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RIL: POLICY AND IMPLEMENTATION By Frederick Kugan, Albert M. Radin, Paul Leo Lohuji, Raubin Gampilok Sabah Forestry Department Asia-Pacific Workshop Reduced Impact Logging: Challenges, Opportunities and Strategies in the Emerging Forest Carbon Economy Kota Kinabalu, Malaysia 3-4 May 2012

RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

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Page 1: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

RIL: POLICY AND IMPLEMENTATION

By

Frederick Kugan, Albert M. Radin, Paul Leo Lohuji, Raubin Gampilok

Sabah Forestry Department

Asia-Pacific Workshop Reduced Impact Logging: Challenges, Opportunities and Strategies in

the Emerging Forest Carbon Economy Kota Kinabalu, Malaysia

3-4 May 2012

Page 2: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

OUTLINE

Logging and contribution to state’s economics

Logging Impacts State Forestry Policy Sustainable Forest management Why RIL? RIL implementation in Sabah Challenges Achievements What Next?

Page 3: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

LOGGING AND CONTRIBUTION TO STATE’S ECONOMICS

- 500.00

1,000.00 1,500.00 2,000.00 2,500.00 3,000.00 3,500.00 4,000.00 4,500.00 5,000.00

19…

19…

19…

19…

19…

19…

19…

19…

20…

20…

20…

20…

20…

20…

RM

(Mill

ions

)

State Revenue (RM) Forest Revenue (RM)

1879 Logging started in

Sabah 1962

Mechanized logging 1900

Logging intensified 1980

State revenue from timber average 50% per year with highest in 1987 (70%).

1990’s Adoption of SFM

concept in 1997 Production based on

AAC.

Page 4: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

LOGGING IMPACTS Logging damage inflicted on the residual forests = 60% (Tay,

2002)

Page 5: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

STATE FORESTRY POLICY

SFM – 1997 Sustainable Forest Management License

Agreement, 50 – 100 years RIL – 2010 Certification – 2014

Page 6: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

SUSTAINABLE FOREST MANAGEMENT

Class Type of Forest Reserve

Approximate Area (Ha)

Class I Protection Forest 364,794.17

Class II Commercial Forest 2,665,886.00

Class III Domestic Forest 7,355.00

Class IV Amenity Forest 21,283.77

Class V Mangrove Forest 320,521.56

Class VI Virgin Jungle Reserve 92,400.70

Class VII Wildlife Reserve 132,653.00

Grand Total: 3,604,894.20

Sector Planning 3.6 M ha under Permanent Forest

Reserve

Page 7: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

SUSTAINABLE FOREST MANAGEMENT

Management Level

Planning Horizon

Major Components

Forest Sector 10 – 20 years • Forest Sector Plan • Forest Policy • Legislation

Forest Management Unit (FMU)

5 – 10 years • Management Planning • Monitoring and Evaluation • EIS

Compartment annual • Implementation (RIL, ITP etc.)

• Resource Accounting

Page 8: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

SUSTAINABLE FOREST MANAGEMENT Sector Planning

SFMLA (Sustainable Forest Management License Agreement)

ANIKA DESIRAN SDN BHD

BENTA WAWASAN SDN BHD

BORNEO SULAMAN COVE SDN BHD

BORNION TIMBER SDN BHD

ECO-PLANTATIONS SDN. BHD.

FIRST GREENWORLD SDN. BHD.

IDRIS HYDRAULIC (MALAYSIA) BHD

JABATAN PERHUTANAN SABAH

K.M. HYBRID PLANTATION SDN BHD

KTS PLANTATION SDN BHD

LEBIHASIL SDN. BHD.

LEMBAGA TABUNG HAJI

MAXLAND SDN. BHD.

RAKYAT BERJAYA SDN. BHD.

SABAH FOREST INDUSTRIES SDN BHD

SAPULUT FOREST DEVELOPMENT SDN BHD

THE NORTH BORNEO TIMBER CORPORATION BHD

TIMBERWELL BHD

TOP QUANTUM SDN. BHD.

