Low Carbon Strategies and Challenges

- Indonesia –
Agus Purnomo
Head of Secretariat, National Council on Climate Change
Indonesia's GHG emissions are growing fast and are driven
by forestry and peat

1
85 percent of Indonesia’s emissions in 2005 stem from land
use related activities
Land use related emissions
Emissions from other sectors

Breakdown of Indonesia’s emissions into major

sources
Million ton CO2e
2,052

313
1,739
129

550

243 246 300 85%

763
of total

Deforest- Degrad- Absorp- Peat Peat Agri- Total Other Total

ation ation tion1 decomp- Fire culture land sectors emissions
osition use
1 Includes absorption of managed forests and timber plantations related
SOURCE: Indonesia GHG abatement cost curve 2
The potential to reduce emissions is representing up to 5 percent of global
abatement needed

Projected abatement potential

Million tons, CO2e Indonesia has a total reduction
3,260 potential of 2,305 MtCO2e, 70% of
its projected business as usual
1,161 emissions of 3,260 MtCO2e in
2030
609
225
106 87 955
61 56

Total LULUCF Peat Power Agriculture Transport Petroleum Other Remaining

abatement 1 2 3 4 5 6 emissions

Percent of
total
50 26 10 5 4 3
reduction
potential

SOURCE: DNPI Indonesia GHG abatement cost curve 3

Indonesia’s Vulnerabilities
Sea level rise & land inundation threatens coastal
zones
North coast Java, south Kalimantan,west Sumatra

Water
 changed water balance leading to droughts and
floods – regionally differentiated

Agriculture
 food security threatened, and declining
productivity in particular rice cultivation

Health
 spread of diseases correlated to effects of climate change
(malaria, dengue, cholera, diarrhea etc)
President Yudhoyono has taken the climate change agenda from obscurity
to national prominence
Events

▪ COP13 (Bali, ▪ NCCC press conference ▪ Indonesia

Indonesia) ▪ G20 summit (Pittsburgh, USA) associates with
▪ COP15 (Copenhagen, Denmark) Copenhagen
accord
2007 2008 2009 2010

Results

▪ Bali Action ▪ NCCC ▪ Indonesia GHG ▪ National

Plan established emission cost curve emission
▪ Forest G11 reduction plan
▪ President Yudhoyono
commited to a 26% ▪ East
emission reduction Kalimantan
▪ Central Kalimantan and low-carbon
Jambi Low Carbon growth plan
Growth Plan
Indonesia is charting a green growth plan which will ensure sustainable
economic growth with a smaller carbon footprint

Three provinces have responded the

President by developing green growth
strategies with DNPI
Low-Carbon Growth Plan

CO2
Mitigation

Insti-
“We are devising an energy mix tutional
policy that will reduce our enablers
Economic
emissions by 26% by 2020. With development Adaptation
international support, we are
confident we can reduce
emissions by as much as 41%”

6
 MAINSTREAMING CLIMATE CHANGE INTO
NATIONAL DEVELOPMENT AGENDA

GoI’s own
budget
BALI ACTION M Mainstream
PLAN ing into
Bi-/Multilateral
ROADMAPS RPJM
cooperation
(ICCSR) 
PRES RAN - GRK
STATEMENT: ICCTF
G20 2009 A

Bridges National ICCTF- International

Action Plan on CC financing mechanism
into 5 yr mid-term Yellow channeling
development plan investment funds into
Book
(RPJM) 2010-2014 & national CC
inputs till 2030. initiatives.

7
NATIONAL PRIORITY & ACTION PLAN 2010-2014

1 Bureaucracy Reform and Good Governance

2 Education

3 Health

4 Poverty Alleviation

5 Food Security
11 National Priorities
- 6 Infrastructure
Indonesian Cabinet
7 Investment Climate
2010-2014
8 Energy
9 Environment and Disaster Management
(incl. Climate Change)
10 Disadvantaged, Borders and Post-Conflict Areas

11 Culture, Creativity and Technology Innovation

8
PRIORITY FOCUS
•Land, Area Development & Agriculture Spatial
Plan
•Infrastructure
FOOD SECURITY •Research and Development
•Investment, Finance and Subsidy
•Food and Nutrition
•Adaptation to Climate Change

•Policy
•Restructuring of State Enterprises
•Energy Capacity
ENERGY •Alternative Energy
•Oil and Gas Derivative Production
•Gas Conversion

