East Kutai Regency - East Kalimantan Indonesia

Roundtable on Sustainable Palm Oil Reporting GHG Emissions

PT. Karya Prima Agro Sejahtera

Prepared by : PT. Karya Prima Agro Sejahtera 2015

Table of Contents

1. Assessment Process and Procedure...... 3 1.1. Assessor and their credentials...... 3 1.2. Assessment methods ...... 4 1.3. Responsible Team for developing mitigation plan ...... 6 2. Summary of Carbon Stock Assessment ...... 7 2.1. Location maps indicating area ………...... 7 2.2. Land Cover Stratification ...... 9 2.3. Map and description of all area PT KPS ………………………….…….………. 12 3. Summary of GHG Emission ……………...... 14 4. References ...... 14 5. Summary of Management and Mitigaton Plans ...... 15 6. Internal Responsibility ...... 20

1 Assessment Process and Procedures 1.1 Assesors and their credentials Carbon Stock Assessment Report in land permit of PT. Karya Prima Agro Sejahtera (PT KPS) presented by Faculty of Forestry, Institut Pertanian Bogor, consisting of three people. This is brief description of the name, qualification, and role within the team.

1. Dr. Ir. Nyoto Santoso, MS, Team Leader (Management and conservation biodiversity, Carbon Stock Assessment and Greenhouse Gas Emissions) The Chairman of Assessment Team of NKT FP2SB. Experts in the field of Management and Conservation of Biodiversity. Holds a Master of Science in Management Studies Program Natural Resources and Environment of IPB in 1992, and obtained his PhD in Forestry Management Science Program and graduated in 2012. As an expert in the field of environment has been started since 1987. He is also a lecturer in the Department of Conservation Forest resources and Ecotourism Faculty of Forestry - IPB with subjects who nurtured among other wildlife Ecology and Management, Forestry and Environmental Policy, Important Ecosystem Conservation and Ecology Primates (Forestry Management Studies Program and the Primates - Master Program IPB). He served as Executive Director of the Institute of Research and Development of Indonesian Mangrove, Mangrove National Expert Council members, as well as members of the Board of Experts for Strategic Sustainable Development Forum Plantation. Registered as Assessor Team Leader in the RSPO and HCV Resource Network, 2014. 2. Irham Fauzi, S.Hut, Carbon Stock Assessment and Greenhouse Gas Emissions Team Member (GIS, remote sensing) He is an Assistant Lecturer in the Department of Forest Resources Conservation and Ecotourism - Faculty of Forestry with expertise in the field of Geographic Information System (GIS) and Remote Sensing (RS). Earned a bachelor's degree study program of Forest Resources Conservation and Ecotourism, Faculty of Forestry in 2013. The experience of working in the field mapping has been conducted since 2011. 3. Varian Triantomo, S.Hut, Carbon Stock Assessment and Greenhouse Gas Emissions Team Member (GIS, remote sensing) He get a Bachelor's degree in Forestry in 2005. During this time actively conduct various studies on carbon stocks in oil palm plantations, peat swamp forests and forests community. He ever conduct hydrological studies on REDD activities at the site of the

former PLG, Palangkaraya and in planning the rehabilitation of peat swamp forest. In addition it has also been conducting training and greenhouse gas accounting using the GHG calculator, as well as the ever helpful his lecturer conducted a study on "carbon foot print" in oil palm plantations.

1.2 Methodology and procedures used for conducting carbon stock and GHG assessments 1.2.1 Methodology and procedures carbon stock assessment Stages of activity measurement and mapping carbon stocks in the concession area of PT KPS grouped into four stages, namely (i) a desk study, (ii) field surveys, (iii) laboratory analysis and (iv) data analysis, mapping and reporting. These stages are composed of a series of activities as presented in Figure 1.

Menggunakan data citra (contoh: landsat) Menggunakan tool yang tersedia Menggunakan peta tanah untuk menstratifikasi tutupan lahan (contoh: WRI,s Forest Cover Analyzer jika tersedia untuk didalam areal kajian dan menilai area and Suitability Mapper) untuk menentukan area gambut potensial yang memiliki cadangan karbon menduga cadangan karbon sementara dilokasi kajian tinggi dan gambut di area kajian

TAHAP PRE-SCREENING Apakah akan dilanjutkan dengan penanaman baru atau tidak?

