GLOBAL ECO RESCUE S PROJECT INFO

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1 Project Title1: Avoided Deforestation and Resource-Based Community Development. Location2: Malinau Regency, East Kalimantan Province Project Developer and Responsible Party3: Government of Malinau Regency, PT. Inhutani II (Persero) and Global Eco Rescue. Responsible Party: Government of Malinau Regency (Kantor Pusat Pemerintahan Kabupaten Malinau Malinau Provinsi Kalimantan Timur) for project in Protection Forest and PT. Inhutani II Persero (Jl. Tebet Timur Raya No. 7 Jakarta) for project in Production Forest Project Duration: 30 years Total Budget and Source of Fund: Global Eco Rescue and partners NO 1 Goal (in general) & specific objectives 2 Total Area and status of the project area 4 PROJECT INFO Goal: Create steady financial flow for conservation and community development activities through creation of carbon credit from avoided deforestation program Specific objectives: o Halt illegal logging in primary forest and secondary forest o Contain forest conversion into unsustainable agricultural activities o Reduce the impact of current logging operation by adopting reduce impact logging and sustainable management practices Total Project Area is: 265,500 ha Status of the project area: The project area consists of one protection forest and production forest that has been allocated for 3 logging concession, as describe in following table Forest Function Name Total Area (ha) o Protection Forest Long Ketrok 47,000 o Production Forest Sub Unit II Malinau 48,300 Unit Tubu 99,100 Unit Semamu 71,100 Total Area 265,500 3 Scope of Activities 1 If any (example in TNMB: Tropical Forest Conservation For Reducing Emissions from Deforestation and Forest Degradation and Enhancing Carbon Stocks in Meru Betiri National Park, Indonesia). 2 Regency and Province 3 Pilot Project in TNMB: Project Proponent: Policy and Climate Change Research and Development Center, TNMB, LATIN; Responsible Party: Policy and Climate Change Research and Development Center (complete address) 4 Status of the project area: e.g. Production Forest, Protection Forest, Other Purpose Area etc 1

2 1. REL/RL GER collaborated extensively with Winrock International for carbon analysis and applied Geomodeling Analysis to compare the predicted rate of deforestation under business as usual scenario with likely deforestation under a with carbon project scenario to calculate the amount of credit generated by the project. Preparation for this analysis involved some in-depth investigation into the GIS data and satellite imagery availability for the region. Some data for East Kalimantan had previously been collected by the Winrock team from the World Resources Institute (WRI) with support from USAID (Petrova et al 2007). Other key datasets were provided by the Tropenbos Foundation and the U.S. National Imagery and Mapping Agency (NIMA). NASA s Shuttle Radar Topography Mission (SRTM) topographic data was used for slope and elevation derivation and satellite imagery from the Global Landcover Facility and the EROS data center were used to classify land-cover in 2007 in the Regency. Deforestation information for the study area was acquired and analyzed from several sources. The final datasets which were selected for GEOMOD analysis were a 2005 land-cover dataset from Topenbos and a 2007 satellite image created by Winrock. The Winrock classification was an independent classification of five Landsat image scenes: 1 from October, 2006 and a July, an August and two October images from The analysis shows that an approximately million tco2e will be mitigated from release into atmosphere. This figure is subject to change and further in-depth research. The figure based on several key assumption including: Deforestation rate is 0.2% Areas to be harvested will conform to Government of Indonesia slope restriction Average plantation growth rate of 15m3 per hectare per year Reforestation only on lands that have been cleared of forest 2. MRV The project has been designed to comply with International Standard namely Voluntary Carbon Standard and Climate, Community and Biodiversity Standard. Therefore the project developer will monitor implementation of the project and report progress of the project in accordance with both standard. Independent organization will verify the project. The project developer will report the project progress to Ministry of Forestry as Indonesia authority on Forestry Sector. 3. Institution The project proponent will establish a Board consists of Malinau Regency, Director of PT. Inhutani II (Persero) and GER representative to oversee the implementation of the project. A forest service team consists of technical staff from each project proponent will be established to implement the project. 4. Distribution of Incentive The financial flows created by carbon credits will be used to fund: Conservation Activities Sustainable community development program And the revenue generated by carbon credit will be distributed into following parties in accordance with Indonesia law and regulation: Government of Malinau Regency Project Developer Community through sustainable community development program Central Government and Provincial Government. 2

