EUROPEAN AND UNITED STATES FORESTRY SECTOR HIT HARD BY GLOBAL RECESSION – UN

The current economic crisis has pushed the European and the United States forestry sector into an even larger slump, according to a new United Nations study.

The 56-country UN Economic Commission for Europe (<"http://www.unece.org/press/pr2009/09tim_p04e.htm">UNECE), whose membership includes the United States and Canada, accounts for nearly half of global forests, and the region is also the largest global producer, consumer, exporter and importer of wood and paper products.

The new joint report by UNECE and the UN Food and Agriculture Organization (<"http://www.fao.org/">FAO) found that consumption, production and trade of forest products reached record highs in 2006, with a slight downturn registered in 2007.

That decline accelerated in 2008, marking the sharpest drop since the first oil shock of 1973, and continued into the first half of this year, it said.

But the study pointed to marked distinctions between the three UNECE subregions, with consumption marking 3 per cent growth in the Commonwealth of Independent States (CIS).

However, with forest products markets primarily driven by housing construction requiring lumber, which tumbled dramatically in North America and Europe, consumption plummeted by nearly 13 per cent and almost 6 per cent, respectively.

From a peak of 2.2 million new homes in 2006, new constructions took a nose-dive, falling 25 per cent in 2007, 34 per cent in 2008 and an estimated 50 per cent this year. The UNECE/FAO study said that housing construction was down by 14 per cent last year and the same amount in 2009.

Although more houses continue to be built in the CIS, the pace has softened, the agencies said.

The fall in demand has pushed the real prices of building materials to their lows since the 1940s, while the paper sector is also falling deeper in to crisis, with production in Europe, North America and the CIS all reporting declines.

UNECE and FAO reported that some mills in the region have permanently ceased their operations, while forest owners and managers have cut back on their harvests, resulting in unemployment, as well as less income and tax revenues.

On the bright side, the new report noted that the wood energy sector seems to be immune to the current economic downturn, as demand for renewable energy sources, such as wood biomass, continues to steadily climb thanks to government policies towards climate change mitigation and energy security.

UN-BACKED TRANS-ASIAN RAIL AGREEMENT GOES INTO EFFECT

A railroad agreement aimed at linking 28 countries in Asia and Europe went into effect today, the United Nations announced in Bangkok.

The UN Economic and Social Commission for Asia and the Pacific (ESCAP) said the Intergovernmental Agreement on the Trans-Asian Railway Network became operative 90 days after China became the eighth country to have ratified it. The other parties to the agreement – developed with UN assistance – are Cambodia, India, Mongolia, Republic of Korea, Russian Federation, Tajikistan and Thailand.

The network comprises 114,000 kilometres of rail routes linking 28 countries in the region. The aim is to offer efficient rail transport services for the movement of goods and passengers within the region and between Asia and Europe, ESCAP said.

The network will also provide improved access for landlocked countries to major ports, ESCAP said.

Noeleen Heyzer, Executive Secretary of ESCAP, told an inaugural ceremony in ESCAP's Bangkok headquarters, "Modern economies cannot generate long-term growth and employment without highly efficient transport networks that are developed with a high level of integration.

"The timing of this agreement is particularly significant as leaders from our region promote intra-regional trade to stimulate recovery from the economic crisis. It will provide a more cost effective way of doing business and ensure the benefits of trade are more evenly distributed across the region," Ms. Heyzer said.

"Countries worldwide are now realizing that rising demand for transport services can no longer be met by roads alone," said Ms. Heyzer. "The recent fluctuation in the oil price, growing concern over energy-dependency and the environmental impact of the transport industry are pushing policy-makers to promote more environmentally-friendly and sustainable rail transport solutions."
________________

UN HUMANITARIAN CHIEF PRAISES SUPPORT OF EUROPEAN DONORS

UN HUMANITARIAN CHIEF PRAISES SUPPORT OF EUROPEAN DONORS
New York, Jun 3 2009 4:00PM
The top United Nations humanitarian official today paid tribute to the support his office receives from European donors at a meeting in Tallinn, Estonia.

John Holmes, Under-Secretary-General for Humanitarian Affairs and Emergency Relief Coordinator, was speaking at a meeting of the Humanitarian Partnership Forum for Emerging European Donors.

"<"http://ochaonline.un.org/">OCHA, the European Union and the individual countries that are attending this meeting all share common humanitarian goals and interests," said Mr. Holmes, referring to the UN Office for the Coordination of Humanitarian Affairs.

Attending the one-day meeting were representatives of Azerbaijan, Bulgaria, Croatia, Czech Republic, Cyprus, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovenia and Turkey.

OCHA has held four similar regional events – Abu Dhabi in 2005, Istanbul and Abu Dhabi in 2006, Seoul in 2007, and Mexico in 2008 – in a bid to build on its partnerships with countries involved in international aid.

These meetings have provided OCHA and its key partners opportunities to develop understanding and improve its preparedness and response to global humanitarian crises, OCHA said in a news release.

The next Humanitarian Partnership Forum meeting is scheduled to take place in Singapore in August of this year.
________________