Forest Certification and marketing support for rural poverty reduction.

The Federation of Community Forestry Users, Nepal (FECOFUN) is proud to announce that Aveda’s 2007 Holiday line features handmade paper from Malika Enterprises. Malika, a community owned enterprise, high in the Himalayans, is the first to offer Forest Stewardship Council (FSC) certified handmade paper to the market.  FECOFUN thanks Aveda for helping to tell the story of forest user groups and the tremendous gains that Nepal has made in community forestry. As a member of the Nepal Non-timber Forest Products (NTFPs) Public-Private Marketing Alliance, Aveda has been a key partner in helping forest user groups' access high value markets as well as providing direct support for capacity building.

Aveda worked with all parties (FECOFUN, ANSAB, Smartwood/FSC, HBTL, EnterpriseWorks/VITA) to build the capacity of the community owned paper making companies and access to international markets - building the ability to produce more paper in tandem with the sustainability and quality protocols. Aveda understood that order sizes needed to match forest sustainability plans and processing capacity of local enterprises. With this in mind - not all of Aveda’s gift boxes, used around the world, in their stores could have the hand made paper, but each gift highlights and celebrates the work of the Forest User Groups producing the paper. It is important to have market access, but the market needs to understand environmental constraints and respect the people that are working to produce a quality product that is sustainable. Aveda is working with the paper supply chain to invest in capacity building and match markets to sustainable product growth.

Due to the project, Malika and Nepal Community Forestry now have international standing in a main stream marketing channel.  Malika, with matching support from Aveda is planning to install water turbines to bring electricity to over 600 families (there is no electricity currently in Malika). The thriving paper processing enterprise that Malika operates provides jobs and incomes so that families will be able to maintain the electricity generation in a sustainable way.

The development of community forestry in Nepal has had positive results in addressing sustainable environmental services, biodiversity conservation and poverty alleviation. Forest legislation recognizes Community Forest User Groups (CFUGs) as self-governing and autonomous entities and entrusts them with the management, control, utilization and sale of forest product in a planned way. Still, there are concerns over the protection and restoration of biodiversity of community managed forest and economic benefits for the least privileged groups.

It was in this context the alliance came together and worked to obtain Forest Stewardship Council (FSC) certification for the community managed forests and the enterprises that produce a range of natural products. Smartwood/Rainforest Alliance assessed 21 Community Forests (CFs) of Nepal covering more than 14,000 hectares according to the principles and criteria of the Forest Stewardship Council (the principles cover all components of social, environmental and economic aspects) and awarded sustainable forest management certification in 2005. The Federation of Community Forestry Users, Nepal (FECOFUN) holds the FSC certification and has been working as the group resource manager to bring more community forests under the certification. FECOFUN as a resource manager prepared and provided guidelines on protection and management of endangered flora, fauna and their habitat. All CFUGs are planning and implementing the guidelines according to their local context. The preliminary results are encouraging.  Users are aware of the importance and consequences of bio-diversity loss. CFUGs are becoming very serious about protection of water sources, trees, and rare and endangered flora and fauna are eager to invest in economic activities that are environmentally friendly.

Similarly, certified CFUGs include marginalized households and target social and economic programs in an inclusive consensus decision-making process. Resource management plans are being implemented in efficient and effective ways. Formerly, the CFUGs used to sell their raw materials at low prices to outsiders not interested in conservation and there was no sure market for their raw materials. Over harvesting and environmental degradation was happening and the communities earned little from the resources.

Alliance members helped the communities to develop management plans and value-adding processing enterprises. The certification of these CFUGs allowed the Nepalis to be recognized for their achievements and further improve to meet the highest world standards. Poor community members are now getting premium prices for raw materials, obtaining better wages, have expanded local employment opportunities and get bonuses from the profit of the enterprises. Kathmandu based companies that are FSC chain of custody certified purchase the paper at premium prices and consolidate and process products for export.

The certification of these CFUGs and alliance work is addressing biodiversity conservation through local participation and creation of employment opportunities at local and national levels.  FECOFUN and the other alliance members are promoting responsible marketing through the inclusion of formerly discriminated people and through marketing deals, like those promoted by Aveda, that promote responsible trading systems that consider local interests and needs.