Analysis of forestry strategic and legal framework in North Macedonia

Framework Contract SIEA 2018 Lot 1 – Sustainable Management of Natural Resources and
Resilience
Delegation of the European Union to the Republic of North Macedonia
“REVIEW OF FORESTRY SECTOR IN NORTH MACEDONIA AND
PREPARATION OF 2019 IPA PROJECT FOR FORESTRY”
Contract N° 2019/410389-1
ANALYSIS OF CURRENT STRATEGIC AND LEGAL FRAMEWORK
OF FORESTRY SECTOR IN NORTH MACEDONIA WITH CONCRETE
RECOMMENDATIONS FOR IMPROVEMENTS
July 2020
This project is funded by the
European Union Implemented by
Eurata Consortium – AESA HU
Lot1SIEA@eurata.eu
The contents of this publication is the sole
responsibility of EURATA Consortium and can
in no way be taken to reflect the views of the
European Union

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DELEGATION of the EUROPEAN UNION
to the Republic of North Macedonia
“REVIEW OF FORESTRY SECTOR IN NORTH MACEDONIA
AND PREPARATION OF 2019 IPA PROJECT FOR
FORESTRY”
Analysis of current strategic and legal framework of
forestry sector in North Macedonia with concrete
recommendations for improvements
(Output 3)
Contract N° 2019/410389-1
Framework Contract SIEA 2018 – LOT 1
July 2020
Team Composition:
MSc. Franc Ferlin, Forestry expert
MSc. Monika Kordić, Agriculture analyst
This report was prepared with financial assistance from the Commission of the European Communities. The
views expressed are those of the consultant and do not necessarily represent any official view of the
Commission or the Government of this country.
Eurata Consortium – AESA HU
Lot1SIEA@eurata.eu

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TABLE OF CONTENT
ACRONYMS...........................................................................................4
EXECUTIVE SUMMARY ....................................................................6
1. INTRODUCTION ................................................................................12
2. APPROACH, MATERIAL AND METHODS ..................................13
3. RESULTS OF THE ANALYSES........................................................14
3.1. Analysis of current national strategic and policy framework of the forestry
and forest-related sectors against EU principles, strategies and policies...........14
3.1.1. National strategy for sustainable development of forestry..............................................14
3.1.1.1. Vision, general goal and strategic directions.......................................................................14
3.1.1.2. Objectives and measures by strategic fields.........................................................................14
3.1.2. National forest-support programme measures.................................................................16
3.1.2.1. Programme of extended forest reproduction.......................................................................16
3.1.2.2. National rural development and IPARD programmes........................................................17
3.2. Analysis of current legal set-up of the forestry sector and the forest-related
legislation..................................................................................................................18
3.2.1. Forest law with by-laws.......................................................................................................18
3.2.1.1. General provisions................................................................................................................18
3.2.1.2. Preconditions for sustainable management with forests.....................................................19
3.2.1.3. Forest and forestry planning................................................................................................21
3.2.1.4. Public participation in, and access to the forestry planning documents............................21
3.2.1.5. Planning of forest protection against fires ..........................................................................22
3.2.1.6. Implementation of forest management................................................................................23
3.2.1.7. Use of other forest products and services ............................................................................27
3.2.1.8. Establishing the forest cadastre and the forestry information system................................27
3.2.1.9. Forest guarding and forest police functions........................................................................28
3.2.1.10. Entities managing with state-owned forests ........................................................................30
3.2.1.11. Management with private forests.........................................................................................30
3.2.1.12. Forest reproduction..............................................................................................................31
3.2.1.13. Forest supervision.................................................................................................................32
3.2.1.14. Penalties ...............................................................................................................................33
3.2.2. Forestry and hunting inspection law .................................................................................33
3.2.3. Proposal of the Forest police law........................................................................................34
3.2.4. Law on forest reproductive material .................................................................................34
3.2.5. Hunting law..........................................................................................................................35
3.2.6. Nature protection law..........................................................................................................35
3.2.7. Criminal code.......................................................................................................................37
3.2.8. Agricultural and rural development law...........................................................................37
3.2.9. Draft Agricultural extension law........................................................................................38
3.2.10. Public sector employees’ law ..............................................................................................39
3.2.11. Public servants’ law.............................................................................................................39

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3.2.12. Public enterprise law...........................................................................................................40
3.2.13. Company law .......................................................................................................................40
3.3. Assessment of compliance of the forest and the forest-related rural
development law with EU acquis............................................................................42
3.3.1. Forest law .............................................................................................................................42
3.3.1.1. Public participation in elaboration the forest planning documents ...................................42
3.3.1.2. Monitoring of air pollution impacts on forest ecosystems ..................................................42
3.3.1.3. Reporting on Pan-European criteria and indicators for sustainable forest
management..........................................................................................................................43
3.3.1.4. Forest carbon inventory .......................................................................................................43
3.3.1.5. Monitoring of forest fires .....................................................................................................44
3.3.1.6. Establishment of Natura 2000 and management with the forests......................................44
3.3.1.7. Extended forest reproduction measures ..............................................................................44
3.3.1.8. Combating illegal harvesting and trade in wood.................................................................45
3.3.2. Agricultural and rural development law...........................................................................48
3.4. Recommendations for improvement and harmonisation of the forestry and
forest-related strategic, policy and legal framework............................................48
3.4.1. Strategy for sustainable development of forestry.............................................................48
3.4.2. New National forestry program .........................................................................................49
3.4.3. New Forest law.....................................................................................................................49
3.4.4. New legislation assuring full implementation of EUTR and FLEGT regulations.........56
3.4.5. New Forest Agency law.......................................................................................................56
3.4.6. Forestry and hunting inspection law .................................................................................57
3.4.7. New Forest police law..........................................................................................................57
3.4.8. New State forest maangement or company law................................................................57
3.4.9. Law on forest reproductive material .................................................................................58
3.4.10. Nature protection law..........................................................................................................59
3.4.11. Criminal code.......................................................................................................................59
3.4.12. Agriculture and rural development law and national rural development
programmes .........................................................................................................................60
3.5. Recommendations for the activities of the IPA 2019 project “Supporting the
reforms in forestry”.................................................................................................61
3.5.1. Improving the strategic framework of the forestry sector including the
forest-related part of the rural development. ...................................................................63
3.5.2. Improving the compliance of forest legislation with the EU acquis and with the
requirements on forestry.....................................................................................................65
3.5.3. Improving the institutional set-up and functioning of the forestry sector. ....................67
3.5.4. Establishing the Integrated Forest Information System..................................................68
3.5.5. Enhancing the prevention and control of biotic, abiotic and anthropogenic forest
damages, as well as the forest biodiversity conservation. ................................................70

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ACRONYMS
APP Annual action programme
CBC Cross border cooperation
CBFFs Common-benefit forest functions
CCM Centre for Crises Management
CEEC Central and East European Countries
CLRTAP Convention on Long-Range Transboundary Air Pollution
DPRS Diagnostic-Prognostic-Reporting Service
EAFRD European Agricultural Fund for Rural Development
ECTS European Credit Transfer System
EEA European Environmental Agency
EU European union
EUR Euro
EUTR EU Timber regulation
FAO Food and Agriculture Organization
FIS Forest Information System
FLEGT Forest Law Enforcement, Governance and Trade
FM Forest management
FMP(s) Forest management plan(s)
FMPr(s) Forest management programme(s)
FPD Forest Police Department
FSC Forest Stewardship Council
FWC Framework contract
GFIS Geographic Forest Information System
GIS Geographic Information System
GPS Global Positioning System
GPSTTT GPS Tracing of Timber Tracks
ICP International Cooperative Programme
ICT Information and Communication Technology
IFIS Integrated Forestry Information System
IPA Instrument for Are-Accession
IPARD Instrument for Pre-Accession for Rural Development
IUCN International Union for Conservation of Nature
LLC Limited Liability Company
LPIS Land Parcel Identifications System
LULUCF Land Use, Land Use Changes and Forestry
MAFWE Ministry of Agriculture, Forestry and Water Economy
MKFFIS Macedonian Forest Fire Information System
MEPP Ministry of Environment and Physical Planning
MS Member State
NFP National Forestry Programme

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NPAA National Program for Adoption of Acquis
NPI(s) National Parks’ Institution(s)
NP(s) National park(s)
NRDP National Rural Development Programme
OFP Other (non-wood) forest products
PA(s) Protected Area(s)
PDA(s) Personal Digital Assistant(s) as portable devices
PE(s) Public Enterprise(s)
PENF Public Enterprise “National Forests”
PEFC Programme for Endorsement of Forest Certification schemes
PFOA(s) Private Forest Owners’ Association(s)
PFO(s) Private Forest Owner(s)
PSDF Plan for Sustainable Development of Forests
RD Rural Development
RDP Rural Development Programme
RDR Rural Development Regulation
SDC Swiss Development Cooperation
SETT System of Electronic Tracing of Timber
SFC State Forest Company
SFM Sustainable Forest Management
sFMPs Special Forest Management Plans
SSDF Strategy for Sustainable Development of Forestry
ToR Terms of reference
UNECE United Nations Economic Commission for Europe
UNFCCC United Nations Framework Convention on Climate Change
VPA Voluntary Partnership Agreement
WB West Balkans
WG Working group

