BRAZILIAN FOREST SECTOR

COMMITTED TO CERTIFICATION OPPORTUNITIES AND WAYS FORWARD

Elizabeth de Carvalhaes
PEFC Week

November 15th, 2013 Kuala Lumpur, Malaysia

LAND USE IN BRAZIL

Brazil - 851 mi ha
Cities and Infrastructure

95.8 71

Agriculture / Food Production Cattle Ranching

Forest Plantations

423.3

Natural Forests in private properties

160 7 93,9

Natural forests in non-private areas

61% of the Terriotory- Preserved land 1% - Forest Plantations

Source: MAPA/CNA/Bracelpa (2011)

FOREST PLANTATIONS SECTOR

Production revenue (Gross): USD 27,6 billion
Tax collection: USD 3.75 billion (0,5% of taxes

GEOPRAPHIC DISTRIBUTION OS THE MAIN PLANTATION CLUSTERS

collected nationally) Exports: USD 7,97 billion* (3,1% of Brazils

exports) Trade balance: USD 5,5 billion* (28,1% of Brazils

trade balance) Jobs generated: 4.4 million (5% of the economically active population)
rea plantada por empresas (ha)

*Considering 1 USD = BRL 2,03 Source: ABRAF, 2013

500 to 20 000

20 000 to 50 000 50 000 to 100 000

> 100 000

DISTRIBUTION OF PLANTATIONS (2012-2013)

SUPPLY FOR IMPORTANT INDUSTRY SEGMENTS

Timber Products
Seeds and Seedlings Energy

Industrial Consumption Domestic consumption

Steel Mills Forge Craft

Fertilizers Agrochemicals
Machines and Equipment

PLANTATIONSBASED PRODUCTS
Non-Timber Products

Charcoal

Integrated Plants

Pig Iron Alloys Iron

Domestic consumption Sawn wood Others Paper Industry

Other Uses

Furniture Industry

Rubber

Pulp

Natural Gums
Chemical Industry Pharmaceutical Automobilist Food, Etc Waxes

Solid Wood Products

Immune Wood Sawn Wood

Reconstituted wood Panels MDF

Tanning fibers Aromatics, Medicines and Dyes

Others

Processed Wood

MDP
Fiberboard

Chipboard/ Veneer

OSB
Wood Residues

Diverse uses

Internal and External Markets

RANKING MAIN PULP AND PAPER PRODUCERS (2013)

PULP Country
1. USA 2. China 3. Canada 4. Brazil * 5. Sweden 6. Finland 7. Japan 8. Russia 9. Indonesia 10. Chile 11. India 12. Germany Other

PAPER 1,000 tons

50,351 18,198 17,073 13,977 11,672 10,237 8,642 7,519 6,710 5,155 4,095 2,636 10,376

Country
1. China 2. USA 3. Japan 4. Germany 5. Sweden 6. South Korea 7. Canada 8. Finland 9. Brazil 10. Indonesia 11. India 12. Italy Other

1,000 tons
102,500 74,375 26,083 22,630 11,417 11,333 10,751 10,694 10,260 10,247 10,242 8,664 90,789

TOTAL WORLD
Source: RISI * Source: Bracelpa

166,641

TOTAL WORLD

399,985

WHAT SHOULD HAPPEN NEXT?

30000

Growth of the Brazilian GDP per Capita

4.6% per year (2000-2030)

25000 20000 USD

15000 10000

5000 0

Worldwide increase in paper consumption: 1.5% per year (2000-2030) Worldwide increase in paper consumption per capita: 1.2% (2000-2030)
Year 2003 2005 Infrastructure Investment (BRL bi) 55 74

Forecast

2008 2014
Source: IMF ; WRI

106 160 (forecast)

7

GROWTH PERSPECTIVE FOR CUNSUMPTION OF PAPER AND BOARDS (2011 2025)

