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Welcoming Blue Carbon in Indonesian framework of climate change management 
Andi Samyanugraha 
Carbon Trade Mechanism Division - DNPI
Presentation Outline 
•Blue Carbon in national and international climate change policy framework. 
•Current status of market-mechanism support for Blue Carbon. 
•Concluding notes.
Indonesian climate change policy framework 
•Law No. 6/1994: Ratifies United Nations Framework Convention on Climate Change 
•Law No. 17/2004: Ratifies UNFCCC’s Kyoto Protocol 
•Perpres 46/2008: Establishes the National Council on Climate Change (DNPI) 
•Perpres 61/2011: National Action Plan on GHG Emissions Reduction 
•Perpres 71/2011: National GHG Inventory 
•PermenLH 15/2013: MRV system of mitigation actions 
2014 
1994 
2007: Indonesia hosts UNFCCC COP13 which resulting the Bali Action Plan 
2009: President Susilo announces Indonesian voluntary commitment to reduce GHG emissions by 26% under BAU level in year 2020
Indicative list of activities in achieving 26-41% GHG emissions reduction commitment (Perpres 61/2011) 
Sector 
Emission Reduction 
(MtCO2eq.) 
Activities 
Responsible Ministry(ies) 
Unilateral 
Supported 
Forestry and Peat- land 
672 
1,039 
Forest and land fire control, network system management and water management, forestry and land rehabilitation, HTO (Industrial Plantation Forest), HKm (Community Forest), illegal logging eradication, deforestation prevention, community empowerment, etc. 
MoFor, MoPW 
Agriculture 
8 
11 
Introduction of low emission paddy varieties, irrigation water efficiency, organic fertilizer use, land use optimization, waste utilization, etc. 
MoA, MoPW 
Energy and Transport 
38 
56 
Bio-fuel use, engines with higher fuel efficiency standard, improvement in TDM (Transportation Demand Management), quality improvement of public transport and road, demand side management, energy efficiency, renewable energy development, post-mining replanting, etc. 
MEMR, MoT, MoF, MoT, MoSOE, DKI, MoPW 
Industry 
1 
5 
Process modification and clean technology implementation, energy management in energy-intensive industries e.g. cement, ozone-depleting substances eradication, etc. 
MoI 
Waste 
48 
78 
Waste management by 3R, and urban integrated waste water management 
MoPW 
TOTAL 
767 
1,189
Blue Carbon is listed as supporting activities by MMF* in Perpres 61/2011 
No. 
Action Plan 
Target 
Period 
1 
Marine Carbon researches 
5 researches 
2010-2014 
2 
Marine Hazard Study in response to 
Climate Change in SEA Region 
2 studies 
2010-2012 
3 
Implementation of Indonesia Global Ocean Observing System (INAGOOS) 
2 activities 
2010-2014 
4 
Implementation of Indo-China Ocean and Climate Research Centre 
Research in 5 locations 
2010-2014 
5 
Detailed zoning plans of “minapolitan” areas 
400 plans 
2010-2020 
6 
Coastal ecosystem rehabilitation 
300,000 Ha 
2010-2020 
7 
Marine conservation area management 
Implementation in 9 million Ha 
2010-2020 
8 
Marine conservation area rehabilitation 
Implementation in 9 million Ha 
2010-2020 
*MMF=Ministry of Marine & Fisheries
Blue Carbon in the 2nd National Communication 
•There is no reference of Blue Carbon in the 2nd National Communication to the UNFCCC, nor the National GHG Inventory. 
•Coastal and Marine sector is seen more as the affected sector, which requires a lot of adaptation efforts, despite its contribution in GHG emission. 
•However, some numbers are presented in the document that indicates Blue Carbon importance, i.e. loss of mangrove area from 3.7 mio Ha (1997) to 1.5 mio Ha (2005) and 20-25% damage of sea grass areas.
Blue Carbon in the upcoming National GHG Inventories 
•According to Perpres 71/2011, Coastal and Marine sector is not deemed as GHG emission source to be included in national inventory. However, Minister of Environment can put additional sources to be included whenever necessary. 
•According to IPCC Guidelines, a source with significant emissions shall be incorporated in the Inventory. 
•Until the magnitude of Blue Carbon emissions/removals in Indonesia are known and considered as significant, there will be no obligation to measure and report it for National GHG Inventory. 
•BUT, companies in coastal & marine industry may need to measure and report their GHG emissions from energy and product use. (Subject to future regulation from the Ministry of Environment.)
