APRIL to MoF NeilFranklin

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Responsible

Responsible Peatland

Peatland Management

Management

Positive Outcomes for Carbon, Conservation

Positive Outcomes for Carbon, Conservation,

,

Community

Community and

and Economic

Economic D

Development

evelopment

December 2009 December 2009

Dr. Neil Franklin Dr. Neil Franklin

Sustainability Director Sustainability Director

Asia Pacific Resources International Ltd (APRIL) Asia Pacific Resources International Ltd (APRIL)

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Challenges

• Some stakeholders hold negative view on all peatland development (due to perceived carbon emissions liabilities) but this position ignores the

scientific basis for benefits of responsible forest management.

• Internationally, intensive plantation forest management in Indonesia still suffers from poor reputation, while the sector itself is not fully recognized as a means of sustainable development and Carbon emissions avoidance.

Opportunities

Responsible Peatland Management can deliver:

• Significant Social, Environmental and Economic benefits

• I tegrated a age e t i support of peat Do e o ser atio

• Positive image of Indonesia in addressing climate change

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3

Mosaic Plantation Forest:

Planning Based on Micro & Macro Delineation with High Conservation Values

High Conservation Value Production Forest Unproductive Production Forest Secondary Production Forest

Protected by Mosaic Plantation Managed and Developed Managed and Developed Acacia Plantation Conservation Area

Vigorous plantation forest and mosaic landscape protect biodiversity, provide ecosystem services, and uplift community well-being

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Research for Sustainable Development

Science-Based Solutions for

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APRIL’s “cie ce

Based Management Support Project

•

Independent team from Delft Hydraulics and world-leading

peatland, conservation and emissions experts

•

US$ 1 Million; 3 year program, 2006-2009.

•

Eco-Hydrological and HCVF spatial planning to optimise

plantations and minimise impact on conservation forests

•

Develop SOPs for Responsible Peatland Management

Pioneering Research on Responsible

Peatland Management

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Planning Guidelines for Peat Landscapes

•

Key objective is to protect the important hydrology core

water source from external impacts by a narrow hydro

buffer and a wider

pla tatio ri g that ha e

well

managed water tables

•

Peat Swamp Forest can be conserved only where its

wet condition is maintained. Landscape planning must

define how central core and all designated Conservation

areas will be protected from plantation drainage

impacts, including dealing with the ineviatable

subsidence of drained plantation lands

•

Limit drainage impacts on conservation ideally by

conserving whole catchment areas, develop others:

minimum fragmentation (eco-hydrology principles)

•

Plantation landscape water management is designed to

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Science Based Peat Management Project

APRIL in partnership with NGO and Academic stakeholders

• Monitor water & gas stock & flux in large acacia & jungle areas

• Derive an annual water & Carbon balance

• Construct a hydrology process model

• Predict seasonal water surplus & deficits

• Preemptive control adjustments to keep the system at optimal water level

• Understand the subsidence & Carbon release process

Ground water flows

Deep ground water flows Surface flows water table water inflow photosynthesis Root respiration Root decay oxidation dewatering consolidation Peat formation

Peat bulk density

Soil temp

Litter to humus

interventions

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Eco-Hydro Management

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9 9

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Eco-Hydrology Planning and Peatland Profile

• Central Dome or og plai porous /lo de sity peat, must conserve as water source (upstream, deep peat).

• Mid-slopes with adequate peat density: hydro buffer to prevent drainage impacts on the upslope central conservation core and Dome.

• Mid-lower slopes with adequate topographic gradient / peat porosity: acacia plantation ring under best practice water management

• Lowest elevation riparian and seasonal flood plain: conserve high biodiversity

peat s a p forest i riparia orridor a d asi peat ater si ks hydrology

conservation function as well)

• Alluvial / mineralized peat fringe: high priority to conserve biodiversity but largely occupied by community: promote sustainable livelihoods

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Eco-Hydrology Buffers

• Function: Buffer 0 cm water depth in Conservation Core from 50 cm water depth in plantation

• Location: on the slope edge of bog plain, not inside the zone flatter than 2.0 km between 0.5 m contours. Where 1.5 km contour spacing, 1200 m wide buffer