Main BHKP end-uses short fibers Main BSKP end-uses Long fibers

Source: Poyry 2013

8

LONG TERM GROWTH ON MARKET PULP CONSUMPTION (2011-2025)

Source: Poyry 2013

ALMOST 70% OF THE MARKET PULP CONSUMED WILL COME FROM EUCALYPTUS

Source: Poyry 2013

10

GLOBAL WOOD PULP FLOW

ASIA FOCUS

Source: Living Forests Report WWF: Chapter 4

P&P CONSUMPTION AND PRODUCTION

Pulp demand growing Paper produced away from wood supply

Source: Living Forests Report WWF: Chapter 4

COMMITTED TO SUSTAINABILITY
6,7 million ha of forest plantations
2,3 mi ha: pulp and paper sector

PLANTATIONS IN BRAZIL

4,4 mi ha: charcoal, energy, sawnwood

4.3 mi ha preserved areas: (ecological corridors, protected areas surrounding waterstreams)

3,9 million hectares of certified forest plantations:

Mitigate pressure over natural forests Do not compete with agriculture Contribute to restore degraded land Mix of native and planted through mosaics Soil, water and biodiversity conservation Eco-efficiency

13

COMMITTED TO CERTIFICATION
7.2 million hectares certified FSC (3.9 planted florests) 1.3 million hectares certified Cerflor/PEFC

FSC and CERFLOR

Arauco Florestal Arcelormittal Adami Celulose Irani Cenibra CMPC Duratex Eldorado Eucatex Fibria Ibema International Paper Klabin *FSC Lwarcel Masisa Melhoramentos Florestal Norske Orsa Florestal Plantar Rigesa Stora Enso Suzano *Forest Stewardship Council Trombini **Programa Brasileiro de Veracel Certificao Florestal **Cerflor FSC and Cerflor
14
14

MOTIVATION TO GETTING CERTIFIED

MARKET DRIVEN INITIATIVE
Increasing consumer awareness (social and environmentally friendly products) Procurement policies
Public (green buildings, editorial materials) Private

Retailers, manufacturers, publishers, banks

Corporate image (marketing) Risk management Added Value

15

GENERATES HUNDREDS OF THOUSANDS OF JOBS

Industrial Segment Forestry Charcoal Metallurgy Wood Products Furniture Pulp and Paper Total
Source: ABRAF (2013)

Planted Forest Sector Direct 139,614 14,956 196,526 113,418 156,998 621,502 Indirect 596,194 157,036 147,395 85,064 361,073 1.319,792 Forestry Income Effect 365,143 575,797 270,224 155,950 1051,821 2.418,935 Total 1073,951 747,789 614,145 354,431 1569,883 4.360,109 INDIRECT

Industry

DIRECT

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SMALL HOLDERS
Forest Outgrower Schemes current 17% of planted area 12,8 thousand benefited families
500 450 400 350 300 250 200 150 100 50 0 2004 2005
2006 2007

2008

2009

0,43 million hectares in Brazil

2010

2011

TARGET 25-30% in 2017

Source: ABRAF/Bracelpa

17

17

Outgrowers Complements wood supply Reduce needs for land acquisition Generate income Contribute to environmental protection (good practices) Creates jobs e promotes rural development Develops local economies (communities) Can stimulate smallholder certification MARKET THAT IS GROWING COMPANIES SUPPORT CERTIFICTAION OF SMALL HOLDERS NEED FOR SUPPORT FROM THE SYSTEM
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18

SOCIAL DEVELOPMENT
New paradigm for the productive sector
Conflicting relationships Partnership relationships

Engagement Rural development SOCIAL VALUE

Corporate Social Responsibility

Shared Value

Corporate image Conflict management ECONOMIC VALUE

Distributing generated value

Creating social Value

19 19

SOCIAL DEVELOPMENT

Innovation in values

Community engagement Indigenous community Esprito Santo

Engagement with the landless movement- agroforestry project

Partnership with communitary nursery

Rural Territory Development Programme (PDRT) ,Bahia

20 20

POPULATION GROWTH
WILL REQUIRE MORE FOOD/FUEL/ TIMBER AND FIBERS

Source: European Association for Bioindustries, 2012

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PERSPECTIVES WOOD BASED PRODUCTS

