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REDD Project Feasibility Assessment Project Name : Avoided Unplanned Deforestation in the Nanga Betung Community Forest (Hutan Desa), Kapuas Hulu, West Kalimantan, Indonesia Project Location : Nanga Betung Community Forest, Kecamatan Boyan Tanjung, Kabupaten Kapuas Hulu, West Kalimantan, Indonesia. Lead Organization : FFI Indonesia Programme Contact : Komplek Lab. UNAS Jl Harsono RM1, Ragunan, 12500 Jakarta, Indonesia Web : www.fauna-flora.org UK Telephone : +44 (0)203 176 3408 Indonesia Telephone : +62 (0)21 7800 981 Email : [email protected] Partner : Nanga Betung Forest Management Institution Jl. Lintas Selatan Putussibau, Kecamatan Boyan Tanjung, Kabupaten Kapuas Hulu, West Kalimantan Baseline scenario : Unplanned deforestation Forest Designation : Limited Production Forest (Hutan Produksi Terbatas, HPT) Project scenario : The overarching project activity is the avoided forest conversion, via the process of establishing a community forest (Hutan Desa) license, Right of Management, and Utilisation License for Carbon Sequestration for the Hutan Desa Nanga Betung and associated communities (Desa), in accordance with relevant Indonesian laws and regulations. Avoided emissions : 484,037 ton CO 2 e in 10 years.

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Page 1: REDD Project Feasibility Assessment

REDD Project Feasibility Assessment

Project Name : Avoided Unplanned Deforestation in the Nanga Betung Community

Forest (Hutan Desa), Kapuas Hulu, West Kalimantan, Indonesia

Project Location : Nanga Betung Community Forest, Kecamatan Boyan Tanjung,

Kabupaten Kapuas Hulu, West Kalimantan, Indonesia.

Lead Organization : FFI Indonesia Programme

Contact : Komplek Lab. UNAS

Jl Harsono RM1, Ragunan, 12500 Jakarta, Indonesia

Web : www.fauna-flora.org

UK Telephone : +44 (0)203 176 3408

Indonesia Telephone : +62 (0)21 7800 981

Email : [email protected]

Partner : Nanga Betung Forest Management Institution

Jl. Lintas Selatan Putussibau, Kecamatan Boyan Tanjung,

Kabupaten Kapuas Hulu, West Kalimantan

Baseline scenario : Unplanned deforestation

Forest Designation : Limited Production Forest (Hutan Produksi Terbatas, HPT)

Project scenario : The overarching project activity is the avoided forest conversion, via the

process of establishing a community forest (Hutan Desa) license, Right

of Management, and Utilisation License for Carbon Sequestration for

the Hutan Desa Nanga Betung and associated communities (Desa), in

accordance with relevant Indonesian laws and regulations.

Avoided emissions : 484,037 ton CO2e in 10 years.

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Executive Summary

In April 2012, the Nanga Betung community requested a village forest (Hutan Desa) permit for

their 1,891 ha forest area. The permit will grant the Hutan Desa management institution to

manage the forest and simultaneously reduce the possibility for large-scale land conversion (i.e.

oil palm expansion). The area of Hutan Desa Nanga Betung was a timber concession. This

proposed Hutan Desa is potential as clean water reservoir, as cultivation area, as medicinal plant

sources and as natural resources that supports fish culture and provides timber and non-timber

forest products for household need on top of providing functions for erosion and sedimentation

prevention. The Hutan Desa area has been categorized into three zones: Core Zone (1,040ha),

Customary Zone (422ha), and Cultivation Zone (421ha).

The Hutan Desa Nanga Betung has high biodiversity values. An endangered tree species, 28

mammal’s species (16 important species: endemic, protected, endangered), 143 avifauna species

(42 important species), 33 herpetofauna species, 20 amphibians and 13 reptiles (8 important

species) were recorded in Hutan Desa Nanga Betung. Main threats for the forest stands and

biodiversity richness are poaching and illegal logging by the surrounding communities. Thus,

engaging and benefiting local community in term of forest and biodiversity protection is crucial.

With 170 household in the villages, REDD financing can significantly ease the financial burden

by creating alternative income and paying the opportunity cost of not converting forest to other

land use.

It is proposed that revenue from sale of Voluntary Emission Reductions (VERs) from the

conservation of 1,040 ha forest be used to finance the conservation the forest core zone along

with the biodiversity aspect in it. The proposed Carbon Accounting Area (CAA) is in the core

zone of Hutan Desa Nanga Betung. The project life is expected to be 30 years, over which time

an estimated 1.4 million ton CO2e of avoided emission credits will be generated. Estimated

emission reductions per Hutan Desa size (1,891 ha) is 25.6 ton CO2e ha-1 year-1, and estimated

emission reductions per capita is 72.24 ton CO2e per villagers.

Hence, based on the carbon, biodiversity, and identified social benefits, the Avoided Forest

Conversion project in the Hutan Desa Nanga Betung is feasible to be implemented.

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3. FIT WITH CARBON STANDARDS & METHODOLOGIES

3.1. Applicable carbon standards

The project will follow the Verified Carbon Standard’s (VCS) approved methodology entitled

“Methodology for Avoided Unplanned Deforestation, VM0015”, with the possibility to use Plan

Vivo standard or a combination of those standards.

