FFI - REDD Project in Indonesia - Forest Climate Center

FFI - REDD+ projectin IndonesiaFauna & Flora International – Indonesia Program21 Dec 2010

Kalimantan ProjectsInnovative Conservation Since 1903

Objective1. Reduce emissions from forest conversion in WestKalimantan (Ketapang & Kapuas Hulu districts)2. Identify and secure high conservation value forest3. Encourage the palm oil industry to operate with the lowestpossible impact on biodiversity4. Secure economic benefits for local communities to protecthigh conservation value forest5. Secure economics benefit for local communities to manageHutan Desa6. Identify REDD financing mechanisms that could bedeployed to cover the cost of not converting forested landsand peat lands to oil palm and maintain high conservationvalue forests within the oil palm concessionInnovative Conservation Since 1903

Overview of ProjectsDeveloper Partner Location Size StatusCommunityForestRestorationEcosystemRestorationEcosystemREDD in oilpalm HCVAFFIPT WanaHijauNusantaraPT WanaHijauNusantaraPackardFoundation,AusAID, FCO-UK, USAID, EUKetapang,Kapuas HuluTotal 27,200 haHutanProduksiFFI/Macquarie Ketapang 10,300 ha HutanProduksiKonversiFFI/Macquarie Kapuas Hulu 39,000 ha HutanProduksiKonversiFFI AUSAID, FCO Ketapang(PT. KAL,and PT. CUS)Total 12000APLInnovative Conservation Since 1903

Community Forests• KetapangPematang Gadung, Sebadak Raya, andBeringin Rayo - Total 25000 ha• Kapuas Hulu:Jongkong Kiri and Piasak , Total 5,000 haInnovative Conservation Since 1903

Riam Berasap Village Forest Case StudyWhy is Riam Berasap Important?• Community Motivation: Plans for oilpalm conversion were abandoned aftercommunity members protested.• Biodiversity: Part of the forestedcorridor linking important orangutanpopulations in Sentap Kacang andGunung Palung.• Dependency on the Forest: Communityharvests NTFPs.• High Carbon Stocks: Forest is onmedium depth peat.• Continued Threat: Slated forconversion for new transmigrationsettlements.Innovative Conservation Since 1903

Local Communities asEnvironmental Stewards:FFI seeks to prepare local communities to becomeactive participants in conservation.Community Engagement Strategy:– Conduct a series of community trainingsessions on HCVF identification and carbonstock assessment techniques.– Hire local people to assist in carbon stockinventories.– Work with community leaders on engagingdistrict level government.– Ensure that community members havegiven prior and informed consent.Innovative Conservation Since 1903

Riam Berasap Village ForestLand Cover Classification Map• Land Area: 633 hectares• Majority of the high density peatforest is still in tack.• Located in important peat forestcorridor.• Low levels of degradation on theedges of the village forest.• Proximity to new roads and townsput the forest under threat offurther development.Innovative Conservation Since 1903

Riam Berasap: Carbon Emission Baseline and Revenue EstimatesExplanation of EmissionEstimates:• Initial emissions from timberextraction.• Slash wood is burned creatingemissions.• Palm growth included toaccount for potential smallholder system.• Drainage causes peatoxidation over the entireproject life.• Peat burning occurs duringinitial years of clearance.Carbon Revenue Potential:• 3 Pricing Scenarios: $2.5; $5;$10/Metric Ton.• Potential revenue for 30 yearproject: $17,849,669 USD.Innovative Conservation Since 1903

Riam Berasap: Next Steps• Work with local governmentto secure community landtenure of the village forest.• Engage investors on REDDproject development andcredit purchases.• Finalize carbon stockestimations and REDD projectdocuments.• Develop carbon revenuesharing mechanism.Innovative Conservation Since 1903

Pematung Gadung• Part of extended corridorlocated south ofKetapang.• 29,000 Hectares.• Communities motivatedfor conservation.• Multiple drivers ofdeforestation (Logging, oilpalm, mining).• Consists of peat forests.• Areas of high biodiversity.Innovative Conservation Since 1903

Restoration EcosysteminWest KalimantanInnovative Conservation Since 1903

Kapuas Hulu, Danau Siawan/Belida• Proposed project conserves landscapeadjoining RAMSAR-listed DanauSentarum National Park• 39,000 ha site identified for ERC(IUPHHK-RE)• Currently zoned HPK• Peat swamp forest, peat depths up to17m• Significant pressure for clearance andconversion to oil palm• Significant community and biodiversitybenefitsincluding preservation of orangutanhabitat, maintenance of water suppliesand fish species• Local benefit sharing mechanismsInnovative Conservation Since 1903

Ketapang, West Kalimantan• Proposed project surrounds Sungai-Putri peatforest, West Kalimantan• 57,000 ha site identified for ERC (IUPHHK-RE)• Currently zoned HPK• Last remaining example of mixed peat swampin the region with significant biodiversity ~500Orangutan• Peat swamp forest, peat depths up to 14.5mrecorded• Area under significant pressure for clearance– overlapping oil palm concession– Illegal logging activities– Subsistence agriculture clearance• Project activities– Application for ERC over the 10,300 ha– Negotiating to acquire logging concessionover the remaining 46,700 ha• Local benefit sharing mechanismsInnovative Conservation Since 1903

