Amazonas Workshop: 
                  Readiness for REDD

       Experiences from Papua, Indonesia


Marisa Meizlish
Direc...
Outline

1.  Introduction to New Forests
2.  Context for Papua Project
3.  Papua project summary
4.  Project characteristi...
1. New Forests
•  Private for-profit forest investment management and advisory services
   firm
•  Headquartered in Sydney, ...
2. Papua Project Context




                            4
2. Papua Project Context: Deforestation Drivers




•  90% of world’s palm oil exports come from Malaysia & Indonesia
•  3...
2. Papua Project Context: REDD Markets
                                                      Mitigation – Forestry 
 Mecha...
3. Papua Project Summary
•  Began with Memorandum of Understanding between Governor
   Suebu & New Forests, May 2008
•  Go...
3. Papua Project Summary
•  Project framework
   o  Baseline assumes conversion to palm
   o  Approximately 28MtCO2e conse...
4a. Governance
•  MOU for joint development of
   REDD project: “commercially
   sustainable model for forest
   conservat...
4b. Baseline
                               •  No existing methodologies for Avoiding
                                  Pl...
4c. Consultation Process
•  Dozens of small villages in both project areas – primarily small scale
   agriculture, sago pa...
4c. Consultation Process
•  Initial feedback at all levels of was
   positive
•  Written letter of support from
   head of...
4c. Consultation Process
•  Free, Prior & Informed Consent
   o  Limited guidance & standards
   o  Work with best experts...
4d. Link to National Strategies
•  Indonesia is extremely active in REDD
    o  More than 20 REDD projects in development ...
4e. Distribution of Benefits
•  Beneficiaries at village, district, province and national level
•  Private investment necess...
4f. Project Financing
•  New Forests represents private
   investors interested in financial
   and environmental returns 
...
5. Lessons Learned
•  Projects in areas with low rates of deforestation have high hurdle
   to establish evidence-based ba...
6. Conclusions
 •  Private investment can play pivotal role in more challenging
    REDD areas that attract less public & ...
www.newforests.com.au


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Marisa meizlish papua project

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Workshop: South‐South collaboration on REDD demonstration activities, Manaus Brazil 2009

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Marisa meizlish papua project

