TWO PAPER PRODUCER AFTER THE UNITED STATES, WOULD NEED TO COVER A LARGE PART OF ITS NEED FROM ABROAD, IN PART ALSO DUE TO A LOGGING BAN AT HOME AND CLOSURES OF SMALL, POLLUTING MILLS THAT HAD USED AGRICULTURAL RESIDUES. "CHINA'S GROWING DEMAND WILL EXACERBATE CURRENT PRESSURES ON NATURAL FORESTS AND PROVIDE ADDED INCENTIVES FOR ILLEGAL LOGGING," KAIMOWITZ SAID, ADDING IT WAS LIKELY TO SOURCE ALSO FROM BRAZIL OR INDONESIA WHERE FOREST GOVERNANCE WAS WEAK. GREENPEACE SAID IN MARCH THAT CHINA WAS AT THE HEART OF A GLOBAL TRADE OF PLUNDERING ENDANGERED RAINFORESTS IN SOUTHEAST ASIA, AS IT MANUFACTURED FURNITURE PLYWOOD AND VENEER FROM IMPORTS OF TIMBER FROM ILLEGAL LOGGING. CIFOR URGED FINANCIAL INSTITUTIONS, INCLUDING PRIVATE PLAYERS, TO MAKE GREATER EFFORTS TO ACQUIRE INFORMATION ABOUT WOOD SUPPLY AND USE INDEPENDENT AUDITORS BEFORE LENDING. KAIMOWITZ SAID BANKS LIKE THE INTERNATIONAL FINANCE CORP WERE NOT EXAMINING THE WOOD SOURCE EVEN AT A $1.7 BILLION PROJECT BEING BUILT IN URUGUAY, FOR WHICH IT PROMISED AN ENVIRONMENTAL STUDY AFTER MASSIVE PROTESTS OVER POTENTIAL POLLUTION. WHILE THE IFC WAS LOOKING INTO PROBLEMS SUCH AS WATER POLLUTION THAT HAD SPARKED THE OUTCRY, IT WAS NOT MONITORING WOOD SUPPLY FOR THE MILLS, TO BE BUILT BY FINLAND'S METSA-BOTNIA AND SPAIN'S ENCE, HE SAID. THE IFC DISAGREED. "IN THE CASE OF BOTH PULP MILLS IN URUGUAY THE SOURCE OF WOOD IS EXCLUSIVELY PLANTATION GROWN EUCALYPTUS WHICH IS ALSO FULLY FSC CERTIFIED-NO NATURAL FOREST SOURCING WHATSOEVER," THE LENDER SAID IN A STATEMENT. "WE AGREE THERE MUST BE RIGOROUS ASSESSMENT OF THE SUSTAINABILITY AND SUSTAINABLE MANAGEMENT OF THIS WOOD SUPPLY, AND IFC'S NEW PERFORMANCE STANDARDS -- WHICH CIFOR COMPLETELY IGNORED -- ADDRESS THIS ISSUE SPECIFICALLY," IFC SAID.
