#1THE WORLD BANK FOREST CARBON IBRD IDA WORLD BANK GROUP PARTNERSHIP FACILITY East Kalimantan Jurisdictional Emission Reductions Program, Indonesia 19th Carbon Fund Meeting 5th February 2019 Washington DC, USA#2i. Jurisdiction: Key Relevant Program Area Features East Kalimantan, INDONESIA ETHNIC DIVERSITY Dayak, Kutai, Javanese, Chinese, 3.5 million Banjarese, peoples 7 districts and 3 cities, 103 sub-districts 1,032 villages Total area: 12.7m ha Forested area: 6.5m ha (54%) Forest class @timpakul Repost & Regram App Area (ha) 2,190,192 Bugis, Malay Primary dryland forest Secondary dryland forest 4,018,093 Primary mangrove forest 36,275 Primary swamp forest 22,674 11 vulnerable and endangered species Secondary mangrove forest 130,700 8 of which are mammals Secondary swamp forest 111,064 Total 6,508,998#3ii.Key Drivers and Underlying Causes: 7 key drivers Agriculture 6% Unlicensed land clearing Key Drivers Underlying Causes Poor spatial planning 4% Ineffective forest supervision Illegal Logging 7% Mining 10% Overlogging/Poor Concession... Timber plantation/ Poor Concession Management 14% watoka Oil Palm 51% and administration Weak policies for forest protection Lack of incentives for sustainable management practices Limited alternative livelihood opportunities for local communities Lack of fire management capacity and lack of alternatives for land clearing Climate factors#4iii. Principal Interventions: Components, sub-components and activities 4 Components 12 Sub-components 29 Activities 1. Forest and Land Governance 1.1 Strengthening the licensing regime 1.2 Dispute Settlement 1.3 Support for the recognition of adat land 1.4. Strengthening village spatial planning 2. Improving forest supervision and administration 2.1. Strengthening administrative capacity 2.2. Strengthening provincial and district government to supervise and monitor implementation of sustainable Estate Crops and Forest Concessions 3. Reducing def and forest deg in licensed areas 3.1 Implementation of HCV policies for oil palm estates 3.2. Support for Small holders and Fire Prevention 3.3. Implementation of HCV and RIL-C policies for Forestry Concessions 4. Sustainable Alternatives for communities 4.1 Sustainable Livelihoods 4.2 Conservation Partnerships 4.3. Social Forestry 5. Program Management and Monitoring and Evaluation#5iv. Implementation Plan: Who is responsible MOEF Technical Implementation Units Ministry Budget Province Environment Provincial Budget Service (DLH) system, MMR, Safeguards, FGRM Nature Reserves National Parks Sub-national registry Program Management and Monitoring and Evaluation Forest and Land Governance Oil Palm Company District Estate Crop Smallholder Oil Palm Service Budget Reducing def and forest deg in licensed areas Village Forest Timber consessions Budget Management Timber plantation Private Unit/Forestry Budget Service Community Group/Social Forestry Sustainable Alternatives for communities Donor Budget Village and Improving forest Community Empowerment Village supervision and administration Service Indigenous People#6v. ER Program Budget and Financing: USD 90,7 million The estimated total ER Program cost 2020-2025 COMPONENT BUDGET Share (USD) 1. Forest and Land 0.9m 1.0% 9.2m 10.2% Governance 2. Strengthening Government Capacity for Forest Administration • Financing strategy The main source of funding for the ER Program is the Government of Indonesia, through its national, province, district and village budgets. • The Government committed and will integrate the ER Program into their development and budget plans • Others from private sector and development partners. Financing sources for the ER-P implementation 3. Reducing deforestation 25.1m 28.0% and degradation within licensed areas National budget 16,81% 4. Sustainable Alternatives 48.3m 53.2% for Communities Provincial budget 13,87% 5. Program Management 7.2m 7.9% District budget 0,02% and Monitoring and Village 38,82% Evaluation Private Sector 20,26% TOTAL 90.7m 100% Development patners 3,53%#7vi. Reference Level: 2006 - 2016 Total REL from deforestation and forest degradation: 62,9 millions ton CO₂e per year 60 60 50 Average Annual 40 Emissions (in millions 30 t CO2 eq/year) 20 10 0 Deforestation Degradation ■Fire-AGB_SF The REL in ERPD and national FREL are the ■Logging in SF same approach Some enhancements: Mangrove Soil (1) application of sample based area estimation for Activity Peat Fire Data ■Peat Decomposition (2) region-specific ■Living Biomass forest inventory data Note: SF = secondary forest; AGB = above ground biomass#8vii. Measurements, Monitoring, & Reporting: Parameters and institutions Parameters to be monitored: Activity Data • Forest cover change (Inst.: BPKH and IPSDH, Direct. Of Planology) • Areas of burned forest land (Inst.: LAPAN, Direct. for Forest