Carbon Forestry: Who will benefi t? Proceedings of Workshop on Carbon Sequestration and Sustainable Livelihoods Editors Daniel Murdiyarso Hety Herawati Carbon Forestry: Who will benefi t? Proceedings of Workshop on Carbon Sequestration and Sustainable Livelihoods Editors Daniel Murdiyarso Hety Herawati ISBN 979-3361-73-5 © 2005 by CIFOR All rights reserved. Published in 2005 Printed by Inti Prima Karya, Jakarta Cover photos by Daniel Murdiyarso, Meine van Noordwijk, Plinio Sist Published by Center for International Forestry Research Jl. CIFOR, Situ Gede, Sindang Barang Bogor Barat 16680, Indonesia Tel.: +62 (251) 622622; Fax: +62 (251) 622100 E-mail: [email protected] Web site: http://www.cifor.cgiar.org Contents Foreword v Preface viii Sustaining Local Livelihoods through Carbon Sequestration Activities: A search for practical and strategic approach 1 Daniel Murdiyarso A Short Note on the Social Side of the Modalities and Procedures for Afforestation and Reforestation Projects under the CDM 17 Claudio Forner Should We Include Avoidance of Deforestation in the International Response to Climate Change? 26 Bernhard Schlamadinger, Lorenzo Ciccarese, Michael Dutschke, Philip M. Fearnside, Sandra Brown, Daniel Murdiyarso Bringing Development into Carbon Forestry Markets: Challenges and outcomes of small-scale carbon forestry activities in Mexico 42 Esteve Corbera Social and Legal Issues in the Implementation of Sustainable Forest Management and Environmental Service Projects 57 Alexander Restrepo Quinceo Pulpwood Plantations as Carbon Sinks in Indonesia: Methodological challenge and impact on livelihoods 74 Romain Pirard iii iv | Contents What Can a Clean Development Mechanism Do to Enhance Trees in the Landscape? Experience with Rubber, Coffee and Timber-based Agroforestry Systems in Indonesia 92 Meine van Noordwijk, Atiek Widayati, Betha Lusiana, Kurniatun Hairiah, Bustanul Arifi n Carbon Decline from Peatlands and Its Implications on Livelihood Security of Local Communities 112 Gusti Z. Anshari and Armiyarsih Community-based Approach to Peatland Adaptation and Management in Central Kalimantan, Jambi and South Sumatra, Indonesia 124 Yus Rusila Noor, Jill Heyde, and I Nyoman Suryadiputra Experiences in Working Closely with Communities in Carrying Out Peatland Hydrological Restoration Activities at the One Million Hectares Ex-Peatland Project (PLG), Central Kalimantan, Indonesia 139 Makmun Ansori and Alue Dohong Microwatershed Enhancement through Community Participation: A pilot approach to carbon fi nance 149 Adelina C. Santos-Borja and Rodel D. Lasco Institutional Perspectives of Lifescape Co-Management: Lessons learned from RUPES sites in Sumatra, Indonesia 156 Bustanul Arifi n Gender and Climate Change in Indonesia 176 Garry A. Shea, Ika Francisca and Anny Andaryati Reviving Traditional NRM Regulations (Tara Bandu) as a Community-based Approach of Protecting Carbon Stocks and Securing Livelihoods 197 Marlon Cardinoza Glossary 211 Foreword I am really interested in the theme of the workshop “Carbon Sequestration and Sustainable Livelihood,” due to its close relation to the present global issue on climate change. We are aware that forest ecosystems is not only rich in biodiversity and genetic pools but also very important in watershed protection that regulate local hydrology and carbon pools that regulate global climate. Forest use and management practices in the past, which were concentrated more on timber production than forest services, resulted in a number of environmental and social problems, such as, land degradation, biodiversity loss, greenhouse gas emissions, and reduced access for local people. That means the forest use and management during this period was more timber-oriented than resource-based. Thus, important ecological values in the form of forest environmental services like ecotourism, water use, biodiversity, carbon stocks, with excellent potential development, were regarded as of minor importance. Forest use diversion that stresses forest functions must be seen as a wise perspective. Forest environmental services, either derived from conservation forests, protected forests or from production forests should be appropriately managed and appreciated so as to provide a sustainable source of income for local people. This means forest resources not only provide tangible products like timber, but also they produce intangible ones in the form of forest environmental services, while maintaining conservation values and promoting local people’s well-being. With respect to the shifting paradigm of forest management from timber-oriented to resource-based management, it stands to reason that the spirit of using the forest environmental services must be practically actualized and that carbon trade forms one of the