Fauna & Flora International. Reducing Carbon Emissions from Deforestation in the Ulu Masen Ecosystem, Aceh, Indonesia

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1 Reducing Carbon Emissions from Deforestation in the Ulu Masen Ecosystem, Aceh, Indonesia The Provincial Government of Nanggroe Aceh Darussalam (Aceh) Fauna & Flora International Carbon Conservation Pty. Ltd Presented by Evan Bowen-Jones, Conservation Partnerships Technical Adviser, FFI,

2 Overview The project in brief The Partners Background Methodology Ensuring robustness Lessons Learned Next steps

3 The project in brief Yellow line indicates the boundary of the project area forest

4 The project in brief 750,000 hectares of forest in Ulu Masen in Aceh Province Estimates that the project will reduce deforestation by 85% over 30 years Avoided emissions estimated at 3,370,000 tons of CO 2 per year

5 The partnership Led by Provincial Government of Aceh as part of a clear commitment to forest protection NGO input (FFI) to provide technical support on project design and delivery (conservation and community benefits) Private sector expertise (Carbon Conservation Ltd, PTY) to assist with project design, development, start-up and carbon finance

6 Gain local buy in Fauna & Flora International Methodology Establish a Baseline (forest area, elevation and degradation) using IPCC Tier 1 methods to estimate carbon stocks Baseline Projections (legal status, threat, level of degradation, elevation & SPOT monitoring) Audit and Certification against CCBA standards by the Rainforest Alliance Monitoring (GIS based assessment of land use change, illegal logging and deforestation annually)

7 The project area Project area represents the largest remaining contiguous forest block on Sumatra Highly diverse and provide important habitat for flora and fauna including Sumatran tiger, elephant, orangutan and Malayan Sunbear. Provides vital community services including water, flood prevention and erosion control

8 Additionality Historic rates of deforestation have been low as a result of ongoing hostilities and lack of access Between 1990 and 2000 deforestation rate in Aceh province estimated at 0.86% (unpublished CI study) Additionality is demonstrated based on past and future predicted threat to the forest 1) Cessation of hostilities has opened up the province to industry and demand for timber has escalated post the tsunami 2) Strong market incentives work in favour of conversion to palm oil

9 Leakage Leakage is likely to be strongest earlier in the project period (e.g., the first 5-10 years) although leakage will be monitored for 30 years A Province-wide consultative process for land use planning will play a key role in preventing the movement of logging elsewhere within the province by securing support at all levels National baseline development is considered likely to occur over the next two to three years.

10 Community involvement Provincial, District and Community-level land use planning, including rezoning areas of Conversion Forest to Protection Forest/Limited Production Forest and identifying land for sustainable community forest management. Development of provincial forest policies and institutions to provide an appropriate legal and operational framework Re-designation will provide long-term legal security for the forest areas.

11 Benefit sharing Trial incentive mechanisms to link forest protection to tangible benefits by developing: - alternative livelihoods approaches such as community forestry, sustainable agro-forestry - wealth distribution mechanisms to ensure equitable and transparent distribution of benefits linked to clear accountability for retaining intact forest - direct payment to forest wardens & community monitors, plus district authority enforcement effort

12 Fauna & Flora cation International Ensuring robustness Credibility of GHG reductions Additionality Leakage Measurement and monitoring Permanence Social and environmental impacts multibenefit projects CCB Standards, becoming widely acknowledged for delivering triple bottom-line

13 Alliance Members Fauna & Flora International The CCBA Advisors

14 Preventing negative impacts Local risks Exclusion from land and resources Non-respect of customary tenure/rights New influences (immigration, revenues, power) can degrade traditions and cause social conflicts Local opportunities Watershed & soil protection Agricultural productivity enhancement Employment or new livelihoods Revenue sharing Biodiversity conservation Continued use of forest products, can be safety net for poor people Maintenance of traditional livelihoods and culture

15 The importance of standards Reduce risk and uncertainty for investor Credible carbon credits (putting a buffer aside) Social and environmental impacts permanence/reputation Identify additional value of multiple-benefit projects Bundling of ecosystem services Multiple goals achieved for Corporate Social Responsibility Design Standards Stimulate integrated approach to risk mitigation and multiple-benefit enhancement

16 Lessons learned Foundations are everything: strong existing relationships, trust and credibility are key Government commitment: local and national support for the scheme is vital Transparency and consultation: equitable distribution of benefits will make or break the project Robustness: these projects are new, risky and have to be demonstrably credible through 3 rd party certification Investment: substantial up front investment is required to create a credible project and secure local buy in

17 Next steps 1. Implement proposed governance structures and multistakeholder governance board 2. Generate VER credits (e.g. through VCS, if possible, within a year) 3. Implement community incentive and benefit sharing mechanisms Project details at:

18 Next steps Acknowledgments Joanna Durbin at the CCBA, John O Niles at Carbon Conservation, plus Julie Robson and Joe Heffernan at FFI