Sustainable Forest Products Global Alliance Year 7 Quarter 3/4 Report

The alliance seeks to advance a new model for forest conservation and community development in USAID-presence countries where sustainable forest management is rewarded in the global marketplace. By reducing trade in illegally harvested or unsustainably managed forest products, opportunities for resource-dependent communities and low-income producers will grow. The alliance has three main objectives: to enhance demand for legally produced products from well-managed forests through the implementation of responsible purchasing practices by global businesses and other organizations; to increase supply of products legally produced from well-managed forests that generate social, economic, and ecological benefits through improved forest management; and to increase efficient trade of legal forest products from well-managed forests through the development and dissemination of information that enhances decision making of willing buyers and sellers. During the second half of the seventh funding year, the World Wildlife Fund (WWF) made substantial progress towards accomplishing the expected achievements defined for the year. The number of trade participants in the Global Forest & Trade Network (GFTN) decreased slightly from 258 to 220 companies, resulting from the removal of companies that declined to continue in the GFTN program, the strategy to work with companies that have larger volumes and source from WWF priority forests, and the global economic crisis. Despite the decrease in trade participants, the 220 companies that remained in the GFTN trade 256 million cubic meters of round wood equivalent (RWE) per year, representing nearly US$72 billion in forest product sales per year. At the end of the year, there were 11 trade participants on suspension due to their lack of progress against their action plans. The number of forest participants in the GFTN increased to 90 companies managing over 27 million hectares of forests, of which 20 million hectares are now under effective management. At the end of the year, there was one forest participant on suspension. The progress of effectively managed hectares decreased due to the global economic crisis, which impacted many companies and resulted in significant losses in exports. In addition, a total of 83 applicants are at various stages of the application process, managing an additional 4 million hectares of forests and trading approximately US$6 billion of forest products per year. GFTN has generated 432 inquiries from trade participants or applicants who wish to purchase more responsibly from forest participants in the network. To date, 191 of these inquiries have become market links, with an estimated value of US$89.2 million. GFTN estimates that approximately 2.1 million employees and 640 community families are currently benefiting from the GFTN participating companies. During the second half of the year, GFTN trained 475 professionals on purchasing, specifying, and financing responsibly produced and/or traded forest products, as well as 6,000 people in communities, local NGOs, and private sector on how to access markets for responsible forest products. The alliance's progress towards its objectives is reflected in the increase in the number of trade participants, the volume of credibly certified products traded, and the number of forest participants managing effectively. The alliance's efforts to promote responsible forest management and trade have resulted in significant benefits for resource-dependent communities and low-income producers.