WWF’s Heart of Borneo (HoB) Green Business Network (GBN) gathering was held in late April, in conjunction with one of the world’s leading business and environmental conferences - the 2011 ‘Business 4 Environment’(B4E) global summit. The all day event aimed to establish stronger links between business, government, investors and donors to deliver sustainable practices across the 40% of the HoB under industry or business concessions. Entitled “ Getting Down to Business in Borneo” the event marked the next phase of business engagement under the HoB’s Green Business Network, following the highly successful Forest Dialogue dinner with Nobel Laureate Al Gore, in January. The importance of holding an event such as this emerged from research conducted by WWF in 2010. Interviews with more than 80 HoB forest based businesses revealed impediments to achieving sustainable production and a lack of information on the government’s plans and goals for the area. “The companies we spoke to said they wanted to know more about sustainable business solutions for development in the HoB and we wanted an opportunity to present the business case for these solutions,” said HoB Corporate Engagement leader, Katie Stafford. “In January this year we launched the virtual Heart of Borneo Green Business Network to better inform businesses of HoB. This event at the B4E was the natural follow up to physically bring groups together to catalyze sustainable business through awareness raising and face to face practical discussion,” she said.

A priority focus for WWF Indonesia A priority focus for WWF Indonesia A priority focus for WWF Indonesia A priority focus for WWF Indonesia In opening the Green Business Network day, WWF Indonesia CEO, Dr Efransjah, highlighted the HoB as one of WWF Indonesia’s top priority areas. “Today, we have invited people from the business sector as well as governments, donors, consultants and fellow NGOs to add to the debate as to how we can all work better together to achieve more green business in the HoB,” he said.

Indonesian Govt backs Green Business in HoBIndonesian Govt backs Green Business in HoBIndonesian Govt backs Green Business in HoBIndonesian Govt backs Green Business in HoB Ir. Laksmi Dhewanthi, Assistant Deputy of Economics for the Indonesian Ministry of Environment delivered a speech from the Minister of Environment. She emphasized the Indonesian government’s desire to provide incentives for the sustainable use of natural resources within a Green Economy in the HoB. “Indonesia wishes to pursue a green economy in the HoB to achieve sustainable development that is pro poor, pro-growth, pro jobs, pro business and pro environment,” she said. “A green economic approach is one of four pillars of the Indonesian government’s new 20 year development plans for 2005-2025 which includes the goal of: A green and ever-lasting Indonesia.” she added. She said the Indonesian government was committed to sustainable development and more innovative schemes and incentives for sustainable consumption would be developed including economic instruments, such as natural resource and environmental accounting and payments for ecosystem services. “Education, spatial planning and environmental legislation enforcement are also vital to the pursuit of a green economy in the HoB,” she said.

Heart of Borneo takes center stage at B4E Global Summit 2011 in Jakarta

Discovering ‘forest solutions’ for greener business in the HoB at WWF’s GBN stand

Dr Efransjah, CEO WWF Indonesia

WWF Malaysia - Raymond Alfred

WWF HEART OF BORNEO INITIATIVE BRIEF No 4WWF HEART OF BORNEO INITIATIVE BRIEF No 4WWF HEART OF BORNEO INITIATIVE BRIEF No 4WWF HEART OF BORNEO INITIATIVE BRIEF No 4

WWF Heart of Borneo Initiative Brief No. 4

© WWF Indonesia/Irza Rinaldi

© WWF Indonesia/Sandy Rizaldi

Green Business network continued Green Business network continued Green Business network continued Green Business network continued Pavan Sukhdev, former special adviser and head of the UN Green Economy Initiative and leader of UNEP’s landmark study on The Economics of Ecosystems and Bio-diversity (TEEB) explained the importance of valuing natural capital in a green economy. The TEEB report is all about making people recognize the value of natural capital and its role in alleviating poverty, especially in places like the Heart of Borneo, a place so rich in

ecosystem services.” “Many ecosystem services are invisible, but they represent 10%-15% of global GDP and more importantly they represent between 50-90% of the value of poor people’s livelihoods. Thus when your countries develop their economies you cannot remove nature from them because your poorest citizens are so dependent on it.” Mr Sukhdev noted that financing a green economy in places like the Heart of Borneo was not the major problem. “We already subsidize the fossil fuel driven ‘brown economy’ to the tune of one trillion US

dollars every year without any concern being raised – so diverting some of the money to support a new green and sustainable economy should not be a problem. I know which economy I would rather be subsidizing through my tax dollar,”’ he said. Moreover, there are many new forms of funds being developed internationally to finance a green economy. The Heart of Borneo and its representative governments are well placed to access some of these funds.

