Study on the Development and Marketing of Non-Market Forest Products and Services DG AGRI, Study Contract No: 30-CE-0162979/00-21 Study Report - Annexes -November 2008- Disclaimer This report was produced under contract from the European Commission. It solely reflects the views of the authors, and it should not be interpreted as a position of the European Commission. Neither the European Commission, nor any person acting on its behalf can be held responsible for the use of this document or of the information contained within. Prepared by: European Forest Institute (EFIMED) Robert Mavsar, Sabaheta Ramčilović, Marc Palahí University of Natural Resources and Applied Life Sciences (BOKU) Gerhard Weiss, Ewald Rametsteiner, Saana Tykkä Alterra Rob van Apeldoorn, Jan Vreke, Martijn van Wijk Confederation of European Forest Owners (CEPF) Gerben Janse External experts Irina Prokofieva (Forest Technology Center of Catalonia) Mika Rekola & Jari Kuuluvainen (University of Helsinki) Study on the Development and Marketing of Non-Market Forest Products and Services I | Page Contents ANNEX 1. INITIAL EXPERT INTERVIEWS 1 A NNEX 2. COMMON INTERVIEW GUIDE FOR THE CASE STUDY DATA COLLECTION 2 A NNEX 3. CLASSIFICATION OF ECOSYSTEM SERVICES 3 A NNEX 4. CHARACTERISATION OF FOREST GOODS AND SERVICES (ACCORDING TO MEA 2005) 4 A NNEX 5. COMPARISON OF DIFFERENT FOREST GOODS AND SERVICES CLASSIFICATIONS 7 A NNEX 6. LISTS OF MARKET AND NON-MARKET FOREST GOODS AND SERVICES 8 A NNEX 7. IMPORTANCE OF DIFFERENT FOREST SERVICES IN THE EU-27 COUNTRIES 13 A NNEX 8. SUMMARY OF THE FORVALUE QUESTIONNAIRE RESULTS 17 A NNEX 9. FOREST MULTIPLE USES - COMPATIBILITY MATRIX 29 A NNEX 10. PUBLIC ACCESS TO FORESTS AND PUBLIC USE OF NON-WOOD PRODUCTS NWFP 31 A NNEX 11. QUESTIONNAIRE CONCERNING THE IMPORTANCE OF FOREST GOODS AND SERVICES AND EXISTING FINANCING MECHANISM 33 A NNEX 12. THE CONCEPT OF ECONOMIC VALUE 43 A NNEX 13. VALUATION APPROACHES 44 A NNEX 14. GENERAL VALUE TYPOLOGY 45 A NNEX 15. ECONOMIC VALUATION TECHNIQUES 46 A NNEX 16. VALUATION TECHNIQUES AND FOREST GOODS AND SERVICES 47 A NNEX 17. KEY STEPS IN THE VALUATION OF ECOSYSTEM GOODS AND SERVICES 48 A NNEX 18. SPATIAL RELEVANCE OF DIFFERENT FOREST GOODS AND SERVICES 50 A NNEX 19. SUMMARY OF ECONOMIC VALUES 51 A NNEX 20. OVERVIEW OF CLASSIFICATION SCHEMES FOR FINANCING INSTRUMENTS 52 A NNEX 21. TYPOLOGY OF FINANCING INSTRUMENTS USED IN THE STUDY 54 A NNEX 22. USE OF FINANCING INSTRUMENTS – RESULTS 55 A NNEX 23. INNOFORCE DATABASE OF INNOVATION CASES IN FORESTRY 58 A NNEX 24: QUESTIONNAIRE FOR ADDITIONAL MCA INFORMATION 59 A NNEX 25: SHORT DESCRIPTION OF COLLECTED EXAMPLES OF FINANCING MECHANISMS 64 A NNEX 26: OVERVIEW MCA OF THE SELECTED CASES OF FINANCING MECHANISMS. 77 Study on the Development and Marketing of Non-Market Forest Products and Services 1 | Page Annex 1. Initial expert interviews List of experts for initial interviews, March 2008 (name of expert, organisation, date and place): • Erik Kosenkranius, Eustafor, Brussels, 13 March, 2008 (Brussels) • Pieter De Corte, ELO, Brussels, 13 March, 2008 (Brussels) • Marilise Wolf-Crowther, Eurostat, 15 March, 2008 (Brussels) • Hakan Nystrand, METO (Forestry Experts’ Association), Helsinki, 15 March, 2008 (Brussels) • Jenny Wong, Wild Resources Limited, Bangor, 15 March, 2008 (Brussels) • Joan Botey I Serra, CEPF/Agrofitor S.A., Barcelona, 14 March, 2008 (Brussels) • Stefan Schenker, CEPF, Brussels/Mariensee, 20 February (telephone) • Thomas Stemberger, COPA-COGECA, Brussels/Vienna, 15 March, 2008 (Brussels) • Alexandra Vakrou, DG Environemtn, Brussels, 15 March, 2008 (Brussels) Conferences used for further interviews: • PARLAVIS WS 22. 2. 2008, Nasswald, AT; • EFORWOOD WP2.3 meeting, 27. 2. 2008, Lisbon, PT; • International Excursion on Forest Policy and Innovations in Forestry, 21 23. 4. 2008, AT; • BEECH Project Meeting 6. 5. 2008, Freiburg, DE; • EFI PC INNOFORCE meeting 11. 6. 2008, Edinburgh, UK; • Seminar on Innovations for Rural Development, 11. 6. 2008, Dunkeld, UK; • COST Action E51 meeting, 12 13. 6. 2008, Dunkeld, UK; • FOPER International Master Programm Seminar, 30. 6. – 4. 7. 2008, Belgrade/Durmithor, SB/MNE; • FORTIS Seminar “Forests – Not Only Wood”, 3. 9. 2008, Trento/S. Michele, IT; • FORVALUE Workshop and project meeting, 8 10. 9. 2008, Barcelona, ES; • EESD Conference 23. 9. 