The Governance and Economy Impact of Forest Certification: A Comparative Analysis Between Malaysia and Sweden

The forest certification is a voluntary program to ensure that the timber harvested from forests is conducted in a sustainable manner by following specific standards. Program for the Endorsement of Forest Certification (PEFC) introduced in 1999 using the bottom-up approach and gives a country flexibility to set-up their own PEFC standard based on current practice on Sustainable Forest Management (SFM), regulation, and governance. This practice has led to the development of various PEFC standards for each country; thus, the impact of PEFC certification found differs from each country. In accordance with that, this study aims to evaluate the PEFC standard application in developed and developing countries, namely Sweden and Malaysia. The study also analyzed the impact of forest certification on governance and economic aspects within Asia Pacific and Europe. The outcome of this study indicates that the PEFC standard developed by these countries shows similarities, for example, both countries focusing on social requirements and environmental requirements. While the difference is shown in criteria, term used, and focus area. The impact analysis shows that countries are facing a similar issue, especially market access and premium prices. This study show that the standard developed by each country differ depending on current practices, forest diversification and regulation.