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FERN Annual Report 2006

� FERNAnnualReport�006

Inhoud

Foreword 3Introduction 4Who we are 5How we work 6What we do 7 FERNpartners 7Campaign successes in 2006 9 Climatechangeandcarbonoffsetschemes 9 ExportcreditagenciesandTurkey’sIlisuDamproject 9 InfluencingEUpolicyonillegallogging 10 EnvironmentalawarenessinECdevelopmentpolicy 11 Improvingthecredibilityofcertification 11Building for future successes 1� FERNinthepubliceyeandontheweb 1� SupportforaccessioncountriesandnewMemberStates 1� InfluencingEUpolicy 13 EUpolicyondevelopmentco-operationandruraldevelopmentand sustainableforestuse 13What FERN offers to fellow NGOs 15 FERNasfacilitatorandcoordinator 15 Advocacy 15 CapacitybuildinginnewMemberStates 15 PublicaccesstoenvironmentalinformationintheEU 16FERN’s success story 2006 – in summary 17 Exportcreditagencies/tradeandinvestment 17 Illegalloggingandcertification 17 Developmentco-operation 17 Climatechange 18 Europeanforestandbiodiversity 18FERN financial information 19Spreading the word �1 FERNpublicationsin�006 �1Staff and board �4

FERNAnnualReport�006 3

Foreword

ThereportyouhaveinyourhandsisdesignedtogiveyouaninsightintoFERN,anideaofouraimsandachievementsoverthepasttwelvemonths.Thankyouforshowinganinterest inourwork. But letusalsoreturnthecompliment.Wearekeentohearyourviews, as a stakeholder in FERN, and listen to your opinions. What do you think ofFERN?Arewepursuingtherightagendaandarewedoingitintherightway?

Interviews undertaken last year with twenty-two of our stakeholders indicate we aredoingsomethingsright.AmongthoseconsultedwererepresentativesofSouthernandNorthernNGOs,officialsoftheEuropeanCommissionandrepresentativesofnationalgovernments, the forestry industry and the carbon industry. Some comments were sofavourableastomakeusblush:“FERNisahighlyregardedandmuchappreciatedNGO,praised for its dedicated and competent staff, its flexibility and dynamics, its strategicapproach,itslowprofileanditsconnectionsatbothgrassrootsandEU-level.”

Butaswellasfavour,wealsofoundfoodforthought.FERNisarelativelysmallorgani-sation.Whilesomestakeholdersconsiderthisanadvantage,someseeitasaweakness,suggestingwearetoosmall,toolimited,tohaveasignificantimpact.OverthelasttwelvemonthswehavebroadenedourscopeandincreasedtheamountofnetworkingwedointheSouth,inordertobetterrepresentthevoiceoftheSouth.ButsomestakeholdersholdtheviewthatthischangeofpolicyisdilutingourfocusonBrussels.

Ofcoursecampaigningstrategiesarethesortofthingwhichcanalwaysbedebated,withmanydifferentviewsofwhatFERNis,oroughttobe.Wewelcomeyourinputintothesedebates.For many, FERN still remains an enigma: “Their analysis is sharp. But who is behindFERN? How do their positions come about? Who determines them? Who are theirfinanciers?Ihaveneverseentheirannualreport”.Wedonotwishtobeamystery.Wewishyoualltoknowhowwework,understandourstrategiesandcelebrateourachieve-mentswithus.Sowewill continue topubliciseourorganisationat everyopportunity,discussingourmethods,reportingourresultsandsimplytellingourstory.Tothatend,hereitis,ourannualreport,foreveryonewhowantstoreadit.

StanTermeeron behalf of the FERN board

4 FERNAnnualReport�006

Introduction

The world’s forests are under pressure. Logging, mining, agrobusiness, hydropower,cattleranching and the hunger for land are taking their toll on these forests and thelivelihoodofforestpeoplesisbeingeroded.

AtFERNwebelievethatbyunitingtheeffortsofcampaignersacrosstheEuropeanUnionandbyincludingallactorsaffectedbyandaffectingforestrypolicy,wecansuccessfullyalter attitudes and policies and address the direct and underlying causes of forest loss.These issues are complex and call for a complex response: although many of our coreactivities are focused on forests, our remit is much wider. EU aid and trade policies,includingcarbontrading,allhaveadirectimpactonforests,ashavefinancialinstitutions.Inresponse,FERNhasexpandeditsworkbeyondforeststofocusonthewiderEUaidandtradedebate,andspecificallyonexportcreditagenciesandcarbontrading.

Our work must also increase the political and economic space in which to advocate amore balanced society, one capable of true respect for human rights and for environ-mental and social values. We work to understand and advance a community ofinteracting organisations and their political environment: an ecosystem for change.

In�006wehavebeenabletoexploitourpositionasawellrespectedEU-widevoiceonaid, trade and forest issues to effect real change with tangible impacts on the world’sforests and forest peoples. We successfully raised awareness on export credit agenciesattheEU.ThankstoFERN’swork,exportcreditagenciesarenowscrutinisedfortheirapproachtoenvironmentalandsocialissues.

WehavepublicisedthepitfallsofEurope’scarbon-tradingschemeandvoluntarycarbonoffset initiatives.FERNplayedapivotalrole inpublicisingthewaymanycarbonoffsetschemes fail todeliver thepromisedenvironmentalbenefits.FERNhasbecomehighlysoughtafterbythemediaforourexpertiseinthisarea.Wehavecontinuedtoactasthelinchpin forEuropeanadvocacyaround forest issues, spearheadingandcoordinatingahugerangeofcampaigns.Therearemoredetailsonthisyear’ssuccessstoriesbelow.


