Parliament has approved 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 decision ratifies eleven TUCs from an initial batch of nineteen, fulfilling constitutional requirements.
This approval permits Ghana to issue Forest Law Enforcement, Governance and Trade (FLEGT) Licences, thereby enabling the export of timber and timber products to European markets.
Ghana is set to become the first African country, and the second globally after Indonesia, to issue FLEGT Licences for timber.
On March 31, 2022, the Cabinet approved the conversion of 156 timber concessions and permits into TUCs, in line with Section 19 of Act 547, which was then presented to Parliament for ratification.
Act 547, effective from March 18, 1998, mandates that timber harvesting requires a TUC, replacing the previous system of timber rights under the Concessions Act of 1962 (Act 124).
The introduction of TUCs represents a significant policy reform designed to enhance the competitiveness of timber resource allocation.
Section 19 of Act 547 stipulates that timber rights granted prior to the Act’s enactment were only valid for six months, necessitating the application for TUCs within that timeframe.
Despite this, it took nearly 25 years for these concessions and leases to be converted into TUCs.
The recent ratification of these TUCs by Parliament signifies a major step forward in the legal timber trade, aligning with European Union standards.
According to a statement from the Ministry of Lands and Natural Resources dated Thursday, July 18, this ratification concludes the process of granting timber rights and highlights the government’s dedication to managing Ghana’s forest resources sustainably.
This move also enables Ghana to meet its commitments under the Voluntary Partnership Agreement (VPA) with the EU regarding FLEGT Licences.
It supports efforts to combat deforestation and forest degradation, improves environmental governance, and contributes to the achievement of Sustainable Development Goals (SDGs).