Sabtu, 11 Februari 2012

Environment-Friendly Development Programmes - Experiences

Moderator’s Note: Dear members, we are happy to post the Consolidated Reply (CR) of the Query on Environment-Friendly Development Programmes. We thank members for sharing their valuable knowledge and experiences. Your active participation, queries, responses, critiques and suggestions are welcome for the progress of our Community. We hope this forum significantly impacts development scenario in Indonesia particularly in providing useful solutions for difficult issues in the Economic Development sector. Best regards, Thamrin Simanjuntak

Solution Exchange for the Economic Development Community

Consolidated Reply

Query: Environment-Friendly Development Programmes, from Bener Meriah District - Experiences

Compiled by Thamrin Simanjuntak, Moderator and Dewi Gayatri, Research Assistant

Issue Date: 14 May 2009

From Ishak Tayeb, Environment Office in Bener Meriah District, Aceh

Posted 20 February 2009

Dear Solution Exchange Members,

My name is Ishak Tayeb and I am a government officer working with the Nature Board at Bener Meriah District, Aceh. Bener Meriah, Gayo Lues and Aceh Tengah are districts well known for their vast conservation areas - forests, lakes and rivers. In the central highlands, 70% of Gayo Lues area is a conservation area (forest and national park), 50% of Aceh Tengah, and 12% of Bener Meriah.

I think we all know that we have to maintain the condition of these conservation areas and at the same time proceed with development initiatives for the local communities. Ideally, government programmes should cover both environmental considerations as well as economic development considerations; but a lot of funding and other resources are needed to address both.

Our discussions with the KRF (District Recovery Forum) and government offices came up with a suggestion for a KRS (District Recovery Strategy) that included a new alternative solution for mobilizing financial resources through conservation, “carbon trading”. Moreover, at the handover ceremony of BRR (Rehabilitation and Reconstruction Agency for Aceh and Nias) assets in Aceh Tengah (November 28, 2008), Kuntoro Mangkusubroto (BRR Chairperson) said that carbon trading could be one solution for forest protection and to provide economic development for the host community in the Central Highlands .

Based on our observations and from the published reports of development agencies that have been working in Aceh for the post-tsunami reconstruction and rehabilitation projects, we realize that they have always made special considerations to address the related environmental impacts. For example, environmentally sound practices were applied in utilizing imported woods, for relocation arrangements, in introducing organic agriculture practices, biogas, etc.

If there was a way to use carbon trading to finance an environment-friendly development programme it could be an ideal solution for an our districts. Following from this, below are two questions to submit to Solution Exchange members:

· Where can we find out more on the details of carbon trading and the mechanisms for compensation? Has there been any experience with carbon trading in Indonesia that we can tap?

· What strategies and schemes are members aware of that we could examine to help us formulate environmentally friendly development programmes for the Central Highland Districts?

I am very enthusiastic to hear responses from any members and hopefully it could help us to proceed with further real actions.

Thank you to Solution Exchange for providing the opportunity to share experiences and to discuss this issue.

Responses were received, with thanks, from

1. Teguh Karyanto Prasetyo, The Jakarta Globe News, Jakarta , Indonesia

2. Sulaeman Harefa, Canadian Red Cross, Lahewa, Nias, North Sumatera , Indonesia

3. Indra Exploitasia Semiawan, Gunung Gede Pangrango National Park , West Java , Indonesia

4. Johanes Yonerson , Haskoning Nederland BV, Jawa Tengah , Indonesia

5. Basyuni, International Development Law Organization (IDLO), Banda Aceh, Aceh , Indonesia

6. Rina Dj. Surgandi, Department of Forestry Republic of Indonesia , Jakarta , Indonesia

7. Djamester A. Simarmata, Economics Department, University of Indonesia , Depok, West Java , Indonesia

8. Arturo Pasa, College of Forestry and Natural Resources, University Leyte, Visayas State , Philippines

9. Frans Oematan, CARE International Indonesia , Soe, Timor, East Nusa Tenggara , Indonesia

10. Thamrin Simanjuntak, Solution Exchange Indonesia , Banda Aceh

11. Anugerah F Zendrato, Puspenas Foundation, Nias, North Sumatera , Indonesia

Summary of Responses

Comparative Experiences

Related Resources

Responses in Full

Summary of Responses

Responding to a query from Ishak Tayeb which sought experiences on environment-friendly development programmes and carbon trading practices, members submitted information and knowledge on related concepts, experiences and relevant information about the current situation.

Explaining the background of carbon trading, members gave a brief picture about green house gases (GHGs) emissions (carbon dioxide being the dominant green house gas) that create a boundary in the atmosphere thereby keeping the heat trapped close to the earth which is a cause of global warming. They noted that the developed countries as major GHGs emitters have agreed to reduce their emissions in accordance with the Kyoto Protocol, which was based on the UNFCCC (United Nations Framework Convention on Climate Change). Highlighting that carbon trading operated to identify value of anything that facilitates carbon storage or carbon emission reduction, members noted that trading or exchange could then be organized based on those measured values. In this process, members said the carbon emitters compensated the parties that stored carbon or reduced carbon emissions. A developing country such as Indonesia , they opined, was not required to reduce their carbon emissions but could participate and trade its carbon credits in a voluntary market as Indonesia had ratified the Kyoto Protocol in June 2008. Thus, in conjunction with developed countries, Indonesia was allowed to implement projects that could earn saleable certified emission reduction (CER) credits.

Providing information about the carbon trading procedures under the scheme of Clean Development Mechanism (CDM) or Reducing Emissions from Deforestation and Forest Degradation (REDD). The members explained that the latter scheme was developed at the Bali UNFCCC conference in 2007. Under the CDM scheme, they wrote, there were eight forest related projects in Indonesia, such as the Project in Berau, West Kalimantan . Members also submitted the guidelines, government policies (e.g. Ministry of Forestry Regulation no: 68 on REDD), sample of project proposals and contacts for further information.

