SABAH REDD+ PREPAREDNESS ROADMAP - NRE REDD+ PREPAREDNESS ROADMAP Prepared by: Frederick Kugan Heidi Henry William WORKSHOP ON MALAYSIA’S REDD+ READINESS PROJECT: 31 July –01 Aug

SABAH REDD+ PREPAREDNESS ROADMAP

Prepared by:

Frederick Kugan

Heidi Henry William

WORKSHOP ON MALAYSIA’S REDD+ READINESS PROJECT: 31 July – 01 Aug 2012

Hyatt Regency, Kota Kinabalu

Outline of Presentation 1. Introduction

2. Sabah’s Journey Towards REDD+

REDD+ Related Initiatives

What have We Learnt Thus Far?

3. The Journey Ahead

Sabah REDD+ Preparedness Roadmap (2011-2015)

4. Pre-requisites for Smooth Journey – Overcoming Speedbumps

5. Conclusion

REDD-plus using IPCC definitions

Conservation

REDD

Forest managementEnhancement of

forest carbon stocks

READINESS “REDDiness”

COP 13 - Bali Action Plan

Bali Action Plan broadened the scope to include the roleof conservation, sustainable management of forestsand enhancement of carbon stocks in developingcountries.

Introduction

COP 15 - Copenhagen Accord

Reducing emissions from deforestation Reducing emissions from degradation Conservation of Carbon Stocks Sustainable management of forests; and Enhancement of forest carbon stocks

Introduction

• We recognize the crucial role of

reducing emissions from

deforestation and forest degradation

and the need to enhance removals of

greenhouse gas emission by forests

and agree on the need to provide

positive incentives to such actions

through the immediate establishment

of a mechanism including REDD+, to

enable the mobilization of financial

resources from developed countries.

• We decide that the Copenhagen

Green Climate Fund shall be

established as an operating entity of

the financial mechanism of the

Convention to support projects,

programme, policies and other

activities in developing countries

related to mitigation including

REDD+, adaptation, capacity

building, technology development

and transfer.


Sabah’s Journey Towards REDD+

Conservation

REDD

Forest managementEnhancement of



Pioneering Carbon Sequestration Projects

INFAPRO

INIKEA

Reduced Impact Logging (RIL) NEES

The Trigger

Sabah Foundation

initiated carbon related

projects:

(1) INFAPRO

(2) RIL (NEES)

(3) INIKEA

1992

Sabah Foundation+Face the Future

Rehabilitate 25,000 ha of degraded

forests

Target (2008-2012): sequester 350,000

tonnes of carbon

Verified under VCS in 2011

500,000 VCUs up for sales!!

1992

Sabah Foundation+New England Electric

Services (NEES)

Offset CO2 from coal power stations

25-45 tonnes of carbon/ha retained after 2 years

of RIL

Up to 90 tonnes of carbon/ha after 40 years

1998

Innoprise+Sow-A-Seed Foundation

Restore 18,500 ha of degraded forests

Potential INFAPRO clone!


Carbon Stock Assessment

Tangkulap FR

Timimbang FR

128 t/ha

109 t/ha

In the agenda Acknowledgement & incorporation of

carbon into the Forest Sector

Development Program

The 9th Malaysia Plan = Carbon

assessments

“Carbon” proposed to be included as

“Forest Produce” under the Forest

Enactment

Deramakot FR

171 t/ha


Ulu Kalumpang FR

Assessment of Carbon at Risks

Ulu Segama-Malua FR

MORE SERIOUS WORKS:

Commissioned study on

Defining Deforestation and

Forest Degradation – Green

Edge Consult

Assessment of carbon at

risks, i.e. Ulu Segama-Malua

FR, Ulu Kalumpang FR

2.2 – 6.2 mil

tonnes of carbon

0.4 – 1.1 mil

tonnes of carbon

What Have We Learnt Thus Far?(1) State’s Forest Reserves (3.6 mill ha)

Carbon Stock ≈ 109 – 171 tonnes / ha

High carbon stock ≈ 567 million tonnes of carbon

However, no threat, no value

Winrock’s Assessments on Pilot Projects

Ulu Kalumpang (0.4-1.1 million tonnes of carbon

at risk = 1.3-4 million tonnes of CO2)

Ulu Segama-Malua (2.2 -6.2 million tonnes of

carbon = 8.2 – 22.6 million tonnes of CO2)

What Have We Learnt Thus Far?Carbon Enhancement Activities

(2) SFM

Forest Management

Plan (FMP)

Key

Elements

Of SFM

HCVF

Forest Zoning

Silviculture

Reduced

Impact

Logging

(RIL)

Forest Restoration

Research shown that the application of SFM

increases the carbon storage in the tropical forest

ecosystems.

