POLICY

Indonesia’s national focal point to UNFCCC takes stance on the LEAF Coalition
April 29, 2021

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JAKARTA (FORESTHINTS.NEWS) - Indonesian Environment and Forestry Minister Siti Nurbaya, the country’s national focal point to the UNFCCC, has informed governors by letter (Apr 27) that the Indonesian government is not yet able to accept the Lowering Emissions by Accelerating Forest finance (LEAF) Coalition program.

The LEAF Coalition, which was launched at the Leaders Summit on Climate (Apr 22), is a new public-private initiative targeting the mobilization of over USD1 billion to protect and enhance global climate action.

The Coalition has initial participation from the governments of Norway, the United Kingdom, the United States and several leading companies.

Minister Nurbaya provided a number of reasons and background information in her letter to explain in detail why Indonesia cannot yet join the LEAF Coalition. Copies of the letter were sent to President Joko Widodo and relevant ministers, among others.

According to Minister Nurbaya, the call for proposals from the LEAF Coaliton requires that ART-TREES serve as the single methodology and standard in deforestation and carbon evaluation, and this is the first reason why Indonesia is not yet able to join the Coalition.

“The methodology and standard of ART-TREES are not in line with real conditions in Indonesia,” the letter explains.

The second reason, as conveyed in the letter, is that the call for proposals is linked to state jurisdictions, such as coverage of areas and authorities involved, and thus requires extra caution in consideration by the central and local governments.

The third reason detailed in the letter concerns issues relating to carbon pricing trends, uncertainties, leakages, high transaction costs and other requirements. Among the most crucial is the issue of self-financing in advance of the entire process and stages of the implementation of the LEAF program, whether proposed by the central government, local governments, or the private sector.

The fourth reason outlined by Minister Nurbaya in the letter pertains to the fact that all agreements related to carbon business must refer to and align with the presidential regulation on the economic value of carbon, which is to be issued soon, so as not to contravene Indonesian laws and regulations, including the country’s constitution.

The fifth and final reason is that LEAF funding is only to be provided after participants (national/sub-national) are verified and fulfill the requirements of the ART-TREES standard for tracking and monitoring emissions reductions from decreased deforestation and forest degradation. Moreover, the ART-TREES standard is not consistent with Indonesia's land use systems.

The chart below shows the level of Indonesia’s total natural forests in 2019/2020, which amounted to 90.1 million hectares, or 3.7 times the size of the UK or 2.3 times that of Norway. Accounting for 92.8% of the country’s natural forest cover are state forest areas which fall under the authority of the Environment and Forestry Minister.

Outside UNFCCC processes

The minister's letter to the governors also explains that the REDD+ Environmentally Excellency Standard (TREES), a new and voluntary initiative, has the potential to create risks to ongoing processes, both bilaterally and multilaterally.

"The development and arrangements of ART-TREES lie outside the UNFCCC's processes, so there is no obligation for a country to participate with this standard," the letter elaborated.

The letter also underlines that ART-TREES is a method for calculating deforestation through tree cover loss which is subsequently converted into carbon emissions. In addition, the method also classifies all Indonesia's forest vegetation as primary forest, including shrublands.

“This method is not in accordance with the method and system for Indonesia," the letter stresses.

Minister Nurbaya also reminded the governors that Indonesia uses a system for calculating deforestation with the Forest Reference Emission Level (FREL) and calculating the transformation of the Greenhouse Gas Inventory (IGRK) system, as established by the Indonesian National Standards.

Accordingly, the minister's letter reiterates that the application of the ART-TREES method was inappropriate and would be troublesome.

"Apart from that, it will also eliminate or correct the Results-Based Payment (RBP) for Indonesia's achievements in reducing GHG emissions," the minister wrote.

The following chart shows the trend of Indonesia's deforestation rate from 2011/2012 to 2019/2020, indicating that levels of deforestation in 2018/2019-2019/2020 were the lowest in the country's history.

Clear message to governors

Minister Nurbaya pointed out in her letter to the governors that some difficulties would occur if Indonesia was forced to join the LEAF Coalition and use the ART-TREES method.

This would include the potential for undervaluations of carbon value when using the ART-TREES standard.

"The ART-TREES standard only calculates the achievement of reducing carbon emissions from preventing deforestation and forest degradation, while carbon stock enhancement, conservation and biodiversity are not taken into account," the letter states.

As such, "the Indonesian government is not yet able to accept the LEAF standard to be used within Indonesia's jurisdiction in terms of carbon evaluations and credits related to deforestation and forest degradation."

With this in mind, she asked the governors to understand the real conditions and respond appropriately based on the systems and jurisdiction of the Republic of Indonesia as well as for the national interest.

"So, the LEAF Coalition's 'call for proposals' offer with the application of the ART-TREES standard cannot yet be accepted and the governors may not make any moves without consultation with the Minister of Environment and Forestry as the National Focal Point of the UNFCCC," the minister emphasized in the letter.

At the end of her letter, Minister Nurbaya asserted that the various offers of performance-based financing to reduce emissions from deforestation and forest degradation at the sub-national level (provincial), "can only be addressed after consultation with the Minister of Environment and Forestry."


