 REDUCING EMISSION FROM DEFORESTATION AND

FOREST DEGRADATION ( REDD ) IN DEVELOPING

COUNTRIES :
A CASE STUDY OF INDONESIA
 ( Part of Proposed Background Research )

By : Kadim Martana

Supervisor : Assoc . Prof . Bruce Manley

Co - Supervisor : Dr . David Evison

School of Forestry , University of Canterbury

New Zealand
 Outline
1 . International Context
2 . Indonesian Process on REDD
3 . REDD Demonstration Activity
4 . Proposed Research
 1 . International Context
nEmissionfrom Forestry Sector ~ 17.4% of total world emissions (A 4th
AR IPCC, 2007; Stern Review, 2007).
 1 . Int ’ l context .. Cont .
nAbout 75% of the forestry sector’s emission come from developing
countries [ e.g. Brazil, Indonesia, Malaysia, PNG, Gabon, Costa Rica,
Cameroon, Rep. of Congo, Democratic Rep. of Congo] - (A 4th AR, IPCC
2007).
nSource of emissions :
deforestation (conversion from land to non-forested land)
forest degradation (i.e. reduction of forest’s capability).
nPNG & Costa Rica’s proposal (COP 11th UNFCCC, 2005 (www.unfccc.int; MoF,
2008)
to provide incentive to compensate with developing countries’
efforts to Avoiding Deforestation (later known as Reducing
Deforestation and Degradation in Developing Countries/REDD)
Mechanism,

n
n
 1 . Int ’ l context .. Cont .
nCOP-13th UNFCCCadopted Decision 2/CP.13 on Policy Approaches
and Positives Incentives on REDD (including An Indicative
Guidance for Further Implementation of Demonstration
Activities on REDD) (www.unfccc.int; MoF, 2008).

V Compensation for
emission
reduction
BAU
Carbon Emissions
Reference level
(Baseline)

REDD

t
past future

Source : Ministry o Forestry , Indonesia ( 2008 )

2 . Indonesian Process on REDD
•Forest in Indonesia, based on functions

Tot al f or est ar ea : 123.45 mi l l i on ha

(~ 60 % of t he count r y l and ar ea)

14.06M ha
(11 %) 20.08 M ha
(16 %)

Forest Category:
Conservati on

31.78 M ha Protecti on
57. 53 M ha
(26 %)
(47 %)
Producti on

Converti bl e

Source : Directorate General of Forest Planning , MoF

Indonesia ( 2006 )
 2 . Indonesian Process … Cont .
nDeforestation rate in Indonesia

Economic crisis ,
Forest industry dev ., Decentralization
3 Pulp & paper plantation ,
Million ha/year

Moratorium on forest
2.5 Estate crops plantation conversion ,
( oil palm , rubber , cocoa ) Reduced AAC ,
2 Law enforcement ,
Improved forest
1.5 management .
1
0.5
0
1985-1997 1997-2000 2000-2005
Time period

Source : Directorate General of Forest Planning , MoF

Indonesia ( 2006 )
 2 . Indonesian Process … Cont .
• Further Look at Source of Deforestation and Forest Degradation in
Indonesia

Increase
Expansion of demand to
agriculture Exposed to
palm oil Repeated fires
plantation land
( subsistence
farmers )

Forest areas
( production forest ,
conversion forest , Deforested
protection forest ,
conservation
forest ) including Degraded
peat land forest

Illegal logging due

to high dependency Unsustainable
of wood supply from forest
mixed tropical management
Note : hardwood forests and practices by
Carbon credit from REDD limited alternative forest
in tropical countries is source of incomes concessionaires
expected to be $15 - 50
billion / year ( assumed
REDD at 50 % or 2 . 4 Gt
CO 2 per year )
 2 . Indonesian Process … Cont .
nIndonesia formed Indonesia Forest Climate Alliance (IFCA),
consisted of Governments, Private Entities, and Communities –
a stakeholder’s consultation forum working on forest and
climate in Indonesia, to analyse how a REDD Scheme could
operate as a practical carbon emission reduction (June 2007)
nCoordinated by the MoF, supported by partners (UK, Germany,
Australia, WB).
nThe IFCA provided preparation of papers which address
elements of the supply chain necessary to produce carbon
credits from REDD in Indonesia.
n
 2 . Indonesian Process … Cont .
nDeforestation and Forest Degradation Reduction Strategies of
Indonesia ( based on IFCA Study results , 2007 ):

Forest Function Recommended strategy initiative

1 Protected Areas The development of a revised national conservation strategy ,

The development of a professional and sufficient management structures ,
The confirmation of boundaries and the completion of the legal gazettal
process
process..

