Session 1

Finance and Investment safeguards, and use of existing or other legislative instruments

Facilitators: Giacomo Luchetta and James Hewitt


Context and objective

This discussion session focuses on two action areas of FLEGT recognised in the progress report of 2010 to have received relatively little attention, namely ‘Finance and Investment' and ‘Use of other legislative instruments'. The objective of this session is to collect stakeholders' perceptions and their assessment of actions, outputs and outcomes in these two areas.

Finance and Investment. The EU FLEGT Action Plan acknowledges the role that financial institutions can play in preventing illegal logging, by taking into account the social and environmental risks attached to the forestry-related investments that they finance. The discussion will explore the forms of investment that are or should be targeted by FLEGT actions (such as banking loans, advisory services and risk capital), the roles of the different actors involved (such as international financial institutions, export credit agencies and private banks), the actions put forward to prevent illegal logging by public and private entities, including national development cooperation funds, and the results obtained or foreseeable from actions in this policy area.

Other legislation. The EU FLEGT Action Plan notes that existing EU and Member State legal frameworks already include tools to address illegal logging. In particular, the anti-money laundering legislation and CITES are mentioned as examples. During the recent years, European institutions launched and approved other policy initiatives or legislative acts which may affect FLEGT, such as the Raw Materials Initiative and the Accounting and Transparency Directive. After a general introduction, this session aims to explore the linkages and potential synergies between FLEGT and other such acts and policies, assessing mechanisms through which impacts may be achieved, the level of coherence, and the gaps and loopholes that have emerged or are likely to emerge in the next years. 

Main questions

The Evaluation Team will try to take stock of the interventions which have been budgeted, planned and delivered by the EU institutions, the Member States, international organisations, NGOs and private companies in these areas. In addition to a list of actions, stakeholders are requested to provide their views and assessment of the outputs and outcomes triggered by these actions. Particular attention will be devoted to understanding of 'what works or doesn't work, when and with whom', to identify the underlying causal mechanisms. Suggestions about possible avenues for improving the effectiveness of the EU FLEGT Action Plan in these areas will also be collected.

Target audience

FLEGT stakeholders involved in Areas 5 ‘Finance and Investment' and 6 ‘Other legislation'; Member States and EC officials in charge of policies falling within the scope of both FLEGT areas.

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