Showing posts with label Indonesia. Show all posts
Showing posts with label Indonesia. Show all posts

Monday, November 30, 2009

NYtimes: The Road to Copenhagen - Tree Harvester Offers to Save Indonesian Forest



Ok, so I admittedly have been slacking on posting updates from the whole "Road to Copenhagen" process but frankly there is just too much happening to really make sense of it and there are daily BREAKING NEWS that aren't that interesting, such as Obama setting emissions targets, the African delegation walking out of talks, the Chinese fucking around, etc.

Anyway, I'm gonna try to post more interesting snippets and MAJOR things happening in Copenhagen over the next few weeks. Hopefully we'll get a robust internationally binding treating, but it's a long shot. Till then, check out some of the international efforts to help mitigate climate change.

This article should highlight some of the difficulties of the climate negotiations, and accounting for what should be eligible and ineligible for carbon credits.

NYtimes:

TELUK MERANTI, Indonesia — From the air, the Kampar Peninsula in Indonesia stretches for mile after mile in dense scrub and trees. One of the world’s largest peat swamp forests, it is also one of its biggest vaults of carbon dioxide, a source of potentially lucrative currency as world governments struggle to hammer out a global climate treaty. The vault, though, is leaking.

Canals — used legally and illegally — extend from surrounding rivers nearly into the peninsula’s impenetrable core. By slowly draining and drying the peat land, they are releasing carbon dioxide, contributing to making Indonesia the world’s third biggest emitter of greenhouse gases, after China and the United States.

The leaks were evident to a family of fishermen from this village, just south of the peninsula, as they paddled up a creek in a dugout canoe.

“I can tell the peat land’s leaking because the water here is getting browner and more acidic,” said Amiruddin, 31, who like many Indonesians uses only one name, as his wife, Delima, 29, scooped up the creek’s coffee-colored water to drink.

Forests like the one on the Kampar Peninsula are at the center of a growing battle over the shape of a new climate treaty and efforts to curb the destruction and degradation of forests. Though countries are expected to reach only a broad agreement at next month’s summit meeting in Copenhagen, governments, scientists, businesses and environmentalists are already arguing over what kinds of forests should qualify as carbon reducers and what kinds of projects should be rewarded financially.

The arguments over the Kampar have become particularly heated, not just because of its ecological importance, but because, so far, the most detailed plan to stop the leaks from the peat land comes from an unlikely source: a giant paper and pulp company that, according to its critics, has been one of the driving forces of deforestation in Indonesia. The company, Asia Pacific Resources International Limited, or April, says it wants to create a ring of industrial tree plantations around the peninsula’s core to preserve it.

What is more, it hopes to receive carbon credits for doing so under a United Nations program to reward nations for conserving forests and reforesting degraded ones. The program, Reducing Emissions From Deforestation and Forest Degradation, or REDD, is expected to be part of a new climate treaty. Unlike the 1997 Kyoto Protocol, a new treaty is expected to tackle deforestation, which alone accounts for 20 percent of the world’s greenhouse gas emissions. Halting deforestation in tropical forest nations like Indonesia and Brazil, the world’s fourth biggest emitter, is considered crucial to reining in global warming.

Developing nations that preserve forests would be paid with carbon credits that they could sell to industrialized nations seeking to meet emissions reduction targets. Though the program’s specifics will probably take months or years to be worked out, more than a dozen projects of the United Nations program are already under way in Indonesia, backed by such diverse entities as conservation groups, the Australian government and Merrill Lynch, in addition to paper and pulp companies.

Environmental groups say the paper and pulp companies, after years of despoiling Indonesia, should not be rewarded under the program.

“They are the ones that did the damage,” said Michael Stuewe, an expert on Indonesia at the World Wildlife Fund. “Now they’re saying: ‘We were bad boys. Now we’re good. So give us the money.’ ”

The companies argue that the United Nations program could provide them with the financial incentives to preserve forests even as they expand their operations, a goal supported by the Indonesian government, which sees the paper and pulp industry as a mainstay of the country’s economic development.

“We could perhaps reduce the annual Indonesian emissions by 5 percent with this one project,” said Jouko Virta, April’s president of global fiber supply, referring to the company’s plan to ring the peninsula’s core. “It’s so significant. One project.”