•Climate Change
ENVIRONMENTAL •Environmental Degradation Control
AND DISASTER •Early Warning System
MANAGEMENT •Capacity Building on Disaster Mitigation & Forest
Fire

9
 The National CC Roadmap

The Climate Change Sectoral Roadmap will support the

GOI’s development vision related to climate change for the
next 20 years. The implementation of the Roadmap will
be through National Development Plan; the next
Development is for period 2010 – 2014.
There are nine priority sectors:
Mitigation Sectors-: Energy, Forestry, Industry,
Transportation, Waste Management
Adaptation Sectors-: Agriculture, Marine and Fishery,
Water Resources, Health

10
Scenario of 26% GHG Emission Reduction

President SBY commitment at the

G-20 Pittsburgh and COP15
To reduce GHG Emission in 2020

26% 26% Unilateral

and
41% International
Unilateral Support
15%

RAN-GRK
11
Scenario of 26% GHG Emission Reduction

RAN-GRK
Based on proposals of actions from Implementing Agencies
Quick start: existing actions with co-benefits emissions reduction

Criteria:
Potentially measured, reported and verified
(MRV), clear and concise contracts, clear
+15% executing agencies, higher abatement cost ,
not included in CDM project

26%
Criteria:
Potentially measured, reported and verified
(MRV), lower abatement cost, Mid-Term Dev.
Plan, national priorities, economically feasible,
not included in CDM project

12
 Emission Rate (Gt CO2)

1.0
1.5
2.0
2.5
3.0
3.5
2005
2006
2007
2008
2009
BAU

2010
2011
2012
2013
2014
2015
2016
Skenario 26%

2017
2018
2019
2020
Scenario of 26% GHG Emission Reduction

26%

13
 Approach Toward Low Carbon Economy

 Mainstreaming adaptation and mitigation policies to

medium term sustainable development agenda
 Shifting the economy toward low carbon growth path
 Framing the policy within the pro-growth, pro-job, pro-
poor development principles
 Taking advantage of global mitigation efforts and
financial support
 Getting ahead of competition through low carbon
features, policy incentives and delivering our 26%
emission reductions from BAU 2020 commitment

14
A low carbon growth plan is a holistic approach where economic growth,
CO2 mitigation and adaptation go hand in hand
Framework for Low-Carbon Growth Plan Key elements
CO2 Mitigation
▪ Estimate the size of current and future emissions
Low-Carbon Growth Plan ▪ Assess the technical abatement potential and
feasibility, and implementation cost of individual
CO2 mitigation initiatives
Mitigation Economic development
▪ Analyse existing competitive strengths and
weaknesses
▪ Explore potential new sources
Insti- of growth (requiring less carbon emissions)
tutional
enablers Adaptation
Economic
Adaptation ▪ Analyse existing and future climate threats
development
▪ Explore adaptation measures and estimate total
cost of realization
Institutional enablers
▪ Develop strategy for critical enablers (e.g.,
monitoring and evaluation, spatial planning,
community engagement)
▪ Estimate the total costs of realizing these
opportunities

SOURCE: DNPI – Low carbon growth team; team analysis 15

The Council’s work with Central Kalimantan, East Kalimantan and Jambi
has led to other provinces requesting low carbon growth strategies

Aceh Showed interest for lcgp

Sumatra
Existing lcgp
Utara East
Kalimantan Implementing lcgp
Riau West
Kalimantan

Papua

Jambi
Central
Kalimantan
Lampung South
Sulawesi
West Java
Central
Java
Bali

SOURCE: DNPI 16
Detailed low carbon growth strategies have been developed
Low-Carbon Growth Plans Key elements of LCGS
Indonesia Kalteng Sustainable economic development
strategy
▪ Competitive strengths and weaknesses
▪ New sources of growth
Sector strategies
▪ Abatement opportunities, pilot projects,
policies required
▪ Palm oil, forestry, agriculture, coal, oil &
gas
Jambi Kaltim
District strategies
▪ District’s size and land use
▪ Emissions and potential for abatement
▪ GDP and employment
Implementation and enablers
▪ Detailed action plan
▪ Critical enablers required
▪ Estimate of total costs
SOURCE: DNPI; Pemda Kaltim, Pemda Kalteng, Pemda Jambi 17
East Kalimantan’s low carbon
strategy and challenges
Introducing East Kalimantan
Significant remaining natural forest Large share of emissions is generated by the
cover agriculture, palm oil and forestry sectors
100% = 103 255
Trillion Million 1.26 Million
Land area: 19.7 Agriculture IDR Ton CO2e Workers
million ha 4
Palm oil/ 1
Natural Forest: 12.8 Estate crops 5 18
million ha Forestry 34
20
Population: Coal & Mining
12
3,550,586
GDP: IDR 103 trillion 6
3
GDP per capita 2
25 6
ranked 2nd out of 33
provinces1 Oil & Gas 46 7

