MTCC Stakeholder Dialogue 2015 Experiences in the Implementation of the Malaysian Timber Certification Scheme (MTCS) Yong Teng Koon 28 July 2015
Outline of Presentation • Introduction • Significant Milestones • Current Status of Forest Certification • Recognition of MTCS • Stakeholder Involvement • Issues & Challenges • Conclusions 2
Introduction on MTCC & MTCS MTCC - Established in October 1998; • started operations in January 1999 Independent organisation to develop and operate a voluntary • national timber certification scheme in Malaysia Governed by 11-member Board of Trustees (BOT): • – timber industry – academic & research institutions – non-governmental organisations (NGOs) – government agencies 3
MTCC VISIO VISION To be recognised as the leading timber certification organisation for tropical forests MISSION MISSION To establish and operate a credible and internationally recognised national timber certification scheme towards promoting sustainable forest management in Malaysia 4
Operation of MTCS MTCS started operation in October 2001 • Provides independent assessment of • forest management practices to ensure and promote sustainable management of natural forest and forest plantations in Malaysia FMC audit Chain of Custody audit to ascertain the • timber products manufactured or exported are sourced from MTCS-certified forest Country & market driven initiative • CoC audit 5
Significant Milestones 1998 • Incorporation of NTCC Malaysia 1999 • NTCC Malaysia starts operation 2001 • NTCC Malaysia renamed as MTCC • MTCC scheme starts operation • Multi-stakeholder NSC formed to develop standard 6
2002 • Launching of MTCC scheme by YB Minister • First shipment of MTCC-certified products to the Netherlands • MTCC became a member of PEFC Launching of the MTCC Scheme by Dato ’ Seri Dr. Lim on 31 January 2002 2005 • Use of MC&I(2002) under the MTCC scheme 2006 • New institutional arrangement for MTCC scheme 7
2008 • MTCC scheme renamed as MTCS 2009 • Adoption of MC&I(Forest Plantations) • MTCS becomes 1 st tropical scheme to be endorsed by PEFC 2011 • Adoption of MC&I(Natural Forest) 8
2012 • Endorsement of MC&I(Forest Plantations) and MC&I(Natural Forest) by PEFC 2013 • Start of Review of MC&I(Forest Plantations) 2014 • Adoption of MC&I Forest Plantation.v2 • Re-endorsement of MTCS by PEFC 9
Current Status of Forest Certification GLOBAL Total Certified Forests: 446 million ha (10 (10 % of the world’s for orests) ests) Total Certified Tropical Forests: 37 million ha (8.3% of (8.3% of total total ce certi tified fied for orests ests) 10
Certified Forests under Various Certification Schemes, 2014 MTCS 1% (4,661,816 ha) FSC 41% (183,103,140 ha) PEFC 59% (258,543,415 ha) 11
Geographical Distribution of Certified Forests, 2014 Asia Pacific Africa 3.2% 1.3% 14,158,646 ha 5,672,979 ha Oceania 2.9% 12,980,952 ha Central & South America North America 3.9% 50.4% Europe 17,302,924 ha 212,126,447 ha 38.4% 171,177,341 ha 12
Certified FMUs and FPMUs under MTCS As at June 2015, 10 FMUs and 2 FPMUs hold valid PEFC Certificate for Forest Management covering area totaling 4.66 million ha 424,497 ha 516,697 ha 307,046 ha 57,247 ha 991,436 ha 1,524,827 ha Shin Yang Kuala Baram FPMU 1,007 ha 238,747 ha 83,535 ha 154,676 ha Samling Segan LPF 0014 FPMU 351,302 ha 10,800 ha 10 FMUs cover 4.65 million ha of PRFs (1/3 of total PRFs in Malaysia) 2 FPMUs cover 11,807 ha of forest plantations 13
PEFC-Certified Timber Companies in Malaysia 341 companies issued with PEFC Chain of Custody Certificate (as of 31 June 2015) 14
Growth of CoC and FM Certification (2001-2014) 14 350 No. of Chain of Custody Certificate No. of Forest Management Certificate 12 300 10 250 Holders 8 200 Holders 6 150 4 100 2 50 0 0 Chain of Custody Certificate Holders Forest Management Certificate Holders Year 15
Recognition of MTCS As a PEFC endorsed scheme, MTCS is recognised by various • national timber procurement policies: Green Building systems: • Other policies: • 16
Export of Certified Timber Products under MTCS Norway Denmark Belgium Lithuania Canada Sweden Netherlands Finland United Kingdom Poland Germany Ireland France Italy Albania USA Japan Switzerland South Greece Cyprus China Egypt Korea Pakistan Kuwait Bahrain Lebanon Jordan Qatar Iraq India Libya Mauritius UAE Saudi Arabia Philippines Thailand Suriname Oman Sudan Singapore Indonesia Australia South Africa New Zealand Total of 45 destinations Cumulative total export as of 1 April 2015 = 1,010,999 m 3 17