Who we are

FERNisanon-governmentalorganisation(NGO),createdin1995.Weworktoachievegreaterenvironmentalandsocialjustice,focusingonforestsandforestpeoples’rightsinthepoliciesandpracticesoftheEuropeanUnion.

FERNstandsforForestsandtheEuropeanUnionResourceNetwork

We have seven staff members with our offices in Gloucestershire, UK, and Brussels,Belgium. Between us we offer a broad range of expertise and boast fluency in eightEuropeanlanguages.Weregularlymakeinvestigativevisitstocountriesinvolvedinourcampaigns,attendandfacilitateconferencesandhosttrainingworkshops.

Aboardmadeupofrepresentativesofcivil societyorganisations inEuropeand intheSouthsupervisesourwork.In�006weinvitedrepresentativesfromNGOsinAfricaandCentralAmericatojoinourboard,toensureagreatervoicefromoutsidetheEU.Wearefinancedbyprivatefoundationsandgovernmentfunding.

FERN’smainroleisasa ‘hub’atthecentreofdiverseNGOnetworks.Weseeitasourjobtoanticipateissuesanddebatessothatourresponsecanbewell-informedandtimelywhenissuesemergeinthepublicarena.

We provide our partners with research information, education, training opportunities,meeting and conference facilitation, co-ordination with other groups and advocacy attheEUlevel.

FERNalsoprovides funding to someof itspartners in theSouth. In�007 transfers toorganisations in Ghana, Liberia, Cameroon, Malaysia and Indonesia will finance jointcampaigns on illegal logging. Grassroots involvement from forest communities lies atthebaseofallFERN’swork,informingourcampaigns,researchandinitiativesateverylevel.

Duringthepastyearourunusualapproachandorganicstructurehaveprovedtomakeusastrong,flexibleandresponsiveorganisation.


How we work

FERNworkstoaffectchangebyjoiningforceswithenvironmentalandsocialNGOsfromallovertheworld.Wehavecreatedabroadandvigoroussystemofalliancesinvariouscampaignareas.

Theseinclude:• Exportcreditagencies/tradeandinvestment• Illegalloggingandcertification• Developmentco-operation• Europeanforestandbiodiversitypolicies• Forestpeoplesrights• Climatechange

Typically we approach a campaign by first researching an issue, then building a broadcoalitionmovementofinterestedgroupsandfinallyworkingforchangejointly,providingmutualsupport.At FERN we operate a non-hierarchical structure, respecting the input from all ouremployees,colleagues,andpartners.Weseeteamworkascentraltoourethos.We work closely with our partners, and are committed to, and motivated by, theirconcerns–fromlocally-basedstrugglesforrightstonational,regionalandinternationalcampaignsagainstdestructivepractices.

TheexcellentrelationshipFERNenjoyswithitspartnerscanbeseenineveryjointNGOposition paper, meeting, report or media release co-ordinated by FERN. Throughout�006,FERNcontinuedtoinvestasubstantialamountoftimedeveloping,co-ordinatingandparticipating intheseNGOnetworksthataresocrucial totheoperationofFERNandtotheachievementofchange.


What we do

Manyfactorsinfluenceforestloss,rangingfrominternationalfinancialflows,thetradein timber and government policies. These issues are complex and call for a complexresponse,makingourremitbothbroadanddeep.

FERN works with many NGOs across the world. In 2006 FERN worked specifically with the following NGOs:

BothENDS,NetherlandsCampagnaperlaRiformadellaBancaMondiale,ItalyCentrepourl’environnnementetledeveloppement,CameroonCivicResponse,GhanaClimateandDevelopmentInitiative,UgandaTheCornerHouse,UKDowntoEarth,UKDebtwatch,SpainEnvironmentalFoundationforAfrica,SierraLeoneEuronatura,PortugalForestPeoplesProgramme,UKGlobalWitness,UKInitiativetoKeepHasankeyfAlive,TurkeyInstituteforDevelopmentofAlternativeLiving(IDEAL),MalaysiaNESPON,IndiaProRegenwald,GermanySahabatAlamMalaysia,Malaysia

SaveMyFutureFoundation(SAMFU),LiberiaSustainableDevelopmentInstitute(SDI),LiberiaTelapak,IndonesiaUrgewald,GermanyWorldEconomy,EcologyandDevelopment(WEED),Germany

And the following national or global NGO networks:

ECAWatch,globalTheDurbanGroupforClimateJustice,globalForestWatch,GhanaFriendsoftheEarth,globalGreenpeace,globalJOANGOHutan,MalaysiaTaigaRescueNetwork,borealforestsWorldRainforestMovement,globalGreenActorsforWestAfricaNetwork,WestAfricaGreenDesertMovement,BrazilNationalForumofForestPeoplesandForestWorkers,IndiaWorldWildFundforNature(WWF),global

Liberia CameroonGhana

Brasil

UruguayChile

Costa Rica

USA

Europe Russia

Japan

India

Thailand Philippines

Malaysia

Indonesia

Australia

South Africa

Uganda

Sierra Leone

Turkey

Canada

Liberia CameroonGhana

Brasil

UruguayChile

Costa Rica

USA

Europe Russia

Japan

India

Thailand Philippines

Malaysia

Indonesia

Australia

South Africa

Uganda

Sierra Leone

Turkey

Canada

FERN partners


Poloniny National Park, Slovakia


Campaign successes in 2006

Climate change and carbon offset schemes

Theoverallaimoftheclimatecampaignistoensurethatgovernmentpoliciesandinter-nationalagreementsaddresstherootcausesofclimatechangeanddeforestation.Carbontradingcannotbeasolutiontoavertingclimatechange.Avertingtheclimatecrisismeans,aboveallelse,reducinginvestmentinanduseoffossilfuels.Carbontradingisdesignedtodojusttheopposite:toallowbigfossilfueluserstodelayreductionsbybuyingtheirwayoutoftroubleorbybuildingnewdumps(‘carbonoffsets’suchastreeplantations)to park their carbon in temporarily. Many of these carbon-offset projects furthermorefail to recognise the rightsof local communities, thereby further increasing inequality.FERN’scampaigntoensurethatrealcausesofclimatechangearebeingtackledledtothefollowing successes in �006: The Kyoto Protocol’s Clean Development Mechanism hasyettoapprovetreeplantation‘offset’projectsandanEUlawoncarbontrading(theEULinkingDirective)excludescarbonoffsetsusingtreeplanting.