3.2. Availability of methodologies applicable and suited to project context

The applicable VCS methodology for Hutan Desa Nanga Betung is the avoided unplanned

deforestation. The Plan Vivo methodology is embedded in the interventions strategies and

project activities that rely on the community participatory, which is also suitable for the proposed

project area. Unlike the VCS standard, CCB standard only has one methodology that require to

address the legal status and property rights, and also the net positive of climate, community and

biodiversity impact. The CCB standard can be applied to any land-based carbon projects

including both projects that reduce greenhouse gas emissions through avoided deforestation and

forest degradation (REDD) and projects that remove carbon dioxide by sequestering carbon (e.g.,

reforestation, afforestation, revegetation, forest restoration, agroforestry and sustainable

agriculture). Thus, all proposed standards are potentially suitable for this project.

Few challenges that might be faced in applying the VCS standard are providing the 95%

confidence level in estimating the carbon emissions and the number of sampling plots needed.

Although the Plan Vivo standard does not require for 95% confidence level, this standard require

participation from all community especially in deciding the emission baseline and planning

project activities which might be a challenge in the future. There are no potentially vital

challenges in applying the CCB standard in the project. The most challenging condition in

applying the CCB, and other standards as well, is in estimating the deforestation rate for baseline

emissions. This is always a problem because there are never enough data from reliable sources

that address this problem.

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3.3. Data availability

There are several data available for this project site:

a. Biodiversity data (mammals, herpetofauna, avifauna)

b. Habitat descriptions (vegetation cover and dominance)

c. Spatial data (maps, geographic locations)

d. Aboveground biomass data

e. Social data (demography)

In-depth data mining will be needed to address potential challenges in the future, especially for

the leakage dynamics, carbon stocks, and determining the baseline emission level in addition to

the monitoring project performance.

4. PROJECT CARBON BENEFITS

4.1. Forest area and types, carbon stocks

As the preliminary vegetation classification, the Hutan Desa Nanga Betung has two types of land

cover: secondary dry forest (1,664.69 ha) and agriculture mixed with shrub (216.38 ha; Figure

1). These land cover type classifications were based on the satellite image and field data analyses

of forest disturbance and land classification (e.g. soil type, geology).

Following Kenzo (2009) allometric equation, the average carbon stock in Hutan Desa Nanga

Betung is 93.31+13.61 ton C/ha (Table 1). The highest mean of the AGB are found in plot NB

2.4 and NB 2.1 (Table 2). Like common forest field data, the populations found are not normally

distributed and have extreme values within the 95% confidence interval of the mean (Figure 3,

Figure 2, Figure 4).

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Table 1. The above ground biomass distribution across all sampling plots in Hutan Desa Nanga

Betung.

Plot Name AGB (ton/ha)

DBH Class A DBH Class B DBH Class C

NB 1.1 117.32 65.10 45.04 NB 1.2 90.86 55.72 20.80 NB 1.3 54.57 31.05 8.14 NB 1.4 150.62 54.17 26.37 NB 1.5 64.49 38.98 17.20 NB 2.1 271.04 32.25 12.87 NB 2.2 180.69 53.87 26.99 NB 2.3 175.08 43.68 31.17 NB 2.4 118.76 12.14 13.16 NB 2.5 138.62 20.06 14.58 Mean AGB 136.21 40.70 21.63 Std. Deviation 60.34 16.11 10.44 TOTAL AGB (ton/ha) 198.54

Std. Deviation 13.61 Area Size (ha) 1,040.00 Total C (ton/ha) 93.31 Total C (ton) 97,046.51 Total CO2e (ton/ha) 342.46 Total CO2e (ton) 356,160.70

Table 2. The total above ground biomass of each DBH classes in Hutan Desa Nanga Betung.

Plot

Name

Mean AGB

(ton/ha)

Std.

Error

Std.

Deviation

95% CI for Mean

Lower

Bound

Upper

Bound

NB 1.1 4.94 0.47 3.17 4.00 5.89 NB 1.2 4.08 0.38 2.41 3.32 4.84 NB 1.3 3.91 0.47 2.30 2.94 4.88 NB 1.4 4.92 0.58 3.97 3.75 6.09 NB 1.5 3.26 0.39 2.37 2.47 4.05 NB 2.1 5.86 1.23 9.07 3.38 8.33 NB 2.2 5.13 0.51 3.61 4.11 6.14 NB 2.3 3.97 0.51 4.02 2.96 4.98 NB 2.4 6.00 1.63 7.97 2.64 9.37 NB 2.5 4.44 0.54 3.35 3.36 5.53

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Figure 1. Vegetation classification of Nanga Betung Forest.

Figure 3. The distribution of the number of trees’ found in different DBH classes, against the normal distribution curve.

Figure 2. The box plot distribution of the AGB found in each transects.

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4.2. Baseline drivers and agents

The agent of deforestation and forest degradation is solely from the surrounding community. The

community has been proposing the forest area as community forest from the Ministry of

Forestry. Thus, the community will have the right to manage the forest with a 50m3/year

allocation for timber harvest.

The forest village institution has been established in May 2012, and made a forest zonation to

reduce the risk or leakage and non-permanence. The forest area then has been classified into

three zones: Core Zone (1,040ha) where no timber-collecting activity can be carried there,

Customary Zone (422ha) where ceremonial and traditional needs can be obtained from that area,

and Cultivation Zone (421ha) where the community can harvest woods, including tapping and

planting rubbers. All the activities in the forest (across all zones) will need to follow the Hutan

Desa and the proposed standards requirements to maintain the community forest permit and to be

eligible as a carbon trade project. The carbon accounting area for this project is in the Core Zone

as the most protected area in the forest.

