REDD+ Feasibility Study in Indonesia. ITTO Side Event at UNFCCC COP16 2 December
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1 REDD+ Feasibility Study in Indonesia ITTO Side Event at UNFCCC COP16 2 December
2 Project Summary Analyze feasibility of GHG emission reductions through REDD+ project developed by Japanese private companies Investigation Items 1Analysis of current situation 2Establishment of REDD+ Project Plan 3Establishment of REDD+ Project Scheme 4Consideration of MRV/Methodology (Including Expert meeting) 5Consideration of Issues/Countermeasures Expected Reductions/ Measurement Method Partners/Project Location ERM Japan Ltd. ITTO Ministry of Forestry Accounting/Legal Firm Location: (Indonesia) Kalimantan / Sumatra Size;hundreds of thousands ~millions -tco2/y GHG emissions from forest Reference scenario (Baseline) established by historical deforestation etc. Recognized as emissions Credit Field sampling data and satellite imaginary data by a satellite such as JAXA s ALOS will be utilized Actual emissions under conservation activities Time 2010 Marubeni Corporation All Rights Reserved.2
3 Contents of Feasibility Study 1Analysis of Current Status General situation Policy & Program Emission reduction potential 4Consideration of MRV/Methodology Applicable standards Preparation & evaluation of MRV Review of MRV PDD 2Establishment of REDD+ Project Plan Pilot site selection Project development plan Institutional setting Development schedule Study on applicable remote sensing technology Baseline setting Carbon stock measurement 5Comparison & Study of REDD+ MRV / Methodology through Expert Meeting 3Establishment of REDD+ Project Scheme Investment structure Credit transfer scheme Study on local regulations (Legal, Accounting & Tax) Estimation of development/ operational cost & profit Economic evaluation 6Consideration of issues / countermeasures 2010 Marubeni Corporation All Rights Reserved.3
4 Latest Progress 2 pilot sites determined a ) Central Kalimantan Province, Kalimantan b) Riau Province, Sumatra MOF-ITTO Contract executed, 1 st (Actual FS activity started) disbursement completed 3 departments under MOF(Forda Forestry Business Development, Forestry Planning) will conduct actual investigation. TOR are currently under review. Technical Meeting scheduled in December 2010 Marubeni Corporation All Rights Reserved.4
5 Pilot Sites Site Selection 2 Pilot Sites have been determined. Place Sumatra Kalimantan Size 70,000 ha 200,000 ha Remarks Peat land Peat land We will collaborate with Indonesian domestic companies already in progress of applying land concession for the sites. Pictures: Sumatra (Project Site) (Water surface of the river, water is brownish because of the peat) 2010 Marubeni Corporation All Rights Reserved.5
6 Pilot Site (Central Kalimantan) Location: Peat forest in Kabupaten Kotawaringin Timur and Katingan, Central Kalimantan Hectares % Production forest (HP) 198, % Production forest that can be converted (HPK) 28, % Total 227, Type of concession: Restorasi Ekosistem 60 years <Source:PT Rimba Makmur Utama Katingan Peat Forest Conservation Project > 2010 Marubeni Corporation All Rights Reserved.6
7 Framework for consideration (MRV/Methodology) Consideration of VCS (REDD) Methodologies VCS VM0004 (Applicable to peat land) <Points to be considered> Measurement method in peat land Applicable only to planned deforestation <Timing> Expert Meeting November & January (Total 2 meetings) <Measurement method of the carbon stock> 3 methods based on IPCC presented Comparison/ Study VCS REDD related other methodologies (4 methodologies) Applicable to unplanned deforestation as well Setting method of the base line, etc. <Objective> To Consider REDD+ MRV and Methodology under the Bilateral Offset Mechanism(especially to address the expected gap between required criteria under the future standard and current voluntary standard) Compare and study the existing methodologies (as mentioned left) and consider countermeasures to the issues of VM0004 (if any) <Next Step> Consultation with Indonesian side on MRV which is under consideration in Indonesia 2010 Marubeni Corporation All Rights Reserved.7
8 Concept of Bilateral Offset Mechanism We aim to incentivize early and effective implementation of actions against Deforestation and Forest Degradation through prompt development and operation of REDD project in Indonesia by filling the gap between the current voluntary scheme and the future crediting mechanism under the UNFCCC. (Current) ( 2012 ) Voluntary Scheme Bilateral Offset Mechanism (2015?~ ) Crediting Mechanism under UNFCCC Lack of financial incentive Difficulties in actual operation and development of projects (few buyers) Robust financial incentive Enable prompt and robust development and operation of REDD+ projects Earlier implementation of actions against Deforestation and Forest Degradation Earlier implementation of GHG emissions reduction Smooth transition to the compliance scheme under the next UNFCCC framework 2010 Marubeni Corporation All Rights Reserved.8
9 Contact Koji Tanigaki Manager, Environmental Solutions Sec. Global Environment Projects Dept. Marubeni Corporation Tanigaki ー Tel: Fax: Marubeni Corporation All Rights Reserved. 9
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