Analysis
Financial governance and Indonesia’s Reforestation Fund during the Soeharto and post-Soeharto periods, 1989–2009: a political economic analysis of lessons for REDD+
Thursday, 14 January 2010 13:27    PDF Print E-mail

This study analyses Indonesia’s experience with its Reforestation Fund, and examines implications for REDD+. The Reforestation Fund (Dana Reboisasi, DR) is a national forest fund financed by a volume-based timber levy to support reforestation and forest rehabilitation. Since 1989, the fund has had receipts of US $5.8 billion. During the Soeharto era, the Ministry of Forestry allocated more than US $1.0 billion in cash grants and loans from the Reforestation Fund to promote commercial plantation development. Many recipients fraudulently marked up their costs and overstated areas planted, causing the programme to fall well short of targets. The Ministry also disbursed US $600 million to finance politically favoured projects outside the Fund’s mandate of promoting reforestation and forest rehabilitation. A 1999 external audit by Ernst & Young documented billions of dollars in losses, citing systematic financial mismanagement. Since 1998, successive post-Soeharto governments have taken steps to improve financial governance by: transferring authority over the Reforestation Fund to the Ministry of Finance; strengthening the Supreme Audit Board’s authority to monitor public financial assets; and creating a Corruption Eradication Commission which has prosecuted dozens of senior officials. However, continuing problems with the Reforestation Fund hold significant implications for future REDD+ payment schemes. The study highlights how national strategies to manage both the Reforestation Fund and REDD+ funding streams must: strengthen financial management and revenue administration; deal with corruption, fraud, and loss of state assets; monitor, report, and verify financial transactions; remove misaligned and perverse incentives; ensure accountability and mitigating moral hazard; and distribute benefits equitably.

Author

:

Barr, C.; Dermawan, A.; Purnomo, H.; Komarudin, H.

Publisher

:

Center for International Forestry Research (CIFOR), Bogor, Indonesia.

Publication Year

:

2010

Source: CIFOR

Tags: CIFOR , Occasional Paper , REDD+ , Reforestation Fund , Soeharto

Attachments:
FileDescriptionFile size
Download this file (Occational Paper_CIFOR_52.pdf)a political economic analysis of lessons for REDD+Financial governance and Indonesia’s Reforestation Fund during the Soeharto and post-Soeharto periods, 1989–2009: a political economic analysis of lessons for REDD+739 Kb
Last Updated ( Thursday, 14 January 2010 13:32 )
 
Emerging REDD+: a preliminary survey of demonstration and readiness activities
Friday, 11 December 2009 18:09    PDF Print E-mail

This paper presents the results of a preliminary survey of emerging demonstration and readiness activities to reducing emissions from deforestation and forest degradation and carbon stock enhancement (REDD+) across Africa, Asia, and Latin America. The survey was conducted between November and December 2008, and the information collected was updated until May 2009. While the results of the survey offer a useful snapshot of the landscape of REDD+ activities, they do not capture all the dynamics associated with this rapidly evolving field. As the international debate on REDD+ continues, some projects surveyed may have changed their core objectives and activities, while others may never get off the ground. Another limitation of the survey is the ongoing lack of any clear definition of what constitutes a REDD+ demonstration activity. Despite these shortcomings, this survey offers insights on current trends to inform future REDD+ investments. In total the survey found over 100 REDD+ activities: 44 demonstration activities, 65 readiness activities (including those by the Forest Carbon Partnerhship Facility and the UN-REDD Programme) and 12 activities where carbon is not an explicit goal. Indonesia has by far the most demonstration activities in the pipeline, making Asia the region with the largest number of REDD+ activities. Many projects (68%) are still in the planning stage. A preliminary assessment of incipient REDD+ investments shows the following. First, REDD+ initiatives, especially demonstration activities, tend to target countries where deforestation or the risk of deforestation is significant, which suggests realised carbon effectiveness considerations. Second, poor governance contexts do not discourage REDD+ investments, although cost-efficiency considerations may suggest otherwise. Third, although there is scope for natural equity and co-benefits, there is also a risk of trade-offs between carbon effectiveness and cobenefits. Dry forests – where many rural poor live and where there are high levels of biodiversity – tend to be carbon poor and, thus, feature far less in REDD+ demonstration activities than humid forests. Balancing trade-offs between cost-effectiveness and co-benefit considerations will likely become a central challenge for REDD+ policies and activities. Spatially explicit, high-resolution, environmental and socioeconomic data can offer new scope for REDD+ investments to enhance carbon goals while securing REDD+ co-benefits. Policy makers, donors, and other investors in REDD+ and/or REDD+ co-benefits could assemble such data to enhance their investment choices, monitor their outcomes, and thus provide valuable lessons to inform the national and global REDD+ architecture. Although performance-based payments analogous to payments for environmental services (PES) are core features of the REDD+ idea, the survey further shows that REDD+ policies will require more than PES-type REDD+ schemes. Investments in improved governance and broader policy reforms are equally important to address the root causes of forest emissions. Finding the right policy mix in different country contexts is an important challenge ahead.

