Forest Carbon Partnership Facility (Indonesia)

Initiative

Summary

The FCPF has provided grants of $3.6 million USD to support the management of the readiness process (institutional setting and regulatory framework, capacity building, etc); to support establishment of REL and MRV; and to facilitate new REDD demonstration activities. 

Indonesia is confronted with serious environmental issues including rapid deforestation, illegal logging, forest fires, and peat-land degradation, which cause elevated levels of greenhouse gas emissions (GHG) emissions. These problems result in global and local social and environmental impacts, undermine the long term revenue generation potential of the resource base, and undermine community livelihoods. The Forest Carbon Partnership Facility (FCPF) assists developing countries in their efforts to reduce emissions from deforestation and forest degradation (REDD). Indonesia was one of the first countries to request support from the FCPF to build its capacity to reduce emissions from deforestation and forest degradation and to tap into any future system of positive incentives for REDD.

Indonesia’ REDD readiness planning is supported by UNREDD ($6 million) and the AUSAID Indonesia Australia Forest Climate Alliance ($30 million). Both programs have been operational since 2009 and are mostly concentrating their activities on (i) MRV and Reference Emission Level setting, (ii) subnational readiness activities and (iii) outreach and communication.  Additionally, Norway’s Forest Climate Initiative and Letter of Intent provides $30 million in Phase 1 of a three-part results based program.  As part of the commitment under the Norway Letter of Intent, the REDD Task Force is asked to coordinate the preparation of the REDD+ Strategy.  FCPF will therefore only support strategic analytical inputs and a consultative process, but not the entire REDD initiative.  Given the multiplicity of actors and the small size of the FCPF grant compared to other efforts, the FCPF grant cannot be held responsible for the entire national REDD strategy, but should be seen as a contributor of specific inputs into a broader multi-donor, multi sectoral dialogue and development process.The FCPF support is national in scope with some research and capacity building in sub-national areas. Readiness activities will contribute with information, research and capacity building elements to a future national REDD+ framework. These elements will complement other activities undertaken by the Government, NGOs, donors and other organizations.

Stakeholder engagement and participation

The Grant will be supported by a significant consultation and outreach component. This component will cover a wide range of stakeholder consultations at various locations, and build on the REDD+ consultation process that the GoI is already implementing. The objective of consultations will be to achieve the stakeholders’ effective participation in relevant analytical work  financed under the FCPF Grant.  Consultation will allow  the integration of stakeholder inputs, including inputs from Indigenous People, into the Grant’s analyses and recommendations.  The principle used in consultation will be “free prior and informed consultation leading to broad community support”.   Consultations will be inclusive, conducted in local languages as appropriate, and will allow for enough time for community reaction.  Consultations will be conducted with regional/local organization, with national legitimate IP organizations such as AMAN, as well as with a sample of IP communities on key issues.  A strategy for consultations with IP/forest-dependent communities shall be developed, either as an integral part of SESA ToR or as a separate plan, to ensure that legitimate representatives of Indigenous Peoples and other forest dependent communities will participate meaningfully in all discussions regarding  matters that may affect them, including, for example,  the revenue/benefit sharing mechanisms

Land tenure arrangements and carbon rights

The FCPF grant activities will build on and work with existing networks and institutions to support ongoing processes for strengthening the inclusion of local communities in policy development. Indigenous peoples  and other forest dependent communities  (Masyarakat Adat) have developed networks and institutions to represent themselves and engage in dialogue processes, together with CSO and think tank partners, both domestically and internationally.  

Safeguards

Although the program itself does not involve REDD+ projects, a preliminary assessments indicated that a number of World Bank safeguards policies may be triggered by future REDD+ related activities in Indonesia. A Strategic Environmental and Social Assessment (SESA) will be conducted as part of the Readiness process to assess potential impacts from national REDD+ interventions, formulate alternatives  and mitigation strategies and enhance the decision-making process around the design of the national REDD+ framework. as one of the results of the SESA an Environmental and Social Management Framework (ESMF) will be prepared, which will guide potential future investments in REDD+ Demonstration Activities, toward compliance safeguards policies.