August 17, 2009

What we can learn from CARBON TRADING AND ITs IMPLEMENTATION? (A CASE STUDY IN ULU MASEN ECOSYSTEM PROJECT, ACEH, INDONESIA)

A. Legal Certainty (Legal guarantee):


Approval letter from the Minister of Forestry;

Ø Should be referred to National Act number 11/2006 about Pemerintahan Aceh (the Aceh Administration System)

Ø Minister of Forestry ‘s degree on REDD

B. Due Diligence :

1. The ownership of the carbon stock;

Ø State forest/land?

Ø Private forest/land?

Ø There is no field clear-marker / boundary

Ø Overlapping between official map used by forestry agencies and map used by BPN (National agency managing land certificate for non-state forest)

Ø Phylosphical value of ecosystem concept. Ecosystem does not refer to administrative based, indeed of imaginary.

2. The boundary of the Ulu Masen Ecosystem (UME) or Physical boundary of the project.

Ø There is no a nationally legal degree issued for the UME

Ø A necessity for a Provincial degree stating the strategic value of Ulu Masen region based on UU 26/2007 (Spatial Planning) and UUPA.

Ø A necessity for aerial and terrestrial work to construct state forest land-used marker and non-state forest land (private land).

3. Profit sharing mechanism. Some conflicts might occur in;

Ø National vs Provincial

Ø Provincial vs district

Ø Government vs Local people organization

Ø Government vs Private company

Ø Recently, there is no any global profit sharing mechanism agreed by parties

4. Lack of understanding of local staff on due diligence detailed aspects;

Ø Involvement of Provincial/district public servant, particularly Dinas Kehutanan (Forestry Service)

5. Entitlement of land in the area of forest, rights to transfer of title, concension rights of central government, and right to sell carbon stock, right to enter into the contract with foreign parties.

Ø Legal agreement between the GoA and third parties should be socialized before further field implementation

Ø There is no provincial formal entity bodies to manage some part of proposed land in Ulu Masen region in accordance to the Ministry of Forestry decree number 30/2009. In fact, the UME is constituted by some difference forest management unit.

Ø There is no any global agreement on carbon prices

Ø The GoA needs to prepare research on;

a. BCA on sustainable timber management vs sustainable carbon stock management.

b. Verification method

c. Who will be the Verifier?

d. What Methodology will be employed on carbon accounting

6. No official governmental lawyer who has a good capacity to deal with carbon transaction;

Ø Not just governmental lawyer. All related governmental agencies should be incorporated and empowered, particularly member of staff of Dinas Kehutanan, Environmental Protection Agency, Estate Crop, Agriculture, Aceh Board for Infestation and Promotion,



Original Slide Presentation written by:
RASYID & NURDIN
Reviewed by KLA & IHD


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