Norwegian Ambassador to Indonesia, His Excellency, Eivind Homme discussed how donors could support Green Business. “ There is no more time for ‘business as usual’ approaches to the environment and development, in the HoB, or indeed anywhere else in the world. If we don’t fight climate change then the poor will suffer, and if we don’t fight it in partnership with business, government and civil society, it will not be sustainable”. Norway has pledged to support the development and implementation of an Indonesian REDD+ strategy, with up to US$1 billion available over a period of six or more years. He said the Indonesian government is taking a pioneering role in REDD+ in the HoB and it is an example of how government and business can work together. “HoB is a sort of laboratory where all the key players can work together to see what works”, he said.

The perspective of moving the three business sectors of forestry, palm oil and mining towards a green business approach was discussed in a group panel session. The discussion was moderated by Adam Tomasek, WWF’s HoB Team leader. Each sector faces real challenges including current unsustainable industry practices, high shareholder expectations and growing consumer demands. Nevertheless achievements were being made. Sime Darby, a Malaysian based palm oil conglomerate is on track to achieve 100% sustainable palm oil production by the end of 2011 - an initiative involving more than 2 million tonnes of palm oil. Indonesia’s largest retailer (and the world’s second largest) Carrefour was making supply chain commitments to its paper and palm oil supply chain and using its presence to educate consumers about sustainability. The mining sector had experienced tremendous growth but required improved planning and cooperation with government on landuse policy to ensure, for example, that high conservation value areas that were protected by some companies, would not be converted by others. Better planning will lead to improved utilization.

Mr Noerso Wahyudi, head of research in the climate change management team in the Indonesian Ministry of Finance highlighted fiscal incentives for Green Business. Mr Noerso read a speech from Professor Dr Singgih Riphat (Head, Climate Change Management) describing how the Indonesian Ministry of Finance was developing fiscal and other financial incentives to support green businesses. One example is the Indonesian Green Investment Fund (IGIF) which catalyses Public Private Partnerships (PPPs) that mobilise investment in low-carbon initiatives. It will fund up to 10% of capital of PPPs, through joint-investment companies. The fund seeks investment opportunities in projects, companies and solution providers with low-carbon strategies in the energy, agriculture, forestry and water sectors. The fund would have a 10 year shelf life and would generate

investment returns through a combination of dividends, strategic sales and initial public offerings (IPOs) of its portfolio companies. This was just one of the incentives targeted to encourage the business industry to turn green and value natural capital in the Heart of Borneo and other parts of Indonesia.

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Pavan Sukhdev

Eivind Homme

Noerso Wahyudi

Adam Tomasek, WWF’s HoB Team leader

WWF Heart of Borneo Initiative Brief No. 4

© WWF Indonesia/Irza Rinaldi

© WWF Indonesia/Irza Rinaldi

© WWF Indonesia/Sandy Rizaldi

© WWF Indonesia/Saipul Siagian

Indonesian president backs Green Economy approachIndonesian president backs Green Economy approachIndonesian president backs Green Economy approachIndonesian president backs Green Economy approach Indonesian President, H. E. Dr. H. Susilo Bambang Yudhoyono gave his firm support to a green economy in his keynote address to the B4E Summit. The following is an edited extract from his speech. You have picked the right place for a global conference on the green economy. Indonesia is a country with one of the largest rainforests in the world. Together with other forested countries, we intend to play a significant role in reducing global carbon emissions. We are also actively pursuing bilateral forestry cooperation.., and creative forestry partnerships with Norway, the Republic of Korea, Australia.. and other countries. These programs will add value to landscape programs financed by debt-for-nature swaps. REDD + In the context of national policies, Indonesia has developed a REDD + strategy that supports strong economic growth and reduces greenhouse gas emissions. Our REDD+ action goals will be attained through greater sustainable peat-land and forest management. REDD+ is an example of a new course for managing Indonesia’s natural resources without abandoning industries vital to the economy. Consistent with the REDD + Initiative, Indonesia offers to allocate the expansion of plantations and other economic activities to already degraded, or low carbon areas. Indonesia has more than 30 million hectares of degraded land which are critical to our sustainable economic growth. This means there is sufficient land available for economic production including the future growth of palm oil and forestry. Allowing for expansion of palm oil and forestry into degraded land is one of the areas that the government is committed to. I am pleased to announce that my government will grant access to degraded lands for the industries that are serious in expanding or are planning to invest on these lands, for the welfare of our people and for the future of our planet. The success of this program is critical to our success in pursuing a green economy. You can step forward and play an important role in promoting a green economy. You can come up with a new model that generates the business growth while reducing the overall environmental impacts. Therefore, let me once again invite all captains of industries here to contribute to the creation of a green economy and low-carbon future.