PRODUCE MORE WITH LESS

Source: WWF: Living Forest Report

22

POTENTIAL USES OF FIBERS

Industrial Corrosion inhibitors Dust control Specialty lubricants Seals Emissions abatement Transportation Transportation packaging Fuels Oxygenates Anti -freeze Car seats Belts Bumpers Corrosion inhibitors Textiles Carpets Fibers Fabrics Coatings Foam cushions Drapes Lycra Spandex

Safe Food Supply

Food packaging Preservatives Fertilizers Pesticides Beverage bottles Appliances Beverage can coating Vitamins

Communication

Paper products Molded plastics Computer casings Liquid crystal displays Pens Pencils Inks Dyes

Health and Hygiene

Environment

Water chemicals Flocculants Chelators Cleaners & Detergents

Tissue Cosmetics Detergents Pharmaceuticals Suntan lotion Medical -dental products Disinfectants Aspirin

Recreation

Housing
Paints Resins Insulation Cements Coating Varnishes Flame retardants Adhesives Carpeting

Footgear Protective equipment Camera and film Bicycle parts and types Wet suits Tapes/CDs/DVDs Gold equipment Camping gear Boats

Source: Adapted from CEPI/ Poyry

23
23

MULTIPLE USES OF FORESTS

DISTINCT PRODUCTS AND SERVICES
ENVIRONMENTAL SERVICES
WATER BALANCE NUTRIENT CYCLING
CARBON SINK

TIMBER PRODUCTS
SAWN WOOD PANNELS PULP AND PAPER ENERGY SOCIAL INCLUSION

SOIL PROTECTION

Promotes
CULTURAL SERVICES
RECREATION

NON-TIMBER PRODUCTS
FOOD OILS AND RESINS
PHARMACEUTICAL
E N V I R O N E M N TA L BENEFITS

ECOTURISM
RESEARCH

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PERSPECTIVES FOR THE PLANTATIONS SECTOR

Develop a model to expand the forest base, considering the assumption of sustainbale use of land: 22 million ton (2025) Multiple use of forests Increase of outgrowers areas Integrating production and conservation

PULP

14 mlion (2010)

PAPER
13 million (2025) 10 million ton (2010)

PANELS
14 million ton (2025)

9 million ton (2010)

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EXPANSION LEAD BY INVESTMENTS OF THE P&P INDUSTRY OPPORTUNITY TO INCREASE CERTIFICATION

2010 2025

FOREST PLANTATION AREA

7 million hectares

14 million hectares
13 million native preserved (1/0.9)

INCREASE THE AREA TO BE CERTIFIED

Source: Bracelpa, ABIPA, STCP

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FOREST PLANTATIONS

GROWTH IN AREA INCREASED DEMAND NEED FOR SM DEVELOPMENT PERSPECTIVES

TREND

COMMOM AGENDA AND ENGAGEMENT

27

FUTURE WE WANT
BEYOND WHAT WE ALREADY ARE.. WITHIN THE BIOECONOMY CONTEXT...

Market

COMPETITIVE INDUSTRY
COMMITTED WITH SUSTAINABILITY ASPECTS

REPUTATION AND CORPORATIVE VALUE V A L U E

Values

Innovation and technology Products and Processes

Workers

Civil society

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WAYS FORWARD
INNOVATION AND TECHNOLOGY
Products and process

Biotechnology and nanotechnology (more than 5 thousand products) New products and multiple use from forest fibers Innovation in operations Innovation in production Softwares

HOW WILL PEFC COPE?