FERN’sanalysisisincreasinglypickedupbymediaandpolicymakersinEuropeandwetypicallyreceiveseveralmediaenquiriesperweek.Morethan35articlesfromwidelyreadnewspapersandjournalscitingFERNandFERN’sanalysisoftheflawsofcarbonoffsetprojectshavefurtherhelpedexposethebogusnatureofcarboncredits.Toaddressthreatsfromanincreaseddemandforbiofuel,FERNhelpedinitiateaglobalNGO coalition in �006, exposing links between destructive oil palm and sugarcaneplantationexpansion,transportpoliciesandbiofueltargets.Ajointpositiononbiofueliscurrentlybeingdeveloped.

Export credit agencies and Turkey’s Ilisu Dam project

FERN co-ordinates a campaign to reform export credit agencies, the governmentagencieswhichgivefinancialbackingtoprivatesectorinvestmentsabroad.�006sawanimportant success in our campaign over the proposed Ilisu Dam in Turkey. All of the

Osman Baydemir (centre) speaks to MEPs at a seminar in the European Parliament on the Ilisu Dam, May 2006

FERN calls on ECAs to stay out of the Ilisu Dam on Kurdish RojTV, October 2006


threeECAsthatconditionallyapprovedexportcreditapplicationsforthedamareunderimmensepublicandparliamentary scrutiny todeliveron theirpromises regarding theenvironment and human rights. Several European export credit agencies have becomemore accountable and transparent and the European Commission has started to takean active interest in reform of these agencies and has been advocating the campaign’spositionwithintheOECD.

FERNorganisedandhostedvisitsfrompeopleaffectedbythecontroversialIlisuDam,together with local campaigners, to Brussels and other European capitals, as well asorganisinganexpertworkshopintheEuropeanParliament.FERNmemberstookpartinmeetingsinTurkeyaswellasconductingresearchandproducingtopicalbriefingnotes.FERN firmly believes that it has made a significant impact on the political approachto this project through its campaigning. FERN has provided evidence to the EU ofthepotential impactof thisdamon the localpopulationsandhighlighted theneed toimplementchangestotheprojectaspartoftheaccessionprocessofTurkeytotheEU.UsingthemonthlynewsletterEU Forest Watch,FERNdisseminatedimportantinformationon export credit agencies to EU policy makers. FERN also gave presentations to theOECD, the EU and UNEP on EU legislation and transparency, all the time ensuringthestrictapplicationofthefinancialsectorto legislationthatcontributestotheaimofsustainabledevelopment.

Influencing EU policy on illegal logging

FERN’s work to control illegal logging has contributed to the EU adopting a law tocontrolillegaltimberimportsfrompartnercountries.FERN’sworkwithorganisationsinGhana,Cameroon,Indonesia,MalaysiaandLiberiahascreatedamovementforreformaddressingtherootcausesof illegal logging,usingthenewEUlawasa leveragepoint.ExistingandnewlyformedNGOcoalitionsinthesecountrieshaveproducedreportsin�006, published and financed by FERN, highlighting their demands for a partnershipagreementwiththeEUtocontrolillegallogging.Mostimportantly,FERNhasarguedforputtingforestgovernanceratherthanforestlawenforcementattheheartoftheEUillegal loggingdebate.Wehavecampaignedfortheinclusionofsocialcriteria tobe includedasaprimaryconsiderationwhenpoliciesare

Commission/FERN conference on ECAs and sustainabledevelopment, Brussels, June 2006.

European ECA Campaign strategy meeting in Nazzano, Italy,June 2006.


drawnupfortheprocurementoftimberbytheEUandmemberstates.The Dutch, Belgian and Danish governments have now adopted timber procurementpoliciesthatincludesocialcriteria.TheUKgovernmenthastakenthefirststepstodoingthesame.In all its illegal logging and timber procurement work, FERN worked closely with itspartners in Cameroon, Ghana, Liberia, Malaysia and Indonesia towards ensuring thattheirdemandsforforestprotectionandsocialissuesweretakenonboardaspartoftheEU FLEGT (Forest Law Enforcement Governance and Trade) process. Reports on theimpactofillegalloggingonlocalpeopleinGhana,CongoandMalaysiawerepublishedinEnglishand/orFrench.Additionalreportsareinthepipeline.

Environmental awareness in EC development policy

The EU now demands that every Country Strategy Paper, a key document in ECdevelopment co-operation, includes an environmental country analysis, an environ-mentalimpactassessmentandariskassessmentfortheco-operationstrategy.IndigenousrightsaremainstreamedacrossECpoliciesandtheEChasopenedasmallgrantsfundforSouthernNGOs,specificallyonforestsandtheenvironment.FERNco-ordinatedaBrusselsbasedenvironmentalNGOcoalition,whichsuccessfullycampaigned for the public availability of environmental documents of importance todefine EC co-operation strategies, improving EC’s transparency and accountability indefiningpolicyobjectivesforECaid.