18
Construction 3 45
Manufacturing 2 9
5
Services/Others 19
8
1 2

GDP CO2emission Employment

2008 2005 2008

1 In year 2007
SOURCE: BPS Kaltim; “East Kalimantan Environmentally Sustainable Development Strategy” by National Council for
Climate Change and Government of East Kalimantan
East Kalimantan’s economy has been driven by the oil and gas sector,
however this is in decline while coal, palm oil, and services are growing fast
Real GDP growth, 1983-2008
IDR Trillion, Constant price 2000

+3% p.a. 103 Agriculture

99
97 Palm oil
94
88 89 91 Forestry
86
82 Coal & Mining
79
76 76
73 Construction
+5% p.a. 67
64 Manufacturing

55 Services/Others
50 49
47
42 43 43 44 43 44
35

Oil & Gas

1983 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 2000 01 02 03 04 05 06 07 2008

SOURCE: BPS 20
In the BAU scenario, CO2e emissions would reach 331 Mt by 2030, however
pursuing a sustainable growth path can reduce this by 60 percent

11
16

184 -60%

13

Agri- Palm oil Forest & Mining PetroleumManu- Services Con- Total Major Minor Emissions
culture Forest and facturing struction initia- initia- after
Industry Refining tives tives abatement
Share of
emissions, 18.5 21.0 22.9 16.8 6.1 4.8 3.2 6.7 100
percent

Gross emissions are excluding absorption from managed forests and oil palm plantation
SOURCE: team analysis 21
Sources of emissions differ between provinces

= 10 Mt CO2 from LULUCF

= 10 Mt CO2 from Fire

= 10 Mt CO2 from Peat

= 1 Mt CO2 from Power

= 0.5 Mt CO2 from Transport

= 2.5 Mt CO2 from Oil/Gas

▪ Emission from power and oil and

gas mainly along the coastline
▪ Emissions from LULUCF
significant in all regencies
▪ Emissions from peat dominate in
Nunukan and Kutai Kartanegara
districts

SOURCE: Kaltim Green, Wetlands International, East Kalimantan Statistics 2009, DNPI – Indonesia GHG Abatement Cost Curve 22
Emissions are not evenly distributed with the three largest
districts contributing more than 50% of all emissions EAST KALIMANTAN EXAMPLE

Gross emissions of East Kalimantan’s districts

Other sectors
in 5 major industrial sectors
Mining
MtCO2e
Oil Gas
52
Forestry
Agriculture
45
40 Palm oil

31

21
18

12
8
7 6 6
3 2
0

Kutai Kutai Nunukan Kutai Berau Bulungan Paser Bontang Malinau Panajam Balik- Sama- Tana Tarakan
Ker- Barat Timur Paser papan rinda Tidung
Share of tanagara Utara
total East
Kalimantan 20.5 18.2 16.4 12.9 8.5 7.3 4.8 3.2 2.8 2.6 1.4 0.8 0.5 0.1
emissions;
Percent

SOURCE: Kaltim Green, Wetlands International, East Kalimantan Statistics 2009 23

Emissions by district, detailed sources 0-1 Mt CO2e 2-5 Mt CO2e
1-2 Mt CO2e 5-10 Mt CO2e
MtCO2e, 2010
10+ Mt CO2e

Palm oil Agriculture Forestry Oil & Gas Coal mining Other Total

Forest
Deforest- Peat Agric Deforest- Peat degra- Deforest Peat Upstream Gas Refining Deforest- Mining Methane
Fires ation decomp POME1 process ation Fires decomp dation -ation decomp Fires process Flaring and LNG ation process release Other Total

Balikpapan 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 - - 3.3 - - - 2.5 5.9