Tapping climate change finance for Blue Carbon 
•COP15 comes with the developed countries commitment to mobilize funding for adaptation and mitigation of climate change $100 billion a year in 2020. 
•COP19 comes up with continuing works on mechanisms (new- market, various approaches and non-market) and a package of 7 decisions in REDD. 
Blue Carbon’s supporting activities in Perpres 61/2011 (RAN-GRK) and beyond, either funded by national budget or international donor, should be targeted to increase readiness in accessing this upcoming climate change finance to support Indonesian development in coastal & marine sector as well as improving its resilience of climate change impacts.
Steps Forward 
•Blue Carbon likely will consist both direct- and indirect-emissions of greenhouse gases. 
•Next steps in Blue Carbon will include: 
a)Defining the scope and coverage of Blue Carbon. 
b)Estimating the Blue Carbon status and projection of emissions and removals. 
c)Establishing the monitoring and reporting system, including the relevant methodologies. 
d)Design, test and implement incentive mechanisms for Blue Carbon using national budget and international grants with a vision to scale up using the upcoming climate finance. 
e)Determine Indonesia position in the UNFCCC negotiation dynamic that inline with Blue Carbon development.
Presentation Outline 
•Blue Carbon in national and international climate change policy framework. 
•Current status of market-mechanism support for Blue Carbon. 
•Concluding notes.
Blue Carbon activities in international carbon market 
•Blue Carbon is the greenhouse gases’ sequestration, emissions and removals from the coastal & marine ecosystem affected by anthropogenic activities within it, thus is possible to be incentivized using market-based-mechanisms, i.e. carbon market, or REDD+. 
•Currently, there are Blue Carbon methodologies/projects in international carbon market BUT the number is very small compare to the other types. 
Name of carbon market mechanism 
Blue Carbon methodology 
Status 
Number of project using the methodology 
Clean Development Mechanism 
Afforestation and reforestation of degraded mangrove habitats 
Approved 
- 
Afforestation and reforestation project activities implemented on wetlands 
Approved 
1 
Afforestation and reforestation of degraded tidal forest habitats 
Submitted 
- 
Verified Carbon Standard 
Methodology for Tidal Wetland and Seagrass Restoration 
First assessment 
- 
American Carbon Registry 
Restoration of Degraded Deltaic Wetlands of the Mississippi Delta 
Approved 
-
Domestic mechanism: The Nusantara Carbon Scheme (NCS) 
•Indonesia has no carbon market drove by an emission cap. However, Indonesian National Council on Climate Change (DNPI) is now developing a GHG programme called the NCS that certify and register emissions reduction/removal. 
•NCS can facilitate trading of Blue Carbon to incentivize blue carbon activities in Indonesia. 
•NCS has 7 scopes as follow: 
•Blue Carbon activities theoritically can be in any scope but most likely will be in scope 5 and 6. 
1 
Renewable energy utilization; 
5 
Aforestation & reforestation; 
2 
Energy efficiency 
6 
Reducing emissions from deforestation and forest degradation 
3 
Industrial efficiency improvement 
7 
Sustainable agriculture 
4 
Sustainable waste management
Example of Blue Carbon activities in carbon market (1) 
Title 
: 
Oceanium mangrove restoration project 
Location 
: 
Senegal 
Mechanism applied 
: 
Clean Development Mechanism 
Status 
: 
Registered 
Emissions reduction 
: 
Estimated at 2,704 tCO2e/year 
Project description 
: 
Project activity plans to establish over the period 2008 – 2009 1,700 ha of mangrove plantations on currently degraded wetlands in the Sine Saloum and Casamance deltas, Senegal. Carbon dioxide will be removed from the atmosphere and stored in carbon pools within the project boundary through the photosynthesis of the planted trees. The project is developed and implemented by Oceanium, a Senegalese NGO, and funded by Danone which finances the project through the “DANONE FUND for NATURE” carried by Livelihoods Fund.
Example of Blue Carbon activities in carbon market (2) 
Title 
: 
Mangrove Restoration and Coastal Greenbelt Protection in the East Coast of Aceh and North Sumatra Province, Indonesia 
Location 
: 
Indonesia 
Mechanism applied 
: 
Clean Development Mechanism 
Status 
: 
Granted Letter of Approval; not yet in CDM pipeline 
Emissions reduction 
: 
Estimated at 56,662 tCO2e/year 
Project description 
: 
The objectives of the project among others are to restore the degraded 5000 Ha mangrove ecosystem, to protect the existing coastal green-belt and to facilitate the improvement of income generation for the local community groups. The project will not only improve the ecological functions of the mangrove ecosystems by reducing the natural disasters (e.g., typhoon, strong sea wave or tsunami) but also will act as ‘carbon sink’ to reduce the greenhouse gas effects of global climate change, and will further promote sustainable local economic development. The project proponent is YAGASU Foundation supported by Livelihoods Fund.
