Indonesia has signed a number of bilateral agreements with richer nations to get climate funding — mostly in forest-related areas. “But, even without their money Indonesia will go ahead to protect the planet,” State Environment Minister Gusti Muhammad Hatta told The Jakarta Post. “It is our moral responsibility to tackle climate change for the sake of our people.”
The minister also insisted that bilateral agreements would not ruin ongoing multilateral talks on climate change after the Copenhagen conference failed to hammer out a binding agreement on emissions cuts and climate funding.
After the Copenhagen meeting Indonesia signed MoUs on climate change issues with the governments of Australia, England, Germany, the Netherlands, Japan, Norway, New Zealand and the United States.
The Australian government has provided A$30 million (US$27.74 million) to fund a Reducing Emissions from Deforestation and Forest Degradation (REDD) project in Jambi province, which is scheduled to begin this month. It also channeled A$40 million to another REDD project in Central Kalimantan in 2009.
Indonesia is the world’s third-largest forest nation, with around 120 million hectares of rainforest. However, it has also been labeled the worlds fastest in deforestation, with more than 1 million hectares of forests cleared each year.
A study by the Bogor-based Center for International Forestry Research (CIFOR) has warned that billions of dollars set to flood into Indonesia was at risk because of graft, unless the country can put strong oversight mechanisms into place.
“Investors should be looking very carefully at the conditions of financial governance in countries where they will be investing their funds. Like Indonesia, many tropical forest countries have long track records of mismanaging public financial resources, particularly in the forestry sector,” the report’s co-author, Christopher Barr, said as quoted by Reuters.
Showing posts with label forestry. Show all posts
Showing posts with label forestry. Show all posts
Thursday, January 14, 2010
Wednesday, January 13, 2010
Forest Carbon Markets 'Likely Grew' in 2009
Steve Zwick, Managing Editor of the Ecosystem Marketplace, writes that the United Nation's December 2009 Copenhagen Accord yielded agreement on the need to develop financing mechanisms for reducing greenhouse gas emissions from deforestation and forest degradation. However, for the UN Collaborative Programme on Reducing Emissions from Deforestation and Forest Degradation in Developing Countries (REDD) to work, " investors will have to be on board – and for that to happen, the forestry markets will have to become more transparent and trustworthy."
To promote that transparency and trustworthiness, Ecosystem Marketplace spent the past year speaking with more than 100 market participants – 65 of whom develop forest protection and restoration projects, primarily in rainforest nations, and 37 of whom act as intermediaries. These participants accounted for 230 projects generating credits across 40 countries over the past 20 years.
The result is State of the Forest Carbon Markets 2009: Taking Root & Branching Out (download pdf of Executive Summary), published with support from the World Bank BioCarbon Fund, Biological Capital, Ecosystem Restoration Associates and Baker McKenzie, as well as funding from USAID, the David and Lucile Packard Foundation, the Norwegian Agency for Development Cooperation, the United Kingdom’s Department for International Development and the Surdna Foundation.
Respondents documented the impact of carbon finance on more than two million hectares of forests over the past 20 years. That impact has resulted in the capture of nearly 70 million tonnes of carbon (MtCO2) in trees – although the bulk of this can be attributed to one massive project in the early 1990s that captured 47 MtCO2.
The findings also indicate substantial shifts in growth patterns over the past three years, during which these markets have matured substantially.
From 2007 through the first half of 2009 alone, forest carbon markets have funneled roughly $100 million into forestry conservation projects around the world, transacting 20.8 million MtCO2 in the process. In dollar terms, this period represents 67% of the market value of all forest carbon offsets, due to higher volumes and prices associated with emerging interest in the voluntary carbon markets overall, along with maturing standards and infrastructure.
During this same period, the dominant source of forest carbon credits in the developing world appears to have shifted from Latin America to Africa, although globally North America appears to have been the top region for sourcing carbon credits in 2008, generating 42% of the volume transacted that year, followed by Africa and Latin America with 26% and 21% respectively.
According to Zwick, the survey results signal robust and growing belief in the ability of ecosystem markets to help reverse climate change. These findings were compiled before the Copenhagen Accord, which explicitly stated the need to develop mechanisms that will reward sustainable land-use practices that capture carbon in trees.
"Overall, prices for forest carbon credits ranged from $0.65/ tCO2 to more than $50/ tCO2. Over time, the volume-weighted average price was $7.88/ tCO2. The compliance markets have commanded the highest prices overall, with a volume-weighted price average of $10.24/ tCO2 over time, followed by the voluntary OTC market at $8.44/ tCO2 and the CCX at $3.03/ tCO2.
"In 2008, the voluntary OTC market took the lead at $7.12/ tCO2, but was surpassed in June, 2009, by the compliance market, which had reached the highest volume-weighted price average across markets and over time at $12.31/ tCO2," he pointed out.
OTC projects made up 90% of the total number of projects, with an additional 6% under the Chicago Climate Exchange (CCX). Only 4% of projects transacting credits (including ex-ante sales) were from regulated markets; half of these were from NSW GGAS and half from Kyoto-related afforestation/reforestation projects.
The total historical market value tracked through the first half of 2009 was $149.2 million, of which $137.6 million arose from the voluntary market and $11.6 million from the regulated market.
To promote that transparency and trustworthiness, Ecosystem Marketplace spent the past year speaking with more than 100 market participants – 65 of whom develop forest protection and restoration projects, primarily in rainforest nations, and 37 of whom act as intermediaries. These participants accounted for 230 projects generating credits across 40 countries over the past 20 years.