Berau 2.6 1.7 0.7 0.3 0.2 1.5 1.0 0.3 4.7 3.9 0.5 1.3 - - - 1.5 0.8 0.4 0.4 21.8

Bontang 0.0 0.0 0.0 0.0 0.0 0.0 1.5 0.4 0.0 0.0 0.8 0.0 - - 15.1 - - - 0.7 18.5

Bulungan 2.0 1.5 1.5 0.2 0.1 0.9 2.5 0.6 2.5 2.4 1.4 1.0 0.0 0.1 - 0.8 0.1 0.1 0.5 18.2

Kutai Barat 7.8 4.1 1.9 0.4 0.2 1.9 3.1 0.8 8.7 4.0 1.7 3.9 - - - 4.4 0.9 0.5 0.6 44.9

Kutai
5.6 6.0 4.6 0.7 0.8 0.9 7.7 2.0 1.8 2.7 4.2 2.8 5.9 1.4 - 5.4 1.5 0.8 2.8 57.6
Kertanegara

Kutai Timur 4.5 3.9 0.8 0.8 0.7 1.4 1.7 0.5 6.3 3.1 0.8 2.3 0.3 0.2 - 3.7 8.1 4.3 0.2 43.6

Malinau 0.0 0.6 0.0 0.1 0.1 0.5 0.1 0.0 4.7 0.6 0.0 0.0 - - - - 0.0 0.0 0.2 6.9

Nunukan 1.4 0.9 7.1 0.3 0.4 0.9 12.1 3.1 1.5 2.8 6.8 0.7 - - - 1.4 0.3 0.1 0.4 40.2

Panajam
0.4 0.6 0.0 0.1 0.2 0.4 0.0 0.0 2.6 0.8 0.0 0.2 - - - 0.7 1.4 0.8 0.1 8.3
Paser Utara

Pasir 1.6 2.1 0.3 0.3 0.4 0.8 0.7 0.2 1.2 2.4 0.3 0.8 - - - 0.4 0.1 0.1 0.6 12.3

Samarinda 0.0 0.0 0.0 0.0 0.0 0.0 0.6 0.2 0.0 0.0 0.3 0.0 - - - 0.0 0.2 0.1 2.1 3.5

Tana
Tidung 0.0 0.8 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.9 0.0 0.0 - - - 0.0 0.0 0.0 0.5 2.3

0.3
Tarakan 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.0 - - - - 0.2

East
26.0 22.4 16.9 3.2 3.2 9.4 31.0 8.0 33.8 23.9 16.8 13.0 6.2 1.7 18.4 18.4 13.5 7.2 11.8 284.3
Kalimantan

1 Palm oil mill effluent

SOURCE: Team analysis 24
 0-1 2-5
Potential CO2e reductions disaggregated to all districts
1-2 5+
Abatement by source, MtCO2e 2030
Oil &
Palm oil Agriculture Forestry Gas Coal mining Total

De- Yield Con- Zero Avoid Zero Re- Zero Stop Reduce
Zero graded in- cession Water burn Peat de- Peat burn forest- Flaring, illegal Recla- Process methane
burning land crease buyouts mgmt POME policy rehab RIL1 forest2 rehab policy ation Process mining mation efficiency release Total

Balikpapan 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.1 0.3 - - - - 0.5

Berau 1.5 1.0 0.3 0.0 0.3 0.2 0.6 0.2 4.7 3.9 0.3 0.8 0.9 - 0.67
0.9 0.16
0.1 0.05
0.2 0.09
0.3 16.2

Bontang 0.0 0.0 0.0 0.0 0.0 0.0 0.9 0.3 0.0 0.0 0.5 0.1 0.0 0.8 - - - 2.6
-

Bulungan 1.2 0.2 0.2 0.5 0.6 0.2 1.5 0.4 2.5 2.4 0.8 0.4 0.6 0.1 0.34
0.4 0.08
0.1 0.03
0.0 0.05
0.1 12.2

Kutai Barat 4.7 1.2 0.4 1.9 0.7 0.4 1.9 0.5 8.7 4.0 1.0 2.3 2.0 - 1.90
2.4 0.46
0.5 0.14
0.2 0.26
0.4 33.2

Kutai
3.4 1.9 0.8 2.6 1.8 0.7 4.6 1.3 1.8 2.7 2.5 1.7 2.8 1.4 2.41
3.0 0.58
0.6 0.18
0.3 0.33
0.6 34.5
Kertanegara

