gSustainableLandscapesPartnershipinIndonesia

Conservation InternationalIndonesiaMarch2016

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L O W - E M I S S I O N D E V E L O P M E N T F O R E S T & W I L D L I F E C O N S E R V A T I O N E C O N O M I C G R O W T H

WeenvisionIndonesiaasasustainablelandscapewherenaturalcapitalismaintainedthroughappropriateland-use,sustainableproductionpractices,andinclusivedecision-makingforthe

improvementofhumanwell-being.

INDONESIAANDGLOBALCHALLENGES

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DeforestationcomponentofIndonesia’s CO2 emissions

25000000068 % Indonesia’slandmassthat

isforested

CurrentpopulationofIndonesia

6millionha

Primaryforestcoverlossbetween2000- 2012

6 0 0F MU

ForestManagementUnitsplannedacrossthecountry

2015 fires

1.7million

Area(Ha)offorestandlandburntbyfires

Globalpalmoilproduction,ofwhich60%isproducedinIndonesia

Globalgreenbonds(inUS$)tobeissuedin2015

b i l l i o n40$

37%

50milliontons

SLPFRAMEWORKATAGLANCE

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GovernanceGoodgovernanceprovidestheoverarchingenablingenvironmentincludingpolicygoals,planningprocessesandcapacitytosupportcoordinatedandeffectiveimplementationacrosslandscapes.

NaturalCapitalNaturalcapitaliscentraltosustainablelandscapes–sustainableproductionandhumanwell-beingthatarederivedfromanddependentonecosystemservices.

SustainableFinanceLandscapestrategiesshouldincludeasustainablefinancecomponenttoensurelongtermviabilityoftheprogram.

SustainableProductionSustainableproductionislargelyderivedfromanddependentonnaturalcapital,andisrequiredtosupportlivelihoodsandotherbasicrequirementsofsocietyandcommunities.

SustainableLandscapesFramework

SLPcollaborateswithlocalpartnerstoprotectnaturalcapitalbypromotingsustainableproduction

practices,goodgovernanceandfacilitatingsustainablefinancetoensurelong-termbenefitstopeople.

S L P F R A M E W O R K | S U S T A I N A B L E F I N A N C EG O V E R N A N C E | N A T U R A L C A P I T A L | S U S T A I N A B L E P R O D U C T I O N |

WHERESLPWORKSININDONESIA

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WestPapuaNorthSumatra

S L P F R A M E W O R K | S U S T A I N A B L E F I N A N C EG O V E R N A N C E | N A T U R A L C A P I T A L | S U S T A I N A B L E P R O D U C T I O N |

Currently1.9millionhectaresofforest (25%ofland)withanannualdeforestationofaround1%.

WHERESLPWORKSININDONESIA

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NorthSumatraCurrently9millionhectaresofforest (90%ofland)withanannualdeforestationofless than0.1%.

WestPapua

S L P F R A M E W O R K | S U S T A I N A B L E F I N A N C EG O V E R N A N C E | N A T U R A L C A P I T A L | S U S T A I N A B L E P R O D U C T I O N |

• Prioritizinglandscapeinvestments-SustainableInvestmentActionPlan• CharacterizingsustainabilitythroughLandscapeAccountingFramework(LAF)metricsandpublicdatasets• UsingLAFmetricstoinformlanduseplanningandinvestmentdecisions

• Fillinggapsinexpertiseinmulti-stakeholderprocessesandpartnerships• Fillinggapsinlocalinstitutionalarrangementsandgovernancestructures• Supportand/orestablishwatershedforums

GOODGOVERNANCE

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Limitedcapacitytoimplementstrategic

plans

Spatialplanningconflictsbetweengovernmentlevels

Lackoflandscapelevelmonitoring and

enforcement

Lackoflandscapelevelperformancemanagementanddecision-making tools

SLPInitiatives

KeyGovernancechallengesinIndonesia

Multi-StakeholderForumsScience-baseddecisionsupporttools

RegionalPolicies,ProgramsandSpatialPlans

Outcomes

• UsingStrategicEnvironmentalAssessmentsasREDD+safeguards• AligningspatialplanswithSEArecommendations• DesigningconservationcentricpoliciesandspatialplansforSLPlandscapesandwatershedmanagement

• 3 SEAsdevelopedinNorthSumatra• Spatialplansdeveloped• EstablishingWestPapuaasaConservationProvince

• SustainableInvestmentActionPlans(SIAP)preparedfor3 districtsandtheprovinceofNorthSumatra• LAFdashboardsdevelopedformonitoringlandscapesustainability

• 17 palmoilcompaniespledgetoadheretobestproductionpractices• 2 WatershedManagementforumssupportedinNorthSumatra

