REDD+ Strategy

Although the design of frameworks, mechanisms, and arrangements to implement REDD programs have received significant attention, it is not yet clear how REDD+ will function on the ground or how the participation of local populations will be assured (Cronkleton et al. 2011). Indonesia’s REDD+ strategy consists of five elements, being the following:

a. Reference emission level (REL) or reference level (RL)

The international perspective of REL/RL is the amount of gross emissions from a geographic area estimated within a reference time period: reducing emission from deforestation and forest degradation (REL) and conservation, sustainable forest management, and enhancing forest carbon stock (RL). REL/RL should be based on historical data of land uses, GHGs emission/removals, and socioeco­nomic variables, and once set, it cannot be changed during the implementation period (UNFCCC 2009).

Referring to the Ministry of Forestry (2009a), REDD+ in Indonesia is being implemented through a national approach that is carried out at the subnational level (provincial, district, or management unit). Thus, REL is set at the national, subnational, and project site levels. REL at the national level will be established by the Ministry of Forestry and at the subnational level will first be settled by local governments (provincial or district) before finally being confirmed with national REL. REL at the project site location will be determined and then confirmed with the national and subnational REL.

b. Policy intervention

From the time REDD mechanisms were introduced, the government of Indone­sia has been actively involved in international discussions and negotiations. To support REDD+ implementation, the government has formulated some regula­tions, such as The Minister of Forestry Regulation No. P.68/Menhut-II/2008 on the implementation of REDD demonstration activities; Ministry of Forestry (2009a); Ministry of Forestry (2009b); The Minister of Forestry Regulation No.13/Menhut-II/2009 on the Establishment of the Ministry of Forestry Work­ing Group on Climate Change; The Presidential Instruction No. 10/2011 on Moratorium of granting new license and improving natural primary forest and peat land governance; The Presidential Regulation No. 61/2011 on National Action Plan to Reduce Greenhouse Gas Emissions; The Presidential Regulation No. 71/2011 on Greenhouse Gas Inventory and MRV; The Presidential Decree No. 25/2011 on REDD+ Institutional Preparation Task Force; The Minister of Forestry Regulation No.25/Menhut-II/2012 on Technical Guidelines of REDD+ Demonstration Activities for Berau Regency, Kapuas Malinau Regency and Kapuas Hulu Regency.

Nonetheless, those regulations are still in general and are not comparable with the rapidly evolving REDD+ issues. Hence, those regulations are insufficient in answering the REDD+ challenge.

c. Measurable, reportable, verifiable (MRV)

MRV was introduced during COP 13 UNFCCC in Bali, 2007 and outlined in the UNFCCC (2007) paragraph 1b (i) and (ii) as follows:

(i) is measurable, reportable and verifiable nationally appropriate mitigation commitments or action, including quantified emission limitation and reduc­tion objectives by all developed country parties, while ensuring the compa­rability of efforts among them, taking into account differences in their national circumstances;

(ii) is nationally appropriate mitigation actions by developing country parties in the context of sustainable development, supported and enabled by technol­ogy, financing and capacity-building in a measurable, reportable and veri­fiable manner.

Since 2007, MRV discussions have been held on what is MRV, who should conduct it, and how it will be applied in both developed and developing countries. For Indonesia, MRV will be carried out by the National GHG Inven­tory System Center (NGISC) under the supervision of the Ministry of Environ­ment. The NGISC will coordinate with all stakeholders to formulate a document on GHG emissions. The stakeholders will be supported at both the provincial and district level, as coordinated by the Governor of each province. Meanwhile, all stakeholders will submit a climate change mitigation plan to the National Planning Agency, which will then be validated by an expert panel under the coordination of the Ministry of Environment. Each plan will then be

Table 19.6 Benefit distribution of carbon credit based on forest type

Permit holder/developer

Distribution (%) Government Community

Developer

IUPHHK-HA (Timber Forest Product for Natural Forest)

20

20

60

IUPHHK-HT (Timber Forest Product for Plantation

20

20

60

Forest)

IUPHHK-RE (Timber Forest Product for Ecosystem

20

20

60

Restoration)

IUPHHK-HTR (Timber Forest Product for People

20

50

30

Plantation Forest)

Hutan Rakyat (People Forest)

10

70

20

Hutan Kemasyarakatan (Community Forest)

20

50

30

Hutan Adat (Customary Forest)

10

70

20

Hutan Desa (Village Forest)

20

50

30

KPH (Forest Management Unit)

30

20

50

KHDTK (Special Purpose Forest Area)

50

20

30

Hutan Lindung (Protection Forest)

50

20

30

Note: The government shares will be divided proportionally between central, provincial and district level about 40 %, 20 % and 40 % respectively Source: Ministry of Forestry (2009b)

incorporated into the National Medium-term Development Plan, the National Long-term Development Plan, and the National Report on the Implementation of Mitigation Actions and Reduction Targets as part of national communication on climate change (Ministry of Environment 2009). In addition, greenhouse gas inventory and MRV were outlined in Presidential Regulation No. 71/2011.

d. Financing

The proposed financial scheme and REDD+ payment scheme reflect the multi­source fund management system (with multiple outlets/windows), multi­recipients (private, community, local government), and multiple purposes (input, output/investment, and to the success of policy or strategic initiatives), to achieve REDD+ objectives. This fund will be used to reduce emissions from deforestation and forest degradation, in addition to the generation of additional benefits (co-benefits) such as conservation of biodiversity (UNREDD Programme Indonesia 2011).

The categories of financing comprise national REDD+ strategies, REDD+ action plans and capacity building, development of MRV systems and regulatory reforms, demonstration activities, and performance-based payments for emis­sions reductions. A REDD+ financial mechanism is offered through carbon market and financial incentives.

e. Benefit distribution

Related to Annex III of the Ministry of Forestry (2009b), the benefit distribution of carbon credit based on forest type is shown in Table 19.6.