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REDD+ Benefit Sharing,
Indonesia Proposal
                         WWF-Indonesia
REDD+ in Devt. scenario
• REDD+ is part of Development
• Adressing Driver of DD : devt needs
  (infrastructure, population growth), sector/market
  needs (palm oil, mining, timber, pulp and paper), forest
  fire, illegal logging, encroachment
• Forest and peat land contribution in emission
  reduction target : 87 % (13 priority programs)
• Options in REDD+ implementation (based on REDD+
  National Strategy (esp. Strategic Program)
• Funding window: Fund for REDD+ Indonesia (FREDDI)
Redefinition of project boundaries, sub
         national implementation
• The use of landscape and jurisdictional approach in
  defining “projects.” Project boundaries include
  projects, people, public and private sectors.
   – Key pilot cases: Kapuas Hulu in West Kalimantan, and
     Berau and West Kutai in East Kalimantan.
• REDD+ as a productive sector, a source of growth and
  income, contributing to the “green development plan”
  of the regions.
• Governance.
   – Community co-owns projects, not only in financial terms.
   – Community having access to decision making process in
     REDD+.
Benefit Sharing Paradigm
Paradigm shift that guides the principles for benefit-sharing and incentive
mechanisms :

        Community as “disturbed                       Community as a part of,
        neighbors” of an “REDD+                       and “co-owners” of the
        Project” that needs to be                     project, being inside the
        “bribed” through cash-                        project boundary,
        distribution                                  sharing responsibility as
                                                      well as benefits

        Benefits being defined                        Benefits being defined as
        almost entirely as cash                       well-being, happiness,
        distribution.                                 sustainability, with
                                                      fulfilled social needs.



        Benefits being defined                        Benefits being defined as
        almost entirely as                            carbon and other social
        derived from carbon.                          and ecological services.
Approach in design benefit sharing
Level                                 Actions                              Payments/incentives
National devt : black/brown, i.e.     Greening ,26/41 target, growth 7     - National budget
MP3EI                                 %                                    - International fund
                                                                           - Input based/compliance
                                                                           - Performance base
Prov devt, key sectors :              RAD-GRK, SRAP/STRADA REDD+,          -   Special allocations
Forest, palm oil, mining, peat        Green spatial planning,              -   Regional Incentives
land, community based                 landscape approach (HOB,                 Mechanism (RIM),
                                      Sumatera, Papua)                         Compliance window
                                                                           -   RIM, Regional initiative
                                                                               window
District devt, key sectors :          -   Spatial planning                 -   Budget Special allocations
Forest, palm oil, mining, peat        -   REDD+ : nested/jurisdictional    -   RIM, Compliance window
land, community based                     approach                         -   RIM, Regional initiative
                                      -   Develop PES                          window
                                      -   Conservation district
                                      -   Land swap
Sectors : forest, palm oil, mining,   Enabling policy, SVLK, forest        Direct payment, carbon
community based                       certification, RSPO, zero burning,   market,RIM, rights recognitions,
Stakeholders : govt, community,       sustainable mining, community        PNPM, Credit Union, tax
private                               based practices                      reductions
REDD+ Benefit : Beyond cash
• As a part of the “green development plan” of the
  region, there has to be a transfer of capital from
  REDD+ projects to sustainable development.
• Benefit should last beyond “project periods.”
• Benefits are reinvested in
  social, environmental, and physical capital for
  sustainability.
• Strengthen and recognize community
  rights, community not as a neigbour.
REDD+ Benefit : Beyond carbon
• Benefits come not only from carbon, although
  it is a good start.
  – Other ecological services such as water,
    ecotourism, and biodiversity-based commodities.
  – Other “social” and “cultural” services.
• Payments for services from forests other than
  carbon need to be calculated and made, at the
  right scale and scope, by the right parties.
Identifying Beneficiaries
Beneficiaries                    Roles/contribution                                                   Benefits

Community (individual)                 Directly contributed to emission reduction efforts             Manfaat langsung berupa pembayaran
                                       Participating in REDD+ project or became member of proponent   dari pengurangan emisi, pekerjaan,
                                       group                                                          penguatan hak atas lahan,
                                                                                                      peningkatan kapasitas, transfer
                                                                                                      teknologi.
Indigenous/local community             Organising the group as a project proponent                    Manfaat langsung dari pembayaran
                                       Mewakili kelompoknya dalam proses pelaksanaan REDD+            berbasis kinerja, penguatan hak,
                                       termasuk dalam “menegosiasikan” manfaat dari REDD+.            peningkatan kapasitas