Export of Timber Products Certified under the MTCS July 2002 – December 2014 180,000 1,200,000 Yearly Export Volume (m 3 ) Cumulative Export Volume (m 3 ) 160,000 1,000,000 140,000 120,000 800,000 100,000 600,000 80,000 60,000 400,000 40,000 200,000 20,000 0 0 Yearly Export Volume Cumulative Export Volume Year 18
Involvement of Stakeholders in MTCC and MTCS Processes Institutional Arrangement of MTCS MTCC STANDARDS MALAYSIA National Governing National Accreditation Body Body (NGB) (AB) Notification Malaysia Timber Accreditation Certification Scheme (MTCS) Applicants for Forest Management Certification Accredited Certification Bodies (CBs) Applicants for Chain of Custody Certification 19
Involvement of Stakeholders in MTCC and MTCS Processes Overall governance of MTCC - Multi-stakeholder Board of MTCC (NGB) Trustees (BOT) Development/review of standards - Multi-stakeholder Standards MTCS Development / Review Committees Implementation of MTCS Accredited CBs - Feedback from stakeholders during field audits 20
Multi-stakeholder Board of Trustees (2013-2015) CHAIRMAN SOCIAL – WORKERS’ UNION SOCIAL – INDIGENOUS PEOPLE Mohd Khalid Atan Dr (H) Banabas Tapin Timber Employees Union Kadazandusun Cultural Peninsular Malaysia (TEUPM) Association (KDCA) ACADEMIC / RESEARCH INSTITUTION Gerawat Gala Federation of Orang Ulu Association Sarawak Dr Liew Kang Chiang Malaysia (FORUM) Universiti Malaysia Sabah (UMS) Dato ’ Dr Freezailah Che Yeom ECONOMIC Malaysian Timber Certification Council Datuk James Hwong Dr Rasmina Halis Sabah Timber Industries Universiti Putra Malaysia (UPM) Association (STIA) RELEVANT GOVERNMENT AGENCY Ho Khoy Lim Malaysian Panel-Products Manufacturers’ Association Datuk M. Nagarajan (MPMA) Ministry of Plantation Industries and Commodities (MPIC) ENVIRONMENTAL Dr Megat Sany bin Megat Dr Melvin Gumal Ahmad Supian Wildlife Conservation Ministry of Natural Resources Society (Malaysia Program) and Environment (MNRE) 21
Representation of Organisations in the MTCC Board of Trustees (BOT) 1999 – 2015 OU OUNA 22
Stakeholder Involvement in Standard Setting Process (SSP) Stakeholder Mapping Announcement of the standard-setting process and invitation of stakeholders Creation of the working group/committee Periodic revision of Working group/committee – development of a draft the document standard Public consultation and pilot testing Consensus-building on the final draft Formal approval of the standard Publication of the standard 23
Rules on Standard Setting Process (SSP) SSP 3/2014 - Rules on Standard Setting Process for Development of Timber Certification Standards Rule 4.5 The standardising body shall establish a permanent or temporary Working Group/Committee responsible for standard setting activities. The Working Group/Committee shall; b) Have balanced representation and decision making by stakeholder categories relevant to the subject matter and geographical scope of the standard… c) Include stakeholders with expertise relevant to the subject matter… 24
Stakeholders Represented in Working Group Indigenous Peoples Workers Economic WORKING ORKING GR GROUP OUP Environmental Government (SR (SRC) C) Covering Sabah, Sarawak & Peninsular Malaysia 25
SRC for Review of MC&I(Forest Plantations) Stakeholder Sabah Sarawak P. Malaysia Group Indigenous Peoples Workers Environmental Economic Government 26
Stakeholders Consulted and Provided Feedback in Review of MC&I(Forest Plantations) Workers Unions Environmental Economic Government Indigenous People 27
Stakeholder Involvement in Implementation of MTCS Stakeholder consultation is a requirement for FMC • Prerequisite for CBs operating FMC as stipulated in documents • ACB-FMC 1-4 and ACB-FMC 2-4 Consultation with relevant stakeholder groups to gauge • compliance of FMU against specific Verifiers of the certification standard used 28
Stakeholder Involvement in Implementation of MTCS Stakeholder groups informed of audit • 1 month before scheduled audit Consultation to solicit direct & factual • feedback/ observations regarding forest management activities in FMU to be audited Consultation in field carried out in • confidence – without presence of manager/representative of FMU concerned 29
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