Kutai Timur 2.7 3.4 0.8 0.0 0.3 0.7 1.0 0.3 6.3 3.1 0.5 1.4 3.2 0.2 1.39
2.9 0.34
0.4 0.10
1.5 0.19
2.8 31.5

Malinau 0.0 0.2 0.1 0.3 0.0 0.2 0.0 0.0 4.7 0.6 0.0 0.0 0.6 - 0.04
0.1 0.01
0.0 0.00
0.0 0.01
0.0 6.8

Nunukan 0.8 1.5 0.2 0.0 2.8 0.2 7.2 2.1 1.5 2.8 4.0 0.4 0.5 - 0.56
0.7 0.13
0.1 0.04
0.1 0.08
0.1 25.0

Panajam
0.2 0.1 0.1 0.4 0.0 0.1 0.0 0.0 2.6 0.8 0.0 0.1 0.4 - 0.30
0.6 0.07
0.1 0.02
0.3 0.04
0.5 6.3
Paser Utara

Pasir 1.0 1.8 0.3 0.0 0.1 0.3 0.4 0.1 1.2 2.4 0.2 0.5 1.1 - 0.21
0.3 0.05
0.1 0.02
0.0 0.03
0.0 9.8

Samarinda 0.0 0.0 0.0 0.0 0.0 0.0 0.4 0.1 0.0 0.0 0.2 0.0 0.1 - 0.06
0.1 0.01
0.0 0.00
0.0 0.01
0.1 1.0

Tana Tidung 0.0 0.0 0.1 0.2 0.0 0.1 0.0 0.0 0.0 0.9 0.0 0.0 0.2 - 0.02
0.0 0.00
0.0 0.00
0.0 0.00
0.0 1.5

Tarakan 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.0 - -- -- - 0.1
-
East
15.6 11.4 3.3 6.0 6.8 3.1 18.5 5.4 34.0 23.8 10.0 7.7 12.5 2.7 8.11
11.3 2.01
2.0 1.56
2.6 2.90
4.8 184
Kalimantan

1 Reduced impact logging

2 Includes the use of degraded land (13.9 MtCO2e) and REDD (9.8 MtCO2e) payment schemes
SOURCE: Team analysis 25
The 5 biggest initiatives to reduce CO2 emissions
Abatement,
Description 2030

▪ Although East Kalimantan has fewer fires than its neighbours, fires from 47 MtCO2e
Zero smallholders, particularly in peat areas, cause significant emissions
1 Burning ▪ Prohibiting fire as a tool for land preparation, establishing fire brigades and
Policy ensuring strong enforcement and large penalties for rule violations

▪ Most of the emissions from legal logging are due to destruction of biomass
Reduced 34 MtCO2e
that is not the commercial timber removed and sold.
2 Impact ▪ Reduced impact logging, e.g. skidding tracks, winches, harvest planning
Logging can remove the same about of commercial timber but at lower emissions
▪ KPH forest management units are required, with about 1 forest employee
overseeing 10,000 ha of HPH
▪ Significant emissions from palm oil and agriculture are due to the clearing of 25.3 MtCO2e
Use of
forests for land for the crops/plantations
3 degraded
▪ Use of degraded land (lahan critis) for future expansion oil palm, HTI, and
land
agriculture will allow expansion with lower emissions
▪ Initiate land swaps of already granted concessions on forested land with
equal sized plots of degraded land
▪ Reducing emissions from peat decomposition of agricultural areas can be 18 MtCO2e
Reduce peat achieved by adjusting and maintaining the water table at a sustainable
4
decomposition level via dam systems and applying best practices in rice cultivation

▪ Rehabilitate “slightly critical land” that has been partially degraded. The 12 MtCO2e
reforestation will restore ecosystem services and also sequester carbon
5 Re-
forestation

SOURCE: team analysis 26

Palm oil can reduce emissions by over half from better land management
while increasing growth from productivity improvements

Emissions from the palm oil sector could be reduced by … and would 25% higher economic development than in
60% against business as usual a business-as-usual scenario

