East Kalimantan Environmentally Sustainable Development Strategy

28
Exhibit 10
cost as much as USD 26 per t CO2e and USD 12 per t CO2e respectively, using a full opportunity
cost methodology.
REDD+ is still in development, and the laws governing and allowing full REDD+ projects are still
being drafted. Yet, donor countries attending the UNFCCC summit in Copenhagen in December
2009 committed USD 3.5 billion to jumpstart REDD+ schemes, which underlines the importance
of this abatement option. REDD+ could potentially provide significant funding for avoided
deforestation projects. However, funding is only likely to materialize at scale when more developed
countries establish emissions trading systems (also known as cap-and-trade systems) and the
private sector becomes the principal source of REDD financing.
East Kalimantan’s environmentally sustainable development strategy is connected into Indonesia’s
climate change strategy at a national level. President’s Yudhoyono’s pledge to reduce Indonesia’s
total emissions by 26 percent against a business-as-usual trajectory by 2020 will have profound
implications for businesses and economic planners across the country, and nowhere more so than
in the high-emitting provinces such as East Kalimantan. All provinces and districts will be required
to submit plans for capturing reduction opportunities. The DNPI is trying to ensure that a common
approach to environmentally sustainable development strategies is being followed in different
provinces, so that the data and recommendations contained within them can be more easily
incorporated into an overall national Low Carbon Growth Plan.
Summing up across all sectors and all initiatives, East Kalimantan has the potential to
shift to a more climate-compatible development model, which could reduce emissions
in the province by 60 percent and raise GDP growth from 3 to 5 percent per year by 2030.
Turning these aspirations into targets and results will require significant investments in capacitybuilding,
legal enforcement, technology and equipment, deeper engagement with forest-based
communities, and improved spatial planning. Progress in these areas will set the pace of East
Potential CO2e reductions disaggregated to all districts
Berau
Bontang
Bulungan
DRAFT
Abatement by source, MtCO2e 2030
Balikpapan
Kutai Barat
Kutai
Kertanegara
Kutai Timur
Palm oil
Degraded
in-
Yield
Zero
burning land crease
Concession
Water
buyouts mgmt
0.0 0.0 0.0 0.0 0.0
1.5 1.0 0.3 0.0 0.3
0.0 0.0 0.0 0.0 0.0
1.2 0.2 0.2 0.5 0.6
4.7 1.2 0.4 1.9 0.7
3.4 1.9 0.8 2.6 1.8
2.7 3.4 0.8 0.0 0.3
POME
0.0
0.2
0.0
0.2
0.4
0.7
0.7
Agriculture
Zero
burn
policy
Peat
rehab
0.0 0.0
0.6 0.2
0.9 0.3
1.5 0.4
1.9
0.5
4.6 1.3
1.0 0.3
Forestry
RIL 1
0.0
4.7
0.0
2.5
0.1 0.0 0.0 0.1
3.9
2.4
8.7 4.0 1.0 2.3 2.0
1.8
6.3
2.7
3.1
0.3
0.8
2.5
0.5
0.8
0.4
1.7
1.4
0.9
0.0 0.5 0.1 0.0
0.6
2.8
3.2
Oil &
Gas
0.3
-
0.8
0.1
-
1.4
0.2
Coal mining
Avoid Zero Re-
Zero Stop
deforest
2 rehab policy ation Process mining
Peat burn forest-
Flaring, illegal Reclamation
-
0.67 0.9
-
0.34 0.4
1.90 2.4
2.41 3.0
1.39 2.9
-
0.16
-
0.08 0.1
0.46 0.5
0.58 0.6
0.34 0.4
0-1
1-2
2-5
5+
Reduce
Process methane
efficiencyrelease
Total
-
0.05 0.2
-
0.03
0.14 0.2
0.18 0.3
0.10 1.5
-
0.09 0.3
-
0.05 0.1
0.26 0.4
0.33 0.6
0.19 2.8
Total
0.5
16.2
2.6
12.2
33.2
34.5
31.5
Malinau
0.0 0.2 0.1 0.3 0.0
0.2
0.0 0.0
4.7
0.6
0.0
0.0
0.6
-
0.04 0.1
0.01
0.00
0.01
6.8
Nunukan
0.8 1.5 0.2 0.0 2.8
0.2
7.2 2.1
1.5
2.8
4.0
0.4
0.5
-
0.56 0.7
0.13
0.04 0.1
0.08 0.1
25.0
Panajam
Paser Utara
0.2 0.1 0.1 0.4 0.0
0.1
0.0 0.0
2.6
0.8
0.0
0.1
0.4
-
0.30 0.6
0.07 0.1
0.02 0.3
0.04 0.5
6.3
Pasir
1.0 1.8 0.3 0.0 0.1
0.3
0.4 0.1
1.2
2.4
0.2
0.5
1.1
-
0.21 0.3
0.05 0.1
0.02
0.03
9.8
Samarinda
0.0 0.0 0.0 0.0 0.0
0.0
0.4 0.1
0.0
0.0
0.2
0.0
0.1
-
0.06 0.1
0.01
0.00
0.01 0.1
1.0
Tana Tidung
0.0 0.0 0.1 0.2 0.0
0.1
0.0 0.0
0.0
0.9
0.0
0.0
0.2
-
0.02
0.00
0.00
0.00
1.5
Tarakan
0.0 0.0 0.0 0.0 0.0
0.0
0.0 0.0
0.0
0.1
0.0
0.0
0.0
0.0
-
-
-
-
0.1
East
Kalimantan
15.6 11.4 3.3 6.0 6.8
3.1
18.5 5.4
34.0
23.8 10.0 7.7 12.5
2.7
8.11 11.3
2.01
1.56 2.6
2.90 4.8
184
1 Reduced impact logging
2 Includes the use of degraded land (13.9 MtCO2e) and REDD (9.8 MtCO2e) payment schemes
SOURCE: Team analysis