East Kalimantan Environmentally Sustainable Development Strategy

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Utilizing concession buyout schemes could provide 9.8 MtCO2e in abatement. The use
of standalone concession buyout schemes is the last option due to its high costs. This approach
targets land owners or concessionaires and pays them for not starting economic activities, such
as converting forests into pulpwood plantations. Without providing a substitute, such as degraded
land or improved productivity, concessions holders may need to be compensated for the
opportunity cost of the lost plantation (assuming all proper permits were received). This approach
comes at relatively high cost, approximately USD 9 to 14 per avoided tCO2e in the case of Acacia
and even more for more valuable woods like Teak or Meranti. A compensation scheme that only
covered historical costs and expenses would result in much lower cost per ton of abated carbon,
Improving yields in timber plantations could result in less expansion into forest, but only
if coupled with other safeguard measures. Growth rates within East Kalimantan’s HTIs are
below best practice yields achieved in other parts of Indonesia. In 2008, harvesting targets for
pulpwood plantations according to the Provincial Forest Ministry (Dinas Kehutanan) indicate an
annual growth rate of approximately 20 cubic meters per ha. Best practice examples in Sumatra
achieve annual growth rates for Acacia mangium of 40 cubic meters per ha. Given differences
in soil quality, however, a more conservative target growth rate of 25 to 30 cubic meters per ha
seems more feasible. Increasing productivity would allow for increased production with less forest
conversion: approximately 150,000 ha less than in the business-as-usual scenario and result in
avoided emissions of 120 MtCO2e over a period of 20 years.
Increasing growth rates can also be accomplished by using intensive silvicultural methods like
thinning, better planting techniques, a better selection of seeds, and improved nursery techniques
for seedlings. However, productivity improvements alone would not necessarily lead to less
HTI expansion; in fact, it could make the sector more attractive and increase investment and
expansion. Increased productivity would need to be coupled with additional measures to protect
the available forest, for example REDD+ payments if reduced deforestation could be proven.
12.5 MtCO2e of abatement is possible from reforestation and forest rehabilitation.
Degraded forests can be reforested and rehabilitated with new plantings and result in increased
carbon sequestration. There is approximately 1.5 million ha of slightly critical land (agak kritis)
located within the forest estate; these areas have forest cover of 50 to 60 percent, and thus should
not be used for land swaps for timber concessions but instead fully reforested. We have already
launched a One Man Five Tree replanting program to engage the whole province in reforestation as
well as raise awareness. To achieve the 12.5 MtCO2e abatement potential, approximately 35 to 40
million trees need to be planted each year to restore the degradation caused by non-sustainable
logging practices.
DRAFT
Reforestation and forest rehabilitation only results in carbon sequestration if the
replanted lands are set aside for conservation. Timber plantations are considered carbon
neutral as nearly all carbon sequestered as trees grow is lost once they are harvested; thus
replanting for timber plantations yields no permanent abatement of emissions. Reforestation
and forest rehabilitation comes at a relatively high cost of approximately USD 2 to 5 per tCO2e.
However, fostering natural regeneration (if the remaining trees provide enough potential) by
weeding and other techniques to increase the viability of tree seedlings could reduce the costs
substantially and should be the preferred option for rehabilitation wherever possible.
Water management and peatland rehabilitation initiatives can produce 17 MtCO2e of
abatement. The goal is to minimize drainage in logging and timber concessions on peatland
to 50 to 70 cm below the peat surface. High growth rates of Acacia are possible at this level; any
further drainage would result in higher emissions from peat decomposition, while lower drainage
would result in decreasing yields. Drainage to 50 to 70 cm below the surface also allows for the
transportation of pulpwood in the drainage channels. Proper water management requires an
assessment of the hydrological conditions around the peat domes and the construction of dams
and sluice gates to regulate the water level to allow transportation of felled timber. In addition,