Proposing an indicator framework for FLEGT voluntary partnership agreements impact monitoring

In 2003, the European Union (EU) launched the Action Plan for Forest Law Enforcement, Governance and Trade (FLEGT). The Action Plan aims to combat illegalities in the forest sector, using trade as the leverage to involve producers, traders and consumers in its implementation. A key instrument emerging from the Action Plan is Voluntary Partnership Agreements (VPAs). These are bilateral trade agreements between the EU and wood exporting countries, to ensure that all wood exports were produced and traded in accordance with the laws of the originating country. Six such agreements were negotiated so far and with their implementation nearing, it is important to develop methodology for monitoring key impacts of a VPA. The VPAs and the Action Plan specifically outline the requirement to monitor their impacts on the livelihoods of forest dependent communities. For this an effective VPA impact monitoring system has to be built that fits with the context and capacity of the country. This paper aims to contribute to these developments by proposing an indicator framework for a country-level VPA impact monitoring. The framework comprises of 46 indicators designed to capture changes across ten key impact areas of VPAs. The paper also discusses requirements and possible challenges of VPA impact monitoring as well as its implications to good forest governance in the VPA countries and offers principles for cost-effective VPA impact monitoring.