PERTIMBANGAN ULANG

TAHAP RENCANA PENANAMAN BARU DIPROSES PENDUGAAN BIOMASA

Apakah akan menggunakan opsi 1 atau 2 untuk Pendugaan Karbon tanah menduga biomassa? (gambut)

OPSI 1 OPSI 2

Melakukan survey tanah dilokasi Langkah 1: Mempertimbangkan untuk Langkah 1: Mempertimbangkan untuk perkebunan sebagai bagian menyediakan data penginderaan jarak menyediakan data penginderaan jarak penilaian agronomi jauh dengan resolusi tinggi (resolusi jauh dengan resolusi tinggi (resolusi <30m ) <30m )

Langkah 2a: Melakukan analisis data Langkah 2b: Melakukan analisis data penginderaan jarak jauh dan penginderaan jarak jauh dan menstratifikasi tutupan lahan kedalam menstratifikasi tutupan lahan kedalam kategori yang telah ditetapkan didalam kategori yang telah ditetapkan didalam Jika ada lokasi gambut, tentukan Palm GHG Palm GHG batas area gambut (ha), rata-rata kedalaman (m), dan tinggi muka air yang diharapkan

Langkah 3: Melakukan pengecekan Langkah 3: Melakukan pengecekan lapangan untuk memverifikasi akurasi lapangan untuk memverifikasi akurasi stratifikasi lahan dan memodifikasi stratifikasi lahan dan memodifikasi batas yang sesuai batas yang sesuai

Langkah 4: Menggunakan nilai tetap Langkah 4: Menduga biomasa untuk nilai biomassa cadangan karbon pemukaan tanah dari sample plot dan diatas dan dibawah permukaan tanah menggunakan persamaan allometric dalam strata yang berbeda untuk menghitung biomassa cadangan karbon diatas dan dibawah permukaan tanah dalam strata yang berbeda

Langkah 5: Menggunakan PalmGHG untuk menghitung keseimbangan dari pembangunan perkebunan baru

Figure 1. Methods and procedures carbon stock assessment

1.2.2 Methods and procedures GHG assessment Net GHG emissions are calculated by adding the emissions released during land clearing, crop production and crop processing, and subtracting from these emissions the sequestration of carbon in the standing crop and in any conservation areas. Stages of activity measurement and mapping GHG assessment in the concession area of PT KPS as system boundary for the GHG calculation in PalmGHG. The GHG Calculation stages are divided into input, output agricultural and mill.

This emission sources included in the calculator are : i) Land clearing; ii) Manufacture of fertilisers and transport to the plantation; iii) Nitrous oxide and carbon dioxide resulting from the field application of fertilisers and mill by-products and other organic sources such as palm litter; iv) Fossil fuel used in the field and at the mill ; v) Methane produced from palm oil mill effluent (POME); and vi) Carbon dioxide and nitrous oxide generated by the cultivation of peat soils.

In addition, the following GHG fixation and credits are considered: i) Carbon dioxide fixed by oil palm trees, ground cover and carbon sequestered in plantation litter (see crop sequestration, below); ii) Carbon dioxide fixed by biomass in conservation areas; iii) GHG emissions avoided by the selling of mill energy by-products (e.g. electricity sold to the grid; palm kernel shell sold to industrial furnaces).

Figure 2. System Boundary of Palm GHG

1.3 Responsible team for developing mitigation plan Monitoring management of HCV and SIA PT. KPS in region base, controled by Plantation Head of PT. KPS along with relevant functional departments. Estate planning process synergize with program planning and management of Carbon Stock and GHG Assessment. The department which involved in management plan and implementation are figured below.

2. Summary of Carbon Stock Assessment 2.1 Location Map and Landscape 1. Location Map

Figure 3. Location Map of PT. KPS

Administratively, oil palm plantation area of PT. KPS is located Kongbeng Distric, East Kutai Regency, East Kalimantan Province

2. Landscape Map

Figure 4. Landscape Map presence protected forest and conservation forest around PT. KPS

Based on review of document/ report/ existing/ maps and field observation indicate the around concession PT. KPS there is no area of protected forest and conservation area.