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EXECUTIVE SUMMARY
This Study presents Output III of the FWC project “Review of forestry sector in North
Macedonia and preparation of 2019 IPA Project for forestry” and contains: (1) analysis of
current national strategic and policy framework of the forestry and forest-related sectors against
EU principles, strategies and policies; (2) analysis of current legal set-up of the forestry sector
and the forest-related legislation; (3) assessment of compliance of the forest and forest-related
law with EU acquis; (4) recommendations for improvement and harmonisation of the forestry
and forest-related strategic (forestry strategy, national forestry programme and forest-related
national rural development programme) and legal framework, and (5) recommendations for the
activities of the IPA 2019 project “Supporting the reforms in forestry”.
Main outcomes under the above points by the strategic fields are as follows:
1) The Strategy for sustainable development of forestry (SSDF) (from 2006), which
measures have not been implemented until now, with a few exceptions, is still valid and
relevant, both in national and European contexts. In international context, particularly the
conversion of coppice forest into high forests and reconstruction of degraded forests is of
utmost importance. In national context, the key issue which the Strategy actually already
defines, is reorganisation of the forestry sector - by establishing of a new Forestry Agency
and by reorganisation and transformation of the Public Enterprise “National Forests”
(PENF). Our recommended principles and steps towards the reform, elaborated within the
Institutional Study of the FWC project, are thus building right on these Strategy directions.
In that context, the Strategy needs to be extended by the recommended principles and
directions, after they are finally agreed, setting by that the grounds for the indispensable
reforms. The Strategy should also be aligned with contemporary European developments
related to forests, particularly the Green Deal and the anticipated new EU Forest strategy
(2021-2027). The document should then be revived by Government and implemented
through forest legislation and corresponding programme(s).
2) The new National forestry programme (NFP), as a prime programming instrument of
the sector, until now not existing, should be adopted for implementation of the Strategy
measures, similarly to many European countries. Commitment on the adoption of the
programme should be included into the new Forest law. Corresponding budget and other
financial sources, including the ones of international donors and projects, as well as
technical support should be assured for implementation of the measures.
3) Programme of the extended forest reproduction, based on the measures defined by the
Forest law, which are mostly compliant with the forestry measures of the EU Rural
Development Regulation (RDR), has been implemented to extremely low level,
particularly due to non-allocation of the payments by PENF (after 2012). The private forest
owners (PFOs), however, contributed with their funds (i.e. 3% of the sold wood value).
However, due to the missing technical support to preparation of the demanding
programmes, both in the Forest law provision and in the practice, the PFOs could not use
the funds. Consequently, they were used for state forests. The system thus failed almost
completely. The extended forest reproduction concept would, however, still be useful for
the future - if its financing is assured by the entities managing the state-owned forests.
Otherwise, the measures should be financed from other (integral) state budget sources, like
the rural development ones.
4) Forest-related measures under national rural development and IPARD II
programmes, defined by the Agriculture and rural development law, are mostly compliant

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with the forestry measures of the EU RDR (except of co-financing, which is only 50% in
case of restoration of damaged and conversion of degraded forests), but have not been
implemented yet (with exception of 2015), mostly because of lack in technical capacity of
PFOs for preparation of the programmes, as well as lack in forestry capacities of the IPARD
Management Authority and the IPARD Agency. For the new programming period (2021 –
2027), the existent forest-related measures should be retained, correspondingly adapted and
prioritised according to the Green Deal, i.e. getting the restoration of damaged and degraded
forests and the sustainable management with forests the highest priority. A few additional
measures, particularly the ones which would enable implementation the mentioned priority
measures, such as (re)construction of forest roads in damaged and degraded forests, should
be added. The proposed measures within this Study should be finally selected and specified
according to the IPARD requirements, certain measures previously piloted and the
guidelines for applicants prepared.
Main outcomes under the above points by legal acts are as follows:
1. The new Forest law is needed to be developed. The Law should include all corresponding
solutions of the current Law, solutions related to the new forestry institutional model and
the requirements of forest-related EU acquis. The new Forest law should respect the forest
ownership and management rights according to European standards (which is currently not
the case) and be based on democratic, market and social principles. The obligations should
be set in proportional and feasible way. Corresponding balance between the advisory and
sanctioning role of the State should be respected. A number of provisions related to higher
requirements for management with state-owned forests could / should be transferred to the
new State forest management or the State forest company law. Within this Study, a big
number (48) of concrete recommendations for development of the new Forest law has been
prepared, several of them (11) also for harmonisation with EU acquis.
General institutional recommendations for carrying out the Forest law reform are: (i) the
future functions of the State Forestry Administration of the MAFWE, the functions of
future Forest Agency and the functions of the future State Forest Company (SFC) should
be clearly defined and “demarked”, as proposed in the Study; (ii) the administrative forest
function, the private forest governance function, as well as part of the forest guarding
function (the one not related to the forest property) of the PENF, should be transferred,
together with appurtenant employees, to the new Forest Agency, which would be best to
establish by the new Forest Agency law, and (iii) the transformation of PENF into SFC
should be carried out, based on the new State forest management or State forest company
law.
Some recommended solutions for elaboration of the new Forest law, independent from the
forestry organisation model are: (i) the term forest management should be adapted to the
standard PDCA (plan-do-check-adapt) concept; (ii) the clear cut - as main precondition for
sustainable forest management (SFM) – shall be banned in all forests; (iii) the public
participation shall be enabled in the process of adoption of special forest management plans
(e.g. in form of public debate lasting for 30 days); (iv) in case of surface marking of the
anticipated clear-felled areas in state-owned forests, recording of all trees inside the area
borders should be assured - in order to prevent the risk of grey forest economy, illegal
harvesting and corruption; (v) the existent restriction on selling of timber on the stump from
state-owned forests should be released accordingly (e.g. up to 25 – 30% of annual felling),
under sustainability requirements; (vi) the benefits from collection of other (non-wood)
forest products should be enabled also to private forest owners or their associations; (vii)
for marking of trees, measuring and stamping of wood assortments in private forests,

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private licenced entities should be authorised (again), while performing the administrative
procedure for private forest owners (after some level of reasonable deliberation) should
became the responsibility of the Forest Agency; and (viii) the extended forest reproduction
programme should include also the restoration of damaged forests, as a crucial measure in
the context of climate change mitigation.
2. The new State forest management law or the State forest company law, depending on
which title will be finally chosen, should address the following main issues. (i) definition
of principles (e.g. sustainability, multifunctionality, efficiency and transparency) and
strategic goals and requirements for the company; among them also a requirement to
exercise exemplary forest management and a requirement to achieve the best economic
results; (ii) specific requirements for the company on the management with the forests; (iii)
requirements, rights and financial and other obligations of the company to the State as forest
and company owner; (iv) definition of activities of the company and financing of its
operations; (v) definition of methods of forest utilisation and selling of timber, enabling
corresponding flexibility in the forest management and de-monopolisation of wood market;
(vi) establishing, purpose, management and use of the state budget Forest Fund; (vii)
transfer of forests as assets from PENF to the State, and (vii) provisions on restructuring of
the PENF, including transfer of needed employees to the Forest Agency and the manner of
resolving the redundant employees.
3. New Forest Agency law would be needed according to current North Macedonian legal
practice particularly the case, if the Forest Agency follows the fully integrated model - as
the best solution according to our recommendations within the Institutional Study, i.e. if it
includes the forestry and hunting inspection, the forest police and a part of PENF’s forest
guarding service. In that case, only general provision on responsibility of the Agency would
be regulated by the Forest law, while the agency’s tasks and other key issues (as
recommended and agreed within our Institutional Study) would be part of the new Forest
Agency law. Consequently, also the Law on organization and work of state administration
bodies should be adapted accordingly.
4. Forestry and hunting inspection law: In case the Forest Agency would include the
forestry and hunting inspection, the Forestry and hunting law provisions would be included
into the new Forest Agency law. Independently on that, the forestry faculty education for
the director or chief inspector should be required. In case, the forestry and hunting
inspection remains as independent body, the cooperation with the Forest Agency, the Forest
Police Service (if not part of the agency) and the Forest Guarding Services (if not part of
the agency), should be required.
5. New Forest police law would be needed in case the forest police remain within the
MAFWE (as a less favourable solution according to our recommendations within the
Institutional Study) and upgrades its status to a directorate. The Law should require the
forestry faculty education for the director or chief policeman/women and the cooperation
with other authorised forestry bodies, particularly the new Forest Agency, the State
Forestry and Hunting Inspection (if not part of the agency) and the Forest Guarding
Services (if not part of the agency).
6. The Law on reproductive material from forest species was already partly harmonised
with the EU acquis. Currently, the Law is under revision. In order to achieve a full
alignment with the acquis, the Draft Law - resulting from that revision - should be assessed
by an international specialist and the drafting of three by-laws supported, in accordance
with the EC implementing regulations.