Provideholisticframeworksforsounddecision-makinginlanduse

planningandinvestments

Improvecollaborationandpolicyalignmentwithpublicandprivate

interests

Limitedaccesstocriticalsciencetosupportdecision-

making

Developpolicies,programsandspatialplansusingscientificevidenceand

consultativeprocesses

S L P F R A M E W O R K | S U S T A I N A B L E F I N A N C EG O V E R N A N C E | N A T U R A L C A P I T A L | S U S T A I N A B L E P R O D U C T I O N |

• Promotingbiodiversitycorridorsthroughvillage/communityforests• Establishinglocal/villageregulationstoprotectkeyspecies(tigers,orangutans,turtles)&ecosystems(riparians /peatlands)• protectingofhighconservationvalueareasthroughcommunitydrivendevelopmentmechanisms

NATURALCAPITAL

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Limitedresourcesandmanagement

capacity

Deforestationleadingtofragmentationandbiodiversityloss

Lackofactiveforestmanagementregimesinstateforestareas

Socialeconomicbarrierstosupport

protection

SLPInitiatives

KeyNaturalCapitalchallengesinIndonesia

ForestManagement CommunityStewardshipProtectedAreas

Outcomes

• ReviewinginstitutionalstructuresforforestmanagementacrossProductionforestsandProtectionforests• AssistingtheMinistryofEnvironmentandForestrytoimplementForestManagementUnit(FMU)structuresatprovincialanddistrictlevels

• ReviewingProtectedAreastatus,riskandlandscapecorridors• ConductingProtectedAreamanagementeffectiveness(PAME)assessmentstoguideinterventions• Restoringdegradedwatershedareas• DevelopingcapacitywithinProtectedAreamanagement&staff

• 12protectedareashavecompletedPAMEassessmentsandsetuptheSpatialMonitoring&ReportingTool• BatangGadisNationalParkconductedsystematicbiodiversitysurvey

• 6VillageforestsandCommunityforestsestablishedinNorthSumatra• 31villageswithCommunityConservationAgreements(CCA)andon-goingprocessin12villages

• ConceptNoteandrecommendationsforestablishingFMUsforconservationobjectives(KPH-K)• FMUPlanDevelopmentToolkitavailableforotherdistricts

Improveprotectionofhighconservationvalueareas

Establishactiveprofessionalmanagementoftheforestestate

Improveconservationpracticesatthevillagelevel

Increasedemissionsduetoforestandpeatlandfires

S L P F R A M E W O R K | S U S T A I N A B L E F I N A N C EG O V E R N A N C E | N A T U R A L C A P I T A L | S U S T A I N A B L E P R O D U C T I O N |

SUSTAINABLEPRODUCTION

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GrowingpopulationpressureinIndonesiaandglobally

Limitedaccesstoinformationonmarkettrends

SLPInitiatives

KeySustainableProductionchallengesinIndonesia

Outcomes

• 3companies supportinggreensupplychainsforcoffee,rubberandpalmoil• Active stakeholderforumforaddressingmarketissues• Cropsuitabilitymappingcompleted

• MandailingNatalFMUnowoperationalandequippedfortimberproduction(KPH-P)andNTFPs• ProductionmodelamplifiedtootherdistrictswithdesignatedKPH-Pareas

Lackofcapitalforinvestmentinbetterpractices

AgriculturalPractices(GAP)

• Conductingvaluechainanalysistoidentifypoorpractices&adverseimpact• Developingfarmertrainingmoduleswithanemphasisonconservationpractices• Providingfarmerswithaccesstobettertoolsandmethods

Promoteandfacilitatemoresustainablepractices

• Reviewingpotentialandmarketdemandfortimberandnon-timberforest products(NTFPs)• Establishingmanagementplantosupportsustainableproduction• RollingoutofForestMgt Unit(FMU)PlanDevelopmentToolkit

Sustainableforestry

Provideactivemanagementofforestproduction

A g r i c u l t u r eF o r e s t r y

Limitedaccesstoinformationonmoresustainablepractices

• 5,500farmerswithnearly40%yieldincreases

• Providingtechnicaladviceto46privateorganisationsthroughvariousforums

• Engagingprivatesectorinsustainabilitychallengesintheirsupplychains• Promotingdeforestation-freesupplychainsandreducingriskofliability• Improvingmarketaccessforfarmerswithgoodagriculturepractices• Assessingcropsuitabilityandprojectedimpactsofclimatechange

Improvemarketaccessandpricesforsustainablefarming

GreenSupplyChaininvestments

S L P F R A M E W O R K | S U S T A I N A B L E F I N A N C EG O V E R N A N C E | N A T U R A L C A P I T A L | S U S T A I N A B L E P R O D U C T I O N |