TSH RESOURCES BHD

Page 9: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

SUSTAINABLE FOREST MANAGEMENT

Forest Management Planning Zoning

Production Protection Conservation Community Forestry

Yield Regulation AAC determination Current stock Cutting cycle Cutting regime MAI

Management Prescriptions

Etc.

Page 10: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

SUSTAINABLE FOREST MANAGEMENT

Compartment Level AWP (Annual Work

Plan) Production

NFM (Natural Forest Management) RIL

ITP (Industrial Tree Plantation)

Silviculture Tree Improvement Etc.

Comprehensive Harvesting Plan

Page 11: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

WHY RIL? Environmentally & socially

acceptable Reduced logging impact by 50%

compared to conventional Economically feasible

Lower rehabilitation costs RM 300/ha compared to RM 5,000/ha

Shorter cutting cycle Physically possible

Technically implementable Availability of machineries

Consistent with sustainable harvesting principles.

Page 12: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

WHY RIL? SUSTAINABLE HARVESTING PRINCIPLE

Commitment to long-term sustainable provision of products and services, Maintenance of environmental integrity in harvesting planning and implementation, Consultation on all issues with all effected stakeholders, including those recognized under customary laws of the countries concerned, Effective implementation and control of harvesting operations with predetermined guidelines and benchmarks, Comprehensive harvest planning, Thorough post-harvest assessment and communication of results to the planning team and to harvesting personnel, Development of a competent and properly trained and motivated workforce.

Page 13: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

RIL IMPLEMENTATION IN SABAH

1992 • RIL Project – Pilot Carbon Project in YS area, sponsored by NEP.

1995 • RIL inception in Deramakot F.R.

• Ground based (crawler tractors) and skyline were used

1996

• Seminar on Forest Harvesting in Renaissance Hotel, Sandakan. • RIL adopted for statewide implementation in phases. • RIL Training for SFD-YS Core Trainers

1997 • RIL Training for RIL Supervisors and Machine Operators.

1998

• KTS Plantation Sdn. Bhd. • First Edition of RIL Guide. • System and Work Procedures for Monitoring RIL.

2000 • RIL implementation in all SFMLAs, except YS areas.

Page 14: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

RIL IMPLEMENTATION IN SABAH

2001 • Second Edition of RIL Guide book.

2003 • RIL incentive, royalty rebate = RM 10/m3 (local processing

only)

2004 • Helicopter Logging was introduced to extract timber from steep

areas in YS and BW.

2006 • Malua F.R.

• SFD-YS RIL Technical Committee was formed. • Success RIL implementation on an area of app. 26,000 ha within 1 year.

• Logfisher was introduced

2009 • Third edition of RIL Guide book incorporate guidelines for

helicopter and logfisher.

Page 15: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

RIL IMPLEMENTATION IN SABAH

2010 • RIL implementation in all

Commercial Forest Reserves • RIL Stage 1

2011 • RIL implementation in all

Commercial Forest Reserves • Full RIL

Page 16: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

CHALLENGES

Reluctant to change by Logging Operators RIL introduced in 1995 - Full RIL implementation in

2011 (16 years) Cost and economic consideration delayed

implementation.

Page 17: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

CHALLENGES

High Skills Requirement Compared with other

areas of work, RIL requires a combination of various skills and knowledge, such as forestry science, road engineering, surveying, economics and administration. Only by working as a group of diverse skills enable RIL be carried out efficiently.

Timber Feller RIL Operator Certificate Tractor Operator RIL Operator Certificate Logfisher Operator RIL Operator Certificate Chockermen RIL Operator Certificate Supervisor RIL Supervisor Certificate

Planner RIL Supervisor Certificate, or RIL Harvest Planner Certificate

Manager RIL Supervisor Certificate, or RIL Harvest Planner Certificate

Auditor RIL Supervisor Certificate, or RIL Harvest Planner Certificate

Page 18: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

CHALLENGES

Low Log Price - Disincentive

Location Mean Duncan

DFR1 287.9 ab

Sipitang, Sabah1 214.3 a

Pen. Malaysia2 616.5 c

Table 3. Log Price (RM/m3) at ex-stumping for Deramakot Forest Reserve (DFR), Sipitang, Sabah and Peninsular Malaysia (year 2000 as the base year).

