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Kalimantan Forests and Climate Partnership (KFCP) Design ...

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which government-to-government activities on REDD in Indonesia will be implemented. This places the<br />

Governments of Indonesia (GoI) <strong>and</strong> Australia (GoA) firmly as partners in directing <strong>and</strong> benefiting from<br />

the activities that the Facility will undertake. All activities delivered through the Facility aim to reach the<br />

overarching goal of IFCI, which is to demonstrate that REDD can be part of an equitable <strong>and</strong> effective<br />

post-2012 global outcome on climate change. The <strong>KFCP</strong> is a financially <strong>and</strong> technically significant part<br />

of the Facility.<br />

1.2 KALIMANTAN FORESTS AND CLIMATE PARTNERSHIP OVERVIEW<br />

<strong>KFCP</strong> Goal: to demonstrate a credible, equitable, <strong>and</strong> effective approach to reducing greenhouse<br />

gas emissions from deforestation <strong>and</strong> forest degradation, including from the degradation of<br />

peatl<strong>and</strong>s, that can inform a post-2012 global climate change agreement <strong>and</strong> enable Indonesia’s<br />

meaningful participation in future international carbon markets.<br />

As the first demonstration activity under the IAFCP—the <strong>Kalimantan</strong> <strong>Forests</strong> <strong>and</strong> <strong>Climate</strong> <strong>Partnership</strong>—<br />

the Governments of Indonesia <strong>and</strong> Australia will work in partnership to pursue multiple objectives<br />

intended to demonstrate REDD-related activities at a scale that will achieve development results <strong>and</strong> cobenefits<br />

while also generating knowledge that can applied elsewhere in Indonesia <strong>and</strong> used to inform<br />

international discussions on REDD. The <strong>KFCP</strong> is intended to be a learning activity in which technical,<br />

scientific, <strong>and</strong> institutional innovations are tested, refined, <strong>and</strong> communicated to add to the body of<br />

REDD knowledge <strong>and</strong> experience. The <strong>KFCP</strong> goal is stated below. The Objective Tree for the <strong>KFCP</strong><br />

(Figure 2) indicates its goal, purpose, four components, <strong>and</strong> supporting outputs to achieve REDD-related<br />

results. 1 The four components correspond to the key aspects of REDD: 1) reducing greenhouse gas<br />

(GHG) emissions through incentives to local people <strong>and</strong> technical means; 2) developing methods <strong>and</strong><br />

capacity to measure <strong>and</strong> monitor GHG emissions; 3) developing <strong>and</strong> testing equitable <strong>and</strong> practicable<br />

payment mechanisms to channel financial payments to those people <strong>and</strong> organisations that contribute to<br />

achieving emissions reductions, <strong>and</strong> 4) building institutional <strong>and</strong> technical readiness on the part of local<br />

government <strong>and</strong> villages to implement REDD on a sustainable basis.<br />

The <strong>KFCP</strong> design document is divided into sections that address the following aspects of the design:<br />

Section 2: introduces information on the design process, Indonesian <strong>and</strong> Australian government<br />

REDD policies <strong>and</strong> programs, international context for REDD, an overview of the <strong>KFCP</strong> design,<br />

<strong>and</strong> a description of relevant GoI <strong>and</strong> donor programs;<br />

Section 3: explains the implementation strategy <strong>and</strong> provides detailed description of the design<br />

of the four components;<br />

Section 4: describes the structure <strong>and</strong> process of <strong>KFCP</strong> management <strong>and</strong> partnership<br />

coordination;<br />

Section 5: discusses compliance with AusAID policies <strong>and</strong> approaches to cross-cutting issues;<br />

Section 6: describes approaches to risk management <strong>and</strong> sustainability;<br />

Section 7: describes the framework for monitoring, evaluation, <strong>and</strong> knowledge capture;<br />

Section 8: discusses <strong>KFCP</strong>‘s current budget <strong>and</strong> the strategy for scaling up if more funds become<br />

available; <strong>and</strong><br />

Attachments: 12 attachments provide details on the background <strong>and</strong> technical approach.<br />

The <strong>Kalimantan</strong> <strong>Forests</strong> <strong>and</strong> <strong>Climate</strong> <strong>Partnership</strong> is one of the first large-scale REDD demonstration<br />

activities in Indonesia <strong>and</strong> the first in tropical peatl<strong>and</strong> anywhere in the world. L<strong>and</strong> clearing <strong>and</strong> fires in<br />

Indonesia‘s peatl<strong>and</strong>s are a major source of global GHG emissions because these ecosystems contain<br />

very high carbon stocks, mostly in belowground biomass. Exposed peat dries rapidly, resulting in<br />

oxidation of the organic matter, <strong>and</strong> creating a serious threat of fire in dry periods. Halting peatl<strong>and</strong><br />

drainage, along with stopping or reversing degradation/deforestation of peat swamp forest, offers great<br />

potential for emission reductions.<br />

The <strong>KFCP</strong> will work to contribute to REDD in many areas, including:<br />

1<br />

The <strong>KFCP</strong> goal has been divided into a goal <strong>and</strong> purpose statement in keeping with st<strong>and</strong>ard practice.<br />

2 KALIMANTAN FORESTS AND CLIMATE PARTNERSHIP (<strong>KFCP</strong>) DESIGN DOCUMENT

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