Example of Blue Carbon activities in carbon market (3) 
Title 
: 
Small-scale and low-income community-based mangrove afforestation project on tidal flats of three small islands around Batam City, Riau Islands Province, Republic of Indonesia 
Location 
: 
Indonesia 
Mechanism applied 
: 
Clean Development Mechanism 
Status 
: 
In validation 
Emissions reduction 
: 
Estimated at 3,430 tCO2/year 
Project description 
: 
This project will carry out mangrove afforestation around Batam City totaling 115 ha. The species to be planted, Rhizophora mucronata and Rhizophora apiculata, are the major species in South-East Asia and deemed suitable for this site. 
The project is led by YL Invest Co., Ltd., and the practical work will be collaborated between the Batam Municipality, PT. Yamamoto Asri, International Society for Mangrove Ecosystems (ISME) and the local community.
Mangrove project in Senegal 
Mangrove project in Aceh and North Sumatera, Indonesia 
Mangrove project in Batam, Indonesia 
Mangrove project in Senegal
Presentation Outline 
•Blue Carbon in national and international climate change policy framework. 
•Current status of market-mechanism support for Blue Carbon. 
•Concluding notes.
Concluding Notes 
•Many things are needed to enable optimum role of Blue Carbon in coastal & marine sector development in Indonesia. 
•In particular, three activities should be prioritized: 
–Research to estimate emissions from destruction and degradation of coastal & marine ecosystem; 
–Formulation of Blue Carbon development strategy; and 
–Promoting Blue Carbon as policy option. 
•Options on Blue Carbon mechanism should be elaborated as early as possible. Tapping international climate finance post 2020 will need sectoral readiness that has to be build from now. 
•Existing instruments should be used as building blocks to speed up development and ensure easy harmonization between policies.
Possible Blue Carbon Scheme 
National Budget 
International Grants, e.g. GEF, World Bank, etc. 
Blue Carbon Mechanism 
(Performance-Based-Grant) 
Blue Carbon MRV System 
Carbon/MRV Mechanism, e.g. NCS, CDM, JCM, etc. 
National MRV System 
Blue Carbon Programmes/Projects 
National REDD+ Framework 
Climate Change Finance 
Flow of fund 
Flow of information 
Remarks:

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Welcoming Blue Carbon in Indonesian Climate Change Framework

  • 1. Welcoming Blue Carbon in Indonesian framework of climate change management Andi Samyanugraha Carbon Trade Mechanism Division - DNPI
  • 2. Presentation Outline •Blue Carbon in national and international climate change policy framework. •Current status of market-mechanism support for Blue Carbon. •Concluding notes.
  • 3. Indonesian climate change policy framework •Law No. 6/1994: Ratifies United Nations Framework Convention on Climate Change •Law No. 17/2004: Ratifies UNFCCC’s Kyoto Protocol •Perpres 46/2008: Establishes the National Council on Climate Change (DNPI) •Perpres 61/2011: National Action Plan on GHG Emissions Reduction •Perpres 71/2011: National GHG Inventory •PermenLH 15/2013: MRV system of mitigation actions 2014 1994 2007: Indonesia hosts UNFCCC COP13 which resulting the Bali Action Plan 2009: President Susilo announces Indonesian voluntary commitment to reduce GHG emissions by 26% under BAU level in year 2020
  • 4. Indicative list of activities in achieving 26-41% GHG emissions reduction commitment (Perpres 61/2011) Sector Emission Reduction (MtCO2eq.) Activities Responsible Ministry(ies) Unilateral Supported Forestry and Peat- land 672 1,039 Forest and land fire control, network system management and water management, forestry and land rehabilitation, HTO (Industrial Plantation Forest), HKm (Community Forest), illegal logging eradication, deforestation prevention, community empowerment, etc. MoFor, MoPW Agriculture 8 11 Introduction of low emission paddy varieties, irrigation water efficiency, organic fertilizer use, land use optimization, waste utilization, etc. MoA, MoPW Energy and Transport 38 56 Bio-fuel use, engines with higher fuel efficiency standard, improvement in TDM (Transportation Demand Management), quality improvement of public transport and road, demand side management, energy efficiency, renewable energy development, post-mining replanting, etc. MEMR, MoT, MoF, MoT, MoSOE, DKI, MoPW Industry 1 5 Process modification and clean technology implementation, energy management in energy-intensive industries e.g. cement, ozone-depleting substances eradication, etc. MoI Waste 48 78 Waste management by 3R, and urban integrated waste water management MoPW TOTAL 767 1,189
