1. Berau Forest Carbon Project / BFCP
A Hope we can believe in
REDD Implementation in Berau:
Berau Forest Carbon Project / BFCP
An Indonesian REDD Demonstration Activity
Dr. Dicky Simorangkir
Forest Program Director – TNC Indonesia

2. TNC’s Global Climate Program
evolved to various carbon projects under different schemes
starting in 1995 with Noel Kempff project in Bolivia
reforestation (Bayou Pierre and Tensas River Basin, Lousiana)
conservation, sfm, community (Berau-Indonesia, Adelberts-PNG, Rio Bravo-Belize)
sustainable forest management (Garcia River Forest-California)
reforestation, community (Tengchong-Yunan/Cina andGuaraquecaba-Brasil)
conservation, community (Noel Kempff, Bolivia)
Berau Forest Carbon Program

3. REDD in Indonesia BFCP ~ why Berau? Large sub-national Program
Integration across scales and sectors
Landscape approach – better monitoring, less leakage
Support from decentralized government
Probably all that is feasible
Could be a good example / test case for national implementation
REDD Projects:
site/unit, district, province, national
4 Demonstration Activities launched by the government in Jan 2010
Berau Forest Carbon Program
Indonesia–TNC
High forest cover; high threat
High biodiversity
Strong support from local stakeholders, particularly local government
Strong program to build on
Indonesia–Germany
Indonesia–Australia
Indonesia–ITTO

4. Total Area ~ 2.2 millions ha
BFCP ~ challenges on the ground
Total Area ~ 2.2 millions ha
13 Timber concessions
780,000 ha
32 Oil palm concessions
189,000 ha
27 Mining concessions
185,000 ha
3 Timber plantation
229,000 ha
7 Protected forests
361,000 ha
Others
456,000 ha

5. Carbon Credit Transaction
BFCP ~ grand strategy
BFCP ~ carbon accounting framework
Scoping
area
strategy
standard
REL
area changes
emission factors
reference area
projection of BAU
Additionality
costs strategies, effectiveness and co-benefits
estimated emission reduction target
Buffer & discount
estimated leakage
estimated permanence
MR & Validation
monitoring plan
reporting
validation & registration
MR & Verification
measurements
verification
Carbon Credit Transaction 1 6 6 2 5 5 3 3
Historic
Performance
Period 1
REL 4 4

6. Reference Emission Level

7. Reference Emission Level
BERAU TOTAL
Av. Emission (ton CO2-eq/ha/year)
6.57
7.9
11.65
9.2
Total Emission (ton CO2-eq/year)
14,390,172
17,316,981
25,537,545
20,165,036
PROTECTION FOREST
0.43
1.08
0.94
1.03
937,929
2,367,687
2,068,553
2,246,814
PERMANENT FOREST AREA
3.03
3.36
4.73
3.87
6,651,281
7,360,485
10,359,273
8,491,556
NON-PERMANENT FOREST AREA
3.37
3.66
6.13
4.47
7,394,094
8,027,788
13,440,026
9,791,625

8. Better siting, land swaps, HCVF, better management
BFCP ~ grand strategy
Reduced emission from DEFORESTATION: Forested areas outside state forest areas
Plantations
Better siting, land swaps, HCVF, better management
Historic
Performance
Period 1
REL
Strategy 1

9. Oil palm concessions cover about 9% of Berau District
44% of the concession areas have undisturbed, high-density,
or medium density forest
Emission from conversion would be 590 tons per ha

10. BFCP ~ grand strategy Production Forest Plantations
Reduced emission from DEFORESTATION: Forested areas outside state forest areas
Reduced emission from FOREST DEGRADATION:
Improved management of production forest and plantation forest will reduce forest degradation
Production Forest
RIL, HCVF, sfm, certification
Plantations
Better siting, land swaps, HCVF, better management
Historic
Performance
Period 1
REL
Strategy 1
Strategy 2

11. Reduction in C if changed to plantation
Logging concessions cover about 40% of Berau District
Well-managed concessions can store 75% of the carbon as an
undisturbed forest
Potential annual emission reduction 47,000 tons CO2 from a
50,000 ha forest concession
Land Cover
Tons C/ha
Reduction in C if changed to plantation
CO2 Emissions Ha
Emissions
Undisturbed Forest
284
231
848
11,374
9,642,536
Logged over Forest
190
137
503
62,834
31,592,307
Total
74,208
41,234,843
Timber plantation concessions cover about 10% of Berau
Ca. half of the concession areas have undisturbed, high-density,
or medium density forest
Emission from conversion would be 500+ tons per ha

