East Kalimantan Environmentally Sustainable Development Strategy

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8 East Kalimantan intends to pioneer a new development pathway that reconciles economic growth with significant reductions of greenhouse gas emissions. This report evaluates the potential for environmentally sustainable development in East Kalimantan. It first outlines a fact-based assessment of current and likely future GHG emissions for the province and then considers the potential actions to reduce emissions, the relative volume of each of these reduction measures, and an indication of costs (or gains) per measure. The report then identifies how the province can move to higher value-added activities and new low-carbon sectors so that its future growth leaves a smaller carbon footprint. Recognizing that a degree of climate change is already locked in by recent CO2e rises, and despite current global action, the strategy also explores adaptation measures, which aim to make the province more resilient to climate change. East Kalimantan hopes to become a showcase not only in Indonesia but globally of how to combine carbon abatement with economic growth. We hope to inspire others to recognize the potential for environmentally sustainable development. Neither DNPI nor the Government of East Kalimantan underestimate the challenges in making the shift to such a new model of development. As in other parts of Indonesia, the underlying drivers of emissions are strong, entrenched, often based on highly profitable activities, and abetted by weaknesses in the country’s nascent institutions. Yet the journey must begin, step by step. President Yudhoyono has taken the first steps with his leadership and commitments. The Governor of East Kalimantan, H Awang Faroek Ishak, has taken the next step committing East Kalimantan to a more sustainable future. This strategy marks another step forward. DRAFT
9 Acknowledgements The DNPI and the Government of East Kalimantan would like to express their appreciation to the Climate Land Use Alliance and the Norwegian Government for partially funding this effort to develop an environmentally sustainable development strategy for the Province of East Kalimantan. The DNPI and the Government of East Kalimantan would like to acknowledge Daemeter Consulting, McKinsey & Company, Mulawarman University, The Nature Conservancy (TNC), and The World Wildlife Fund (WWF) for their analytical support in connection with this study. The DNPI and the Government of East Kalimantan would also like to thank the several hundred government, private company, and NGO personnel who made important contributions to this work in various workshops and meetings. While the data and input came from many stakeholders and information sources, the conclusions and results set forth in this report are exclusively those of the DNPI and the Government of East Kalimantan. DRAFT
Page 1 and 2: East Kalimantan Environmentally Sus
Page 3 and 4: 3 East Kalimantan Environmentally S
Page 5 and 6: 5 Contents Preface 7 Acknowledgemen
Page 7: 7 Preface A broad global consensus
Page 11 and 12: 11 Executive summary East Kalimanta
Page 13 and 14: 13 1. The development of coal-bed m
Page 15 and 16: DRAFT 15
Page 17 and 18: 17 Kaltim Green Program The Governm
Page 19 and 20: 19 1. The context for East Kalimant
Page 21 and 22: 21 This resource development pathwa
Page 23 and 24: 23 Both Berau and Malinau are large
Page 25 and 26: 25 In the BAU scenario, CO 2 e emis
Page 27 and 28: 27 TOP 5 ABATEMENT INITIATIVES Top
Page 29 and 30: 29 Kalimantan’s shift to a climat
Page 31 and 32: 31 The sector’s 57 MtCO2e of net
Page 33 and 34: 33 Outside of the sector’s need f
Page 35 and 36: 35 The greatest expansion is expect
Page 37 and 38: 37 improving water management in on
Page 39 and 40: 39 Including financial transfers fo
Page 41 and 42: 41 after the identified abatement m
Page 43 and 44: 43 The Case of Oil Palm Permits and
Page 45 and 46: 45 Emissions from the forestry sect
Page 47 and 48: 47 across Kalimantan in 1997 and 19
Page 49 and 50: 49 Utilizing concession buyout sche
Page 51 and 52: 51 Pilot Projects Pilot projects ha
Page 53 and 54: 53 GDP Potential The economic decli
Page 55 and 56: 55 Downstream manufacturing would i
Page 57 and 58: 57 downstream manufacturing as it w
Page 59 and 60:
59 Swidden agricultural practiced b
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61 Although East Kalimantan has far
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63 Reaching average national yields
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65 farmers . We have identified sev
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67 Many mining operations are locat
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69 Unlike timber or oil palm planta
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71 exploration and production conce
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73 The Economic Opportunity of Post
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75 Entering downstream value chain
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77 Current Context The oil and gas
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79 granted in 2008-2009 and contain
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81 Emission from flaring is declini
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83 Satellite images can help monito
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85 Under business as usual, relativ
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87 BERAU Berau is the third largest
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89 350,000 ha of Kutai Timur is cat
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91 substantial natural resource ext
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93 Borneo conservation area as well
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95 agricultural processing. As Pena
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97 Range of climate related risks t
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99 predict increased precipitation
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101 In addition to the refinery and
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103 The greatest economic risks fro
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105 change issues. In December 2009
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107 Proposed BFCP governance and ma
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109 the lack of a strong system, th
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111 Carbon Accounting, Standards, a
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113 EXAMPLE INITIATIVES REQUIRING C
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115 for example, includes represent
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DRAFT 117
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119 Sources • 2010, Kesiapan Kali
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121 • Badan Perijinan Dan Penanam
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123 • Daniel Murdiyarso et al, Me
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125 • Marcus Colchester et al, Pr
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127 • Yosep Ruslim et al, STUDY O
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East Kalimantan Environmentally Sustainable Development Strategy

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