29

WAYS FORWARD CHALLANGES FOR PEFC

New markets and trends New products and services Advanced technologies (nanotec) Biotechnology (GMOs) Intensification of operations Larger scales Scientific Development

System has to evolve Maintain credibility Broaden the scope vs. focus?

ALIGNED

NEW ASSOCIATION
Structure and some associates

Forest Plantations

Industry

Pulp

Paper

Wood Panel

Energetic forests

Timos

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OUR GOALS
250 million additional hectares of forest plantations will need to be establish by 2050 to supply for the global demand ( Living Forests - WWF, 2012)
Forest plantations can either be good or bad depending upon its management Brazil is a relevant player on this industry and strongly committed to good management certification a tool for that

NEW ASSOCIATION FOUS AND OBJECTIVES Main focus

Strategic/ institutional SUSTAINABILITY
Socioenvironmental responsibility Climate change

Increase competitiveness
INFRASTRUCTURE
Transport Energy Value chain

Commitment Dinamism Innovation

REGULATORY BASIS

Communication and Institutional Relations

MARKET

Agenda with Congress, Parliament and justice Forestry, Environmental, Labour and Tax regulations

Access to the international market and increase of domestic demand Promoting of products
32 32

PARADIGM CHANGE- TREND

A leader should not only be concerned about the life of his business itself, but also with what values his business will add to peoples lives.

Going with this logic, profit will come naturally

Joey Reiman CEO da BrightHouse Author of The path of creating a brighter brand

33

Thank you!
34

Innovation in the field, from Promise to Practice

Presentation by Mike May PEFC Stakeholder Dialogue . Malaysia 2013
August 2013

The great question of the 21st century

Will natural resources become binding constraints for development?

Source: Sten Nilsson

Natural capital and the world economy Resource use efficiency is a must

Global Ecosystem
World Economy
Natural capital provides material inputs

Production Consumption
With a limited sustainable throughput of resources, longterm economic growth requires enhanced resource use efficiency

and absorbs waste outputs

Sustainable consumption and production governance

The great question of the 21st century

rephrased
Will natural resources become binding constraints for development?
Do we have the innovation, skills and technology to radically alter resource use efficiency ?

Are we prepared, as individuals, societies and nations to make the transition to a green economy?
How will nations unite to share knowledge and mainstream innovation policy into the global political agenda?

Rio +20
Forests dialogue recommendations

Mutually reinforcing priorities:

1. Restore 150 million hectares of deforested and degraded lands by 2020. 2. Promote science, technology, innovation and traditional knowledge in order to face forests main challenge: how to turn them productive without destroying them. 3. Zero Net Deforestation by 2020, respecting the rights and knowledge of peoples living in and from the forests and responding to their sustainable development needs.

39

Our Business
FuturaGene Group Structure
440k Ha of proprietary forests

2nd largest eucalyptus pulp producer in the

world (8th largest market pulp producer)

Leader in the South American paper market
Scientific Advisors
Prof. Marc VanMontagu Prof. OdedShoseyov

Market cap: US $3.8 billion (July 2013)

Mr. Shinitiro Oda Dr. Alan Gould

FuturaGene Israel Ltd.

Rehovot, Israel

FuturaGene Brazil Ltd.

Itapetininga, Brazil

FuturaGene Biotechnology China

Shanghai, China

FuturaGene Inc.
Indiana USA

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Resource use efficiancy

Energy consumption

ENERGY MATRIX OF THE BRAZILIAN PULP & PAPER INDUSTRY 2008 1995 1985 1970
20%
Black liquor

40%
Fuel oil

60%
Firewood

80%
Natural gas

100%

Source: Brazilian National Energy Balance, BRACELPA

2 million hectares of planted eucalyptus and pine in Brazil used for paper and pulp production that absorbs 64 million metric tons of CO2 from the atmosphere every year.
Eucalyptus CO2 absorption rate CO2ton/ha
1400 1200
1000

Eucalyptus cycle in Brazil: 7 years Brazil

(5 cycles)