3. Area of new planting and time plan for new planting

Figure 5. Area of New Planting Plan of PT. KPS on 2016

2.2 Land Cover Stratification The results of image interpretation, land cover in PT KPS consists of eight classes. The cover is an old shrub, young shrub, palm, bush, fields, open land, settlements and water bodies. Carbon stock assesment in this study was undertaken on the whole plantation (Table 2), but for making such plot carried out only in areas that still have vegetation (Table 1), palm while using modeling that has been done by ICRAF. The Carbon stock of PT KPS could be seen in Table1 and Table 2.

Table 1. Land cover classification in concession PT Karya Prima Agro Sejahtera 2014

Carbon stock (tones Land Cover Acreage (ha) Carbon stock (tonesC) C/ha) AGB 21.154,60 Old shrubs 342,74 31,30 10.727,75 Young shrubs 578,18 14,78 8.,543,63 Bush 503,54 3,74 1.883,23 BGB 3.011,06 Old shrubs 342,74 4,59 1.574,88 Young shrubs 578,18 2,30 1.330,05 Bush 503,54 0,21 106,13

Table 2. Total Carbon Stock PT. Karya Prima Agro Sejahtera 2014

Total C Total C (with oil No Acreage C (without oil Land Cover palm) (ha) palm) 1 Old shrubs 342.74 35.90 12,302.65 12,302.65 2 Young shrubs 578.18 17.08 9,873.68 9,873.68 3 Oil Palm* 1,575.15 6.,00 102,384.50 4 Open land 74.70 - - 5 Settlement 15.96 - - 6 Paddy field** 23.35 4.80 112.08 112.08 7 Bush 503.54 3.95 1,990.50 1,990.50 8 Water body 6.02 - - Total 3,119.63 126,663.42 24,278.91 Average of carbon stock (tC/ha) 40.60 15.72

The value of the carbon used in the form of primary data to cover the old shrub, young shrub, and bush. Values of other carbon stocks was obtained from the results of studies that have been done such as oil palm and rice fields.

The PT KPS total carbon stock are 126,663.42 tones C include oil palm, while total carbon stock without oil palm are 24,278.91 tonC. Total carbon stocks of old shrubs is 12,302.65 tonC; young shrubs of 9873.68 tonC; oil palm 102,384.50 tones C; paddy field to 112.08 tones C and shrubs at 1,990.50 tones C. For bodies of water, residential and open land does not have a carbon stocks because there is no vegetation on it. The average total carbon stocks in PT KPS at 40.60 tones C / ha.

The distribution of carbon stocks in this study are presented in the distribution map carbon stocks. This map illustrates the distribution of carbon stocks in each land cover except palm oil. This distribution was to show the locations of PT KPS, which has reserves of high carbon to low.

Figure 6. Map of Carbon Stock in PT. KPS

3. Summary of GHG Emissions 3.1 Description of all areas of significant sources of GHG emisions and sequestration related to the proposed development This emission sources included in the calculator are : a. Land clearing; b. Manufacture of fertilisers and transport to the plantation; c. Nitrous oxide and carbon dioxide resulting from the field application of fertilisers and mill by-products and other organic sources such as palm litter; d. Fossil fuel used in the field (mainly for harvesting and collection of FFB); e. Fossil fuel used at the mill; f. Methane produced from palm oil mill effluent (POME); and

g. Carbon dioxide and nitrous oxide generated by the cultivation of peat soils,

In addition, the following GHG fixation and credits are considered: h. Carbon dioxide fixed by oil palm trees, ground cover and carbon sequestered in plantation litter (see crop sequestration, below); i. Carbon dioxide fixed by biomass in conservation areas; j. GHG emissions avoided by the selling of mill energy by-products (e,g, electricity sold to the grid; palm kernel shell sold to industrial furnaces), Items that are not included in the budget are the nursery stage, pesticide treatments, fuel used for land clearing, emissions embedded in infrastructures and machines, and the sequestration of carbon in palm products and by-products.

