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REDD+ in Indonesia

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Manishka De Mel

on 7 June 2013

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Transcript of REDD+ in Indonesia

Reducing Emissions from Deforestation & (forest) Degradation
[REDD+]
in Indonesia Avishag Bohbot
Erik Mencos-Contreras
Joyce Wong
Mahlet Melkie
Manishka De Mel Analysis of Performance in Key Areas
Recommendations Introduction Indonesia: A Prime Candidate for REDD+ Indonesia – At a glance Archipelago in Southeast Asia

Lower middle income country

Population = 242 million

Third largest in extent of tropical forests, after Brazil and DR Congo. Global deforestation rates Increase in oil palm plantations - food and biofuel. Seven-fold increase in area 1990 to 2010.

Unplanned deforestation - encroachment and illegal logging by local people or commercial users.

Large-scale timber logging and coal mining.

Conflicting policies - policies clash with conservation of forests. Government depends on the tax – logging, mining, mining permits in protected areas. Drivers of deforestation in Indonesia Indonesia: a prime candidate for REDD Global deforestation rates
Brazil #1 with ~3 million ha per year
Indonesia #2 with ~ 2 million ha per year

Indonesia contributes 17% to global deforestation.

Forest cover
1950: 85%,
Now: 50-60%

Annual rate of deforestation in Indonesia is about 2% a year.

Indonesia was the 3rd biggest emitter of greenhouse gases (World Bank, 2007). Of this 85% from forestry.
Multiple Benefits What are multiple benefits? Multiple benefits: the range of environmental and socioeconomic benefits that can be achieved by REDD

Essentially it is the ‘+’ in REDD+.

Promote biodiversity conservation and provision of ecosystem services
Water regulation

Socioeconomic benefits
Improved livelihoods (Eg: carbon payments)
Clarification of land tenure What’s been done? Indonesia's National Strategy (2012) includes some broad aspects of multiple benefits such as conservation and rehabilitation.

Ecosystem restoration to be funded through carbon credits.

The draft rules by the Government on benefit sharing includes proportions, but have a lot of variation. Eg: 20% – 70% for communities. Selection of project approaches to benefit sharing Multiple Benefits: Successes & Challenges CHALLENGES
Benefits sharing which include cash payments yet to be implemented.

Lack of clarity about which agency will decide on benefit sharing arrangements. Eg: Ministry of Finance.

Benefits have been considered to be activities (capacity building).

Little or no information about biodiversity benefits - need to be monitored. STRENGTHS
Type of benefit sharing mechanism likely to change when payments for emission reductions occur.

Capacity building etc necessary before any payments are introduced.

Emphasis on putting in place adequate incentive structures to ensure that project developers remain involved.

Conserving forests will conserve biodiversity. REDD+ funding for Indonesia should continue under the following conditions.

Piloting initiatives that attempt to determine a carbon price that takes into account the various ecosystem services and benefits by forests.

Norway should align with other donors to avoid duplicating REDD+ initiatives.

Clear definition of forest degradation with defined parameters to ensure effective monitoring. There are many challenges to REDD+ initiatives in Indonesia.

Emissions from deforestation are the third biggest contributor to global emissions.

Kyoto considered to be ineffective, and therefore in order to get REDD+ right, pilot initiatives are essential. Our Task Norway has invested in REDD+ projects in Indonesia and is concerned about the implementation of future REDD+ projects.

The Government of Norway has asked our team to assess the progress of REDD initiatives and projects in Indonesia.

We will make recommendations on whether Norway should continue to fund REDD projects in Indonesia. If so, under what conditions. Agenda REDD+ in the UNFCCC REDD+ in the UNFCCC Major issues Scope – Deforestation, degradation…

Reference Level – Monitoring, Reporting & Verification

Finance – Fund-based? Carbon markets? Both?

Distribution – Which countries should benefit?

Definitions – “Forest”, “deforestation” Snapshot of REDD+ in Indonesia High-level commitment - reduce emissions from LULUCF by 26% or by 41% by 2020.

Introduced Implementation phases
(1) preparation: (2007– 2008);
(2) readiness: (2009–2012); and
(3) full implementation.

Partnerships with Australia and Norway. National REDD+ Strategy in 2012

Institutions created
1. REDD+ Agency; succeeded REDD+ Task Force
2. REDD+ Funding Instrument;
3. REDD+ MRV Institution

Projects: At least 44 REDD+ pilot initiatives. Snapshot of REDD+ in Indonesia
Measurement, Reporting & Verification (MRV)
Governance Stakeholder Engagement
Economic Implications Economic Challenges REDD+
Paid up to $2,077.50 per hectare
REDD credits in Chicago Climate Exchange: $1.50 per tonCO2

Well-managed palm estate: $4,826.11 per hectare (Koswanage, 2010).

