welcoming blue carbon in indonesian climate change framework

Welcoming Blue Carbon in Indonesian framework of climate

change management

Andi Samyanugraha

Carbon Trade Mechanism Division - DNPI

Presentation Outline

• Blue Carbon in national and international climate change policy framework.

• Current status of market-mechanism support for Blue Carbon.

• Concluding notes.

Indonesian climate change policy framework

• Law No. 6/1994: Ratifies United Nations Framework Convention on Climate Change

• Law No. 17/2004: Ratifies UNFCCC’s Kyoto Protocol

• Perpres 46/2008: Establishes the National Council on Climate Change (DNPI)

• Perpres 61/2011: National Action Plan on GHG Emissions Reduction

• Perpres 71/2011: National GHG Inventory

• PermenLH 15/2013: MRV system of mitigation actions 2014

1994

2007: Indonesia hosts UNFCCC COP13 which resulting the Bali Action Plan

2009: President Susilo announces Indonesian voluntary commitment to reduce GHG emissions by 26% under BAU level in year 2020

Indicative list of activities in achieving 26-41% GHG emissions reduction commitment (Perpres 61/2011)

Sector

Emission Reduction

(MtCO2eq.) Activities Responsible

Ministry(ies) Unilateral Supported

Forestry

and Peat-

land

672 1,039

Forest and land fire control, network system management and water

management, forestry and land rehabilitation, HTO (Industrial Plantation

Forest), HKm (Community Forest), illegal logging eradication, deforestation

prevention, community empowerment, etc.

MoFor, MoPW

Agriculture 8 11 Introduction of low emission paddy varieties, irrigation water efficiency,

organic fertilizer use, land use optimization, waste utilization, etc.

MoA, MoPW

Energy and

Transport 38 56

Bio-fuel use, engines with higher fuel efficiency standard, improvement in

TDM (Transportation Demand Management), quality improvement of

public transport and road, demand side management, energy efficiency,

renewable energy development, post-mining replanting, etc.

MEMR, MoT,

MoF, MoT,

MoSOE, DKI,

MoPW

Industry 1 5

Process modification and clean technology implementation, energy

management in energy-intensive industries e.g. cement, ozone-depleting

substances eradication, etc.

MoI

Waste 48 78 Waste management by 3R, and urban integrated waste water

management

MoPW

TOTAL 767 1,189

Blue Carbon is listed as supporting activities by MMF* in Perpres 61/2011 No. Action Plan Target Period

1 Marine Carbon researches 5 researches 2010-2014

2 Marine Hazard Study in response to Climate Change in SEA Region

2 studies 2010-2012

3 Implementation of Indonesia Global Ocean Observing System (INAGOOS)

2 activities 2010-2014

4 Implementation of Indo-China Ocean and Climate Research Centre

Research in 5 locations

2010-2014

5 Detailed zoning plans of “minapolitan” areas 400 plans 2010-2020

6 Coastal ecosystem rehabilitation 300,000 Ha 2010-2020

7 Marine conservation area management Implementation in 9 million Ha

2010-2020

8 Marine conservation area rehabilitation Implementation in 9 million Ha

2010-2020

*MMF=Ministry of Marine & Fisheries

Blue Carbon in the 2nd National Communication

• There is no reference of Blue Carbon in the 2nd National Communication to the UNFCCC, nor the National GHG Inventory.

• Coastal and Marine sector is seen more as the affected sector, which requires a lot of adaptation efforts, despite its contribution in GHG emission.

• However, some numbers are presented in the document that indicates Blue Carbon importance, i.e. loss of mangrove area from 3.7 mio Ha (1997) to 1.5 mio Ha (2005) and 20-25% damage of sea grass areas.

Blue Carbon in the upcoming National GHG Inventories

• According to Perpres 71/2011, Coastal and Marine sector is not deemed as GHG emission source to be included in national inventory. However, Minister of Environment can put additional sources to be included whenever necessary.

• According to IPCC Guidelines, a source with significant emissions shall be incorporated in the Inventory.

• Until the magnitude of Blue Carbon emissions/removals in Indonesia are known and considered as significant, there will be no obligation to measure and report it for National GHG Inventory.

• BUT, companies in coastal & marine industry may need to measure and report their GHG emissions from energy and product use. (Subject to future regulation from the Ministry of Environment.)

Tapping climate change finance for Blue Carbon

• COP15 comes with the developed countries commitment to mobilize funding for adaptation and mitigation of climate change $100 billion a year in 2020.

• COP19 comes up with continuing works on mechanisms (new-market, various approaches and non-market) and a package of 7 decisions in REDD.

Blue Carbon’s supporting activities in Perpres 61/2011 (RAN-GRK) and beyond, either funded by national budget or international donor, should be targeted to increase readiness in accessing this upcoming climate change finance to support Indonesian development in coastal & marine sector as well as improving its resilience of climate change impacts.

Steps Forward

• Blue Carbon likely will consist both direct- and indirect-emissions of greenhouse gases.

• Next steps in Blue Carbon will include:

a) Defining the scope and coverage of Blue Carbon.

b) Estimating the Blue Carbon status and projection of emissions and removals.

c) Establishing the monitoring and reporting system, including the relevant methodologies.

d) Design, test and implement incentive mechanisms for Blue Carbon using national budget and international grants with a vision to scale up using the upcoming climate finance.

e) Determine Indonesia position in the UNFCCC negotiation dynamic that inline with Blue Carbon development.

