Leuser Public Private REDD Project An Overview

1. Leuser Public Private REDD Project An Overview

2. Table of Contents • Section 1: The Leuser Ecosystem • Section 2: Project Strategy • Section 3: REDD Project Development • Section 4: Investment Project Development • Section 5: Expectations of GCF

3. Section 1 The Leuser Ecosystem

4. Leuser Ecosystem: Total Area 2,280,000 ha Forest land 1,920,000 ha

5. Deforestation:Historical Deforestation 5,500ha/year (3 MtCO2e) Forest land threatened 49%

6. Threats: • Roads • Palm oil conversion • Mining • Encroachment • Illegal logging

7. Communities:~690,000 people living inside or adjacent to 8 ethnic groups Some of the poorest communities in Indonesia

8. Biodiversity:One of the last places in SE Asia that is of sufficient size and quality to maintain viable populations of many rare and charismatic species such as tigers, orangutans, rhinos, elephants, and clouded leopard.

9. Low Carbon Investment Opportunities: Sustainable timber plantations, community agro-forestry, renewable energy, eco-tourism Extend arrow

10. Section 2 Project Strategy

11. Integrated Landscape Approach • Project “nested” in a provincial wide REDD approach. • The financial flows created by carbon credits will be used to fund sustainable development and conservation activities. • Project aims to address the root cause of deforestation: unsustainable approaches to economic development. • Holistic land management strategy employed, in line with the Governor’s Aceh Green vision, which calls for hard investments in electrification projects, agro-forestry and timber plantations as well as soft investments in education, healthcare and community work. • Aim is to refocus communities neighboring forests away from inefficient forest utilization and agricultural practices and employ them in higher value-added and ecologically balanced economic activities. • This holistic approach is best positioned to address the issues of Additionality, Permanence and Leakage.

12. Timeline

13. Section 3 REDD Project Development

14. REDD Implementation Steps

15. Carbon Accounting Updates • IPCC Carbon stock estimates – 1,400 million tonnes CO2-e • Spatial analysis & forest type stratification in line with IPCC completed • Indicative historical deforestation rates determined • Leading service providers have defined the baseline and project scenarios, identified the complexities posed by deforestation pressures; confirmed a compatible methodology that is as close to market ready as possible; selected a business as usual reference approach suitable for addressing the deforestation drivers in Aceh and developed a clear and definitive list of data parameters to complete the Project Design Document (PDD). • The full preparation of the baseline will be consistent with best current international practice and experience. The service providers identified for this work represent the best and most dynamic available in this field.

16. Carbon Accounting contd. • Key outputs and points to consider: • Based on our definition of the project and baseline scenarios, combined with our assessment of the methodologies emerging from the Voluntary Carbon Standard double approval process, compatible methodologies were found to be: • Methodology for Estimating Reductions of GHG Emissions from Mosaic Deforestation Developed by: World Bank BioCarbon Fund • Methodology for Estimating Reductions of GHG Emissions from Frontier Deforestation Developed by: Amazonas Sustainable Foundation • These methodologies were selected as they met the following key selection criteria: • Allow assessment of both mosaic and frontier deforestation representative of deforestation trends in Aceh • Are in the final stages of the first validation phase and are likely achieve double approval within the next 3-6 months • Accept a forward-looking baseline approach to developing the business as usual baseline map • The business as usual reference methodology selected is the Terrestrial Carbon Groups Three Filters approach. This meets the key criteria – forward-looking, spatially explicit, regional and national estimates, compatible in Indonesia, allows greatest flexibility in data requirements, and appears to be transparent in its application. • Some destructive sampling of aboveground biomass pools is required. • Currently there are limitations in methodologies for projects that avoid forest degradation • A strong focus will be placed on the MRV system.

17. Social and Community Assessment Updates • Local Acehnese company MitraKoalisi have conducted a comprehensive Social and Community Assessment. The intention of the study is to fulfill the requirements of the CCB standards and to guide project decisions concerning community consultation, benefit-sharing and grievance mechanisms • Key outputs and points to consider: • 50 villages have been sampled across the Leuser Ecosystem. • Essential assessment areas: • Social Baseline: What are current levels of wellbeing? • Impact from the Project: How will the project affect the wellbeing of the affected communities? • Impact from the Community: How will current community activities affect the success of the carbon project – i.e. What are the local drivers of land use and forest change? • Community Expectations: what project interventions do local communities want and what are most likely to reduce deforestation pressures? • These essential elements will be central to formulating the Leuser Public Private REDD Project in line with international requirements, meeting Indonesian government guidance and regulation and partnering with the Government of Aceh and others.

18. Section 4 Investment Project Development

19. Investment Implementation Steps