The result is State of the Forest Carbon Markets 2009: Taking Root & Branching Out (download pdf of Executive Summary), published with support from the World Bank BioCarbon Fund, Biological Capital, Ecosystem Restoration Associates and Baker McKenzie, as well as funding from USAID, the David and Lucile Packard Foundation, the Norwegian Agency for Development Cooperation, the United Kingdom’s Department for International Development and the Surdna Foundation.
Respondents documented the impact of carbon finance on more than two million hectares of forests over the past 20 years. That impact has resulted in the capture of nearly 70 million tonnes of carbon (MtCO2) in trees – although the bulk of this can be attributed to one massive project in the early 1990s that captured 47 MtCO2.
The findings also indicate substantial shifts in growth patterns over the past three years, during which these markets have matured substantially.
From 2007 through the first half of 2009 alone, forest carbon markets have funneled roughly $100 million into forestry conservation projects around the world, transacting 20.8 million MtCO2 in the process. In dollar terms, this period represents 67% of the market value of all forest carbon offsets, due to higher volumes and prices associated with emerging interest in the voluntary carbon markets overall, along with maturing standards and infrastructure.
During this same period, the dominant source of forest carbon credits in the developing world appears to have shifted from Latin America to Africa, although globally North America appears to have been the top region for sourcing carbon credits in 2008, generating 42% of the volume transacted that year, followed by Africa and Latin America with 26% and 21% respectively.
According to Zwick, the survey results signal robust and growing belief in the ability of ecosystem markets to help reverse climate change. These findings were compiled before the Copenhagen Accord, which explicitly stated the need to develop mechanisms that will reward sustainable land-use practices that capture carbon in trees.
"Overall, prices for forest carbon credits ranged from $0.65/ tCO2 to more than $50/ tCO2. Over time, the volume-weighted average price was $7.88/ tCO2. The compliance markets have commanded the highest prices overall, with a volume-weighted price average of $10.24/ tCO2 over time, followed by the voluntary OTC market at $8.44/ tCO2 and the CCX at $3.03/ tCO2.
"In 2008, the voluntary OTC market took the lead at $7.12/ tCO2, but was surpassed in June, 2009, by the compliance market, which had reached the highest volume-weighted price average across markets and over time at $12.31/ tCO2," he pointed out.
OTC projects made up 90% of the total number of projects, with an additional 6% under the Chicago Climate Exchange (CCX). Only 4% of projects transacting credits (including ex-ante sales) were from regulated markets; half of these were from NSW GGAS and half from Kyoto-related afforestation/reforestation projects.
The total historical market value tracked through the first half of 2009 was $149.2 million, of which $137.6 million arose from the voluntary market and $11.6 million from the regulated market.
Wednesday, January 6, 2010
Indonesian government criticised for climate funding results
Several NGOs have criticised the Indonesian government for not achieving better results for the country at the recent Copenhagen climate conference and have filed a series of complaints with the Deputy Speaker of the national House of Representatives, Pramono Anung.
Chairman of the Anti Debt Coalition (KAU), Dani Setiawan, said that Indonesia only exploited climate change issues to get more funding.“During the talks, developed countries, such as the United States committed to giving Indonesia US$10 billion from 2010 to 2012. However, 50% of those funds will be considered as foreign debt, which is actually a setback,” he said.
Dani said that Indonesia should have used better diplomatic bargaining skills, such as those employed by Bolivia. “Bolivia used the historical aspects of its diplomatic bargaining with developed countries by securing non-foreign debt schemes,” he said.
According to Indonesian Forum for the Environment (Walhi) forest campaigner, Teguh Surya, President Susilo Bambang Yudhoyono did not raise his government's commitment to protect its natural forest during the Land Use, Land-Use Change and Forestry [Lulucf] discussions.
"Only Africa, Nepal and New Zealand stated their commitment in the Lulufc discussion. This, of course, shows a betrayal of Indonesia’s commitment. The government has reserved 17.91 million ha of natural for development outside of the forestry sector. We must also highlight the planned expansion of palm oil plantations by 26.7 million hectares in 17 provinces, which will convert existing natural forests. "How can all of this happen if the President is serious about reducing emissions?” he told The Jakarta Post.
Chairman of the Anti Debt Coalition (KAU), Dani Setiawan, said that Indonesia only exploited climate change issues to get more funding.“During the talks, developed countries, such as the United States committed to giving Indonesia US$10 billion from 2010 to 2012. However, 50% of those funds will be considered as foreign debt, which is actually a setback,” he said.
Dani said that Indonesia should have used better diplomatic bargaining skills, such as those employed by Bolivia. “Bolivia used the historical aspects of its diplomatic bargaining with developed countries by securing non-foreign debt schemes,” he said.
According to Indonesian Forum for the Environment (Walhi) forest campaigner, Teguh Surya, President Susilo Bambang Yudhoyono did not raise his government's commitment to protect its natural forest during the Land Use, Land-Use Change and Forestry [Lulucf] discussions.
"Only Africa, Nepal and New Zealand stated their commitment in the Lulufc discussion. This, of course, shows a betrayal of Indonesia’s commitment. The government has reserved 17.91 million ha of natural for development outside of the forestry sector. We must also highlight the planned expansion of palm oil plantations by 26.7 million hectares in 17 provinces, which will convert existing natural forests. "How can all of this happen if the President is serious about reducing emissions?” he told The Jakarta Post.
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