Blue Carbon activities in international carbon market

• Blue Carbon is the greenhouse gases’ sequestration, emissions and removals from the coastal & marine ecosystem affected by anthropogenic activities within it, thus is possible to be incentivized using market-based-mechanisms, i.e. carbon market, or REDD+.

• Currently, there are Blue Carbon methodologies/projects in international carbon market BUT the number is very small compare to the other types.

Name of carbon market mechanism

Blue Carbon methodology Status Number of

project using the methodology

Clean Development Mechanism

Afforestation and reforestation of degraded mangrove habitats Approved -

Afforestation and reforestation project activities implemented on wetlands

Approved 1

Afforestation and reforestation of degraded tidal forest habitats Submitted -

Verified Carbon Standard

Methodology for Tidal Wetland and Seagrass Restoration First assessment -

American Carbon Registry

Restoration of Degraded Deltaic Wetlands of the Mississippi Delta Approved -

Domestic mechanism: The Nusantara Carbon Scheme (NCS)

• Indonesia has no carbon market drove by an emission cap. However, Indonesian National Council on Climate Change (DNPI) is now developing a GHG programme called the NCS that certify and register emissions reduction/removal.

• NCS can facilitate trading of Blue Carbon to incentivize blue carbon activities in Indonesia.

• NCS has 7 scopes as follow:

• Blue Carbon activities theoritically can be in any scope but most likely will be in scope 5 and 6.

1 Renewable energy utilization; 5 Aforestation & reforestation;

2 Energy efficiency 6 Reducing emissions from deforestation and forest degradation

3 Industrial efficiency improvement 7 Sustainable agriculture

4 Sustainable waste management

Example of Blue Carbon activities in carbon market (1)

Title : Oceanium mangrove restoration project

Location : Senegal

Mechanism applied : Clean Development Mechanism

Status : Registered

Emissions reduction : Estimated at 2,704 tCO2e/year

Project description :

Project activity plans to establish over the period 2008 – 2009 1,700 ha of mangrove plantations on currently degraded wetlands in the Sine Saloum and Casamance deltas, Senegal. Carbon dioxide will be removed from the atmosphere and stored in carbon pools within the project boundary through the photosynthesis of the planted trees. The project is developed and implemented by Oceanium, a Senegalese NGO, and funded by Danone which finances the project through the “DANONE FUND for NATURE” carried by Livelihoods Fund.


Title : Mangrove Restoration and Coastal Greenbelt Protection in the East Coast of Aceh and North Sumatra Province, Indonesia

Location : Indonesia


Status : Granted Letter of Approval; not yet in CDM pipeline

Emissions reduction : Estimated at 56,662 tCO2e/year


The objectives of the project among others are to restore the degraded 5000 Ha mangrove ecosystem, to protect the existing coastal green-belt and to facilitate the improvement of income generation for the local community groups. The project will not only improve the ecological functions of the mangrove ecosystems by reducing the natural disasters (e.g., typhoon, strong sea wave or tsunami) but also will act as ‘carbon sink’ to reduce the greenhouse gas effects of global climate change, and will further promote sustainable local economic development. The project proponent is YAGASU Foundation supported by Livelihoods Fund.


Title : Small-scale and low-income community-based mangrove afforestation project on tidal flats of three small islands around Batam City, Riau Islands Province, Republic of Indonesia

Location : Indonesia


Status : In validation

Emissions reduction : Estimated at 3,430 tCO2/year


This project will carry out mangrove afforestation around Batam City totaling 115 ha. The species to be planted, Rhizophora mucronata and Rhizophora apiculata, are the major species in South-East Asia and deemed suitable for this site. The project is led by YL Invest Co., Ltd., and the practical work will be collaborated between the Batam Municipality, PT. Yamamoto Asri, International Society for Mangrove Ecosystems (ISME) and the local community.

Mangrove project in Senegal

Mangrove project in Aceh and North Sumatera, Indonesia

Mangrove project in Batam, Indonesia

Mangrove project in Senegal

Concluding Notes

• Many things are needed to enable optimum role of Blue Carbon in coastal & marine sector development in Indonesia.

• In particular, three activities should be prioritized:

– Research to estimate emissions from destruction and degradation of coastal & marine ecosystem;

– Formulation of Blue Carbon development strategy; and

– Promoting Blue Carbon as policy option.

• Options on Blue Carbon mechanism should be elaborated as early as possible. Tapping international climate finance post 2020 will need sectoral readiness that has to be build from now.

• Existing instruments should be used as building blocks to speed up development and ensure easy harmonization between policies.

Possible Blue Carbon Scheme

National Budget

International Grants, e.g. GEF, World Bank, etc.

Blue Carbon Mechanism (Performance-Based-Grant)

Blue Carbon MRV System

Carbon/MRV Mechanism, e.g. NCS, CDM, JCM, etc.

National MRV System

Blue Carbon Programmes/Projects

National REDD+ Framework

Climate Change Finance

Flow of fund

Flow of information

Remarks:

welcoming blue carbon in indonesian climate change framework

Environment

energy management

waste management

marine carbon researches

climate change dnpi

climate change law

welcoming blue carbon

reference of blue carbon

mopw energy