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KEY INSTITUTION AND THEIR ROLE IN REDD READINESS No. 1. Name of institution Ministry of Forestry Key Function in the REDD Responsible for the overall management which includes improvement and managing public access to forest areas Focal point of UNFCCC for Indonesia Set up IFCA (the Indonesian Forest and Carbon Alliance) Notes Production forest (one of forest function categories in Indonesia) is the key category for REDD targets. With support of the Ministry of Environment It is an initial step in REDD readiness. It is a multi-stakeholder alliance. Established and managed by the forestry research agency (FORDA). Coordinated by the World Bank.

Government

a.

BAPLAN (the forest spatial planning directorateBadan Perencanaan

Initially the Ministry of Forestry had a strong and clear mandate with regards to the development of REDD. The recent year has seen a significant rise in interest in REDD as during the COP 13 REDD was included in the Bali roadmap and mainstreamed effectively. Responsible for the Forest Resource Inventory System (FRIS)

It is integrated into the National Carbon Accounting System (NCAS). The NCAS monitors terrestrial carbon. all

FRIS will be the basis for monitoring, assessment and reporting for REDD and GHG. A key player for REDD readiness in the Ministry of Forestry. b. FORDA Research Development Badan Kehutanan) (Foretry and AgencyLitbang FORDA Managed IFCA (the Indonesian Forest and Carbon Alliance) FORDA leads the IFCA process/ Has conducted a series of studies on different aspects of REDD organized through the set up of working groups. By the time of COP 13 in December 2007 each of the working groups had developed their technical papers to a comprehensive nd 2 draft stage.

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FORDA leads the REDD methodologies development. Leads REDD conceptual development, A key player for REDD readiness in the Ministry of Forestry. c. Directorate General of Forest Production Responsible for the management of production forest and industrial forestry estates. Set production targets and decides on use of production forests areas

d.

Directorate General of Land Rehabilitation and Forest Protection Ministry of Environment The Ministry of Environment has a role to play at implementation levels through environmental impact assessments of REDD and Environmental service concessions. responsible for mainstreaming climate change into general development policies. MoE has been acting as the focal point for the UNFCCC.

2.

3.

The Ministry Affairs

of

coordinating Economic

The ministry has been instructed by the president through Presidential Instruction 5/2008, which instructs the Ministries of Forestry and Environment to issue REDD regulations and gives a clear mandate to coordinate REDD implementation BAPPENAS is responsible for overall development coordination which includes the management of financial/technical assistance from Development Partners.

4.

BAPPENAS

It is the coordination the implementation of bilateral and multilateral aid projects which includes the REDD pilots financed by AusAID and BMZ (The German Federal Ministry of Economic Cooperation and Development) BAPPENAS is working towards the establishment of a climate change multi donor trust fund. BAPPENAS has initiated project ideas, presented in the national development response to climate change or yellow book, to initiate the

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development of equitable and efficient REDD value chain and payment mechanisms. It is responsible the development and management of a national REDD fund. Leads international coordination and overall coordination with line ministries 5. Ministry of Finance It is responsible for the design and implementation of payment mechanisms insofar it concerns resources. This includes a possible 30% (pending upon interpretation of the tax legalization) levy on REDD generated revenues. Payment mechanism and a possible national fund. Involvement in setting of a Badan Layanan Umum (General Public Services) and in the oversight of a BLU, It is responsible for spatial planning and oversees the implementation of law 26/2007 It is managing the state owned estate crop companies and is responsible for the development of palm oil production in Indonesia. MoA is generally seen as one of the most significant drivers of deforestation. 8. Ministry of Trade and Commerce. It is responsible for trade related issues and its policies impacts on prices and trade volumes of palm oil, pulp and paper, plywood and other forest related products. It is responsible to update and manage spatial and mapping data for the whole country Special autonomy law has let these province to control its forest management

6.

Ministry of Public works/General Directorate for Spatial

7.

