List of REDD project in Indonesia

1. MERANG REDD PILOT PROJECT (MRPP) in Musi Banyuasin, South Sumatera; 150,000 ha; Inititated by the GTZ, Mo Forestry, Provincial Govt, MUBA District, http://www.merang-redd.net/
2. Ulu Masen project in Aceh; 750,000 ha, facilitated by Flora Fauna International (FFI)
3. Kampar project in Riau; 400,000 ha, Leaf Carbon Ltd. and APRIL/RAPP
4. Kuala Kampar project in Riau; 700,000 ha, WWF
5. Tesso Nilo in Riau, 50,000 ha, WWF
6. Harapan Rainforest in Muara Jambi-Jambi Province; 101,000 ha; Burung Indonesia, RSPB, Birdlife
7. Berbak in Jambi; 250,000 ha; ERM, ZSL, Berbak National Park
8. Kapuas Hulu and Ketapang in West Kalimantan; 157,000 ha; FFI, PT. Mcquirie Capital
9. Central Kalimantan; 50,000 ha, Infinite Earth
10. KFCP in Cetral Kalimantan; 340,000 ha; Government of Australia
11. Katingan in Central Kalimantan; area....... ha; Starling Resources
12. Mawas PCAP in Central Kalimantan; 364,000 ha; BOS, Govt of Netherland, Shell Canada
13. Sebangau National Park in Cetral Kalimantan; 50,000 ha; WWF, BOS, Wetlands Intl, Care Intl
14. Malinau in East Kalimantan; Global Eco Rescue, INHUTANI II, District Govt of Malinau
15. Berau in East Kalimantan; 971,245 ha; TNC, ICRAF, Sekala, Mulawarman Universitiy, WInrock Intl, Univ of Queensland
16. Heart of Borneo Kalimantan; 22 million ha; WWF
17. Poigar in North Sulawesi; 34,989 ha; Green Synergies
18. Mamuju in West Sulawesi; 30,000 ha; Keep the Habitat, Inhutani I
19. Mimika and Memberamo in Papua; 265,000 ha; New Forest Asset Mgt, PT. Emerald Planet
20. Jayapura in Papua; 217,634 ha; WWF
21. Merauke-Mappi-Asmat in Papua; ……ha; WWF
    

Source: karbon

Most of those REDD project are being implemented or initiated under the voluntary carbon trading scheme, or as a pilot project, prior to the enactment of the Ministry of Forestry's degree about the National REDD. Some further studies are needed.

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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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REDD Tricky agreement between US-based Conservation NGOs and Polluting Industry

Reduction Emission from Deforestation and Degradation (REDD) my be have a perfect spirit to combat global climate change, but I'm pesimist the REDD scheme is aplicable. Many opportunist are out there as reported by an independent site on 29 May 2009 (click tittle to check)

Some US-based conservation NGO -American Electric Power, Conservation International, Duke Energy, Environmental Defense Fund, El Paso Corporation, National Wildlife Federation, Marriott International, Mercy Corps, Natural Resources Defense Council, PG&E Corporation, Sierra Club, Starbucks Coffee Company, The Nature Conservancy, Union of Concerned Scientists, The Walt Disney Company, Wildlife Conservation Society, and the Woods Hole Research Center- have signed agremeent with polluting industry, allowing the industry earn credit if they finance conservation project, at the same time still release CO2.
Some of those NGOs have ever worked, or recently proposing projects, in Aceh; the Conservation International, Mercy Corps.

Based on environmental economics theory on carbon offsetting, it is possible for any interest party, either commercial company or NGO, to buy and sell the credit permit. Thus, a company may keep polluting and pay compensation or an NGOs may buy permit from a company. That’s all a game on global economic activities.

The problems are;
1. there is possibility between transnational company (TNCs) and international NGO to make ‘a black agreement’, cheating.
2. A de jure nationally owned rain forest becomes a global asset. Factually owned by a TNC or international NGO. The ‘new owner’ pays $x while a TNC earns $xxx and being allowed to keep poluting.
3. Around 30-50% of money paid to a nation will be used for managerial fee, most of it runs to overseas. It means a tropical forest country will only get $1/2x. Sadly.

