Preliminary assessment of the third payment request of Romania (2024)

nt legislation Name of the Milestone: Adoption of the National Forest Strategy 2020-2030 Qualitative Indicator: Adoption of the National Forest Strategy 2020-2030 Time: Q3 2022 Context: The objective of reform C2.R1 is to ensure a clear and robust strategic and regulatory framework for the implementation of sustainable forest policies that support climate change mitigation and adaptation. Milestone #22 concerns the adoption of the National Forest Strategy 2020-2030. It is the first step in the implementation of the reform and it is accompanied by milestone #23 in this payment request and consists of binding rules for afforestation and reforestation. It will be followed by milestone #24, related to amendments/supplements to the legislation on forests. The reform has a final expected date for implementation of 30 September 2023. The reform is complemented by investments C2.I1 and C2.I 2 with final expected date for implementation of 30 September 2024. Evidence provided: The following evidence was provided: i. Summary document duly justifying how the milestone (including the relevant elements of the milestone, as listed in the description of milestone and of the corresponding measure in the Council Implementing Decision annex) was satisfactorily fulfilled; ii. Copy of Government Decision No. 1227 of 5 October 2022 approving the National Forest Strategy 2020-2030 (hereinafter referred to as “the Strategy”), published in the Official Journal No. 980 of 10 October 2022, with the National Forest Strategy 2020-2030 as the annex to the Government Decision; iii. Independent reports: (i) Methodological approach and detail within the contract, by Transilvania University of Brașov, published in March 2022; (ii) Study on the description of possible scenarios of evolution a sector and identifying opportunities and challenges determined by the transposition in the forestry sector in Romania a EU forestry strategy, by Transilvania University of Brașov, published in April 2022; and (iii) Legislative and institutional challenges and opportunities in the forestry sector in Romania drawn up in the framework of the contract, by Transilvania University of Brașov, published in June 2022; iv. Nine independent studies by thematic working groups (TWG1-9): (1) Traceability of timber and first placing on the market, by A. Băban et al., from May 2022; (2) Obligation of result versus procedural obligations, by L. Bouriaud et al., from May 2022; (3) Manifestation of ownership of the technical decision in Forests, by G. Duduman et al., from May 2022; (4) Simplified procedures for monitoring forest properties, by I. Barnoaiea et al., rom May 2022; (5) Service evaluation and compensation system ecosystem, by M.D. Daniel et al., from May 2022; (6) Segregation of biodiversity conservation from forest management vs. mainstreaming biodiversity conservation into forest management, by V.-N. Nicolescu et al., from May 2022; (7) Support instruments to increase the sector’s contribution to local economy, by A.-F. Hălălișan et al., from May 2022; (8) Preliminary timber market assessment/timber balance, by D. P. Dima et al., from May 2022; (9) Identification of the best options for species selection forest for afforestation of go-to land in conjunction with expected climate scenarios to ensure adaptation better on climate change, by C. Palaghianu  et al., from May 2022. Analysis: The justification and substantiating evidence provided by the Romanian authorities cover all constitutive elements of the milestone. National Forest Strategy 2020-2030 shall be adopted. Furthermore, in line with the description of the measure, the reform shall consist of the following actions: (1) Completion of independent studies on weaknesses in governance, both institutional and regulatory, and implementation of the provisions of the current forestry legislation (by 30 June 2022); (2) Adoption of the National Forest Strategy 2020-2030 on the basis of the recommendations of the assessment performed under (1) above (by 30 September 2022). The Romanian Government adopted Government Decision No. 1227/2022 of 5 October 2022, which included the National Forest Strategy 2020-2030 (hereinafter referred to as “the Strategy”) as its Annex. The Government Decision, of which the Annex is an integral part, as set out in its sole article, entered into force on the date of its publication in the Official Journal, on 5 October 2022, in accordance with Article 12(3) of Law No. 24/2000 on the rules of legislative technique for the drafting of legislative acts. The Council Implementing Decision required the adoption of the National Forest Strategy 2020-2030 by 30 September 2022. The National Forest Strategy entered into force on 5 October 2022, as evidenced by Government Decision No. 1227/2022. Whilst this constitutes a minimal substantive deviation from the requirement of the Council Implementing Decision, the National Forest Strategy had entered into force at the time of the assessment. Romania provided three independent study reports carried out by the Transylvania University of Brasov on weaknesses in (i) institutional governance, (ii) regulatory governance, and on (iii) the implementation of the provisions of the current forestry legislation. The study report on Methodological approach and detail contains the methodological approach, including expert consultations and scenario analysis, for conducting these studies. The study report on the opportunities and challenges of implementing the EU Forestry Strategy in the Romanian forestry sector examined the opportunities and challenges of implementing the EU forestry strategy in Romania, aligning national targets with EU objectives. The study report on legislative and institutional challenges and opportunities in the forestry sector in Romania addresses legislative and institutional