2008, Graz, AT. Annexes 2 | Page Annex 2. Common interview guide for the case study data collection Case interview guide: • name of case and carrier • background information on institutional situation (e.g. legal framework and administrative structure) • characterisation of the activity (what is the business or project and why is it innovative?) (including what type(s) of financing is/are employed) • characterisation of the financing mechanisms involved o Description of the financing mechanism o Beneficiary of the payment (e.g. land owner, association, community, etc.) o Who pays? (e.g. local, provincial, national government, user, etc.) o Are there intermediary organisations involved? o Use of legal, economic, communication, or voluntary instruments, or combinations o Which investments or measures are necessary before the mechanism works? o On which basis is payment fixed, e.g. market price, free negotiation, assessment of costs, etc.? • chronology of the case: o problem situation before the innovation or start-up was started and motivation why it was started; o development and implementation incl. e.g. source of ideas and initiatives; critical stages or milestones of the development possibly including challenges and strategies to overcome problems; o finally: state-of-progress and outcome incl. basic data on the business such as number of staff, annual turnover, etc. as far as available. (including: amount of compensation from specific financing instruments) • actors involved (e.g. authorities; extension services; NGO’s; research institutions; firm networks and cooperation)and their role, particularly: o knowledge (which kind of knowledge came from whom?), o financing (who contributed which financial sources incl. public grants and private money) o relation of actors and coordination (which cooperations where important and who was particularly important for coordinating actors?) • relevance of public policies and programmes (e.g. through subsidies but also through advice, knowledge, coordination, legal regulations, etc.) • analysis/evaluation: o Outcomes in relation to the objectives of the innovation o Role of the innovation in the overall economic strategy of the organisation (e.g. specialisation, diversification, rationalisation, outsourcing, marketing, cooperation, expansion) o relevance of the institutional setting for the innovation o Positive and negative results and outcomes of the innovation (economic performance and other changes) o Challenges and problems, strategies to overcome these o Fostering and impeding factors o Future plans o feasibility of and requirements for an application of the financing mechanism in other countries Study on the Development and Marketing of Non-Market Forest Products and Services 3 | Page Annex 3. Classification of Ecosystem Services Provisioning Regulating Cultural Food Fiber Genetic resources Biochemicals, natural medicines, pharmaceuticals Freshwater Air quality regulation Climate regulation Water regulation Erosion regulation Water purification and waste treatment Disease regulation Pest regulation Pollination Natural hazard regulation Cultural diversity Spiritual and religious values Knowledge systems Educational values Inspiration Aesthetic values Social relations Sense of place Cultural heritage values Recreation and ecotourism Supporting Soil formation, Photosynthesis, Primary production, Nutrient cycling and Water cycling Adopted from MEA (2005) Annexes 4 | Page Annex 4. Characterisation of forest goods and services (according to MEA 2005) Resources: This category refers to the forest ability to provide “tangible” wood and non-wood forest products. Industrial wood serves as the basis for the production of a vast number of products, like industrial round wood, sawn wood, wood-based panels, pulp and paper, particleboard, fibreboard, and plywood, engineered lumber components, softwood lumber, flooring, pallets, veneer, etc. Fuel wood includes the provision of wood for energy generation from direct use of woody material (e.g. twigs, branches and stems used as fuel or charcoal); indirect use (e.g. wood processing residues); recovered wood-fuels (used wood) and wood-derived fuels (e.g. methanol) (Mead, D. 2001). Non-wood forest products (NWFP) serve various purposes, ranging from food, medicines, spiritual, aesthetic, construction and clothing materials. Forest provides a great diversity of NWFP. According to the Millennium Environmental Assessment (MEA, 2005) “At least 150 NWFPs are of major significance in international trade”. For a comprehensive overview of NWFP see Figure 4.1. Figure 4.1. Example of Non-Wood Forest Products Classification Food Products Decorative & Aesthetic Pr. Health & Care Pr. Landscape & Garden Pr. Materials & Manufacturing Pr. Environmental Pr. berries beverages- essential oils flavouring agents herbs and spices honey maple syrup, sugar taffy, butter mushrooms nuts seeds teas vegetables adhesives alcohol candles cloth dyes essential oils fragrances incense lignosulfonates resin specialty wood pr. stuffing material thread & rope turpentine aromatherapy oils cosmetics drugs essential oils herbal health pr. nutraceutials perfumes and fragances pet care pr. shampoos soaps Christmas tree cone crafts bark crafts carvings floral arangements wreaths garlands, swags natural dyes biofuels biopesticides recycled pr. landscape trees shrubs wildflowers grasses mulches soil amendments Adopted from: CMRN (1999) Ecological Services: The main ecological services are related protection and regulation of water, soil and health. [...]