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East Kalimantan Environmentally Sustainable Development Strategy

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35<br />

The greatest expansion is expected to happen in the 3 Kutai districts and<br />

Pasir<br />

Current and future area of oil palm in <strong>East</strong> <strong>Kalimantan</strong> under a<br />

business-as-usual scenario<br />

ha<br />

400,000 1,254,595<br />

464,189<br />

HGU 1 - planted<br />

390,406<br />

HGU - approved<br />

SOURCE: Dinas Perkebunan Kaltim, Expert interviews, team analysis<br />

Additional<br />

expansion 1<br />

1 Based on share of current plantation area, approved expansion and already issued location permits<br />

BAU oil palm<br />

area 2030<br />

Emission reduction activities in the oil palm sector should be<br />

focused around 5 major initiatives<br />

Zero burning<br />

policy<br />

Degraded<br />

land<br />

Peatland water<br />

management<br />

Yield<br />

improvements<br />

Concession<br />

buyouts<br />

Malinau<br />

Tana Tidung<br />

Panajam Paser Utara<br />

Bulungan<br />

Nunukan<br />

Berau<br />

Pasir<br />

Kutai Barat<br />

Kutai Kertanagara<br />

Kutai Timur<br />

Description Abatement 1<br />

▪ Implement zero burning policy along with strict and visible<br />

enforcement<br />

15.6 Mt CO<br />

▪ Increase fire fighting capacities within the province by hiring fire<br />

2<br />

e<br />

rangers and provision of appropriate technology<br />

▪ Promote use of degraded land (lahan critis) for future expansion<br />

oil palm<br />

11.4 Mt CO<br />

▪ Arrange land swaps of already granted concessions on forested<br />

2<br />

e<br />

land with equal sized plots of degraded land<br />

▪ Implement water management within active oil palm concessions<br />

▪ Protect remaining deep peatland in Nunukan, as the majority of 7.1 Mt CO 2<br />

e<br />

undisturbed deep peatland is located there<br />

▪ Initiate and implement extension services in cooperation with<br />

supportive private sector players to increase yield of oil palm with<br />

3.3 Mt CO<br />

activities focusing on smallholder farmers<br />

2<br />

e<br />

▪ Higher yields will help to reduce pressure on forest areas<br />

DRAFT<br />

▪ Introduce a REDD payment scheme to compensate concession<br />

holders for forgone revenues for not starting an economic activity<br />

▪ Apply REDD when the use of degraded land is no alternative<br />

▪ For the biggest effect on emission abatement, REDD activities<br />

should focus on peatland or other areas with high carbon value<br />

3.2 Mt CO 2<br />

e<br />

Exhibit 15<br />

Exhibit 16<br />

1 Maximum technical annual abatement in 2030<br />

2 Reduced emissions through avoided deforestation, assuming adequate funding from voluntary carbon markets or international bi or multilateral funding<br />

SOURCE: Team analysis

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