Presented by Aida Greenbury, Chair of Private Sector Roundtable at the 3rd Asia-Pacific Rainforest Summit, on 23–25 April 2018 in Yogyakarta, Indonesia

1. The Role of Private Sector in
Forest Conservation & Finance
Aida Greenbury, Chair of Private Sector Roundtable
Asia Pacific Rainforest Summit, Yogyakarta 2018

2. Global GHG emissions and
deforestation
• Forestry and agriculture industry drives at least two-thirds of
tropical deforestation globally with the majority of forest
clearance and impacts stemming from the production of the
“big four” commodities: palm, soy, timber & pulp, and cattle.
• 447 global companies made public commitments to address
the commodity-driven deforestation. Progress (reported
publicly) is only for half of commitments to deforestation-free
supply chains (51%)
• Global GHG emissions from agriculture and forestry: 24%. And
tropical deforestation accounts for about 15% of the world’s
global warming pollution.
• We need to halt deforestation and restore 500 million ha of
tropical forest if we are to meet the Paris agreement of
staying under 1.5 degrees

3. Transformation in Global Commodity Supply Chains
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4. A forest conservation initiative as
the foundation of NDPE
• Global climate and biodiversity crisis – tropical
deforestation for commodities – public concern & NGO
campaigns on brands
• Triggered by Nestle No Deforestation commitment, the
methodology was developed through a multi-stakeholder
collaboration in 2011
• Initially just to identify natural forest but quickly evolved
to a comprehensive but practical land use planning tool
that integrates with other tools
• Started with palm oil, but is now cross-commodity and
cross-regional
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5. Why the Approach?
Practical methodology based on the latest science
Incorporates the latest scientific research and feedback from on-the-ground trials, and is a practical tool for
practitioners and companies to distinguish and protect viable forest areas to implement No/Zero Deforestation.
An integrative process: HCS, HCV & FPIC
Combines HCS, HCV and FPIC approaches into an efficient, unified process that will deliver robust land use planning
on the ground while being more cost-effective for producers and developers and less onerous and confusing for local
stakeholders.
Adaptive: evolving and expanding horizons
Continuously evolving to ensure incorporation of the latest scientific research and key issues, and that it is eventually
implementable by smallholders and can continue to expand across different regions and commodities. The goal is also
for the approach to be integrated into auditable frameworks and requirements, such as the Roundtable on
Sustainable Palm Oil Principles & Criteria.
Multi-stakeholder governance and oversight of the methodology
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6. How Much
Does it Cost?
• Forest conservation: about USD 20 – 100, depends on the region
and level of threats
• Full restoration: about USD 1,000 – 2,000, depends on the soil
condition
• Excluding opportunity cost
• Currently the responsibility for conserving and protecting these
areas is largely with the producer country & organizations and
communities
• Forest conservation does not recognize boundaries: landscape
focused
• DG Regulation on High Conservation Value areas and high
carbon stock forests
• We cannot rely on donor funding for long term
What about consumer goods manufacturers, brands, retailers,
buyers?
They need to address their deforestation footprints and play
their part in supporting and financing forest conservation.

7. Government
Regulation
46/2017
On 10 November 2017, the Indonesian government issued
Government Regulation No. 46 of 2017 on Economic
Instruments in Environmental Matters
There are three environmental economic instruments
under GR 46/2017:
- Economic activities and development planning
- National balance sheet for natural capital
- Environmental funding
- Incentive and/or disincentive

8. Ecological Fiscal
Transfer Mechanism
Intergovernmental fiscal transfers
redistribute tax revenues among levels of
government, from national and regional
governments to local jurisdictions according
to agreed principles and priorities.
Integrating ecological services means
making conservation indices (e.g.
size/quality of protected areas) part of the
fiscal allocation formula to reward
investments in conservation and to
incentivize the expansion of protected
areas.

9. Regulation on Forest
Fund: the Use,
Monitoring &
Evaluating
(Dana Bagi hasil
Sumber Daya Alam
Dana Reboisasi)
Objectives:
- To implement existing relevant
regulations
- To support climate change and
social forestry programs,
including:
Forest protection,
rehabilitation, nursery,
community capacity building,
patrol and control.
- Forest fire prevention and
countermeasure are prioritized
Finance Minister Regulation
230/PMK.07/2017

10. Summary – Forest
Conservation & Finance
• Private Sector:
- Producer
- User
An accountable NDPE platform to link between supply chain to the forests,
through direct interventions at a community level and to collaborate with
partners in the landscapes to achieve a 'nested ecosystem' approach.
Key principles including: multi-stakeholder governance that is free of conflict
of interest, achieving performance and results on the ground, equitable
sharing of benefits, supporting government commitments to GHG emissions
reductions & NDCs.
• Government
• Payment for Ecosystem Services
• Donor
After all, forest conservation is a global responsibility.
Photo: Rhett Butler