We need a more perfect global agreement on REDD mechanism.

We need a more applicable policy instrument on REDD in Aceh.

Do you have idea?

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Newly National Decree on Indonesia’s REDD

Implementating REDD schemes have had some debatable controversial issue due to the absence of national legislation on REDD. Some issues are: Local government partnerships with overseas private company have resulted in low local profit sharing -30%, No legal position for local indigenous community around forest area, no chance for rural resident to participate in, unclear governmental role –central government vs provincial/local government, etc.

Recently, at national legal policy, those issue have been relatively elaborated since the enactment of the Forestry Minister’s (MoF) decree number 30/2009, May 1st, 2009. The MoF decree on the Guideline on REDD Implementation have covered some crucial issues:

1.Enables parties to implement REDD program in both state forest and private land (article 1,4,9). So there is possibility for: private/community to implement the carbon right concept, REDD project in a protected forest, conservation forest and production forest.

2.Provides changes for customary and local communities to participate in (art’l 4). This is a step ahead compared to the last COP in Poznan, international indigenous people alliance is trying to establish legal customary and indigenous people right in global agreement on REDD scheme.

3.REDD proposal for customary forest, village forest and private forest/land must be recommended, and or issued, by local/provincial government (art’l 8-10).

4.Unless for conservation forest, REDD proposal must be recommended by provincial government art’l 5-7)

5.Financial stream through REDD is governed by central government based on national financial acts.

Besides those positive points, I think there are some weaknesses or barriers for locals.

I’ll write down it later. Pretty tired now :)

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REDD and Aceh Green Commision: Challenges

Since the signing agreement/understanding on carbon trade with some parties, the Aceh Governor, of Indonesia, has become more popular in the world. The agreement bound a partnership with private companies such as Carbon Conservation Ltd (CC) and Merryl Lynch initiating restoring and funding scheme. The CC’s contract focuse in the Ulu Masen Conservation (UMC) region while the Sustainable Forest Management(SFM) ltd. Is applying for an investment right in the Leuser Ecosystem Region.

Something funny in the recent world scheme of carbon trading, more popular called as the Reduction Emission form Deforestation and Degradation (REDD). Though the legal implementation will be conducted after 2012, many financial private company, known as Trans National Corporations (TNCs), claim a particular forest region in some nations as their project location. For example, as shown in their website, the SFM claim the Leuser Ecosystem Region (LER), of Indonesia, as their project area while in fact their proposal is still being processed by the Aceh Investment and Promotion Board. Stating the LER as their project area may block other international parties to participate in.

Domestically, the legal status and mandatory indicators of some potentially forested area of Aceh, for instance, the LER, the UMC, and Tripa swamp, is not clear yet to be incorporated as global REDD scheme as shown in Progress REDD table for some potential REDD or CDM in Aceh, of Indonesia. The REDD Proposal for the Ulu Masen Conservation region have passed audit process by smartwood but the management board is not yet formed. A management board for The Leuser Ecosystem exists but other conditional indicators have not been established. The Tripa swamp has project plan proposal but it has no management board.

It is obvious that the REDD philosophy, its potential for caring Aceh forest and the challenges are not yet socialized among provincial environmental stakeholders. Some prospectors, NGOs and government’s departmental leaders simply saw provincial forest as source of money throughout the recently unclear global REDD scheme. Support the REDD idea with avoidance of other socio-economic function of forest land. Other parties are opposing the REDD regarding local people rights (carbon rights), being afraid for the weakening of their institutional power.

To be work well, the Aceh Government need to synchronies’ national Acts and other policy with provincial legislation. Unfortunately, no one provincial legislation have been enacted. Recently, a Governor’s degree is being processed and parallel with the formulating of the Commission of Aceh Green. In accordance with the Department of Forestry (DoF) of Indonesia’s REDD commission, the Aceh Green Commission should be more perfect and more effective as it will be implemented at more specific area.

Do you have any idea? Please read the DoF’s document and share your opinion.. We will discuss it later for our better global environment.

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