Net effect of SFM on a landscape level is

estimated at 54 ton/ha.

Sources of Carbon sequestration

Reduced Harvesting Intensities

Reduced Harvest area

Regrowth due to Silviculture and enrichment

planting

Below ground carbon density

Estimated carbon value:

Production Forest under SFM @ 2.6 million ha

= 140.4 million tonnes

Current market runs low, USD 1.18 – 5.63 /ha,

i.e. USD 65 – 304/ha

Total potential value of carbon is between USD

166 million - 790 million [in theory].

What Have We Learnt Thus Far?

Carbon Enhancement Activities

(3) RIL

The results showed that by implementing RIL, it was possible to retain an extra 25-45 tonnes of carbon/ha

two(2) years after logging, rising to 90 tonnes of carbon/ha after 40 years as a result of improved regeneration.

Research shown that areas implemented with RIL has an additional 34 tonnes of carbon per hectare.

An additional net of 1.87 million tonnes of carbon for the entire 55,083 ha of Deramakot.

Since 2002, RIL has been implemented in over 200,000 hectares of degraded forests.

-

50

100

150

200

250

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

2

Are

a (T

ho

usa

nd

s h

a)

Total Area under RIL (ha)

Year

2011

What Have We Learnt Thus Far?

Carbon Enhancement Activities

(3) Enrichment Planting

INFAPRO: To rehabilitate 25,000 ha of severely degraded

forest through enrichment planting and silviculture to offset

CO2 emissions from atmosphere

During the first commitment period (Kyoto Protocol, 2008-

2012), about 350,000 tonnes of carbon are targeted to be

sequestered from less than 10,000 hectares rehabilitated.

About 35 tonnes/ ha of carbon sequestered.

Up to 500,000 VCUs up for sales!

What Have We Learnt Thus Far?(4) Sabah against the world? Not economically

attractive! Because:

Too small to compete in terms of size

Forest governance well in placed

“Additionality” is low

No real transaction yet

Carbon money if any, just complementary

The Journey Ahead

Sabah REDD+ Preparedness Roadmap

Step 1:

Write the Roadmap

Step 2:

Setting the Stage

Step 3:

Develop REDD+ Implementation

Framework (Statewide)

Step 4:

Strengthening REDD+

Framework

Step 5:

REDD+ Full Implementation

Pre-preparation ReadinessAdvanced

Readiness

Full

Implementation

Sabah REDD+ Roadmap

2011-2012 2011-2014 2015

Strategy: Sub-national / nested approach

The milestones:

• Sabah Carbon Map • State REL, MRV

• REDD+ Policy Strategy

• Benefit-Sharing Mechanism

established.

• REDD+ Performance-based

Payment

•Awareness / Capacity Building / Stakeholders Consultations

Sabah REDD+ Roadmap

Organizational Arrangement

Operational Task Force Technical Task Force

• Sabah Forestry Department (SFD)

• Ministry of Natural Resources &

Environment (NRE)

• Natural Resources Office (NRO)

• Ministry of Tourism, Culture &

Environment

• Lands & Surveys Department (L&S)

• Department of Agriculture (DOA)

• Sabah Parks

• Environment Protection Department

(EPD)

• Drainage & Irrigation Department

(DID)

• State Attorney General

• Fisheries Department

• Economic Planning Unit (EPU)

• Forest Research Centre - (SFD)

• Universiti Malaysia Sabah (UMS)

• Forest Research Institute Malaysia (FRIM)

• Sabah Wildlife Department (SWD)

• Sabah Biodiversity Council (SaBC)

• WWF-Malaysia

• PACOS

• HUTAN

• Borneo Conservation Trust (BCT)

• Malaysia Nature Society (MNS)

• East Malaysia Planters Association (EMPA)

Funding $ources: Rough estimation to build Sabah’s REDDiness = RM 8 million

Secured Funding:

1. WWF-Malaysia = RM 300,000

2. EU Delegation to Malaysia = EU 4 million

Other Partners / Potential Partners

1. Agency Remote Sensing Malaysia (ARSM)

2. Ministry of Natural Resources & Environment (NRE)

3. UNDP-GEF

4. USAID (LEAF)

MORE REDD+ Related Initiatives

Other Carbon Related Initiatives

EU REDD Programme

Community based project

EU 4 million (2013-2016)

261,000 ha

Financing sustainability in multi-

purpose use forest landscapes

UNDP-GEF Kalabakan Gunung-

Rara Project

Research on the impacts of

plantations to forests

SAFE Project

NEW & UPCOMING PROJECTS:

(1) SAFE Project (2010)

(2) UNDP-GEF Kalabakan Gunung-Rara

Project (2012)

(3) EU REDD Programme (2013)

PRE-REQUISITES FOR SMOOTH JOURNEY

Overcoming speed bumps(1) Harmonization of State & National Policies on Forest, Carbon & Climate Change

Maintain at least 50% of Country’s landmass under forest cover

Reduce emissions by up to 40 per cent in 2020 compared to 2005 levels

State vs National priorities

Demands closer look at the policy and approaches at both State & National level

National REDD+ Strategy is favourable


Overcoming speed bumps(2) Recognize REDD+ sub-national approach

Source: Realising REDD+, National and Policy Option, CIFOR


Overcoming speed bumps(3) Aligning both State & National Inventories for the Purpose of Forest Carbon

Accounting

A Note of Cooperation was entered between the Department and ARSM to develop Sabah forest cover

map during the launching of the recent International Conference on Sabah HoB Green Economy &

Development: Engaging Business for Environment


Overcoming speed bumps(4) Enhance Inter-Agency Coordination


Overcoming speed bumps(5) Intensify Capacity Building

Standard requirements of the VCS & CCBA

Environment & Social Safeguards

Monitoring, Reporting & Verification (MRV), i.e. Reference Emission Level (REL)

Financial Architecture


Overcoming speed bumps

(6) Foster Multi-Stakeholders Participation

• Series of stakeholders consultation conducted in developing the REDD+ Strategy for Sabah

• To ensure that all voices are heard, i.e. government agencies, NGOs, the private sectors, and

local communities


Overcoming speed bumps(7) Funding and Leading the Roadmap

Step 1:

Write the Roadmap

Step 2:

Setting the Stage

Step 3:

Develop REDD+ Implementation

Framework (Statewide)

Step 4:

Strengthening REDD+ Framework

Step 5:

REDD+ Full Implementation

Rough estimation to build Sabah’s REDDiness = RM 8 million

Secured Funding:

1. WWF-Malaysia = RM 300,000

2. EU Delegation to Malaysia = EU 4 million

Other Partners

1. Agency Remote Sensing Malaysia (ARSM)

2. Ministry of Natural Resources & Environment (NRE)

Potential Partners

1. UNDP-GEF

2. USAID (LEAF)


Overcoming speed bumps(8) Be Innovative & Go for Quality Carbon

Sustainable Forest Management & Conservation Project Area at Ulu Segama, Malua & Ulu Kalumpang Forest Reserves

Conservation

REDD

Forest management

Enhancement of



Overcoming Speed Bumps(9) Fast Tracking Markets Development & Benefit Sharing Mechanism

• 500,000 VCUs up for sales

• Sensitizing and promoting local markets

• Create own market in the future?


Overcoming speed bumps(10) Political Support & Commitment

CONCLUSION

Sabah is on the right track to capitalize on the

potential REDD+ money, with 500,000 VCUs

up for sales!

Real transaction of carbon money is yet to take

place.

The Sabah REDD+ Roadmap is a guidance to

advance the REDD+ Implementation in the

State, in line with the National Development.

More pilots to be implemented.

Success relies heavily on the measures to

address all the pre-requisites.

Sub-national approach is the most pragmatic

way forward and should be supported to all.

The bottom line is that the State wants to be

rewarded for keeping its forests and to prove to

the sceptics that money does grow on trees

standing!

Thank You

Documents

SABAH REDD+ PREPAREDNESS ROADMAP - NRE REDD+ PREPAREDNESS ROADMAP Prepared by: Frederick Kugan Heidi Henry William WORKSHOP ON MALAYSIA’S REDD+ READINESS PROJECT: 31 July –01 Aug