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7. Agriculture and rural development law need a significant systemic improvement in
terms of definition of rural development measures. Instead of defining all of their specifics
and conditions for use in the Law, which makes the whole system inefficient, these should
become subject of by-law, programmes and guidelines for applicants. Only general
definition of possible measures for the programme should be part of the Law. In that
context, the provisions on the existent forest-related measures should be adapted and a few
newly recommended ones (within this Study) added.
8. The Hunting law is currently under revision. A key problem of the Law is too heavy
commercialisation of the hunting concessions indirectly causing a much too high pressure
of concession holders on their huntable game species populations (by shooting),
endangering the viability and conservation status of the species. The Law is almost fully
harmonised with the EU Habitats and Birds directives. It is however recommended to carry
out an international expert review anyway when the draft amendments to the Law are ready.
9. Nature protection law: In order to assure the needed integration of biodiversity
conservation into the forestry sector, as well as the formal cooperation of forestry sector
and its valuable contributions to implementation of the National biodiversity strategy, the
Law should add the competences of the minister, responsible for forestry in cases of: (a)
adoption of decision on the ban on use of natural resources when the favourable
conservation status of a habitat or species is endangered; (b) preparation of proposal for
establishing of Natura 2000 network, including identification of the forest habitat types,
based on mutually agreed sectorial criteria, and (c) definition of methodology for
elaboration on the special programme for management of forest habitats and ecosystems
for Protected Areas (PAs). In order to regulate the conservation and management of forests
within PAs in contemporary way, the Law should abolish the general ban on management
with forest ecosystems within the PAs - to enable the SFM (which is actually already going
on) in the zones which are, or should be categorized for sustainable use according to IUCN
criteria.
10. New legislation assuring full implementation of EUTR and FLEGT regulations should
be adopted in order to assure full implementation of EUTR regulations, as well as the start
of implementation of FLEGT regulations, all of them in the period after the accession of
the Republic of North Macedonia into EU. In particular, the legal act shall define: (a) the
competent authorities for administrative, technical controlling / monitoring and (EU)
reporting purposes; (b) competent bodies for supervision of legality and origin of wood
along the forest and wood value chain (in case of EUTR), or supervision and control of the
FLEGT licences for wood consignments imported from the VPA countries (in case of
FLEGT), and (c) to define proportionate, effective and dissuasive penalties for violation of
the regulations.
11. Criminal code: In order to efficiently prevent the forest crime, the following changes
should be made to the Law: (a) the forest devastation should be defined in a way that only
the large extent would be considered as a criminal offence; (b) minimum quantity of theft
of wood from forests, which is considered as crime, should be significantly increased (from
current 1 m3
) in order to enable the Criminal court to concentrate on real criminal cases,
and (c) to prescribe the fines for theft of wood also for legal persons.
Recommendations for the activities of the 2019 IPA project "Supporting the reforms in
forestry", generally adopted by the Commission Decision on IPA Annual Action Programme
(APP) 2019, and their sub-activities, are the following:

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1) Improving the strategic framework of the forestry sector including the forest-related
part of the rural development which includes: (a) updating the SSDF as a prime policy
and strategic document; (b) development of the new NFP as a prime programming
document for implementation of the SSDF; (c) elaboration of the new national Plan for
sustainable development of forests (PSDF); (d) adaptation of the methodology for
elaboration of forest management plans, including mapping of forest functions (to be
introduced) and corresponding testing of the methodologies; (e) development and testing
of guidelines for implementation of sustainable and close-to-nature forest management
systems in certain forest types and forms, and (f) development of forest-related component
of IPARD III programme (2021-2027) and forest-related rural development measures that
would be funded by the national budget (as pilot project).
2) Improving the compliance of forest legislation with the EU acquis and the
requirements on forestry, which includes: (a) development of a new Forest law based on
national specifics and requirements of EU acquis and (b) development of a new State forest
management or company law including restructuring and transformation of the PENF into
the SFC. The support to harmonisation and development of other forestry legislation was -
due to limited funds of the IPA 2019 project - recommended to be provided by other future
EU-funded projects (e.g. TAIEX).
3) Improving the institutional set-up and functioning of the forestry sector, with
particular attention to the establishment of the Forest Agency and the restructuring and
transformation of the PENF, which includes: (a) optimising the proposed sectorial
(re)organisation model and functions with particular attention to the status and tasks of the
new Forest Agency and the new SFC; (b) building the professional capacities of the forestry
sector institutions / organisations for the implementation of the reforms and efficient
performing of their functions; (c) developing a plan for restructuring of PENF and its
transformation into the SFC as limited liability company (LLC); (d) developing a plan for
establishing the Forest Agency, including the transfer of corresponding functions and
employees from the PENF, and (e) elaborating a (preliminary and final) assessment of the
state budget needs for establishing the new institutional system of the forestry sector, the
economic feasibility / sustainability of the new SFC, as well as the fiscal impact of the
optimised sectorial (re)organisation model.
4) Establishing the Integrated Forest Information System (IFIS), which includes: (a)
upgrading the existing system of electronic tracing of timber (SETT), currently part of
GFIS, particularly by the GPS tracing of the timber tracks; (b) adapting the forest
management planning information system (currently functioning as GFIS) according to
previously adapted forest inventory and planning methodologies; (c) adapting the forest
protection database on biotic, abiotic and anthropogenic damages, including forest fires (for
which the information system - MKFFIS - already exists); (d) establishing the web-based
forest cadastre database and its electronic exchange with the Land Parcel Identification
System (LPIS); (e) establishing the digitalised register of forest infrastructure and provision
of a software for projecting of forest roads; (f) introducing of a previously developed
wildlife / hunting information system (SPIS - Spatial Planning Information System for the
Ohrid-Prespa Ecosystem protection); (g) specifying and designing the IFIS architecture,
integrating all the above components at the national level including, among others, a special
metadata module for the needs of national planning, decision-making, monitoring and
(national and international) reporting, and (h) establishing of a functional, web-based IFIS
according to the agreed design.

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5) Enhancing the prevention and control of biotic, abiotic and anthropogenic forest
damages, as well as the forest biodiversity conservation, based on best European
practices, including: (a) improving the methodology for collection and processing of data
on forest damages and developing and testing the methodology for establishing of forest
fire protection belts, (b) promotion the forest fire protection and (c) development of a
concept of integration of biodiversity into the forest management planning methodology,
as well as a proposal of national criteria for the identification of forest habitat types of the
EU importance (as candidates for the future Natura 2000 framework).
All key recommendations of the Study have been generally agreed with the WG of the
MAFWE and presented to a wider stakeholder’s audience. The relevant comments have been
included into the Study. The Study thus offers extensive technical backgrounds for the reform
of the strategic and the legal framework of the forestry sector and beyond, as well as for
planning and implementation of the anticipated IPA 2019 project “Supporting the reforms in
forestry”. It should, however, be read jointly with (our) another FWC Study – “Analysis of
forestry sector developments and institutions”.

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1. INTRODUCTION
The overall objective of the project is to facilitate the implementation of EU-related strategies
and policies and to boost development of the forestry sector in the Republic of North
Macedonia. The specific objective of this assignment is to increase effectiveness and efficiency
of the IPA funds, by preparing adequately the 2019 IPA Forestry project (1,3 million EUR as
grant) and by providing assistance to Ministry of agriculture, forestry and water economy
(MAFWE) to progress in the reforms in the forestry sector before the project starts
implementation. The Terms of reference (ToR) for this assignment anticipated two key experts
– one for forestry and one for agricultural analytics (related to rural development) - to assist in
the:
A. Preparation of the guidelines for the 2019 IPA Call for proposal "Supporting the
reforms in forestry" (1,3 million EUR grant);
B. Provide with assistance in the sector before the 2019 "Supporting the reforms in
forestry" project is launched.
The requested expert assistance activities under point B) above were the following:
1. Study the sector developments, past and present including socio-economic role,
institutional and legal set-up, stakeholders, etc.
2. Examine sector strategy, policy choices, and national support measures and actions
against EU related principles, strategies and policies and make recommendations
for the activities of the 2019 "Supporting the reforms in forestry" project.
3. Recommend forest-related actions that support sustainable forest management which
could be funded under 2019 "Supporting the reforms in forestry" project.
4. Perform a preliminary assessment if the current legal framework is compliant with
EC regulations, and whether State forest institutions are capable of implementing the
National forest policy, legislation, and National forest programme in accordance with
EC regulations and standards.
5. Develop recommendations for improvement of national policy choices (legislation,
support measures, etc.) and for the role and the capacities of the relevant institutions,
such as MAWFE and relevant public entities.
6. Identify gaps with forestry sectors in comparable EU Member States, preferably with
the ones that have more socio economic and geographic similarities in the specific
sector.
The required project outputs based on the above activities were:
I. Prepared package of guidelines for the 2019 IPA Call for proposal "Supporting the
reforms in forestry" based on thorough assessment and in coordination with EUD and
MAFWE.
II. Analysis of the forestry sector developments in North Macedonia and identification of
the needs for future assistance.
III. Analysis of the current legal framework in the forestry sector in North Macedonia
and provision of concrete recommendations for improvements.
The subjected Study includes the Output III with corresponding topics and contents
anticipated by the above activities (in bolded text). The recommendations and explanations for
the activities (and sub-activities) of the anticipated proposal of IPA 2019 project “Supporting
the reforms in forestry” are also part of this Study.