Ministry of Agriculture

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BAKOSURTANAL

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Provincial/District Government with special autonomy

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(Aceh, Papua)

Institutions established by government
1. IFCA (the Indonesian Forest and Carbon Alliance) It has conducted a series of studies on different aspects of REDD organized through the set up of working groups. By the time of COP 13 in December 2007 each of the working groups had developed their technical papers to a comprehensive nd 2 draft stage The council comprises of six working groups of government officials to deal with issues of adaptation, mitigation, technology transfer, finance, forestry and post-Kyoto aims. The exact roles and responsibilities of the forestry working group and possibly links to the IFCA group are yet to be defined; potentially it could play an important role in establishing a favourable policy and regulatory framework for REDD in Indonesia It is a newly established body in the Ministry of Forestry which has been given authority to advise the Minister on policy, strategic plan, implementation of programs and activities, and facilitate any initiatives from stakeholders related to climate change adaptation, mitigation and transfer of technololgy, including clean development mechanism and reduced emission from deforestation and forest degradation (REDD). Managed by FORDA, Ministry of Forestry.

After the World Bank commenced to reduce its support to IFCA, coordination faded and oversight was lost

2.

The National Climate Change Council (NCCCDNPI) – PP No. 46/2008

It is a newly established body which has been given significant authority to advise and oversee implementation of both climate change adaptation and mitigation policies. This national counsel is being established and will be the future UNFCCC focal point. The final arrangements with regards to the role of the Ministry of Environment remain unclear.

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Climate Change Working Group in the Ministry of Forestry (Kelompok Kerja Perubahan Iklim Departemen Kehutanan)SK Menhut No. SK.13/Menhut-II/2009

Non-government International Institution
1. CIFOR CIFOR has conducted an in

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depth assessment of deforestation drivers 2. ICRAF ICRAF has published a study within the framework of ASB which looks at the development of swidden systems and how they impact the landscape



Current status of REDD readiness in Indonesia (REDD MATRIX) What has been done so far by whom? (Bilateral/multilateral initiatives (moving towards compliance markets)) (Voluntary market initiatives) REDD readiness initiatives in Indonesia up to the end of 2008.

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No. Project / Initiative name Initiator(s)/ support project by German Government (BMZ, implemented by KfW/GTZ): Focus of the project Status (start & current)

1.

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Securing natural carbon sinks and habitats of special significance in the Hearth of Borneo through community empowerment, forest restoration and collaboration with the private sector.

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International Forest Climate Partnership

WWF Germany, WWF Indonesia, Pemda Kapuas Hulu, Sintang and Melawi; Local NGOs (Dian Tama foundation, Riak Bumi, PPSHK Kalbar, PRC Foundation), Mulawarman University AusAID

and

This project tentatively aims to support “The implementation of strategies for forest conservation and sustainable forest management results in reduced GHG emissions from the forest sector and improved living conditions of the impoverished rural population”. The project will be working in 2 to 4 districts in Kalimantan, mostly located in what is called the “Heart of Borneo” which encompasses the provinces of East and West Kalimantan The project focuses on a district implementation model. This project aims to support “The Securing natural carbon sinks and habitats of special significance in the Hearth of Borneo through community empowerment, forest restoration and collaboration with the private sector”. The project will be working in the Leboyan forest corridor and the Bukit Baka Raya National park (West Kalimantan). The project is intended to secure forest cover within the Heart of Borneo landscape to maintain carbon stocks, secure important wildlife habitats and to reduce vulnerability to climate change.  The partnership encompasses the following key areas: o Policy development and capacity building to support participation in relevant international negotiations and future carbon markets; o Technical support for Indonesia to develop its national forest carbon accounting and monitoring system; and o Development of largescale project based demonstration activities, and the provision of related enabling assistance, to trial approaches to REDD. This includes the Kalimantan forest and carbon partnership and a second demonstration project, of which at the time of writing no

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specifics were known. the World Bank is moving from technical assistance towards financing. The bank played a key role in coordinating IFCA of which outcomes are perceived as reasonable successful despite the fact that currently the process is somewhat stagnating. Nevertheless the Bank anticipates that Indonesia will participate in the forest and carbon partnership in which case it is eligible for readiness support. The World Bank foresees that in the Indonesian case, the Forest Investment Fund would be a key vehicle in supporting REDD. Eligible activities could include: o Shifting agriculture to non-forest lands, o Restoration of degraded forests o Protection of forests against fires, etc. o Build capacity for better forest management The forestry investment could be supportive to finance industry restructuring programs such as re-allocating planned palm oil development from peat land soils to mineral soils, closure of saw mills/plywood mills, developing alternative employment for households depending on timber processing facilities etc. The GoJ has activities through a program loan, implemented together with the French Government and technical assistance activities. o A Program Loan of 500 million USD to which Japan contributed 300 million and France 200 million. The loan is managed by JBIC. The program loan is a budget support mechanism in which disbursements are made dependent upon progress in climate change policy