Respondents shared carbon trading experiences in Phillippines and noted some problems which need to be resolved for giving more benefits to small farmers who participate in small-scale tree farming and agroforestry systems. Members also cited about the forest conservation alternative funding besides the carbon trading mechanism which would treat the tropical forest as a global public good.

Considering the high-land and forest conservation environment of Bener Meriah District, members underscored the importance of environmental friendly plans in development programmes, both locally and globally. For example a construction and infrastructure project in Nias that was attached to trees cultivation programmes in Thailand and Germany using timber from pine plantations which are specifically grown for timber usage and to substitute the natural forest logging activities in producing timber materials. Members also noted that the Forestry Department had been promoting the Community-Based Forestry program which encouraged people to plant forest-type trees and fruit bearing trees which rehabilitate the land and also give economic benefits to communities through production of commercial timbers and fruits.

Members also explained about the environment-friendly agricultural programme that utilized the Low External Input for Sustainable Agriculture (LEISA) approach. The LEISA approach, they said, was about utilizing the local ways and resources that were currently available at the sites and that many of these practices had proved to be environmentally friendly and effective for years. However, they mentioned, there were some practices (nomadic farming, cut and burn preparation and traditional livestock production) that were no longer suitable because of the changing of natural conditions. Members also emphasized about the need to control the construction material production and the construction process that might destruct the environmental condition, through careless mining and the over-exploitation of non-renewable resources, such as plastics and chemicals.

Other environment-friendly development programmes mentioned by responding members related to Land Use, Land Used Change and Forestry which considered at the increase of green house gases emissions as a significant factor. Through the REDD scheme, it was possible to design development programmes which focused on preventive actions against deforestation and forest degradation, they underlined, and noted that this programme would give another benefit as it will be compensated with Certified Emission Reduction (CER) or “carbon credit” which is tradeable.

In short, the responses gave sufficient inputs on the query. Utilizing the information received the Environment Office of Bener Meriah District could proceed forward in their development programmes which would consider the environmental factors and take advantage of the carbon trading schemes.

Comparative Experiences

North Sumatera

Houses Using Imported Timber from Plantations Grown for Timber Usage, Lahewa, Nias (From Sulaeman Harefa, Canadian Red Cross, Lahewa, Nias, North Sumatera, Indonesia)

CRC utilized an environmentally friendly to reduce deforestation in Indonesia . The program constructed more than 2000 houses for earthquake victims in Nias using imported timber from pine plantations specifically grown for timber usage in Thailand and Germany . Each house used about three cubic meters of timber thus totaling to approximately 6000 cubic meters of timber used for the project. This helped save about 1200 trees to be cut down in Indonesia . Read more

East Nusa Tenggara

Utilizing Low External Input for Sustainable Agriculture (LEISA), Oebelo village (from Frans Oematan, CARE International Indonesia , Soe, Timor, East Nusa Tenggara, Indonesia )

CARE conducted environment-friendly agriculture development programs, which usually adopt LEISA. The approach utilizes local ways and resources currently available in the sites. Most of these practices have been proven to be environmentally friendly and effective for years. However findings also show that some traditional practices such as nomadic farming, cut and burn preparation, traditional livestock production are no longer suitable given changing of natural conditions. Read more

International

Philippines

Limited Participation of Smallholders in Carbon Trading, Leyte (from Arturo Pasa, College of Forestry and Natural Resources, University Leyte, Visayas State, Philippines)

In 2007 the government implemented a program of “Rewarding the Upland Poor for their Environmental Services” wherein smallholders enhanced their revenue from small-scale tree farming and agroforestry systems. However, it was found that farmers didn’t participate actively because of some reasons such as challenges relating to price stability, profitability, transactions, land ownerships, stakeholder roles and participation which failed to attract more smallholders’ participation. Read more

Related Resources

Recommended Documentation

From Indra Exploitasia Semiawan, Gunung Gede Pangrango National Park , West Java , Indonesia

Reducing Emissions from Deforestation and Forest Degradation (REDD)

Discussion paper; by David Turnbull, Climate Action Network; 2007; English and Bahasa Indonesia version available at http://www.climatenetwork.org/climate-change-basics/by-meeting/cop-13-bali-december-2007/English%2C%20laid-out%20version%20-%20CAN_REDD_Discussion_Paper.pdf (PDF, Size: 404KB)

Brief on tropical forests, measuring deforestation, degradation, forests carbon, policies, baseline data, preserving biodiversity for industrial products as well as indigenous livelihoods

Ministry of Forestry Regulation No. P. 68/Menhut-II/2008

Regulation; Government of Indonesia; 11 December 2008; Bahasa Indonesia version available at http://www.solex-un.net/repository/id/ecdv/CR5-RR1-ind.pdf (PDF, Size: 31 KB)

Government regulations regarding activities of reducing emissions from deforestation and degradation covers concepts, purposes, locations, project holders and procedure of approval

From Teguh Karyanto Prasetyo, The Jakarta Globe News, Jakarta , Indonesia

Kyoto Protocol

Official information; United Nations Framework Convention on Climate Change (UNFCCC); English version available at http://unfccc.int/kyoto_protocol/items/2830.php

Guides the mechanism of emissions trading, clean development mechanism and joint implementation to stimulate green investment and assists stakeholders meet emission targets

Greenhouse Gases and Society

On-line information; by Nick Hopwood and Jordan Cohen; University of Michigan ; USA ; English version available at http://www.umich.edu/~gs265/society/greenhouse.htm

Describes the green house gases, covers scientific and chemical processes, effects of global worming to the atmosphere, environment and society and solution to produce clear energy

From Rina Dj. Surgandi, Department of Forestry of the Republic of Indonesia

Clean Development Mechanism (CDM) Development in Indonesia , Enabling Policies, Institutions and Programmes, Issues and Challenges 2006

Manual; by Masanori Kobayashi, Moekti H. Soejachmoen et al; New Energy and Industrial Technology Development Organization (NEDO); CDM in Indonesia and Yayasan Pelangi; Permission required: Yes for reproduction or citation; English version available at

http://www.tech.nedo.go.jp/PDF/100004855.pdf (PDF, Size: 1088KB)