• Science data: buffers hold water gradient of 15cm / 400 m : 45 cm over 1200 m

• Where flatter than 1.5 km contour spacing need the 1600 m buffer

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Integrated Forest Management for Conservation

Teluk Meranti Village

Plantation buffer

Water

management zones

Plantation buffer and protected boundaries

No plantation buffer and community encroachment

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Comparison of Eco-Hydrology Plantation Forest

Ma age e t agai st Busi ess as Usual

Degraded forests exposed to external factors

•Illegal logging

•Encroachment

•Uncontrolled drainag

•Forest tree die-back

• Forest & Land Fire

= 60 ton/ha/year CO₂ emission

Managed Eco-hydrology Plantation Forest

-•No forest & land fire

•Productive acacia plantation

•Managed water level

•Hydrologic buffers

•Protected Conservation Areas

= 45-55% avoided emissions

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Al Hooijer (Delft Hydraulics, Holland), Dr. Susan Page (Leicester University, UK), Dr. Ruth Nussbaum (ProForest, UK).

• The i depe de t tea supports AP‘ILs o it e t to a age e t of

peatlands through the SBMS Project for Sustainable Peatland Management.

• Forests and carbon sinks in peatland can only be sustainably managed if the hydrological system is protected or rehabilitated. This is of importance for conservation, and also vital for long-term economic production on peatland.

• Degraded land contains low conservation value and is of marginal potential for agriculture, but holds huge carbon deposits. Such land needs to be

properly managed to minimize forest loss, land fires & carbon emissions.

• A new approach must be developed through the establishment of buffer zones and water control infrastructure (to balance water requirements, maximise production and minimise impact on intrinsic or adjacent

conservation landscapes).

CONSERVATION PRODUCTION

Statement on Sustainable Peatland

Management by SBMS Project Team

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Practical Solutions

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Current Degradation in Kampar Core

Hydrology is a Liability

Still intact forested Core area, not impacted by hydrology degradation

Based on 300 sample points 0-50 cm

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Kampar Ring Plantation

Integrated Landscape Management Planning

Estate Meranti (South Ring)

Estate Tasik Belat (North Ring)

Total concession area of approx. 56,000 Ha

Plantations: 35,000 Ha

Conservation: 15,000 Ha

Community: 6,000 Ha

250,000 Ha of Deep Peat Swamp Forest protected within Plantation &

Community Ring

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Indigenous trees (also functions as hydro buffer to

river conservation areas)

Livelihood zone (for community agriculture)

Production (with hydro

management in canals) _{Livelihood zone}_{Livelihood zone}_(for community agriculture)

Hydro buffer (controlled

Hydro buffer (controlled and raised water levels)

Conservation

(upstream deep peat)

Plantation Ring Plan

–

Meranti Estate

(Kampar Ring South)

Hydro buffer (for minimal impact

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Water control gates to

optimise at 50-60cm in

plantations, and 0-20cm in conserv. areas

Eco-Hydro Management

Water control for minimum impact conservation boundaries and reduced carbon emissions

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Kampar Ring: Reduced Emissions

from Deforestation and Degradation

• Protective Ring of responsibly managed plantations

• Reduced emissions impact right across the landscape

• Protection of ecosystems and biodiversity in core area

• Creation of several thousand additional jobs

• Prevention of illegal logging and opportunist settlers

• Collaborative management with stakeholders

• Poverty alleviation and participation by local communities

• Avoided Emissions of 3 Million tons CO₂ /year with Ring

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Social and Economic Development

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Private Sector: Bridging the Social Gap

Active in social development and poverty alleviation in order to raise the standards and quality of living through the promotion of the following community empowerment programs:

-

Integrated Farming System (80 villages; 3,000 families)

-

Micro Small & Medium Business Program (development of 1,200 people)

-

Community Fiber Farming 30,000 Ha

(9,800 people in 32 villages)

-

Social & Infrastructure Program

(education, free health services for 20,000 people every year, building of mosques, schools, sports and cultural facilities)

-

Vocational Training Program (689

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• Generate employment opportunities and SME development towards alleviating poverty and upgrading community well-being.

Based on results of 2006 University of Indonesia Faculty of Economics LPEM study:

• Supporting local development through infrastructures (roads, bridges, ports) reaching remote areas.

