By Alue Dohong)
Email: aluedohong@gmail.com
) Lecturer staff at Faculty of Economics, Palangka Raya University (UNPAR), Central Kalimantan, Indonesia
Presented at:
MSI Seminar: Resolving Policy Conflicts Towards a Proactive Response to Climate Change in Indonesia
Thursday, 12 May 2011, MSI Conference Room,Bldg 74, MSC ,Monash University,Clayton Campus,
Melbourne, Australia
Presentation Outline
• Background
• Overview of REDD+ Development
in Indonesia
• Distribution of REDD+ Benefits at
Community level
A/R CDM (Kyoto Mechanism) = AD ≠ NOT Included
COP-10 (Montreal, Canada 2005): RED
COP-13 (Bali, Indonesia, 2007): REDD
COP-14 & 15 (Poznan, Poland, 2008) & Copenhagen,
Norway, 2009) : REDD+
REDD+
REDD
RED
(2005)
(2007)
(2008onward)
Total tropical forests cover =136.8 Mha (INS-REDD+, 2011)
Conservation Forests = 25.29 Mha
Protected Forests = 30.96 Mha
Production Forests = 33.96 MHa
Limited Production Forests = 25.94 Mha
Converted Production Forests = 20.64 MHa
821 Mt CO2e (60%) out of 1,378 CO2e of Indonesian
Emissions in 2000 came from LULUCF (MoF);
Emissions from Deforestation = 19% & Drained Peatlands
= 17% (Verchot at al, 2010);
About 70 million people relied their living on Forest
Resources;
The 7%-26% strategy (domestic resources) & the 7%-41%
strategy (international assistance).
2,950
Agriculture
Industry
Wastes
2,120
Energy & transportation
1,720
Forestry1 & peat
Year 2020 > ↑40% (2005)
Year 2020 > ↑71% (2000)
Forestry & Peat
> 60%
2000
2005
2020
Source: Indonesia’s Second National Communication to UNFCCC
Energy
Transportation
Industry
Agriculture
Forestry
Waste
Peatlands
DEFORESTATION, FORESTS BASED
EMISSIONS IN INDONESIA
&
EMERGENCE OF
SCHEME
Mha/Year
(Whole Country)
(forested Area Category)
(Non-forested Area Category)
Central Kalimantan
Total CO2e emissions by region from Deforestation
in Indonesia period 2000-2005
Sulawesi, 4% others, 2%
Papua, 7%
Nusa Tenggara Group, 1%
Maluku, 2%
Sumatera, 56%
Kalimantan, 26%
Bangka, 1%
Bali, 0%
Jawa, 1%
Source: IFCA 2007 (Consolidation Report)
27th May 2010: LoI between GoI-GoN Signed
Source: REDD+ National Task Force
Source: REDD+ National Task Force
Source: REDD+ National Task Force
1
2
▪
▪
▪
Institutional & Processes
Law & Regulation Frameworks
REDD+ Special Body
Funding instrument & institution
MRV System & institution
o Monitoring
o Reporting
o Verification
 Revie land rights & acceleration of
spatial plan
 Improve law enforcemenet & corruption
prevention;
 The 2-year permits suspension on
primary forests & peatland
 Improve land cover data & permits on
primary forests & peatlands
 Synchronization of incentives system
3

Strategic
Programs
a
Sustainable
Landscape
Management:
b
▪
Sustainable
economic system of ▪
natural resources ▪
utilization:
▪
c
4
Conservation &
rehabilitation:



▪
▪
▪
Landscape planning & mgt/ ecoregion/River basin
multifunctions
Expansion of sustainable job alternatives sustainably
Acceleration of formation & operationg of FMU
Control & Prevention of Land & forest fires
Triggering sustainable forest management practises
Improving productiivity of agriculture & plantation
Implement ing good & eco-friendly mining practices
Promoting downstream industries with high added value

Stakeholders
Involvement


Emission
Reducted

Forest carbon
stock increased

Biodiversity &
environmental
services
maintained

Economic growth
Strengthening function of protected areas
Controlling convertion of peat and peat forest
Restoring peat forest & peat rehabilitation
Perubahan
 Strengthening governance of forestry sector
paradigma &  Empowerment of local economic sustainably
budaya kerja  National campaign for the “save Indonesia forest” action
5