Describes legal framework, institutional structure, ratification of Kyoto protocol, procedure of CDM projects approval, environmental assessment and stakeholders in all sectors and levels

Medium Team National Development Plan – RPJMN

Official Information; National Planning and Development Agency (Bappenas); Bahasa Indonesia version available at http://rpjmn.bappenas.go.id/

Prepares national program for five years, including sector of economic, environment and natural resources, covers policies, regulatory activities regarding REDD and carbon trading

From Frans Oematan, CARE International Indonesia , Soe, East Nusa Tenggara , Indonesia

Low External Input for Sustainable Agriculture (LEISA)

Project narrative; by Tonny Bengu and Wiwik Widyastuti; Care International Indonesia; 2008; English and Bahasa Indonesia version available at

http://www.careindonesia.or.id/index.asp?lg=en&sb=3&dt=11&id=48

Describes benefits of LEISA method where farmers got better crops suitable for the climate, less dependent on non-organic fertilizers, pesticides and which were able to generate income

Ministry of Forestry Regulation No. P. 03/Menhut-V/2004

Regulation; Government of Indonesia; 22 July 2004; Bahasa Indonesia version available at http://www.dephut.go.id/files/l1_5_p03_04.pdf (PDF, Size: 53 KB)

Government regulations regarding land and forest rehabilitation covers purposes, technical planning, institutional structure, procedures, implementation, monitoring and evaluation

From Arturo Pasa, College of Forestry and Natural Resources, University Leyte, Visayas State , Philippines

Carbon Trading in the Philippines , Challenges to Overcome for Smallholders to Benefit

Report; by Arturo Pasa, International Tropical Timber Organization; Yokohama ; Japan ; 2007; English version available at

http.www.itto.int/direct/topics/topics_pdf_download/topics_id=1880&no=0 (PDF, Size: 207 KB)

Explains the role of stakeholders in enabling a better carbon trading practices for smallholders of tree farming and agro-forestry towards price stability, carbon profitability and transaction

Smallholders’ Contribution to Climate Change Mitigation and Water Quality

Report; by Arturo Pasa, Brisbane , Australia ; 1995; English version available at http://riversymposium.com/index.php?element=PASAppt (PDF, Size: 3,405 KB)

Explains calculation of carbon stocks, prediction of climate, chemicals and heavy metals in the river and project site and environmental quality that involves participation of smallholders

Land Use, Land Use Change and Forestry (LULUCF) (from Basyuni, International Development Law Organization, Banda Aceh , Indonesia )

On-line guideline; by Robert T. Watson, Ian R. Noble, Bert Bolin, N. H. Ravindranath, David J. Verardo, David J. Dokken; InterGovernmental Panel on Climate Change; English Version available at http://www.grida.no/publications/other/ipcc_sr/?src=/Climate/ipcc/land_use/index.htm

Assists stakeholders of the Kyoto Protocol by providing scientific and technical information in the implementation toward sustainable development in short term and long term up to 2040

Global Public Good (from Djamester A. Simarmata, Economics Department, University of Indonesia, Depok, West Java, Indonesia)

On-line Guideline; UNDP, Office of Development Studies; English version available at

http://www.undp.org/globalpublicgoods/globalization/toc.html

Guides the concepts, political background, production, case studies of the application globally in the aspects of financial, natural resources, health, trades, conservation and biodiversity

Current Conditions of CDM Development in Indonesia and Indonesia Position towards Post Kyoto (from Dewi Gayatri, Research Assistant)

Profile; by Masnellyarti Hilman; National Committee on CDM of the Republic of Indonesia ; 2007; English version available at

http://www.mc-cgn.de/km/carbonexpo/conference/download_presentations_2007/pdf/fri_15.30-17_os_MasnellyartiHilman.pdf (PDF, Size: 168 KB)

Explains strategies of CDM projects, criteria of the sustainability of environmental, economic, social, technology, procedure of approval, list of on-going projects and future carbon market

From Thamrin Simanjuntak, Solution Exchange Indonesia , Banda Aceh

REDD Methodology and Strategies

Manual; The Ministry of Forestry, Republic of Indonesia; Indonesia Forest Climate Alliance, UN Climate Change Conference; 2007; English version available at

http://www.dephut.go.id/INFORMASI/LITBANG/IFCA/Summary%204%20policy%20makers_final.pdf (PDF, Size: 1,6 MB)

Explains details of REDD program in Indonesia, covers governance, legal framework, policies, strategies, baseline data, monitoring, institutional, market and financial mechanisms

Certified Emission Reduction

On-line information; United Nations; English version available at

http://unfccc.int/kyoto_protocol/mechanisms/clean_development_mechanism/items/2718.php

Details on how a country under Kyoto Protocol can implement an emission-reduction project in developing countries that can earn saleable certified emission reduction (CER) credits

The Voluntary Carbon Market

Guidelines; Green Market international, Inc; Massachusetts Arlington, USA; English version available at http://www.green-markets.org/Downloads/vCarbon.pdf (PDF, Size: 450 KB)

Explains the project-based carbon trading, voluntary or regulatory, criteria, standard, prices, stakeholders, financial mechanism, project activities, benefits for project developers

The United Nations Climate Change Conference in Bali

On-line information; United Nations; English versions available at http://unfccc.int and

http://unfccc.int/meetings/cop_13/items/4049.php

Provides reports of each meeting during the conference conducted in December 2007, covers archives from daily meetings including decisions, resolutions and summary of press briefings

Guidelines for CDM activities in Indonesia

Profile; by Jun Ichihara , Takuro Tobashi; Institute for Global Environmental Strategies; 2009; Permission required: Yes for reproduction and citation; English version available at http://enviroscope.iges.or.jp/modules/envirolib/upload/984/attach/indonesia_final.pdf (PDF, Size: 170 KB)

