East Kalimantan Environmentally Sustainable Development Strategy

47
across Kalimantan in 1997 and 1998 to be in the range of USD 3 to 5 billion. 14 In addition, fires
damage the environment as well as the health of our people, leading to high levels of respiratory
problems and indirect costs.
Counteracting these emissions, East Kalimantan’s forests are a major source of carbon
sequestration (or carbon sink). Based on different scientific publications and growth rate
assumptions published by the Ministry of Forestry, it is estimated that East Kalimantan’s secondary
forests and timber plantations are sequestering 37 MtCO2e annually at present, of which
approximately 24 MtCO2e is sequestered in natural secondary forests.
In a business-as-usual scenario (EXHIBIT 25) net emissions from forestry will grow from
45 to 71 MtCO2e by 2030. Emissions from forest degradation within logging concessions will
continue at roughly the same pace as will emissions from the continued conversion of forests to timber
plantations. Once drained, peatlands continue to degrade over many years, and so it is expected that
emissions from peat decomposition as a result of drainage will rise and the damage from fires will also
increase in newly opened up peatland. In addition, absorption from East Kalimantan’s secondary
forests and timber plantations will be reduced to only 19 MtCO2e by 2030 as the overall size of the
forest area decreases and timber plantations reach the end of their rotation cycle.
GHG emissions from the forestry sector are expected to
increase in a business-as-usual scenario
Current and future GHG emissions from the
forestry sector
MtCO2e
11
45
13
PRELIMINARY
DRAFT
34
24 24 24
-37
2010
0
0
+2% p.a.
12
69
16
34
-18
2020
SOURCE: BPS Kaltim; WWF Indonesia, Dinas Kehutanan Kaltim, Departemen Kehutanan Indonesia, Team analysis
1
0
13
71
17
34
-19
2030
2
1
Others
Fire
Peat decomposition
Degradation
Deforestation
Absorption
Largest drivers of
emissions are
deforestation and
degradation,
however changes in
emissions are
primarily driven by
the decreasing
absorption capacity
of East Kalimantan’s
forests
Exhibit 25
Abatement Potential
The forestry sector has the potential to become a net carbon sink over time. The forestry
sector is unique; its abatement potential is larger than its estimated future gross emission
levels. This abatement potential consists of the implementation of reduced impact logging in
the production forest (HPHs), better water management and rehabilitation of peatland, and
reforestation (EXHIBIT 26).
14 World Resource Institute (2001) – State of Forests: Indonesia