• Objective:1. To maintain the hydrological balance within the swamp forest ecosystem;2. To restore the productive capacity of the peat swamp forest;3. To protect and restore forest ecosystem functions;4. To restore and improve habitat quality, especially for endangered fauna; and5. To restore wildlife diversity and population.Innovative Conservation Since 1903

• Developer and partners:PT Wana Hijau Nusantara, FFI and Macquarie• Location: Danau Siawan/Belida, KabupatenKapuas Hulu, West Kalimantan Province• Size: 39,000 ha• Status Area: Conversion Forest (HPK)Innovative Conservation Since 1903

• Scope of Work:1. Control illegal logging and agricultural expansion2. Fire monitoring and control3. Restoration of the vegetation – natural regeneration should be possible4. Monitoring and evaluation5. Develop alternative livelihoods for the local communities, including sustainableforest management6. Potential for sustainable forest management with harvests in around 20 years,creating local employment7. Subject to future approval by Ministry of ForestryInnovative Conservation Since 1903

•Obstacle and Expectation to the Government• Delay in validation of the site, which double be caused by a delay inachieving appropriate licensing and concession - Delay in achieving subnationalimplementation of REDD which could preclude recognition ofcredits from the project in certain international carbon schemes (ieCalifornia)• Addressing any overlapping land use claims•Expectation to the Government• Shorten the process of obtaining IUPHHK-RE License• Clear regulation on REDD and REDD+ SchemesInnovative Conservation Since 1903

REDD in Oil palm HCVAInnovative Conservation Since 1903

Why does FFI engage palm oilcompanies on conservation?• Threat of palm oildevelopment in the corridor isclear.• Majority of region slated forpalm oil conversion.• Palm estates have a hugeimpact on local communitylivelihoods and access to theforest.• Concession areas are criticalhabitat for orangutans andother endangered species.Innovative Conservation Since 1903

REDD+ within Palm Oil ConcessionGoal: Create model to use REDD+to finance conservation of HCVareas within palm oil concessions.Initial Analysis:• HCVF Surveys confirm that partsof the concession are criticalorangutan habitat.• Deep peat areas mapped by ANJand surveyed by FFI scientificteams.• Draft Carbon Accounting Area(7000 hectares) designed topreserve critical habitat, deeppeat, and connectivity.• GHG Emission Reductions fromthe Carbon Accounting Areacould total 18,000,000 tons CO 2 e.Innovative Conservation Since 1903

PT KAL: Carbon Emission Baseline and Revenue EstimatesExplanation of EmissionEstimates:• Initial emissions from timberextraction.• Slash wood is burned creatingemissions.• Peat Drainage causes peatoxidation over the entire lifeof the project.• Peat burning occurs duringinitial years of clearance.• Emissions modeled over 30year period.Carbon Revenue Potential:• 3 Pricing Scenarios: $2.5; $5;$10/Metric Ton.• Potential revenue for 30 yearproject: $182,700,000 USD.Innovative Conservation Since 1903

REDD+ within Palm Oil: Next Steps• Create communitydevelopment plan.• Engage communities andgain local support for REDDproject.• Develop REDD revenuesharing mechanism.• Refine carbon accountingarea based on ecological,technical and socialassessments.• Develop project documentsunder the Voluntary CarbonStandard and Community,Climate, and BiodiversityAllianceInnovative Conservation Since 1903

Sumatera ProjectsInnovative Conservation Since 1903

Community Forests in MeranginWilayah Kerja FFI-IP bersama L-TB• Jumlah desa: 8– (dengan potensi memperluas wilayah)• Luas wilayah: 20,000 ha– (dengan potensi memperluas wilayah)• Model: Hutan Desa kelola berbasis prinsip-prinsip Adat• Status wilayah:– Hutan Produksi– Mature secondary forest– Mineral soils– 1 hamparan berbatas langsung dengan Kerinci Seblat National Park(TNKS)Innovative Conservation Since 1903

Innovative Conservation Since 1903

Program Berkerja SingkatPilot REDD+ berbasis Community Carbon Pool:Memfasilitasi proses Izin Pencadangan & Izin Kelola Hutan Desa:– POKJA Hutan Desa (FFI-IP, L-TB, Dinas Kehutanan Merangin);– Pemetaan partisipatif batas Hutan Desa dan batas administrasi;– Membangun Kelompok Kelola dan Rencana Kelola Hutan Desa;RTRW Mikro Desa:• Forest Inventory - Identifikasi potensi SDA dan potensi ekonomialternatif di wilayah HD;• Peraturan Desa (Perdes)Reference Emission Level (REL) dan MRV:– Remote Sensing Analysis & Carbon Inventory– Monitoring & patroli wilayah secara kollaboratif (TMP2H)Perencanan Partisipatif terkait Benefits-SharingVerifikasi CCBA & VCSInnovative Conservation Since 1903

Innovative Conservation Since 1903

Carbon Market StrategyWhy does FFI develop REDD projects under the VCS?• VCS is scientifically robust.• Double validated methodologies exist for peatforests in Southeast Asia.www.v-c-s.org• VCS credits are trusted by major corporations andbanks for offset requirements. (i.e Macquerie, Gazprom, Shell)• Multiple VCS projects in the pipeline in Indonesia.(i.e Rimba Raya, Kapuas Hulu, Ulu Masen)Innovative Conservation Since 1903