What is Illegal Logging?

Illegal logging takes place when timber is harvested in violation of national laws. The clandestine nature of illegal logging makes its scale and value difficult to estimate in relation to the global trade in forest products (estimated by the OECD to be worth over €150bn per year), but strong evidence suggests that it is a substantial and growing problem. The World Bank’s 1999 review of its global forest policy observed: "In many countries, illegal logging is similar in size to legal production. In others, it exceeds legal logging by a substantial margin."
It is not just a tropical country problem; countries of the former Soviet Union are facing problems regulating their forests. Russia is thought to lose at least $1 billion dollars per year (Federal Tax Police) and rates of illegal logging are estimated at around 25% .

Why is it so bad?

Undermines legitimate trade: Illegal logging and associated trade undermines the competitiveness of legitimate forest industry operations in both exporting and importing countries. In so doing, this limits the ability of these industries to conduct operations that foster sustainable forest management, and sustainable development generally.

Public spending: Illegal logging costs governments vast sums of money. Estimates suggest that illegal logging costs timber-producing countries €10-15 billion per year in lost revenues, which could otherwise be spent on the provision of better healthcare, education and other public services, as well as the implementation of sustainable forest management.

Environment: Illegal logging also causes enormous environmental damage and loss of biodiversity, for instance through logging of national parks, and can facilitate the illegal exploitation of wildlife. It can be a contributory factor to the process of deforestation, and it can increase the vulnerability of forests to fires – both of which have climate change implications. It undermines sustainable forest management and has a long-term negative impact on the livelihoods of forest-dependent people, many of who are amongst the world’s poorest and most marginalised people.
Illegal logging thus undermines sustainable development.

Corruption: The illegal exploitation of natural resources, including forests, is closely associated with corruption and organised crime. In some forest-rich countries, the corruption fuelled by profits from illegal logging has grown to such an extent that it is undermining the rule of law, principles of democratic governance and respect for human rights.

Conflict: In some cases the illegal exploitation of forests is also associated with violent conflict. Profits from the illegal exploitation of forests (and of other natural resources) are often used to fund and prolong these conflicts.

Why is it an issue for the Timber Trade?

a) UK Government Timber Procurement Policy requires verified legal timber as a minimum for all central government department timber purchases
b) Big corporate customers are adopting the same policy
c) The TTF has committed to trade only in legal timber (see below)
d) Companies are concerned about their reputation, employee/board conscience and NGO pressure
e) The European Union Action Plan on Illegal Logging will bring concerted action on illegal logging including voluntary licensing schemes between participating countries.
f) Timber will lose market share if it cannot improve its performance and reputation on legality.

The TTF Commitment on Illegal Logging

"Members are committed to sourcing their timber and timber products from legal and well-managed forests. Members unreservedly condemn illegal logging practices and commit themselves to working with suppliers and other stakeholders towards their complete elimination"
"Independent certification is the most useful tool in providing assurances of legal and well-managed forests"
TTF Code of Conduct, April 2002

What is the TTF doing about it?

Since November 2002 TTF has embarked on a programme of activity to help its members source timber from legal origins (hotlink to "TTF and Illegal Logging").
Specific work has been going on in Indonesia as part of the Memorandum of Understanding signed between the governments of the Republic of Indonesia and the UK (hotlink to that page).
We have been revising the TTF Responsible Purchasing Policy as a core element of a timber traders CSR policy (hotlink to appropriate page).
We helped initiate a European Timber Trade Action Plan to source legal timber into the EU (hotlink to press releases and to Project Summary Sheet).
We have been active in dialogue with the UK government, European Commission, other timber trade organisations and civil society in finding constructive solutions to the illegal logging problem.