12. BFCP ~ grand strategy Production Forest Plantations Protected Areas
Reduced emission from DEFORESTATION: Forested areas outside state forest areas
Reduced emission from FOREST DEGRADATION:
Improved management of production forest and plantation forest will reduce forest degradation
Enhancing CARBON STOCK:
Restoration and replanting of degraded areas
Production Forest
RIL, HCVF, sfm, certification
Plantations
Better siting, land swaps, HCVF, better management
Protected Areas
Better management, sustainable financing, restoration
Historic
Performance
Period 1
REL
Strategy 1
Strategy 2
Strategy 3

13. Protection forests cover about 16% of Berau
32% of protection forest area is degraded
Potential for more than 13 million tons CO2 sequestered
through enhancement of forest

14. BFCP ~ grand strategy Cross-Cutting: Improved spatial planning,
Reduced emission from DEFORESTATION: Forested areas outside state forest areas
Reduced emission from FOREST DEGRADATION:
Improved management of production forest and plantation forest will reduce forest degradation
Enhancing CARBON STOCK:
Restoration and replanting of degraded areas
Cross-Cutting:
Improved spatial planning,
Improved governance (capacity building, policy and legal framework), Sustainable financing
Community empowerment and engagement, Improved livelihood
Production Forest
RIL, HCVF, sfm, certification
Plantations
Better siting, land swaps, HCVF, better management
Protected Areas
Better management, sustainable financing, restoration
Historic
Performance
Period 1
REL
Strategy 1
Strategy 2
Strategy 3

15. BFCP ~ MAIN CHALLENGES !!! 1. Need substational funding 2.
Up-front financing is critical
Mix of public/private sources
The case for early public funding
Substantial readiness
investment required upfront
High uncertainty will
remain for several years
The case for long-term private funding
Future emission predicted
>100 mill. tons over 5 years
50% decrease in emissions
may require $500 million
Funding needed is beyond
public finance 2.
Clear and sound institutional and legal framework 3.
Clear and sound financing mechanism 4.
Where is community?

16. Thank You

17. Berau Forest Carbon Program Development (Jan 09 – Dec 10)
BFCP – project phases
Program will seek funding for a 5-year demonstration phase. It is expected that during that time, international finance mechanisms will be agreed to by countries enabling strategies to be scaled up and sustainable financing to be achieved
Full Implementation ???
(???- )
Berau Forest Carbon Program
Demonstration Phase
( )
We are here now!
Development (Jan 09 – Dec 10)
Pilot site-based strategies:
Improved forest management
Forest restoration
Oil palm swap
Land-use planning, policies, enforcement
Monitoring and verification
Adaptive management
Strategies implemented across Berau
Monitoring and verification
Expansion to additional districts and provinces
Scoping
(Apr – Dec 08)
Baseline scenario and monitoring approach
Refine strategies for reducing deforestation
Legal issues
Stakeholder support
Funding sources
Business plan
Political support
Situational analysis/drivers
Rough program design hypothesis
Identification of partners/contractors

18. BFCP ~ institutional framework
Government of Indonesia
DRAFT
Buyers / Investors
Funders
Bilateral
Multi lateral
Philanthropic
Ministry of Forestry
Demonstration Activity authorization for non- forest area
Bundled ERs for full BFCP
$$$
Demonstration Activity authorization for forest estate
$$$
BFCP
Partner
Berau District Government
Technical Assistance
MOU DA partner
MOU
Bupati
Others
Supervisory Council
District Government
Province Government
National Government
Civil society / TNC
District Agencies
Others
BFCP Trust
Secretariat
Technical Assistance Unit
BFCP Technical Teams
TNC
Integrated BFCP REDD+ Programs and Projects
Stakeholder Engagement Planning Governance MRV Communities Timber Oil palm Conservation

19. BFCP ~ partners Forests Land managers Government Other stake-holders
Companies (timber concessions, plantations, mining)
Communities
Land managers
GOVERNMENT
District, Province, National
Various agencies: Forestry, Environment, Agriculture, Mining, Planning, Finance, National Climate Change Council
Government
Forests
Other stake-holders
OTHER STAKEHOLDERS
Wider society in Berau Nearby districts and communities
FINANCE & SUPPORT
Donors: USAID, AUSAid, NORAD, TNC, ?
Investors
Technical: TNC, ICRAF, Winrock, Univ. Mulawarman, Sekala, World Education, Univ. Queensland, USFS, Daemeter, WRI, etc.
Finance and technical support