03 A03 Marubeni IndoneseiaFSReportingMeeting

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    GHG reduction project through forest preservationin peat land in Central Kalimantan

    February 21, 2013

    Marubeni Corporation

    Ministry of Forestry,

    Indonesia

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    1. Project Overview

    2. Progress and Project Implementation Time Frame

    3. Reference Scenario

    4. MRV Methods and Field Survey

    5. Estimation of Net Emission Reductions

    6. Social Safeguards

    7. Environmental Safeguards

    8. Scale of Investment

    Context

    2

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    1. Project Overview

    Location

    Concession type

    Peat forest in Kabupaten

    Kotawaringin Timur and

    Katingan, Central Kalimantan

    (203,570 ha)

    Ecosystem Restoration Concession (ERC)

    Potential concession owner

    PT. Rimba Makmur Utama

    Local partners in Indonesia

    Ministry of Forestry, Mazars Starling Resources,

    Yayasan Puter Indonesia

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    2. Progress and Project Implementation Timeframe

    4

    FS 2012

    1. Land cover stratification

    2. Full carbon stock analysis

    3. Estimation of emission

    factors and net emission

    reductions

    4. Development of

    participatory community

    mapping5. Development of

    sustainable agroforestry

    systems and land

    husbandry practices

    6. Jurisdictional Nested

    REDD+

    7. FS review and

    consideration on theproject strategy through

    the experts meeting

    FS 2011

    1. Analysis of current situation

    2. Development and testing of

    a carbon MRV methodology

    and monitoring plan based

    on the existing VCS

    methodology

    3. Methodology design

    document (MDD)development

    4. Social safeguards

    5. Environmental safeguards

    6. Consideration of REDD+

    jurisdictional and nested

    approach

    7. Feasibility assessment /

    investment structure andexamination of legal/tax

    aspects

    8. Experts meeting

    FS 2010

    1. Analysis of current

    situation

    2. Formulations of REDD+

    project plans

    3. Investigation of MRV

    applicable methodologies

    4. Formulation of REDD+

    project schemes5. Economic profitability

    analysis of REDD+

    projects

    6. Comparisons of MRV

    methodologies in experts

    group discussion

    7. Issues/Countermeasures

    Site selection Methodologydevelopment

    Testing andImplementation

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    In 2011, we made Methodology Design Document (MDD) for the Joint

    Crediting Mechanism (JCM) including measuring the peat, the

    belowground water level, forest biomass and so on.

    Our Past Feasibility Study (F/S) in 2011

    Forest Type Carbon PoolsCarbon Stock

    (ton/ha)

    Ex-Burnt

    Secondary ForestStand (above & belowground-

    root) 24.54

    Understorey 14.52

    Litter 12.28

    Necromass 6.22

    Peat 596.80

    Total 654.36

    Logged-over

    Secondary ForestStand (above & belowground-

    root) 51.01

    Understorey 6.83

    Litter 16.89

    Necromass 2.72

    Peat 3103.50

    Total 3180.93

    Primary Forest Stand (above & belowground-root) 101.90

    Understorey 6.15

    Litter 17.99

    Necromass 3.22

    Peat 3295.09

    Total 3424.36

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    O Consideration on Social / Environmental safeguard for REDD+ project

    O Consideration on the pre-national and national nested approach on JCM

    O Consideration on economic feasibility, investment structure, legal & accounting

    issues

    Our Past Feasibility Study (F/S) in 2011

    In addition to the development of the MRV methodologies for JCM,

    we implemented following activities.

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    Objectives of Feasibility Study in FY2012

    O To analyze the full carbon stock amount in the project site

    O To estimate the net GHG emission reduction amountO To develop the community mapping in the project site and the sustainable agroforestry

    systems and land husbandry practices.

    F/S members

    ITTO(International Tropical

    Timber Organization)

    Ministry of

    Economy, Trade

    and Industry

    Commission

    Ministry ofForestry in

    Indonesia

    Hokkaido University

    PT. Mazars Bali (Starling Resources)

    Yayasan Puter Indonesia

    Verified Carbon Standard

    Recommission Re-recommission

    Outsourcing

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    3. Reference Scenario

    Analysis of land cover and land cover changes

    Calculation of emission factors in each forest stratification

    Calculation of net emission reductions

    According to MDD:

    Option a) Legally approved conversion rate

    Option b) Historical conversion analysis in a reference region

    Option c) Conservative Estimate of a conversion rate based on literature review

    Methodology:

    Baseline deforestation rate in Central Kalimantan from

    1985 - 2010:

    Average 0.397% per year

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    4. MRV Methods and Field Survey

    The design of a nested sampling plot

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    5. Estimation of Net Emission Reductions

    Net Emission Reductions (NERs) =

    (Emissions from forest fires + Emissions from logging) natural forest regeneration

    No. Ecosystem Types based on Stratification AverageBiomass

    (tonnes/ha)

    1. Disturbed High Density, Secondary freshwaterswamp forest

    94.238

    2. Disturbed high density, Secondary peat swampforest

    126.454

    3. Intact low density, primary peat swamp forest 150.330

    4. Intact medium density, primary peat swamp

    forest

    139.736

    5. Intact high density, primary peat swamp forest 185.905

    6. Heath, non forest 68.464

    7. Disturbed high density, secondary heath forest 116.692

    8. Non forest, freshwater swamp 45.783

    (100.717,07tonC/year + 231.368,80 tonC/year) - 40.858,70 tonC/year

    = 291.227,17 tonC/year

    Emission factors

    estimated from

    land use change

    Example:

    From Primary PSF

    high density to

    Secondary PSFlow density

    -134.33 tonC/ha

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    6. Social Safeguards

    Socio-economic baseline studies

    Community mapping Agroforestry system development

    Improved soil management systems

    ConsultationParticipatory

    mapping

    Communitymap

    Agroforestry

    system

    development

    Soil

    management

    training

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    7. Environmental Safeguards

    Katingan Peat Swamp Forest hosts

    2.4 3.7 orangutans per km2

    Morrogh-Bernard, Helen (2008). Wildlife Research Group, the Anatomy

    School, University of Cambridge, Cambridge , UK.

    PT RMU

    The Clouded Leopard

    (Neofelis nebulosa)

    Rhinoceros Hornbill

    (Buceros rhinoceros)

    Orangutan(Pongo pygmaeus)

    Katingan supports the sixth largest

    population of orangutans in the world

    (Singleton et al., 2004),

    Areas used as habitats for viable population of species

    which are threatened, restricted ranged or protected

    (results from a rapid HCV 1.3 assessment)

    Source: Ministry of Economy, Trade and Industry Japan. (2012). Methodology Design Document for

    Reducing Emissions from Deforestation and Degradation of UndrainedPeat Swamp Forests in Central

    Kalimantan, Indonesia.

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    Thank you for your attention!