5

1

ISPO Commission

ISPO Certification and GHG Criteria

Dr. Rosediana SuhartoIndonesian Sustainable Palm Oil Commission

(ISPO Commission)

2

ISPO Commission

ISPO Certification System

ISPO Certification consists of 2 steps:1. Plantation Business Assessment

to follow Ministry of Agriculture decree

2. Certification to follow International Standard Organization ( ISO)

3

ISPO Commission

Certification Process

• Plantation Business Assessment Pre-certification process according to Ministry of Agriculture regulation classified oil palm plantation into 5 classes which are: Class I (very good), Class II (good), Class III (adequate), Class IV (inadequate) and Class V (highly inadequate).

• Only Class I, Class II and Class III plantations may submit application for ISPO certification.

4

ISPO Commission

Plantation Assessment by Ministry of Agriculture

1. Legality2. Plantations management3. Plantations aspect of cultivation4. Processing5. Social6. Economic7. Environment8. Report

5

ISPO Commission

Implementations of ISPO

There are 7 generals obligations to be fulfill by companies:

1. Compliance with rules and regulations on legal permit2. Responsible implementation of plantations

management3. Implementation of best practices in plantations and

mills4. Responsible implementation of environment

regulations and conservation of natural resources5. Responsibility upon employees6. Responsibility upon individuals and communities

affected by growers and mills7. Commitment to long term economic empowerment

6

ISPO Commission

The development of ISPO Criteria

• Besides the existing criteria which based on rule and regulations (Law of the country, President Decrees and decree from Ministry of Environment, Forestry, Labour, National Land Agency and Ministry of Agriculture it is also taking into account the local government regulations).

• 7 principles, 40 criteria and 128 indicators• ISPO is mandatory it has to be implemented

by January 1, 2015.

7

ISPO Commission

New and Improved Criteria and Indicators

• Amend the HCV criteria with protected area in accordance to Presidential Decree No. 32, 1998

• The inclusion of the regulation on peat moratorium (Presidential Decree No. 10/ 2011)

• Criteria of GHG emission, is set up to support the President statement in Copenhagen in 2009 to reduce GHG emission to 26% and 41% if foreign assistant is available and other high officials commitment.

8

ISPO Commission

ISO standard Use in ISPO

• ISO/IEC 17021-2006Conformity Assessment – Requirements for bodies providing audit and certification of management system

• ISO 19011-2011Guidance on auditing management system

• ISO 9000-2008 Quality Management System• ISO 14000-2004 Environmental Management

System• ISO Guide 65-1996 General requirements for

bodies operating product certification system• ISO/IEC Guide 66-1999 General requirement for

bodies operating assessment and certification/registration of environmental management

9

ISPO Commission

The GHG emission in oil palm plantations and mill

• Land Use Change• Indirect Land Use Change, future land

opening• The use of fertilizer and pesticides• Palm Oil mills Effluent (POME)• Transport and electricity or diesel• Process to produce CPO from FFB in the mill.

10

ISPO Commission

Criteria of GHG Emission

• avoid the use of land with high carbon stock, reduce any cause that produced GHG emission, special attention have to be given to reduced emission from POME by using methane capture facilities (effective by the year of 2020)

11

ISPO Commission

Environment Management an monitoring 4.1GHG mitigation. Oil palm planters and millers have to identify the source of GHG emission

Indicator 1. SOP/work instruction and

Technical guidance for mitigation of GHG emission

2. Record of historical land use change

3. Record of effort to mitigate GHG emission

recommendation

• To make inventory on sources of GHG emission

• Reduce GHG emission methane capture. Water management in peatlands, management of fertilizer and pesticides. Carry out calculation ,

• To utilized solid waste from POME for fertilizer , EFB and other solid waste ( fibers, shell, ) to generate heat for the boiler

12

ISPO Commission

Type of Certification Process

1. Grower Certification2. Supply Chain Certification3. Holding Certification (on the basis of

supply chain certification)– Certificate is valid for 5 years and

surveillance will be done every 1 (one) year.

– Complaints should go to specific procedures decided by ISPO Commission

13

ISPO Commission

ISPO Certification Process• Management system of the

company/plantations must ensure that:1. Type of certification system that the buyer

need.2. Find certification body which could conduct

an audit in accordance with the chosen certification system.

• Negotiate a contract to see the total man days, use reference established by ISPO Commission. Auditors should use information on audit done by other certification body.

