REDD, not green, scheme for reducing emissions

Adianto P. Simamora, The Jakarta Post, Bogor

In front of 40 international parties in Bogor on Thursday, Indonesia tabled a new pilot project that would see developing countries adopt REDD - an incentivized program to better manage forest emissions.

REDD (Reducing emissions from deforestation in developing nations) is an alternative to Kyoto Protocol's clean development mechanism (CDM) and would see forested countries reap more financial benefits by remanaging their forestry sector.

Many forested countries have not been able to adopt Kyoto's CDM into their forestry sector, which was one the main incentives behind the development of REDD.

The government said it would select four forests from across the country to pilot the project, which involves financial incentives for better managing forestry activities.

Senior advisor on partnership affairs at the forestry ministry Sunaryo said, "We will select (the) forests for the project and hopefully we can show them to the world in Bali," Sunaryo said.

"We hope the Bali meeting can adopt the concept," he said.

The four forest projects would be located in South Kalimantan, South Sulawesi, North Sumatra and Southeast Sulawesi.

Included in the proposal is the Heart of Borneo, a total of 220,000 square kilometers of equatorial rainforest encompassing Brunei, Malaysia and Indonesia on Kalimantan island.

Bali is set to host the United Nations Framework Convention on Climate Change Conference from Dec. 3 to 14.

The REDD mechanism has been proposed by Indonesia for the world's rainforest countries and should see some financial benefits arise for efforts made to better manage deforestation.

The government said it was hopeful other developed countries would accept the concept.

It said REDD would help significantly reduce greenhouse gas emissions and would help address climate change.

The Kyoto Protocol on CDM only acknowledges aforestation and reforestation projects.

The protocol defines aforestation as converting land unforested for a period of at least 50 years to forested land via proactive seeding and planting management.

Reforestation is defined as the conversion of land area to a forested area after December 1989.

President Susilo Bambang Yudhoyono said Wednesday countries that adopted the REDD program would be eligible for financial incentives from developed countries to help cope with any economic losses.

"The carbon market for REDD should provide a better price for each ton of carbon saved, and that price should be determined by the market so that the tropical rain forest countries do not have to shoulder the burden of opportunity costs," he said.

A ton of carbon dioxide stored by a forest is priced at US$3 to $5 and CDM from the energy saving sector is currently worth between $5 and $10.

Yudhoyono also said multinational companies in developed countries should play a crucial role in efforts to forest and prevent deforestation.

Forestry has long been a primary source of income for Indonesia. Data from the forestry ministry said the deforestation rate in Indonesia was 1.8 million hectares between 1987 and 1997.

The rate rose to 2.8 million hectares per year until 2000. Between 2000 to 2006 deforestation fell to 1.08 million hectares per year.

Emissions caused by changes in forests represent about one-fifth of the world's total emissions.

Indonesia currently has 120 million hectares of forest -- the world's third largest after Brazil and the Democratic Republic of Congo.

Some 24 CDM projects have been developed across the archipelago, most of which have focused on alternative energy sources but none of which have been UN-approved for carbon trade to-date.