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.

It is widely known that illegal logging has multiple negative impacts on the socio-economic and natural environment in forested countries. With instruments such as the FLEGT process, the EU tries to ensure that no illegal timber enters the European market. Comparable efforts are undertaken at the international level through the Convention on Biodiversity, the UN Framework Convention on Climate Change and the G8 Dialogue on Illegal Logging.

In contrast, the economic damages that illegal timber imports can cause in importer countries such as Germany have thus far received little attention. Although quantification of economic damages is extremely challenging at this point in time, the study shows that illegal timber imports pose an increasing risk to the industry. For example, reputation scandals and loss of consumer confidence will further increase if illegal imports cannot be halted.