Author

:

Wertz-Kanounnikoff, S.; Kongphan-apirak, M.

Publisher

:

Center for International Forestry Research (CIFOR), Bogor, Indonesia.

Publication Year

:

2009

Source: CIFOR

Tags: carbon , environmental , UN-REDD

Attachments:
FileDescriptionFile size
Download this file (WP46Wertz-Kanounnikoff.pdf)REDD preliminary surveyEmerging REDD+: a preliminary survey of demonstration and readiness activities978 Kb
Last Updated ( Friday, 11 December 2009 18:13 )
 
The state of REDD negotiations
Friday, 11 December 2009 17:55    PDF Print E-mail

The state of REDD negotiations: consensus points, options for moving forward and research needs to support the process

The United Nations Collaborative Programme on Reducing Emissions from Deforestation and Forest Degradation in Developing Countries (UN-REDD) commissioned this report from the Center for International Forestry Research (CIFOR) to summarize the current state of negotiations towards a decision in Copenhagen, specifically outlining areas of consensus, options for resolving areas where consensus has not yet been reached, and priorities for research to support successful implementation of an international REDD Programme following a decision at the 15th Conference of the Parties (COP) in Copenhagen.

Author

:

Verchot, L.V.; Petkova, E.

Publisher

:

Center for International Forestry Research (CIFOR), Bogor, Indonesia.

Publication Year

:

2009

Source: CIFOR

Tags: CIFOR , consensus points , negotiations , UN-REDD

Attachments:
FileDescriptionFile size
Download this file (PVerchot0901.pdf)REDD negotiationsThe state of REDD negotiations: consensus points, options for moving forward and research needs to support the process by CIFOR712 Kb
Last Updated ( Friday, 11 December 2009 18:06 )
 
Realising REDD+: National strategy and policy options
Friday, 11 December 2009 17:24    PDF Print E-mail

Reducing emissions from deforestation and forest degradation, and enhancing forest carbon stocks in developing countries (REDD+) started as a global initiative. Much of the initial debate has focussed on the global REDD+ architecture and how REDD+ can be included in a post-2012 climate agreement. But the debates and the focus of actions have now increasingly moved to national and local levels. More than 40 countries are developing national REDD+ strategies and policies, and hundreds of REDD+ projects have been initiated across the tropics. This book wants to inform these national and local processes, by asking some basic questions: How are participating countries going to reduce emissions and increase carbon stocks that they hope to be paid for through global mechanisms? What new institutions, processes, policies, and projects are needed? What are the options in these areas, and how do they compare?

Author

:

Angelsen, A.; Brockhaus, M.; Kanninen, M.; Sills, E.; Sunderlin, W.D.; Wertz-Kanounnikoff, S.; Abdel Nour, H.O.; (eds.).

Publisher

:

Center for International Forestry Research (CIFOR), Bogor, Indonesia.

Publication Year

:

2009

Klik here to download (4 MB)

Source: CIFOR

Tags: climate change , REDD+

Last Updated ( Friday, 11 December 2009 17:54 )
 
Ideas and proposals on the elements contained in paragraph 1 of the Bali Action Plan. Submissions from intergovernmental organizations.
Friday, 02 October 2009 10:47    PDF Print E-mail

The Ad Hoc Working Group on Long-term Cooperative Action under the Convention (AWG-LCA), at its first session, invited Parties and accredited observer organizations to provide additional information, views and proposals on paragraph 1 of the Bali Action Plan (decision 1/CP.13), as may be required for each session. It requested the secretariat to post these submissions on the UNFCCC website. The AWG-LCA, at its second session, further requested the secretariat to compile such submissions from Parties and intergovernmental organizations into separate miscellaneous documents, and make them available one week prior to the respective sessions for consideration by the AWG-LCA. The secretariat received six such submissions from six intergovernmental organizations between 15 June 2009 and 17 September 2009. In accordance with the procedure for miscellaneous documents, these submissions are contained in this document and reproduced in the language in which they were received and without formal editing.