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2. APPROACH, MATERIAL AND METHODS
Following the ToR which requires analyses, examinations and assessments, as background for
concrete recommendations, also the approach to development and elaboration of the Study was
analytical. In terms of expertise, a holistic expert approach dominates in the assessments and
particularly recommendations, although also a specialistic one, based on the backgrounds and
experiences of the Study experts, is used (e.g. when the forest law analyses are in question).
As the national strategic documents and particularly the legal, as background “material” for
elaboration of the Study, is very extensive, the analyses are focused on key issues which are
expecting to have important influence on forests and forestry and the anticipated reforms. In
case of the forest sector, the analyses are correspondingly deeper and include much, actually
all relevant issues. Consequently, this is influencing also the structure, contents and scope of
the Study.
The Study approach in presenting the individual analyses of the issues avoids, as much as
possible, to present the contents form the analysed documents and acts within the main texts.
Instead of that, the needed contents (for understanding the analyses) are mainly placed into the
footnotes, releasing by that the main texts and focus of it on critical analyses and conclusions
related to the key issues. For rationality reasons, the main focus of the analyses is on
weaknesses, as this is also the background purpose of the Study. However, in order to present
a wider, i.e. also positive pictures, also the strengths are always pointed out, although in
much shorter way (except e.g. in terms of the Forestry strategy).
Concrete “materials” for the analyses are thus the national strategic documents (particularly
the Forestry strategy) and programmes (particularly the programme for extended forest
reproduction and the national rural development and IPARD II programmes) and the legal acts
of the forestry sector (particularly the Forest law with more than 20 by-laws relevant for
purpose of the Study, and other three forestry laws), as well as of the forest-related sectors
(particularly the Agriculture and rural development law of importance for rural forestry and
several other forest(ry)-related laws). Consequently, these “material” for analyses and
elaboration of the Study is very extensive, requesting also an extensive, holistic expertise in
legal terms.
Apart from the mentioned analyses of the documents and acts, the insights from several field
visits (to the PENF’s local branches and an NPI, and their forests), the cognitions from
personal communications with representatives and technical staff of the institutions, the
reasoning based on obtained data and other sources, indirectly indicting the problems in
implementation of forestry strategic and legal framework and the reform needs (such as a
proposal of the PENF on the Forest law amendments), have been used as bases for the expert
assessments and recommendations. And, of course, a crucial background for the strategic and
legal analyses was in the familiarity and long-year experiences (of the Forestry expert) in
the development and implementation of national forestry systems of other WB countries,
particularly the most similar ones to the Republic of North Macedonia, as well as the
familiarity with the international and EU forest-related law.
The project methodology anticipated the cooperation and consultations with the beneficiary
and the stakeholders individually and particularly through their working group (WG),
appointed for that purpose. Apart the WG meetings also final presentation of the results to
wider stakeholders was anticipated.

14
3. RESULTS OF THE ANALYSES
3.1. Analysis of current national strategic and policy framework of the
forestry and forest-related sectors against EU principles, strategies
and policies
3.1.1. National strategy for sustainable development of forestry
3.1.1.1. Vision, general goal and strategic directions
The vision, general goal and development directions of the Strategy for sustainable
development of forestry (SSDF) (2006 - 2026), which was adopted by the Government, are
still attractive and valid, both in national and European contexts. However, majority of
elements of the vision, such as (a) competitive forestry sector, (b) increased forest area, (c)
tended and protected artificial stands and improved quality of forests (biologically and
economically), (d) transformed degraded forests into high-forest and (e) eradicated illegal
felling and other harmful activities, are not materialising. Also, (f) economic benefits from
non-wood forest product for the forestry sector and the state remain insignificant, while the (g)
generally-beneficial functions of forests were not recognised by society and even not
considered in forestry (planning and doing). Among other vision statements, the forestry sector
also does not (h) assure prominent salaries to forest employees and workers. Only a system (i)
for early warning and prevention of forest fires has been established according to the vision.
The main goal and appurtenant directions of SSDF, notably on (1) expansion,
improvement of the quality and protection of the forests, (2) multifunctional forest
management, (3) sustainable forestry development and (4) increasing the contribution of
forests goods and services to the quality of rural life, are in line with contemporary EU
principles and guidelines (except for increasing of the forest coverage, which is – according
to Green Deal - generally not a joint European objective any more.
3.1.1.2. Objectives and measures by strategic fields
From the national aspect, as well as from aspect of the anticipated IPA 2019 »Project for
forestry«, the following objectives and/or measures (by individual strategic fields) of SSDF are
still1
topical:
Forests:
1. Encouraging the reforestation and afforestation, and regeneration of degraded forests;
2. Enforcing tending and thinning in young forests, speeding up of the conversion of coppice
forest into high forests and reconstruction of degraded forests;
3. Increasing the access of forests through road construction using environmental acceptable
methods;
4. Quantifying the total value of forests and their functions and developing instruments for the
provision of new income from non-wood forest products;
1
That is why, they are presented in the main Study’s text.

15
5. Encouraging the utilisation of non-wood forest products through integrated2
forest
management;
Wildlife / game:
6. Establishing and maintaining of wildlife / game populations of proper sex and age structure
in sustainable way, including, amongst others, setting-up of a continuously updated
database for the wildlife / game stocks in hunting grounds, by regions and hunting
management areas, and its continuous updating;
Forest industry:
7. Promoting the establishment of economically viable forest industry in line with the wood
supply and demand, through a number of measures;
8. Creating a favourable legal, economic and institutional environment for effective and
competitive forest industry, through a number of measures;
Forestry institutions:
9. Reorganization of the Forestry Department in the MAFWE and establishment of an Agency
for Forests and Hunting, as well as creation of an adequate governing structure for forest
resources and wildlife.
10. Establishing of a governmental institution and/or licensed independent institutions
responsible for forest management planning in hunting grounds management planning;
11. Fast transformation and reorganization of the PENF due to weak results of the past work.
12. Strengthening the administrative and technical capacities of the State Forestry and Hunting
Inspectorate and the Forestry Police in the MAFWE;
13. Implement a system of measures (economic, financial, legal) to restrict corruption, illegal
use and trade in forest products and other illegal activities in forestry;
Forest inventory, monitoring and information:
14. Introducing a common National Forest Inventory and Monitoring System on forest
recourses;
15. Introducing Integrated Forestry Information System (IFIS) based on Geographic
Information System (GIS) for the needs of SFM;
Forest financing:
16. Developing and implementing an effective model for financing the forest sector, providing
an optimum balance of state subsidies and revenues from commercial activities;
Management with private forests:
17. Creating an efficient system of support to private forest owners (PFOs), using the
experiences from the EU countries, particularly by provision of financial support for
afforestation, regeneration, forest protection, management planning and certification, by
introducing the possibility for licensed entities and individual professionals to provide
services in private forests, and by support to the establishment of forestry advisory services,
as well as by strengthening the technical capacity of the PFOs’ organisations;
Protective forest function:
18. Maintaining the protective forest functions and increasing contribution of the forests to
environment protection, water and soil protection, the protection of people and
infrastructures against natural hazards, local and global greenhouse gas emission reduction
etc., among others, through improvement of forest technology and utilization methods in
2
Management with the space and all resources (forests, wildlife, non-wood forest products and services,
rangeland, water, minerals, etc.) by one entity.

16
order to minimize damages to the environment, and by increasing the area under forest and
implementing appropriate sylvicultural systems that increase the CO2 sequestration;
Biodiversity conservation:
19. Conservation and restoration of the components of biological and landscape diversity of
forests, through integrating conservation objectives into forestry practices, identifying the
most favourable form of management of protected areas; promoting the restoration of forest
biodiversity in degraded forests and plantations; enhancement of incentives for natural
regeneration, and promoting the forest management planning practices specifically suited
to the protection of the environment;
Social aspects of forestry:
20. Contribution of the forestry to employment creation, livelihoods and poverty reduction,
particularly by supporting the development of small local businesses for services in
forestry, local processing of wood and non-wood forest products, and promoting of forest
ecotourism;
Rural development:
21. Creation of opportunities for undisturbed economic development of rural areas and
affirmation of the tourist-recreational function of the forest.
Some of the above objectives and/or measures are related to the priority areas and
measures of the EU Forest strategy (2013-2020)3
, such as the measures No. 1 – 3 (related to
contribution of forests to climate change mitigation), No. 14 and 15 (related to forest
information and monitoring), No. 18 - 19 (related to protection of forests and enhancing of
ecosystem services), and No. 20 – 21 (related to supporting our rural and urban communities).
Other measures have nationally-specific nature. The SSDF envisages the action plans to
be adopted for its implementation. The first one was otherwise adopted by then Government
(together with the Strategy), but never implemented. Consequently, almost no any measure
of the SSDF has been implemented until now. The SSDF document was even not available4
amongst the background documentation for the FWC project in the MAFWE, although still
valid and very much relevant.
3.1.2. National forest-support programmes’ measures
3.1.2.1. Programmes of extended forest reproduction
Measures that could be subject of support from the national forestry budget are the measures
for extended forest reproduction, defined by the Forest law5
. The analysis of formal compliance
of the measures with the EU forest-related principles and policies will thus be presented (also)
within the chapter dealing with forest law compliance (3.3.1). Bellow, however, only the
measures included and implemented under the annual programmes of the extended forest
reproduction are presented and critically assessed. The measures were: (a) afforestation’s of
bareland and erosive land, (b) tending of forest cultures (plantations), (c) granting seedlings to
PFOs (for afforestation), (d) post fire forest rehabilitation measures and (e) provision of ICP
Monitoring and Diagnostic-Prognostic-Reporting Service (by the Forestry faculty). The
33
http://eur-lex.europa.eu/resource.html?uri=cellar:21b27c38-21fb-11e3-8d1c-
01aa75ed71a1.0022.01/DOC_1&format=PDF
4
The Forestry expert found it on FAO server.
5
"Official Gazette of the Republic of North Macedonia" nr. 64/09, 24/11, 53/11, 25/13, 79/13, 147/13, 43/14,
160/14, 33/15, 44/15, 147/15, 7/16 and 39/16, articles 94-96.