... Area of forests important for the provision of different groups of forest goods and services 26 | P a g e Study on the Development and Marketing of Non-Market Forest Products and Services Figure 8.5: Area of forests important for the provision of different forest goods and services at EU level Finally, there are significant differences in the accessibility to different groups of forest goods and services. .. 27 Sweden - The Swedish Forest Agency 28 The Netherlands - LEI 29 UK - Forestry Commission EUSTAFOR - “State forest companies” In the case of Belgium the response came only from Wallonia, while in the case of Spain only autonomous communities of Castilla- La Mancha, Catalonia and Valencia responded 4 18 | P a g e Study on the Development and Marketing of Non-Market Forest Products and Services 1 2... Ireland Italy Malta Spain 15 | P a g e Annexes Figure 7.1: Share of forest for biodiversity protection in EU-27 countries in 2005 (source: MCPFE 2007) 16 | P a g e Study on the Development and Marketing of Non-Market Forest Products and Services Annex 8 Summary of the FORVALUE Questionnaire Results 1 Introduction The purpose of the FORVALUE study ( Study on the Development and Marketing of Non-Market Forest. .. Forest Products and Services [Contract number: 30-CE-0162979/00-21]) is to acquire summary information on the state -of the- art for the importance, valuation and compensation for non-market forest goods and services This study is financed by the European Commission and is part of the implementation of the EU Forest Action Plan and is being undertaken by a consortium led by the European Forest Institute The. .. Flowers and floral arrangements Mistletoe and holly Cone crafts Grazing Gums Resin Compost Adhesives Dyes Incense Lignosulfonates Stuffing material Ropes Turpentine Study on the Development and Marketing of Non-Market Forest Products and Services Table 6.2: List of non-market forest goods and services Remark: The list of non-market forest goods and services reflects the general situation However, there... almost 70% of the forests MCPFE (2007), State of Europe’s Forests 2007-http://mcpfe.org/files/u1/publications/pdf/state_ of_ europes_forests_2007.pdf 6 20 | P a g e Study on the Development and Marketing of Non-Market Forest Products and Services Table 8.6: Area of forests important for the provision of ecological services Health protection Water regulation Water purification Soil protection CE 80 79... to the valuable history-related and educational information embedded in the forest A large part of peoples’ history is associated with ecosystems and landscapes (special landscapes, old trees, remains of traditional cultivation systems, historic artefacts) 6|P a g e Study on the Development and Marketing of Non-Market Forest Products and Services Annex 5 Comparison of different forest goods and services. .. and amenity services The trends of importance in general follow the ranks of relative importance, and force increasing trends of importance for all non-market forest goods and services (biospheric, ecological, social and amenities) The forest area important for the provision of different forest goods and services coincides with the importance of these forest goods and services Finally, concerning the. .. Aesthetic enjoyment and inspiration Special landscapes Old trees Remains of traditional cultivation systems Historic artefacts Study on the Development and Marketing of Non-Market Forest Products and Services Annex 7 Importance of different forest services in the EU-27 countries Table 7.1: The share of forest for soil and water protection, in 2005 (source: MCPFE 2007) Country Austria1 Protective forest (in... supply of non-market forest goods and services from which policy conclusions will be drawn Thus, a questionnaire was developed to obtain relevant data on the current situation concerning mechanisms in use to compensate for the provision of non-market goods and services at the national level The questionnaire covered three thematic areas (see also the questionnaire in Annex 9): • importance of forest . related protection and regulation of water, soil and health. Study on the Development and Marketing of Non-Market Forest Products and Services 5 | Page. Study on the Development and Marketing of Non-Market Forest Products and Services DG AGRI, Study Contract No: 30-CE-0162979/00-21 Study Report