Illegal logging not only destroys primeval forests and biodiversity, but has also a negative impact on the German economy. On 14 October 2008, Greenpeace published a study carried out by Ecologic, which shows that losses of turnover for the wood industry add up to an estimated one billion Euro annually (total revenue 2007: 10.3 billion Euro), caused by declining image and credibility at the consumer. Illegal timber also beats down prices for timber products and leads to shortages in specific types of wood. Mostly, the timber comes from Brazil, Indonesia, China, Congo, and Russia and was often harvested through overexploitation and the destruction of primeval forests.

On 14 October 2008 Greenpeace published a study on illegal timber imports to Germany which was compiled by Ecologic. The study analyses how illegal timber imports impact the economic viability of the timber and forestry industries in Germany. The study shows that the substantial long-term economic damage can result from reputation problems, price dumping and the unsustainable use of the industry’s resource base. On the 17th of October 2008 the European Commission unveiled a legislative proposal for combating imports and trade from illegal wood sources. Greenpeace criticizes the proposal for not going far enough. They demand concrete penalty measures for the possession and trade of wood from illegal sources.

The study analyses how illegal timber imports impact the economic viability of the timber and forestry industries in Germany. On the basis of expert interviews and statistics, the study shows that the substantial long-term economic damage can result from reputation problems, price dumping and the unsustainable use of the industry’s resource base. The paper concludes with policy recommendations.