challenges, suggesting updates to improve transparency, efficiency, and biodiversity integration in forest management. Requisite activities such as expert consultations, data collection, and the formulation of recommendations were documented and concluded. The identified topics in the reports were structured into nine thematic areas, as further explained below. Based on this, several thematic working groups (hereinafter referred to as “TWGs”) have been constituted, each one being associated with an identified topic/issue (see study titles of the respective TWG studies). The three study reports create the scientific base for this measure as they lay down the existing governance framework and the institutional and regulatory weaknesses and propose solutions and opportunities for overcoming these challenges. They have been completed and submitted to the Ministry of Environment, Waters and Forests by 30 June 2022, as demonstrated by their finalisation dates. The Strategy shall, on the basis of the recommendations of the independent studies, set out binding rules for afforestation and reforestation as follows: The Ministry of Environment, Water and Forests contracted the Faculty of Silviculture and Forest Engineering of the Transilvania University of Brasov, as well as external experts to develop independent studies identifying and analysing the current forest governance system and to draft the National Forest Strategy 2020-2030 (Chapter 1.4 of the Strategy; page 8 (all further page numbers refer to the Strategy or its consecutively numbered annexes if not indicated otherwise)). Nine independent studies have been carried out by nine TWGs, covering five thematic areas (hereinafter referred to as “TA”): (i) supporting the socio-economic functions of the forest and boosting the forest bioeconomy within the limits of sustainability (TA1); (ii) protecting, restoring and expanding Romania’s forests (TA2); (iii) strategic monitoring, collection, processing and reporting of forest data (TA3); (iv) communication, awareness, education and scientific research (TA4); and (v) efficiency and transparency in forest governance and forest management control (TA5). Chapter 3 of the Strategy elaborates on each of the nine thematic areas (pages 14-44). Each TA covers one or more recommendation, which are called strategic direction of action (hereinafter referred to as “SDA”), for the achievement of which all necessary efforts and resources must be directed (page 12 of the Strategy). As indicated on page 12 of the Strategy, the implementation of each SDA requires meeting the outcome objectives set out in the Strategy, the achievement of which is tracked through monitoring indicators. As an example, TA1 aims to support the socio- economic functions of the forest and boosting the forest bioeconomy within the limits of sustainability. It includes four SDAs, like SDA1 – Promoting sustainable forest bioeconomy through long-lived timber products or SDA2 – Ensuring transparency and competitiveness in the timber market. The outcome objectives of SDA1 (page 15) are (i) technical rules on how to calculate the possibility in forest management plans use updated production tables, and (ii) technical rules regulate the production process differently from the size of the property. They are tracked by progress indicators which attribute a timeline like for example the update of production tables, scientifically based on recent data, by 2025. Chapter 4 of the Strategy sets out the legal changes necessary to implement the recommendations (pages 45-49). Chapter 4.1 on the legal and regulatory reforms explains that the framework needs to better involve private forests owners into the forest management, through minimum management obligations, integrate biodiversity conservation, and harmonize conflicting laws (pages 45-46). Chapter 4.2 on the operational changes underlines the importance of strengthening the central public authority for forestry regarding its capacity for monitoring and control, and professionalization (page 46-47). Chapter 4.3 on financial resources summarizes needs, planning and monitoring of national and international financial means (pages 47-48). Chapter 4.4 on the implementation and monitoring sets out the need of a dedicated implementation unit with expert leadership is necessary for execution (pages 48-49). Annex 1 to the Strategy includes the strategic considerations for the implementation of the lines of action of the Strategy, Annex 2 sets out the national forest management planning requirements, Annex 3 establishes the indicative timeline for the implementation of the outcome objectives of the Strategy, and Annex 4 sets out an action plan for the implementation of the Strategy. Therefore, the Strategy sets out legally binding rules for afforestation and reforestation by establishing mandatory provisions and a clear framework for implementation, with the explicit purpose of governing afforestation and reforestation practices. Furthermore, as an integral part of the Government Decision, the annexed Strategy has the same legal binding value as the Decision itself, and thus the rules set out in the Strategy are equally binding. a. Requirements for species and ecotypes to be climate-resilient and without negative impact on biodiversity. The strategy shall respond to the need to have updated guidelines on tree planting in Romania and shall create safeguards, in particular, to exclude the use or release of invasive alien species. Based on recommendations from TWG9, the Strategy aims to identify the best options for selecting forest species suitable for afforestation, correlating these options with expected climate scenarios to ensure their best possible adaptation to climate change. The TWG9 recommendations emphasise the choice of species for afforestation of agricultural land and limit the use of invasive alien wood species. Additionally, the