Improving the credibility of certification

FERNhasplayedacentralroleinthecampaigntoimprovethewayforestcertificationschemesoperate.In�006FERNtookpartinareviewoftheForestStewardshipCouncil’s(FSC) policies towards large plantations. Four controversial certificates are beingscrutinizedandtheFSCisimplementingrecommendationstoimprovetheircertificationprocess.

FERN Advocacy Training, Liberia, October 2006.

Training in Burkina Faso, January 2006

1� FERNAnnualReport�006

Building for future successes

FERN in the public eye and on the web

FERNanalysisandresearchisregularlyreferredtoinarticlesinthewrittenpress,radioandtelevision,suchastheBBC’sFiveLivereport‘TradingTrees’,TheGuardian,FinancialTimes and carbon analyst Point Carbon’s Market News. FERN also works, with otherorganisations, to produce high profile briefings and reports. FERN staff is regularlyinvitedtoattendorprovidekeynotespeechesatconferencesorworkshops,suchasattheOECDRoundTablemeetingon illegal logging, theAnnualAssemblyof theEuropeanPulp and Paper Industry and the Council Working Group on Export Credits. FERNcontributedsignificantly tomediacoverageonthedrawbacksofcarbon-offsetprojectsparticularlyinUgandaandIndia.Naturally, grassroots activity also takes place through electronic communications andduring�006,FERNdevelopedinassociationwithFERNpartnersinCameroon,Ghana,Indonesia, Liberia, Malaysia and Europe, an illegal logging website, with the aim ofenabling formaland informaldiscussionson forestgovernance in thesecountries.Youcanfindthiswebsiteat:www.loggingoff.infoDuring�006,FERNreceived116newsubscriptionstoitsnewlyredesignednewsletter,EUForestWatch,bringingthetotalnumberofsubscribersto1,�00.TheFERNwebsitehadanaverageof16,466visitspermonth,comparedwith9,863 in�004 and 11,671 in �005. Our specific “Sinkswatch” website has catered for the hugeinterestinthecampaignovercarbonoffsetschemes.Promotingpublicaccesstoenvironmentalinformation,publicparticipationinenviron-mental decision-making and access to justice through the Aarhus Convention andtransposing legislation are key elements of FERN’s activities. In �006 FERN produceda practical guide for campaigners on how to use the Aarhus Convention (currently inprint).

Support for accession countries and new Member States

FERN has put emphasis into reaching out to civil society organisations in accessioncountries. Over the past two years, FERN has developed a close working relationshipwithanetworkof localNGOsinSoutheastAnatolia,Turkey,puttingtheminconstantandclosecontactwithNGOsparticipatingintheEuropeanECAReformCampaignco-ordinatedbyFERN.FERNhascontinuedtobuildandstrengthencontactswithNGOsinthenewEUMemberStates.AdatabaseofNGOsinterestedinEUpoliciesrelatedtoforestswascreatedandkeepstheseNGOsinformedofnewdevelopments.Inturn,NGOsinthenewMemberStatesinformFERNofnewdevelopmentsintheircountryandaboutproblemswiththeimplementationofEU legislation. InMarchandOctober�006,during twoworkshopswith Eastern European NGOs and Commission officials, joint actions were developedbetweenFERNandtheNGOsandbetweentheCommissionandtheNGOs.DuringtheseworkshopstopicssuchastheEUHabitatsDirective,EUForestFocusRegulationandthe

www.loggingoff.info


RuralDevelopmentRegulationwerediscussed.InthiscontextFERNpublishedaGuideforEuropeanNGOs‘FundingEurope’sForests’onhowtomakeuseofEUlegislationforforestprotectioninDecember�005andissuedbriefingnotesonthestateoftheforestindifferentnewEUMemberStatesandtheproblemstheyfaceintheforestsenteringtheEU.FERNlentitssupporttoNGOsintheothernewMemberStatesandaccessioncountriesthrough briefing notes, meetings, and the publishing of the FERN-TRN booklet: The EU’s impact on forests – A quick guide to the basics of lobbying,inordertohelpNGOsinthesecountriesdeveloptheirknowledgeof theEU.This includedinformingNGOsonthemisuseofEUsubsidiesandabriefingnoteonhowtheEUfailstomeetEUtargetsonbiodiversity.

Influencing EU policy

Asoneof themajoreconomicandpoliticalbodies, theEUplaysa crucial roleon theworldstage.FERNiscommittedtosupportingtheworkandinputofitsglobalpartnersbyensuringitwieldsitsinfluencewhereverpossiblewithinthiskeyinstitution.One overarching concern of FERN is ensuring that the EC aid programme integratesenvironmental considerations in linewithECdevelopmentpolicy.Specifically,FERN’sEC Forest Platform worked for the integration of natural resources issues and therecognitionof therightsof localcommunitiesand indigenouspeoples into theECaidcountryco-operationstrategiesandthethematicprogrammesforECexternalrelations.FERN is constantly highlighting gender and poverty issues with regard to forests andforestry in FERN’s development campaign activities. For example, the gender link hasbeenemphasisedinourdocumentsregardingECaidandajointcampaignwithgenderfocusedNGOsregardingmainstreamingandtransparencyintheECdevelopmentpolicystartedduringthesecondhalfof�006.

EU policy on development co-operation and rural development and sustainable forest use

FERNwasextremelyactivein�006onseveralfrontswithregardtoruraldevelopmentand sustainable forest use. For example, it was part of the Steering Committee for theIUCN Conference on Biodiversity and European Development Co-operation, in Paris,September �006, where the parameters for the inclusion of nature and biodiversityconservationissuesinECdevelopmentco-operationwereoutlined.FERNalsopartici-patedintheconsultationsontheThematic programme for the environment and natural resources and on theDevelopment Co-operation Instrument (DCI), and published threebriefing notes exposingkey challenges for biodiversity conservation in EC aid policiesandprogrammes.