Everyone agrees, at least, on the importance of saving the Kampar Peninsula, a nearly one-million-acre peat bog on the equator inhabited by Sumatran tigers, bears, monkeys, crocodiles and other wildlife.

Most of the peninsula remains free of humans, though small fishing camps can be found up its creeks. More significantly, illegal loggers can be seen operating in bases set up along some canals and creeks. And east of here, near a village called Pulau Muda, more than a dozen houses flank a long canal jutting into the peninsula, in what appears to be the biggest human settlement on the Kampar.

Made up of decomposed trees and plants, sometimes as deep as 50 feet, the waterlogged land stores billions of tons of carbon dioxide. But once drained or cleared, the peat land releases many times more carbon dioxide than the deforestation of rain forests. Most experts believe that, as with rain forests, the protection of peat swamp forests will be eligible for carbon credits under the United Nations program.

The Kampar Peninsula is one of the last tracts of green left in central Sumatra, where forests have been cleared to make way for palm oil plantations and industrial tree plantations, especially those belonging to April and its chief rival, Asia Pulp and Paper, both owned by Indonesian conglomerates. According to the World Wildlife Fund, here in Riau, the province where the two companies have their main mills and plantations, two-thirds of the area’s forests have disappeared in the past quarter century.

Illegal loggers have also clear-cut vast chunks of forest. Migrants often slash and burn land for farming, sometimes inside national parks; like people elsewhere in Indonesia, they are often encouraged by local governments seeking to populate areas for economic or political reasons, in defiance of officials from the understaffed Forestry Ministry.

April, which, with its partners, has government-issued concessions across a third of Kampar, says its ring of acacia plantations around the core will block off any such encroachment, though it says it needs to acquire more land to complete the circle. On plantations already in operation, the company uses a sophisticated network of canals and dams that minimizes leakage from the peat land, environmental groups acknowledge.

If April acquired control over the core, it could be paid for protecting it. The company says it believes that it can be, at the very least, rewarded for the ring, about half of which would be turned into acacia plantations and half left as natural forests or what it calls “conservation areas.”

“The carbon we are storing in the conservation areas could be financed through REDD,” Mr. Virta said in an interview at April’s 4,300-acre mill, about two hours west of here by car.

Agus Purnomo, who leads the government’s National Council on Climate Change, said it would take months or years of negotiations after next month’s climate conference to determine whether April’s ring would be entitled to carbon credits.

Much will depend on whether an agreement includes stipulations against the conversion of natural forests into industrial tree plantations. Indonesia, like other countries with paper and pulp industries, counts industrial tree plantations as forests.

Environmental groups caution against any project of the United Nations program involving the conversion of natural forests into industrial tree plantations. Bill Barclay, policy director at the Rainforest Action Network, said the priority in Indonesia should be to “halt further conversion of natural forests” and “further draining of peat lands.”

But that kind of argument finds little traction in a nation with an economy that is still developing.

Mr. Purnomo, of the country’s climate change council, said government officials were worried that Indonesia’s ranking as the world’s third biggest emitter of greenhouse gases would increase pressure to reduce emissions.

“Are we going to remain underdeveloped because of that?” he asked.

Since starting operations on a new concession near here in September, April has brought jobs to Teluk Meranti. As part of its community outreach, it has brought a new generator to increase the supply of electricity and construction material to renovate two mosques. Still, Teluk Meranti had yet to buy April’s vision of the future. Villagers remained overwhelmingly opposed to the company’s presence here, opponents and supporters of the company said.

“We don’t know what we’ll get,” said Firdaus, a 39-year-old man operating a makeshift convenience store. “What rights do we have?”

He was unaware of April’s ring project. But, yes, he had heard of the importance of peat from environmental groups. “We were told,” he said, “to protect the peat for the climate.”

Wednesday, August 19, 2009

ClimateWire: How the World Bank Let 'Deal Making' Torch the Rainforests

Been working on this stuff for the past few weeks.

NYtimes:

The World Bank ignored its own environmental and social protection standards when it approved nearly $200 million in loan guarantees for palm oil production in Indonesia, a stinging internal audit has found.