Figure 4. The stack bar graph distribution of AGB mean across the sampling plot.

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4.3. Baseline scenario of forest cover and carbon stock changes

The baseline scenario was derived from three types of data in the provincial level. The first data

showed a 5.1% deforestation rate based on Landsat Imageries analyses from 2000-2005

(Adhikerana and Sugardjito, 2010); the second data showed a 0% deforestation rate based on

forest cover changes from 2002-2010 (BPS Kalbar, 2002-2010); and the third data showed a 3%

deforestation rate based on Landsat Imageries analyses from 2001-2011 (BAPLAN, 2001-2010).

The last figure is the most possible conservative figures that publicly available, and from the

legal government document (Table 3). Thus, for the purpose of this feasibility study, 3%

deforestation rate was chose as the baseline scenario. The baseline scenario will be updated with

the most recent, reliable, and available figures in the future. Further research has been developed

to obtain the deforestation rate in the district. The total baseline emission is 537,819 ton CO2e in

10 years and 484,037 CO2e after 10% risk buffer deduction (Table 4). The assumptions used for

these analyses are that there will be no encroachment in the core zone as the carbon accounting

area, and if there is an encroachment, it can be compensated by the tree growth that is not

counted in the carbon stock estimations. Estimated emission reductions per Hutan Desa size

(1,891 ha) is 25.6 ton CO2e ha-1 year-1, and estimated emission reductions per capita is 72.24 ton

CO2e per villagers.

Table 3. Compilation of forest status in West Kalimantan derived from Forestry Planning

Department 2001-2010.

Forest Type/ Forest Non Forest

Year 2001 2005 2007 2010 2001 2005 2007 2010

KSA-KPA 1,184.00 1,164.37 1,164.37 1,260.10 190.00 294.04 294.04 308.40 HL 1,770.00 1,843.60 1,843.60 1,833.30 392.00 453.46 453.46 473.80 HPT 1,492.00 1,504.71 1,504.71 1,510.20 686.00 898.17 898.17 935.80 HP 952.00 864.90 864.90 842.90 1,113.00 1,395.19 1,395.19 1,422.90 HPK 296.00 287.85 287.85 280.80 169.00 216.33 216.33 233.60 APL 1,018.00 942.39 942.39 802.60 3,969.00 4,677.29 4,677.29 4,686.30

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Table 4. The estimated emission reductions for 10 crediting years.

Crediting Year Estimated ERs Estimated ERs after risk buffer deduction ERs Per-Hutan Desa Demography ERs Per-Capita

Year Ending (t CO2-e) (t CO2e) Size (t CO2e/ha) (individu) (t CO2e/individu)

1 1 10,685 9,616 5.09 614 15.662 2 21,049 18,944 10.02 623 30.403 3 31,102 27,992 14.80 633 44.254 4 40,854 36,769 19.44 642 57.275 5 50,313 45,282 23.95 652 69.496 6 59,489 53,540 28.31 661 80.947 7 68,389 61,550 32.55 671 91.688 8 77,022 69,320 36.66 681 101.729 9 85,396 76,857 40.64 692 111.1210 10 93,519 84,167 44.51 702 119.89

537,819 484,037 255.97 6,571 722.42

53,782 48,404 25.60 657 72.24

Total ERs over

Average annual

Figure 5. The graph of the project baseline and project scenario for carbon stock in Hutan

Desa Nanga Betung.

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4.4. Project Scenario & Net Carbon Benefits

By assuming no harvest or encroachment in the forest core zone, and using the average price of

carbon payment per ton CO2e, the project is potentially to earn $2.4 million under the VCS

standard, $2.9 million under the CCB standard, or $4.3 million under the Plan Vivo standard in

10 years (Table 5).

Table 5. The potential carbon benefits in Hutan Desa Nanga Betung.

Crediting year Year ending Net Carbon Benefit (US $)

VCS CCB Plan Vivo

1 1 48,081.69 57,698.03 86,547.05 2 2 94,720.94 113,665.12 170,497.69 3 3 139,961.00 167,953.20 251,929.80 4 4 183,843.87 220,612.64 330,918.96 5 5 226,410.24 271,692.29 407,538.44 6 6 267,699.63 321,239.56 481,859.34 7 7 307,750.34 369,300.40 553,950.60 8 8 346,599.52 415,919.42 623,879.13 9 9 384,283.23 461,139.87 691,709.81 10 10 420,836.42 505,003.71 757,505.56

Total Carbon Benefit over 10 years (US$) 2,420,186.88 2,904,224.26 4,356,336.39

Average annual ERs (US$) 242,018.69 290,422.43 435,633.64

4.5. Additionallity of Project Activities

The carbon emission can be avoided only by implementing the REDD/carbon financing to the

community. This is merely because the agent of deforestation, and the authorized actors for the

forest management, is the community. With the level of economy, education, and social

condition in the community, it is crucial to involve and benefiting the community through the

implementation of this carbon trade project.