MtCO2e Emissions IDR Trillions Pembanguan

Ramah Lingkuan
Abatement
Business
3 as usual
11
3
3
7 -63%

16
3

2005 10 15 20 25 2030

CO2 reduction initiatives Abatement GDP initiatives IDR Trillions

1) Expand on degraded land 11 MtCO2e 1) Expand on degraded lands 1.44

2) Yield improvement 3.3 MtCO2e 2) Yield improvements 0.14
3) Oil palm buyout 3.2 MtCO2e 3) Palm oil concession buyouts 1.3
4) Water management and peatland 6.8 MtCO2e
rehabilitation
5) Fire prevention and management 15.6 MtCO2e
6) Reduced process emissions 3.0 MtCO2e

SOURCE: Team analysis 27

20 priority initiatives have been identified to reduce the carbon intensity of
current activities and to grow downstream and low carbon sectors
Oil & Gas Coal Palm oil Forestry Agriculture

Reduce Reduce venting Revoke Concessions to Implement Zero Burning

carbon and flaring concessions in degraded lands reduced impact Policy
emissions emissions protected areas logging

Enforce good Zero burning land Use degraded Rehabilitate

mining practices clearance land for Opened Peat
e.g. rehabilitation plantations land

Flare/use
methane leakage

Grow low Accelerate Use methane Raise land REDD readiness Raising Yields
carbon and exploration leakage productivity
high value
add sectors Develop CBM Build crude palm Develop 2.6m ton New crops and
potential oil refinery in East capacity pulp & aquaculture
Kalimantan paper and forest
products
mills/plant

Develop new
LNG/petro-
chemical complex

SOURCE: Diagnostic Workshop; Interviews; Discussions; Working Sessions; Team analysis 28

East Kalimantan is at a transition from strategy to implementation for its
low carbon growth plan
Low carbon
growth strategy
▪ Develop a low carbon growth
strategy that identifies:
– Identifies major sources of
emissions across the
province and across
different industry sectors
– Identifies major abatement
opportunities and actions
for promoting sustainable
livelihoods
– Identifies critical enablers
– Analyzes costs for carbon
abatement and sustainable
alternative livelihoods
SOURCE: Team analysis
Basic readiness Low carbon
implementation growth pilots
▪ Design organizational set up ▪ Roll out pilot program across
of Governor green delivery the whole province once
unit readiness program has been
▪ Identify KPIs and reporting completed and funding for
mechanisms of delivery unit continuation has been secured
▪ Develop detailed ▪ Continue to develop key
implementation plan and KPIs enablers (e.g. spatial planning,
for each district MRV, etc)
▪ Identify funding sources and
proposals
▪ Build key enablers:
– Basic MRV systems,
including province
baseline
– Integrated spatial planning
– Financial distribution
mechanisms
– Community engagement
mechanism
29
Priority areas of support to East Kalimantan implementation phase

Description

1
• Define organizational structure, key processes, deliverables, KPIs and reporting
Setting up the relationships
Governor’s Green • Establish regular operations and meetings with clear leadership of the Governor
Delivery Unit • Define responsibilities vis-à-vis existing government departments, connection to
DNPI and national institutions, and counterparts in the districts
• Support hiring of new positions and building day-to-day capabilities to implement
the strategy
2
District • Support districts to develop a pipeline of projects based on identified priorities
incubators: pilots and targets
projects and • Develop implementation plans to support launch of low carbon growth plan
programs • Identify potential sources of readiness funds and understand requirements for
accessing funds
• Develop required materials to access funds, e.g. donor-ready proposals

3
• Build critical enablers such as a basic MRV system, integrated spatial planning,
Rapid capacity community engagement/public awareness
building for • Develop regulatory responses (e.g. optimizing land allocation through spatial
critical enablers planning, land titling, environmental impact assessments, permitting, etc)

SOURCE: Team analysis 30

East Kalimantan framework for REDD Readiness Implementation
REDD
Readiness
Implementation

Reduced Impact Peat rehabilitation Use of degraded

Supporting enablers Logging and conservation land for palm oil

▪ Improved institutional capabilities

Land tenure
resolution
– Local land registry office
– Conflict resolution mechanism for land tenure
▪ Revise spatial planning to reflect objective to preserve carbon
Spatial planning ▪ Application of state of the art technology
▪ Degraded land database

