Review of GLSTF 2023_Global Legal & Sustainable Timber Forum (GLSTF)

The opening ceremony of GLSTF 2023 was officiated by Mr. Ho Iat Seng, Chief Executive of Macao SAR; Mr. Zheng Xincong, Director of the Liaison Office of the Central People's Government in Macao SAR; Mr. Liu Xianfa, Commissioner of the Ministry of Foreign Affairs of the People's Republic of China in Macao SAR; Ms. Rosalie Matondo, Minister of Forestry Economy of the Republic of the Congo; Mr. Lei Wai Nong, Secretary for Economy and Finance of Macao SAR Government; Ms. Sheam Satkuru, Executive Director of International Tropical Timber Organization; Ms. Ivonne Higuero, CITES Secretary General; and some other honored guests.

════ Opening Remarks ════

Mr. Lei Wai Nong, Secretary for Economy and Finance of Macao SAR Government, delivered a welcome speech.

Mr. Li Weinong stated that the success of GLSTF 2023 speaks volumes about Macao’s active exploration and the leading role it plays in sustainable development, all the while demonstrating its strengths as the Best Convention City (Asia). Going forward, Macao will accelerate the cultivation of the new “MICE + industry” and “industry + MICE” patterns, which will drive the development of the Guangdong-Hong Kong-Macao Greater Bay Area and Guangdong-Macao In-depth Co-operation Zone in Hengqin to foster synergy among different industries and create greater business opportunities in these markets.

Ms. Sheam Satkuru, Executive Director of International Tropical Timber Organization, delivered a welcome speech.

Ms. Sheam Satkuru emphasized the sustainable effects of timber industry development on forests. She also recognized the significant contributions made by China, the largest member of the ITTO, to forest conservation.

════ Keynote Addresses ════

Mr. Vincent U, President of the Macao Trade and Investment Promotion Institute (IPIM), presided over the keynote address session.

Ms. Rosalie Matondo, Minister of Forestry Economy of the Republic of the Congo, shared information on the development status of the global timber industry.

Ms. Noraihan Abdul Rahman, Malaysia Timber Council CEO, shared insights on timber industry and sustainable development.

Mr. She Xuebin, Board Chairman & CEO of Nature Home (China) Co. Ltd., shared his views on opportunities and challenges in the global timber industry transformation.

════ High-level Segment ════

Then, Ms. Sheam Satkuru presided over the high-level segment themed “Global Timber Market Recovery under the Unprecedented Great Changing Time”.

Key Message from GLSTF 2023

Forests are critically important to climate change mitigation, biodiversity conservation, and sustainable development. Protecting forest resources and preserving the environment is our common responsibility. When managed sustainably, forests conserve biodiversity, soil and water, filter air, prevent land degradation, and reduce the risk of natural disasters. Meanwhile, timber is a renewable, carbon storing, recyclable, and sustainable material, which has been an indispensable pillar of mankind for thousands of years. When timber is legally and sustainably produced, processed, traded, and used, the industry enhances the value of standing forests, greatly reducing the risk of deforestation, and making a major contribution to the achievement of the sustainable development goals.

In many ways, this is a very difficult and challenging time for the global timber industry, which is a leading employer and contributor to the national economies of many countries. Perhaps for the first time all the major markets of the world are slowing at the same time – weighed under the economic volatility that followed on from the COVID pandemic, the threat of conflicts, trade wars, rising energy prices, climate change, and mounting pressure on resources. However, the potential for timber to act as the cornerstone of modern circular economies gives encouragement that these challenges can be turned into opportunities. A sustainable and resilient timber industry will contribute to wealth creation and support the development of healthy lifestyles, while reducing the risk of climate change and other negative environmental impacts. Timber will also substitute for more energy and carbon intensive products in the building and furniture sectors.

Exploitation of these opportunities and long-term recovery in the global timber industry will depend on the legal and sustainable management of forests and associated supply chains. It requires the development of a strong international network to strengthen cooperation and share knowledge and experience of sustainable timber production and supply. The Global Legal and Sustainable Timber Forum held for the first time in Macau and planned to be held annually into the future, provides the key platform on which to build this global network. In addition, after two days of extensive and in-depth discussion, the following consensus was reached on how to promote the legal and sustainable development of the global timber industry and accelerate its recovery:

Faced with complex and variable threats and challenges, there is an urgent need to establish strong networks and partnerships, built on mutual respect and trust, in support of legal and sustainable forest management and timber supply chains.
Building and improving legal and sustainable timber supply chains are key nature-based solutions.
Supporting and promoting legal and sustainable timber and timber products trade will facilitate a stable, fair, transparent, and predictable environment for the future recovery and growth of the global timber industry.
Creation of Global Legal and Sustainable Timber Forum is necessary to promote cooperation and information exchange between the public and private sectors.
The Global Timber Index (GTI) provides a valuable platform to improve the quality and regularity of timber market information, to encourage greater information exchange between and within the private sector, and thereby enhance the efficiency and effectiveness of policy formulation in relation legal and sustainable trade.
Applying advanced technology, tools, and methods to ensure the legitimacy and sustainability of timber sources, including the implementation of sustainable forest management and digital timber traceability, exploring the establishment and operations of a traceability system based on blockchain technology, and compliance with legal and sustainable timber standards is highly recommended.
Innovative financial mechanisms, such as payments for environmental services, need to be further developed and utilized to increase investment in support of sustainable forest management and green supply chains.
Legal and sustainable timber industrial parks should be established to foster enterprises that will provide models for the wider industry and thereby accelerate the adoption of legal and sustainable best practices and advanced technologies.
The global timber industry needs additional support to adopt advanced technology, machinery, and equipment, thereby accelerating the intelligent and digital development of the global timber industry.