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5. PROJECT BIODIVERSITY BENEFIT

The Hutan Desa Nanga Betung has high biodiversity value. An endangered tree species from

Dipterocarpaceae family was found in the forest, Shorea leprosula. A total of 28 mammal’s

species was recorded in Hutan Desa Nanga Betung with one species is categorized as an

endangered species by IUCN, 5 species as vulnerable, 2 species listed in CITES appendix 1, and

7 species listed in CITES appendix 2. In addition, six species are protected under GoI

regulations, and 7 species are endemic to the Borneo island (Table 6).

A total of 143 avifauna species was recorded with one species is identified as an endangered species, 3 species as vulnerable species, and another 3 species as endemic species. Among those species, one species is listed in CITES appendix 1, 2 species in CITES appendix 2, and 31 species protected under GoI regulations (

Table 7. Important amphibians and reptiles found in Hutan Desa Nanga Betung.

Table 8). Based on semi structured-interview data, illegal hunting and poaching activities are

still high for avifauna species that have economy values (e.g. voice, feather, meat). Most of the

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targeted species for poaching and hunting are species from Turdidae, Sturnidae, Chloropseidae,

Psittacidae, and Pycnonotidae family.

A total of 33 herpetofauna species, 20 amphibians and 13 reptiles, was recorded in Hutan Desa

Nanga Betung with two species categorized as vulnerable, 6 species are endemic, and 2 species

are in CITES appendix II (Table 7). Some hunting activities (for meat) were recorded in Hutan

Desa Nanga Betung. Limnonectes sp., turtles, and Malayan softshell turtles were the targeted

species for hunters.

Figure 6. Several important species found in Hutan Desa Nanga Betung: (top) Notochelys

platynota, (bottom) Ceyx rufidorsa, (right) Presbytis rubicunda.

Table 6. Important mammal species found in Hutan Desa Nanga Betung.

DD LC NT VU EN I II NB1 NB2

1 Echinosorex gymnurus Erinaceidae 1 12 Tupaia minor Erinaceidae 1 1 13 Tupaia glis Erinaceidae 1 1 1 14 Nycticebus coucang(menagensis) Lorisidae 1 1 1 1 15 Presbytis rubicunda Cercopithecidae 1 1 1 1 16 Presbytis frontata Cercopithecidae 1 1 1 1 17 Macaca fascicularis Cercopithecidae 1 1 1 18 Hylobates (agilis) albibarbis Hylobatidae 1 1 1 1 1 19 Ratufa affinis Sciuridae 1 1 1

10 Callosciurus orestes Sciuridae 1 1 111 Exilisciurus exilis Sciuridae 1 1 1 112 Maxomys whiteheadi Muridae 1 113 Chiropodomys major Muridae 1 1 114 Hemigalus derbyanus Viverridae 1 1 115 Tragulus javanicus Tragulidae 1 1 116 Muntiacus muntjak Cervidae 1 1

EndemicTransects

No. Species FamilyIUCN CITES

GOI

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Page | 13

EN VU NT LC I II

1 Accipitridae Spilornis cheela 1 1 1

2 Accipitridae Haliastur indus 1 1 1

3 Accipitridae Spizaetus nanus 1 1 1

4 Accipitridae Accipiter trivirgatus 1 1 1

5 Accipitridae Spizaetus alboniger 1 1 1 1

6 Accipitridae Macheiramphus alcinus 1 1 1

7 Accipitridae Hieraaetus kienerii 1 1 1

8 Alcedinidae Alcedo meninting 1 1

9 Alcedinidae Ceyx rufidorsa 1 1

10 Alcedinidae Pelargopsis capensis 1 1

11 Bucerotidae Anorrhinus galeritus 1 1 1

12 Bucerotidae Anthracoceros malayanus 1 1 1

13 Bucerotidae Aceros corrugatus 1 1 1

14 Bucerotidae Buceros rhinoceros 1 1 1

15 Bucerotidae Rhinoplax vigil 1 1 1

16 Columbidae Treron capellei 1

17 Cuculidae Centropus rectunguis 1

18 Dicaeidae Prionochilus xanthopygius 1 1

19 Falconidae Microhierax fringillarius 1 1 1

20 Laniidae Pityriasis gymnocephala 1 1

21 Nectariniidae Arachnothera longirostra 1 1

22 Nectariniidae Arahnothera crassirostris 1 1

23 Nectariniidae Anthreptes singalensis 1 1

24 Nectariniidae Anthreptes rhodolaema 1 1

25 Nectariniidae Anthreptes malacensis 1 1

26 Nectariniidae Aethopyga siparaja 1 1

27 Nectariniidae Anthreptes simplex 1 1

28 Nectariniidae Leptocoma sperata 1 1

29 Phasianidae Argusianus argus 1 1

30 Phasianidae Lophura ignita 1 1

31 Pittidae Pitta sordida 1

32 Ploceidae Lonchura fuscans 1 1

33 Psittacidae Loriculus galgulus 1 1

34 Rhipiduridae Rhipidura javanica 1 1

35 Rhipiduridae Rhipidura perlata 1

36 Strigidae Ninox scutulata 1 1

37 Strigidae Strix leptogrammica 1 1

38 Strigidae Otus lempiji 1 1

39 Sturnidae Gracula religiosa 1 1 1

40 Trogonidae Harpactes duvaucelii 1 1

41 Trogonidae Harpactes kasumba 1 1

42 Tytonidae Phodilus badius 1 1

EndNo Family Scientific NameIUCN CITES

GoI

Table 7. Important amphibians and reptiles found in Hutan Desa Nanga Betung.

Table 8. Important avifauna species found in Hutan Desa Nanga Betung.

