This policy brief outlines the need and possibilities for further developing the FLEGT action plan by explicitly considering livelihood issues and incorporating social safeguards. It is based on work within the “Illegal or Incompatible” research project funded by the Netherlands Directorate-General for International Cooperation. The project assesses the consequences of timber legality programs on local livelihoods. It is a partnership between Wageningen University and Research Centre and Tropenbos International. This policy brief is mainly based on the project findings in Ghana. This country was the first to ratify a VPA with the EU and hence offers an excellent opportunity to assess how livelihood issues are being dealt with in the FLEGT action plan.