4. References a. Analisis Mengenai Dampak Lingkungan (AMDAL-SEIA) conducted of PT. Borneo Lestari, East Kalimantan No 188.4.45/795/ HK/ XI/ 2009. b. High Conservation Value Assessment(HCVA) report conducted of Daemeter Consulting date on July 2013 c. Social Impact Assessment (SIA) report conducted of Daemeter Consulting date on June 2013 d. Land Use Change (LUC) report conducted by Forestry Faculty, Institut Pertanian Bogor date on October 2015 e. Carbon Stock Assessment (CSA) report conducted by Forestry Faculty, Institut Pertanian Bogor on October 2015

5. Summary of Management and Mitigation Plans (Carbon Stocks and GHG Emissions)

5.1 Plan of the new development which indicates the carbon stock and presence of peat soil within the area to be developed and the area to be conserved

Planted area in PT. Karya Prima Agro Sejahtera (Estate LTE & SWE) of 1,736 Ha, and the planning for planted in 2016 of 100 Ha, then in 2017 of 232 Ha and an area of 1,383.63 Ha is used for buildings, mills, riparian zones and road. The priority land clearing are in area which have low carbon stock ( See Figure 6).

5.2 The results of scenario testing showing GHG emissions a. Table 3. GHG Emission from land clearing on 2008 – 2015

Year of Carbon Stock GHG Emission Land Cover Acreage planting (ton C/ Ha) (ton C)

Belukar Tua 5.5 35.9 197.3 Belukar Muda 211.3 17.08 3,608.7 2008 Semak 58.1 3.95 229.6 Lahan Terbuka 30.1 0 - Kelapa Sawit 0.0 0 - Belukar Tua 0.2 35.9 6.2 Belukar Muda 74.1 17.08 1,266.0 2009 Semak 35.3 3.95 139.3 Lahan Terbuka 12.4 0 - Kelapa Sawit 0.0 0 - Belukar Tua 0.0 35.9 - Belukar Muda 25.8 17.08 441.2 2010 Semak 9.8 3.95 38.7 Lahan Terbuka 0.0 0 - Kelapa Sawit 6.4 0 - Belukar Tua 8.2 35.9 296.1 Belukar Muda 5.7 17.08 98.2 2011 Semak 15.1 3.95 59.8 Lahan Terbuka 4.9 0 - Kelapa Sawit 2.0 0 - Belukar Tua 0.0 35.9 - 2012 Belukar Muda 32.6 17.08 556.8 Semak 2.4 3.95 9.5

Year of Carbon Stock GHG Emission Land Cover Acreage planting (ton C/ Ha) (ton C)

Lahan Terbuka 0.0 0 - Kelapa Sawit 18.0 0 - Belukar Tua 37.1 35.9 1,332.6 Belukar Muda 189.4 17.08 3,235.0 2013 Semak 74.7 3.95 295.0 Lahan Terbuka 22.8 0 - Kelapa Sawit 5.0 0 - Belukar Tua 135.3 35.9 4,856.3 Belukar Muda 392.1 17.08 6,697.3 2014 Semak 177.3 3.95 700.4 Lahan Terbuka 2.3 0 - Kelapa Sawit 0.0 0 - Belukar Tua 54.0 35.9 1,936.9 Belukar Muda 60.6 17.08 1,034.5 2015 Semak 39.8 3.95 157.1 Lahan Terbuka 3.7 0 - TOTAL 27,192

Reff: CSA report conducted of Forestry Faculty – Institut Pertanian Bogor (IPB) on October 2015

= 2.31 t CO2 e/year/ha

b. GHG Emission from fertilizer usage and N2O on 2015

= 1.58 t CO2 e/year/ha (Simplified Palm GHG C7.8 Usage-Aug 2015) c. GHG Emission from fosil fuel on 2015

= 0.1 t CO2 e/year/ha (Simplified Palm GHG C7.8 Usage-Aug 2015) d. GHG sequestration from palm oil 0n 2015

= - 12.13 ton CO2 e/year/Ha (Simplified Palm GHG C7.8 Usage-Aug 2015) e. Net GHG emission PT KPS on 2015

= - 8.14 ton CO2 e/year/Ha

5.3. PT KPS Sscenario with Relevant Spatial Map Planted area in PT. Karya Prima Agro Sejahtera of 1,736 Ha, planning for planted in 2016 of 100 Ha, in 2017 of 230 Ha. The information planning area in PT. KPS can be seen as below:

No Period (Year) Planted (Ha) Sungai Wahau Estate (SWE) 1 2016 100 2 2017 232 Total Planning Area 332

Based on CSA studies conducted by IPB, then planting plan in PT KPS will be prioritized in the area which have a low carbon stock (< 60 tones C/ Ha).