Milestone Significance

As the first global forum under the cooperation framework between ITTO and IPIM, the GLSTF 2023 focuses on strengthening the construction of legal and sustainable tropical timber supply chains, and is of milestone significance:

A significant cooperation output between ITTO and IPIM, and an important initiative to support Macao's green, diversified, and internationalized development.
A global ministerial-level meeting based on the demands of the timber industry, and the first timber-themed forum held in Macao.
A platform for constructive and forward-looking dialogues and exchanges among relevant stakeholders in timber-producing and timber-consuming countries, including government departments, timber enterprises, business associations, research institutions, financial institutions, international organizations, and non-governmental organizations.
A stage for showcasing major cooperation achievements and innovative products in the global timber industry.

Achievements Release

Several international cooperation achievements were released during the GLSTF 2023, thereby building a collaborative and win-win platform for the global timber industry.

The achievements of the Global Timber Index (GTI) were released in Macao
for the first time.

The achievements of the “Research on the Collaborative Operations of the Blockchain-Based Timber Traceability System”, which is an international collaborative research project, were released in Macao for the first time.

Representatives signed the Joint Declaration of Intent (JDoI) for Sustainable Forest Management and Responsible Timber Industry Operations.

Representatives signed the agreement
for Green Finance for Green Supply Chains (GF4GS) Action.

Memorable Moments

════ Main Forum ════

High-Level Segment: Global Timber Market Recovery under the Unprecedented Great Changing Time

Session I: Contributions of Timber Industry to Climate Change Mitigation and Economic & Social Development

Session II: Global Legal and Sustainable Timber Supply Chains

Session III: Global Cooperating and Sharing Platform for the Timber Industry

════ Specialized Sub-forums ════

Four specialized sub-forums were held during the GLSTF 2023, and the outputs are of great significance for promoting the development of the global legal and sustainable timber industry.

Specialized Sub-forum 1: Timber Legality and Sustainability

Ms. Ivonne Higuero, Secretary General of CITES Secretariat, Mr. Thomas Goebel, Secretary General of European Timber Trade Federation, Ms. Noraihan Abdul Rahman, CEO of Malaysia Timber Council, and other industry professionals gathered to discuss topics related to timber legality and sustainability. They shared knowledge and experiences on the application of existing tools and technologies to achieve the goals of the Legal and Sustainable Supply Chain (LSSC), thereby providing references for governments, the private sector, civil society organizations, small and medium-sized enterprises, and local communities to formulate and implement policies, strategies, and action plans for timber legality.

Specialized Sub-forum 2: Sustainable Timber Resources, Markets and Trade

Mr. Christophe Guilhou, Co-Facilitator of the Congo Basin Forest Partnership (CBFP), French Development Agency (AFD), called for funding for the protection of rainforests. Mr. Diego Montiel Oscura, Deputy Manager of Mexico’s Comisión Nacional Forestal (CONAFOR), introduced the Mexican government's initiative to promote industrial afforestation. Additionally, other guests from countries such as China, Gabon, the Democratic Republic of the Congo, and Cameroon presented information on supply and demand, the current status, and future trends of the timber industry, and shared practices for the sustainable management of timber resources.

Specialized Sub-forum 3: Advanced Technology and Machinery for Timber Processing

The sub-forum shared the latest research findings and practical experiences with regard to advanced technology and machinery for timber processing, and highlighted the importance of corporate social responsibility and environmental protection, thereby promoting the sustainable development of the industry. Industry experts discussed topics such as "The Future Development Trends of Woodworking Machinery" and "Development Trends of Wood Processing Technology under the Background of Dual Carbon Goals," which would help global timber enterprises formulate future development strategies and promote the common development of the global timber industry.

Specialized Sub-forum 4: Green Finance and Innovative Facilitating Measures for Green Supply Chains

Mr. Alain Karsenty, Senior researcher at Department of Environment and Society of CIRAD, Mr. Bruno Guay, Advisor at Private Sector Engagement and Carbon Finance of Central African Forest Initiative, and other representatives discussed topics like ecological compensation mechanisms and other financial instruments, as well as green financial cooperation under international cooperation mechanisms, thereby further clarifying that green finance and innovative mechanisms are catalysts and accelerators for the legal and sustainable development of the timber industry. Additionally, the conference showcased the latest achievements and practical experiences of the industry empowered by green finance, in an effort to explore a mechanism for joint construction, sharing, and mutual benefits.

════ Legal & Sustainable Timber Display ════

The Display featured six major product categories: wood materials, wood flooring, wood-based panel, wooden door, wooden furniture, and woodworking machinery. It provided a platform to showcase advanced technologies and products across the entire timber industry chain, as well as to display supply chain services such as finance and certification, thereby providing the timber industry an international exchange and display platform that integrated functions like trade promotion, investment cooperation, innovation aggregation, learning and exchanges, etc.

════ Side Events ════

During the forum, a variety of side events were held, such as B2B matchings, Panel Dialogue on She Power for the Sustainable Development of Global Timber Industry, and Panel Dialogue on Global Forestry Youth Leadership. These events further help establish a diversified communication platform for the industry and facilitated the international cooperation and business opportunities.