Implementation mechanisms for REDD

1.     Structural policies in place for reduction of deforestation and valuing of Forest assets

List and characterization of policies that enable deforestation reduction and promote the value of forests, consist of:

1. Working Group on Forest and Climate Change, established through the Minister of Forestry Decree No.13/2009

2. REDD Guidelines:

- Regulation on REDD Demonstration Activity, the Minister of Forestry decree No. 68/2008

- Regulation on REDD Implementation Procedure, the Minister of Forestry Decree No. 30/2009

- Regulation on Permission for the Activity regarding Carbon Sequestration and Carbon Stock in the Forest Product and Protected Forest, the Minister of Forestry Decree No.36/2009.

3. REDD Commission (inter-sectoral), to be established as mandated by the Minister of Forestry decree No. 30/2009

4. Regulation on Institution Establishment of Lalan Mangsang Mendis Forest Management Unit, established through the Bupati Decree No.24/2009

 

2.     Territorial approach for REDD

MRPP / REDD has its focus in the allocated 24000 ha plot which is part of the Lalan FMU. The FMU Lalan again is part of the Merang Peatdome ecosystem with an approximate area of 240.000 ha in total. A project based approach is used.

It is envisaged to analyse and view historical and present land use scenarios, to identify leading drivers of the land use change during a period of between 10 to 30 years at the project site. The analysis results within the context of Lalan FMU area will be used for future projections with regard to the rate and location of future deforestation and forest degradation at project site, the Lalan FMU and could be even used for the region.

The project site presently selected is approximately 24.000 hectare within the Merang peat swamp forest area. This specific and selected area is used for developing and testing a set of methodologies, technologies on forest and carbon monitoring, forest rehabilitation and integrated community development.

The Merang Kepayang Peat Swamp Forest area was selected as it is a promising location for such a pilot project due to the relatively intact forest cover in some parts and the large below ground carbon storage in the peat, as well as the connections to the neighboring protected areas of Sembilang National Park and Berbak National Park.

3.     Payments for environmental services mechanisms

The MRPP’s purpose is to support the protection and rehabilitation of the last natural peat swamp forest in South Sumatra and its biodiversity. A production Forest Management Unit (FMU) management system is selected for the implementation and the preparation for REDD mechanism.

It is planned to receive payments for environmental services like providing carbon peat sequestration, biodiversity protection and for emission reductions . The FMU/MRPP would receive conditional payments for these desired environmental services.

The service users, or those who benefit from the MRPP Pilot Project, would pay for them.

Target users of the environmental services are most likely carbon buyers from both markets, (compliant and voluntary market), and other investors with CSR having the welfare of beneficiaries as an aim.

Under the national mechanism or the voluntary markets, the PES mechanism will be developed to preparee a charging system for users and paying service for providers. Hence, the establishment of an institutional framework is required, in this case the FMU.

In line with the national regulation context, the MRPP will develop a design for a sustainable flow of financing requirements and develop a basis and framework to allow legal transactions between buyers and sellers. The design will includes the opportunity for continuous and open-ended payments. For sure it will avoid any negative incentives.

The establishment of the institutional framework will allow, among others, to manage the preparation for buying services, selling services, promotion of the project, its administration, the supervision of activities, investment allocations , paying participants and communities and frequent monitoring for necessary adjustments.

4.     Institutional framework and arrangement to bear REDD program and capacity to implement  REDD

The scale of this REDD Readiness programme will be implemented at national and sub-national level according to the Minister of Forestry decree No. 68/2008 on REDD demonstration activity and other relevant decrees).

In line with global regulations and guidelines, MRPP is strengthening coordination with major stakeholders to ensure the REDD Readiness program fullfils global requirements. Stakeholder participation from all levels was arranged from the start of MRPP.

At national level, MRPP has not implementation agreement yet. In process, at the national level MRPP would has an implementing protocol with BPK (Directorate General for Forest Production Management / Bina Produksi Kehutanan) and the Directorate General of Forest Planning / Planologi Kehutanan in the Ministry of Forestry.

At provincial level, MRPP has an implementing protocol with the Provincial Forestry Services as an executing agency, as well as with the Provincial Climate Change Taskforce.

At district level, MRPP has a strong partnership with the District Forestry Services as the executing agency, with the District Planning and Investment Agency functioning as the coordination forum, and the KPHP Lalan (Forest Management Unit Lalan) as the legal entity for management and future carbon markets.

All involved organizations from national, provincial and district / sub-national level will implement the REDD Readiness programme in line with Indonesian and global requirements.

MRPP will support the KPHP Lalan to be the legal entity of the REDD mechanism, and support the necessary capacity development. Under the programme a focus is given for developing and testing a set of methodologies and technologies. Institutional aspects for Sustainable Forest Management are covered with the development of the Forest Management Unit.

5.     Role of and relationship with the Central Government policies on deforestation reduction and National Carbon Accounting System

The role of and relationship with the Central Government policies on deforestation reduction and National Carbon Accounting System consist of:

1. Role of the Central Government (National Level) REDD readiness including several activities:

a. Policy interventions to tackle drivers of Deforestation and Forest Degradation

b. REDD regulations (REDD Guidelines and REDD Commission)

c. Methodology (establishment of National REL and MRV system)

d. Institutional (National Registry, distribution of incentives/responsibilities, capacity building, stakeholder communication, coordination among REDD institutions)

e. Analytical tasks (REL, MRV, Co-benefits, risks, etc.)

2. Role of the Provincial level stakeholders REDD readiness including several activities:

a. Methodology (establishment of Provincial REL and MRV system)

b. Institutional (capacity development, stakeholder communication, coordination among REDD institutions)

c. Demonstration activities, voluntary carbon projects.

3. Role of the District level stakeholders REDD readiness including several activities:

a. Methodology (establishment of District REL and MRV system)

b. Institutional (capacity development, stakeholder communication, coordination among REDD institutions)

c. Demonstration activities, voluntary carbon projects.

4. Role of the Project level stakeholders

a. Methodology (establishment of Project REL and MRV system)

b. Institutional (capacity development, stakeholder communication, coordination among REDD institutions)

c. Demonstration activities, voluntary carbon projects.

6.     Validation and Certification protocols for REDD

Referring to the Minister of Forestry decree No. 30/2009 on arrangement of reduction emission from ddeforestation and degradation (REDD), prior to any decision from COP on REDD regulation, MRPP use annex 2 COP 13 decision No. 2/2007.

REDD Financing

1.     Current strategies to finance REDD Readiness

The MRPP at presently is financed by a grant from the German Federal Ministry of Environment, Nature Conservation and Nuclear Safety (BMU) with an amount up to 1,4 million Euro for the period 1.10.2008 until 31.12.2011. A second proposal was forwarded in September 2009 with a budget request for around 700.000 Euro with a focus for networking and knowledge management.

Whenever possible available national and local government funds will be tapped for specific activities e.g. rehabilitation, set up of management unit, etc.

2.     Strategies to finance REDD

To follow recommendations of the Copenhagen Climate Change Conference and the formal set up within the Indonesian Government.

At the same time to keep options open for the voluntary carbon market and to establish contacts with possible investors via their CSR programmes.