The report, detailing five years of funding from the International Finance Corp. (IFC), the private-sector arm of the World Bank, lambastes the agency for allowing commercial pressures to influence four separate loans aimed at developing the industry.

"The IFC was aware for more than 20 years that there were significant environmental and social issues and risks inherent in the oil palm sector in Indonesia," auditors wrote. "Despite awareness of the significant issues facing it, IFC did not develop a strategy for engaging in the oil palm sector. In the absence of a tailored strategy, deal making prevailed."

The report(pdf) from the office of the Compliance Advisor Ombudsman comes as Indonesia prepares to enter the carbon markets by protecting its tropical forests. Working in partnership with Australia, the Indonesian government currently is working to design a national carbon accounting system. Australia is building a satellite to monitor deforestation in the Southeast Asian country, according to new U.N. submissions.

Indonesia is home to the world's second-largest reserves of natural forests and peat swamps, which naturally trap carbon dioxide -- the main greenhouse gas that causes climate change. But rampant destruction of the forests to make way for palm oil plantations has caused giant releases of CO2 into the atmosphere, making Indonesia the third-largest emitter of greenhouse gases on the planet.

The audit does not address climate change or how lending for palm oil -- an ingredient in foods and a biofuel added to diesel for cars -- fits into the World Bank's new "strategic framework" for development and climate change. It also does not examine any of the specific charges or environmental accusations lodged against the firm to which the World Bank loaned money.

Rather, the report confines itself to whether the IFC abided by its own standards. On that front, the multilateral bank came up short.

IFC saw burning the trees as having 'no impact'

Specifically, auditors said, when loaning to Wilmar International Ltd. and other firms between 2003 and 2008, the IFC did not check out concerns about the companies' supply chain plantations. The Forest Peoples Programme, a U.K.-based nonprofit group that originally brought the complaint, charged that the companies illegally used fire to clear forestland, cleared primary forests, and seized lands belonging to indigenous people without due process.

The IFC, auditors noted, labeled the initial loan as a "category C" -- a listing signifying that a project has little or no adverse environmental or social impacts, and which is typically given to financial intermediaries. But by failing to examine the subsidiaries that source the raw materials, IFC ignored issues like the absence of publicly available environmental impact assessments for the subsidiary companies.

"For each investment, commercial pressures were allowed to prevail," auditors wrote. "Commercial pressures dominated."

In a written response to auditors, the IFC acknowledged shortcomings in the review process. But the lender also defended investment in palm oil production as a way to alleviate poverty in Indonesia.

"IFC believes that production of palm oil, when carried out in an environmentally and socially sustainable fashion, can provide core support for a strong rural economy, providing employment and improved quality of life for millions of the rural poor in tropical areas," it said.

Hunting for a 'sustainable' strategy

The agency vowed to develop a new strategy to guide its future palm oil investments, to be completed in about three months, and to put "renewed emphasis" on assessing a company's supply chain before lending.

Marcus Colchester, director of the Forest Peoples Programme, called that response "inadequate."

In a letter to World Bank President Robert Zoellick and the board, Colchester and leaders of other nonprofit groups called on the World Bank to freeze palm oil lending, charging that IFC suffers a "systemic problem whereby the pressure to lend and to support business interests overcomes prudence, due diligence and concern for social and environmental outcomes."

They noted that the management response included no actions to address the problem of climate change being exacerbated by planting on peatlands and burning forests, and advised no discipline for staff that failed to comply with standards.

Barbara Bramble, a senior program adviser for international affairs at the National Wildlife Federation, said she believes the World Bank should help the Indonesian government at all levels change incentives for palm oil planting and refuse to invest in any company whose primary plantation is primary rainforest.

She, Colchester and even IMF officials widely agreed that there is in Indonesia an abundant amount of already degraded land that could be used for palm oil productuon. The challenge, Bramble said, is shifting national and local laws to encourage more sustainable production.

Meanwhile, the IFC indicated in a statement to E&E that the agency does not plan to give up palm oil investment anytime soon.

"IFC is aware of the environmental and social concerns associated with the palm oil sector in Indonesia. We also believe that the sector has considerable potential for job creation and economic growth," agency officials wrote. "We believe it is imperative to promote sustainable practices in the sector that will benefit the poor and preserve biodiversity."