The Papua REDD Project

About

New Forests is developing a forestry carbon project in Papua, Indonesia, aimed at reducing emissions from

deforestation and degradation (REDD). The Papua Project comprises two sites in the lowland tropical

rainforest regions of the province covering more than 225,000 hectares. The sites have been designated as

conversion forests in the provincial government’s spatial land use plan. Surveys for oil palm and mining and

some logging at one site has already taken place. The Papua Project estimates it will deliver verified

emission reductions in the region of 20-25 million metric tonnes of CO2e over the first 10 years of the

project via avoided deforestation.

New Forests will seek certification under the Voluntary Carbon Standard (VCS) and Climate, Community and

Biodiversity Alliance (CCBA) Standards to ensure the creation of high-quality carbon credits with

environmental and social benefits. These credits will be sold on the voluntary market with carbon revenue

used to endow a charitable foundation based in Papua. Additional revenue will be shared among levels of

government and private project investors.

Partnership

The Papuan Provincial Government signed a Memorandum of Understanding with New Forests to proceed

with the development of a REDD project in the region in May 2008. Since that time, New Forests has been

working with local stakeholders, NGOs, government representatives and an Indonesian partner organization

(Emerald Planet) to establish technical, financial and social project parameters. Working with all levels of

government and local communities, New Forests hopes to establish a model for forest conservation that

delivers conservation and economic development outcomes, providing an alternative to agribusiness

conversion that is advancing in other parts of the province.

Project Sites The Papua Project includes two sites.

Mamberamo: Located in northern Papua, the

114,750 hectare Mamberamo project site is part of

the 8 million hectare Mamberamo Basin,

comprising tropical lowlands, floodplains, swamp

forests, freshwater marshes and lakes. The

Mamberamo Basin has an extremely low population

density (estimated at just 12,000 inhabitants) and is

more than 95% forested.

Mimika: The Mimika site of 111,344 hectares is

located in southern Papua between a large mining

operation and the Lorentz National Park. Mimika

has been strongly influenced by the presence of the

mining company PT Freeport Indonesia, which has operated in the region for decades. The tailings from the

mining operation comprise one of the site’s boundaries. Conversion for palm oil and logging operations are

occurring in concession areas close to the proposed Mimika site.

Deforestation Drivers The primary deforestation driver in the province is logging of natural forest for conversion to agriculture, in

particular oil palm plantation. Significant areas of Indonesia have already been converted to oil palm

The Mamberamo and Mimika project sites are marked on the map

above of the island of New Guinea, the western half of which is the

provinces of West Papua and Papua, Indonesia.

plantations and some predictions are that over 10 million hectares could be established in biofuel crops by

2015. Both project sites are in areas classified as conversion forest by the Papuan government, and some

surveying for oil palm plantation establishment and logging has already taken place. Legal and illegal logging

are also drivers of deforestation and forest degradation in Papua.

Baseline

The province of Papua, Indonesia has historically seen a lower rate of deforestation than has occurred on the

islands of Borneo and Sumatra but is increasingly recognized as Indonesia's next frontier of deforestation.

The project will employ an Avoiding Planned Deforestation methodology, as defined by the Voluntary

Carbon Standard REDD guidelines. This project type requires calculation of the anticipated baseline

emissions under a business as usual scenario. As both project sites are designated "conversion forests," they

are at risk of conversion to agricultural production, with the most likely land use being conversion of primary

forest to oil palm plantation. Baseline carbon accounting requires data about the rate, timing and spatial

dynamics of the conversion process. New Forests will utilize a combination of satellite imagery, forestry and

agricultural surveys, local experience and ecological modeling in determining the baseline carbon

accounting.

Community

Throughout its development, the Papua Project has been well received by local communities and at a variety

of levels of government. Community members, government representatives and local and international

NGOs have committed to working with the project proponents to develop the REDD project and ensure

community benefits, including maintenance of customary land tenure, access to forest resources,

participatory project design and sharing of carbon revenue via an endowed charitable foundation. These

objectives will be pursued throughout the Free, Prior and Informed Consent process and project

implementation.

The Papua Project will provide local communities enhanced opportunity to determine their development

and priorities while maintaining environmental and cultural integrity. Community mapping will also

reinforce customary land tenure. A portion of carbon revenues will endow a local charitable foundation,

which will be created to administer ongoing conservation and social programs under the guidance of an

Advisory Committee, including local community members.

About New Forests New Forests Pty Limited (www.newforests.com.au) is an investment management and advisory services firm

specializing in traditional forestry assets with exposure to emerging environmental markets. Building on

experience managing sustainable forestry investments, New Forests is at the forefront of developing

ecosystem-based assets such as credits for carbon sequestration, habitat restoration and water-quality

improvements. The company is headquartered in Sydney, Australia, with offices in Washington, D.C., San

Francisco and Kota Kinabalu, Malaysia.

Contact Darius Sarshar, EcoProducts Manager

New Forests Asia

Kota Kinabalu, Sabah, Malaysia

(w) +60-88-486-244

(m) +60-17-316-4077

dsarshar@newforests.com.au

View of Mamberamo site during aerial survey. The remote Mamberamo Basin,

threatened by encroaching logging operations and rapidly expanding oil palm

plantations, has high levels of endemism and many species still unknown to

science, with more than 50 new vertebrate species discovered in recent years.