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.

When Voluntary Partnership Agreement (VPA) is effectively implemented in Ghana, forest law enforcement will be strengthened. But, while VPA is largely anticipated to impact meaningfully on sustainable forest management, it has potential adverse effects on social actors who depend on timber extraction and trade for their livelihoods. Without any social security measure – social safeguards – put in place to manage the consequences, these social actors risk impoverishment.