3 5. Capacity Building Capacity building program has been designed to enable transfer knowledge and skill between: 1. Project proponent 2. Project proponent and local government staff 3. Project Proponent with local community 6. Involvement of Local Community Involvement local community in the project is one of crucial aspects to ensure the successful of credit generation. The project has been designed to ensure involvement of community from the planning stage, implementation, monitoring and evaluation of the project. The project proponent through a community development program will facilitate community involvement, in accordance with Climate, Community and Biodiversity Standard. 4 Activity in Detail 5 Project Proponent has completed project baseline carbon emission Project Proponent has completed forest management plan and forest law enforcement and protection plan with two main focus: o Forest Protection to avoid deforestation activities o Community development program that will focus on health, education and community economic development. Started development of PDD 5 Project Progress Project Baseline carbon emission scenario has been completed Renew the Pilot Project Agreement with Malinau Regency Renew the Pilot Project Agreement with PT. Inhutani II (Persero) 6 Constraint Lack of clear regulation in particular related to: o Right to sell carbon credit o Structure for approval of market based project o Taxation and revenue sharing Lack of understanding the high risk of forestry carbon evolving market and the high start up cost within several stakeholders. 7 Additional Info 5 Description of each activities in Column 4 (in accordance with REDD+ Architecture on REDD+ Readiness Strategy : (1) Reference Emissions Level or Reference Level (REL /RL) including data and methodology, (2) MRV system including data and methodology using by project, (3) Institution Development (e.g. establishment of REDD+ Working Group), (4) Incentive Distribution (approach/mechanism), (5) and (6) activities and target group/parties who involve in project. 3

4 Project Title: Leuser Ecosystem REDD Project: Avoided Deforestation, Biodiversity Conservation and Development Location: Aceh Province Project Developer and Responsible Party: Aceh Government (cq. Badan Pengelola Kawasan Ekosistem Leuser) and Global Eco Rescue (through its wholly owned subsidiary SFM South East Asia). Responsible Party: Government of Aceh cq. Badan Pengelola Kawasan Ekosistem Leuser. Jl. Sultan Iskandar Muda No. 32 Banda Aceh. Project Duration: 30 years Total Budget and Source of Fund: Global Eco Rescue and partners NO 1 Goal (in general) & specific objectives 2 Total Area and status of the project area 6 PROJECT INFO Goal: Sustainability of Leuser Ecosystem Area through a holistic land management approach that combine forest conservation and appropriate investment in neighboring area Specific objectives: o Zero deforestation within Leuser Ecosystem Area o Generation of credit carbon created financial flow to fund sustainable development and conservation activities o Community living in adjacent area to the Leuser Ecosystem Area have steady source of income from higher value-added and ecologically balanced economic activities Total Project Area is: 2,255,577 ha Status of the project area: Law No.26/2008 has designated Leuser Ecosystem Area as a National Strategic Area. Leuser Ecosystem Area consist of several forest functions namely: o Wildlife Reserve : 102,379 ha o National Park : 602,582 o Game Reserve : 29,090 o Protection Forest : 941,704 o Limited Production Forest : 8,066 o Production Forest : 245,676 o Areal for other purpose : 326,080 3 Scope of Activities 1. REL/RL The Leuser Ecosystem has a total current carbon stock of approximately 1,405 MtCO2e with a weighted average carbon average carbon stock of 763 tco2e/ha. Preliminary assessment have estimated that approximately 30% of the Leuser Ecosystem is under threat from deforestation, with a yearly deforestation rate approximately 2%. Under this scenario the project will deliver approximately million VERs (not include peat swamps). 6 Status of the project area: e.g. Production Forest, Protection Forest, Other Purpose Area etc 4