InthepasttherehasbeensignificantmisuseoffundsforforestmeasuresundertheRuralDevelopmentRegulationthatallowsforthefinancingofEuropeanforests.Thereisaneedtoensurethatthiswillchangeandmoreemphasiswillbeputontheenvironmentalvalueof forests.FERNhasworkedhardateducating theCommission,Parliamentariansand

“Offset credits are

an imaginary commodity created by deducting

what you hope happens from

what you guess would have happened.”

Dan Welsh


NGOsonthisissue,throughbriefingnotes,areportonthemisuseofEUfunds,face-to-facemeetingsanditsnewsletterEU Forest Watch.FERN co-ordinated NGO networks in Europe and in the South to prepare materialto support an effective economic, social and environmental EC development policy.The new revised EU development policy recognises the importance of environmentalmainstreamingintoallEUco-operationprogrammesandprojects.In its submissions and other communications with the EU, FERN has highlightedconcerns about the need to promote independent, third-party certification of forestproducts entering the EU market, so as to ensure the highest standards of nature andbiodiversityconservationintimbertrade.DocumentationhasbeenprovidedtotheUKCentralPointofExpertise(CPET)processand FERN participated in the Forest Stewardship Council (FSC) plantations policyreviewworkinggrouptoimproveitsstandard.FERNalsofacilitatedandhostedvisitsofNGOsfromAustraliaandMalaysiatopresenttheirconcernstotherelevantpeopleintheCommissionandParliamentaswellasinindividualMemberStates.

“It is particularly

important to empower poor people, local communities

and indigenous peoples to

have control over natural

resources and environmental

assets.”

Conclusion of IUCN conference

on biodiversity and European

development co-operation, Paris, September 2006


What FERN offers to fellow NGOs

FERNoffersitspartnerNGOssupporttopresenttheirconcernsatEUleveland,whererequired, training, communicationand informationacrossa rangeofcampaign issues.Withitssolidbaseofresearch,networking,debatesandadvocacy,FERNoffersacompre-hensivenetworkofsupport.

FERN as facilitator and coordinator

FERN’sapproachistobuildcoalitionsbetweenNGOsinEUMemberStatesandbeyond.TheorganisationishighlyrespectedforitsworkfacilitatingseveralNGOnetworks.Everyyear FERN brings together around sixty-five representatives for the Forest MovementEurope network meeting (FME). In �006 we met in Slovakia to share our views,informationanddiscusswaystomoveforward.FERNalsohostsfourdifferentformalandinformalnetworks(onexportcreditagencies,illegal logging, forest certification and EC aid) and facilitates the Durban Group onClimateJustice.FERN’sstrongcontactswithsocialmovementsandenvironmentalorgan-isationsintheSouthhavealwaysbeenacrucialaspectofthestrongnetworkingfacilityitenjoyswithinNorthernnon-governmentalorganisations.FellowNGOsregularlyseekFERN’sadviceonhowtoapproachcampaigningatEUlevel.During�006FERN(co-)organisedNGOeducationalandstrategymeetingsincludingastrategymeetingof theEuropeanECAReformCampaign,(Italy, June);aneducationalandstrategymeetingforEuropeanforestcampaigners(Brussels,MarchandOctober)ameetingforforestcampaignersonillegallogging(Munich,December);meetingsonFSCcertificationandtheFSCplantationspolicyreview(Bonn,August);meetingsontheEUBiofuelsDirective(Bonn,October).

Advocacy

Further support was provided through a training project in advocacy. Over �0 NGOsacrossWestAfricaattendedtwoadvocacyworkshops,oneinLiberiainOctoberandoneinTogoinNovember,aimedatenablingNGOstoeffectivelyinformnationalandinterna-tionalpoliciesandprojects.Atoolkittobeusedinfuturetrainingandasaself-standingguidewasproducedinEnglishandFrenchandplanswerelaidforthestrengtheningofanetworkofWestAfricanenvironmentalNGOs,GAWA(GreenActorsofWestAfrica).

Capacity building in new Member States

FERNworkedwithNGOsinnewMemberStatestobuildtheircapacitiestoeffectivelyuseEUlegislationtoprotectforestbiodiversityintheircountries.Thiswasdonethroughthe organisation of workshops and trainings, and included an NGO training on ‘HowbesttousetheEUtoprotectEurope’sforests’(Brussels,March),aworkshopontheRural


Development Regulation (Brussels, October), the co-ordination of the annual meetingoftheForestMovementEurope–hostedbyWOLF,aSlovakianNGOfocusingonforestprotection(Slovakia,April)andanupdatedwebsiteonEUForests includinganonlinedatabaseofEuropeanNGOsworkingonforest.In addition, a guide for forest campaigners on ‘How to use the Rural DevelopmentRegulation at national level’ (produced and printed towards the end of �005) wasdistributedthroughout�006aswereseveralbriefingnotesandtheFERN-TRNbookletcalledThe EU’s impact on forests – A quick guide to the basics of EU lobbying.

Public access to environmental information in the EU

AnewEUDirectiveonPublicAccesstoInformationprovidesNGOswithopportunitiestoscrutinisetheactivitiesoftheEU.FERNhasworkedcloselywithotherNGOstoassessanddocument thepotentialand limitationsof thisnewDirectiveaswell as informingMembersoftheEuropeanParliamentandnationalParliamentsaboutexperienceNGOshavegainedfromapplyingthenewtransparencylegislation.Inaddition,FERNproduceda practical guide for campaigners on how to use the new legislation to better accessinformationinandfromtheEC.