TWG6 recommendations informed the guidelines for afforestation and reforestation practices. The Strategy, reflecting the TWG9 recommendations, includes SDA7, which is aimed at increasing forest cover through the afforestation of lands outside the designated forest land, with specific outcome objectives (e.g. outcome objective 7.2) focusing on the selection of appropriate species for afforestation. The Strategy responds to the need to have updated guidelines on tree planting in Romania and to create safeguards, in particular to exclude the use or release of invasive alien species by establishing the requirement that in the implementation of the National Forest Strategy 2020-2030 as regards afforestation, compliance with the following requirements is mandatory: a) the species and ecotypes to be used must be climate resilient and have no negative impact on biodiversity; updated guidelines on the planting of trees in Romania will be developed and will put in place, in particular, guarantees for non-use of invasive alien species; b) Forest reproductive material of tree species and ecotypes suitable for Romania’s future climatic conditions will be produced in sufficient quantities and involving the private sector . b. Requirements for the production of reproductive material to target tree species and ecotypes that are suitable for Romania’s future projected climatic conditions in sufficient quantities with the involvement of the private sector, and for measures to discourage the creation of commercial nurseries for short rotation or monoculture production. The Strategy, based on recommendations from TWG9 and TWG6, mandates the production of climate-appropriate reproductive material in sufficient quantities, with significant private sector involvement, as outlined in SDA7 of the Strategy (page 58). The Strategy states that the Specific Guides on Afforestation and Reforestation shall further detail these requirements, emphasising the use of species resilient to climate changes and suitable for future conditions (page 28). These guides shall stipulate that afforestation projects should use one or two main species best suited to the current and future pedological and climatic conditions, and that non-native species should only be used if they lead to favourable ecosystem conditions and if native species are no longer adapted (page 29). Article 3(7) of Annex 1 to Ministerial Order No. 2533/2022 mandates that afforestation efforts use forest reproductive material from species and ecotypes appropriate for future climatic scenarios. This ensures that forest regeneration and afforestation efforts are aligned with anticipated climate changes. c. Requirements for afforestation to contribute positively to the objectives of biodiversity conservation, water management and soil protection by prohibiting afforestation or reforestation on agricultural land with high nature value, grassland or wetlands, excluding habitat restoration. SDA7 point (d) provides that afforestation activities must contribute positively to the objectives of biodiversity conservation, water management and soil protection by prohibiting afforestation or reforestation on high nature value agricultural land, grassland or wetlands. Specifically, afforestation on high-value agricultural land, meadows, or wetlands would be prohibited unless it involves habitat restoration. Based on the recommendations of TWG-9 and TWG-6, the Strategy provides for assessing the impact of climate change on species favourability and developing simplified solutions for afforestation on suitable agricultural land. The Strategy mandates using a variety of woody species to maintain specific biodiversity, recommending local or adapted species to handle frequent disturbances in forest ecosystems. Additionally, it calls for developing a list of invasive exotic woody species in line with current European recommendations and testing better species or provenances adapted to drought and dryness in the medium to long term. These elements are outlined in Annex 1 to the Strategy, under SDA7. d. Requirements for preventive measures that increase the natural absorption capacity of the soil to be included in forest management activities and specific climate change adaptation requirements to ensure that forest management is based on species monitoring. The Strategy incorporates guidelines for preventive measures to enhance the natural absorption capacity of the soil as part of forest management activities. According to the recommendations of TWG9 and TWG6, the strategy includes point (d) for afforestation and reforestation, detailed in SDA6 (page 57), which sets out that one of the actions needed to ensure an adequate management for the stability of forest ecosystems is determining the degree of vulnerability of forests to the biotic, abiotic and anthropogenic disruptors. Point (e) provides that to ensure the stability of forest ecosystems their management must take due account of adaptation to climate change requirements and be based on active species vulnerability monitoring, while point (f) requires that preventive measures that increase the natural absorption capacity of the soil will be included in the management activities for the stability of forest ecosystems. e. Requirements for urban afforestation to be achieved through a landscape level approach that contributes to strengthening connectivity with natural or semi-natural areas (such as forests or agricultural areas) with a focus on linking habitats with green infrastructure and ecological corridors. SDA7 point (e) provides that urban afforestation must be achieved through a landscape level approach that contributes to strengthening connectivity with natural or semi-natural areas (such as forests or agricultural areas), focusing on connecting habitats with green infrastructure and ecological corridors (page 58). Based on the recommendations from TW