Source: unfccc.int

Tags: AWG-LCA , Bali Action Plan , document

Attachments:
FileDescriptionFile size
Download this file (AWG_LCA_Bali Action Plan.pdf)AWG-LCA Bali Action PlanIdeas and proposals on the elements contained in paragraph 1 of the Bali Action Plan .Submissions from intergovernmental organizations1105 Kb
Last Updated ( Friday, 02 October 2009 11:09 )
 
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Page 1 of 3

Document

Documentation to facilitate negotiations among Parties. Note by the Chair. Addendum. Land use, land-use change and forestry.

Documentation to facilitate negotiations among Parties. Note by the Chair. Addendum. Land use, land-use change and forestry.AbstractThis addendum is a draft decision text on options and proposals on how to ... + READ MORE

Financial governance and Indonesia’s Reforestation Fund during the Soeharto and post-Soeharto periods, 1989–2009: a political economic analysis of lessons for REDD+

This study analyses Indonesia’s experience with its Reforestation Fund, and examines implications for REDD+. The Reforestation Fund (Dana Reboisasi, DR) is a national forest fund financed by a volume-based timber levy to support ... + READ MORE

Draft decision -/CMP.5: Proposal by the President. Copenhagen Accord.

Draft decision -/CMP.5: Proposal by the President. Copenhagen Accord.NotesAgenda item 15High-level segmentDocument codeFCCC/KP/CMP/2009/L.9Publication date18 December 2009Source: ... + READ MORE

Draft decision -/CP.15: Proposal by the President. Copenhagen Accord.

Draft decision -/CP.15: Proposal by the President. Copenhagen Accord.NotesAgenda item 9High-level segmentDocument codeFCCC/CP/2009/L.7Publication date18 December 2009Source: ... + READ MORE

Draft decision -/CMP.5: Outcome of the work of the Ad Hoc Working Group on Further Commitments for Annex I Parties under the Kyoto Protocol. Proposal by the President.

Draft decision -/CMP.5: Outcome of the work of the Ad Hoc Working Group on Further Commitments for Annex I Parties under the Kyoto Protocol. Proposal by the President.NotesAgenda item 15High-level ... + READ MORE

More in: Analysis, Data & information, UNFCCC negotiation, Statement & announcement

Forest & REDD

Carbon project market leads with REDD methodology

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The landmark approval of a carbon accounting methodology to underpin REDD projects in Asia shows the project-based voluntary carbon market leading the way in the development of mechanisms to halt the destruction of climate-critical tropical forests. ... + READ MORE

Norway urged to dump shares of other forest-destroying companies

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Norway's Climate and Forests Initiative, which has set aside billions of dollars for efforts to reduce deforestation, should work with the country's Ministry of Finance to divest the Government Pension Fund from companies ... + READ MORE

Tropical rainforests get major boost from Royal and Corporate support

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BirdLife’s efforts to save threatened rainforests around the globe have received a major boost following the support of HSH Prince Albert II of Monaco and Singapore Airlines at events held in Singapore today. Royal support Speaking to delegates from governments, the private ... + READ MORE

Logged forests retain considerable biodiversity in Borneo providing conservation opportunity

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75 percent of birds and dung beetles remain even after a forest is logged twice. A new study in the Proceedings of the Royal Society B finds that forests which have undergone logging in the past, sometimes even twice, ... + READ MORE

Analysis: Indonesia forest moratorium to stymie palm oil firms

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(Reuters) - Indonesia's plans to halt forest clearing will slow the aggressive expansion of plantation firms in the world's top palm oil producer, leading to higher costs as firms will need acquisitions or improved ... + READ MORE

More in: Forest & REDD

Climate Change

China eyes local carbon trade, CDM priority for now

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(Reuters) - China's plans to launch a series of pilot carbon trading projects starting next year underscores its need to curb its soaring greenhouse gas emissions ... + READ MORE

Bonn climate talks disappointing: RI

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Indonesia voiced concern over the outcome of climate change talks in Bonn, Germany, which seemed to move the world further away from a global treaty on ... + READ MORE

Officials point to Russian drought and Asian deluge as consistent with climate change

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Government officials are pointing to the drought and wildfires in Russia, and the floods across Central and East Asia as consistent with climate change ... + READ MORE

Int’l donors allot $87m grant for environmental projects

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The world’s leading financier for environmental projects, the Global Environment Facility (GEF), has allotted a US$87 million grant to help Indonesia protect its dwindling environmental assets, ... + READ MORE

U.N. climate finance group mulls tax on banks

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BONN, Aug 5 (Reuters) - A U.N. climate finance group is studying funding sources to support countries vulnerable to climate change, including a financial institution tax, it s... + READ MORE

More in: Climate Change