Parliament Ratifies Timber Utilisation Contracts For Sustainable Timber Trade | Business News

Parliament on Thursday, July 11, ratified the Timber Utilisation Contracts (TUCs) for timber exploitation during the third meeting of the Fourth Session of the Eighth Parliament of the Fourth Republic.

This approval encompasses eleven TUCs, which are part of the initial nineteen submitted for ratification as required by the Constitution.

This ratification allows Ghana to issue Forest Law Enforcement, Governance and Trade (FLEGT) Licences, facilitating the export of timber and timber products to the European market.

Consequently, Ghana will become the first African country, and the second globally after Indonesia, to issue FLEGT Licences for timber products.

It is noteworthy that on March 31, 2022, the Cabinet, during its 26th meeting, approved the conversion of 156 timber concessions and permits into TUCs per Section 19 of Act 547. This approval was for these TUCs to be presented to Parliament for ratification.

Act 547, effective since March 18, 1998, mandates that timber harvesting requires a TUC. Previously, timber rights were granted through concessions, leases, and permits under the Concessions Act of 1962 (Act 124).

The introduction of TUCs marks a significant policy reform aimed at establishing a competitive system for allocating timber resources.

Section 19 of Act 547 stipulates that existing timber rights before the Act’s implementation were valid for only six months, requiring holders to apply for TUCs within this period.

However, nearly 25 years later, these concessions and leases had not been converted into TUCs until now.

The recent conversion of these concessions and leases into TUCs and their subsequent ratification by Parliament signifies substantial progress in the legal timber trade, aligning with the European Union’s requirements.

This Parliamentary ratification concludes the process of granting timber rights and underscores the Government’s commitment to the legal and sustainable management of Ghana’s forest resources.

Ratifying these TUCs also positions Ghana to fulfill its obligations under the Voluntary Partnership Agreement (VPA) with the EU regarding FLEGT Licences.

This move supports the fight against deforestation and forest degradation, enhancing environmental and natural resources governance, and contributing to the achievement of Sustainable Development Goals (SDGs).