REDD+ Feasibility Studyin Indonesia

17 February 2011
International Technical Seminar on REDD+1Marubeni Corporation1-1) Projected Emissions (Indonesia)（DNPI,2010)2011 Marubeni Corporation All Rights Reserved.2

1-2) Potential to Reduce Emissions●Projected abatement potential: 1,770 million tCO2e/year （LULUCF+Peat / compared toBAU in 2030)（Mitigation measures: Reduce Deforestation 570 MtCO2e／Zero Burning 310 MtCO2e／Reduce peat-decomposition 250 MtCO2e／SFM 240 MtCO2e／Reforestation 150 MtCO2e）（DNPI,2010)2011 Marubeni Corporation All Rights Reserved.3

1-3) Concept of Bilateral Offset Scheme¾ Bilateral Offset Mechanism could incentivize early and effective
implementation of actions against Deforestation and Forest Degradation
through prompt development and operation of REDD project inIndonesia by filling the gap between the current voluntary scheme andthe future crediting mechanism under the UNFCCC.
(Current)(・・2012・・)(2015?～ )VoluntaryScheme

Bilateral Offset
Mechanism

Crediting Mechanism
under UNFCCC・ Lack of financial
incentive
・ Difficulties in
actual operationand developmentof projects(few buyers)

9Robust financial incentive
9Enable prompt and robust
development and operation ofREDD+ projects
9Earlier implementation ofactions against Deforestation
and Forest Degradation
9Earlier implementation ofGHG emissions reduction

9Smooth transition to thenew framework under
UNFCCC

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2-1) Outline of the Feasibility Study
Objective
Objective

To analyze feasibility of GHG emission reductions through REDD+ project
developed by Japanese private companies
Study
Study Items
Items

Partners/ProjectPartners/Project Location
Location①Analysis of Current Situation○ERM Japan Ltd.

②Establishment of REDD+ Project Plan

○ITTO

③Establishment of REDD+ Project Scheme○Ministry of Forestry (Indonesia)④Consideration of MRV/Methodology○Accounting/Legal Firm

(Including Expert Meeting）⑤Consideration of Issues／Countermeasures

Expected
Expected Reductions/Reductions/ Measurement
Measurement Method
Method○Location: Kalimantan / Sumatra
Size: hundreds of thousands ～millions -tCO2/y

GHG emissions from forest
Reference scenario(Baseline) established byhistorical deforestation etc.

Recognized as emissions⇒CreditField sampling data and satellite
imagery data by a satellite such as
JAXA’s ALOS will be utilized

Actual emissions underconservation activities
Time2011 Marubeni Corporation All Rights Reserved.5

2-2) Progress of Activity: Site Selection
A definitive project site for the full- feasibility study will beselected by the end of March 2011Location

SumatraKalimantan

Area

70,000 ha

200,000 ha

Remarks

Peat land

Peat land Evaluation Criteria：a) Data Availabilityb) Ecosystem, Biodiversityc) Threat to forest resourcesd) Social, economy and culture, Community dependence, Conflicte) Economic feasibilityf) Governance2011 Marubeni Corporation All Rights Reserved.6

3-1) Progress of Activity: Measuring Carbon StockEMISSION
FACTOREMISSION=ACTIVITY
DATA

CO 2X

equivalent

Landcover data/ALOSImagery

Result from Ground Measurement,
Field Check And PSP/TSP data
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3-2) Landcover of Central Kalimantan Site (Landsat)

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3-2) Landcover of Riau Site (Landsat)

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3-2) Landcover Change in 2 Sites (Landsat, 2000-2009)102011 Marubeni Corporation All Rights Reserved.

3-3) Landcover by Alos Data (Riau)
Based on ALOS AVNIR imagery ( April 2010 and August 2009)

Low Density Primary Swamp Forest
Middle Density Primary Swamp Forest
High Density Primary Swamp Forest
Middle Density Secondary Swamp Forest
Low Density Secondary Swamp Forest
High Density Secondary Swamp Forest
No Data (Cloud cover)/Non Forest
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3-3) Landcover by Alos Data (Central Kalimantan)
Based on ALOS AVNIR imagery(September 2010 and April 2009)122011 Marubeni Corporation All Rights Reserved.

3-4) Sampling Plot (Riau Site)13
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3-4) Sampling Plot (Central Kalimantan)

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3-5) Ground Measurement
RIAU SITE

CENTRAL KALIMANTAN SITE

17 – 26 December 201015 – 23 JANUARY 2011

FIVE (5) PLOTSEIGHT (8) PLOTS

37 SPECIES± 32 SPECIESPRIMARY FOREST,SECONDARY FORESTSECONDARY FOREST, GRASS(EX FOREST FIRE)

Measure DBH and shrub‐non tree biomass samples
Collect the wood samples for wood density analysis
Collect the herbarium
Measure of peat depth and also collect the peat samples
Placement of paralon pipe for measure the water table level15
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3-5) Accessibility to the plot (Riau)

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3-5) Accessibility to the plot (Central Kalimantan)

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3-5) Vegetation Condition in the plot (Riau)

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3-5) Vegetation Condition in the plot (Central Kalimantan)

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3-5) Collection of the samples

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3-6) MRV / Methodologies: Framework for Consideration
Consideration of Existing REDD Methodologies
VCS VM0004（Applicable to peat land）<Points to be considered>・Measurement method in peat land・Applicable only to planned deforestation<Measurement method of the carbon stock>
3 methods presented

Comparison / StudyVCS REDD related
other methodologies（4 methodologies）

Expert Meeting<Objective> To Consider REDD+ MRVand Methodology under the Bilateral
Offset Mechanism（especially to address
the expected gap between required
criteria under the future standard andexisting REDD standard）※Compare and study the existing
methodologies and consider
countermeasures to the issues<Next Step> Consultation withIndonesian side on MRV which is underconsideration in Indonesia

・Applicable to unplanned deforestation aswell・Base line setting21
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4-1) Some Important REDD Initiatives●Development of REDD Compliance Regime in California, US（GCF; The Governors’ Climate and Forest Task Force）-Subnational Collaboration(Brazil : 5 states, Indonesia : 5 states, Mexico: 2 states, Nigeria ; 1 state)-Nesting of projects under subnational accounting is considered●Establishment of REDD Carbon Fund by Private Sector-Private companies announced to establish carbon fund worth €50-100 Mil.
-Purchase VCS/ CCBA based projects-Expect demand under future compliance regime●VCS “Jurisdictional and Nested REDD Initiative”-Subnational Baseline and Accounting Framework
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4-2) Challengesi) Development of MRV/ Methodologies- Required Criteria under the Bilateral Offset Scheme- National MRV in Indonesiaii) Policy Design for Subnational Accounting-National approach with subnational implementation-Leakage and Non-Permanenceiii) Framework-Credit Issuance, Certification, Registry etc.

232011 Marubeni Corporation All Rights Reserved.

Contact
Koji Tanigaki
Manager,
Email: TanigakiｰK@marubeni.com
Environmental Solutions Sec.
Global Environment Projects Dept. Tel: +81-3-3282-2526
Fax: +81-3-3282-2616
Marubeni Corporationwww.marubeni.com24
2011 Marubeni Corporation All Rights Reserved.