17
measure on (f) melioration of degraded forests, which is contemporary a crucial one, has
never been implemented.
The measures under (a), (b) and (d) are formally in line with the measures of the EU RD
Regulation (2014 - 2020). Also “measures” under (c) and (d) are in the context of the EU
forest-related policies and regulations. However, as per the trend analysis of the executed
measures after 2010 (in natural and financial terms) within (our) other of the FWC project
“Review of forestry sector in North Macedonia”, it could be concluded that the
implementation level was extremely low (after 2012), meaning that measures had
minimalistic impact on the forest improvement. This is particularly true for private forests,
as their owners could not use the financial sources, although they provided the (3%)
contribution payments. The reason was in the lack of technical support to preparation of the
demanding programmes, due to a missing provision for such a possibility in the Forest law.
The missing technical support is thus not in line with the EU principles.
3.1.2.2. National rural development and IPARD programmes
National rural development programme (NRDP), as an annual programme is under
implementation for almost 15 years. Its main objective from the very beginning was to pilot
the rural development measures that later on are included into the IPARD programme. Thus,
the NRDP is not overlapping with IPARD. Currently NRDP has a long list of RD measures6
.
Forest-related measure that is included into NRDP, is measure “122 - Investment for
improving the economic value of the forests”. This measure has the same title as the one of
the EU RD Regulation 2006 – 2013 and is still relevant for current and future programming
prospective. However, the measure had been implemented in 2015 only, while after that
not at all. The main reason was in the missing technical support to PFOs for preparation of the
applications.
The IPARD Programme (2014 – 2020), under the measure “Farm diversification and business
development”, defines as eligible investments the “investment in processing of forestry
biomass” or investment in “fast-growing tree plantations for timber and biomass”, with 50%
of co-financing7
. In addition, under the IPARD Programme’s measure, “Investments in rural
public infrastructure” that is currently in the process of accreditation, the eligible investments
are “construction / rehabilitation of agriculture and forest road network” (including fire
prevention passages) and “construction / rehabilitation of existing municipal roads and
bridges”, which include also forest roads. Scope of the measure is however not particularly
significant for (private) forests, as it targets the rural public8
roads only. The central forestry
measure of the EU RD Regulation (2014 – 2020), i.e. “Investments in forest area
development and improvement of the viability of forests”, has however not been included
into the IPARD II Programme.
6
http://www.ipardpa.gov.mk/Root/mak/default_mak.asp
7
Up to 650.000 EUR
8
Taking into account that forest roads have not the public status.

18
3.2. Analysis of current legal set-up of the forestry sector and the forest-
related legislation
3.2.1. Forest law with by-laws
3.2.1.1. General provisions
The general issues which the Law regulates, i.e. the subject9
, scope and objective10
of the Law,
the common interest in forests, the public interest in forest activities, the categories of forest
ownership11
, the definitions of terms, among them of the forest12
, of the administration13
and
the management14
with forests, the forest functions15
and the forest purpose16
, are the standard
forest law provisions. The analysis shows that:
• The objective, based on contemporary European definition of sustainable forest
management, gives the Law the character of a modern, sustainable forest law.
• It is appropriate in terms of forest ecosystem concept that the scope of the Law includes all
forests, regardless of their ownership and purpose, i.e. also the forests in protected areas.
• It is important that the Law defines that forests are in common interests and particularly
that the planning, administration, management and forest guarding, as institutional forestry
functions, are in public interest. The forest police function, as exclusive one for North
Macedonia, is not (explicitly) mentioned. Among the functions, however, the state support
(to forests and forest owners) as a standard forestry function is missing.
• The forest definition with minimum land area of 200 m2
, if applied in that way, would be
the most generous forest definition among European countries, i.e. providing maximum
possible forest coverage. Apart from that also the non-forest land, such as agricultural or
even bare land, functionally related to forest (management), is considered as forest land,
which is correct in terms of forestry competencies, but not in the forest-ecological or
9
Planning, administration, management, silviculture, protection and utilisation (hereinafter referred to as:
management with forest), the guarding of forests as natural wealth and as forest land, the exercising of common-
benefit forest functions, the right and obligations on forests utilisation, financing, and other issues of importance
to forests and forest land ...
10
To permanently preserve the forest area, increase the forest value and ensure maximum forest growth under
given natural site conditions, while respecting the European definition of sustainable forest management.
11
Only state and private ownership recognised.
12
Forest is a forest ecosystem that exists on forest land overgrown with forest species of trees and shrubs, bareland
adjacent to the forest, as well as other bareland and meadows within the forest, the forest nurseries, the forest
roads, the seed plantations, the fire cross-sections in forests, the wind belts over an area of more than 200 m2
, as
well as forests in protected areas. The forest also consists of young stands and forest cultures covering an area of
more than 200 m2
, as well as areas that are part of the forest which are temporarily not overgrown, as a result of
human impact or natural disasters, where natural restoration has begun.
13
Includes strategic planning, organization and execution of administrative affairs, professional and advisory
work to support entities that manage forests, monitoring and supervision.
14
Includes silviculture, protection and utilisation of forests, through rejuvenation, tending, protection, raising new
forests and use of forests and forest land, as well as other activities for maintenance and improvement of forest
functions.
15
The classification recognises the production, the protection and the common-benefit (“општокорисните”)
forest functions which are determined by the forest management plans.
16
The classification recognises the production and the protection forests, and the forests of special purpose. The
forest propose is determined by the general plan for management of forests.

19
content terms. The definition of forest also does not contain the second main
international (FAO) criterium, i.e. minimum 5 meters of tree height in its mature stage.
• The joint term management with forests (“стопанисување со шумите”), given within
the scope of the Law, has different meaning of that term amongst the definitions. Namely,
the meaning of the management with forests within the scope of the Law includes also the
planning and administration, while the meaning as per the very definition not. This brings
certain legal confusion at the very beginning of the Law. The key question derived from
the first, wide meaning of the forest management could then read as “who actually manage
with forests: the very state or the forest owner (including the state on its behalf)?”. Similar
confusion is actually common also to some other West Balkans (WB) countries, where the
essential elements of the management with (private) forests are still kept as direct
responsibilities of state administrations or their authorised entities.
• The definition of the management with forests (Article 7) is however much narrower as
it includes its implementation component, i.e. the forest operations only. The definition is
otherwise similar to other WB countries, with an exception that the forest utilisation sub-
activities, i.e. the felling of trees, the hauling (“дотур”), the manipulating, dispatching and
transporting of wood assortments, as well as building and maintenance of the forest
infrastructure and the timber selling / trade) are not listed in the Law.
• The definition of administration with forests (“управување со шумите”) (Article 8)
actually defines the role of the state administration (“државна администрација / управа«)
of forests, which is appropriate if interpreted in that sense.
• The classification of forest functions is a usual one for the WB and CEEC countries. The
term “forest functions” is actually analogous to contemporary “forest ecosystem services”.
The fact that the common-benefit (“општокорисните”) forest functions (CBFFs) do not
include the protection functions is a North Macedonian exception.
• The classification of forest purpose (“намена на шумите”) is as usual for the CEEC
countries. As it is determined by the general plan for management of forests in the Republic
of North Macedonia (which was not adopted, as stressed also latter), the designation of that
key forest categories still remains open.
3.2.1.2. Preconditions for sustainable management with forests
The preconditions for sustainable management with forests, which include various bans,
among others on the clear-cut17
(“чиста сеча“) and the cut of rare forest species18
, the ban on
collection of certain other (non-wood) forest products (above 1 kilo per person) without the
permission of forest owner or user, the restrictions in change of forest purpose (пренамена)
and financial compensation19
for that change, the acquisition of forest land tenure (“право на
службеност“) rights, the determination20
and prioritisation21
of the forest functions, and the
17
Clear-cut means the removal of all or nearly all trees on the area whose distance between the edges of the rest
of the stand is greater than two middle stem heights of the stand.
18
With some exceptions, for example in cases of decline or maturity of the trees, or expressed public interest,
subject to approved by the competent authorities.
19
In the amount of cost for afforestation of analogous land area plus the value of the removed wood volume and
the lost increment (up to the maturity of the stand) – all of this increased for 20 or 30% on behalf of the loss of
other forest functions.
20
Within special forest management plans.
21
Within special forest management plans and forest management programmes.