Project developer/investor             Design and implement REDD+ project                             Menerima pembayaran berbasis
                                       Managing area inside project boundaries                        kinerja, peningkatan nilai aset
                                       Provide financial resource to develop project
Provincial/district government         Create enabling condition for REDD+ implementation             Pendapatan dari pajak daerah, transfer
                                       Regulation alignment and law enforcement                       pembayaran dari pemerintah pusat,
                                       Implement and monitoring measures to reduce deforetation and   peningkatan kapasitas, bagi hasil dari
                                       forest degradation                                             pembayaran pengurangan emisi



National government                    Create enabling condition for REDD+ implementation             Pembayaran berbasis input/REDD+
                                       Mengembangkan infrastruktur pendukung pelaksanaan REDD+        readiness, pajak, peningkatan
                                       Creating incentives                                            kapasitas, transfer teknologi
                                       Law enforcement
                                       Reform licensing proces
                                       Solving tenurial issues
                                       Create and Strengthen policies to addressing drivers of
                                       deforestaion
Channels for Distribution
• Use existing channels for distribution, whenever appropriate.
   – Government transfer payment mechanism : i.e. proposed Regional
      Incentive Mechanism
   – In Indonesia: PNPM, grant-making institutions, banks, credit unions.
• Create new ones, whenever appropriate.
   – Establishment of Provincial Ecosystem Services Funds.
   – Joint ventures with funds and fund managers.
• Do it as a part of a “green development plan” of the region. This includes
  poverty alleviation and sustainable livelihoods.
• Ensure community access.
• Creates incentices that trigger positive/green actions
Safeguards/PRISAI and benefit sharing
                 mechanism
• REDD+ must benefit the people.
• Safeguards and benefit sharing mechanisms are
  two sides of the same coin.
  – Safeguards serve to avoid REDD+ initiative to run
    against other social, environmental, and financial
    objectives.
  – Fair REDD+ benefit sharing to all relevant stakeholders
    and rights holders;
  – Ensure the process in defining benefit, identify
    beneficiaries and other process in participatory and
    transparant process
Challenges and issues
• Legal framework
• Clarity on tenurial and defining ownership over carbon and
  other services
• Implementing safeguards and FPIC to identify and defining
  beneficiaries, identify benefit from REDD+;
• Increase institutional capacity on managing REDD+ benefit;
• Benefit contribute in Addressing drivers of deforestation
• Prevent coruption and mismanamagement in REDD+
• Alignment with others mechanims that design for REDD+
Thank you

iwanwibisono05@gmail.com

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Day 1. Presentation 2. iwan wibisono

