GREEN COMMODITIES FACILITY. Sustainable Palm Oil Programme: A public private partnerships approach UNDP

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1 Sustainable Palm Oil Programme: A public private partnerships approach UNDP June

2 About UNDP Poverty reduction and MDGs Democratic Governance Crisis Prevention and Recovery Environment and Energy

3 Unsustainable production as a symptom of structural problems Insecure and complicated land tenure, Weak land use planning, Policies and fiscal incentives promoting negative impacts, Lack of production standards and enforcement, Weak extension services perpetuating low productivity, Limited access to financial services 3

4 Proposed Public-Private Approach Need mechanism for Government to convene and coordinate stakeholders to address structural challenges Policy and regulation Extension systems Social services and education Infrastructure Institutional capacity 4

5 Map of Projects 5

6 Indonesia and Palm Oil

7 Sustainable palm oil and the private sector Indonesia is world s top producer of palm oil Partner with donors and buyers on demand side Partners in production side of supply chain agents of change Smallholders, Government, NGOs, development partners 7

8 About the SPO Programme Working with Ministry of Agriculture on palm oil smallholders for 3 years Initiation phase (project document to be signed with MinAgr in 1-2 months) SPO works with MinAgr and MinFor, on different aspects of the SPO programme Also with private sector (buyers and producers), NGOs, development partners and smallholder associations 8

9 Sustainable Palm Oil (SPO) Priorities 1. Indonesia Sustainable Palm Oil Platform 2. Strengthening Smallholders 3. Reducing Deforestation 4. Governance and Conflict Mediation 5. Support ISPO and RSPO 9

10 1. SPO National Platform UKP4 10

11 Target smallholders 2 Strengthening Smallholders Pilot provinces: Riau, South Sumatera, West Kalimantan Districts: Pelalawan, Siak (Riau) Unit: One cooperative or village level per pilot area 11

12 2 Strengthening Smallholders Key Activities 1.Strengthen smallholders so they can be ISPO certified: 1.Productivity, environment, land tenure, access to finance, fairer prices, cooperative management -> better livelihoods, management of SH, inclusion into mill supply chains 2.Strengthen local government agricultural extension worker systems to ensure sustainability and scaling up -> GOI capacity increased 3. Establish partnership between GoI, smallholders and plantations to create a PPP extension model to support smallholders, aimed towards reducing expansion into forests 12

13 Working with MinFor 3 Reducing Deforestation 1.Accelerate land swaps and use of degraded land through legal/policy development, leading to reduced use of forest lands for palm oil 1. Sensitivity, mismatch of maps/reality, economic/unofficial costs, need partnerships with local communities/smallholders 2.Mainstream High Conservation Value (HCV) and High Carbon Stock (HCS) into spatial planning 3.Strengthen the case for protecting HCV/HCS lands within concessions 4.Measure/Manage GHG emissions 13

14 4 Improving land tenure and mediation mechanisms Lack of land tenure -> lack of investment, productivity, tendency to open new land. Certification also difficult. 1.Provide support to independent palm oil smallholders to obtain legal land status -> certification under RSPO and ISPO 2.Strengthen local conflict mediation systems leading to more effective use of land in the area 14

15 5 ISPO and RSPO ISPO will level the playing field towards sustainable palm oil 1.Support ISPO operationalization and optimizing of guidelines (P&C) so ISPO can properly address socioeconomic and environmental problems 2.Support the development of a third party auditing system for ISPO to ensure international credibility 3.Support the piloting and refinement of ISPO smallholder guidelines SPO is assisting a joint study between ISPO and RSPO 15

16 Thank you 16