The Rimba Raya Biodiversity Reserve REDD Project

conversion for urban, rural, and infrastructure development; andin the case applicable to Rimba Raya, national land plans toreduce the forest estate and convert it to industrial-­‐scaleproduction of commodities such as soybeans, pulpwood12, andoil palm. Other forms of planned deforestation could includedecisions by individual landowners or community groups, whoseland is legally zoned for agriculture, to convert their forest(s) tocrop production or biofuel plantations. According to the VCS-­‐Guidance for AFOLU Projects, these planned deforestationactivities would be outlined in land planning or managementdocuments, and could therefore be readily verified under theVCS. Such is the case for Rimba Raya.National Perspective.Indonesia is currently the world’s largest crude palm oil (CPO)producer, and the country is expected to produce 19.5 milliontons this year. The Agriculture Ministry has stated that oil palm isthe country’s main driver of economic growth, indicating that itintends to issue a decree this year opening millions of additionalhectares of peatland for oil palm development (Simamora2009b).In Rimba Raya, the majority of the project zone (total projectmanagement area) has been proposed by the provincialgovernment to be gazetted for conversion to non-­‐forestagricultural industrial estates. In response, oil palmconcessionaires applied for and were granted 5 concession areas,which comprise the entire project area (carbon accounting area)by the local regency and the Provincial government.Overview: The Threat of Palm Oil to Indonesian ForestsTo provide the appropriate context for a discussion of project‘additionality’, it is useful first to review the relationship betweenoil palm development and forest management at the national,provincial and local levels.Indonesia is the world’s largest producer of crude palmoil (19.5 million tons per year) and production is centeredin Central Kalimantan, which has the world’s highest rateof deforestation (3.5-­‐5% forest loss per year).At the same time, Indonesia has an average annual rate ofdeforestation of 2%, one of the highest in the world, with CentralKalimantan deforestation rates that are double national figures98