NE LC NT VU I II

1 Limnonectes leporinus Dicroglossidae 1 12 Limnonectes rhacoda Dicroglossidae 1 13 Leptolalax dringi Megophryidae 1 14 Hylarana raniceps Ranidae 1 15 Rhacophorus harrissoni Rhacophoridae 1 1

6 Opisthotropis typica Colubridae 1 17 Ophiophagus hannah Elapidae 1 18 Notochelys platynota Geoemydidae 1 1

Amphibians

Reptiles

IUCNGOI Endemic

CITESNo. Species Name Family

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6. PROJECT SOCIAL BENEFIT

The ethnicity in Nanga Betung is predominantly Malay and almost 100% is Moslem. Only a

small number of Javanese resides in this village to work as civil servant, merchants, and as part

of transmigration program.

Around 614 people lives in Nanga Betung village from 170 households with 325 man and 289

women. Most villagers earn their living from community mining (gold) and agriculture (swidden

farming, rubber plantation). The highest income in Nanga Betung is Rp. 3,500,000.00/month,

and the lowest Rp. 500,000.00/month, with an average of Rp. 1,500,000.00/month.

Since most of the villagers are Malay and Moslem, the rituals or culture follows the Moslem

religion. Ritual like Yasinan, Bekumus arang, and Buang-buang, are still performed regularly.

However, Bekumus arang and Buang-buang have not being performed anymore by the

community because only few elders remember the procedures.

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With regard to education, the village has an elementary school, junior and senior high schools.

However, only a few of the villagers have completed or are still completing college education.

For the medical facilities, the village has a small clinic. Better medical facilities are available in

the city of Putussibau, approximately 4 hours by car.

The project implementation will benefit those communities that can help in avoiding the carbon

emissions from forest logging and conversion, and also provides them with a better livelihood

and alternative income.

7. CONCLUSION

The Hutan Desa Nanga Betung is threated by illegal logging and possible land conversion. Since

the sole agent of deforestation is the community, it is important to engage and benefiting the

local community in this project to ensure the long-term forest and biodiversity protection. With

170 household in the villages, REDD financing can significantly ease the financial burden by

creating alternative income and paying the opportunity cost of not converting forest to other land

use.

Thus, as all the threats and opportunities have been identified, the Avoided Forest conversion

project is feasible to be implemented in Hutan Desa Nanga Betung.

Page 16: REDD Project Feasibility Assessment

REDD Project Feasibility Assessment

Project Name : Avoided Forest Conversion in the Piasak and Jongkong Kiri Hilir

Community Forest (Hutan Desa), Kapuas Hulu, West Kalimantan,

Indonesia

Project Location : Hutan Desa Piasak, Kecamatan Selimbau, Kabupaten Kapuas Hulu,

West Kalimantan, Indonesia

Hutan Desa Jongkong Kiri Hilir, Kecamatan Jongkong, Kabupaten

Kapuas Hulu, West Kalimantan, Indonesia.

Lead Organization : FFI Indonesia Programme

Contact : Komplek Lab. UNAS

Jl Harsono RM1, Ragunan, 12500 Jakarta, Indonesia

Web : www.fauna-flora.org

UK Telephone : +44 (0)203 176 3408

Indonesia Telephone : +62 (0)21 7800 981

Email : [email protected]

Partner : Piasak Forest Management Institution

Piasak village, Kapuas Hulu District, West Kalimantan

Jongkong Kiri Hilir Forest Management Institution

Jongkong Kiri Hilir village, Kapuas Hulu District, West Kalimantan

Baseline scenario : Planned deforestation

Forest Designation : Other land use (Areal Penggunaan Lain), Limited Production Forest

(Hutan Produksi Terbatas, HPT)

Project scenario : The overarching project activity is the avoided forest conversion, via the

process of establishing a community forest (Hutan Desa) license, Right

of Management, and Utilisation License for Carbon Sequestration for

the Hutan Desa Piasak and Jongkong Kiri Hilir, and associated

communities (Desa), in accordance with relevant Indonesian laws and

regulations.

Avoided emissions : 4.3 million ton CO2e in 10 years.

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Executive Summary

In May 2012, the Piasak and Jongkong Kiri Hilir (JOKI) communities proposed for two Hutan

Desa: Piasak (2,850 ha) and JOKI (4,793 ha). Both of these hutan desa are in one continuous

landscape (side-by-side) with 7,643 ha forest area. These permits will grant the Hutan Desa

management institutions to manage the forest and simultaneously reduce the possibility for large-

scale land conversion (i.e. oil palm expansion). Most of the Hutan Desa areas were part of

Danau Sentarum National Park based on West Kalimantan land use designation (TGHK, 2000).

Another land use designation within Hutan Desa Piasak and JOKI is other land use (APL) with

area 593.666 ha. On 2008, the areas of Hutan Desa areas within the National Park (TN) were

excluded based on boundary mapping by Danau Sentarum National Park (TNDS) and these areas

were proposed as Protection Forest (HL) and Limited Production Forest (HPT). Geographically,

the southwest side of these Hutan Desa is Convertible Production Forest (HPK), and Protection

Forest (HL). Thus, the biodiversity richness and ecosystem uniqueness (RAMSAR site) are need

to be managed and protected. These proposed Hutan Desa is potential as clean water reservoir,

as cultivation areal, as medicinal plant sources and as natural resources that supports fish culture

and provides timber and non-timber forest products for household need on top of the function for

erosions and sedimentations prevention.

