Forest Certification in Brazil

This case study reviews the Brazilian experience since the mid-1990s with certification of natural and plantation forests at corporate and community levels. Discriminating world markets, corporate social responsibility, and image concerns stimulated certification by the plantation segment. Initial certifications were carried out according to FSC standards, using criteria adopted by a national tripartite working group. A separate national certification scheme (CERFLOR) was recognized in 2002 by the PEFC. Over 1.2 million hectares (ha) in plantations and associated natural reserves had been certified by May 2004 under both schemes, of which about 80 percent was certified according to FSC criteria. Only about 500,000 ha of natural forests had been certified, although Brazil is simultaneously the world’s largest producer and consumer of tropical timber. Deforestation and illegal extraction in the Amazon continue to flood the domestic market. Government policy affirms that voluntary certification is an important means to internalize socio-environmental costs but does not supplant national regulation, which in some local cases has imposed additional burdens on those who have adopted certification. Concessions in public forests and forest family partnerships may draw regulatory norms and certification criteria closer together. The case study concludes, however, that certification has made an impact in Brazil where it is perceived as being key to market access, even where there is no substantial price premium. Where certified firms must compete with rampant disorder and illegality, as in the Amazon region, certification’s impact has remained limited and oriented toward specialized niches, and as such has not raised the bar on industry-wide practice. Future development of the certified forest industry in Brazil will depend on adoption of more flexible standards for certification of outgrowers and community forest managers, and on a more congenial accommodation of government regulators and certified enterprise. forest certification in brazil yale school of forestry & environmental studies 339 1 The research on which this study is based combines results of prior field studies of the Brazilian forest-based industry by the author and other scholars with original data derived from interviews with key stakeholders in the certified forest segment, as noted in the text. The author also participated in seminars and discussed the experience of FSC-certified enterprises with executives and representatives during a trade fair organized by the Brazilian Certified Wood Buyers’ Group, in São Paulo in April 2004. Valuable comments on a previous version by André de Freitas are gratefully acknowledged. Responsibility for further interpretation of the current status of the certified forest sector is the author’s alone. introduction This case study reflects on Brazil’s experience with forest certification since the mid1990s, at corporate, partnership and community levels, in natural and plantation forests, channeling wood and non-timber forest products (NTFP) to both the domestic and international markets. Brazil’s movement toward forest certification has been consumer-driven, corresponding to broader concern for sustainability as a new element in global competitiveness. A combination of access to discriminating world markets, corporate social responsibility and image concerns stimulated adoption of FSC forest management standards by leaders in the industrial forest plantation segment. Industrial associations developed a national certification scheme (CERFLOR: Programa Nacional de Certificação Florestal), recognized in 2002 by the Programme for the Endorsement of Forest Certification schemes (PEFC). In comparison to the plantation segment, a relatively limited proportion of natural forests have been certified, even though Brazil is simultaneously the world’s largest producer and consumer of tropical timber from natural forests. This is explained by the fact that a substantial volume of timber originating from deforestation and illegal extraction in the Amazon continues to flood the domestic market. In the future, regulation of private extraction and controlled governmental concessions, combined with sheer resource exhaustion in settled areas, are expected to limit access to formerly open access timber reserves. The hope of certification proponents is that certified natural forest management will then grow in relative importance, spurred by the creation of certified buyers’ and producers’ groups. Government policy reflects the view that voluntary certification is an important means to internalize socio-environmental costs (Brazil 2003), but does not supplant national regulation. In some localities, regulators have imposed additional burdens on those who have adopted certified natural forest management (André de Freitas, personal communication). Such restrictions have sometimes extended to small-scale community-based forest management efforts, despite supportive official rhetoric and donor support. Current plans to grant timber extraction rights in public forests may draw regulatory norms and certification criteria closer together, although a proposed law for concessions does not require certification, but rather encourages external auditing. This case study will argue that certification has made an impact in Brazil where it is perceived as key to market access, even where there is no substantial price premium. Where certified firms must compete with rampant disorder and illegality as in the Amazon region, its impact has necessarily remained limited and oriented toward specialized niches, and as such has not raised the bar on industry-wide practice. In the future, government and voluntary schemes for tracing timber origin should jointly ensure greater confidence in chains of custody. However, there remains quite a lot to be done to enhance the market share of certified timber and other wood products, both in Brazil and in positioning these products in international markets.