The government agreed to the proposal of the Ministry of Environment and the Ministry of Digital Transformation regarding the experimental project of issuing a special permit for the use of forest resources (logging ticket) and a certificate of origin of timber and lumber made from it. The project will be implemented for 2 years, starting from June 1, 2023.
BRDO experts worked on the digitisation of these services together with the Ministry of Environment and the State Forestry Agency within the framework of the USAID/UKaid project “Transparency and Accountability in Public Administration and Services/TAPAS”.
Why is this important?
From now on, it is possible to submit an application and obtain the relevant permit documents online on the Ecosystem platform.
The introduction of such services in electronic format will allow to:
- reduce corruption risks;
- minimise the “human factor” (businesses will not need to contact representatives of state authorities, the State Forestry Agency and TsNAPs);
- save entrepreneurs time and money;
- increase public control and transparency during logging;
- introduce a single electronic database of logging tickets and certificates of wood origin instead of paper format.
What were the previous stages of the forest industry reform?
This innovation is another step in the framework of the comprehensive reform of the forest sector of Ukraine. The goal of the reform is to introduce transparent and effective management mechanisms in this area.
To remind, BRDO has been working on this reform since 2016. In 2017, the Agriculture sector team published a green paper on Timber Market Regulation, which highlighted the key issues facing the industry and how to address them.
Implementation of the proposals outlined in the BRDO Green paper began in 2019. The government introduced electronic logging of timber, which was the first step in preventing illegal logging and illegal timber traffic.
Next, the state introduced the sale of raw wood at electronic auctions, which created a transparent, convenient and affordable mechanism for the circulation of wood on the market.
Digitisation of the issuance of permit documents is the next step in the comprehensive reform of the forest industry, but it is far from the last.
What awaits the forest industry in Ukraine in the future?
The reform in the forest industry continues. The next stage should be the demarcation of management, licensing and economic functions, by carrying out corporate reform and ensuring transparent conditions for the economic activity of SE “Forests of Ukraine”.
BRDO continues joint work on the reform with relevant ministries. We are convinced that the implementation of modern and transparent mechanisms and the use of the best practices of the countries of the European Union in this area will contribute to the future prosperity of forest entrepreneurship.