The Hutan Desa Piasak-JOKI has high biodiversity values. Six endangered tree species, 32

mammal’s species (18 important species: endemic, protected, endangered), 118 avifauna species

(39 important species), 34 herpetofauna species (7 important species) were recorded in Hutan

Desa Piasak-JOKI. Main threat for the forest stands and biodiversity richness is land conversion

into oil palm. Thus, engaging and benefiting local community in term of forest and biodiversity

protection is crucial especially to prevent the massive land conversion through Hutan Desa

schema.

With 498 household in the villages (273 Piasak and 225 JOKI), REDD financing can

significantly ease the financial burden by creating alternative income and paying the opportunity

cost of not converting forest to other land use (i.e. oil palm plantation).

It is proposed that revenue from sale of Voluntary Emission Reductions (VERs) from the

conservation of 1,619 ha forest be used to finance the forest conservation along with the

biodiversity aspect in it. The proposed Carbon Accounting Area (CAA) is secondary peat swamp

forest within approximately 3km buffer distance inside the project boundary. The project life is

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3 | P a g e

expected to be 30 years, over which time an estimated 14 million ton CO2e of avoided emission

credits will be generated from the above ground biomass alone and around 3.7 million ton CO2e

will be generated from the below ground biomass. Estimated emission reductions per Hutan

Desa size (7,643 ha) is 57.08 ton CO2e ha-1 year-1, and estimated emission reductions per capita

is 165.03 ton CO2e per villagers.

Hence, based on the carbon, biodiversity, and identified social benefits, the Avoided Forest

Conversion project in the Hutan Desa Piasak-JOKI is feasible to be implemented.

3. FIT WITH CARBON STANDARDS & METHODOLOGIES

3.1. Applicable carbon standards

The project will follow the Verified Carbon Standard’s (VCS) approved methodology entitled

“Baseline and Monitoring Methodology for Avoiding Planned Deforestation of Undrained Peat

Swamp Forests, Draft 7.0”, with the possibility to use Plan Vivo standard or a combination of

those standards.

3.2. Availability of methodologies applicable and suited to project context

The applicable VCS methodology for Hutan Desa Piasak-JOKI is the avoided planned

deforestation of undrained peat swamp forests. The Plan Vivo methodology is embedded in the

interventions strategies and project activities that rely on the community participatory, which is

also suitable for the proposed project area. Unlike the VCS standard, CCB standard only has one

methodology that requires addressing the legal status and property rights, and also the net

positive of climate, community and biodiversity impact. The CCB standard can be applied to any

land-based carbon projects including both projects that reduce greenhouse gas emissions through

avoided deforestation and forest degradation (REDD) and projects that remove carbon dioxide

by sequestering carbon (e.g., reforestation, afforestation, revegetation, forest restoration,

agroforestry and sustainable agriculture). Thus, all proposed standards are potentially suitable for

this project.

A few challenges that might be faced in applying the VCS standard are providing the 95%

confidence level in estimating the carbon emissions and the number of sampling plots needed.

Although the Plan Vivo standard does not require for 95% confidence level, this standard require

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participation from all community especially in deciding the emission baseline and planning

project activities which might be a challenge in the future. There are no potentially vital

challenges in applying the CCB standard in the project. The most challenging condition in

applying the CCB, and other standards as well, is in estimating the deforestation rate for baseline

emissions. This is always a problem because there are never enough data from reliable sources

that address this problem.

3.3. Data availability

There are several data available for this project site:

a. Biodiversity data (mammals, herpetofauna, avifauna)

b. Habitat descriptions (vegetation cover and dominance)

c. Spatial data (maps, geographic locations)

d. Aboveground biomass data

e. Belowground biomass data

f. Social data (demography)

In-depth data mining will be needed to address potential challenges in the future, especially for

the leakage dynamics, carbon stocks, and determining the baseline emission level in addition to

the monitoring project performance.

4. PROJECT CARBON BENEFITS

4.1. Forest area and types, carbon stocks

As the preliminary vegetation classification, the Hutan Desa Piasak-JOKI has four types of land

cover: secondary peat swamp forest (5,003.35 ha), agriculture mixed with shrub (666.89 ha),

swamp (1,161.27 ha), and swampy bushes (813.61 ha; Figure 1). These land cover type

classifications were based on the satellite image and field data analyses of forest disturbance and

land classification (e.g. soil type, geology).

Following Kenzo (2009) allometric equation, the average above ground carbon stock in both

Hutan Desa Piasak and Jongkong Kiri Hilir is 73.67+14.67 ton C/ha (Table 2). Based on

vegetation types, around 47.6+7.68 ton C/ha is on Swamp, 52.24+11.58 is on Agriculture Mixed

with Shrub, and 76.33+14.69 ton C/ha is on Secondary Peat Swamp Forest. With the area size of

7,645.16 ha, total carbon stock (CO2e) in Hutan Desa Piasak and Jongkong Kiri Hilir is

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2.06+0.11 Megaton. With the CAA size of 1,619 ha, total carbon stock (CO2e) is 0.44+0.02

Megaton. The proposed Carbon Accounting Area (CAA) is secondary peat swamp forest within

approximately 3km buffer distance inside the project boundary. This size is an output of the

farthest walking distance available from the river, and compensates the possible leakage

activities. The highest mean of the AGB are found in J.1A and P.2E (Table 1). Like common

forest field data, the populations found are not normally distributed and have extreme values

within the 95% confidence interval of the mean (Figure 2,

Figure 3,Figure 4).

