Cooperation - Republic of Indonesia and Federal Republic of Germany

The investment in and implementation of DAs within the selected districts aims at testing methodologies with different project partners to reduce emissions from deforestation and forest degradation. At the same time DAs shall provide alternative income opportunities supporting more carbon-intensive sustainable land-use, for sustainable community development and biodiversity conservation. Demonstration activities shall, if possible, comprise a range of different approaches to reduce deforestation and forest degradation. DAs activities, including community forestry and Reduced Impact Logging (RIL), will be implemented in cooperation with different stakeholders.

DA identification and selection: Demonstration activities to be supported by the FC module within the district shall be identified jointly by the District Program Implementing Unit (DPIU) and the Consultant based on an appropriate and transparent selection process in cooperation with the potential programme partners. Selected demonstration activities shall be sent for approval to NPMU and the relevant national body. All activities are eligible which correspond to the agreed eligibility criteria and translate into measurable reductions of emissions from deforestation and forest degradation within the selected programme districts.

A reduction of emission in the so far selected districts of Kapuas Hulu and Malinau can be achieved especially by addressing main drivers of deforestation/degradation on ProductionForestLand, ProtectedForest and ConservationForest. Therefore, potential demonstration activities could possibly include, but are not limited to:

  • ProductionForest (HPH): Conventional logging could be substituted by RIL (reduced impact logging) or by appropriate certification (e.g. LEI or others), while cooperating with communities (respecting traditional land use/adat); other activities might include forest fire prevention or combating illegal logging, etc.
  • Community forestry combined with improved land-use planning and alternative livelihood investments to reduce encroachment of forested land by illegal logging and shifting cultivation

Guidance for defining eligibility criteria may be taken from the regulation on REDD. The following tentative eligibility criteria shall apply for demonstration activities to be supported at the district level:

  • Demonstration activities must result in a measurable, reportable and verifiable reduction of emissions from deforestation and/or forest degradation compared to an established baseline (either historical or projected), taking into account displacement of emissions to other areas (leakage).
  • Activities to reduce emission from deforestation and forest degradation must respect the rights, including customary rights (adat), and interests of communities and must make a measurable contribution to the conservation of biological diversity
  • Economic viability/efficiency: estimation of revenue from REDD shall exceed estimation of the cost needed to ensure long term reduction of emissions from deforestation and/or forest degradation in the location and the area surrounding the location. Add-on benefits for community development, protection of watersheds and biodiversity shall also be taken in account.
  • Legal status of DAs partners and proposed land needs to be clearly defined.

As a minimum, the average potential of DAs to reduce emissions should be 300.000 – 400,000 t CO2 aggregated over a project duration of 5 years. However, considering the different character of the DAs, this figure should apply in average for the overall DA portfolio. Demonstration activities aiming at generating carbon credits must comply with the eligibility criteria of relevant national legislation. Demonstration activities which are developed for the voluntary carbon market shall be audited under the VCS (Voluntary Carbon Standard) .KfW can neither own nor sell any carbon credits if generated. DA proposals must include a counterpart contribution from DA beneficiaries.

For demonstration activities focussing also on sustainable community development, the following additional eligibility criteria apply:

  • Demonstration activities must make a measurable contribution to community development/ people’s livelihoods, e.g. by providing alternative income for foregone income from avoided deforestation and avoided forest degradation.
  • The investments in demonstration activities will include related technical support, surveys, and direct investments (e.g. land rehabilitation, livelihood activities, equipment)

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