Chile
(3 cycles)

800 600 400

200

USA
(2.7 cycles)

Sweden (1 cycle) Finland (1 cycle)

14

21

28

35

years

Source: Pyry/Brazilian Foundation for Sustainable development

Yield enhanced eucalyptus

Field trials Brazil
3 months 2,4 m 1,3 m

TR-16
43

Control - WT

FuturaGene Brazil
Prototyping and Regulatory Capabilities
Event selection trial
(6 years)

2nd Gen. transgenic trial

(18 months)

Multi-purpose regulatory trial

(17 months)

Event selection trial

(6 years)

New event selection trial

~ 100 events (initiation)

44

FuturaGene Brazil
Event selection trial: 6 years old

45

ENVIRONMENTAL RISK ASSESSMENT

Risk:
Brazil Normative #5
INFORMATION RELATED TO THE GMO

Area of natural occurrence of the GMO parental organism, its ancestors and wild relatives

History of cultivation and use of the parental organism in terms of safety to the environment.

Possible introgressive hybridization with sexually compatible species and on possible selective advantage of the transgene;
Dispersion ability of GMO propagation and reproductive structures beyond cultivation areas, its dispersion mechanisms in air, water and soil; plant pollen viability, potential pollinating agents

Possible effects in relevant indicator organisms (symbionts, predators, pollinators, GMO parasites or competitors) Possible formation of long term reproductive structures in the parental organism; Effects resulting from horizontal transference to soil microbiota Negative and positive effects to target and non-target organisms Changes in the plants ability to add or remove substances from the soil as a result of the introduction of new traits; possible physical and chemical changes to the soil and contamination of adjacent bodies of water

Complete information about the GMO construction techniques, Genetic modification methods used

Genes, expressed characteristics, Genetic inheritance patterns of inserted genes;

Genetic changes introduced in the GMO that may affect its ability to reproduce, survive, disseminate or transfer inserted genes to other organisms

Frequency of crossing of the GMO parental organism, within the same species and with sexually compatible species, listing the species assessed, techniques used and resulting effects Possible changes in biodegradability of the genetically modified plant, compared with the parental genotype

46 Changes in the GMO ability to survive in environments different from the ones occupied by its parental organism 46

Essential criteria for innovation

The sustainable technology toolbox
Essential criteria of new technologies for plantation forestry:

Precise, stable and consistent Minimisation of indirect or negative effects Replicable and scaleable Pro-poor Compatible with conventional breeding and forest management practices Minimal administrative burden Part of the overall water-energy-food nexus Compatible with land use challenges Contributes significantly to avoided deforestation

47

Context of the debate

Public acceptability criteria for GM Trees

FACT-BASED
If modern biotechnology is to stand a chance, three main conditions for public acceptance must be met: utility, low risk, and an assurance that biotechnology is used in a decent way
(GAMBORG AND SANDE FAO, 2010)

PERCEPTION-BASED

UTILITY
Applications Traits Species

RISK
Criteria for assessment Transparency

DECENT USE
ABS Ownership FPIC Public sector R&D

Legend:
ABS: Access & Benefit Sharing FPIC: Free Prior & Informed Consent
48

GM technology an introduction
Biotechnology and Agenda 21
Ch. 16: Environmentally sound management of biotechnology Preamble: Modern biotechnology is a set of techniques for bringing about specific changes in DNA in organisms. By itself, biotechnology cannot resolve all the fundamental problems of environment and development, but it promises to make a significant contribution in enabling the development of, for example, better health care, enhanced food security through sustainable agricultural practices, improved supplies of potable water, more efficient industrial development processes for transforming raw materials, support for sustainable methods of afforestation and reforestation, and detoxification of hazardous wastes.
49