FERN Advocacy Workshop, Liberia, October 2006


FERN’s success story 2006 – in summary

Export credit agencies / trade and investment

• ExportcreditagenciesarenowroutinelydiscussedbyEUInstitutions.InJune�006theEuropeanCommissionhosteditsfirstconferenceonexportcreditsandsustainabledevelopment.Theconferencewasco-organisedbyFERNandover-booked.

• EU-based export credit agencies fall under new binding legislation on access toenvironmental information. This has led to a successful EU wide campaign, co-ordinatedbyFERN,togetaccesstopreviously‘secret’informationheldbyECAs.

• AbooktomapinvestmentflowsandtherolesofdifferentactorswascommissionedbyFERN. It isexpected that thisbookbyKavaljitSingh(‘Why Investment Matters. The political economy of international investments’)willimprovetheefficiencyofmanydifferent campaigns, including those focusing on ECAs, Multilateral DevelopmentBanks,privatebanks,theWorldTradeOrganisationandotherfinancialinstitutions.

Illegal logging and certification

• Creation of a movement to address the root causes of illegal logging with partnersin Liberia, Ghana, Cameroon, Malaysia and Indonesia. NGO coalitions in thesecountries have produced well-received reports highlighting their demands for apartnershipagreementwiththeEUtocontrolillegallogging.

• General acceptance that partnership agreements between the EU and a timberproducing country cannot be accepted without a proper consultation process withcivilsocietygroups.

• FERN has led an NGO coalition pressing for improvements within the ForestStewardshipCouncil,includingwithintheareaofthecertificationbodies’performanceandtheadoptionofanewFSCplantationpolicy.

Development co-operation

• TheEUnowdemandsthateveryCountryStrategyPaperincludesanenvironmentalcountryanalysis,anenvironmentalimpactassessmentandariskassessmentfortheco-operationstrategy.IndigenousrightsaremainstreamedacrossEUpoliciesandtheEChasopenedasmallgrantsfundforSouthernNGOs,specificallyonforestsandtheenvironment.

• FERNco-ordinatedaBrusselsbasedenvironmentalNGOcoalition,whichsuccessfullycampaignedforthepublicavailabilityofenvironmentaldocumentsofimportancetodefineECco-operationstrategies,improvingEC’stransparencyandaccountabilityindefiningpolicyobjectivesforECaid.

At least 50% of tropical

timber imports into the EU are illegally

sourced.


Climate change

• FERNhelpedcreateaglobalNGOcoalitioncampaigningtohighlightthesocialandenvironmentalimpactsofoilpalmandsugar-caneplantationsforagrofuelproduction,transportissuesandGMOs.Ajointpositiononbio-energy,andspecificallybiofuels,iscurrentlybeingdevelopedandwillbepublishedbytheendof�007.

• FERN has ensured that the EU remains convinced of the need to exclude carbon‘offset’ projects that involve tree planting from the EU’s Emission Trading Scheme(ETS).

• FERN’scriticalanalysisoftheflawsofcarbonoffsetschemesareincreasinglysharedbydecision-makersandopinion-formers.Thelargemajorityofindependentarticlesavailableonlineconcerningcarbonoffsettinginthelasttwoyearshavementionedtheshortcomingsandflawsofsuchschemesoverthepossiblebenefitsoftenclaimed.

European forest and biodiversity

• CreationofacoalitionofEuropeanNGOstoredirectEUfundstowardssustainableforest management and away from ‘business as usual’ practices. The coalition hasbeeneffectiveinchangingthenationalruraldevelopmentplansinHungaryandhaslodgedcomplaintsaboutplansinFinland,RomaniaandBulgaria.

• Central and Eastern European NGOs are increasingly aware of EU legislation toprotecttheirforestswithguidanceandsupportfromFERN.“In general,

funding may be rated as highly diversified: EU,

government agencies, private

foundations and other

NGOs. It may be observed

that even the sources for

core funding are diversified. This clearly is a guarantee of independence

of the organisation.”

2004 DG Environment Audit


FERN financial information

Currency Euro’s 2006

Income

Generalprojectsreceipts 354,458Corefunding ��,67�Agentsmoneyreceived 1��,310Contributiontostudies ��,965Reimbursements 5,910Incomefromothersources 1,570Bankinterestreceived 6,497

736,380

Expenditure

Salaries �85,159Travel/meetings 79,917Consultants 50,1�4Printingandpublications 43,345Post/telephone/fax 19,79�Officesupply �,150Officesrentandcharges ��,605Computers,maintenance&websitehosting �0,�79Documents,inclrentofphotocopier 7,311Agentmoneyspaid 158,998Financialaudit-accountancy 9,489Officeandstaffinsurance 1,989Taxandlegaldocuments 1,309Miscellanous 1,908Bankcharges,interestpaid,exchangeloss 3,474

707,849

Balance carried forward 28,531

2006 expenditure per campaign

CoreactivitiesEuropeanforestsandbiodiversity

Developmentco-operationExportcredit

agenciesClimatechangeIllegallogging

andcertification

■

■

■

■

■

■

�0 FERNAnnualReport�006

Logs from the former OTC concession with guard at Buchanan Harbour, Liberia, October 2006

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Spreading the wordFERN publications in 2006

FERN reports in 2006 (by date)

Provoking change – A toolkit for African NGOs,December 2006ThisAdvocacyToolkitisforlocalandnationalNGOs,butspecificallyforthosebasedinWestAfrica,asthecasestudiesandbackgroundinformationarefocusedonthisregion.ThistoolkitwasproducedattherequestofanetworkofenvironmentalNGOsinWestAfrica:theGreenActorsofWestAfrica(GAWA).DocumentinEnglishandFrench

Liberia’s forestry law in an international context – Reasons for concern,November 2006AnFPP-FERNanalysis,supportedbyFERN,oftheLiberianForestryLawwithinthecontextofinternationalhumanrightsandenvironmentallaw.ThereportrecommendsretainingthecurrentmoratoriumontimberexportationuntilissuessuchaslandtenureandcommunityrightshavebeenclearlydefinedandsafeguardsareinplacetoensurethatincomefromloggingwillbenefitthepeopleofLiberia.