Informs registered CDM projects, data of emission by sectors, prediction of emission reduction amount, criteria and approval procedure according to national commission

Clean Development Mechanism (CDM) as Alternative Fund Source for the Development of Forestry and Plantation – CDM sebagai Salah Satu Sumber Pendanan Alternatif bagi Pembangunan Kehutanan dan Perkebunan

Article; by Silver Hutabarat, Nur Masripatin; Department of Forestry RI, Jakarta, Indonesia; Bahasa Indonesia version available at http://www.dephut.go.id/INFORMASI/INTAG/cdm.htm

Informs CDM global regulatory, purposes, benefits and risks for Indonesia , criteria for financing mechanism involving donors and stakeholders from government and private sectors

Seven Countries Provide Fund for REED Program in Indonesia

Article; Antara News; 4 January 2009; Bahasa indonesia version available at

http://www.antara.co.id/arc/2009/1/4/tujuh-negara-danai-program-redd-di-indonesia/

Informs countries providing grant and soft loans for REED and CDM programs, particularly for pilot projects in the province of Central , East and West Kalimantan, and South Sumatera

10 Strategy for the implementation of CDM and Carbon Trade in Indonesia

Concept; by Y. S. Hadi and M. B. Saleh; FAO Corporate Document Repository; English version available at http://www.fao.org/docrep/008/ae537e/ae537e0c.htm

Analyzes global regulatory and programs, market demand, political and economic situations that gave impact to national economic, natural resources and environmental management

Carbon Trading for Sustainable Forest Management, the Case of the Berau Model Forest

Report; by Andre Oosterman, Ministry of Forestry RI and Estate Crop, Jakarta ; 2000; English version available at http://www.dephut.go.id/HALAMAN/PDF/plan09.pdf (PDF, Size: 182 KB)

Describes implementation of the CDM guideline regarding area of forestry, workers, livelihood activities, companies, organizations, estimation of emission reduction & financial mechanism

Recommended Organizations and Programmes

From Rina Dj. Surgandi, Department of Forestry of the Republic of Indonesia

Department of Forestry Republic of Indonesia , Jakarta , Indonesia

Gedung Manggala Wanabakti Blok I Lt. 3, Jalan Gatot Subroto, Senayan, Jakarta 10270 , Indonesia ;

Tel.: +62-21-5704501-04; +62-21-5730191; http://www.dephut.go.id/

Manages forestry in line with national and international policies including Kyoto Protocol, UNFCCC, REDD program, CDM, LULUCF towards environment and economic sustainability

Bappenas - National Planning and Development Agency, Jakarta , Indonesia

Jalan Taman Suropati No.2 Jakarta 10310, Indonesia; Tel.: +62-21-3905650

http://www.bappenas.go.id/ and

http://www.bappenas.go.id/index.php?module=ContentExpress&func=display&ceid=1968

Develops national long term plan including natural resources management in line with sectors of food and agriculture, fishery and marine, mining, mineral and energy, and environment

From Frans Oematan, CARE International Indonesia , Soe, Timor, East Nusa Tenggara , Indonesia

CARE International Indonesia , Jakarta

TIFA Building 10th floor Suite 1005 Jalan Kuningan Barat 26 Jakarta 12710 Indonesia ; Tel.: +62-21-52922282; Fax: +62-21-52922283; info@careind.or.id; http://www.careindonesia.or.id/

Manages several projects of economic development that promote sustainable livelihoods by providing cash for tools and assets and developing technology for agriculture

Gemma 9 Foundation, Banda Aceh

Jalan Geuceu Meunara VII no. 10, Banda Aceh , Indonesia ; Tel.: +62-651-43216;

gemma9info@yahoo.com; http://www.gemmanine.org

Improves knowledge and skill of community to maintain sustainable livelihood and economic activities which are environmental friendly and promote natural resource management

From Arturo Pasa, College of Forestry and Natural Resources, Visayas State, University Leyte, Philippines

College of Forestry and Natural Resources, University Leyte, Visayas State , Philippines

Paterno St. Tacloban City , Philippines 6500, Philippines ; Tel.: +63-53-3212471; Fax: +63-53-256122; http://www.lnu.edu.ph/index.php?option=com_frontpage&Itemid=1

Facilitates study of natural resources and the impacts to economic development of local communities and national level in accordance with global regulatory and programs

International Tropical Timber Organization, Yokohama , Japan

5th Floor, Pacifico , Yokohama 111, Minato Mirai, Nishi ku, Yokohama , 220-0012 Japan ; Tel.: +81-45-231110; Fax: +81-45-2231111; itto@itto.or.jp, http://www.itto.int/

Works to raise the capacity of governments, the private sector, non-government and local organizations to manage the forests and resources

Canadian Red Cross, Nias (from Sulaeman Harefa)

Jalan Patimura No. 3, Gunung Sitoli, Nias 22815, Indonesia; Tel./Fax: +62-639-22082; http://www.redcross.ca/article.asp?id=000005&tid=003

Implements environmentally friendly programs, avoid de-forestry in Indonesia, built 2000 houses in Nias utilized timber from plantations which are specifically grown for timber usage

Gunung Gede Pangrango National Park , West Java (from Indra Exploitasia Semiawan)

Jalan Raya Cibodas, Cipanas, Cianjur, Jawa Barat 43253 , Indonesia ; Tel.: +62-263-512776; Fax: +62-263-519415; info@gedepangrango.org; http://www.gedepangrango.org

Informs conservation area in West Java province, covers plans, animals, insects, climate, tourism facilities and activities of climbing, camping and progress of tree adoption program

Puspenas Foundation, Nias, North Sumatera (from Anugerah F Zendrato)

Jalan Diponegoro no. 357, Sifalaete, Gunung Sitoli, Nias 22815, North Sumatera , Indonesia

Works to rebuild livelihood and economic activities that promote environmental sustainability through organic farming toward integrated agro livestock livelihood

International Development Law Organization, Banda Aceh (from Basyuni)

