The European Charcoal Trade

Background and Objective

The aim of the planned work is to investigate, describe and document developments in the European charcoal trade and the markets of associated importing countries in order to derive recommendations for policy and environmental protection. The investigations are carried out against the background of the "Regulation on deforestation-free products" (EUDR), (EU) 2023/1115, which came into force on May 31, 2023 and according to which the trade in charcoal and briquettes will be subject to certain due diligence obligations in the EU for the first time from January 1, 2025. The aim of the regulation is to regulate the supply of certain raw materials and products that are associated with deforestation and forest degradation. The international charcoal trade is considered to be one of the least controlled and weakest monitored timber trade segments and is held responsible worldwide for large-scale loss of forest areas, overexploitation, illegal logging and the associated loss of important ecosystems and species diversity, as well as social grievances and corruption. In a (pilot) study conducted by the Thünen Institute of Wood Research and the WWF in 2019/20 (Haag et al. 2020/ The EU Charcoal Trade), 150 charcoal assortments from eleven representative countries in Europe were examined as part of an in-house project. An examination of the declarations on the packaging showed that only 25% of the products examined at that time were printed with consumer information regarding the types of wood processed or their origins, and that well over half of the information provided was incorrect and/or incomplete. Furthermore, an analysis of the trade flows of the EU Member States (Eurostat database /EU trade since 1988 by CN8 (DS-016890)) showed that half of the EU's charcoal imports come from high-risk countries, which are repeatedly associated with illegal logging, forest destruction and possible corruption (TFT 2015; Eurostat; Haag et al. 2017; WWF Germany 2018; Nepcon 2018).

The aim of this project is to examine the European charcoal market with the highest possible resolution and to assess the current situation at the time of the entry into force of the new EUDR with regard to the aforementioned risks. The focus of these investigations is on the wood trade with regard to the processed and declared wood species, the proportion of wood species from subtropical and tropical sources as well as the proportion of certified products (primarily FSC and PEFC) and the declarations on packaging (transparency and reliability of consumer information). Furthermore, random investigations of the supply chains or chain of custody (CoC) are to be carried out in order to check and present the traceability, in particular of imports from high-risk countries such as many in Africa, South America and South-Eastern Europe.

In addition, information events and conferences on the implementation of the EUDR and the accompanying trade directives are to be held in important export and partner countries, offering the international timber trade, politics and science the opportunity to exchange information in order to identify possible need for action for the future implementation of the EUDR. The project will also conduct surveys at national and international level to assess the extent to which the charcoal trade (national/international) has prepared for the changes that will come into force with the EUDR and whether these measures are sufficient to guarantee a transparent, socially just, sustainable and environmentally friendly charcoal trade in Germany and Europe. Biomass transportation in general, and charcoal flows in particular, require internationally coordinated analysis, monitoring and control. The aim of the project is to identify weaknesses and the need for action in the context of the EUDR at an early stage in order to guarantee implementation in terms of sustainability and the German government's national bioeconomy strategy.

Approach

The project is divided into six work packages.

Brief description of the work packages:

1. Purchase, procurement and delivery of charcoal/briquette samples and wood substitutes (1.1), collection of wood samples and relevant (organic) sample material (1.2) from the area of NTFPs (non-timber forest products such as nuts, shells and husks from food production) as reference material for the planned investigations.

2. Characterization of reference material or wood anatomical examination and description of the cellular anatomy of the wood samples (2.1) and other organic materials such as NTFPs (2.2) in the sense of an identification key.

3. Examination of the charcoal fragments: pre-sorting of the samples, preparation and microscopic analysis as well as evaluation of the goods declarations.

4. Analysis of existing timber markets, taking into account the results of WP 3 and products from risk sources associated with high deforestation rates, illegal logging and/or a high corruption index.

5. Evaluation of the implementation of and compliance with the new EU regulation on non-deforestation in the context of the European charcoal trade (preparation and evaluation of surveys and market analyses).

6. Publication of the results with the aim of reaching as diverse an audience as possible: publication in scientific journals, semi-scientific journals, newspapers, TV and online portals.