EU subsidies for forestry practices in the 1990s – How EU taxpayers money gets lost in subsidising the forestry sector, October 2006ThisFERN-TRNreportexaminestheallocationofpublicfundingtoforestryprogrammeswithinEurope.Europe’sforestsreceivehugesubsidies.In13countriesassessed,over8.6billionEURofpublicfundswerespentonforestryprogrammesduringtheperiod1990-1999.

Carbon Trading: A Critical Conversation on Climate Change, Privatisation and Power, October 2006ThisbookproducedbytheDagHammarskjoldFoundationandwrittenbytheDurbanGroupexposestheflawsofcarbontrading.IndetailedcasestudiesfromnineThirdWorldcountries,thebookshowshowcarbonoffsetprojectssuchasthosepromotedundertheKyotoProtocol’sCleanDevelopmentMechanism(CDM)havehadadetrimentalimpactonlocalcommunities.Atthesametime,theyprolongindustrialisedcountries’excessivepollutionoftheatmosphere.

The EU’s impact on forests – A quick guide to the basics of EU lobbying, September 2006ThisbookletisasummaryofFERNandTRN’spublication:‘The EU’s impact on forests: A practical guide to campaigning’.ItprovidesanoverviewofthekeypointsyouneedtoknowwhenstartingacampaignatEUlevel.

Series of reports looking at forest governance from an NGO perspectiveThisseriesprovidesconstructiveinputtothedevelopmentofvoluntarypartnershipagreementstocontrolillegalwood.Forest governance in Malaysia, recommendations for a VPA, September 2006AvailableinEnglishForest Governance in DRC, recommendations for a VPA, June 2006AvailableinEnglishandFrenchForest Governance in Ghana, recommendations for a VPA, June 2006AvailableinEnglish

The Privatisation of Law, April 2006InvestmentcontractsgoverninginfrastructureprojectsbetweenStatesandmultinationalenterprises(MNEs),particularlyfortheextractiveindustriesindevelopingcountries,arebringingaboutprofoundchangesintheinternationallegalorderthroughtheirconflationofpublicandprivateneeds.Thisreportexplainsindetailhow.

FERN and WWF submission to CPET, February 2006FERNandWWFpresentedtheirfindingsontheUKGovernment’sassessmentofforestcertificationschemes,carriedoutbyCPET.ThereportincludesrecommendationsforimprovingtheCPETcriteria.

FERN submission to UK Parliamentary Environmental Audit Committee, January 2006FERN’ssubmissiononsustainabletimberandgovernmentprocurementtotheUK’sparliamentaryselectcommittee

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FERN briefing notes in 2006 (by topic)

Illegal logging

The Voluntary Partnership Agreement in Cameroon: Making the Point, December 2006Briefingnotenumber7oftheECForestPlatformCameroonanalysingcivilsocietyinvolvementinthediscussionaroundtheEU-CameroonVoluntaryPartnershipAgreementonForestLawEnforcement,GovernanceandTrade(FLEGT).Authors:EdithAbilogo&SymphorienAzantsaDocumentinFrench

Apakah FLEGT SP itu? November 2006FERN’sECForestPlatformBriefingNotebyCAPPA,YKR,TelapakandPSHK-ODAontheimplementationoftheFLEGTSupportProjectinJambi,Indonesia.DocumentinBahasaIndonesian.

On Shaky Ground: The involvement of civil society in the preparatory stage of the FLEGT support project, October 2006TelapakandFERNbriefingnoteontheimplementationoftheFLEGTsupportprojectinIndonesia.ThisEC-fundedprojectaimstotackleillegalloggingandpromotetheroleofforestsinthesustainabledevelopmentofIndonesia.

Export credit agencies (ECAs)

The Ilisu Dam Project: Europe’s money would move Turkey away from the acquis communautaire, September 2006BriefingnoteonthreeEuropeanexportcreditagenciesconsideringtofinanceoneoftheworld’smostcontroversialinfrastructureprojects.TheprojectutterlyfailstomeetEUsocialandenvironmentalstandards–therebymovingaccessioncandidateTurkeyawayfromtheEUacquis.

ECAs and the Licence to Finance: Consultation, Participation and the OECD’s Recommendation on Common Approaches, September 2006ThispaperbyNickHildyardoftheCornerHousegivesrecommendationsonhowtoaddressdeficienciesincurrentECApolicywithregardtoconsultationandparticipationandarguesthataffectedcommunitiesandindigenouspeoplesmustberecognizedasrightsholdersinthedecision-makingprocess.

European forests and biodiversity

Rural Development Regulation fails to meet EU targets, November 2006TheenvironmentalqualityandhealthofEuropeanforestsisdeclining,andanincreasingnumberofforest-dependentspeciesarenowendangeredasaresultofpoorforestrypractices.However,thenewRuralDevelopmentRegulationfor�007-�013,whichcouldbeusedtohelppreventthisbiodiversityloss,lookssettomissthemark,asshownbyresearchinthisFERN-TRNbriefingnote.