and Land Fires Control, MoEF) • Area of logging in production forest (Concessionaries, Province Forest Agency, Agency for Production Forest Management, Forest Management Unit) Emission Factors (Inst.: Provincial Environmental Agency, East Kalimantan MRV Focal Point, Concessionaries) ✰ Emission factors for living biomass ✰ Emission factors for peat and mangrove soils ✰ Emission factors for fires Emission factors for logging damage and waste Schedule for MMR (tentative): ■ 1st MMR in 2022 (towards mid- term ERPA payment) ■ 2nd MMR in 2024 (towards final ERPA payment)#9viii. Estimated Emission Reductions: 97,1 mtCO2eq Effectiveness of program: Year Gross ER after 4% 26% ER Uncertainty Buffer Net ER (million) ■ Improvements in governance (million) Set-Aside (million) (million) (27% reduction) 2020 18,6 17,5 4,5 12,9 Keeping the primary forests 2021 19,0 17,9 4,6 13,2 within protection forest areas 2022 19,4 18,3 4,7 13,5 and conservation areas (30% 2023 19,8 18,6 4,8 13,8 reduction) 2024 20,2 19,0 4,9 14,1 ■ Licensing moratorium on peat ERPA 97,1 91,3 23,7 67,5 Period (20% reduction) ■ Increasing the number of RIL-C implementers (12% reduction) ■ Activities to address land fires (20% reduction) Maximum contract volume = 22 M ton CO2 eq#10ix. Social and Environmental Safeguards: Using national systems to safeguard the program ENVIRONMENTAL RISKS ✓ Loss of natural habitats and biodiversity ✓ Contamination and pollution ✓ Leakages or displacements Env. aspect HCV RIL-C SESA AND ESMF IN EAST KALIMANTAN Env. code of practices Biodiv. manag. framework Sustainable plantation Moratorium (forest & SIS- REDD+ mining) Social aspect Free, Prior & Informed Consent (FPIC) Community engagement skills Participatory mapping & planning Feedback, Grievance, and Redress Mechanism (FGRM) Recognition of indig. people rights Resettlement Planning Framework (RPF) CAPACITY BUILDING SOCIAL RISKS ✓ Conflicts and disputes > tenurial conf. ✓ Access restrictions ✓ Community health and safety risks ✓ Lack of awareness, management cap. and participation ✓ Institutional capacity Gender inequalities and social exclusion Impacts on indig. people ✓ Loss or damage to physical and cultural resources#11x. Benefit-sharing Plan: Funding distribution Indigeneous Communities Villages/Local Community Verification MoEF Gross ER PA Payments Central (XX%) FMU Operational Costs Province (XX%) 25% District (XX%) District Government Agreement Governor DLH, DDPI Agreement Communities (XXXX%) BPDLH (MOF & MEOF) Performance 65% Village gov't (XXXX%) FMUS (XXXX%) Provincial Mining Office Regional Budget Office Order to Pay Private sector (XXXX%) Conservation area (XXXX%) Reward to communitles for historical forest protection (10%) Benefit-Sharing Plan Provincial Forestry Office Provincial Plantation Office UPT (Conservation Implementation Unit) Concept note- Payment Custodian Bank Flow of RBP Funding Distribution#12xi. Stakeholder consultation and participation: Approach and strategy Approach: national-local Communication, government coordination, and consultation Seminars, workshops, focus private sectors group discussions universities NGOs, local community 0 Strategy: ■ Indigenous peoples have been engaged through CSOs as well as through Indigenous Peoples' institutions at the village level. ■ Various channels: film, printed material, radio, and online publications. ■ Coordinating with local government agencies and NGOs, establishing provincial and district REDD+ working groups, and creating climate change networks at the local level.#13xii. Alignment with jurisdictional and national development priorities and climate commitments: Contribution to the NDC National planning National Medium-Term Development Planning on Forestry 2020-2024 National Medium-Term Development Planning 2019-2024 Bappenas (National Development Agency) >>> Low Carbon Development Sustainable Development Goals Forestry Planning at National Level 2011- 2030 Moratorium on the allocation of new logging concessions in areas in primary forests and in peatlands (Presidential Instruction No. 10 of 2011: has been extended 3 times >> 2013, 2015, 2017) The ratification of the Paris Agreement (Act No. 16 of 2016) ■ Nationally Determined Contributions East Kalimantan planning Regional Medium-Term Development Planning 2019-2024 >>> Low Carbon Development Spatial Planning for Province (spatial planning map of East Kalimantan Province in Provincial Regulation No. 1 Year 2016) Green growth development: "East Kalimantan Green" Regulation (Perda) on Climate Change Management in East Kalimantan FCPF ER program implementation (2020-2024) support 31 % reduction in the province's FREL and the NDC emission reduction target from land based sector approximately 19.2%#14Thank You.... 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