By using the below ground biomass calculation from the neighboring peat land forest (Danau

Siawan-Belida peat forest), the total carbon stock (CO2e) in Hutan Desa Piasak-JOKI area is

22.08 Megaton and in CAA is 4.67 Megaton. Thus the total estimation of carbon stock (CO2e ) in

Hutan Desa Piasak-JOKI and CAA areas are 24.14 Megaton and 5.11 Megaton respectively.

Table 1. The total above ground biomass of each DBH classes in Hutan Desa Piasak-JOKI.

Plot

Name

Mean AGB

(ton/ha)

Std.

Error

Std.

Deviation

95% CI for Mean

Lower

Bound

Upper

Bound

J.1A 7.86 3.88 24.26 -0.01 15.72 J.1B 4.15 0.52 3.06 3.10 5.20 J.1C 3.78 0.36 2.54 3.05 4.51 J.1D 3.09 0.31 2.18 2.45 3.72 J.1E 2.81 0.37 1.97 2.06 3.56 J.2A 2.93 0.31 1.93 2.29 3.56 J.2B 4.42 1.07 5.68 2.22 6.63 J.2C 1.87 0.32 1.56 1.21 2.53 J.2D 3.31 0.42 2.70 2.47 4.16 J.2E 3.28 0.30 2.00 2.67 3.89 P.1A 3.62 0.37 1.93 2.87 4.37 P.1B 4.62 0.37 2.33 3.86 5.37 P.1C 4.63 0.41 2.14 3.78 5.48 P.1D 4.14 0.66 3.35 2.79 5.49 P.1E 4.15 0.28 2.19 3.60 4.71 P.2A 3.95 0.39 2.39 3.17 4.73 P.2B 5.21 0.74 5.19 3.72 6.70 P.2C 3.90 0.41 2.63 3.07 4.73 P.2D 4.29 0.51 3.29 3.26 5.31

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P.2E 6.64 2.07 5.48 1.56 11.71

Table 2. The above ground biomass distribution across all sampling plots in Hutan Desa Piasak-

JOKI.

Plot Name AGB (ton/ha)

DBH Class A DBH Class B DBH Class C

J.1A 170.13 86.31 50.00 J.1B 59.36 52.30 33.69 J.1C 62.09 85.38 37.84 J.1D 4.28 82.01 61.83 J.1E 12.55 44.83 24.03 J.2A 4.22 43.38 63.56 J.2B 63.76 36.91 23.21 J.2C 9.56 35.24 0.00 J.2D 38.92 56.39 43.89 J.2E 59.00 41.31 43.83 P.1A 30.88 55.05 15.34 P.1B 12.03 137.71 30.40 P.1C 75.19 33.65 16.15 P.1D 66.58 27.42 13.57 P.1E 66.76 180.06 14.85 P.2A 29.46 98.32 22.31 P.2B 99.12 89.80 66.27 P.2C 53.44 70.82 35.55 P.2D 88.50 81.65 9.84 P.2E 46.45 0.00 0.00 Mean AGB 52.61 66.93 30.31 Std. Deviation 37.47 38.86 19.02 TOTAL AGB (ton/ha) 149.85

Std. Deviation 14.67 Area Size (ha) 1,619 Total C (ton/ha) 73.67 Total C (ton) 119,268.27 Total CO2e (ton/ha) 270.36 Total CO2e (ton) 437,714.55

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Figure 1. Vegetation classification of Hutan Desa Piasak-JOKI.

Figure 2. The box plot distribution of the AGB found in each transects.

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Figure 3. The distribution of the number of trees’ found in different DBH classes, against the

normal distribution curve.

Figure 4. The stack bar graph distribution of AGB mean across the sampling plot.

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4.2. Baseline drivers and agents

The community has proposed the forest area as community forests from the Ministry of Forestry.

Thus, the community will have the right to manage the forest with a 50m3/year allocation for

timber harvest. The forest village institution has been established in June 2012.

The main agent of deforestation and forest degradation is oil palm plantation. In 2007, one oil

palm company (Media Group) received the Bupati license to operate in Hutan Desa Piasak-

JOKI. However, the oil palm company has not received the full license (Izin Usaha Perkebunan,

IUP) yet. Thus, the land conversion threat is there and makes the oil palm plantation become the

main deforestation agent. The proposed Carbon Accounting Area (CAA) is secondary peat

swamp forest within approximately 3km buffer distance inside the project boundary, 1,619 ha.

4.3. Baseline scenario of forest cover and carbon stock changes

The baseline scenario for this project is oil palm conversion. The number of carbon stock losses

is calculated from the above and below ground carbon stock multiplied by the CAA. Although

the area size should be bigger, considering the nature of peat forest hydrological system, this

feasibility assessment is made to be conservative and only deem the CAA.

In the other hand, the number of carbon stock generated from the oil palm growth is calculated

from the VCS methodology. The Methodology utilises a regression relationship in order to

calculate emissions from drained peat. This relationship was derived from the widely cited ‘Peat

CO2’ report (2006), authored by Dr. Aljosja Hooijer from hydrological consulting firm, Delft

Hydraulics (now known as Deltares). The relationship was later published in peer reviewed

literature (Hooijer et al., 2010). This emission relationship was known to be a ‘best guess’

approximation at the time of publication, and the author noted the need for its improvement in

future. The results were derived from a network of peat subsidence poles coupled with a water

table monitoring program (Hooijer et al., 2011), and corroborated by gas flux chamber

measurements (Jauhiainen et al., 2011). This has resulted in the generation of a new peat

emission relationship, which has been used, for calculation of emissions from peat in this project.

