East Kalimantan Environmentally Sustainable Development Strategy

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112 Box 15 included programs to provide employees and local people with new skills, in anticipation of the time when the company would no longer be the economic engine of the community. These included training focused on the set up of mechanical workshops for cars and motorcycles, sewing services, small trading shops, and various farming endeavors, improved agricultural practices (beyond slash and burn), and new cash crops for trading. Community Engagement in the Berau Forest Carbon Program TNC and its partners have been working with forest communities in Berau since 2002 and recently completed a study of 20 of the 107 villages in preparation for the BFCP. Villages in Berau vary widely in level of forest dependence, remoteness, level of cultural homogeneity, and experience with the market economy. Virtually all villages are in a process of transition in livelihood strategies and governance institutions, and in most cases village institutions are ineffective, particularly in the upland high forest areas. Land tenure is not formally recognized, and villages are not often not even included in district spatial and development plans. Many villages are located within timber and oil palm concession areas, and each has or will be affected by timber, oil palm, or mining concessions. Proximity and weakly-defined property rights often lead to latent or overt conflicts between communities and neighboring companies. Key issues in community-company relations include consent of communities for company operations, recognition of different types of community rights, legally required and voluntary fees and compensation to communities for use of the forest, and legally required investments by companies in community development. The BFCP has identified six objectives for its community engagement plan: 1. Involvement in low-carbon development strategy: Meaningfully involve communities in design and oversight of Berau’s low carbon development strategy. Forest communities are constructively engaged in BFCP governance and decision making at strategic and operational levels, as well as other important policy dialogs in Berau. 2. Free, prior, and informed consent: Ensure informed consent for all agreements, to be implemented on a sustainable basis. 3. Strengthened village institutions: Help villages develop better governance institutions, ones that will allow for effective community involvement in natural resource management and sustained implementation of BFCP. DRAFT 4. Livelihoods: Improve livelihoods, including alternative livelihoods that reduce pressure on the environment in the short, medium, and longer terms. 5. Benefit sharing: Establish arrangements for fairly and sustainably apportioned streams of benefits for villages including women, (social services, community infrastructure, etc.) 6. Learning: Document and disseminate learning and scaling-up mechanisms from BFCP’s community involvement component. Public awareness on climate change is also required in addition to community engagement programs focused on achieving projects. In 2001, East Kalimantan took part in the survey Knowledge, Attitudes, and Practices: Natural Resources Management, which was a comprehensive survey of awareness and attitudes toward environmental issues. Although quite some time has passed since the survey, its findings indicated that while environmental issues are relatively important to residents of East Kalimantan, there was a gap to people becoming actively involved in solutions. Public awareness and engagement can be even more important and challenging for climate change as its impact is not as clearly or immediately seen as that for poor environmental practices (such as water or air pollution). Kaltim Green and the Governor have been recently conducting a larger public awareness campaign on climate change, which has included
113 EXAMPLE INITIATIVES REQUIRING COMMUNITY ENGAGEMENT SUPPORT Initiative Community engagement required Use of degraded Recognition of community rights and existing land tenure in degraded land land area; agreement on compensation paid to communities in area Zero burning policy Improved smallholder productivity Mining reclamation and rehabilitation REDD Water management Green programs in various provincial ministries, conferences with business associations, public afforestation programs like “One man, five trees,” and public events such as city biking events to promote alternative transportation. FINANCING Education of impact of use of fires; training and technology on alternative land clearing methods; support for community based fire brigades Provision of seedlings, training on the application of fertilizer, and techniques for planting, etc. Best practices related to efficient, safe, and more environmental friendly mining operations, and post-mining land use Training of forest management techniques with a focus on education principles and tools for baselining and monitoring, reporting, and verification Education on impact of use of drainage for peatland decomposition; training and provision of technology for water management Three finance-related functions will be critical to the success of East Kalimantan’s environmentally sustainable development strategy. First, it is crucial to attract domestic and international financing to support East Kalimantan’s abatement initiatives. Second, revenue-sharing models will need to be established to allocate funds to various stakeholders (including national, provincial, and district level governments, as well as project developers, communities, and individuals). Third, finances must be managed and distributed among these parties in a fair and transparent manner. Good governance of this highly complex flow of funds is one of the greatest challenges for REDD