  • 5. Blue Carbon is listed as supporting activities by MMF* in Perpres 61/2011 No. Action Plan Target Period 1 Marine Carbon researches 5 researches 2010-2014 2 Marine Hazard Study in response to Climate Change in SEA Region 2 studies 2010-2012 3 Implementation of Indonesia Global Ocean Observing System (INAGOOS) 2 activities 2010-2014 4 Implementation of Indo-China Ocean and Climate Research Centre Research in 5 locations 2010-2014 5 Detailed zoning plans of “minapolitan” areas 400 plans 2010-2020 6 Coastal ecosystem rehabilitation 300,000 Ha 2010-2020 7 Marine conservation area management Implementation in 9 million Ha 2010-2020 8 Marine conservation area rehabilitation Implementation in 9 million Ha 2010-2020 *MMF=Ministry of Marine & Fisheries
  • 6. Blue Carbon in the 2nd National Communication •There is no reference of Blue Carbon in the 2nd National Communication to the UNFCCC, nor the National GHG Inventory. •Coastal and Marine sector is seen more as the affected sector, which requires a lot of adaptation efforts, despite its contribution in GHG emission. •However, some numbers are presented in the document that indicates Blue Carbon importance, i.e. loss of mangrove area from 3.7 mio Ha (1997) to 1.5 mio Ha (2005) and 20-25% damage of sea grass areas.
  • 7. Blue Carbon in the upcoming National GHG Inventories •According to Perpres 71/2011, Coastal and Marine sector is not deemed as GHG emission source to be included in national inventory. However, Minister of Environment can put additional sources to be included whenever necessary. •According to IPCC Guidelines, a source with significant emissions shall be incorporated in the Inventory. •Until the magnitude of Blue Carbon emissions/removals in Indonesia are known and considered as significant, there will be no obligation to measure and report it for National GHG Inventory. •BUT, companies in coastal & marine industry may need to measure and report their GHG emissions from energy and product use. (Subject to future regulation from the Ministry of Environment.)
  • 8. Tapping climate change finance for Blue Carbon •COP15 comes with the developed countries commitment to mobilize funding for adaptation and mitigation of climate change $100 billion a year in 2020. •COP19 comes up with continuing works on mechanisms (new- market, various approaches and non-market) and a package of 7 decisions in REDD. Blue Carbon’s supporting activities in Perpres 61/2011 (RAN-GRK) and beyond, either funded by national budget or international donor, should be targeted to increase readiness in accessing this upcoming climate change finance to support Indonesian development in coastal & marine sector as well as improving its resilience of climate change impacts.
  • 9. Steps Forward •Blue Carbon likely will consist both direct- and indirect-emissions of greenhouse gases. •Next steps in Blue Carbon will include: a)Defining the scope and coverage of Blue Carbon. b)Estimating the Blue Carbon status and projection of emissions and removals. c)Establishing the monitoring and reporting system, including the relevant methodologies. d)Design, test and implement incentive mechanisms for Blue Carbon using national budget and international grants with a vision to scale up using the upcoming climate finance. e)Determine Indonesia position in the UNFCCC negotiation dynamic that inline with Blue Carbon development.
  • 10. Presentation Outline •Blue Carbon in national and international climate change policy framework. •Current status of market-mechanism support for Blue Carbon. •Concluding notes.