Context of the debate

GM trees: 25 years of testing and dialogue
More than 700 field trials since 1988; EU: 69 trials, 28 species, 32 traits; USA: 708 trials, 37 species, 36 traits; 4 commercial releases: papaya & plum (USA), and insect resistant and salt resistant poplar (China); High impact of public sector Not only commercial targets, but environmental (eg phytoremediation), conservation (eg Dutch elm disease resistance and American Chestnut rescue) Proven technology for containing gene flow and gene stability Proven track record of biosafety and risk assessment

50

Decent Use - equity

Germplasm control: Agriculture versus Forestry Field Crop Biotechnology
Private sector composed of agro-chemical companies that acquired seed and biotechnology companies; Major crop germplasm owned by very limited group of multinationals; Intensive breeding over many years - genetic diversity of many crops is low, tight control on seed; Trait development tightly linked to chemical business.

Forest Sector Biotechnology

Forest sector is highly fragmented, as is germplasm ownership; Diverse range of geographies & outputs dictate diversity of germplasm: bio-economy will reinforce this trend; Many forest companies rely on contract growers social farming germplasm benefits dissipated - potential for impact in rural development is high; Crop is perennial and long term, strong incentive to integrate environmental and social sustainability into business models. Degraded land is used for planting, soil quality requirements are lower than for food crops.

Tree biotechnology
Sustainable intensification

Source: Suzano Pulp & Paper, Bracelpa

52

Tree biotechnology
Part of the Solution not the Problem
Higher yield increases output and lowers industrial footprint Increased demand for increasing human population Higher yield lowers demand on natural forests Genetic technology protects forests

Key Sustainability Indices

Decreased pressure on natural forest

Reduced chemical load

Climate adaptation

Feedstock adaptation for diversified offtakes lowers processing needs

Biotic & Abiotic stress resistance

53

Yield enhancement
Social and environmental impact

Plantation

Mill/refinery

Spared land

Conventional tree varieties

Yield enhanced varieties

Utility of biotech
Protecting against the next catastrophe
Gall Wasp - Leptocybe invasa
First recorded in the Mediterranean region in 2000. Severe injury to young foliage by inducing galls on rapidly growing shoots. Massive attacks can arrest tree growth

2002 2001 2007

2000

5% of forest is plantation; almost 50% of industrial wood1

Mendel, (ISR) Australian Journal of Entomology, 2004, 43: 10113.
1 FAO

International Technical Conference, Agricultural biotechnologies in developing countries Guadalajara, Mexico, 1 4 March 2010. 55

Utility of biotech
GM-mediated Gall wasp control
Susceptible Targeted GM-mediated Resistance

56

The future of tree biotechnology

The bioeconomy
Planted Forest

Biorefinery

Traditional Products
Pulp & paper Lumber

Bio energy
Wood Wood chips Wood pellets

2nd Generation biofuels

Cellulosic ethanol

High value products

FUTURE

Green Chemicals

Alcohol

Wood fiber Compounds

Carbon Fiber

Glass Fiber Products

Bio Plastics & Resins

Platform Chemicals

$62B

$62B

$35B

$19B
57

$8B

$4B

$4B

The future social impact

Current and future plantation governance models

If you can produce more from less, small-holders become stakeholders in the bioeconomy

Development

Today
Wood sourced from own plantations Wood supplied by partners or contract farmers Wood for new bioproduct industries
58

In the future

New Frontiers in Conservation Agriculture in Brazil

Intensification of land use with integrated crop-livestock-forest systems
Supported by Brazils low carbon emission program for agriculture

Source: M APA, 2010 Photos by Votorantin M etais

Integrated Crop-Livestock Systems

Perennial crop (coconut, palm oil, eucalyptus, fruits, etc) Cross bred, heat tolerant Holstein x Zebu cattle African Brachiaria grass + N-fixing legume forage(s)

Integrated Crop-Livestock Systems

Source: Embrapa Cerrados

Conclusions
Our vision for the green growth agenda
The defining characteristics of our world today are the intensity of interconnections and the speed of change; Green growth implementation will be driven by novel partnerships that combine the convening power and outreach of inter- and non-governmental organisations with the innovative power of science and technology and the deployment skills of private sector business; Novel partnerships established would provide new thought leadership around key goals and technology platforms and how to implement them; Innovation, collaboration and governance will be the new pillars of sustainability.