Capability ▪ Create Provincial Council on Climate Change

building ▪ Involve local government departments in pilot initiatives

Communication ▪ Multi-stakeholder approach involving private sector, donors and NGOs

and stakeholder
management ▪ Broad government alignment

▪ Pilot program design

▪ Provincial investment memorandum (beyond pilot province application)
SOURCE: Kaltim Green 31
Snapshot of priority pilots in East Kalimantan
Using degraded land (for oil palm) Implement Reduced Impact Logging (RIL)
Avoiding deforestation Reduce forest
by shifting new, large- degradation through
scale agriculture more sustainable
cultivation to already harvesting practices
▪ degraded
Access to degraded land
land: establishment of ▪ Create business case for RIL
land bank of degraded land implementation
▪ Reliable land registry office as land ▪ Explore possibility for REDD credit
acquisition and conflict resolution compensation
▪ Funding and compensation mechanisms

Peatland rehabilitation and conservation Revise East Kalimantan spatial plan

Rewetting and Revise land use plan to
restoration of peatlands minimize forest
to reduce emission from clearance while meeting
peat decomposition development goals
▪ Establish common framework for peat ▪ CO2e reference scenario from current plan
rehab/ conservation ▪ Technical optimization of spatial plan on
▪ Build business case for peat-based pilot optimal low emission land conversion
projects to enable access to carbon ▪ Stakeholder engagement to embed revised
funding process into BAU going forward

SOURCE: Kaltim Green 32

Delivering impact relies on multiple partners, both Indonesian and
international
Private sector
Commitment to change critical enablers
e.g. regulatory requirements as
well as clear investment
commitment

Donors Government Agencies

Set high aspiration and Implementation of required
ensure safeguards for East Kalimantan policy changes identified
critical issues such as ▪ Proof of profitable low carbon during the pilots to
spatial planning, forest development programs, replicable enable roll out across the
moratorium and land nationwide province or even
titling as well as clear
▪ Informs & triggers policy changes nationwide
at provincial and national level
funding commitment

Civil society / NGOs

Implementation support for pilot
provinces

SOURCE: Kaltim Green 33

 Available Plans and Planning Tools
1. Long-Term and Mid-term National Development Plan, Climate
Change Sector Road Maps
2. National Action Plan to Reduce Carbon Emissions (RAN-GRK)
3. Industry (Sub-Sector) Plans, National REDD+ Strategy
4. Provincial (and Districts) Low Carbon Growth Plans
5. OSIRIS, Satellite Based Land-Use Change Map (2000-2010), etc

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 Making progress from plans to actions
1. Mobilize public and market resources for green investments
(beyond CDM), not only in Europe or US, but also in China,
Japan, Korea, Australia and NZ
2. Innovative policy incentives
3. Change the way ODA and MDB operates
4. Start now with selected green investments in the region
5. MRV Financial Assistance and its Emission Reduction Results

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 Implementing REDD+ and Low Carbon Growth
requires a different financing mechanism
Phase 1:
Preparation
Need for ▪ Formation of task force
funding ▪ Outside technical resources
▪ Task Force/Agency infrastructure
▪ Operations of task force
▪ Pilot province assessment
▪ Development of functional bodies
(MRV, Financing, Agency)
▪ Stakeholder management
Key ▪ Transparency, accountability, and
mechanism appropriate safeguards
requirements ▪ Established trustee with immediate
credibility
▪ Speed of implementation
▪ Quick approval and disbursement
processes
▪ Short term involvement
Potential ▪ UN-REDD ▪ World Bank
mechanism ▪ UNDP ▪ ADB
Phase 2:
Transformation
▪ Carbon neutral economic
development
▪ Implementation of strategy in pilot
province
▪ Implementation and enforcement
of moratorium, including MRV
▪ Policy development
▪ Stakeholder management
▪ National capability building
▪ Transparency, accountability, and
appropriate safeguards
▪ Established trustee
▪ Flexibility to accommodate
evolution of REDD+ Agency
▪ Administrative capability
▪ Capability to disburse
▪ ADB ▪ Private Int’l banks
▪ UNDP ▪ Private domestic
▪ World Bank banks
Phase 3:
Contributions for verified
reductions
▪ Carbon neutral economic
development
▪ MRV operation
▪ Policy and legal enforcement
▪ Stakeholder management
▪ Transparency, accountability, and
appropriate safeguards
▪ Established trustee
▪ Scale to manage large program
▪ Multilateral capability
▪ ADB ▪ Private Int’l banks
▪ UNDP ▪ Private domestic
▪ World Bank banks
Thanks a bunch.