TAGS: CLIMATE CHANGE , DEFORESTATION , LEAF COALITION

RELATED STORIES


POLICY

Indonesia’s national focal point to UNFCCC takes stance on the LEAF Coalition
April 29, 2021

facebookfinal.png wafinal.png twitterfinal.png emailfinal.png
JAKARTA (FORESTHINTS.NEWS) - Indonesian Environment and Forestry Minister Siti Nurbaya, the country’s national focal point to the UNFCCC, has informed governors by letter (Apr 27) that the Indonesian government is not yet able to accept the Lowering Emissions by Accelerating Forest finance (LEAF) Coalition program.

The LEAF Coalition, which was launched at the Leaders Summit on Climate (Apr 22), is a new public-private initiative targeting the mobilization of over USD1 billion to protect and enhance global climate action.

The Coalition has initial participation from the governments of Norway, the United Kingdom, the United States and several leading companies.

Minister Nurbaya provided a number of reasons and background information in her letter to explain in detail why Indonesia cannot yet join the LEAF Coalition. Copies of the letter were sent to President Joko Widodo and relevant ministers, among others.

According to Minister Nurbaya, the call for proposals from the LEAF Coaliton requires that ART-TREES serve as the single methodology and standard in deforestation and carbon evaluation, and this is the first reason why Indonesia is not yet able to join the Coalition.

“The methodology and standard of ART-TREES are not in line with real conditions in Indonesia,” the letter explains.

The second reason, as conveyed in the letter, is that the call for proposals is linked to state jurisdictions, such as coverage of areas and authorities involved, and thus requires extra caution in consideration by the central and local governments.

The third reason detailed in the letter concerns issues relating to carbon pricing trends, uncertainties, leakages, high transaction costs and other requirements. Among the most crucial is the issue of self-financing in advance of the entire process and stages of the implementation of the LEAF program, whether proposed by the central government, local governments, or the private sector.

The fourth reason outlined by Minister Nurbaya in the letter pertains to the fact that all agreements related to carbon business must refer to and align with the presidential regulation on the economic value of carbon, which is to be issued soon, so as not to contravene Indonesian laws and regulations, including the country’s constitution.

The fifth and final reason is that LEAF funding is only to be provided after participants (national/sub-national) are verified and fulfill the requirements of the ART-TREES standard for tracking and monitoring emissions reductions from decreased deforestation and forest degradation. Moreover, the ART-TREES standard is not consistent with Indonesia's land use systems.

The chart below shows the level of Indonesia’s total natural forests in 2019/2020, which amounted to 90.1 million hectares, or 3.7 times the size of the UK or 2.3 times that of Norway. Accounting for 92.8% of the country’s natural forest cover are state forest areas which fall under the authority of the Environment and Forestry Minister.

Outside UNFCCC processes

The minister's letter to the governors also explains that the REDD+ Environmentally Excellency Standard (TREES), a new and voluntary initiative, has the potential to create risks to ongoing processes, both bilaterally and multilaterally.

"The development and arrangements of ART-TREES lie outside the UNFCCC's processes, so there is no obligation for a country to participate with this standard," the letter elaborated.

The letter also underlines that ART-TREES is a method for calculating deforestation through tree cover loss which is subsequently converted into carbon emissions. In addition, the method also classifies all Indonesia's forest vegetation as primary forest, including shrublands.

“This method is not in accordance with the method and system for Indonesia," the letter stresses.

Minister Nurbaya also reminded the governors that Indonesia uses a system for calculating deforestation with the Forest Reference Emission Level (FREL) and calculating the transformation of the Greenhouse Gas Inventory (IGRK) system, as established by the Indonesian National Standards.

Accordingly, the minister's letter reiterates that the application of the ART-TREES method was inappropriate and would be troublesome.

"Apart from that, it will also eliminate or correct the Results-Based Payment (RBP) for Indonesia's achievements in reducing GHG emissions," the minister wrote.

The following chart shows the trend of Indonesia's deforestation rate from 2011/2012 to 2019/2020, indicating that levels of deforestation in 2018/2019-2019/2020 were the lowest in the country's history.

Clear message to governors

Minister Nurbaya pointed out in her letter to the governors that some difficulties would occur if Indonesia was forced to join the LEAF Coalition and use the ART-TREES method.

This would include the potential for undervaluations of carbon value when using the ART-TREES standard.

"The ART-TREES standard only calculates the achievement of reducing carbon emissions from preventing deforestation and forest degradation, while carbon stock enhancement, conservation and biodiversity are not taken into account," the letter states.

As such, "the Indonesian government is not yet able to accept the LEAF standard to be used within Indonesia's jurisdiction in terms of carbon evaluations and credits related to deforestation and forest degradation."

With this in mind, she asked the governors to understand the real conditions and respond appropriately based on the systems and jurisdiction of the Republic of Indonesia as well as for the national interest.

"So, the LEAF Coalition's 'call for proposals' offer with the application of the ART-TREES standard cannot yet be accepted and the governors may not make any moves without consultation with the Minister of Environment and Forestry as the National Focal Point of the UNFCCC," the minister emphasized in the letter.

At the end of her letter, Minister Nurbaya asserted that the various offers of performance-based financing to reduce emissions from deforestation and forest degradation at the sub-national level (provincial), "can only be addressed after consultation with the Minister of Environment and Forestry."


TAGS: CLIMATE CHANGE , DEFORESTATION , LEAF COALITION

RELATED STORIES