  • 1. REDD+ Benefit Sharing, Indonesia Proposal WWF-Indonesia
  • 2. REDD+ in Devt. scenario • REDD+ is part of Development • Adressing Driver of DD : devt needs (infrastructure, population growth), sector/market needs (palm oil, mining, timber, pulp and paper), forest fire, illegal logging, encroachment • Forest and peat land contribution in emission reduction target : 87 % (13 priority programs) • Options in REDD+ implementation (based on REDD+ National Strategy (esp. Strategic Program) • Funding window: Fund for REDD+ Indonesia (FREDDI)
  • 3. Redefinition of project boundaries, sub national implementation • The use of landscape and jurisdictional approach in defining “projects.” Project boundaries include projects, people, public and private sectors. – Key pilot cases: Kapuas Hulu in West Kalimantan, and Berau and West Kutai in East Kalimantan. • REDD+ as a productive sector, a source of growth and income, contributing to the “green development plan” of the regions. • Governance. – Community co-owns projects, not only in financial terms. – Community having access to decision making process in REDD+.
  • 4. Benefit Sharing Paradigm Paradigm shift that guides the principles for benefit-sharing and incentive mechanisms : Community as “disturbed Community as a part of, neighbors” of an “REDD+ and “co-owners” of the Project” that needs to be project, being inside the “bribed” through cash- project boundary, distribution sharing responsibility as well as benefits Benefits being defined Benefits being defined as almost entirely as cash well-being, happiness, distribution. sustainability, with fulfilled social needs. Benefits being defined Benefits being defined as almost entirely as carbon and other social derived from carbon. and ecological services.
  • 5. Approach in design benefit sharing Level Actions Payments/incentives National devt : black/brown, i.e. Greening ,26/41 target, growth 7 - National budget MP3EI % - International fund - Input based/compliance - Performance base Prov devt, key sectors : RAD-GRK, SRAP/STRADA REDD+, - Special allocations Forest, palm oil, mining, peat Green spatial planning, - Regional Incentives land, community based landscape approach (HOB, Mechanism (RIM), Sumatera, Papua) Compliance window - RIM, Regional initiative window District devt, key sectors : - Spatial planning - Budget Special allocations Forest, palm oil, mining, peat - REDD+ : nested/jurisdictional - RIM, Compliance window land, community based approach - RIM, Regional initiative - Develop PES window - Conservation district - Land swap Sectors : forest, palm oil, mining, Enabling policy, SVLK, forest Direct payment, carbon community based certification, RSPO, zero burning, market,RIM, rights recognitions, Stakeholders : govt, community, sustainable mining, community PNPM, Credit Union, tax private based practices reductions
  • 6. REDD+ Benefit : Beyond cash • As a part of the “green development plan” of the region, there has to be a transfer of capital from REDD+ projects to sustainable development. • Benefit should last beyond “project periods.” • Benefits are reinvested in social, environmental, and physical capital for sustainability. • Strengthen and recognize community rights, community not as a neigbour.
  • 7. REDD+ Benefit : Beyond carbon • Benefits come not only from carbon, although it is a good start. – Other ecological services such as water, ecotourism, and biodiversity-based commodities. – Other “social” and “cultural” services. • Payments for services from forests other than carbon need to be calculated and made, at the right scale and scope, by the right parties.
  • 8. Identifying Beneficiaries Beneficiaries Roles/contribution Benefits Community (individual) Directly contributed to emission reduction efforts Manfaat langsung berupa pembayaran Participating in REDD+ project or became member of proponent dari pengurangan emisi, pekerjaan, group penguatan hak atas lahan, peningkatan kapasitas, transfer teknologi. Indigenous/local community Organising the group as a project proponent Manfaat langsung dari pembayaran Mewakili kelompoknya dalam proses pelaksanaan REDD+ berbasis kinerja, penguatan hak, termasuk dalam “menegosiasikan” manfaat dari REDD+. peningkatan kapasitas Project developer/investor Design and implement REDD+ project Menerima pembayaran berbasis Managing area inside project boundaries kinerja, peningkatan nilai aset Provide financial resource to develop project Provincial/district government Create enabling condition for REDD+ implementation Pendapatan dari pajak daerah, transfer Regulation alignment and law enforcement pembayaran dari pemerintah pusat, Implement and monitoring measures to reduce deforetation and peningkatan kapasitas, bagi hasil dari forest degradation pembayaran pengurangan emisi National government Create enabling condition for REDD+ implementation Pembayaran berbasis input/REDD+ Mengembangkan infrastruktur pendukung pelaksanaan REDD+ readiness, pajak, peningkatan Creating incentives kapasitas, transfer teknologi Law enforcement Reform licensing proces Solving tenurial issues Create and Strengthen policies to addressing drivers of deforestaion
  • 9. Channels for Distribution • Use existing channels for distribution, whenever appropriate. – Government transfer payment mechanism : i.e. proposed Regional Incentive Mechanism – In Indonesia: PNPM, grant-making institutions, banks, credit unions. • Create new ones, whenever appropriate. – Establishment of Provincial Ecosystem Services Funds. – Joint ventures with funds and fund managers. • Do it as a part of a “green development plan” of the region. This includes poverty alleviation and sustainable livelihoods. • Ensure community access. • Creates incentices that trigger positive/green actions
  • 10. Safeguards/PRISAI and benefit sharing mechanism • REDD+ must benefit the people. • Safeguards and benefit sharing mechanisms are two sides of the same coin. – Safeguards serve to avoid REDD+ initiative to run against other social, environmental, and financial objectives. – Fair REDD+ benefit sharing to all relevant stakeholders and rights holders; – Ensure the process in defining benefit, identify beneficiaries and other process in participatory and transparant process
  • 11. Challenges and issues • Legal framework • Clarity on tenurial and defining ownership over carbon and other services • Implementing safeguards and FPIC to identify and defining beneficiaries, identify benefit from REDD+; • Increase institutional capacity on managing REDD+ benefit; • Benefit contribute in Addressing drivers of deforestation • Prevent coruption and mismanamagement in REDD+ • Alignment with others mechanims that design for REDD+