East Kalimantan Environmentally Sustainable Development Strategy

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Carbon Accounting, Standards, and Rights in BFCP
Carbon accounting for the BFCP is being designed with the intent of generating verified emissions
reductions (VERs) against a district-wide baseline for a future compliance market, as part of an
anticipated post-2012 climate treaty framework. As with the Noel Kempff project in Bolivia, which
pioneered accounting methods that both anticipated and formed the precedent for verification
within a voluntary market, BFCP is pioneering and developing a precedent for the verification of
compliance grade VERs within a post-2012 international climate agreement.
Carbon standards: Since the accounting methods for verification within a future REDD+
mechanism are not yet known, the BFCP will follow a rigorous interpretation of the Voluntary
Carbon Standard (VCS), the most advanced and recognized carbon accounting standard available.
The approach being implemented uses methods consistent with the IPCC Good Practice Guidelines
and the GOFC-GOLD Sourcebook (GOFC-GOLD, 2009). Given that the VCS is designed for projectscale
carbon accounting, as opposed to sub-national program scale accounting, or national-scale
accounting, BFCP will also advance methods for nesting carbon accounting within provincial and
national scales.
Aggregating carbon rights: Carbon rights for the forest estate in Berau will be bundled under the
authority of a Ministerial Decree from the Minister of Forestry. Carbon rights from the “non-forest”
land will be bundled under the authority of a decree from the Bupati of Berau. Through these
decrees, all forest carbon rights will vest under the BFCP Supervisory Council.
COMMUNITY ENGAGEMENT
East Kalimantan’s Environmentally Sustainable Development Strategy can only be
implemented if it is actively supported by stakeholder involvement in key areas, such
as land use, technology adoption, and behavior change. Such support can be achieved
by a continuous, transparent, and participative process through which the government and its
agencies involve communities in the decision-making process. Organizations of all types, i.e.,
government agencies, non-profit organizations, or private companies, have deployed community
engagement programs in East Kalimantan.
DRAFT
East Kalimantan can build on two existing government-run community engagement
programs in implementing this strategy: the musrenbang process and PNPM. The
musrenbang process is a bottom-up community engagement and development process
whereby each village outlines its development priorities and submits them to the district. These
are then rolled into a district plan, which is submitted to the provincial government for funding.
The BAPPENAS-managed PNPM is another example of a program that is being used to support
sustainable development. Recently, through technical assistance from the World Bank, PNPM
has earmarked funds to support natural resource management and renewable energy schemes.
The program, entitled Green PNPM, has recently been piloted in Sulawesi with plans to expand to
all the sub-districts (kecamatans) in which PNPM operates. A large component of Green PNPM’s
funding is currently being deployed to support rural electrification through the development of
micro-hydro power plants.
Box 14
Private companies also need to have community engagement plans to promote behavioral change
toward sustainable practices. (See Box 15 for a discussion on community engagement in the
Berau Forest Carbon Program and Table 4 for some examples of initiatives that require community
support.) PT Kendilo Coal Indonesia, as an example, built strong partnerships with local NGOs as
it planned its mine closure. Working with these partners, it looked beyond narrow environmental
rehabilitation to promote sustainable development of the local community. The closure plan