20
obligation on restoration22
of deforested (degraded and devastated) areas, could be assessed as
follows:
• The bans to protect the forest against adverse human impacts are quite appropriate. The ban
includes also clear-cut for which the definition is correspondingly strict. However, the
clear-cut as a regular system of management in low forest is not forbidden. In that
context, North Macedonia is an exception among WB countries, which all have the clear-
cuts forbidden (except in case of conversion of coppice forest or rehabilitation of damaged
forest). The Law thus allows regular clear-cut in the low forest using coppicing way of
regeneration, which by itself lead to severe degradation of future coppice forest
generation(s) and is considered as the most unsustainable way of the forest management.
Consequently, forestry with large-scale clear-cuts could not be considered sustainable in
our region.
• The ban on cutting the rare forest species is very important, showing that forestry also
takes care for protection of nature. In future, however, this provision should be harmonised
with the ban on other rare and endangered plant species within the Nature protection law
(and probably be moved to that law).
• The restrictions for change of the forest to non-forest land are corresponding, while the
methodology for calculation of the compensation is partly unclear and unfeasible (in case
of 10-times compensation value calculation). The Law also does not provide an obligation
for the forestry administration to collect the data and keep the records on realised
compensation payment amounts, as the main tool for creating the policy in this regard
(having in mind that these means are to be used for establishing new forests).
• It is usual for the region that the determination and prioritisation of the forest functions
should be carried out within the FMPs. This is however not implemented yet. There is no
methodology for that. Also, a question on possibility of the public and the forest owners’
participation in the process of determination of forest functions arises (because the
participation in the process of adoption of FMPs is not enabled).
• The obligation for forest owners and users on restoration of degraded and devastated
forests, regardless of the causing agent, is ecologically well in place, while legally and
economically not. Namely, it is not legally correct to obligate, unconditionally, the forest
owners for restorations caused by unknown third persons. Large-scale restorations are
also economically not feasible without corresponding state aid through appurtenant
restoration programmes. Also, the provision by which the state administration has right to
carry out the restoration on behalf of the owner or user, is not feasible, unless there is a
remarkable state budget available for such intervention. Consequently, this provision was
not implemented by the forest owners, while by (state) forest users to the minimum extent
only, dependant on the amount of available (extended forest reproduction) funds. By the
state administration, this provision was not implemented at all.
22
The forest owners and users are obliged to afforest burned forests, areas where natural regeneration and
afforestation have failed, as well as areas where devastation (illegal clear-cutting, clearing of forest land or
illegal cutting of rare tree species), within a period of two years from the deforestation. If the owners and
beneficiaries are unable to implement the measures, these measures shall be implemented by the state
administration responsible for forestry, or legal person that it will authorize, to burden the owner and the user of
the forest.

21
3.2.1.3. Forest and forestry planning
The provisions on the forest and forestry planning, defining the adoption of the national
strategy for sustainable development of forestry and the general plan for management with
forests, and obligations on performing the national inventory of forest resources, elaboration
of the special forest management plans (sFMPs)23
and the forest management programmes
(FMPrs)24
, as well as the annual plans for management with forests and the execution plans
(for management with forests), along with their adoption procedures25
and records’ keeping
obligations, are generally appropriate. Looking more into the details, it could however be stated
that:
• The Law does not prescribe adoption of the regional forest development plans, or at
least the regional level to be integrated into the general plan for management with forests,
i.e. that the national plan would contain certain specifics by the regions.
• In terms of implementation of the planning framework, it is known that the national
forestry strategy was adopted (in 2006), while the national forest inventory was not
carried out and the general plan for management with forests never elaborated.
Because of missing national forest inventory, the country has no contemporary and
particularly no reliable data on forest condition at national level, while for the private
forests and the forest areas out of sFMPs no any recent information exists. Consequently,
the country could not satisfy the international forest reporting requirements (such as
of FAO, UNECE & Forest Europe).
• Some important obligations of the Law, such as determination of the forest functions, the
forest purpose categories and the systems of forest management, which are crucial for
sustainable management and development of all forests, also remain unimplemented. The
methodology for determination and mapping of forest functions (within the sFMPs), as
the main platform for multifunctional forest management, has also not been developed yet.
The sFMPs and the FMPr are elaborated based on given methodologies (by the two
rulebooks), which are however still classical, i.e. monofunctional ones.
• The obligation of the forest owners and users to implement the goals, measures and
activities envisaged in the forest planning documents, although declarative only, is not
realistic26
, neither appropriate for market democracies (where this is an economic, rather
than legal issue).
3.2.1.4. Public participation in, and access to the forestry planning documents
The provisions on the public participation enables the stakeholders and the general public to
provide influence on the planning documents within the adoption procedure. Detailed
considerations however show that:
23
Obligatory to be assured by forest users / managers and forest owners for all forests over 30 hectares in size,
based on the methodology defined by appurtenant rulebook.
24
Obligatory to be assured by forest users / managers and forest owners for all forests between 10 and 30 hectares
in size based on the simplified methodology defined by appurtenant rulebook.
25
Approval by the Ministry responsible for forestry.
26
Having in mind that the sFMPs are never fully implemented in practice, particularly with regard to forest
investments (expenditures).

22
• The National Forest Council27
for monitoring of the sustainable administration, planning,
management and guarding of forests and forest land and appurtenant decision making has,
however, not been established. Thus, also implementation of the national forestry strategy
has not been monitored.
• Wider public participation is enabled by the Law in the strategic-level of planning only,
i.e. the national forestry strategy and the general forest management plan; the participation
in the adoption procedures of sFMPs is not enabled, which is not in accordance with the
international and EU environmental requirements. The participation at this level is even
more essential than participation at the strategic level.
• The Law provision on the public access enables obtaining the forest management planning
data only, according to a previous request and upon certain payment for preparation of the
data, based on a special rulebook. It should however be mentioned that provision of the
data for PFOs and the state institutions is gratis. The rulebook is also implemented in
practice. Public access to the (whole) plans or at least to their pubic summaries (which are
not being prepared), as a contemporary international standard is actually not enabled.
3.2.1.5. Planning of forest protection against fires
The new provisions on the planning of forest protection against fires, by adoption of the
National plan28 for management of fires in open space and establishing of the appurtenant
National Committee and the working groups for implementation of the plan were a very
ambitious legal “undertaking” of the forestry sector towards “achieving safe, effective and
coordinated open fire management, as well as the implementation of common standards and
operational procedures of all participants in the fire protection management process” (Article
40). However, the plan has not been adopted by the Government, although proposal of it has
been prepared (within an FAO project). Consequently, the National Committee and working
groups have not been established. Thus, the implementation of the Law provisions completely
failed. The main reason was in the fact that the state forestry administration had no (human
and financial) capacities to take over coordination the implementation of the plan, which is still
the same. Realistically, such a mission, normally more appropriate for specialised fire-fighting
state agencies, went much beyond the (human and technical) capacities of the state forestry
administration.
27
As an advisory body to the Minister in charge for state forestry administration affairs.
28
According to the Law, the National plan for management of fires in open space in particular should contain
the following elements:
• history and current situation with open fires;
• planning fire and resource management;
• measures for education and raising public awareness for fire protection;
• fire prevention;
• degree of fire hazard and early warning system;
• preparatory measures for fire protection;
• activities before the fire season;
• early detection, reporting and initial response;
• initial attack, localization and extinguishing of the fire;
• management of combustible material;
• management of the burned area and
• entities involved in the implementation of the national plan and activities to be undertaken.

23
3.2.1.6. Implementation of forest management
Analysis of the Forest law provisions related to the way of, and obligations and restrictions in
implementation of the forest management activities is presented by following sub-activates: (a)
the silviculture, (b) the protection of forests against biotic and abiotic factors and (c) the
utilisation of forests, with their sub-sub-activities.
Silviculture
The provisions on silviculture (“одгледување”) include, among others, sustainable
prescriptions of ways and measures29
, the extent30
and the time frame31
for implementation of
them. However, the most important measures for management with low forest forms, such
as carrying of thinning and (indirect) conversion of low / coppice forest into high forest
forms, have almost not been implemented. Instead of that, the clear-cutting of the low /
coppice forests, without the natural regeneration from seeds and/or the artificial regeneration
by planting, causing further forest degradation, has been mostly implemented. Also, the
extent of silvicultural activities could not be implemented proportionally to the felling
amount (at least of 50% the planned ones), as prescribed by the Law. The time frame (of two
years) for afforestation of non-regenerated areas could also not be respected. There is
however a convenient provision on reforestation of burned forest or forest damaged by natural
disasters, which could be supported (financed) by the programme of extended reproduction
instead of forest owners or users themselves. However, the minimum area criterium (of 50
hectares) for that is, particularly for PFOs, much too large.
Protection of forests against biotic, abiotic and other factors
The provisions on protection of forests against biotic, abiotic and other factors including,
among others, the establishing of a special Diagnostic-Prognostic-Reporting Service (DPRS)32
,
the obligation to arrange forest order (“шумски ред”) after felling33
, the obligation to carry out
the special34
forest fire protection measures, the ban and/or restrictions on forest pasture35
; the
29
Subjects engaged in silviculture, in particular, do the following: (a) adjust the way of silviculture to the
environmental conditions, biological characteristics, tree species and the condition of the forests; (b) monitor the
seeding, promote natural regeneration by silvicultural and other measures and perform artificial afforestation
where natural regeneration has failed; (c) afforestation of naturally non-regenerated felling sites, burned areas,
bare and other areas degraded by natural and zoo-anthropogenic influences, giving preference to tree species of
local provenances; (d) implement tending measures; (e) protect degraded forests and shrubs from further
degradation and reconstruct and rehabilitate them; (f) enrich the forests with high yield and high quality tree
species and (g) convert low forest into high forest forms, depending on the location and biological properties of
the trees.
30
The activities shall be carried out in the quality and extent, which is in proportion to the allowable cut realised
in the preceding year, but not less than 50% of the planned ones.
31
The entities that carry out silvicultural measures are obliged, within two years, to afforest the areas on which
the reforestation has failed, the areas on which illegal clearing, illegal harvesting and harvesting with greater
intensity than planned has been performed, based on amended special plan.
32
The public administration body responsible for forestry affairs shall keep records, establish and maintain a
permanent database of development of plant diseases and pests, harmonized and linked with a joint information
system. The DPRS could be performed on contractual basis by a specialised institution (according to the by-
law).
33
According to a by-law.
34
Such as clearing of anti-fire cross-sections (“просеки”) or belts (“појаси”) in forests, establishing of belts
with broadleaves, setting the water tanks for firefighting, and organising the Forest Fire Prevention Service.
35