Ecosystem services (tropical forest): $5,264.00 per hectare (de Groot, 2012). Smallholder farming in Sumatra: US $0.49/ton CO2e

Conversion of degraded forest land to palm oil: US $19.6/ton CO2e (Olsen and Bishop, 2009). Economic Challenges Source: Center for International Forestry Research, 2012 Economic Challenges Introduction to REDD+ REDD was adopted at 13th COP in 2007 as a global mechanism to mitigate climate change.






Three Phases of REDD+ implementation:
The readiness phase
Policy reforms and results-based demonstration activities
Results-based actions Introduction to Projects Ulu Masen Kalimantan Forests and Climate Partnership Rimba Raya Project Project Area: 91,215 hectares of tropical peat swamp, lowland, and kerangas forest; 14 villages in project zone.

Project Timeframe: 2008 - 2038

Project Focus: Utilize carbon credit sales to engage communities in conservation around the park. Institutional system for REDD+: good governance; inclusiveness; cost efficiency and accountability.

Implementation Steps
Readiness
Policy reforms and results-based demonstration activities
Result-based actions Governance CHALLENGES:
Excluding some ministries (Agriculture and Energy and Mineral Resources) from mitigation actions.

Complexities, uncertainties and potential risks regarding unclear land tenure.

Significant risk due to lack of clear rights to sell REDD carbon credits to third parties.

Forestry sector criticized for being ineffective and corrupted. Governance: Successes and Challenges Stakeholder Engagement Objective / outcome: Indigenous Peoples, civil society and other stakeholders participate effectively in national and international REDD+ decision making, strategy development and implementation. SUCCESSES

Improvements at project level; Indonesia is considered better than some other countries.

Use of voluntary standards, and good practices piloted. Stakeholder Engagement: Successes & Challenges Every 4 seconds ... Defining the problem
Measurement, Reporting & Verification (MRV) Definition: A series of quantitative estimates of greenhouse gas fluxes (emissions reductions and removals)

Goal: To support the implementation of REDD+ through measurement mechanism and performance reports & to provide the basis for determining REDD+ successes

Certified Carbon Standard VCS
Successes & Challenges SUCCESSES

New MRV institution.

A multiagency initiative - carbon accounting (INCAS).

Use of best practice methods for carbon and biomass measurement.

Use of best practice methods for carbon and biomass measurement.

Verification of the amount of annual net for carbon over 30 years (27,546,438 tons). CHALLENGES

Lack national REDD+ MRV frameworks and policies.

Lack of reliable data.

“Cart before the horse situation”.

Carbon leakage –measuring and preventing the risk of potential leakage. Project Area: 750,000 hectares of forest; 200 villages, each with between 500 and 1,000 residents

Project Timeframe: 2008 – 2012, 2012 - 2038

Project Financing: Costs 2007 – 2012 estimated at $48.4 million; funded by ODA (48%), strategic first partner (5%), sales of VERs (47%)

Expected Revenue: Payments were projected to reach $26 million over the first five years.

Main Focus: Illegal and unsustainable logging Project Area: 120,000 hectares in northern part of Ex-Mega Rice Project Area; 14 villages (~9,000 people)

Project Timeframe: 2008 - 2012

Project cost: AU$60 million; AU$30 million from Australian government

Project focus: reduce deforestation and degradation of peatlands; develop a GHG estimation and monitoring system to estimate GHG changes; develop innovative incentive payment (including incentives for reducing fire, GHG reductions) SUCCESSES:
Indonesia's three REDD implementation phases

1. Preparation (2007-2008)

2. Readiness (2009-2012) and

3. Full implementation
Consolidate a REDD+ framework at the national level to avoid carbon leakage.

Monitor benefits from biodiversity and ecosystem services.

Set specific requirements that every REDD+ project must have a genuine multi-stakeholder process - starting from design phase; set indicators that ensure outcomes. CHALLENGES

Still no national standards; indigenous representation in REDD+ bodies.

Highly politicized topic and stakeholders can cloud progress.

Stakeholder consultation takes time
Indicators tend to measure process rather than true outcomes Introduction
Our task
Introduction to REDD+
REDD+ in the UNFCCC
Indonesia: A prime Candidate for REDD+
Overview of REDD+ Projects

Analysis of Performance in Key Areas
Governance
Stakeholder Engagement
Measurement, Reporting & Verification
Multiple Benefits
Economic Implications

Recommendations Source: IPCC, 2007 Recommendations Recommendations Snapshot of REDD+ in Indonesia Thank You!
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