promising potentials that need to be explored. In relation to the United Nations Framework Convention on Climate Change (UNFCCC), the Ministry of Forestry takes part in mitigation and adaptation activities that facilitate the implementation of both afforestation and reforestation under the Clean Development Mechanism (CDM) projects in Indonesia, either through the Kyoto Protocol or through other means outside the Protocol. The mitigation activities involve principally forest-tree planting with the main purpose of increasing carbon sequestration. Meanwhile, adaptation efforts are concentrated more on the establishment of databases and other programs related to levels of vulnerability, effects of increasing global warming (local climate change), as well as anticipated measures against climate v vi | Foreword change. It is estimated that the adaptation activities may attract global concern in the future. It is one of the decisions COP10 is dealing with, not only, with the world strategy on the adaptation activities, but also how all nations can provide inputs for the program. Implementation of the Convention, as it relates to the adaptation and mitigation efforts of the Ministry, is embedded in the Ministry’s middle-range planning in the form of a strategic plan from 2005 to 2009. This strategy will be executed on a fi ve-year basis. From the legal point of view, Indonesia has ratifi ed the UNFCCC through Act No. 6/1994, the Kyoto Protocol through Act No. 17/2004, and established the Designated National Authority as declared by the Ministry of Environment of the Republic of Indonesia. Forestry Minister Regulation No. 14/2004 directs the mechanism for afforestation and reforestation of CDM projects, with the purpose of assisting project developers in completing project concept note and land verifi cation as well as guiding them to ensure that projects contribute to sustainable forest management efforts. This condition implies that Indonesia is legally ready to execute CDM afforestation and reforestation projects. Meanwhile, in terms of technical and fi nancial matters, the Ministry has several tasks to accomplish, particularly in relation to capacity building. Five locations have been selected on a pilot basis to elucidate a number of matters, such as the progress of CDM afforestation and reforestation projects (both small and large scale), explaining Regulation No.14/2004, and developing project design documents and project concept notes. Investor guides, data and information compilation eligible for the Kyoto Protocol, and budget estimation are also included in the activities. In anticipating the carbon trade in the forestry sector, a number of things are expected: • All stakeholders are expected to play a role and participate in facilitating and assisting in the implementation of CDM afforestation and reforestation projects for the fi rst commitment period of 2008-2012. • The use of the forest’s environmental services through CDM afforestation and reforestation projects provides a synergy between hydrological protection and biodiversity conservation. • It is expected that afforestation and reforestation activities will help achieve sustainable forest management through critical land rehabilitation while providing incentives to developers from sales transaction of Certifi ed Emission Reduction (CER). • All stakeholders need to pay attention to the preparation and implementation of small-scale afforestation reforestation projects so as to empower local people, generate local income and involve local people in CDM projects. • It is expected to enhance collaboration and as well as improve access to funds for adaptation and climate change through the Global Environmental Facilities (GEF), bilateral donors like ODA, and multilateral bodies. Foreword | vii It is expected that during this workshop, communication and information sharing among stakeholders will take place, in particular, in terms of both small- and large-scale afforestation and reforestation CDM projects. Some policies and program activities in the forestry sector, either in relation to mitigation or adaptation activities, may be adopted as inputs for developing as well as strengthening community-based natural resources management systems. I learned that there is a lot of progress that has been experienced by our colleagues in developed countries in this fi eld of carbon sequestration and sustainable livelihoods. I hope we can learn from them in order to enhance our efforts here in Indonesia. Finally, I hope that this workshop will bear a fruitful outcome for all of us, in particular, in relation to the participation of this country in the real implementation of CDM projects. Thank you. Bogor, 16 February 2005 Koes Saparjadi Director General, Forest Protection and