24
ban on initiating of fire within and close to the forest, the ban on disposal of waste in the forests
and the provision of free public access to the forest for recreation purposes, are standard ones
and generally appropriate. Critical comments are related to:
• The obligation for forest owners to carry out the special forest fire protection measures,
which are very demanding and appropriate for the state and other large forest properties
only, while objectively could not be assured by small PFOs (in that case they shall pay the
penalty of 1500 – 2000 EUR).
• The obligation for forest owners and users for prevention of illegal deponing of waste in
forests, which is impossible to be assured by small PFOs (although the penalty for that is
not prescribed for physical person).
• The fact that the permanent database on plant diseases and pests is not established by
the state forest administration and its forest protection sub-department, although the paper
versions of the reports, submitted by the public service provider (Forestry faculty in
Skopje), exist.
• The regulation of the forest order (according to appurtenant rulebook), which is based on
an outdated approach of the order after felling, lacking on multifunctional forestry
aspects, such as deadwood and forest habitat and species protection / conservation.
Utilization of forests
The following provisions on utilization of forests have been assessed: (a) the obligation for
marking of individual trees or marking of areas with appurtenant recording36
of trees before
felling; (b) the way37
of marking38
of trees and recording39
the marked trees; (c) the conditions
for persons to perform the marking of trees and financing40
of the task; (d) the entities
authorised41
for marking of trees in state and private forests; (e) obligation on reporting after
the performed marking of trees and consequent checking of the marking; (f) the ban on
exceeding the allowable cut (“cечивиот етат”) at the forest management unit (FMU) and the
sub-compartment levels; (g) the authorisation for performing42
of felling and hauling in state
forests and conditions for the contractors including licencing; (h) issuing of the licences43
for
performing the felling and hauling (“дотур”) in state forests; (i) ban on felling the trees in state
forests by physical persons and the conditions for exceptional performing the felling in state
forests of low silvicultural form by rural people44
, and (j) the obligation for establishing and
36
The recording, i.e. measuring is obligatory also in case of the areal - clear felling.
37
38
By a hammer containing a clear forest stump (жиг), i.e. stumping of trees.
39
There are three books for recording of the trees: book for state forests, book for private forest and book for
illegal felling.
40
By the forest owners and users.
41
These are: the PENF and other entities managing the state forests within PAs/NPs.
42
In own arrangements (by PENF and other entities managing the state forests within PAs/NPs) or by the
contractors (through public procurement procedure).
43
Licences issued by the state forestry administration based on corresponding request form (according to the by-
law), after the prescribed professional, technical and other conditions are fulfilled by applicants.
44
Based on corresponding rulebook. Each rural household is eligible for maximum of 10 spatial meters of
fuelwood in a year based on the price list of the PENF and other entities managing the state forests.

25
maintenance of the electronic system of tracing45
of wood mass, and the obligation on keeping
the records. In general, they are appropriate. Detailed considerations, however, show that:
• The obligation on marking or stumping and recording of trees before felling is a strong
instrument for prevention of illegal harvesting. It should be noted that such a stumping is a
very old-fashioned, not yet replaced by contemporary tools, such as hammers with plastic
tags (including bar-codes). However, if the marking of the anticipated clear-felled forest
areas in state-owned forests is performed without recording (by measuring) of all the
trees (which are intended to be felled) inside the area, this is not in accordance with the
Law (Article 62/2) and allows for a wide space for grey forest economy, illegal
harvesting and corruption. Further, recording of the marked trees (into the appurtenant
tree marking books) is performed manually and the data are not available in e-form.
• The provision on checking of all the performed markings of trees in forests (under
sFMPs or FMPrs) by the forestry inspectors (15 of them only in the whole country) is not
feasible in terms of quantity and particularly not quality, as the entire annual felling volume
is in question. Such unfeasible provision could consequently lead to the opposite effect, i.e.
approvements of non-corresponding marking of trees.
• The ban on exceeding the allowable cut at the (sub)compartment level is a good forest
protection mechanism (against too high felling intensity), but without appropriate tolerance
limits (e.g. ±20%), it becomes also a serious problem for appropriate silvicultural treatment
of forest stands in case when the growing stock is roughly estimated (as usual in North
Macedonia).
• The conditions for obtaining fuelwood by rural people from felling the timber on the
stump in the state forest are actually not convenient for rural people, particularly not for
the poor ones. The same applies to collection of wood residues besides the stump. Namely,
the prices determined by the price lists of the public entities managing the state forests are
very high, e.g. 27 € / m3
for beech fuelwood on the stump and 16 € / m3
for wood residues
besides the stump (in case of PENF’s price list). These are for example up to three-times
higher than in Montenegro. So high prices for rural people are really not the social ones,
particularly not for the Macedonian living standard and are certainly not reducing, rather
than increasing the illegal harvesting (in order for poor people to survive).
• The stamping of wood assortments (according to the rulebook) is still performed in
classical, time demanding way (by hammers containing corresponding stamps and using
certain colours, changing them yearly), except of technical roundwood in state-owned
forests where plastic tags (with barcodes) have been introduced, but not really used in
practice.
• The ban on purchasing, processing and placing on the market of wood assortments
which are not stamped and are not accompanied by the Delivery Notes is very strong
mechanism against the illegal trade in wood.
• The obligation for establishing and maintenance of the electronic system of tracing of
wood masses by the PENF, from the phase of marking of trees for felling onwards - is an
45
The system is introduced for surveillance and control of the movement of wood mass from the forest (from
the phases of marking of trees, the felling; the hauling and the transport) to the storage of the entities responsible
for managing state forests, from their storage to the storage of entities registered for trade in wood and wood
products, and from these storages to the final purchasers, as well as from the forest or these storages to sawmills.
According to the Law, the system is to be established and maintained by the PENF, while the other entities to be
users of this system. Minimum technical standards and requirements in respect of equipment (hardware),
software functionality, the way of introduction, use, maintenance and upgrading of the electronic system shall
be prescribed by the MAFWE.

26
ambitious, contemporary step towards combating illegal harvesting and trade in
wood. From the phase of marking of trees, the traceability is assured for high forests only,
but (due to technical reasons) not implemented in practice. For low forests and/or fuelwood,
the traceability is implemented from the felling phase, i.e. by issuing of the e-Receiving
Note. Although the corresponding rulebook was not adopted yet by the MAFWE, the
system has been established and implemented by PENF in state-owned forests in last few
years. This was actually a large pilot including 80% of the PENF’s subsidiary units or
60% of produced wood volume, performed in addition to classical (on-paper) way
issuing of Delivery Notes and Dispatching Notes. Other entities managing the state forests
and the entities performing trade in wood assortments do not implement the electronic
traceability system yet.
A critical assessment under this chapter of the Law is directed to responsibilities for issuing of
the felling approval for PFOs46
, as well as for stamping (“жигосување”), measurement and
classifying of forest assortments and issuing the Delivery Notes47
(“испратници”). This will
be discussed together with other issues within the Forest law chapter on the management with
private forests.
Planning, building and maintaining of forest infrastructure
The provisions on forest utilisation include also the conditions for planning, building and
maintaining of forest infrastructure, which are similar to some WB countries and are quite
appropriate. However, building and restructuring works and consequent technical and
environmental quality of the forest roads, except in national parks, are absolutely not adequate48
in North Macedonia.
Trade in wood
Provisions on the trade in wood which include: (a) the ban of purchasing, processing and
placing on the market of wood assortments (except wood residues49
) which are not stamped
and accompanied by the Dispatching Notes; (b) the way50
of supply and places51
for storage of
wood assortments from state-owned forests (by the entities managing the forests); (c) the
obligation for owners of mechanical wood processing facilities to keep52
the records on the
received wood assortments; (d) the conditions53
for registration of the wood traders and keeping
the register by the state forestry administration; (e) issuing the proof of wood origin and the
permission54
for export of wood by the state forestry administration based on the prescribed
46
By authorised persons employed by entities which manage the state forests.
47
Stamping, measurement and classification of wood assortments and issuing the Dispatching Notes could be
performed by authorised persons within the entities which manage the state forests. Detailed ways and procedures
for these tasks are determined in the appurtenant rulebook.
48
The expert opinion is based on field visits, standards and annual reports of PENF.
49
From which the biomass products are produced, under a special programme (adopted by the state forestry
administration).
50
Publicly and transparently (in case of wholesale).
51
Temporary (i.e. on forest roads) and permanent warehouses (i.e. in urban areas).
52
According to appurtenant by-law, the records shall include, among others, the name of the suppliers and the
number of the Dispatching Notes (in order to indicate the origin of wood).
53
According to appurtenant by-law.
54
Based on the preceding request of the exporter including, among others, the wood product custom’s tariff
code (without the tree species) and information on the importer (according to appurtenant by-law).

