Concern about illegal logging is widespread. Illegal logging has negative environmental impacts, results in the loss of forest products used by rural communities, creates conflicts, and causes significant losses of tax revenues that could otherwise be used for development activities. In Indonesia, the tax loss from illegal logging in 1998 was estimated at about US$1.5 billion (Palmer 2001), well above the annual public health expenditure of US$900 million and equal to the annual foreign aid budget.¹

The Nature Conservancy (TNC) and World Wide Fund for Nature (WWF) developed the Alliance to Promote Certification and Combat Illegal Logging (hereafter referred to...

The term ‘illegal logging’ is often used to refer to a range of illegal activities affecting the forest and the people who depend on it. It is therefore useful to consider the meaning of this concept.

There are several definitions of illegal forest activities and illegal logging. A clear, practical, and accepted definition of legality is required for each country as basis of market instruments, such as verification of legality, and for law enforcement. There are many challenges in developing such a definition of legality, such as drawing a line between a significant offence and a minor transgression and conflicts...

East Asian markets are the major importers of Indonesian timber products, and they have been largely indifferent to the impacts of their purchases. As a consequence, suppliers exploit weak governance in countries like Indonesia to mine wood through migratory logging and reckless clearing.¹¹

The Alliance, therefore, seeks to transform this trade by supporting an expansion of the market for legally verified and certified products in China and Japan. Complementary to the focus on importing countries are the objectives of building the capacity of Indonesian stakeholders to produce verified and certified timber and to improve forest management by promoting the adoption...

This part of the report serves as a summary of the findings detailed in Parts 1 and 2. Recommendations are also presented and these are highlighted throughout the text. The authors of this report would like to stress that these recommendations are somewhat tentative given the early stage of implementation of the Alliance’s activities. We expect stronger and more detailed conclusions and recommendations to materialise as the Alliance proceeds.

The Alliance has progressed well in some significant areas in its first year. Alliance staff have contributed to international and national policy debates on illegal logging, which could help strengthen market...