The funding comes as 25 major timber industry representatives from across Europe and Africa and the UK Government agreed to actions to improve transparency, production and the procurement of legal and sustainable timber. This will complement the Forest Law Enforcement, Governance and Trade (FLEGT) regulation adopted by the European Union in December 2005.

As well as causing immense environmental damage, illegal logging seriously limits sustainable development in some of the poorest countries of the world, promotes corruption, undermines the rule of law and good governance and funds armed conflict.

Announcing the funding, Gareth Thomas said:

"The UK Government will commit £24 million over the next five years to take forward measures that will support better governance and law enforcement and influence demand for legally sourced products in countries such as Cameroon, Gabon, Ghana and Indonesia.

“We are making our commitment to responsible logging clear and will continue to encourage others in the EU to take necessary action by revising their timber procurement policies and help shape the market for timber products in Europe.

“The 25 companies that have committed to an industry agreement are working hard to produce timber from not only legal but also sustainable sources, often in the face of enormous pressure from rogue operators. This highlights the unprecedented cooperation between NGOs, the private sector and the Government to identify and eliminate the importation of illegal timber.”

Elliot Morley, Minister for the Environment, said:

"Under the UK’s Presidencies of the EU and the G8 we have successfully maintained a focus on tackling illegal logging, but more than that we have achieved acknowledgment of the need for both producer and consumer country action. Progress on demand side measures and shared responsibility is a significant move forwards.

“I am delighted that with industry we have identified a number of practical actions to implement this agenda in West and Central Africa. The continued engagement of industry is vital to the success of sustainable forest management.”

There has been interest from various timber producing countries in entering into FLEGT Partnership Agreements. Negotiation of a number of these Agreements, which will prevent illegal timber from those countries entering the EU, will soon start.

Notes to editors

1. The World Bank estimates that illegal logging costs countries worldwide over $10-15 billion a year in lost revenue needed for development.

2. Further details of the industry agreement on transparency, production and the procurement of legal and sustainable timber will be made available at a later date.

3. Governments, the private sector and NGOs now have a much better understanding of the development and environmental implications of illegal logging. They have also gained experience of implementing reforms. More on illegal logging

4. EU ministers agreed the new Forest Law Enforcement, Governance and Trade (FLEGT) deal in October 2005. This allows the EU to sign agreements with poor countries where enforcement is weak to help them guarantee that timber exports to the EU are legal and licensed.

5. More than three quarters of EU Member States have not yet taken steps to introduce public procurement policies for timber.

6. The UK is the first Government to tackle its own consumption in illegal timber. Since July 2000, central departments have had to seek to procure products made from timber that has been legally harvested and grown in a sustainable managed forest or plantation. This two tier standard allows poor developing countries an opportunity to bid for Government business provided they have systems in place that will enable legal harvesting to be assured.

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