14

ISPO Commission

Approval of Certification BodyCertification Body Submit the Application with the

Supporting Documents as Required by ISPO Commission

The Secretariat of ISPO Commission Checked the Application

The Secretariat of ISPO Commission Announce the Application of Certification Body and Request Public

Response within 1 (one) month

Document Complete

The Result of Application Assessment and Public Response are Delivered to the ISPO Assessment Team

The Assessment Team Provide Its Recommendation to ISPO Commission for Approval

The Applicant is Approved as ISPO Certification Body and Announced Publicly through ISPO Website of www.ispo-

org.or.id

Approval

Notification for The Applicant to Complete The

Supporting Documents

Field Visit to the certifica-

tion body

15

ISPO Commission

Approved Certification Bodies

• There are 5 certification bodies approved and appointed by ISPO Commission to do the certification, which are:

1. PT. Mutuagung Lestari;2. PT. Sucofindo (Persero);3. PT. TUV NORD Indonesia;4. PT. TUV Rheinland Indonesia; and5. PT. SAI Global Indonesia.6. 2 other certification body has approved

• There are 11 more certification bodies awaiting for approval. However they had to be accredited by National Accreditation Committee and possess auditors which have been trained by ISPO Commission

16

ISPO Commission

Audit Process

• At the moment there are 15 oil palm plantation companies which is in audit process, four had submitted the reports, and assessment is in process.

• Consultation with ISPO Commission on unclear regulations go through a secretariat’s email which will assist the certification bodies comprehend the regulation.

• Name and qualification of the oil palm plantation is online through www.ispo-org.or.id . Any comments and rejections from stakeholders, should be addressed to ISPOC Secretariat complete with reliable evidence and data.

17

ISPO Commission

Complaint Process

• Claims, Appeals and Arbitrage• Claims will be handled by ISPO Commission

on which established Certification Claims Committee, if the decision of this Committee could not be accepted by Complainer they can appeal to arbitration panel, this is only related to the ISPO requirement and its implementation related to its system

18

ISPO Commission

Auditor Training Program

• On October 2011, Ministry of Agriculture with National Standardization Agency organized the first ISPO training with 21 participants;

• On March 2012 ISPO Commission Secretariat organized the second training with 44 participants;

• On 21-26 May 2012 ISPO Commission Secretariat organized the third training with 42 participants.

• As for now the total auditor legible for ISPO assessment is 174 auditors.

19

ISPO Commission

Future Auditor Training

• 24-29 September 2012. 44 auditors trained.

• 19-24 November 2012. 44 auditors will be trained.

• ISPO Commission conduct 5 auditor training per year. For the year of 2013 the auditor training was planned to be organized in the months of February, May August and October.

20

ISPO Commission

ISPO Promotion

• The promotion of ISPO had been done in Spain, Italy, France, Germany and Russia on the year of 2011 and 2012.

• On November and December 2011 there were 12 locations for ISPO promotion attended by 850 participants. The promotion was organized in coordination with Indonesian Palm Oil Board, Indonesian Palm Oil Producers Association and local district offices lead by Ministry of Agriculture.

• The promotion of ISPO organized on February 2012 at Bogor, Indonesia was attended by 234 participants.

• On 2012 the socialization of ISPO was organised in 10 provinces namely: North Sumatera, West Sumatera, South Sumatera, Bengkulu, Jambi, Lampung, West Kalimantan, South Kalimantan, Central Kalimantan, South Sulawesi.

21

ISPO Commission

ISPO Commission and Other Certification Agency

• Approach to ISCC and IFEU in creating a credible and simple calculation on GHG Emission

• Approach with RSPO• Meeting with EU Commission

22

ISPO Commission

ISPO and EU RED

• Criteria of GHG emission, avoid the use of land with high carbon stock, reduce any cause that produced GHG emission, special attention given to reduced emission caused by POME by using methane capture facilities (effective by the year of 2020), with incentive given by government we hope before 2020, minimum 60% of Indonesian palm oil mill has implemented the methane capture

23

ISPO Commission

ISPO and US EPA NODA

• The use of methane capture facilities will be implemented mandatory in ISPO by 2020, but emission saving calculation should take into account the presence of side product (PKO and PKE). Saving emission calculation only for biofuel to follow each step of process.

24

ISPO Commission

Plantation certificate

• ISPO Commission expected to announce more than 10 companies which received ISPO certificate at the end of 2012. These companies has fulfill ISPO Criteria and its certification system.

• These companies can apply, the supply chain certification after one year.

25

ISPO Commission

Thank youIndonesian Sustainable Palm Oil Commission(ISPO Commission)Ministry of AgricultureC Building 5th Floor Room 5.09Jl. RM Harsono No. 3 RagunanJakarta Selatan 12550Indonesia Phone/Fax : +62 21-787460, 7818367Email : [email protected] : www.ispo-org.or.id