timber exports were considered illegal, produced in violation of Indonesia’s own laws. That was a watershed moment, one that launched us on a path to manage our forests more sustainably.

We started first by instituting a temporary moratorium on new logging concessions in 2011 that became permanent in 2019. We then implemented a new system (called SVLK) that traces the route taken by every timber product for export, back to the forest where it was initially harvested.

Today, 80% of the production from primary productive forests are now certified for sustainability and all timber exports come from independently audited factories and forests, even those meant for markets beyond the UK and the EU which do not require such a system.

Indonesia was the first tropical forest nation to launch its tracking system, and only Ghana tracks its timber at a similar scale. It is one of the first steps required of countries that export timber to UK and EU markets, and ensures that our timber products, including furniture and paper, have been sustainably sourced and comply with all our legal requirements.

Strong forest governance has increased the value of national timber exports, and revenues are no longer lost to black market operations. Indonesia has seen a 19% increase in the value of timber exports to the EU, to about USD 1.4 billion, since the tracking system came online and exports to UK and EU began in 2016.

Access to UK and EU markets would not be possible without programs that work with Indigenous Peoples and respect their rights to manage their forests.

Our tracking system provides reports showing that the production of each shipment of timber for export complies with respect for their rights. Our support and collaboration with small- and medium-sized enterprises has increased business and trade with forest-dependent communities, providing markets for their bamboo, timber, wild foods, essential oil and spices.

This embrace of sustainability and respect for Indigenous rights, along with the rejection of criminal enterprises, can be embraced in any forest around the world.

The UK government in particular has been instrumental in supporting the implementation of these safeguards; its long-term support over the past two decades to forestry stakeholders in Indonesia through the Forest Governance, Markets and Climate programme helped put in place the new national system, enabling local communities to monitor against forest crime and strengthen management practices.

We look and see similar efforts growing in Liberia and Cameroon in particular as being worthy of continued support; they have made tremendous strides in combatting illegal enterprises and recognizing community rights. The many steps needed to meet the requirements of UK and EU markets are important but also require consistent funding and resources that can be difficult to locate during economic downturns in particular.

Effective management of the forestry sector requires an embrace of partnerships—with every community and entity participating in the supply chain as well as every market and each requirement for sustainability and transparency.

We appreciate our new ten-year partnership with the UK that was just finalized and hope that the UK can establish new partnerships with other nations. If you build these partnerships, the benefits extend beyond profitability; society receives greater stability, greater trade, and positive benefits for the climate.

Agus Justianto, PhD, is Vice Chairman of Indonesia FOLU Net Sink 2030 and Chairman of International Peatland Center.