Report Special: China
China is the world’s largest importer of timber, beef, soy, pulp and paper, and the second-largest importer of palm oil. Globally, production of beef, soy, palm oil and pulp and paper are the major drivers of deforestation in the tropical regions, with these commodities being responsible for at least 40% of global deforestation. Following China’s high-profile commitment at COP26 to work with 140 other governments to reverse global deforestation by 2030, how will the world’s fastest growing consumer economy turn fine words into effective actions? What are the steps that the Chinese government, corporate sector and civil society can take to end illegal logging and deforestation in supply chains? These questions are tackled in a major new report, China’s Role In Combating Deforestation and Promoting Global Forest Governance, that will be published on 19th July by the Tropical Forest Alliance and the World Economic Forum. China has made great progress in addressing the issue of deforestation within its own borders. The government started the ban on logging of natural forests in the headwaters of the Yangtze and Yellow Rivers in 2000, implemented a complete ban on logging in natural forests in 2017 and revised its Forest Law in 2020 to forbid businesses from handling timber they know to be illegally felled. However, since 2014, China has been importing timber in greater volumes than it produces domestically to meet growing demand within the country. And most of the top 10 countries supplying China with tropical timber rank very poorly against metrics for rule of law and control of corruption, with illegal logging rampant.
The report calls on the Chinese government and companies to take urgent, tangible steps to reverse the huge ecological impacts of timber and soft commodities in the countries that export to China. One challenge is China’s traditional reluctance to “interfere” in the internal affairs of other nations. However, timber-exporting countries such as Indonesia already have their own national laws and policies to tackle deforestation. The report argues that by seeking to uphold these standards among trading partners, China is strengthening rather than interfering in the sovereignty of other nations. Another challenge relates to China’s own timber legality verification regulations – as long as they remain voluntary, their effectiveness is likely to be limited. Meanwhile the newly revised Forest Law, while mandatory, is ambiguous in relation to imported timber. The government must clarify that the Forest Law’s provisions apply equally to imported and domestic timber, argues the report. Regulations, however, are only half the story. The government must pursue a twin-track approach that combines rules with incentives for business, such as tax breaks and concessionary loans for companies that can demonstrate action towards combating illegal logging and deforestation. The government could also send a strong demand signal by aligning its own procurement of timber and soft commodities with zero-deforestation standards.
Greening the global trade in timber and soft commodities will help protect the planet, but it is also in China’s self-interest. It will strengthen the resilience of China’s supply chains, boost China’s food security, and align its export businesses with markets such as the European Union which are rapidly regulating against commodities associated with deforestation.
China has the potential to strengthen its standing as a responsible global power by accelerating actions to reverse global deforestation by 2030, in line with its international commitments, its pledge to promote a green Belt and Road Initiative, and its stated goal to create an Ecological Civilization. This report makes detailed recommendations for action in four principal areas: national legislation, market demand and incentives, practical tools for Chinese businesses and international cooperation.
Read the report here.
