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Tropical Deforestation in Indonesia Katrina Severin [email protected] Energy Law Professor Fred Bosselman December 8, 2010. Presentation Overview. Impacts of D eforestation - Climate Change Indonesia - New democracy

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Tropical Deforestation in Indonesia Katrina [email protected] LawProfessor Fred Bosselman December 8, 2010
presentation overview
Presentation Overview
  • Impacts of Deforestation

- Climate Change

  • Indonesia

- New democracy

- Demand for timber, palm oil, biofuels

3. International Policy

-REDD, Reduced Emissions

from Deforestation and Degradation

4. Future Prospects

1 the role of tropical forests
1. The Role of Tropical Forests
  • Filter air
  • Store and sequester carbon
    • Afforestation pluses
    • Store 50% more carbon
  • Keep the earth cool
    • Regulate temperature
    • Adaptation to climate change
  • Regulate rainfall
  • Nurture its biodiversity
  • Provide valuable resources
deforestation trends
Deforestation Trends
  • In 2010, Indonesia fastest deforestation rate in the world
  • 40% lost since 1950
  • In 1900, 170 million hectares, today 98 mh
  • Losing 2% each year, 1.8 million hectares=7,000 sq miles
2 indonesia
2. Indonesia
  • Sumatra
  • Kalimantan
  • Sulawesi
top greenhouse gas emitters mtco 2 e
Top Greenhouse Gas Emitters MtCO2e
  • peat decomposition
  • peat fires/slash and burn
  • forestry/land use changes

2007 World Bank

causes of forest loss in indonesia
Causes of Forest Loss in Indonesia
  • Corrupt rule
  • Weak protection of
  • communities rights
  • Unenforced laws
  • Short term economic growth
suharto s kleptocracy
Suharto’s Kleptocracy
  • 1967 ousted communists
  • “New Order” regime
    • Development agenda
    • natural resource exploitation
  • State claimed 90% of country’s forest
    • Military as overseer of forests
  • Timber concessions as political favors
    • 62 million hectares to cronies
  • Subsidies to timber industry
president yudhoyono any better
President Yudhoyono: any better?
  • Former army general, elected in 2004
  • “Collusive Democracy”
  • Pledged 26% GHG emissions cut by 2020
  • Transparency International
    • Corruption Perception Index 110/178 countries
    • In Suharto’s day, top 5
  • Tenure disputes and violent conflicts

over ownership rights

government promises yawn
Government Promises...yawn
  • 1980 Ban on log exports
      • Suharto cornered market
  • Government Reforestation Fund
      • $5 billion embezzled
  • Industrial tree plantation policy
      • Permits are pretext to liquidate natural forest
  • 2007 Announced plan to cut forest fires in half
      • Up 60%
  • 2011 2 year moratorium on new concessions
      • New sizeable concessions just granted
demand for timber palm oil and biofuels
Demand for Timber, Palm Oil, and Biofuels
  • Pulp and paper exports

-Demand 4.9 million m3/yr in 1990 to 36.7 million m3/yr in 2008

-APP and April largest exporters

-Forestry revenues $20 billion

  • Largest producer of palm oil
    • Home to young tree population, increased yields

and acreage

  • Biofuels
    • Rising global demand for alternatives to carbon-based fuels
    • Cheap availability of feedstock
3 international help
3. International Help?
  • REDD-Reduced Emissions from Deforestation and Degradation
      • Outcome of governments, NGOs, scientists, and investors
      • Rich countries pay poor ones
  • 2005: COP11 Montreal, Papua New Guinea and Costa Rica propose including tropical deforestation into UNFCCC CDM mechanism
  • 2007: COP13 Bali , REDD approved
  • 2009: COP15 Copenhagen
      • Developed countries pledged $4.5 billion for REDD
      • INVEST –PES
how do you count it
How Do You Count It?
  • Recognizing seriousness of trend complicated by difficulties in:

1. Creating baseline inventory

2. Determining area

3. Accounting for different rates of deforestation

4. Ineffective, inefficient and immature carbon markets

5. Old growth primary v secondary forest

redd in indonesia
REDD in Indonesia
  • Indonesia has 17.5% of all REDD projects globally
  • Norway promises $1 billion
  • APP will not move ahead with a 15,000 hectares project in Riau province
  • Indonesia’s National Council on Climate Change puts opportunity cost of forgoing oil-palm plantation at $30/ton.
cop16 cancun focus redd
COP16: Cancun, Focus REDD
  • 2010: REDD Partnership, Oslo
      • 58 countries
      • Norway and UK pledged cash by 2012
      • Forest-carbon credits or carbon tax?
      • EU- ETS needs to be updated
  • Need to secure financing
  • Mechanism for Measuring, Reporting and Verification (MRV)
  • But.... high level of mistrust
prospects for success
Prospects for success?

PNG

Indonesia

Ownership by state in flux

Private sector ill-developed

Heavy NGO presence

Poor political will

Government subsidies for timber plantation development only increasng

Uniliver, Kraft, P & G

FSC dropped major timber players

  • Ownership is customary
  • Private sector developed
  • Heavy NGO presence
  • Political will
    • Office of Climate Change senior officials suspended
  • Forest Authority instituted timber-legality tracking system
  • FSC active
4 prospects for slowing deforestation
4. Prospects for Slowing Deforestation
  • Clearer definition of land ownership, title tracts, and

contracts

  • Accountability of local government officials
  • Withdrawal of development assistance if sustainability goals not met
  • US needs to show leadership
4 the future
4. The Future?
  • Begin a slow phase out ineffective subsidies of fossil fuels and timber products
  • Provide free legal assistance clinics in indigenous areas
  • Develop partnerships between big multinationals
      • Reign in China who is planting trees by the millions!
  • Invest in a monitoring, verification, and auditing mechanisms
  • ... Reformists are gaining ground !
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