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IFCA

the World Bank



5

program loan

Government of Japan and French Government



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development and implementation. REDD implementation regulations are included as a performance indicator. o JICA is working on pilots in Sumatra on a small scale in South Sumatra and Jambi, mostly in Peat Swamp areas (Berbak National Park). JICA provides support to the development of a National Carbon Accounting System through provision of satellite imagery and through developing links with its pilot projects  Dutch Government assistance is focussing mostly towards peat/low land management. Key activities include a second phase of Dutch funded but NGO implemented program Central Kalimantan Peatland Project (CKPP). CKPP could be aligned with the AusAID funded KFCP program. Furthermore, the Dutch Government might fund a low land development initiative with a significant spatial planning component. This initiative covers around 750,000 ha of forests. Development of the first forest protection project - to be approved by leading international standards for reducing emissions from deforestation and degradation (REDD) – It is expected to prevent 100 million MT of CO2 from being emitted over the next 30 years. The project is designed to deliver significant amounts of carbon credits for future sale on the voluntary carbon markets. The project achieved certification against the Climate, Community & Biodiversity (CCB) Standards in February 2008. As the first of its kind, the project is likely to have a significant impact on the design and implementation of REDD projects in the future in Indonesia The project‟s activities are predicted to reduce deforestation of Aceh Province‟s endangered Ulu Masen forest by a 85%, thereby bringing about real reductions in greenhouse gas

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Dutch Government Central Kalimantan Peatland Project (CKPP) aligned with AusAID

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INDONESIA: Ulu Masen Ecosystem, Aceh Province

Flora-Fauna International (FFI),

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emissions. The 3.3 million carbon credits predicted to be generated annually will help to finance the conservation of the forest‟s rich biodiversity and development projects for local communities, who are some of Indonesia‟s poorest. The parties are assessing three project areas ranging in size from 300,000 hectares to one million hectares.

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Papua-New Forests Initiatives

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collaboration between the government of the Papua province and New Forests, an Australian based voluntary market company facilitated through a collaboration with Emerald PT Rimba Makmur Utama (RMU). PT Global Eco Rescue (GER);

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Forestry based carbon project at Malinau Regency, East Kalimantan

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Developing a large scale forest carbon program in Berau

The Nature Conservancy (TNC);

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Flora-Fauna International Macquarie Group Carbon Initiative.

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JP Morgan

RMU is working on a concession for which it is proposing an environmental service permit. The area is located in Katingan district. GER is working on a voluntary market initiative in the Malinau district (overlaps with GTZ project area). The CER project consists of 325,000 ha of forest with a possible extension to over 2 million. A MOU has been signed between the district government and GER. GER has submitted a request for a permit to the department of Forestry. TNC is working to establish a district based REDD program in Berau in East Kalimantan. TNC builds on an existing integrated development and conservation program. Indonesia is the major focus for this initiative with three projects („the projects‟) currently in development. These projects aim to achieve local and national support for the preservation and sustainable management of forest landscapes that range from 57,000 hectares to 500,000 hectares JP Morgan is working with CIMTROP on a reduced peat land emission approach which is meant to be proposed for inclusion in CDM (Clean Development Mechanism). WWF-Kampar peninsular (scoping), WWF Sebangua and Leuser Foundation. Both parties agreed to collaborate

December 2008

Initial stage

14 15 Utilization and

WWF A collaboration

Initial stage Dec 2008

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protection of forest for carbon and biodiversity of North Sulawesi and Carbon Storage Global PTE Limited. Wetland International manage approximately 373,506 Ha of forest located at the North Sulawesi Province for Trading of the Carbon Credit and Biodiversity Credits. The project ties in with the Green Policy of the Provincial Government, focusing on filling urgent gaps with respect to REDD implementation in peatswamps, an applies the secured experiences of a range of multi-sectoral projects that the project partners have successfully implemented.

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Central Kalimantan Peatswamp Restoration Project

Issues/Concerns/Barriers - Gaps analysis

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PART II: STRATEGY Project Rationale and Policy Conformity
Where should UN-REDD intervene and support and why?

Alternative Scenario Project Goal, Objective, Outcomes and Outputs/Activities - Project Goal
- Project Objective - Project Outcome, Outputs and Activities


				
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