Leuser Public Private REDD Project An Overview - GCF

Leuser Public Private REDD Project 

An Overview 

GCF Conference - Leuser Public Private REDD Project Overview - May 2010 1

Table of Contents 

• Section 1: The Leuser Ecosystem 

• Section 2: Project Strategy 

• Section 3: REDD Project Development 

• Section 4: Investment t Project Development 

• Section 5: Expectations of GCF 


Section 1 

The Leuser Ecosystem 


Leuser Ecosystem: Total Area 2,280,000 ha 

Forest land 1,920,000 ha 


Deforestation: Historical Deforestation 5,500ha/year (3 

MtCO2e) 

Forest land threatened t 49% 


Threats: 

Roads 

Palm oil conversion 

Mining 

Encroachment 

Illegal logging 


Communities: ~690,000 people living inside or adjacent to 

8 ethnic groups 

Some of the poorest communities in Indonesia 


Biodiversity: One of the last places in SE Asia that is of sufficient size and 

quality to maintain viable populations of many rare and charismatic species 

such as tigers, orangutans, rhinos, elephants, and clouded leopard. 


Low Carbon Investment Opportunities: Sustainable timber 

plantations, community agro-forestry, renewable energy, eco- 

tourism 

Extend 

arrow 


Section 2 

Project Strategy 


Integrated Landscape Approach 

• Project “nested” in a provincial wide REDD approach. 

• The financial flows created by carbon credits will be used to fund sustainable 

development and conservation activities. 

• Project aims to address the root cause of deforestation: unsustainable 

approaches to economic development. 

• Holistic land management strategy employed, in line with the Governor’s 

Aceh Green vision, which calls for hard investments in electrification 

projects, agro-forestry and timber plantations as well as soft investments in 

education, healthcare and community work. 

• Aim is to refocus communities neighboring forests away from inefficient 

forest utilization and agricultural practices and employ them in higher value- 

added and ecologically balanced economic activities. 

• This holistic approach is best positioned to address the issues of 

Additionality, Permanence and Leakage. 


Timeline 


Section 3 

REDD Project Development 


REDD Implementation Steps 


Carbon Accounting Updates 

• IPCC Carbon stock estimates – 1,400 million tonnes CO2-e 

• Spatial analysis & forest type stratification in line with IPCC completed 

• Indicative historical deforestation rates determined 

• Leading service providers have defined the baseline and project scenarios, identified 

the complexities posed by deforestation pressures; confirmed a compatible 

methodology that is as close to market ready as possible; selected a business as 

usual reference approach suitable for addressing the deforestation drivers in Aceh and 

developed a clear and definitive list of data parameters to complete the Project Design 

Document (PDD). 

• The full preparation of the baseline will be consistent t with best current international 

ti practice and experience. The service providers identified for this work represent the 

best and most dynamic available in this field. 


• Key outputs and points to consider: 

Carbon Accounting contd. 

• Based on our definition of the project and baseline scenarios, combined with our assessment of the 

methodologies emerging from the Voluntary Carbon Standard double approval process, compatible 

methodologies were found to be: 

‣Methodology for Estimating Reductions of GHG Emissions from Mosaic Deforestation Developed by: 

World Bank BioCarbon Fund 

‣Methodology for Estimating Reductions of GHG Emissions from Frontier Deforestation Developed by: 

Amazonas Sustainable Foundation 

• These methodologies were selected as they met the following key selection criteria: 

‣Allow assessment of both mosaic and frontier deforestation representative of deforestation trends in Aceh 

‣Are in the final stages of the first validation phase and are likely achieve double approval within the next 3- 

6 months 

‣ Accept a forward-looking baseline approach to developing the business as usual baseline map 

• The business as usual reference methodology selected is the Terrestrial Carbon Groups Three Filters approach. 

This meets the key criteria – forward-looking, spatially explicit, regional and national estimates, compatible in 

Indonesia, allows greatest flexibility in data requirements, and appears to be transparent in its application. 

• Some destructive sampling of aboveground biomass pools is required. 

• Currently there are limitations in methodologies for projects that avoid forest degradation 

• A strong focus will be placed on the MRV system. 


Social and Community Assessment Updates 

• Local Acehnese company Mitra Koalisi have conducted a comprehensive Social and Community Assessment. The 

intention of the study is to fulfill the requirements of the CCB standards and to guide project decisions concerning 

community consultation, benefit-sharing and grievance mechanisms 

• Key outputs and points to consider: 

• 50 villages have been sampled across the Leuser Ecosystem. 

• Essential assessment areas: 

1. Social Baseline: What are current levels of wellbeing 

2. Impact from the Project: How will the project affect the 

wellbeing of the affected communities 

3. Impact from the Community: How will current community 

activities affect the success of the carbon project – i.e. 

What are the local drivers of land use and forest change 

4. Community Expectations: what project interventions do 

local communities want and what are most likely to reduce 

deforestation pressures 

• These essential elements will be central to formulating the Leuser Public Private REDD Project in line 

with international requirements, meeting Indonesian government guidance and regulation and partnering 

with the Government of Aceh and others. 


Section 4 

Investment Project 

Development 


Investment Implementation Steps

Leuser Public Private REDD Project An Overview - GCF

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