2 Production Review the production forest function ,



Forests  Reduce flow of illegal logs into market ( law enforcement ,

create new supply , restructuring wood products sector ),
Review management practices in production forest units ,

3 Oil Palm Consolidate policy and approval for releasing Convertible Areas for palm
developments
developments,,
Review spatial plans to optimise degraded lands ,
Intensify production per unit land

Require zero burning

4 Peatland Regulate and restore water table ,



 Prevent fire ,
Regulate further conversion of peatland , revise & enforce rules for
management of existing peatland ,
Implement land swaps to retain high carbon value forest and peats while
allocating alternative land for new plantations
 2 . Indonesia Process … Cont .
lIndonesia REDD framework/infrastructure on REDD includes:
aa..Setting Reference Emission Level (Baseline)

bb..Strategies

cc..Monitoring

dd..Market

ee..Benefit distribution.

lIndonesia moves to implement Demonstration Activities on REDD

 3 . Demonstration Activity on REDD
nAs a follow up from COP - 13 th UNFCCC ’ s Decision 2 / CP . 13 ,
Indonesia has some cooperations with partners to
implement REDD Demonstration Activities / DA .
(http://unfccc.int/resource/docs/2007/cop13/eng/06a01.pdf#page=3)
nObjectives of the DA are to :
Demonstrate REDD
provide shared learning and experience on REDD
to international communities .
n
 3 . Demonstration … Cont .

 What activities in the region?

 Activities are basically derived from recommended
strategies , which are carried out at the regional
level .


 These include ( summarized from KFCP Projects in

Central Kalimantan / ex . Mega Rice Project and
proposed activities at Berau District , East
Kalimantan ) :
 Addressing drivers of deforestation ( rehabilitation
of 1 million Ha degraded peatland – ex mega rice
project , restoration of peatland hydrology , law
enforcement to illegal logging );
 Fire prevention ( community based forest fire
management ), monitoring
 Community based forest management for REDD ,
 Agro - forestry and other forest based lively
initiatives ,
 Information sharing and outreach .
 Improved management of Forest Production Management
( for TNC proposals , since it includes production
 3 . Demonstration … Cont .
nProposed Location of DAs and Partners:
Kalimantan Forest Carbon Partnership (KFCP), as part of
Indonesia-Australia Forest Carbon Partnership
(IAFCP); located in Central Kalimantan .
Indonesia – Germany (in East Kalimantan) (Joint Study
Report, 2008)
Indonesia – UNREDD Programme (initial stage, in North
Sulawesi)
Indonesia – The Nature Conservation (TNC); proposed
location in Berau District, East Kalimantan
 3 . Demonstration … Cont .
•Proposed locations of REDD
DAs in Indonesia

Indonesia - TNC

Indonesia - Germany Indonesia -

UNREDD

Indonesia - Australia
 4 . Proposed Research .
Socio Economic Factors Affecting Behavioural
Changes of Forest - Stakeholders in the
participation of REDD DA : A study Case of
Indonesia

Main Objective :
to investigate socio economic factors that
induce changes of forest - stakeholders ’
participation on REDD DA .
•Some references :
( 2007 ). Climate Change 2007 : Synthesis Report . An Assessment of the Intergovernmental Panel
on Climate Change .
Ministry of Forestry , Indonesia ( 2008 ). Consolidation Report : Reducing Emissions from
Deforestation and Degradation in Indonesia . Jakarta 10270 , Forestry Research and
Development Agency ( FORDA ) Ministry of Forestry of the Republic of Indonesia .
( 2008 ). Support to Formulation of a Forest Programme embedded into the REDD Process : Joint
FC - TC Feasibility Study for the Indonesian - German Forest and Climate Change Programme .
German Financial Cooperation with the Republic of Indonesia .

Other sources :
www . unfccc . int
http :// www . climatechange . gov . au / international / publications / pubs / kalimantan . pdf
http :// www . un - redd . net /

Foto sources :
http :// www . borneotourgigant . com /
http :// www . geocities . com / degigant / West_Borneo . html
Presentation by Indonesia Forest Concession Holders Association
Thank You …
Terima kasih …
 3 . Demonstration … Cont .
Decision 2 / CP . 13 provides some Indicative Guidance :
nDemonstration activities should be undertaken with the approval of the
host Party .
nEmission reductions from national demonstration activities should be
assessed on the basis of national emissions from deforestation and
forest degradation .
nSub - national demonstration activities should be assessed within the
boundary used for the demonstration , and assessed for associated
displacement of emissions .
nReductions in emissions or increases resulting from the demonstration
activity should be based on historical emissions , taking into
account national circumstances .
nSub - national approaches ( activities within national boundary ), where
applied , should constitute a step towards the development of
national approaches , reference levels and estimates .
nDemonstration activities should be consistent with sustainable forest
management , noting , inter alia , the relevant provisions of the
United Nations Forum on Forests , the United Nations Convention to
Combat Desertification and the Convention on Biological Diversity .
nIndependent expert review is encouraged
 2. Indonesian Readiness.. Cont’

