Engaging sub-national political actors to reduce emissions from deforestation and forest degradation in Indonesia

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1 Engaging sub-national political actors to reduce emissions from deforestation and forest degradation in Indonesia James Erbaugh 1, Ristianto Pribadi 2, Dodik Nurrochmat 3 1 University of Michigan, School of Natural Resource and Environment 2 Institut Pertanian Bogor, Fakultas Kehutanan 3 Institut Pertanian Bogor, Kantor Kajian Strategis dan Kebijakan Pertanian 1

2 Percent Land Cover Money talks, but with regional accent Financial incentives preference forest clearing Laws 25/1999 and 34/2000 and district licensing Law 33/2004 and intergovernmental fiscal transfer Village Law (6/2014) prioritizes village development plans Indonesian Land Cover Change 2006 to 2014 Local institutions, networks, and standard operating procedures will (probably) abide Primary Forest Seconday Forest Production Forest (Timber + Kebun) Agricultural Land

3 How to engage sub-national political actors in carbon investment? Four persistent hurdles: 1. A history of financial incentives for extracting district resources (Barr et al 2006, Nurfatriani et al 2015) 2. Emphasis on carbon accounting instead of land-use opportunity costs (Corbera 2012, Murray et al 2015) 3. Agency of sub-national political actors is often overlooked (McDermott et al 2012, Mulyani and Jepson 2013) 4. Minimal disbursement of carbon payments, to date, with none for carbon offsets (REDDX 2015)

4 How to engage sub-national political actors in carbon investment? Source: Lemos et al 2012

5 How to harness sub-national political actors for carbon investment? 1. Provide information on resources ( Warehouse ) 2. Provide information on markets ( Outlets ) 3. Link actors with finances ( Transaction ) Source: Nurrochmat et al. 2010

6 Representing the forest landscape Data Elevation (Slope) Population (Pop. Farming) Forest Estate Forest Management Unit Land-Cover Carbon (Above Ground, Below Ground, Total) Roads (Area Nearby) Travel Times (Nearest Sub-District/District/Province Capital, Forest Boundary) Concession Areas (Mining, Plantation forests, Community forests, Transmigration) Data Source SRTM-DEM Central Statistics Agency Ministry of Environment and Forestry Ministry of Environment and Forestry Ministry of Environment and Forestry Ministry of Environment and Forestry Ministry of Transportation SRTM-DEM/MOEF Ministry of Environment and Forestry Additionality Predicted probability of deforestation Unprotected forest area Carbon Value Tons of carbon per ha Cost Nearest neighbor sampling land price Opportunity cost model per village

7 Methodology 1. Generate a province-level map, with input from political actors, to catalogue potential carbon investments using three categories. Greater Additionality Low Carbon Value Low Emissions Land Use (Kawasan Pencegah Emisi Karbon) High Carbon Value Carbon Sink Areas (Kawasan Penyerap Karbon) Little Additionality Other Use Area (Areal Penggunaan Lain) Carbon Storage Areas (Kawasan Penyimpan Karbon) Source: Author s Own

8 Additionality Methodology Carbon Value by Additionality by Cost Reducing Emissions Carbon Sinking Carbon Storage Source: Nurrochmat et al Carbon Value 2. Provide information on potential carbon investments to sub-national political actors

9 Discussion 1. Histories of sub-national resource extraction have strengthened subnational networks and contributed to forest landscape change Can these same networks and relationships be co-opted for conservation and/or sustainable production? 2. Through action research, we are seeking to empower sub-national actors to identify and develop diversified carbon investments Is providing knowledge about carbon assets sufficient? 3. This is a small part of a larger project to align financial incentives to promote carbon investments and other green economy considerations This work is nested within, and predicated upon, other socio-political challenges

10 Thank you James (J.T.) Erbaugh, PhD Candidate, University of Michigan Twitter: Erbaugh_JT Introduction Data Methodology Proof of Concept Discussion

11 Works Cited Barr, C., Resosudarmo, I., Dermawan, A., & McCarthy, J. (2006). Decentralization of Forest Administration in Indonesia Decentralization of Forest Administration in Indonesia. Corbera, E. (2012). Problematizing REDD+ as an experiment in payments for ecosystem services. Current Opinion in Environmental Sustainability, 4(6), Forest Trends Association. (2015). ReddX: Indonesia Overview. Accessed on: 20 November Lemos, M. C., Kirchhoff, C. J., & Ramprasad, V. (2012). Narrowing the climate information usability gap. Nature Climate Change, 2(11), McDermott, C. L., Coad, L., Helfgott, A., & Schroeder, H. (2012). Operationalizing social safeguards in REDD+: Actors, interests and ideas. Environmental Science and Policy, 21, Mulyani, M., & Jepson, P. (2013). REDD+ and forest governance in Indonesia: A multistakeholder study of perceived challenges and opportunities. The Journal of Environment & Development, 22(3), Murray, J. P., Grenyer, R., Wunder, S., Raes, N., & Jones, J. P. G. G. (2015). Spatial patterns of carbon, biodiversity, deforestation threat, and REDD+ projects in Indonesia. Conservation Biology, 00(0), n/a n/a. Nurfatriani, F., Darusman, D., Nurrochmat, D. R., Yustika, A. E., & Muttaqin, M. Z. (2015). Redesigning Indonesian forest fiscal policy to support forest conservation. Forest Policy and Economics, 61, Nurrochmat, D.R., Solihin, I., Ekayani, M., Hadianto, A., Neraca Pembangunan Hijau- Konsep dan Implikasi Bisnis Karbon dan Tata Air di Sektor Kehutanan. IPB Press, Bogor. Introduction Data Methodology Proof of Concept Discussion

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