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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 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
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