Green Paradise, Jalan Tgk. Chiek Kompleks Puskopol Ajun Jeumpet, Aceh Besar, Aceh , Indonesia ; Tel.: +62-812-6999801; http://www.idlo.int

Provides tools and skills for strengthening the rule of law and good governance practices through sustainable development of economic, social, institutional and environment

United Nations Framework Convention on Climate Change (UNFCCC), Bonn , Germany (from Teguh Karyanto Prasetyo, The Jakarta Globe News, Jakarta , Indonesia )

Haus Carstanjen, Marthin Luther King Strasse 8, D-53175 Bonn, Germany; http://unfccc.int/2860.php

Provides detailed information on global conferences, regulatory, policies, methods, sciences, planning to facilitate member countries maintaining environment and reduce carbon emission

National Commission of Clean Development Mechanism, Jakarta (from Thamrin Simanjuntak, Solution Exchange Indonesia , Banda Aceh)

Jalan D. I. Panjaitan Kav 24, Jakarta 13410, Indonesia; Tel.: +62-21-8517164; Fax: +62-21-85902521; http://dna-cdm.menlh.go.id

Reviews and provides recommendation to CDM project proposal, maintain project data base, provides reports to UNFCCC, organize internal coordination and stakeholders meeting

Bali International Consulting Group, Bali (from Dewi Gayatri, Research Assistant)

Bali Garden Hotel Jalan Dewi Sartika, Kuta 80361, Bali, Indonesia; Tel.: +62-361-759282; Fax: +62-361-759282; http://www.bicg.org/bicg.php?sectionID=1

Provides consulting of business and integrated sustainable development which adopt clean development mechanism and renewable energies, covers research, due diligent and training

Recommended Communities and Networks

Network of Magazines on Low External Input and Sustainable Agriculture, LEISA, The Netherlands (from Frans Oematan, CARE International Indonesia , East Nusa Tenggara , Indonesia )

http://www.leisa.info/, ileia@ileia.nl; Tel.: +31-33-4673870; Fax: +31-33-4632410

Facilitates exchange of experiences and publishes practical field experiences of Low External Input and Sustainable Agriculture (LEISA) to build up knowledge on LEISA

REDD Collaboration, Natural Capital Institute, Natural Capital Institute, California , USA (from Dewi Gayatri, Research Assistant)

http://www.wiserearth.org/group/REDD, Tel.: +1-415-3316241; Fax: +1-415-3316242

Facilitates discussion of environmental globally, covers emission trading, land use policy, environmental law and policy, forest ecology, land conservation and green house gases

Recommended Portals and Information Bases

Jakarta Globe News (from Teguh Prasetyo Karyanto)

http://thejakartaglobe.com/

Provides global news of economic, businesses, political situations that affect Indonesia directly and indirectly in short term and long term period such as environmental sustainability

United Nations Climate Change Conference 2009 (from Thamrin Simanjuntak, Solution Exchange Indonesia , Banda Aceh)

http://en.cop15.dk/climate+facts/process/cop1+%E2%80%93+cop14, Tel.: +45-33-923300; Fax: +45-33-923300

Informs annual climate change conference since 1995, provides report of each conference, included documentation of policies and regulations and provides link to related organizations

Climate Action Network , Washington , USA (from Dewi Gayatri, Research Assistant)

http://www.climatenetwork.org/; Tel.: +1-202-6216309; Fax: +1-202-5365503

Promotes actions to limit climate change to ecologically sustainable levels through the coordination of information exchange on climate issues, global policies and regulatory

Responses in Full

Teguh Karyanto Prasetyo, The Jakarta Globe News, Jakarta , Indonesia

I work for a news agency and fortunately can monitor the progress of “carbon trading” practices. We could say carbon trading as Perdagangan Karbon in Bahasa Indonesia; it is like translating the phrase Stock Exchange as Bursa Saham. We know that carbon (CO2) is a kind of gas that contributes to the greenhouse effect in the atmosphere; it keeps the heat inside the atmosphere and causes global warming. The increase in temperature will melt the ice and the sea level will rise. This is a real danger which must be mitigated. The amount of carbon released on earth should be reduced, but how can this be achieved when activities that produce the CO2 are increasing? Forests can absorb CO2 and release oxygen therefore forests should be maintained and developed.

In brief, carbon trading operates to identify values of anything that facilitates carbon storage or carbon emission reduction. Then, the trading or the exchange can be organized based on those measured values. The carbon emitters will compensate the parties that store carbon or reduce carbon emissions.

Industry is the main carbon emitter but households also contribute by using domestic appliances. The idea is that industry should reduce their carbon emissions. According to the Kyoto Protocol (Kyoto Protocol to the United Nations Framework Convention on Climate Change) of 11 December 1997 to significantly reduce greenhouse gas emissions by 2012 (5.2% from 1990 status). The Kyoto Protocol was ratified by Indonesia on 28 June 2008.

Carbon trading can function more effectively if the amount stored and reductions in carbon emissions is measured and monitored. On 13 June 2008, Indonesia and Australia signed an agreement to develop a forest carbon accounting and monitoring program.

Sulaeman Harefa, Canadian Red Cross, Lahewa, Nias, North Sumatera , Indonesia

As Pak Ishak mentioned in his query, there are organizations that utilize environmentally friendly programs using imported timber- our program is one of them. We used such a program when we constructed more then 2000 houses for earthquake victims in Nias. Each house we constructed used approximately three cubic meters of timber; the total amount of timber used for the project was approximately 6000 cubic meters (this is not including the 4000 houses that were constructed in Aceh). If we work on the assumption that one tree can produce about five cubic meters of timber, we can deduce that the project saved 1200 trees from been cut down in Indonesia .