and REDD+ systems, and East Kalimantan will benefit from an investment in developing the best possible system here. DRAFT East Kalimantan will require significant, near-term international support to succeed in its plans to create low-carbon prosperity (EXHIBIT 75). In 2012, for example, between USD 20 million and USD 30 million will be required to launch pilots and start abatement initiatives. These costs will ramp up as the environmentally sustainable development plan expands and more initiatives are launched and on a larger scale. By 2030, ongoing running costs to support implementation of carbon abatement and sustainable livelihood opportunities will reach between USD 370 million and USD 570 million. Although the overall required funding is substantial, the cost per tCO2e abated is relatively low; the full abatement cost per tCO2e abated (including implementation costs) ranges between USD 2.00 and 3.10. Table 4 East Kalimantan cannot wait for funds from international carbon markets to realize its ambitious emission reduction objectives through to 2030. In the short term, interim funding from sources such as the Forest Carbon Partnership Facility (FCPF), the UN-REDD program, and bilateral programs such as the Indonesia-Norway Climate Change partnership will be critical to supporting East Kalimantan’s efforts to establish its REDD readiness. The Informal Working Group on Interim
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East Kalimantan Environmentally Sus
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3 East Kalimantan Environmentally S
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5 Contents Preface 7 Acknowledgemen
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7 Preface A broad global consensus
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9 Acknowledgements The DNPI and the
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11 Executive summary East Kalimanta
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13 1. The development of coal-bed m
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DRAFT 15
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17 Kaltim Green Program The Governm
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19 1. The context for East Kalimant
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21 This resource development pathwa
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23 Both Berau and Malinau are large
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25 In the BAU scenario, CO 2 e emis
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27 TOP 5 ABATEMENT INITIATIVES Top
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29 Kalimantan’s shift to a climat
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31 The sector’s 57 MtCO2e of net
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33 Outside of the sector’s need f
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35 The greatest expansion is expect
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37 improving water management in on
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39 Including financial transfers fo
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41 after the identified abatement m
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43 The Case of Oil Palm Permits and
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45 Emissions from the forestry sect
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47 across Kalimantan in 1997 and 19
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49 Utilizing concession buyout sche
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51 Pilot Projects Pilot projects ha
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53 GDP Potential The economic decli
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55 Downstream manufacturing would i
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57 downstream manufacturing as it w
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59 Swidden agricultural practiced b
Page 61 and 62: 61 Although East Kalimantan has far
Page 63 and 64: 63 Reaching average national yields
Page 65 and 66: 65 farmers . We have identified sev
Page 67 and 68: 67 Many mining operations are locat
Page 69 and 70: 69 Unlike timber or oil palm planta
Page 71 and 72: 71 exploration and production conce
Page 73 and 74: 73 The Economic Opportunity of Post
Page 75 and 76: 75 Entering downstream value chain
Page 77 and 78: 77 Current Context The oil and gas
Page 79 and 80: 79 granted in 2008-2009 and contain
Page 81 and 82: 81 Emission from flaring is declini
Page 83 and 84: 83 Satellite images can help monito
Page 85 and 86: 85 Under business as usual, relativ
Page 87 and 88: 87 BERAU Berau is the third largest
Page 89 and 90: 89 350,000 ha of Kutai Timur is cat
Page 91 and 92: 91 substantial natural resource ext
Page 93 and 94: 93 Borneo conservation area as well
Page 95 and 96: 95 agricultural processing. As Pena
Page 97 and 98: 97 Range of climate related risks t
Page 99 and 100: 99 predict increased precipitation
Page 101 and 102: 101 In addition to the refinery and
Page 103 and 104: 103 The greatest economic risks fro
Page 105 and 106: 105 change issues. In December 2009
Page 107 and 108: 107 Proposed BFCP governance and ma
Page 109 and 110: 109 the lack of a strong system, th
Page 111: 111 Carbon Accounting, Standards, a
Page 115 and 116: 115 for example, includes represent
Page 117 and 118: DRAFT 117
Page 119 and 120: 119 Sources • 2010, Kesiapan Kali
Page 121 and 122: 121 • Badan Perijinan Dan Penanam
Page 123 and 124: 123 • Daniel Murdiyarso et al, Me
Page 125 and 126: 125 • Marcus Colchester et al, Pr
Page 127 and 128: 127 • Yosep Ruslim et al, STUDY O
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East Kalimantan Environmentally Sustainable Development Strategy

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