Novel Implementation Partnerships

62

Sustainable forests
The new three pillars

COLLABORATION GOVERNANCE INNOVATION

Source : EMBRAPA
63

Sustainable solutions for global forestry, biofuel and agricultural markets.

Thank You!

Contacts: mike@futuragene.com

http://www.futuragene.com

GM trees
The principle of the precautionary approach

Principle 15 of the Rio Declaration on Environment and Development. In order to protect the environment, the precautionary approach shall be widely applied by States according to their capabilities. Where there are threats of serious or irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing cost-effective measures to prevent environmental degradation. European directive on risk assessment (2000)1: Where action is deemed necessary, measures based on the precautionary principle should be, inter alia: proportional to the chosen level of protection, non-discriminatory in their application consistent with similar measures already taken, based on the examination of the potential benefits and costs of action subject to review, in the light of new scientific data, capable of assigning responsibility for producing the scientific evidence necessary for a more comprehensive risk assessment. Pontifical Academy of Sciences: (Transgenic Plants for Food Security in the Context of Development, May 2009) Prudence needs precaution, but the principal component of prudence is not precaution but prediction.
1 http://www.gdrc.org/u-gov/precaution-4.html

65

Risk
Frequently cited objections to GM trees 1
1 2 3
4
Reduced diversity: Plantations using one or few transgenic clones will contain less landscape-level diversity than is currently found in plantations using species or varieties resulting from traditional tree-breeding. NOT RELATED TO TRANSGENICS Spread of herbicide resistance gene in sexual progeny to trees in environments where those trees are undesirable and where the target herbicide is used, and/or increased weed resistance to target herbicide, and/or increased use of target herbicide arising from use of GMOs with herbicide resistance. EXOTIC PLANTATION SPECIES CAN ONLY BREED WITH THEMSELVES Asexual transfer of genes from GMOs with antibiotic resistance to pathogenic microorganisms, and/or suppression of mycorrhizae and other micro-organisms, arising from use of GMOs with antibiotic resistance. NO SCIENTIFIC BASIS OR RECORD OF TRANSFER Increased resistance of target insect pests, and/ deleterious effects on natural enemies of the target insects, and/or deleterious effects on non-target insects such as butterflies, pollinators and soil microbes, arising from use of GMOs with insect resistanc e. PESTICIDE PROBLEM AVOIDED BY TARGETED GENETIC TECHNOLOGIES, EXACT OPPOSITE IS TRUE 2
Changes to structural integrity , adaptation and pest resistance of trees, rate of decay of dead wood, and soil structure, biology or fertility, arising from use of GMOs with modified lignin chemistry. CONVENTIONAL BREEDING, SUCH TREES VOIDED IN FIELD TRIALS

5 6 7 8 9

Dispersal of transgene to wild or weed populations , with potentially negative impacts, from non-sterile GMO trees, or from those with incomplete or unstable sterility. EXOTIC PLANTATION SPECIES CAN ONLY BREED WITH THEMSELVES Restricted or monopolistic access to advantages, arising from high costs or limited availability of GMO trees .

BUSINESS/DECENT USAGE ISSUE NOT A TECHNOLOGY ISSUE

Reduced biodiversity of organisms dependent on flowers and fruits, arising from use of sterile GMOs.

CONVENTIONAL HYBRID SEED IS NOT FERTILE/FLOWERS ARE STILL VISITED BY BEES

Reduced adaptability to environmental stress, changes to interaction with other organisms, and increased weediness or invasiveness, in GMO trees with new features. SUCH ISSUES TESTED EXTENSIVELY IN FIELD TRIALS
1)UNEP (2007) The Potential Environmental, Cultural and Socio-Economic Impacts of Genetically Modified Trees (Convention on Biological Diversity) Available at: http://www.cbd.int/doc/meetings/sbstta/sbstta-13/information/sbstta-13-inf-06-en.pdf.
2) Source: Nature. 2012 Jul 19;487(7407):362-5.