The obvious question which arises from this is, are these projects just saving forest in Indonesia and destructing forests in other countries? I don’t think so. The reason why our project managed to still be environmentally friendly whilst using timber from other countries is that the timbers from these other countries was pine wood, from plantations which are specifically grown for timber usage in Thailand and Germany. The trees were grown there specifically to be used in the production of timber materials. However, it would have been best if we did not import the timbers, if Perhutani and Ihutani (government-owned plantations) could produce that construction materials which trees are easily grown in Indonesia . We know that pine trees grow well in mountainous areas in Indonesia , but I have not yet heard of Indonesian pine being used as a construction material. We should look to the Scandinavian countries where pine plantations have been cultivated and specially grown to provide timber materials which are used in construction and furniture.

If we are looking for ways to reduce or indeed stop logging activities in Sumatera’s unique and special old growth forests then one of our best options is to develop plantations which grow timber specifically for construction needs. We should also remember that Indonesians are familiar with wood and wooden materials are used in their everyday life and even though there are substitutive materials such as fiber glass, plastic and steel, Indonesian people are more at ease using wood. Therefore we need a solution which accommodates this and meets environmental standards. This cultural practice of using wood means that the demand in Indonesia for wood is always going to be high and cannot be fulfilled by the teak woods and mahogany woods which are supplied from the government-owned wood plantation. Further, not only is there limited production but the price remains high and therefore this is not the best option.

The preparation to produce low cost timber materials, which are environmentally friendly, needs to start now. Trees need to be grown in plantation areas and we need to plan to harvest the wood in 15 to 25 years time. It would be best if the kind of trees used are those which are already commonly found in building supplies stores such as; kapur, keruing, durian, pulai, sungkai, etc.

Indra Exploitasia Semiawan, Gunung Gede Pangrango National Park , West Java , Indonesia

Here I submit the Ministry of Forestry Regulation number 68, published on 11 December 2008, about Conducting Demonstrations on REDD (Reducing Emissions from Deforestation and Forest Degradation). Activities that can be done in protected areas, such as conservation and other initiatives are described in the regulations. On the criteria of location selection, indicators, monitoring systems and the payment mechanism are being formulated by a team in the Forestry Department, and the regulation also gives a mandate to immediately publish these guidelines.

The type and function of ecosystems will determine appropriate strategies for the implementation of programs related to environmentally friendly REDD mechanisms. Different strategies will be applied depending on whether the ecosystems are peat-land, low-land or high-land ecosystems or others. Environment-friendly programs which are related to forests are also different depending on whether the forest functions as protected areas, conservation or production.

I would be very happy if I can assist in preparing processes of strategic programs for carbon trading. Activities will span from the requirement identification at the local level based on the existing problems to the harmonization of legislation and program in national and international level. So, as the final outcome, this program needs to be accepted by all the stakeholders and can be implemented effectively.

The Ministry of Forestry Regulation is available at: http://www.solex-un.net/repository/id/ecdv/CR5-RR1-ind.pdf Please also see: www.gedepangrango.org

Johanes Yonerson , Haskoning Nederland BV , Central Java , Indonesia

I am writing to respond to Pak Ishak’s query; especially I want to comment about the utilization of environmentally friendly materials. If we want to be environmentally friendly in the construction industry, then we need to be clear from the outset what exactly we mean by environmentally friendly. It is a fluid term which can be used in reference to many things and as such when we say we want to be environmentally friendly in the construction industry we could be referring to many things; materials and their sources, construction processes or the operational phases. Each of these has specific criteria.

Regarding materials and its sources, timber are considered to be not environment-friendly as it comes from logging activities, however we must remember that the non-wood materials are not always environmentally friendly. Stone, sand, cement, asbestos, PVC, plastic, geo-textile, aluminum, iron, glass, earthenware, zinc sheet plain or corrugated, ceramics, gypsums, etc are all sourced or produced from mining and non-renewable materials.

Construction processes for these non-timber materials can also cause damage to the environment; the changing on land surfaces will affect the water flow, create the bad drainage, decrease the ground water level, there will be hydrocarbon waste (oil leakage), gas emissions, and uncontrollable dust.

In the post construction phase, there are permanent effects, such as risks caused by materials with asbestos content, radioactive content, or irritant substance.

So, there are many things beside the issues which surround the use of wood that affect the environmental condition. Wood actually is a renewable material, but there needs to be a balance between the consumption and the material regeneration.

I think it is more important to control the careless mining activities which collect the materials used in construction from rivers and have quick and direct impacts such as changing river directions, catalyzing floods, sedimentation, erosion which triggers bridge damage, and oil leakage from the excavators. Thus, the utilization of imported woods is not currently the exclusive or most important environmental issue surrounding the construction industry. We cannot be sure that countries which do produce timber have calculated the impacts, it is important for us in Indonesian to concentrate on these issues which are immediate and important.

Basyuni, International Development Law Organization, Banda Aceh, Aceh , Indonesia


My name is Basyuni and I work at the International Development Law Organization (IDLO) in Banda Aceh as a researcher on the land rights and the communities‘ access to natural resources. I would like to respond to the query by Mr. Ishak Tayeb regarding strategies and schemes that can be used to set up environment-friendly development programs for districts located in the middle of the Aceh plateau, and the compensation mechanism of carbon trading that must follow.


Currently, the climate and energy crisis has resulted in a lot of important changes that affect the management of natural resources and attempts at reducing poverty, which are especially felt by groups of people in developing countries. At the international level, United Nations Framework Convention on Climate Change or UNFCCC has been involving all parties, including developing countries, to address climate change. The Kyoto Protocol introduces a binding commitment by developed countries through agreeing to restrict emissions of greenhouse gases (GHGs). The Bali Action Plan, which was developed at the UNFCCC meeting in Bali , December 2007, began the process of negotiations designed to tackle climate change including a new policy to fund new adaptations, technology transfer and the prevention of deforestation to reduce emissions.


