INDONESIAN INITIATIVES ON REDD+

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1 INDONESIAN INITIATIVES ON REDD+ by: A.F.Masud Ministry of Forestry Republic of Indonesia Forest Tenure and Regulatory Reforms, Beijing, September 2010

2 OUTLINE Introduction Forestry Role in Indonesia: Forest Resources, REDD Relevance Emission Reduction Targets REDD plus in Indonesia Context REDD plus Strategy Planting Plan Target of Challenges at National Level Community as the actors Policy on Peat Forest Closing Notes

3 INDONESIA: REDD Relevance 1. Country land area: app. 187 millions ha, population: app. 225 millions 2. 7 major islands and 33 provinces, autonomous governance system 3. ±70 % of the country area are forestland/state forest (± 37 % of them are degraded at various levels, forest lost ± 1.18 million ha/year) 4. Forest transition from the east (Papua: low historical DD) to the west (Sumatra: high historical DD, Java: forest cover increases)

4 INDONESIA FOREST RESOURCE M ha (47 %) 4 Source: Forest Planology Agency, MoFor (2006)

5 FOREST AND FORESTRY ROLE IN INDONESIA 1. Support community s livelihood for ±10,2 million of the poor 2. Source of wood and non wood product. 3. Carbon sink/sequestration as well as carbon emitter : Carbon stock in forest carbon pools as much as ~ 4500 Gt CO2 (> CO2 in atm.) If deforestation is part of 18 % global emission, it could potentially be 18 % of solution opportunity REDD. 5

6 Emissions Reduction Target President Susilo Bambang Yudhoyono announced an emissions reduction targets of 26 % by 2020, and it could reach up to 41 % with international support at the UN Climate Change Conference in Copenhagen, Norway, 17 November FOREST is expected to contribute more than 50% of those carbon emission reduction. The Ministry of Forestry Indonesia

7 RATE OF DEFORESTATION AND DEGRADATION BETWEEN Calculated based on satellite imageries

8 CHALLENGES OF FOREST RESOURCES EXISITENCE a. Un-ballanced of timber supply and demand (Illegal logging) b. Forest encroachment c. Forest fire d. Forest Conversion : Agriculture (food), Agribusiness (food and bio-fuel), Urban development Unplanned deforestation Planned deforestation CO2 emission 8

9 EFFORTS TO MAINTAIN THE EXISTENCE OF FOREST RESOURCES (SFM) Good Practice Silviculture (TPTI, TJTI, mixed Silviculture dll) Law Enforcement 9 Forest certification Social Forestry (CBFM, Agroforestry, PMDH dll.) Less Satisfying result Need to be supported by other incentive scheme FOREST CARBON SCHEME(A/R CDM, REDD etc).

10 MITIGATION STRATEGIES TO REDUCE NEGATIVE IMPACT FROM CC IN FORESTRY SECTOR 1. Increasing forest capacity in carbon sequestration- Afforestation /Reforestation A/R CDM Kyoto Protocol-(difficult to be implemented due to complexity requirements) 2. Maintaining carbon stock: forest conservation (Voluntary Market Scheme) 3. Carbon enhancement : Ecosystem restoration (preliminary discussion in UNFCCC) 4. Emission Reduction from Deforestation and forest Degradation (REDD) : Sector priority

11 REDD COP-13 Decision on REDD : Bali Action Plan : Status of REDD as an national/international that need to be strengthened Policy approach and positive incentive for REDD : Demonstration activities (DA-REDD) Capacity building & technology transfer, Indicative guidance for demonstration activities. The Effectiveness of REDD is entirely depend on annex 1 countries commitment to agree on how deep the emission will be reduced. It is expected that REDD will be operational post

12 REDD-plus in Indonesia o REDD/REDD-plus in Indonesia is an internalization of global agenda and externalization of local and national issues o On this basis: Indonesia has developed REDDI Road Map prior to COP-13 phased-approach, REDDI is national approach with sub-national implementation, Means of Implementation is expected to be fundbased for readiness and capacity building, and market-based for full implementation.