• One of the largest export earners in Indonesia – up to US$ 1.5 billion/year, and capital intensive within APRIL Indonesia with total assets of USD 5 billion.

Case-Study PT RAPP: Economic Contribution

*) Output: Market value of goods and services resulting from production activities to supply intermediate and end demands. Figures in table represent economic output/revenue resulting from the presence of Riaupulp in Riau Province

**) Gross Domestic Product - Regional

Riau Pelalawan

Indicator ₁₉₉₉ ₂₀₀₅ ₁₉₉₉ ₂₀₀₅

Value (%) Value (%) Value (%) Value (%)

Output (Rp billion)*) 6,347 (4.53) 17,400 (7.43) 2,773 (76.04) 9,315 (54.22) Gross Domestic Product - Regional

(Rp billion**) 2,405 (2.89) 6,593 (4.74) 1,052 (72.29) 3,533 (51.54) Family Income

(Rp billion) 622 (4.25) 1.705 (6.97) 263 (69.03) 883 (49.22)

Employment Opportunities

(people) 137,780 (8.00) 249,241 (9.39) 18,571 (13.48) 36,125 (14.49)

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Scaling-Up

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•

Consensus position of 200 of the

worlds forestry stakeholders

(Govt, Private, NGO, Community)

•

Forests have a unique ability to

simultaneously reduce

greenhouse gas emissions,

capture carbon, & reduce the

vulnerability of people and

ecosystems to climate change.

•

Sustainably managed forests

support livelihoods of millions of

rural people and deliver products,

ecosystem services and

biodiversity protection.

The Forests Dialogue 2009:

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Potential Co-Benefits of Indonesian

Plantation Forestry

If Indonesian develops additional

9M Ha land (15% of production

forest) into HTI, Mosaic Plantation

Concept will result in:

–2.1M Ha protected natural forest in conservation areas

–2.3M Ha land managed by villagers for social development

–4.6M Ha plantations

–161M m3 of sustainable fiber/yr for world market.

–38 M Adt pulp production

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•

I the lo g ter , a

sustainable forest management

strategy aimed at maintaining or increasing forest carbon

stocks, while producing an annual sustained yield of timber,

fiber or energy from the forest,

will generate the largest

sustained mitigation benefit

.

Source: IPCC 2007. Fourth Assessment Report.

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• A new science-based approach must be developed through the

establishment of buffer zones and water control infrastructure (to balance water requirements, maximise production and minimise impact on intrinsic or adjacent conservation landscapes). [Source SBMSP Project 2009].

• Sustainable Plantation Ring Management in Kampar is essential for

protecting the Kampar Peninsula Core peatland, reducing carbon emissions by 50% (compared to present condition, reducing from 6 to 3 Million Tons CO2/year) and achieving balanced social, environmental and economic benefits in a Sustainable Development context

• Sustainable Peatland Management in Kampar Ring can become the model for Government to showcase during COP XV UNFCCC summit , ith a

Win-Wi solutio hi h i tegrates the atio al de elop e t a d li ate

change mitigation objectives.

• Positi e out o es fro la ds ape le el pla i g of I do esia s peatla ds

can provide maximum benefits to society – including environmental protection, economic & social development and carbon (REDD+).

SUMMARY

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Acknowledgements of Best Practice

•Quality Management System (QMS) Certification

Pulp Production

Paper Production

•ISO Certification

Paper Permanence

•EMS Certification

Integrated Paper Production

•Environmental Management System (EMS) Certification

Riaupulp Fiber Estates

•OHSAS Certification

Riaupulp Fiber Operations

APRIL Mill Operations

•Runner-Up, Environmental Excellence Award –

HTI & HTR Development –Conservation and Community Aspects

•GREEN Rating PROPER 2005-2006; 2006-2007; 2008-2009 by the Ministry for Environment

Program for Rating Environmental Management Performance

•1st_Place–_{Best Practice, Social Programs Overall}

•1st_Place–_{Best Practice Social Program (Social Category)}

•Audit Certification, Occupational Health and Safety Management System

•Verification Statement, Acacia Chain of Custody

• Certification, Sustainable Plantation Forest Management System (LEI)

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Thank you

SUSTAINABLE FOREST MANAGEMENT

Balancing Carbon, Social, Environmental

and Economic Imperatives for Sustainable