The Rimba Raya Biodiversity Reserve REDD Project

Table 37. Assessment of risk factors falling into the project category of Reducing Emissions from Deforestation and DegradationRisk Factor %Land Ownership / Land Management TypeLand owned by private or public forestconservation organization with a goodtrack record in forest conservationactivities and able to obtain and enforcenationally recognized legal protection ofthe landRiskRating5% LowInfiniteEARTH Rimba-­‐Raya ProjectLand is owned by central government. InfiniteEARTH is seeking a license for ecosystemrestoration that is valid for 60 years with an option for renewal for an additional 30 years.InfiniteEARTH has a partnership with Orangutan Foundation International (OFI) to undertakeforest conservation activities. OFI has a long history of conservation, forest protection andorangutan habitat management activities in the adjacent National Park, Tanjung Puting, to thewest.Technical Capability of Project Developer / ImplementorNo previous experience in the design andimplementation of activities that mayensure the longevity of carbon benefits.15% MediumThis is InfiniteEARTH's first project as an organization. Several members of the staff ofInfiniteEARTH have extensive experience in designing and implementing several elements ofthe project activities. Additionally, InfiniteEARTH has the direct support of carbon forestryprofessionals with experience in the design of activities leading to the longevity of carbonbenefits.Net revenues/financial returns from the project to ALL relevant stakeholdersLower than pre-­‐project or lower thanalternative land-­‐uses10% LowIt is reasonably assumed that alternative land-­‐uses for the Rimba Raya area would be theconversion of the area for growing and harvesting palm oil. While Palm Oil produces high netrevenues and financial returns for the palm oil company and local government, benefits forlocal communities are often questionable.With respect to the Project Developer, in early years with a low $/tCO 2 e price of around $5,revenues will likely be less than alternative land uses. It is approximated that after an increasein price to approximately $15/tCo 2 e, the project could produce higher returns than alternativeland uses for Crude Palm Oil. Local communities, who are often temporarily hired to operateas the main deforestation agents, will derive a higher financial benefit starting from the earlyyears of the project. Local and National governments are expected to derive higher longer-­termvalue from the project than alternative land uses.229