Reducing emissions from deforestation prevention was included in the agenda because Land Use, Land Use Change and Forestry (LULUCF) are areas that are responsible for 18% of emissions of greenhouse gases in the world each year. Recognition of the importance of reducing emissions that caused by LULUCF according to prevent climate change has resulted in the creation of financial incentives for Reducing Emissions from Deforestation and Forest Degradation (REDD) to be included as part of the Kyoto Protocol during the next phase (before 2012). Although REDD is currently outside of the Kyoto Protocol, the REDD project has started to produce carbon credits that will be sold through the voluntary market. It is voluntary because the Kyoto Protocol does not oblige developing countries to reduce GHG emissions.


It is important for Aceh to apply carbon trading as forests in Aceh are still in good condition and Indonesia is responsible for 30% of global LULUCF emissions (those that are a result of changes in land function and/or conversion of forest into commercial plantations). This is the highest share of any country in the world. In addition, 80% of Indonesian GHGs come from forest fires and logging. This makes the protection of Indonesian forests a global priority and Indonesia a strategic country to carry out the deforestation prevention project.


Aceh has more than 3 million hectares of forest land, which is the largest remaining area of forest with a rich bio-diversity in South-East Asia . However, defoliation levels have increased in recent years following a peace agreement, which makes Aceh the ideal place for implementation of the REDD project.


The REDD emission trading (or carbon trading) mechanism between developing countries and developed countries can be operated with the following condition: the State is obliged to undertake efforts in prevention of deforestation and degradation that occur because of economic and social activities in communities, with the goal of reducing global carbon emissions. These efforts should be undertaken within a specified scale and time period. Meanwhile, developed countries are obliged to pay compensation on the emissions credits obtained from those prevention efforts being undertaken by developing countries. Proof of the transaction will be used to show evidence of developed countries meeting their obligations based on international agreements in climate change.

In line with the above conditions, the Governor of Aceh, Irwandi Yusuf, recently introduced his program of 'Strategic Investment and Economic Development in Aceh Green,' or ‘Aceh Green’ as it is commonly known. Aceh Green aims to maintain peace through economic reconstruction and development which have balanced elements of comprehensive economic development, community development and the conservation of natural resources. Primary forest conservation and management (to prevent defoliation) and maintenance of watershed areas are the main activities.

Rina Dj. Surgandi, Department of Forestry Republic of Indonesia , Jakarta , Indonesia


Outside the practice of carbon trading within the CDM (Clean Development Mechanism) scheme, in Indonesia , the REDD (Reducing Emission from Deforestation and Forest Degradation) scheme has not made any concrete implementation that can be used as a reference. In the last two years, preparation has been made by the Ministry of Forestry together with some of these countries: Australia , Germany and the United Kingdom , through their institutions in Indonesia . But the preparation is still in the stage of composing methods and baseline data on a national level.

Mechanisms for compensation are still in the process of drafting legislation at the ministry level and is not yet final, due to the lack of baseline data needed by the REDD scheme. The initiatives of REDD are voluntary and could by principle be linked with the carbon market of the world, but is has not yet been realized. However the design of projects and studies should be able to start.


I know that Bappenas (National Planning and Development Agency) has been coordinating several of agencies in the central government to prepare studies on the internalization rate of environmental economics in the Medium Term National Development Plan (RPJMN) for the years 2010-2014. Therefore we can also invite Bappenas for input regarding the policy on environmental assessment besides the carbon-trading scheme to support environment-friendly development programs in the district or on a provincial level.

Djamester Simarmata, Economic Department, University of Indonesia , Depok , Indonesia

I would like to talk about tropical forest as a global public good.

One of the vital issues regarding global warming is tropical forests. Industries and transport in developed countries are the main carbon (CO2) emitters and developed countries have been asking tropical countries to preserve their tropical forests to capture carbon. Without going into these topics further, one has to see the nature of tropical forests in the context of preventing global warming, but also in the context of biodiversity.

Tropical forests have a special position as a global public good, in the sense that they absorb the carbon in the atmosphere, and at the same time preserve biodiversity. As they grow, tropical forests will absorb the carbon. However, if the forests mature and are not properly managed the absorbed carbon will be offset by the released carbon due to the aging of the trees (dying branches, and so on). In order to prevent this situation, the forest needs to be cut back with a very strict prescription: it must be sustainable.

Preserving the tropical forests is not without cost, in the sense of opportunity costs for both the people and also for the country. Given tropical forests are a global public good, all countries must contribute to the cost of preserving the forests. As we know, the developed countries have adopted a carbon tax, but this is only for reducing oil consumption, and is not related to tropical forests as a global public good. None of the money raised through the carbon tax is allocated to financing the preservation of tropical forests. Everybody knows that each public good, namely roads, research and development, defense, and so on, must be financed by taxation. Therefore, a portion of the carbon tax levied in developed countries should be allocated to preserving tropical forests which absorb carbon. Until now this point has not been taken into account, and it is time to consider and implement this scheme.

Emission trading could be one way of improving the situation, but seeing tropical forests as a global public good will be more effective and provide a win-win solution.

Arturo Pasa, College of Forestry and Natural Resources, University Leyte, Visayas State , Philippines

Thank you for considering me in your discussion. Carbon trading is a complicated transaction and needs an intermediary body. Especially for small farmers (smallholders), they cannot by themselves accomplish the implementation and sustaining of a carbon trading system; which requires documents which are needed in projects under the Clean Development Mechanism scheme. It requires the government to make a national policy so that the transaction can be facilitated.

There will be the 15th COP (Conference of the Parties) meeting in Copenhagen this year and possibly we could learn more about recent developments on this regard. I hope we will bring together and be able to support the lives of smallholders in this endeavor.

(Please also read an article by Arturo Pasa: Carbon trading in the Philippines , Numerous challenges to overcome for smallholders to benefit) http://www.itto.or.jp/live/Live_Server/4478/tfu.18.03(06-08).e.pdf

(Article’s Summary)

Arturo explained about carbon trading as potential means by which smallholders could enhance their revenue from small-scale tree farming and agro-forestry systems. There are some issues that should be resolved to ensure smallholders could draw benefits from carbon trading scheme. The issues are about price stability and profitability of carbon, transaction process, the absence of clear trading schemes, landholdings – land tenure – land ownership, natural calamities, long-term security and stakeholder participation, and insufficient dissemination. It is also explained about the roles of government, NGOs, landlords, and the smallholders to make a better carbon trading practices which attract more smallholders’ participation.