13 REDD+ according to IPCC s definition REDD Conservation Forest management Enhancement of forest carbon stocks Original graph: Lucio Pedroni Modified by Markku Kanninen (CIFOR, 2009)

14 REDD AND NATIONAL TARGET TO REDUCE GHGs EMISSIONS Indonesia has voluntarily set target to reduce emissions from all sectors ~ 26 % from BAU by 2020, through the following activities: Sustainable peat-land/forest management Reduction in rate of deforestation and land degradation Development of carbon sequestration projects in forestry and agriculture Promotion of energy efficiency Development of alternative and renewable energy sources Reduction in solid and liquid waste Shifting to low-emission transportation mode.

15 REDD-plus Phased-approach Phase 1 National REDD strategy development Establish policies and measures for MRV emission reduction from the forestry sector Develop an initial institution and identify necessary adjustments in forest law and governance Phase 2 Implementation of policies and measures proposed in national REDD strategies Develop a comprehensive legal framework Establish Monitoring Reporting and Verification (MRV) institutions and capacities; Develop action plans within the framework of a national low carbon development strategy Phase 3 Full Implementation Implement a national inventory of GHG Remain in compliance with the criteria of phase 1 and 2 and demonstrate that previously received compensation has been spent according to agreed guidelines The Ministry of Forestry Indonesia

16 STATUS OF REDD/REDD-plus IMPLEMENTATION IN INDONESIA Based on the Road Map of REDDI, Indonesia is currently under Readiness Phase, Readiness activities basically focus on preparing REDDI Infrastructure for full implementation post 2012 where compliance market is expected to emerge, The REDDI infrastructure includes: Policy interventions to address drivers of deforestation and forest degradation, including role of conservation, sustainable management of forest, and enhancement of forest carbon stocks, methodological and institutional aspects, as well as demonstration activities.

17 REDD plus Strategy Readiness Phase ( ) LEVEL NATIONAL National approach STRATEGY CATEGORY 1. Policy interventions to tackle drivers of Deforestation and Forest Degradation 2. REDD regulations (REDD Guidelines and REDD Commission) Ministerial Regulation on REDD 3. Methodology (establishment of National REL and MRV system) GoI Australia, FCPF, UNREDD 4. Institutional arrangements (Financing, including distribution of incentives and responsibilities; National Registry; capacity building; stakeholders communication and coordination among REDD institutions; stakeholders consultation) GoI- Australia, FCPF, UNREDD 5. Analytical works (REL, MRV, Co-benefits, risks, etc) GoI-FCPF The Ministry of Forestry Indonesia

18 REDD plus Strategy Readiness Phase ( ) (continued) LEVEL Provincial sub-national implementation District sub-national implementation STRATEGY CATEGORY 1. Methodology (establishment of Provincial REL and MRV system) 2. Institutional (capacity building, stakeholders communication and coordination among REDD institutions, stakeholders consultation) 3. Demonstration Activities, Voluntary carbon projects 1. Methodology (establishment of District REL and MRV system) 2. Institutional (capacity building, stakeholders communication and coordination among REDD institutions, stakeholders consultation) 3. Demonstration activities (GoI-Germany; GoI TNC, WWF, ITTO, Korea, UNREDD) Voluntary carbon projects The Ministry of Forestry Indonesia

19 Emission and Sink Scenarios (GT CO2e) Net emitter 1309 Net sinker 1.31 Giga Ton CO2e Emisi BAU Penanaman ha RENSTRA Kehutanan Note: Deforestation Rates constant at 1,125 mill. ha per year The Ministry of Forestry Indonesia

20 Planting Plan Target of Year Community and Village Forests Watershed Rehabilitation Plantation Forests LoA/ Ecosystem Restoration Units: thousand hectare Supported Community Forest Total , , , , , , , , , , ,150 Total 5,500 3,550 5,800 5, ,150 The Ministry of Forestry Indonesia

21 CHALLENGES AT NATIONAL LEVEL Technological Aspects and Methodologies: Funding, need significant investment resources monitoring system, on forest Capacity building at all levels of government and local communities. Gaps: stakeholders toward REDD perception and awareness Integrating into policy and programmes at national and sub-national (province and district) levels, as well as relevant sectors.