National2007
Policy: road map on REDD
Post
2008 2009 2010 2011 2012 2012
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Preparation Phase

* Analysis (Architecture
and Strategies) COP 13
* Communication/
Coordination/Consultations

-Design Fine Tuning

-System Establishment
- Pilot Design

Carbon-Finance (Pilots)

Workshop, SBSTA, UNFCCC, G8, Etc. - Pilot Implementation

-Testing Full
-Knowledge Management Implementation
of REDD

COP13 COP14 COP15

 IFCA process in the National Climate Change context prior COP-13
President of COP-13 Team
GOI National Coordination
Resource Persons for WG
Ministry of Environment

Energy Adaptation Forestry Tech. Post

CDM
Transfer 2012 Financing

7 Technical Working Groups on COP 13

MoF COP 13
MoFr Steering Committee MoF Chair of
(Eselon I Dephut) Team COP13
MoF Chair of MoFr Chair of
Donors : Alliance / IFCA Sub Team COP 13 on Sub Team COP 13 on
World Bank, UK, (Indonesia Forest Climate Alliance) :
Substantive Issues Side Events
Germany, MoFr, Other Mins, Local Govs,
CSOs, Academia, Donors, Private
Australia,, Etc
Sector, Int. Org

3 Activities Methodology/architecture Strategy Stakeholders

Study On Methodology for Consultations
Measuring and Monitoring Carbon Stocks Study On Study On
9 Studies Pulp & Paper Oil Palm
Coordination
Study On
Quantification of past and future carbon Study On Communication
emissions Production Forest
Study On
Consolidation of Payment Mechanism Study On Study On
Protected Area Peat Land
Study On Market

Consolidation

Source, MOF 2007

 REDD Mechanism
Compensation
for emission
reduction
Carbon Stock Carbon BAU
emission Reference level
? ?

REDD

past future
To achieve such established (agreed) level of (emission/deforestation)
reduction, strategies must be implemented in the field, following the
recommended strategies.
Strategies comprise a set of activities, and act as inputs (money

injection)
 REDD
REDD Area (e.g. District)

Sustainable forest Protection

management of Forest
Production Forest

Avoid Illegal logging

degradation (Rate of 1000
ha/year)
Involvement
of community
From RIL

in CDM
Community is given Project
concession right to
Protection forest is preserved (deforestation manage forest
rate reduced to 500 ha/year, therefore
sustainably
reduction of emission ~ 500*300 ton C +
Others (RIL, A/R CDM, Communty..) From A/R CDM
Source : Boer, 2007
 4. Emerging Questions

Common question:
What impacts would likely be of the REDD DA in term of social and economic, (+environment) ? At

regional, national level?

Specific questions:

1. How to assess current impacts of the REDD DA?

2. From the current state, how to further predict impacts from such intervention? – i.e. modelling impacts?
3. Can we go further to assess impact of the intervention toward local communities and other people dependent on
forests? E.g. Households income?
4. Can we go further to following questions
Other questions:

1. How can we link between the set of emission/deforestation target with those recommended/implemented
activities?
2. Given limited resources to implement strategies, to what extent that level of (emission/deforestation) reduction
could be achieved. In another way, Given an established (emission/deforestation) target, how much
resources for the strategies (a set of activities) should be provided? i.e. LP problem?
3. Considering many type of activities in the DA, how is the relative performance of each activity in the reduction of
emissions? How to measure? i.e Efficiency analysis?



 5. My Proposed research
 Proposed aim:
 This study aims at to investigate forestry sector’s potential impacts to a
regional economic development due to an inclusion of reducing
emission from deforestation and degradation (REDD) mechanism.
 Research questions:
 What would be economic and social impact s to a region ? e.g.
economic value, job creation from the strategies/activities
implemented?
 How can we link between strategies/activities with targeted reduction
of deforestation?
 Can we measure, its impact to low income groups / forest dependent
people? How is it compared to other medium and high income
groups? i.e. measuring income distribution.
 Can we link between three factors: level of deforestation reduction,
expansion of implemented strategies/activities, and regional
economic conditions?