SUSTAINABLEFINANCE

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Districtsandcommunitieshighlyreliantongovernmentbudgetandvillagefundallocations

Limitedrecognitionofecosystemservicesinfinancialaccountingor

economicdevelopment

SLPInitiatives

KeySustainableFinancechallengesinIndonesia

Outcomes

• Conceptnotesforestablishingfiscalincentivesforforestconservation,throughRegionalIncentiveFunds• TrustFundsestablishedtocaptureandallocatedonorfundingthroughbudgetallocationsandfiscalincentives

• Efficientcookstovesprogramtoreducefuelwoodforcooking• Eco-tourismandotheralternativeincomestreams fordistricts• LandscapeBondsdirectedtolowemissionbusinessmodels

Limitedleveragingofdonorfundingandprivatesector

investment

PaymentforEcosystemServices

• Establishingmodelsinwhichcommunitiesandtheprivatesectorpaydirectlyfornaturalcapitalbenefitsandecosystemservices• Incorporatingjurisdictionalapproachtoreducingdeforestationandforestdegradation,throughholisticlandscapesapproachandPESfinancingmodels

Establishingmodelsinwhichcivilsocietyandprivatesectorpayforservices

• Demonstratingthebenefitsofinnovativelowemissionbusinessmodels,toencouragefurtherupdateandinvestment• DevelopingLandscapeBond-basedfundingtobedirectedtolowemissionbusinessmodelsandenterprisesacrossNorthSumatraandWestPapua

LowEmissionEnterprises

Demonstrationofinnovativelowemissionbusinessmodels

A l i g n i n g e x i s t i n g m o d e l s E s t a b l i s h i n g n e w m o d e l s

Nodirectfiscalincentivesforconservingnaturalcapitalfor

thelongterm

• ScopingofPESmodelforimprovedwatershedmanagementforimprovedwaterqualityinNorthSumatra

• ConceptnotesandactionplansforjurisdictionalapproachestoREDD+

• IncorporatingnaturalcapitalconsiderationsinGovernmentbudgetallocationsandfiscalincentives• DevelopingTrustFundsand/orleveragingfundingsupportfrombilateralandmultilateralsectoralprograms

Incorporatingnaturalcapitalconsiderationsinbudgetallocations

Budgetallocationsandfiscaldrivers

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LANDSCAPEACCOUNTING

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OnlinedashboardSLP’sonlinedashboardgivesaholisticviewoflandscapesustainabilityencompassingnaturalcapital,productionandhumanwell-being

AlignedwithUNSustainableDevelopmentGoalsTheLAFkeyindicatorsarealignedwiththeSDGsforfullalignmentwithglobalsustainabilitytargets

MeasuringlandscapesustainabilityMonitoringlandscapesustainabilitywithquantifiable,commonlyagreeduponkeyindicatorsenablesinformeddecision-makingandprioritizationofinvestments

PublicdatasetsandindexesTheLAFisbasedonanumberofexistingcrediblepublicdatasetsandindexesthatensurelow-cost,regularandconsistentmonitoring

OnlinedashboardforNorthSumatra

SLPiswellplacedtoassistnationalandsub-nationalimplementationeffortstodeveloprobustlandscapeaccountingframeworks

C A S E S T U D Y L A N D S C A P E A C C O U N T I N G F R A M E W O R K

KEYMESSAGES

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S L P F R A M E W O R K | S U S T A I N A B L E F I N A N C EG O V E R N A N C E | N A T U R A L C A P I T A L | S U S T A I N A B L E P R O D U C T I O N |

1.IntegratedapproachesareessentialtosustainabledevelopmentArangeofchallengesareprominent– forestloss,smokehazeandthreatstobiodiversity.Underlyingdriversincludeincreasingpopulationpressures,competingdemandsforlanduseandlimitedrecognitionofecosystemservices.Thesechallengescannotberesolvedinisolation.

3.PartnershipsandcollaborationarekeySLPhasestablishedeffectivepublic-privatepartnershipsthataredrivingsustainabledevelopmentandlowemissiondevelopmentmodelsacrossprovinces– fromNorthSumatratoWestPapua.

4.SustainablefinanceisacriticalenablerSLPispioneeringnewfinancingmodelsthatrecognizethevalueofecosystemsservicesthatareprovidedbynaturalcapital.FurtherworkisrequiredtoimplementpracticalandscalablemodelsthroughoutIndonesia.

2.Across-sectorallandscapesapproachisrequiredSLPadvocatesanintegratedapproachtoaddressingcomplexlandscapechallenges– andhasfacilitatedabroadrangeofcoordinatedactivitydesignedtosupportgoodgovernance,conservenaturalcapitalandestablishsustainableproduction.