Jakarta Declaration paves way for sustainabilityJakarta Declaration paves way for sustainabilityJakarta Declaration paves way for sustainabilityJakarta Declaration paves way for sustainability Indonesia pledged its commitment to global leadership on efforts to reduce emissions from deforestation and forest degradation with a business declaration which concluded the 5th annual (B4E) Summit. The declaration was agreed by 700+ participants of the B4E Summit and launched by H.E Hatta Rajasa, Indonesia's Coordinating Minister for the Economy on the final day of the B4E Summit. This declaration has been developed as a pledge from the Indonesian business community to support President Susilo Bambang Yudhoyono and the Government of Indonesia to meet its ambitious targets on carbon emissions reductions and economic growth. President Yudhoyono has sent a clear message that the world must take a more sustainable, low-carbon development path towards a new Global Green Economy, committing Indonesia to reducing emissions by 26 percent by 2020, and up to 41 percent with international support against a targeted 7% economic growth. DECLARATION WE, THE PARTICIPANTS AT THE B4E GLOBAL SUMMIT 2011, support the Indonesian President and Government’s commitment to reduce emissions by 26 percent to 41 percent by 2020. We will achieve this through both individual company initiatives and by working collectively in partnership with governments and NGOs. We commit to: 1. Support net zero deforestation by 2020 by phasing out products coming from deforestation of ecologically important forests. 2. Reduce our resource intensity by investing heavily in energy & resource efficiency programs, and in programs to redesign products and supply chains to achieve more transformative change. 3. Promote sustainable business practice throughout supply chains. 4. Support programs protecting areas of high biodiversity and natural carbon storage. 5. Invest in and promote sustainable urban planning and integrated land-use management. 6. Intensively promote more sustainable consumption patterns in Indonesia. We are committed to working in close partnership with the Indonesian government to achieve these ambitious goals and deliver successful action on climate change. The costs of inaction are far greater than the costs of action.

H.E Hatta Rajasa

H. E. Dr. H. Susilo Bambang Yudhoyono Indonesian President

courtesy of Indonesian government

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WWF Heart of Borneo Initiative Brief No. 4

© WWF Indonesia/Irza Rinaldi

WWF’s Living Forests Report details future scenarios for conservation and developmentWWF’s Living Forests Report details future scenarios for conservation and developmentWWF’s Living Forests Report details future scenarios for conservation and developmentWWF’s Living Forests Report details future scenarios for conservation and development WWF launched its Living Forests Report during the Heart of Borneo Green Business event during the B4E Summit. The summit focused on deforestation and how new business models of sustainable forest management can benefit government, business and communities and proved to be an ideal venue for the launch of the Living Forests Report’s first chapter. WWF International’s Executive Director of Conservation Lasse Gustavsson previewed the 2011 Living Forests Campaign. “There is no doubt in the minds of WWF that in order for us to find solutions to bigger challenges including development and ensuring the resources we have are well managed, the active involvement of the private sector is key, as is the involvement of governments and NGOs.” “The backbone for this discussion is the global crisis of natural resources – we are living, globally, as if we have access to 1.5 planets.

We need to develop the economies in the south and fit the consumption of northern economies into the carrying capacity of the one and only planet that we have.” Rod Taylor, Director of Forests at WWF International, launched the first chapter of the Campaign, highlighting the projected scenarios of global demand for food, fibre and energy and challenges to forests and biodiversity. “We are squandering forests now by failing to sort out vital policy issues such as governance and economic incentives to keep forests standing,” he said. The zero net deforestation and forest degradation model proposed in the Living Forests Report means the current deforestation rate of 13 million hectares per year would drop to zero. But it allows room for sustainable forest-based businesses such as those relying on monoculture plantations and those improving degraded land. “Better governance and economic incentives will enable sound stewardship of forests and more productive use of already degraded land,” Mr Taylor said. “This would ensure enough farming land, timber plantations and well-managed forests to meet current global demand for wood and food without further forest loss.” Nazir Foead, WWF Indonesia’s director of Government, Corporate and Community Engagement focused on the steps that developed and developing nations needed to take to reduce consumption and halt forest loss. “Yes, developing countries will grow. But at the same time what we are calling for here is the minimization of consumption in developed countries. So WWF in Europe is working hard to promote sustainability and reduce consumption, while at the same time WWF in countries like Indonesia, China and India is working hard to promote sustainable certified products,” he said.

For more information about the Green Business Network please contact:

www.panda.org/borneo/greenbusinessnetwork

WWF Heart of Borneo Initiative Brief No. 4

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Lasse Gustavsson

Rod Taylor

Nazir Foead

© WWF Indonesia/Irza Rinaldi

© WWF Indonesia/Irza Rinaldi

© WWF Indonesia/Irza Rinaldi