5.4 The Measurement taken to maintain and enhance carbon stocks within the new development areas.

Several stages to carbon stock assessment and GHG assessment can be used to prepare a management plan carbon stock conservation area and HCV are integrated with management oil plan plantation, as follow:

(i) Determine an important area for reserve high carbon stock from biomassa equal to the average value of carbon palm plantation. The result of of carbon stocks assesment on land cover old shrubs are amounted to 35.9 tonC / ha, the land cover of young shrubs of 17.08 tonC / ha, and the total carbon stocks is amounted to 3.95 tonC shrubs / ha. All of land cover on PT KPS has carbon stock < 60 tones/ Ha.

(ii) Determine carbon stock baseline and benchmark mitigation GHG

The initial value (baseline) carbon stocks in the concession area of PT KPS is required to assess the success of mitigation efforts GHG (P & C 7,8 3,6 RSPO and ISPO). GHG mitigation efforts will be successful if the value is negative net emissions which means the amount of carbon stocks is greater than the emissions.

The net GHG emission value is the dynamic value where the calculation process is carried out a comparison between the amount of emissions from activities such as agricultural management (fertilization), transportation, garbage and waste as well as emissions from POME, carbon stocks are also dynamic with value can be increased or decreased. The addition

of carbon stocks was obtained from the results of photosynthesis (biomass increase) of vegetation in accordance with the development and growth of plants both from the area of cultivation and conservation carbon area, While the reduction in carbon stocks can occur from land clearing activities (reduction of biomass) and aerobic decomposition, especially necromass source.

In order to determine the success of mitigation of GHG emissions, the value of carbon stocks can be used as a baseline derived from AGB, BGB, necromass and C-organic soil as a benchmark for successful management is the increase in carbon stocks derived from biomass and soil.

5.5 GHG Emissions Mitigation Plan of PT KPS

The mitigation plan are associated with oil palm cultivation & processing in the new development of plantation and mill operation.

A. Management of High Carbon Stock  Development of plantation conducted on the area which low carbon  Prioritize areas with high carbon stocks as HCV areas,  Maintain and protect the area HCV by:  Put on a HCV pal boundaries,  Socialization HCV areas to employees and local community,  Monitoring of the HCV area,  Enrichment plant HCV area with local plant species (Meranti, Kempas, Durian and so on).

B. GHG Mitigation  Zero burning land clearing  Prepare, socialize and implement the SOP (Standard Operating Procedure) about environmentally friendly land clearing / do not use fire, the use of fuel that is effective and efficient and the use of fertilizers in accordance with the specified dose  Monitoring of GHG emissions each year working environment of PT KPS  Implement energy-saving work culture by: - Use of fuel effectively and efficiently - Restrictions on the use of electricity when they are not in use - The use of an electric appliance that consumes electrical energy is low

 Using plant waste to improve soil fertility  Increase the use of organic manure / compost from household waste in the work

5.6 The Plan for monitoring the implementation of selected scenario for new development including measures for enhancing carbon stock and minimising GHG emissions a. Monitoring and evaluation of the conservation of carbon stocks (Monev) In order to determine the successful management of carbon stocks and GHG mitigation , it is necessary to the efforts of monitoring and periodic evaluation . Related to the results of this study, the efforts of monitoring and evaluation can be carried out as follows : In order to know the successful management of carbon stocks and GHG mitigation. it is necessary to the efforts of monitoring and evaluation are conducted regularly. In connection with the results of this study. The efforts of monitoring and evaluation can be carried out as follows:  Establishment of permanent plots vegetation analysis in the area of carbon conservation or HCV (areas with carbon stock values> 60 ton C / ha) and in the areas planted with oil palm. Number of permanent plots is proportional to the level and extent of land cover  Perform analysis of vegetation in each of the permanent plots periodically (eg, every 6-12 months) to determine the value of biomass and its nekromassa.  Perform estimation and calculation of carbon stock every year based on the results of the above measurements.  Creating a balance of carbon each year, so that PT KPS can to know the value of net GHG emissions. b. Evaluate every form of management based on the value of the benchmark and set targets (total AGB and total GHG emission).