 5. My Proposed … cont

Proposed location
Berau District of East Kalimantan Province is proposed to

be location of case study due to the following reasons:

 The Nature Conservation is now proposing this district as a
laboratory of REDD Demonstration Activity at a large scale.
It is expected that the project could start at 2010 (now in the
preparation & stakeholders consultation stage);
 Berau District used to be a place for Berau Forest Management
Project (BFMP). Reliable data and information are available;
 Rahardja (2005) has worked on forestry based land use
planning in the District. His work can be an important source
or base for the inclusion of REDD DA for regional economic
development.
 5. My Proposed … cont

Other locations:
Central Kalimantan (Ex. Mega Rice Project)

 The area include ex. Mega rice (1 million ha of

deforested peatland);
 Carry out by Kalimantan Forest Carbon Partnership
(Indonesia – Australia);
 Project has been lasting for a year.

Thank you
Volume Perdagangan
Karbon Dunia

Sumber: Capoor and Ambrosi, 2008

 Berapa Besar Pasar Karbon
Volume Transaksi Karbon sampai Maret 2006
(US$ Juta)
Mekanisme Pasar Harga Karbon
Kyoto Voluntary
Market,
Market ($US/
CDM, $92
ton CO2)
$8,000 CDM 8
NSW GGAS (Aus) 11.3
Chicago Climate 3.3
Kyoto Exchange (CCX)
Market
(non Voluntary market - 0.5 - 45
A/refforestation
CDM),
$24,000Voluntary - Avoided 10 - 18
deforestation

Sumber: Team IFCA (2007)

 Berapa Harga CER

Sumber: World Bank, 2006

 n A/R CDM n REDD
Stok
Stok Karbon
Karbon

nsasi
ko mpe
Ada
Ada kompensasi
Baseline
Baseline

Waktu Waktu

lPembayaran lPembayaran bisa segera

dilakukan setelah selama kita bisa
pohon tumbuh (perlu menunjukkan penurunan
menunggu) stok karbon berkurang
dibanding baseline
 Sumberdaya Hutan dan Potensi Pasar Jasa
Lingkungan
I n d o n eKarbon
s ia
25000 40 juta
180
20000 Semak belukar, tanah
160 terbuka, lahan pertania

Luas (000 ha)

15000 bercam pur sem ak
140
Forest Cover (M ha)

Hutan lahan kering dan

10000 m angrove terdegradas
120 5000
y = - 1 .3 7 5 3 x + 2 8 4 5 .7
100 2 0
R = 0 .9 8 8 5
80

si

si

n
as

er
uk

ta
at

nv

Hu
od

rb

Ko
Pr

Te

n
sa
1 9 4 51 9 5 51 9 6 51 9 7 51 9 8 51 9 9 52 0 0 5

n
n

si

ta
ta

wa
Dari berbagai

uk

Hu
Hu

Ka
od
Pr

ar
sumber

Lu
n
ta
Hu

Laju deforestasi tinggi 1.3 juta ha per tahun dan hutan yang tersisa juga
banyak yang terlantar. Melalui Mekanisme REDD, dengan menurunkan laju
deforestasi 50% dari yang terjadi selama ini dapat menghasilkan pendapatan
negara sebesar 3 sampai 10 milyar USD/tahun (asumsi harga karbon 5 dan
15 USD/tCO2dan stok karbon hutan sekitar 150 tC).
 Ilustrasi besar emisi pada kondisi tanpa dan
dengan adanya skema REDD

Potential kredit karbon ($)

350 Baseline 1
Emisi (juta ton CO2)

300 Baseline 2

250
REDD intervention

200

150

100
2007 2012 2017 2022 2027
 Ilustrasi besar emisi pada kondisi tanpa dan
dengan adanya skema REDD

JADI BASELINE SEBAGAI

350
Potential kredit karbon ($) PROYEKSI BESAR EMISI ATAU
PERUBAHAN STOK KARBON
AKIBAT DD DI MASA DATANG
KALAU TIDAK ADA SKEMA
300
Stok Karbon (juta tC)

REDD

250

REDD intervention
200
Baseline 2

150
Baseline 1

100
2007 2012 2017 2022 2027
Bagaimana menentukan
Baseline? OPSI-1: SEMAKIN BESAR
EMISI HISTORIS, SEMAKIN
BESAR PELUANG
PENURUNAN EMISI YANG BISA
OPSI 1: Dari data historis DILAKUKAN

 Rata-rata selama periode

tertentu di masa lalu

 Mengikuti pola emisi masa

lalu
OPSI 2: Pendekatan modelling

 Model spatial atau non spatial

OPSI 3: Pendekatan lainnya

 Kondisi stok karbon

menjelang pelaksanaan
REDD dan lain-lain
IDENTIK DENGAN A/R CDM
Reference level: deforestation
rate

Base
period Crediting period - for how long?

With REDD

Reduced emissions

Without REDD