  • 11. Blue Carbon activities in international carbon market •Blue Carbon is the greenhouse gases’ sequestration, emissions and removals from the coastal & marine ecosystem affected by anthropogenic activities within it, thus is possible to be incentivized using market-based-mechanisms, i.e. carbon market, or REDD+. •Currently, there are Blue Carbon methodologies/projects in international carbon market BUT the number is very small compare to the other types. Name of carbon market mechanism Blue Carbon methodology Status Number of project using the methodology Clean Development Mechanism Afforestation and reforestation of degraded mangrove habitats Approved - Afforestation and reforestation project activities implemented on wetlands Approved 1 Afforestation and reforestation of degraded tidal forest habitats Submitted - Verified Carbon Standard Methodology for Tidal Wetland and Seagrass Restoration First assessment - American Carbon Registry Restoration of Degraded Deltaic Wetlands of the Mississippi Delta Approved -
  • 12. Domestic mechanism: The Nusantara Carbon Scheme (NCS) •Indonesia has no carbon market drove by an emission cap. However, Indonesian National Council on Climate Change (DNPI) is now developing a GHG programme called the NCS that certify and register emissions reduction/removal. •NCS can facilitate trading of Blue Carbon to incentivize blue carbon activities in Indonesia. •NCS has 7 scopes as follow: •Blue Carbon activities theoritically can be in any scope but most likely will be in scope 5 and 6. 1 Renewable energy utilization; 5 Aforestation & reforestation; 2 Energy efficiency 6 Reducing emissions from deforestation and forest degradation 3 Industrial efficiency improvement 7 Sustainable agriculture 4 Sustainable waste management
  • 13. Example of Blue Carbon activities in carbon market (1) Title : Oceanium mangrove restoration project Location : Senegal Mechanism applied : Clean Development Mechanism Status : Registered Emissions reduction : Estimated at 2,704 tCO2e/year Project description : Project activity plans to establish over the period 2008 – 2009 1,700 ha of mangrove plantations on currently degraded wetlands in the Sine Saloum and Casamance deltas, Senegal. Carbon dioxide will be removed from the atmosphere and stored in carbon pools within the project boundary through the photosynthesis of the planted trees. The project is developed and implemented by Oceanium, a Senegalese NGO, and funded by Danone which finances the project through the “DANONE FUND for NATURE” carried by Livelihoods Fund.
  • 14. Example of Blue Carbon activities in carbon market (2) Title : Mangrove Restoration and Coastal Greenbelt Protection in the East Coast of Aceh and North Sumatra Province, Indonesia Location : Indonesia Mechanism applied : Clean Development Mechanism Status : Granted Letter of Approval; not yet in CDM pipeline Emissions reduction : Estimated at 56,662 tCO2e/year Project description : The objectives of the project among others are to restore the degraded 5000 Ha mangrove ecosystem, to protect the existing coastal green-belt and to facilitate the improvement of income generation for the local community groups. The project will not only improve the ecological functions of the mangrove ecosystems by reducing the natural disasters (e.g., typhoon, strong sea wave or tsunami) but also will act as ‘carbon sink’ to reduce the greenhouse gas effects of global climate change, and will further promote sustainable local economic development. The project proponent is YAGASU Foundation supported by Livelihoods Fund.
  • 15. Example of Blue Carbon activities in carbon market (3) Title : Small-scale and low-income community-based mangrove afforestation project on tidal flats of three small islands around Batam City, Riau Islands Province, Republic of Indonesia Location : Indonesia Mechanism applied : Clean Development Mechanism Status : In validation Emissions reduction : Estimated at 3,430 tCO2/year Project description : This project will carry out mangrove afforestation around Batam City totaling 115 ha. The species to be planted, Rhizophora mucronata and Rhizophora apiculata, are the major species in South-East Asia and deemed suitable for this site. The project is led by YL Invest Co., Ltd., and the practical work will be collaborated between the Batam Municipality, PT. Yamamoto Asri, International Society for Mangrove Ecosystems (ISME) and the local community.
  • 16. Mangrove project in Senegal Mangrove project in Aceh and North Sumatera, Indonesia Mangrove project in Batam, Indonesia Mangrove project in Senegal
  • 17. Presentation Outline •Blue Carbon in national and international climate change policy framework. •Current status of market-mechanism support for Blue Carbon. •Concluding notes.
  • 18. Concluding Notes •Many things are needed to enable optimum role of Blue Carbon in coastal & marine sector development in Indonesia. •In particular, three activities should be prioritized: –Research to estimate emissions from destruction and degradation of coastal & marine ecosystem; –Formulation of Blue Carbon development strategy; and –Promoting Blue Carbon as policy option. •Options on Blue Carbon mechanism should be elaborated as early as possible. Tapping international climate finance post 2020 will need sectoral readiness that has to be build from now. •Existing instruments should be used as building blocks to speed up development and ensure easy harmonization between policies.
  • 19. Possible Blue Carbon Scheme National Budget International Grants, e.g. GEF, World Bank, etc. Blue Carbon Mechanism (Performance-Based-Grant) Blue Carbon MRV System Carbon/MRV Mechanism, e.g. NCS, CDM, JCM, etc. National MRV System Blue Carbon Programmes/Projects National REDD+ Framework Climate Change Finance Flow of fund Flow of information Remarks: