世界发展银行-Regulatory-Framework-and-Policy-Support-for-Certification,-Timber-Legality-and-Sustainability-in-Lao-PDR_12页_10mb

Summary of Regulatory Framework and Policy Support for Certification, Timber Legality and Sustainability in Lao PDR

Introduction

Lao PDR is transitioning towards a greener and more resilient economy, with a focus on sustainable forest management (SFM). To support this transition, the Government of Lao PDR (GoL) and the World Bank Group (WBG) have initiated the Advisory Services and Analytics (ASA) on Sustainability of Lao PDR's Forests. This policy note outlines the current regulatory framework and policy support for timber legality assurance, certification, and partnerships in the forestry sector.

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Core Content

The forestry sector in Lao PDR is undergoing significant reforms to align with global market demands for legal and sustainable forest products. These reforms are essential to attract investment and improve market access, particularly in the context of international trade and environmental standards.

1. Timber Legality Assurance

• The GoL has made progress in reforming the Forestry Law (2019) and implementing Prime Minister Order No. 15 (POM15).
• A Ministerial Instruction on Timber Legality Assurance was issued in 2018 with support from the WBG.
• Key areas for improvement include:
  • Disseminating the new Forestry Law and developing implementation guidelines.
  • Ratifying the Voluntary Partnership Agreement (VPA) and establishing the Timber Legality Assurance System (TLAS).
  • Enhancing enforcement in high-risk areas and products.
  • Systematically managing and reviewing regulations across sectors.
  • Improving guidance for wood sales and royalty management.
  • Developing supportive policies for micro, small, and medium enterprises (MSMEs) and smallholders.
  • Creating clear regulations for timber salvaged from infrastructure areas.
  • Enabling fair use of forest products from village use forests.

2. Forest Management Certification

• Forest management certification has not been widely adopted due to limited market demand and regulatory inconsistencies.
• A comprehensive policy on SFM is needed, linking it with supporting regulations and incorporating diverse forest uses.
• For State managed Production Forest Areas, a clear policy statement on certification and a national standard should be developed.
• Plantation companies require clarification on land access and use rights, as well as environmental and social protection measures.
• Smallholders and village use forests need simplified regulations and certification standards that match their scale and impact.

3. Chain-of-Custody Certification

• Chain-of-custody certification is crucial for market access but is currently underdeveloped in Lao PDR.
• Current tax and fee regulations discourage full transparency in supply chains.
• MSMEs in the wood products industry lack awareness of the benefits of good practices.
• Policy incentives and support are needed to encourage compliance with the Law on Enterprise and the Law on Industrial Processing.
• Regulations on supply chain control should be simple, enforceable, and tested with various enterprises.
• Improved systems for recording wood volumes and species are required for State-managed and salvaged timber.
• Plantation wood enterprises need updated regulations to support innovation and trade.

4. Forest Grower Groups

• Group certification can reduce the financial and administrative burden on individual forest owners.
• Grower groups can enhance market bargaining power and share certification costs and benefits.
• Past efforts in the forest sector have had limited success compared to agriculture, indicating a need for better support.
• Efficient and inexpensive procedures for group establishment, registration, and management are essential.
• Grower groups can perform administrative functions like plantation registration and harvesting approvals, which can improve compliance.
• Strengthening micro and small enterprises can support the feasibility of grower groups.
• Inter-ministerial agreements are necessary to create a conducive policy environment.
• Establishing linked value chains between growers, groups, and responsible companies is important for cost-sharing and certification responsibility.

5. Public Private People Partnerships (PPPPs)

• PPPPs are seen as a key tool for promoting sustainable forest management and ensuring social benefits.
• A conceptual framework and road map for PPPPs have been developed, along with a decree.
• PPPPs must consider the role of people (individuals, communities, groups) as active participants or beneficiaries.
• Revenue diversification in national parks and protected areas, including sustainable private concessions and nature-based tourism, can be explored.
• Legal and institutional frameworks must be in place to support PPPPs, including dedicated legislation, clear mandates, and template contracts.
• Transparent mechanisms for mediation, dispute resolution, and conflict management are critical.
• Cooperation modalities, land-use rights, harvesting and transport regulations, and social and environmental standards need to be clearly defined.

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Conclusion

To achieve sustainable forest management and improve market access, Lao PDR needs a robust regulatory framework that supports timber legality, certification, and partnerships. This includes updating and implementing existing laws, developing new policies, and creating an environment that encourages compliance and innovation across the forestry sector.