How EU taxpayers money gets lost in subsidising the forestry sector, October 2006Europe’sforestsreceivehugesubsidies.In13countriesassessed,over8.6billionEURofpublicfundswerespentonforestryprogrammesduringtheperiod1990-1999.ThisbriefingexaminestheallocationofpublicfundingtoforestryprogrammeswithinEurope.ThisbriefingnoteisasummaryoftheFERN-TRNreport:EU subsidies for forestry practices during the 1990s

Forests of the Czech Republic, August 2006Thisbriefingnote,onforestsoftheCzechRepublic,ispartoftheseriesofbriefingnotesabouttheforestsituationinthenewMemberStates.Authors:MichalRezek–FSC Working Group Czech Republic,ZuzanaStroufova–Hnuti DUHA (Friends of the Earth Czech Republic),JaromirBlaha–Hnuti DUHA (Friends of the Earth Czech Republic).

Forests of Estonia, May 2006Thisbriefingnote,onforestsofEstonia,ispartoftheseriesofbriefingnotesabouttheforestsituationinthenewMemberStates.Author:JaanParn,EstonianGreenMovement.

EC development aid

Court of Auditor’s Report: The environmental aspects of the Commission’s development co-operation, September 2006ThisbriefingnotesummarisestheEuropeanCourtofAuditors’findingsonthelackofenvironmentalprotectionintoprojectsdealingwithco-operationbetweentheEuropeanCommunityanddevelopingcountries.Thefindingsofthislatestreportarenotnewanddetailthelimitedsuccessofattemptstotackletheproblem.ThereportconcludeswitharecommendationthattheCommissionshouldestablishacomprehensiveenvironmentalstrategyforitsdevelopmentaid.DocumentinEnglishandFrench


Integrating environmental issues in the next round of co-operation agreements between the EU and ACP countries, July 2006FERNandICCObriefingnotetofacilitatelobbyingbycivilsocietyorganisationswantingtoadvocatetheintegrationofenvironmentalissuesintothenextroundofco-operationagreementsbetweentheEuropeanUnionandAfrican,CaribbeanandPacificcountries.DocumentinEnglishandFrench

Towards a new EU-Cameroon co-operation policy, June 2006Briefingnotenumber6oftheECForestPlatformCameroonanalysingthechangesandchallengesofthenewEU-Cameroonco-operationagreement.Author:BertrandB.NdongoDocumentinFrench

Information on the Programming of EC Aid for ACP countries: Will the EU deliver on its promises? March 2006BriefingnotepreparedbytheConcordCotonouWorkingGroup,whichincludesFERN,tofacilitatethelobbyingandparticipationofcivilsocietyorganisationsintheEuropeanUnionandAfrican,CaribbeanandPacificcountriesintheforthcomingprocessesofECAidProgramming.

The Congo Basin Forest Partnership (CBFP), February 2006Briefingnotenumber5oftheECForestPlatformCameroonoutliningtheobjectivesoftheCBFPandthepossibilitiesforcivilsocietyintheregion.Author:MarieMadeleineBassalang.DocumentinFrench

Climate change

10 Things you should know about tree offsets, July 2006Factsheetoutliningthe10mainshortcomingsofcarbonoffsetcreditsfromtreeplantingprojects.ThefactsheetwaspublishedintheJuly�006SpecialNewInternationalistmagazineissueoncarbonoffsetschemes.

Other in 2006

Online database on the FERN website with European NGOs working on forest issues: Who is Who in the Forest Movement online directory, August 2006

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Staff and board

StaffIola Leal Riesco–Developmentco-operation,ECforestplatformandillegalloggingtel:+3��7333653,[email protected]ëlle Dubois–Financeofficertel:+3��735�500,[email protected] Neyer–Tradeandinvestmentandexportcreditagenciestel:+3��74��436,[email protected] Kill–Climatechange,SinksWatchtel:+441608651864,[email protected] Krul–Forestpolicyandbiodiversityissuestel:+3��7330814,[email protected] Manning–GeneralinformationandUKadministrationtel:+44160865�895,[email protected] Ozinga–Tradeandinvestmentandillegalloggingtel:+44160865�895,[email protected]

BoardStan Termeer(Netherlands)–ChairPersonGemma Boetekees(Netherlands)–SecretaryMonica Ardbäck(Sweden)–TreasurerElisa Peter(France)–MemberKyeretwie Opoku(Ghana)–Membersince�007Sian Pettman(UnitedKingdom)–Member

FERN would like to thank all of its funders who so generously supported our work during 2006C.S.MottFoundation,USDepartmentforInternationalDevelopment,UnitedKingdomDGEnvironmentoftheEuropeanCommissionDutchMinistryofAgriculture,NatureandFoodQuality,theNetherlandsDutchMinistryofForeignAffairsforDevelopmentandCo-operation,theNetherlandsDutchMinistryofHousing,SpatialPlanningandtheEnvironment,theNetherlandsGrassrootsFoundation,GermanyInterchurchOrganisationforDevelopmentCo-operation(ICCO),theNetherlandsNaturalResourcesInternationalLimited,UnitedKingdomNetherlandsCommitteeforIUCN,theNetherlandsOxfam-Novib,theNetherlandsSigridRausingTrust,UnitedKingdomSwedishSocietyforNatureConservation,SwedenTaigaRescueNetwork,SwedenWallaceGlobalFund,US


EditedbyRuthHarlandandLucydeSouzaDesignedby:DaanvanBeekPrintedon:BiotopPhotoscover:LeontienKrul(FERN),Inserts:IolaLealRiesco(FERN),CarolYoung,LeontienKrul(FERN),BrazilAdventureInternational,

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