66

Future Forests and Plantations stakeholder perspectives

MeadWestvaco Corporation - MWV

Multinational packaging company
A global leader in sustainable packaging solutions Majority of packaging is fiber based

All fiber is responsibly sourced Plantations provide over 60% of our fiber
68

Stakeholder perspectives on plantations

Public view is ambiguous
planting one tree is good, planting 1 million trees may raise concerns

Growing awareness over need for global land planning

What land should be used for food, fuel, forests, fiber? Who has the final say in how land is allocated?

Plantations are a critical part of any strategy

69

Looking ahead
Global population will exceed 9 billion by 2050 Food supplies must expand 70% by 2050 Demand for wood and fiber products will increase 250 million hectares of additional plantations will be required to meet manufacturing and bioenergy needs (WWF, Living Forests Report, 2012)

Food, fiber and fuel production will compete intensively for limited land and water resources
70

Solution will require:

A new value proposition for lands with conservation value (example: forests) Consumptive waste reduction Efficient use of natural resources Applied technology improvements Equitable allocation of resources
Effective stakeholder engagement is critical

Examples of Organized Stakeholder Engagement

World Business Council for Sustainable Development (WBCSD)
a business NGO over 200 leading global companies Active forest sector engagement

72

4 work streams

Value Chain
Sustainable procurement Value of fresh & recycled fiber Engaged with WRI, WWF, CGF

Carbon System
Carbon benefits of forests Biomass Carbon neutrality Future of bio-resources for energy

Forest Resources
Forest certification The Forests Dialogue The role of productive forests

Communications Initiative
Awareness & Advocacy Communications planning Influence

 Forest Solutions Groups Leadership Statement on the Value and Future of Forest Certification

Endorsed and led by 26 global companies along the forest products value chain responsible for nearly 40% of annual global forest, paper and packaging sales, the WBCSD Forest Solutions Group seeks to ensure that the supply of independently-verified sustainable wood and other forest products continues to increase to meet growing demand. Inclusive PEFC, SFI and FSC

The Forests Dialogue

Established in 2000 by NGO and Business Leaders
Purpose
Reduce conflict among stakeholders in the forest sector Provide an international platform and process to discuss key SFM and conservation issues Build mutual trust, Achieve an enhanced understanding and commitment to change
75

Priority SFM Issues

REDD+ Benefit Sharing Food, Fuel, Fiber and Forests Genetically Modified Trees Free, Prior, and Informed Consent Investing in Locally Controlled Forestry

Forests and Poverty

Reduction, Rural Livelihoods Intensively Managed Planted Forests Illegal Logging and Forest Governance Forests and Biodiversity Conservation Forest Certification

76

The Food, Fuel, Fiber, and Forests Initiative (4Fs)

Being developed by The Forests Dialogue Current partners:

77

The 4Fs Challenge

Policy Innovation to Enable forestry and farming practices that produce more with less land, water and pollution Encourage new consumption patterns that meet the needs of the poor while eliminating waste and over-consumption by the affluent Reconcile competing claims for land and water for different needs (e.g. food and energy security, biodiversity conservation, carbon sequestration) Ensure that Indigenous peoples can give or withhold their free, prior and informed consent to activities affecting their land and resources Encourage local economies that are green and inclusive

GM Trees
Highly charged issuesome opinions include:
Unacceptable global risk Precautionary principles should be applied Responsible use principles can be applied GM technology cannot be overlooked as an option for addressing the 4 F issue

Two scoping dialogues have taken place Information exchange in the UK

79

For more information regarding The Forests Dialogue:

www.tfd.yale.edu