Conducting iinteraction with multi-parties (regional govts, provate sectors, NGOs,
traditional/local communities/international)
Developing social & environmental safeguards systems
To distribute and to share benefit equally/equity
Source: REDD+ National Strategy (revised version)
Global governance level
Donor
Representative
RI President
Joint Consultative
Group (JCG)
Independent
Review Group
Implementation governance level
REDD+ Agency
Funding
Instrument
MR+V
Regional REDD+
Agency
Implementer,
Programs, Projects, Activities
Source: REDD+ National
Strategy (revised version)
2
3
1
Source: Indonesia’s 2nd REDD+
National Strategy
1
Fiscal transfer from Nat.
Budget (APBN) to Local
Govts (Revenue sharing
(DBH), General Alloc Gund
(DAU) , Special Alloc Fund
(DAK) = Incentives for
forest management & land
Utilization
2
National Budget (APBN)
could share / fund the
REDD+ Partnership
(off-Treasury)
3
REDD+ Partnership Fund
could provide reward
and/or policy/programbased financing for local
Govts to Support REDD+
Implementation
CO2
3 Bold Questions?
• How much REDD+ Benefits to be
allocated (Allocation system)
• Who will distribute the Benefits
(Institution system)
• To whom the benefits to be given
(Payment Distribution Mechanims)
channelling of REDD+ benefits
(financial incentives) from buyers to the
carbon credits producers;
re-distributions of
REDD+ benefits (financial incentives) to
actors of who deliver the activity of avoid
or reduced emissions & enhanced forest
carbon stock (sequestration).
Three
Dimensional
Aspects
Payment
Institution
Allocation
System
Payment
Distribution
Mechanism
is an institution that is responsible to
receive, to keep, to distribute & to report the REDD+
benefits (financial incentives) generated from delivering
activities of avoid or reduced emissions as well as enhanced
forest carbon stock;
is a method or approach to allocate
proportion of REDD+ benefits (financial incentives) among
emission reduction & sequestration actors in the field
is the re-distribution of REDD+
benefits to whole actors involved in the activity of avoiding
or reducing emissions as well as enhancing forest carbon
stock on the ground.
Village
Business
Unit
(BUMDes)
Cooperatives
Credit Union
Payment
Basis
Principle
Allocation
Model
• Effectiveness: payment to be paid only for
positive reduction and/or sequestration
• Efficient: Payment procedure should less
bureaucratic & simple institution (directly
from buyer to the actor)
• Equity: Big proportion of the benefits should
go to people who significantly done the job
(avoid/reduced of emissions or improve
sequestration) – Implementation Costs >
transaction Costs
• Input-based: Payment is made base on total
inputs given/allocated to avoid or reduced
emissions or enhance forest carbon stock . E.g.
switching activities from BAU to Carbon-based
(opportunity costs approach);  input ownership
issue? (private, communal or public?)
• Output-based: payment is made base on final
outcome delivered
1) Emission-based;
2) Stock-based
Disturbances
C gain from
growth
Emission-based
(gain-loss approach)
Land use types
C = Cgain Where:
Stock-based
(stock difference approach)
Harvested
Closs
C = change in carbon stock yearly in pool (tC/year)
Cgain = Carbon gain yearly (tC)/year
Closs= carbon loss yearly (tC/year)
Carbon Stock
Year-1
(t1)
Carbon Stock
Year -2
(t2)
C = (Ct2-Ct1)/(t2-t1)
Where:
C = Change in carbon stock yearly in pool (tC/year
Ct1 = Carbon Stock in pool in year t1 (tC)
Ct2 = Carbon Stock in pool in year t2 (tC)
• Payment allocation System can be determined
through the following approach:
– Proportion of village area that engage in the
REDD+ activities (spatial factor);
– Number of activity relatives to the REDD+
interventions that are implemented by village
(activity factor);
– Number of inputs allocated by village for REDD+
activities (input factor)
– Total emissions avoided/reduced CO2
sequestered (emission factor).
Direct
Distribution
Method
Clear ownership (private,
communal, state)
Indirect
Cash
Payment
Mechanism
Livelihoods
support
Form
Non-Cash
Public utilities &
facilities
Daily
Time
Monthly
Yearly
Q & A ??
Thanks