27
conditions55
, (f) as well as the conditions56
for the import of wood, are quite appropriate57
,
particularly in terms of their contribution to prevention of illegal58
timber trade on national and
international levels.
A critical opinion goes only to (h) the restrictions on selling of timber on the stump
(“корен”), for legal persons managing with state forests, which is allowed only in low forests
under 50 m3 / ha of growing stock (degraded low forests). Indeed, such kind of timber selling
could be generally considered as riskier when sustainability of forest utilisation and its
corruption sensitivity are in question - if arranged through long-term contracts (where the
annual prices are setting in regulatory way). In case of short-term arrangement, however, it is
not riskier than the contracting of forest operations and could actually be more favourable from
certain aspects (e.g. accountability of the contractor for the whole wood production and trade
chain which contributes to sustainability of forest management, no forest utilisation costs for
the forest managing entity, as well as always profitable standing timber sales which both
contributes to economic viability of the forest managing entity). The selling of timber on the
stump is also present in some European countries (where the entities managing state forests are
not performing the forest operations in their own arrangement).
3.2.1.7. Use of other forest products and services
The provisions on forest use by third persons include particularly the restrictions and (financial)
compensations for forest pasture59
(“напасување”), the conditions for use60
of other forest
products (OFP) by the entities managing state forests or granting61
the use right to other (legal
and physical) persons, as well as conditions for placing of bee hives62
in forests, are generally
appropriate. However, when the benefits from the use of OFP are in question, the Law
provides them to the PENF and/or NPIs only, while the PFOs or their associations remain
without any benefit. The Law also does not regulate yet the conditions for provision of other
forest functions or services to people.
3.2.1.8. Establishing the forest cadastre and the forestry information system
The general provisions on establishing the forest cadastre63
and the forestry information
system64
by the state forestry administration are appropriate and also essential instruments
55
The export of technical wood, firewood and pulpwood may be carried out only with the approval of the body
of the state administration responsible for forestry affairs and if stamped, supplied with a Dispatching Note and
confirmed by a report of the state inspector for forestry on the quantity and quality class.
56
At the entry of the wood assortments in the Republic of Macedonia, i.e. at the warehouse of the importer
(required by the Law), recoding of the wood assortments, stamping with a stamp for the imported wood mass,
and a Dispatching Note shall be issued for placing the wood on the market - all that shall be done at the
warehouse before putting the wood assortments into circulation.
57
Although some of the provisions are much too detailed for corresponding law concept.
58
The conditions in terms of the EU requirements will be assessed later under the appurtenant sub-chapter.
59
According to the by-law.
60
According to the Law and appurtenant by-law, every collector, as well as processor of the other forest
products shall obtain a permission (to be issued by PENF) for commercial collection or processing of other
forest products.
61
Based on the contract and appurtenant financial compensation.
62
According to the by-law.
63
According to a by-law (defining appurtenant record sheet).
64
According to a by-law (not adopted yet).

28
for forestry decision making and management with forests, particularly the private ones.
However, the cadastre and the information system were not established yet by the forestry
administration.
The provisions on the monitoring of forests, including forest health monitoring based on two-
years programmes65
and the monitoring of forest fires, along with establishing66
of the fire
information system and the register of forest fires, under responsibility of the state forestry
administration, are quite corresponding. The forest health condition monitoring is carried out
and reported under a public service contract between the forestry administration and the
Forestry faculty in Skopje. The so-called intensive forest monitoring is not yet carried out.
Regarding the forest monitoring, it should be noted that the Law does not require other kinds
of forest monitoring either, such as monitoring of forest management, monitoring of forest
biodiversity (e.g. deadwood) and monitoring of forest carbon. The forest fire information
system has also not yet been established by the state forestry administration, nor has the
international reporting been carried out by it. At national level, however, a forest fire
information system (MKFFIS)67
is in use, and can be considered that this segment of the Law
on forests is implemented indirectly, although the system is not in its full functional capacity.
3.2.1.9. Forest guarding and forest police functions
Provisions on the Forest Guarding Service (its tasks, rights and duties)68
to be provided by the
entities managing the state forests and the provisions on the Forest Police Service (its tasks,
65
According to the methodology of International Cooperative Programme (ICP) under the framework of the
Convention on Long-Range Transboundary Air Pollution (CLRTAP) (1979).
66
To be established by the state forestry administration.
67
Established in 2014 under international support of JICA and maintained by the state’s Centre for Crises
Management (CCM). Available at: http://mkffis.cuk.gov.mk/
68
The members of the Forest Guarding Service in the forest district are particularly authorized to:
a) keep the forest district free from illegal felling and forest theft;
b) check all means of transporting of wood and other forest products in the forest district area (regardless of
the ownership) and on forest roads' control points within the district;
c) legitimize all persons caught in the forest and file the requests for initiation of misdemeanour procedures
against the persons caught in the course of illegal activities;
d) restore and preserve border signs of the forest management units, compartments and preserve the forest
from destruction and illegal use;
e) report on forest fires, plant diseases, forest pests, as well as other hazards in the forest district;
f) notify the competent persons of the entities managing the forests on illegal appropriation of forests and
forest land in the forest district, and submit requests for initiation of a misdemeanour procedure to the
competent authority;
g) report to the competent authority for crimes committed on the territory of the forest district;
h) wear the weapons;
i) temporarily seize the objects and means by which a crime or misdemeanour has been committed, and
issue confirmation for temporarily confiscated means as well as the Receiving Notes (for the seized
wood).

29
rights and duties69
, subjects70
of its controls, as well as the internal organisation and other
matters) to be provided by the Forest Police Department within the MAFWE, are generally
appropriate for current organisational set-up. Such a forest guarding is typical also for other
WB countries, while the forest police is now the only remaining case among European71
countries, indirectly indicating the severity of forestry illegal activities in North Macedonia.
However, if the tasks and duties of both of the services are compared, some significant
overlaps (e.g. in preserving the forest against illegal harvesting and theft, in checking the
means transporting the wood on forest roads, temporary confiscation of suspected illegal wood
and appurtenant transport means, and in the notifying of the competent authorities) could be
noted. There is also certain territorial overlap within forest district (under responsibility of the
forest guards). In addition to that, the Law does not oblige for necessary cooperation between
the Forest Guarding and the Forest Police Services. The Forest law however prescribes that
subjects of the forest police controls are the entities managing state forests, which includes
also their Forest Guarding Services. In practice, however, the forest police do not control
the forest guards, rather than the referents for transport only (i.e. the referents of the entities
managing the state-owned forests, who issues the Dispatching Notes. In spite of this, the
cooperation amongst the two Services is difficult to achieve from the objective (i.e.
organisational) and subjective reasons (i.e. the mentioned controls). By the lack of cooperation
and mutual acting of both Services, the efficiency of the joint forest control system is
significantly lowered.
In legally-technical terms, the entire forest police chapter of the Law is very extensive and
detailed one, similarly as it would be a special legal act, including even secondary and even
tertiary legal provisions.
Apart of the FPD, also the bodies or services of the Ministry of interior affairs are authorized
for control the transport and storage of wood and appurtenant temporarily seizures. However,
although all the Services are in charge for the forest policing and guarding, the joint
efficiency of them is very low.
69
The members of the Forest Police Service are particularly authorized to:
a) guard the forest,
b) intervene,
c) prevent and legitimize or apprehend persons found committing minor or criminal offenses relating to
forests, or suspected of having committed such offenses,
d) check all means by which wood and other forest products are transported, in all places where wood and
other forest products are stored;
e) temporarily seize the objects and means by which a crime or misdemeanour has been committed;
f) monitor and report on the state of forests related to illegal felling and forest theft, forest fires, plant
diseases, forest pests, and other hazards and report to the competent authorities on the illegal
appropriation of forests and forest land, and
g) notify the competent authorities and start procedures against the offenders.
70
Subjects of the forest police controls are all entities managing state forests, other legal persons and citizens.
71
Until 2016, Italy had the forest police. After that, the police had been transformed into half-a-military
formation (“Carabinieri”).

Analysis of forestry strategic and legal framework in North Macedonia

Analysis of forestry strategic and legal framework in North Macedonia

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