Source: 1SFD. 2000. 2MTIB Note: Mean with the same letter is not significant at 5 percent confident level according to Duncan Multiple Range Test.

Page 19: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

CHALLENGES

High Operations Cost Average cost of RIL operation RM190 per m3 Vs

RM105 per m3 for conventional logging1. These additional costs were incurred from the

planning activities2 directional felling and the hauling activities3.

Apart from this, the cost on training was also reported to be contributing to the cost component.

1 Ahmad Saibi, 2003 2 Killman, 2001 3Tay, 2001

Page 20: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

CHALLENGES

Low Productivity Discounting HCVF and environmental concern Logged over forests.

Productivity range from13.6 m3/ha to 16.07 m3/ha for dbh > 60 cm.

Bad planning causes lower production.

Page 21: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

ACHIEVEMENTS

Deramakot Success SFM model.

Forest condition 70% logged over

AAC = 17,000 m3

The initiatives include improving log prices, operations costs reduction, and increasing harvesting volume.

Deramakot has made its first profit in 2002 and continued until now.

This episode is an important testimony that proves that RIL can be practiced either technically or economically.

(6.00)

(4.00)

(2.00)

-

2.00

4.00

6.00

8.00

10.00

12.00

14.00

1993

19

94

1995

19

96

1997

19

98

1999

20

00

2001

20

02

2003

20

04

2005

20

06

2007

20

08

2009

20

10

Mill

ions

EXPENDITURE (RM)

REVENUE (RM) - ROUND LOGS

Page 22: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

Accomplishment of Full RIL Implementation Statewide Despite of many

challenges as been discussed before, the full implementation of RIL has finally been realized in 2011. At present 19 licensees are actively pursuing RIL.

ACHIEVEMENTS

-

50

100

150

200

250

2002

2003

2004

2005

2006

2007

2008

2009

2010

2012

Area

(Tho

usan

ds h

a)

Total Area under RIL (ha)

Year

Page 23: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

ACHIEVEMENTS

Biodiversity (Mannan et al., 2008) RIL can maintain the richness and

composition of the canopy tree community at a level equivalent to the pristine forest.

RIL could maintain the richness, density and composition of soil macro fauna includes the important decomposers that function in nutrient cycling and sustain tree growth.

RIL maintained a higher abundance of flying insects compared to conventional logging.

The study demonstrate that a significant higher orangutan nest density in RIL forest compared to in the surrounding forests.

Page 24: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

Where are the Orang-Utans?

Heartland of the Orang-Utan 8,500 individuals or 75% of Sabah’s Orang-Utan population. They are all in well managed areas.

Findings are based on Rapid Assessment of Orang-Utan Distribution and Density carried out by WWF-Malaysia

Page 25: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

ACHIEVEMENTS

Potential Carbon A difference of 33 ton of carbon per ha - positive

effect added by RIL (Deramakot) Assumption: 200,000 ha (10 years) = 6.6 mil ton of

carbon The implementation of RIL was possible to retain

an extra 25-45 tonnes of carbon/ha two (2) years after logging, rising to 90 tonnes of carbon/ha after 40 years as a result of improved regeneration (NEP).

Page 26: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

ACHIEVEMENTS Provide Adequate Trained Personnel

Training conducted through the Sabah Forestry Institute: i) RIL Training for Trainers, ii) RIL Training for Supervisor, iii) RIL Training for Machine Operators, iv) RIL Training for Managers, v) RIL Training for DFO, vi) Training Course on SPKP RIL (System and Work Procedure for Monitoring RIL), and vii) Training Course on Map Accuracy Testing.

As of November 2011, a total of 4,431 people from the private sector and SFD trained. Periodic holding of workshops, seminars, talks on RIL etc.

