Amazonas Workshop: Readiness for REDD Experiences from Papua, Indonesia John Eckford Senior Analyst New Forests Advisory Inc Experiences from Papua, Indonesia 1 Wednesday, March 18, 2009 South-South Collaboration Workshop Amazonas, Brazil +1-415-321-3301 [email protected]
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Amazonas Workshop: Readiness for REDD
Experiences from Papua, Indonesia
John EckfordSenior AnalystNew Forests Advisory Inc
Experiences from Papua, Indonesia
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Wednesday, March 18, 2009South-South Collaboration Workshop
International CDM – Only Reforestation Forest Stock Change
Regulatory
International
(UNFCCC)
CDM – Only Reforestation
REDD post-2012 ?
Forest Stock Change
REDD post-2012 – ?
Domestic
(e.g. RGGI, WCI)
Reforestation
Forest Management
REDD – ?
Reforestation /
Deforestation
VoluntaryBusinesses /
Individuals
Reforestation
Forest Management
REDD
Not relevant
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REDD
• Voluntary market projects can move the REDD market forward while complex regulatory mechanisms are negotiated
• Develop technical methodologies and new business models
• Ultimately, REDD will survive or fail in regulatory markets
3. Papua Project Summary
• Began with Memorandum of Understanding between Governor Suebu & New Forests, May 2008
• Government nominated 3 concession areas – 2 were
Mamberamo
prioritized after desktop review
• June 2008, site visits to begin feasibility and project design
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Mimika
3. Papua Project Summary
• Mamberamo
o REDD site is114,750 hectares
o 50% under risk of conversiono 50% under risk of conversion
o Mamberamo Basin (8M ha) is largest & least disturbed tropical humid forest in Asia Pacific
o Low population density (12,000 people in Basin)
o 95% forested – low deforestation rate
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3. Papua Project Summary
• Mimika
o REDD site is111,344 hectares
o 33% under risk of conversiono 33% under risk of conversion
o Borders the Freeport mine and Lorentz National Park
o Low population density (<1000 people)
o Limited road access but encroaching development in the regency
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3. Papua Project Summary
• Project framework
o Baseline assumes conversion to palm
o Approximately 28MtCO2e conserved under project scenarioo Approximately 28MtCO2e conserved under project scenario
o Voluntary carbon sales – Voluntary Carbon Standard (VCS) & Climate, Community & Biodiversity Alliance Standards (CCBA)
o Revenues to local foundation, government & investors
o Local partner with political & implementation experience
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Still awake?
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4a. Governance
• MOU for joint development of REDD project: “commercially sustainable model for forest conservation and community conservation and community development”
• Applying for provincial license that will grant carbon rights to New Forests
• Term sheet defines financial arrangements
• Regency and district governments provide local political and
Gov. Suebu signing MOU, May 2008
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• Regency and district governments provide local political and logistical support
• Papua Carbon Foundation receives revenue from credit sales to fund community development & forest protection activities
o Governed by Advisory Committee with local stakeholders and relevant experts
4b. Baseline
Characteristic Baseline Assumption
Threat of Deforestation
Zoning for conversion (VCS: “Avoiding Planned Deforestation”) – palm oil developers already surveying areas & province has authority to surveying areas & province has authority to grant conversion licenses
Rate of Deforestation
Mamberamo: 60,000ha converted 2012-2022
Mimika: 37,000ha converted 2010-2020
Carbon Stock 792tCO2/ha (literature & field data)
Baseline Carbon Sequestration in growing palm plantation subtracted from project carbon stock
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subtracted from project carbon stock
Leakage Monitoring total areas zoned for conversion, rate and likelihood of conversion
4b. Baseline
• No existing methodologies for Avoiding Planned Deforestation -areas with low rates of historical
• Other areas of province have higher deforestation rates but causal “link” needs to be established
• Limited data and existing quantitative analysis of deforestation drivers
Where we are now:
• Understanding data requirements needed to establish biophysical and
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• Understanding data requirements needed to establish biophysical and economic feasibility of conversion
• Understanding modeling requirements to demonstrate likely rates of deforestation
• Evaluating in-house capabilities and resource needs
4c. Consultation Process
• Dozens of small villages in both project areas – primarily small scale agriculture, sago palm harvesting, hunting & fishing
• Loosely organized through district & regency governments
• In June 2008 met with local governments and held village meetings in conjunction with local NGOs and met with dewan
adat (tribal council)
Village meeting in Bagusa, Mamberamo,
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Village meeting in Bagusa, Mamberamo, June 2008
Meeting with regency & district government officials and village elders in Mimika, June 2008
4c. Consultation Process
• Initial feedback at all levels of was positive
• Written letter of support from head of dewan adat in head of dewan adat in Mamberamo
• However, questions remain regarding community development aspirations, project activities and socio-economic considerations relevant to project design and
Receiving letter from head of dewan adat in Casanoyagia, Mamberamo, June 2008
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relevant to project design and implementation
• Free, Prior & Informed Consent crucial to ensure successful project and social & environmental outcomes
4c. Consultation Process
• Free, Prior & Informed Consent
o Limited guidance & standards
o Work with best experts with field experience in community engagement for forestry in Papua and Indonesiaengagement for forestry in Papua and Indonesia
o Intention to provide full information about the project and potential outcomes & risks
o Decisions and debate at the community level to accept or reject the project
• Help shape the objectives and management plan for the Papua Carbon Foundation
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• Further establish channels of communication between impacted communities and government
4d. Link to National Strategies
• Indonesia is extremely active in REDD
o More than 20 REDD projects in development in the country
o Participant in the UN-REDD Programme and the World Bank Forest Carbon Partnership FacilityForest Carbon Partnership Facility
o Bilateral agreements with Germany (Forest and Climate Change Program) and Australia (Forest Carbon Partnership)
o Governors of Aceh & Papua (and several Brazilian states) have signed an MOU with US governors for inclusion of REDD credits in emerging carbon schemes
• Unclear how these activities will interact on a technical level (i.e. carbon accounting)
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(i.e. carbon accounting)
• However, biggest questions now are legal and financial…
4d. Link to National Strategies
• Draft legislation issued in mid-2008 required national government approval for all projects and 30% of credits transferred to a newly established government commission
o Unclear whether this applied to private projects outside o Unclear whether this applied to private projects outside national-level REDD demonstration activities
o Unclear revenue distribution and approvals through layers of government
• The national government is now working to revise and finalize legislation – June 2009
• Papua is exploring provincial licensing for REDD under Special Autonomy Law and provincial forestry regulations
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Special Autonomy Law and provincial forestry regulations
o As yet unclear how this interacts with national activities
o Remains a project risk
4e. Distribution of Benefits
• Beneficiaries at village, district, province and national level
• Private investment necessitates returns
• Primary distribution channel is the Papua Carbon FoundationFoundation
o annual disbursements to fund community development and forest protection activities – determined by FPIC process
o Advisory Board comprising representatives of community stakeholders and relevant experts