Frans Oematan, CARE International Indonesia , Soe, Timor, East Nusa Tenggara , Indonesia

My name is Frans Oematan and I work at CARE. I have conducted some environment-friendly agriculture development programs and would like to talk about them here with you at Solution Exchange. We usually adopt LEISA (Low External Input for Sustainable Agriculture) when we are implementing interventions in villages.

In brief, this approach is about utilizing the local ways and resources that are currently available in the sites. Many of these practices have been proven to be environmentally friendly, and effective for years. However, there are some practices that are no longer suitable because of the changing of natural conditions. For example: nomadic farming, cut and burn preparation and traditional livestock production are all traditional practices which we now know have negative impacts on the environment. I understand that Gemma 9 Foundation in Aceh has documented and disseminated many local agricultural good practices that are currently being maintained by the senior farmers and will be transferred to their children.

Regarding forest matters, nowadays, the government is actively promoting the Community-Based Forest program to support the wood materials and land rehabilitations.

For further information, please visit:

LEISA at http://www.careindonesia.or.id/index.asp?lg=id&sb=3&dt=11&id=48

Gemma 9 at http://www.gemmanine.org

Government Guidelines on Community-Based Forest at http://www.dephut.go.id/files/l1_5_p03_04.pdf

Thamrin Simanjuntak, Solution Exchange Indonesia , Banda Aceh

I also want to convey some important notes and documents about the mechanisms of carbon trading in Indonesia .

We already known that there are three types of carbon markets created based on the Kyoto Protocol, namely: Emission Trading, Joint Implementation and Clean Development Mechanism.

Developing countries are not required to reduce carbon emissions but may do so and the leftovers can be sold on a “voluntary market”. Clean Development Mechanism (CDM) is a scheme that also can be conducted by developing countries and the Certified Emissions Reductions (CER), received could be exchanged in the Carbon Market.

In the forestry sector, there are two types of projects with CDM schemes. These are forestation which develops new forest on land that has not been timbered at least 50 years before the project was conducted, and Reforestation which develops new forest on land that has not been timbered since 31 December 1989.

The institutions or parties which are responsible for conducting a reduction of greenhouse gases emissions, in the framework of CDM are:

· The project proposer (the Local Government, Private Company, NGO or University) Communities and related stakeholders.

· National Commission for CDM; its duties among others, are to approve and recommend projects at national level and international level. It is referred to as the Designated National Authority (DNA). http://dna-cdm.menlh.go.id

· Operational Entities; they are responsible for, among other things, to verify and monitor the emission reduction. These institutions are accredited and appointed by the CDM Executive Board.

· CDM Executive Board which is responsible for, among other things, issuing of the Certified Emissions Reductions (CER) that are tradable. Project planning should be made according to the format issued by the CDM Executive Board, it can be downloaded from http://cdm.unfcc.int. CDM Executive Board’s office located at: UNFCCC Secretariat (United Nations Framework Convention on Climate Change): Haus Carstanjen, Marthin Luther King Strasse 8, D-53175 Bonn, Germany. Web: http://unfccc.int

For more information, we can read the full document in these followed links:

1. Guidelines for CDM activities in Indonesia (Bahasa Indonesia) http://www.scribd.com/doc/5988980/Panduan-CDM

2. Guidelines for CDM activities in Indonesia (English Version from IGS)

http://enviroscope.iges.or.jp/modules/envirolib/upload/984/attach/indonesia_final.pdf

3. Carbon trading, Case in Berau Kalimantan http://www.dephut.go.id/HALAMAN/PDF/plan09.pdf

4. REDD Methodology and Strategies http://www.dephut.go.id/INFORMASI/LITBANG/IFCA/ Summary%204%20policy%20makers_final.pdf

The first document presents eight CDM forestry projects in seven provinces in Indonesia (West Sumatera, South Sumatera, Lampung, Jambi, South Kalimantan, Southeast Sulawesi and West Java ).

In the second document we can find the foreign companies that have become partners of the Indonesian-based private companies which conducted the CDM projects.

The third document is an example of a design on CDM project in Berau, Kalimantan .

The fourth document are the ideas of the UNFCCC Conference in Bali which have been agreed to be conducted by developing countries as another alternative to obtain the incentives (CER), benefits of biodiversity and other benefits.

Anugerah F Zendrato, Puspenas Foundation, Nias, North Sumatera , Indonesia

We are very proud and pleased with the assistance that was provided to Nias after the earthquake of 2005. In connection with the import of timber in the framework of environmentally-friendly activities, I think it would better if the logistics funds for importing foreign timbers were used to purchase materials in and from Indonesia . If there were difficulties in getting wood materials, we can change the specifications for materials used so that we utilize those materials that are easily found in and around construction sites, such as stone and sand. The other upside of this practice would be the injection of money into Nias, as well as that the buildings built would be more durable, which is especially important for locations such as Lahewa, which are swampy and have a high rainfall.

Regarding reforestation and planting of timber trees to produce building materials for the future, I strongly agree that these are good ideas that need to be implemented. Through the program, community obtains tree seeds; Mahogany tree seed is very good for Nias region. We also can find in Nias a local tree that is also very good for construction and is equivalent to mahogany tree, it is simalambuo tree.

If it is possible, trees cultivation program would be conducted in the island of Nias to improve the community’s economic condition in the future and indirectly also to provide opportunities on improving their ability to pay for their children’s education and towards higher education. Our institution is ready to become a partner to implement the program.

Many Thanks to all who contributed to this Query!

If you have further information to share on this topic, please send it to Solution Exchange for the Economic Development Community at se-ecdv-id@solex-un.net with the subject heading “Re: [se-ecdv-id] Query: Environment-Friendly Development Programmes, from Bener Meriah District. Additional Reply”

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