0 100 200 300 400 500 600 700 800

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

YEAR

DFO

Supervisor

SPKP RIL

Manager

Machine Operator

Page 27: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

ACHIEVEMENTS Efficient Control and Monitoring

Skilled workers, RIL Guidebook and System and Work Procedures for

Monitoring RIL. RIL Compliance

A third party independent auditor began Jun 2010

SFD also formed its own SFM team to conduct monitoring and surveillance of field activities.

177 audit reports 69 reports on CHP and 107

reports on RIL Operations 14 CHP contractors and 21 RIL

contractors CHP (93%) RIL Operation (96%)

Page 28: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

ACHIEVEMENTS

RIL Compliance (performance based on monthly audits)

CHP Contractor performance. RIL Logging Contractor performance.

Page 29: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

ACHIEVEMENTS RIL Compliance

The audit findings however revealed some major and minor gaps, which need to be further improved in order to maintain the RIL quality at the upmost level. Among the frequent gaps encountered by the auditor were roads and streams for CHPs and Daily Felling Records for RIL Operations.

Frequency of CHP Gaps. Frequency of RIL Operations Gaps.

Page 30: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

ACHIEVEMENTS

Enforcement As an effort to close

the GAPs, the Department has imposed penalties on related offences. To date, a total worth of RM 337,600.00 fines were imposed onto 14 contractors for having violated the license agreement associated with forest harvesting rules.

Company Penalty (RM)

Year 2010 - 2011

Eramewah Sdn Bhd 5,000.00 KTS Plantation Sdn Bhd 5,000.00 Maju Sinar Sdn Bhd 18,000.00 Takat Bistari 5,000.00 Tamabina Sdn Bhd 10,500.00 Teguh Wajar Sdn Bhd 10,000.00 Winmore Development Sdn Bhd 13,000.00 TSH Bhd. 15,000.00 Sabah Forest Industries Sdn. Bhd. 15,000.00 Makmuran Sdn. Bhd. 5,000.00 Java Industries 50,000.00 Asiatic Lumber Industries Sdn. Bhd. 156,000.00 Melati Optimis Sdn. Bhd. 25,100.00 Am Permai Sdn. Bhd. 5,000.00 Grand Total 337,600.00

Page 31: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

ACHIEVEMENTS

Rebate System Realizing the additional burden of the licensees due

to RIL, the government has introduced a rebate system on royalty on all RIL harvested logs. A rebate of RM10 per m3 will be refunded to the timber contractor/licensee as a form of incentive for having RIL compliance.

Page 32: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

ACHIEVEMENTS RIL Contractors

In year 2003, the Sabah Forestry Department imposed a condition that all RIL contractors, i.e. CHP Contractor and RIL Logging Contractor, have to be registered with the Sabah Forestry Department in order to: Ensure that only contractors who are trained in RIL carry out the

Comprehensive Harvesting Plan (CHP) preparation and RIL logging operations works,

Create RIL contractor information management system, Facilitate the monitoring and control of CHP quality and RIL

logging operations, Facilitate the delivery of information and technology transfer in

forest harvesting. Presently there are 27 companies registered as RIL logging

contractor, 17 companies registered as CHP contractors and 4 companies registered as both RIL logging and CHP contractors.

Page 33: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

ACHIEVEMENTS

Forest Certification Deramakot FR (1997) KTS Plantation Sdn. Bhd.

(2010) Tangkulap (FMU 17A) Ulu Segama-Malua 900,000 ha under some

form of certification 390,000 ha FSC certified 57,000 ha MTCS/PEFC

Certified Others (VLC, VLO)

Page 34: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD

WHAT NEXT?

RIL database development Forest Certification

All SFMLA areas to be certified by the year 2014 C-RIL Opportunities

Sabah REDD+ roadmap National Forest Inventory (NFI 5)

Carbon mapping Monitoring of forest changes

UNDP-GEF project – Carbon financing

Page 35: RIL: POLICY AND IMPLEMENTATION · Sabah Forestry Department . Asia-Pacific Workshop. Reduced Impact Logging: Challenges, Opportunities and Strategies in ... ANIKA DESIRAN SDN BHD