BERAU FOREST CARBON PROGRAM (BFCP)

REDD PROJECTS IN INDONESIA

DEMONSTRATION ACTIVITIES IN INDONESIA

Indonesia– TNC

Indonesia–Germany

Indonesia–Australia

Indonesia– ITTO

GOI – TNC: BFCP

Program phasesProgram will seek funding for a 5-

year demonstration phase. It is expected that during that time, international finance mechanisms will be agreed to by countries enabling strategies to be scaled up and sustainable financing to be achieved.

WHY BERAU?

• High forest cover – 75% district area was covered by forests

• High threat

• Deforestation and degradation was around 39,000 ha per year ~ 20 million tons of CO2 per year

Rate of emissions 1990-2008 (Dewi et al., 2010b)

• Vulnerable ecosystems: forest, karst, mangrove, and marine

• TNC’s past experience in Berau

• Support from the district government and other stakeholders

LAND USE IN BERAU

LAND USE CATEGORY

AREA(ha)

%

FOREST ESTATES:

13 timber concessions

780,000 35

7 protection forests 361,000 17

3 timber plantations

229,000 10

AREAS PLANNED FOR OTHER USES:

32 oil palm concessions

189,000 9

27 mining concessions

185,000 8

Others 456,000 21

TOTAL ~2.2 million 100

COMMUNITIES

Coasts

UPPER KELAY

• Mostly the traditional Punan

• Highly dependent on forests

• 20-30 families per village

• Villages located within timber concession areas

• Logging road facilitated their access to the forests (road construction) and provided fee or compensation.

UPPER SEGAH

• A mixture of Punan and Gaai

• Lower dependency on forests; better transportation

• Primary source of livelihood: cocoa planting, shifting agriculture, and gold mining

• Strong village institution

LOWER KELAY

• High ethnic diversity with some inter-community conflict competition

• Some villages are surrounded by oil palm plantations

• Low dependency on forests

• Diverse livelihood: labourers in palm oil plantations, timber extraction, bird nest collection, and shifting agriculture

• Some families developed small scale (two hectares) oil palm plantations.

LOWER SEGAH

• Heterogenous: various Dayak and transmigrants (from Java and Lombok)

• Important source of livelihood: agriculture

• The expansion of oil palm plantations divided and created conflicts within communities

• Ineffective community development program led by oil palm companies

• Land speculation increased

COASTAL AREA

• Ethnic composition varied: migrants from Sulawesi were quite dominant

• Livelihood: fishing, shrimp farming, or engaged in fishing-related activities

• Some dependency on mangroves.

Production Forests: RIL,

HCVF, certification

Oil Palm Plantations: better siting,

land swap, HCVF, best practices

Protection Forests: better management,

incentives

Cross-Cutting:

Improved spatial planning

Improved governance (capacity building,

policy and legal framework)Community

empowerment and engagement,

improved livelihood

Historic PerformancePeriod 1

Strategy 1

Strategy 3Strategy 2

REL

BFCP STRATEGIES

DISTRICT-WIDE APPROACH

• Providing an integrated model across scales and sectors

• Integration of emission reduction strategies with the district’s planning and development aspirations

• Implementation of multiple strategies to reduce emissions under a unified carbon accounting framework

• Handling leakage more efficiently and reducing transaction costs

• Providing lessons learnt to support provincial and national REDD implementation

Forests

Landmanagers

Otherstake-holders

Finance andtechnicalsupport

Government

LAND MANAGERSCompanies (timber concessions, plantations, mining)

Communities

GOVERNMENTDistrict, Province, National

Various agencies: Forestry, Environment, Agriculture, Mining, Planning, Finance, National Climate Change CouncilOTHER STAKEHOLDERSWider society in BerauNearby districts and communities

FINANCE & SUPPORTDonors: USAID, AusAID, NORAD, TNC, ?

Investors

Technical: TNC, ICRAF, Winrock, Univ. Mulawarman, Sekala, World Education, Univ. Queensland, USFS, Daemeter, WRI, etc.

MULTISTAKEHOLDER INVOLVEMENT

GOALS FOR THE DEMONSTRATION PHASE

• Effective management of land: bringing at least 800,000 hectates of forest in production, protection, and ‘non-forest’ landscapes under LCD;

• Emission reductions: reduce emissions by at least 10 million tons of carbon dioxide over five years;

• Sustainable livelihoods: increase in income and improved livelihood opportunities for at least 5,000 people in targeted forest communities;

• Environmental co-benefits: at least 400,000 hectares of the land under improved management provides substantial co-benefits including habitat for key species and the provision of clean drinking water;

• Sustainable program management: achieve sustainable financing for natural resource management and personnel development which lead to sustainable implementation of LCD strategies;

• Learning: documentation, analysis, and strategic dissemination of BFCP lessons learnt to inform REDD+ implementation at different levels.

FINANCIAL PLAN AND BUDGET

• Total funding required for the 5-year demonstration phase is around US$ 50 million.

• Prior to the emergence of compliance market: fund-based financing from public sources (multiple).

• With the existence of compliance market (2013? - ):– Seek financing from private carbon investors– Receive performance-based payments– Distribute revenues and sustain future low

carbon development activities

• TNC will raise funds to cover its own costs for BFCP supporting activities.

PROGRESS

• Complete in-depth analysis of production forests, profitablity of different land uses, HCVF across disctricts, drivers of DD, laws and regulations across scales, spatial data descrepancies, etc.

• The business plan has been finalised and the different strategies are currently being refined based on inputs from different stakeholders.

• Share information, strategies, and lessons learnt with wider audience at the national level that received positive response.

• Shape provincial-level REDD initiative in East Kalimantan.

• Expand and intensify TNC work with logging concessions and communities in Berau.

• Produce several options for REL in Berau – comparable with IPCC Tier 3.

CHALLENGES

• Funding for BFCP Demonstration Phase has not been secured.

• Complex program over a complex landscape involving multistakeholders.

• REDD policies, institutional arrangements, and carbon accounting framework at the national level are still being developed.

• Knowledge and capacity at the district level has to be enhanced.

THANK YOU