22 Best Practices of SFM REDD + will affect the trade in forest products that REDD + as it provides an alternative business in forestry other than harvesting and selling timber. The implementation of forest certification tends to increase due to an additional value of carbon in the forest stand but also from the fact the more environmentally concerned consumers will prefer certified timber and hence it provides an incentive to enter international market. Currently, in Indonesia around 4 million ha of production forest under a forest concession scheme has been certified. The information on REDD and REDD + has also triggered the local government to move voluntarily. Ex: Conservation District such in Malinau and Berau Districts in East Kalimantan. The Ministry of Forestry Indonesia

23 Community as the main actors Community is the main actor, and government acts as facilitator, regulator, and supervisor Implemented at the state own forest and community s private land Aimed to alleviate the poverty around forest village Aimed to support and accelerate process of reforestation in national scale Capacity development and access extention permit for local community in sustainable forest management The Ministry of Forestry Indonesia

24 Policy on Peat Forest Limit the conversion of peat forest for other uses (mainly on production forest); Control the peat fire and illegal activities (illegal logging, encroachment); Implement sustainable manner on the peat production forest - micro delineation; Implement a better water management of the utilized peat forestland - Re-wetting, dam construction; Strengthen the management of peat protected areas (national parks, nature and wildlife reserves, nature forest parks); REDD/REDD+ mechanism as incentives (role of conservation, sustainable management of forest, and enhancement of forest carbon stocks)

25 SUSTAINABLE PEAT FOREST MANAGEMENT Peatland Distribution Island Forestlands Area (ha) Non- Forestlands Total Papua 8,654, ,168 8,788,971 Kalimantan 4,390,557 1,350,349 5,740,906 Sumatra 5,580,474 1,644,174 7,224,648 Total 18,625,834 3,128,691 21,754,525

26 SOME CHALLENGES Decentralization Human resource capacities Land Tenure Involvement of stakeholders Inter-sector linkage Trust fund The Ministry of Forestry Indonesia

27 Closing As part of national target to reduce emissions ~ 26 % by 2020, mitigation action plan in forestry is already in the mainstream of forestry sector development planning; Indonesian Forestry is a land use sector which heavily affected by the need of forestland for other sector development; Emissions reduction target from forestry sector need to be set in the national development context; Domestic funding will not sufficient to achieve the target set for forestry sector; REDD + scheme is expected to provide financial resources to cover the costs of actions and incentives; REDD + calls for both international and national/sub national to have concerted effort in reducing carbon emission and hence reducing or slowing the increase of global temperature; Need for new financing mechanism and financing regulation to ensure that climate change fund is used for carbon enhancement forestry related activities; Need to strengthen members country climate change programme through lesson learned from other member states. The Ministry of Forestry Indonesia

28 LET S SAVE OUR FOREST THANK YOU TERIMA KASIH photos courtesy : ministry of forestry of indonesia

29 REDD FINANCING A. Study from Hoare et al, 2008, for estimating Cost Readiness REDD (R-REDD) : 1. Covering 25 countries that have significant tropical forest size (Africa, America and Asia including Indonesia), 2. Cost of R-REDD are divided into three big categories (and 18 cost activities) : Developing a strategy for REDD: the various drivers of deforestation and forest degradation and identifying the approaches to reduce them Establishment of a REDD infrastructure : baselines, inventories, and monitoring. Implementation of the REDD strategy: related to the policy improvements for implementing REDD B. Indonesia will need at least US $ 45,05 million for 5 years (from Grant) Continued...

30 AVERAGE COST ESTIMATION FOR READINESS REDD (FOR 5 YEARS ) ACTIVITIES LOWER ESTIMATE (X US $ 1000) UPPER ESTIMATE (X US $ 1000) INDONESIA Development of REDD Strategy Establishment of REDD Infrastructure Stakeholder consultation Demonstration Activities Establishment of baseline, monitoring system and inventory Land Tenure reform Land use planning & zoning Dev t of capacity to provide support service for implementation activities e.g. RIL, agriculture intensification Continued...

31 Cost estimation Forest Policy and legislation reform Tax reform Standard and guidelines Enforcement of planning & environmental requirement & forest laws Independent monitoring NGO capacity building Effective judicial review Institutional reform, clarification of roles and responsibilities, capacity building Treasury reform Establishment of ability to process and manage payment to project beneficiaries Total Source : Hoare et.al, 2008 (Column 1,2 and 3); Column 4-adjustment based on Indonesian Condition)