5 The Leuser Ecosystem contains a total of 178,000 hectares of peat swamp with an estimated carbon stock of 833 MtCO2e. The figures provided are subject to change and further in-depth research. 2. MRV The project has been designed to comply with International Standard namely Voluntary Carbon Standard and Climate, Community and Biodiversity Standard. Therefore the project developer will monitor implementation of the project and report progress of the project in accordance with both standards. Independent organization will verify the project. The project developer will report the project progress to Ministry of Forestry as Indonesia authority on Forestry Sector. 3. Institution Government of Aceh and Global Eco Rescue (through its wholly owned subsidiary SFM South East Asia) created Public Private Partnership. 4. Distribution of Incentive 5. Capacity Building 6. Involvement of Local Community The financial flows created by carbon credits will be used to fund: Conservation Activities Sustainable community development program And the revenue generated by carbon credit will be distributed into: Government of Aceh Project Developer Community through sustainable community development program Central Government and Provincial Government (in accordance with Indonesia law and regulation). Capacity building program has been designed to enable transfer knowledge and skill between: 1. Project proponent 2. Project proponent and local government staff 3. Project Proponent with local community Involvement local community in the project is one of crucial aspects to ensure the successful of credit generation. The project has been designed to ensure involvement of community from the planning stage, implementation, monitoring and evaluation of the project. The project proponent through a community development program will facilitate community involvement, in accordance with Climate, Community and Biodiversity standard. 5

6 4 Activity in Detail 7 The Leuser Public Private REDD Project is in the process of establishing a project level and a sub-national provincial level baseline to quantify the carbon stock that is under threat. Resulting emission offsets will be verified under Voluntary Carbon Standard (VCS) and Climate Community and Biodiversity (CCB) criteria and sold into the appropriate markets. The financial flows created by carbon credits will be used to fund sustainable development and conservation activities. These activities are designed to address the root cause of deforestation: unsustainable approaches to economic development. Sustainable development activities will be employed under a holistic land management strategy in line with the Governor s Aceh Green vision, which calls for hard investments in electrification projects, agro-forestry and timber farms as well as soft investments in education, healthcare and community development. These investments would refocus communities neighboring natural rainforests away from inefficient forest utilization and agricultural practices and employ them in higher value-added and ecologically balanced economic activities. Financing obtained through the Project will also be provided for specific conservation activities needed to actively reduce deforestation pressures in the Leuser Ecosystem. Current funding streams both government and donor are insufficient to address the full range of threats facing the Leuser over the long term. 5 Project Progress Leading service providers have defined the baseline and project scenarios, identified the complexities posed by deforestation pressures; confirmed a compatible methodology that is as close to market ready as possible; selected a business as usual reference approach suitable for addressing the deforestation drivers in Aceh and developed a clear and definitive list of data parameters to complete the Project Design Document (PDD). Intensive baseline community social assessment by Aceh consultants. This critical analysis is creating the context and the core information on communities around the Leuser Ecosystem and their needs, issues and expectations. Once analysed the field data from villages throughout the Leuser Ecosystem and surrounds will identify and clarify the drivers of land use and forest change. These essential elements will be central to formulating the Leuser Public Private REDD Project in line with international requirements, meeting Indonesian government guidance and regulation and partnering with the Government of Aceh and others. Renew the Cooperation Agreement with Government of Aceh 6 Constraint Lack of clear regulation in particular related to: o Right to sell carbon credit o Structure for approval of market based project o Taxation and revenue sharing Lack of understanding the high risk of forestry carbon evolving market and the high start up cost within several stakeholders. 7 Additional Info 7 Description of each activities in Column 4 (in accordance with REDD+ Architecture on REDD+ Readiness Strategy : (1) Reference Emissions Level or Reference Level (REL /RL) including data and methodology, (2) MRV system including data and methodology using by project, (3) Institution Development (e.g. establishment of REDD+ Working Group), (4) Incentive Distribution (approach/mechanism), (5) and (6) activities and target group/parties who involve in project. 6

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