  1. 1. Amazonas Workshop: Readiness for REDD Experiences from Papua, Indonesia Marisa Meizlish Director New Forests Advisory Inc +1-415-321-3301 mmeizlish@newforests.com.au Thursday, February 12, 2009 South-South Collaboration Workshop Amazonas, Brazil 1
  2. 2. Outline 1.  Introduction to New Forests 2.  Context for Papua Project 3.  Papua project summary 4.  Project characteristics a)  Governance b)  Baseline c)  Consultation / social d)  Link to national strategies e)  Distribution of benefits f)  Financing 5.  Lessons learned & conclusions 2
  3. 3. 1. New Forests •  Private for-profit forest investment management and advisory services firm •  Headquartered in Sydney, Australia, with offices in Washington, D.C., San Francisco and Kota Kinabalu, Malaysia •  Investments primarily in Australia, New Zealand and the Asia Pacific region •  REDD: began studying in 2007 and developing the Papua project in 2008; hope to achieve certification (Voluntary Carbon Standard) in 2009 •  Developing other smaller REDD projects as part of larger investments 3
  4. 4. 2. Papua Project Context 4
  5. 5. 2. Papua Project Context: Deforestation Drivers •  90% of world’s palm oil exports come from Malaysia & Indonesia •  300,000 ha converted per year globally •  Luxury products (cosmetics, shampoos, food) & biofuels 5
  6. 6. 2. Papua Project Context: REDD Markets Mitigation – Forestry  Mechanism  Market  Project-Based / Credits National Accounting (“market”)  (“non-market”)  Reforestation / CDM – Only Reforestation  UNFCCC  Deforestation  Regulatory “CDM” – REDD post-2012 ?  REDD post-2012 – ?  2008: $118B Domestic Regulatory Reforestation  3.9 BtCO2  Reforestation / Markets (i.e. U.S., Forest Management  Deforestation  Australia, Canada)  REDD – ?  Voluntary Business Commitments / Reforestation  Marketing /   Forest Management  not relevant  2008: $499M Personal Choice  REDD  100 MtCO2 •  Voluntary market projects can move the REDD market forward while complex regulatory mechanisms are negotiated •  Develop technical methodologies and new business models •  Ultimately, REDD will survive or fail in regulatory markets 6
  7. 7. 3. Papua Project Summary •  Began with Memorandum of Understanding between Governor Suebu & New Forests, May 2008 •  Government nominated 3 concession areas – 2 were prioritized after desktop review •  June 2008, site visits to begin feasibility and project design Mamberamb o Mimik a 7
  8. 8. 3. Papua Project Summary •  Project framework o  Baseline assumes conversion to palm o  Approximately 28MtCO2e conserved under project scenario o  Voluntary carbon sales – Voluntary Carbon Standard (VCS) & Climate, Community & Biodiversity Alliance Standards (CCBA) o  Revenues to local foundation, government & investors o  Local partner with political & implementation experience 8
  9. 9. 4a. Governance •  MOU for joint development of REDD project: “commercially sustainable model for forest conservation and community development” •  Applying for provincial license that will grant carbon rights to New Forests Gov. Suebu signing MOU, May 2008 •  Term sheet defines financial arrangements •  Regency and district governments provide local political and logistical support •  Papua Carbon Foundation receives revenue from credit sales to fund community development & forest protection activities o  Governed by Advisory Committee with local stakeholders and relevant experts 9
  10. 10. 4b. Baseline •  No existing methodologies for Avoiding Planned Deforestation - areas with low rates of historical deforestation require technical rigor •  Other areas of province have higher deforestation rates but causal “link” needs to be established •  Limited data and existing quantitative analysis of deforestation drivers Where we are now: •  Understanding data requirements needed to establish biophysical and economic feasibility of conversion •  Understanding modeling requirements to demonstrate likely rates of deforestation •  Evaluating in-house capabilities and resource needs 10
  11. 11. 4c. Consultation Process •  Dozens of small villages in both project areas – primarily small scale agriculture, sago palm harvesting, hunting & fishing •  Loosely organized through district & regency governments •  In June 2008 met with local governments and held village meetings in conjunction with local NGOs and met with dewan adat (tribal council) •  “Oxygen” project Village meeting in Bagusa, Mamberamo, June Meeting with regency & district government officials and 2008 village elders in Mimika, June 2008 11
  12. 12. 4c. Consultation Process •  Initial feedback at all levels of was positive •  Written letter of support from head of dewan adat in Mamberamo •  However, questions remain regarding community development aspirations, project activities and socio-economic considerations Receiving letter from head of dewan adat in Casanoyagia, Mamberamo, June 2008 relevant to project design and implementation •  Free, Prior & Informed Consent crucial to ensure successful project and social & environmental outcomes 12
  13. 13. 4c. Consultation Process •  Free, Prior & Informed Consent o  Limited guidance & standards o  Work with best experts with field experience in community engagement for forestry in Papua and Indonesia o  Intention to provide full information about the project and potential outcomes & risks o  Decisions and debate at the community level to accept or reject the project •  Help shape the objectives and management plan for the Papua Carbon Foundation •  Further establish channels of communication between impacted communities and government 13
  14. 14. 4d. Link to National Strategies •  Indonesia is extremely active in REDD o  More than 20 REDD projects in development in the country o  Participant in the UN-REDD Programme and the World Bank Forest Carbon Partnership Facility o  Bilateral agreements with Germany (Forest and Climate Change Program) and Australia (Forest Carbon Partnership) o  Governors of Aceh & Papua (and several Brazilian states) have signed an MOU with US governors for inclusion of REDD credits in emerging carbon schemes •  Unclear how these activities will interact on a technical level (i.e. carbon accounting) •  However, biggest questions now are legal and financial o  Draft national legislation issued in mid-2008 and national government is now working to revise and finalize legislation – June 2009 14
  15. 15. 4e. Distribution of Benefits •  Beneficiaries at village, district, province and national level •  Private investment necessitates returns •  Primary distribution channel is the Papua Carbon Foundation o  annual disbursements to fund community development and forest protection activities – determined by FPIC process o  Advisory Board comprising representatives of community stakeholders and relevant experts •  Remaining revenue: government, investors & project managers New Forests & Emerald Planet staff with provincial Forestry Department staff and government officials in 15 Mamberamo, June 2008
  16. 16. 4f. Project Financing •  New Forests represents private investors interested in financial and environmental returns •  Skilled in monetizing environmental assets associated with forestry investment •  Well aligned with Papua’s objectives and project parameters •  Returns delivered through credit sales over time Managing Directors of New Forests and Emerald Planet meeting with Governor Suebu, May 2008 c •  Upfront costs shared among project partners •  Long-term commitment to sustainable resource use in Indonesia 16
  17. 17. 5. Lessons Learned •  Projects in areas with low rates of deforestation have high hurdle to establish evidence-based baselines •  Area, such as Papua, where this is limited data availability make this even harder •  Legal uncertainty for REDD projects outside national-level demonstration activities – right to transact credits? •  Also face technical uncertainty – project vs. national level baselines? •  FPIC is time consuming and requires dedicated resources – lack of standardized guidance Difficult to get early project financing where there is no established legal & methodological frameworks 17
  18. 18. 6. Conclusions •  Private investment can play pivotal role in more challenging REDD areas that attract less public & multilateral funding •  Will take on the risks as long as there is some certainty on fundamental issues: o  Legal right to transact in carbon o  Legal arrangements for revenue sharing among government agencies/levels o  Legal recognition of project activities within national-level activities •  Donor / grant / multilateral finance remains important for information Arial view of Mimika site, June 2008 gathering, data analysis and FPIC/ community engagement 18
  19. 19. www.newforests.com.au 19

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