The revised peat emission relationship is defined as:

Emissions during first five years after drainage = 9.3 t CO2 ha-1 yr-1 * WD

Emissions more than five years after drainage = 13.95 t CO2 ha-1 yr-1 * WD

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Where WD = Water Depth Drawdown (-cm)

Thus, as the baseline scenario, there will be two sources of carbon emission, and one source of

carbon sequestration. The assumptions used for these analyses are that there will be no

encroachment in the core zone as the carbon accounting area, and if there is an encroachment, it

can be compensated by the tree growth that is not counted in the carbon stock estimations.

Estimated emission reductions per Hutan Desa size (7,643 ha) is 57.08 ton CO2e ha-1 year-1, and

estimated emission reductions per capita is 165.03 ton CO2e per villagers.

Table 3. The estimated emission reductions for 10 crediting years.

Crediting Year Estimated ERs Estimated ERs after risk buffer deduction ERs Per-Hutan Desa Demography ERs Per-Capita

Year Ending (t CO2-e) (t CO2e) Size (t CO2e/ha) (individu) (t CO2e/individu)

1 1 563,997 507,597 66.41 2,490 203.852 2 563,997 507,597 66.41 2,527 200.843 3 559,645 503,680 65.90 2,565 196.354 4 544,050 489,645 64.06 2,604 188.055 5 519,169 467,252 61.13 2,643 176.806 6 485,557 437,001 57.18 2,682 162.917 7 452,113 406,902 53.24 2,723 149.458 8 418,229 376,407 49.25 2,764 136.219 9 385,476 346,928 45.39 2,805 123.6810 10 354,826 319,343 41.78 2,847 112.17

4,847,058 4,362,352 570.76 26,650 1,650.32

484,706 436,235 57.08 2,665 165.03

Total ERs over

Average annual

Figure 5. The graph of the project baseline and project scenario for carbon stock in Hutan

Desa Nanga Betung.

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4.4. Project Scenario & Net Carbon Benefits

By assuming no harvest or encroachment in the forest core zone, and using the average price of

carbon payment per ton CO2e, the project is potentially to earn $21.8 million under the VCS

standard, $26.2 million under the CCB standard, or $39.3 million under the Plan Vivo standard

in 10 years (Table 4).

Table 4. The potential carbon benefits in Hutan Desa Piasak-JOKI.

Crediting Year Net Carbon Benefit (US $)

Year Ending VCS CCB Plan Vivo

1 1 2,537,984 3,045,581 4,568,372 2 2 2,537,984 3,045,581 4,568,372 3 3 2,518,402 3,022,083 4,533,124 4 4 2,448,223 2,937,868 4,406,801 5 5 2,336,261 2,803,513 4,205,270 6 6 2,185,006 2,622,008 3,933,012 7 7 2,034,510 2,441,411 3,662,117 8 8 1,882,033 2,258,439 3,387,659 9 9 1,734,641 2,081,569 3,122,353 10 10 1,596,717 1,916,060 2,874,091

Total Carbon Benefit over 10 years (US$) 21,811,761 26,174,114 39,261,171

Average annual Carbon Benefit (US$) 2,181,176 2,617,411 3,926,117

4.5. Additionality of Project Activities

The carbon emission can be avoided only by implementing the REDD/carbon financing to the

community. This is merely because the authorized actors for the forest management in the Hutan

Desa framework, is the community. With the level of economy, education, and social condition

in the community, it is crucial to involve and benefiting the community through the

implementation of this carbon trade project.

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5. PROJECT BIODIVERSITY BENEFIT

The Hutan Desa Piasak-JOKI have high biodiversity value. Six tree species from were found in

the forest (Table 5). Among those species, five species are from Dipterocarpaceae family and

one species from Thymelaeaceae family, Ramin (Gonystylus bancanus). A total of 32 mammal’s

species was recorded in Hutan Desa Piasak-JOKI with three species are categorized as

endangered species by IUCN, 7 species as vulnerable, 4 species listed in CITES appendix 1, and

5 species listed in CITES appendix 2. In addition, 12 species are protected under GoI regulations,

and 2 species are endemic to the Borneo island (Table 6).

A total of 118 avifauna species was recorded with one species is identified as an endangered

species, one species as vulnerable species, and another two species as endemic species. Among

those species, 32 species are protected under GoI regulations (Table 8). Based on semi

structured-interview data, illegal hunting and poaching activities are still high for avifauna

species that have economy values (e.g. voice, feather, meat). Most of the targeted species for

poaching and hunting are species from Turdidae, Sturnidae, Chloropseidae, Psittacidae, and

Pycnonotidae family.

A total of 34 herpetofauna species, was recorded in Hutan Desa Piasak-JOKI with one species

listed as endangered species, 2 species categorized as vulnerable, 2 species are endemic, and 2

species are in CITES appendix II (Table 7). Some hunting activities (for meat) were recorded in

Hutan Desa Piasak-JOKI. Limnonectes sp., turtles, and Malayan softshell turtles were the

targeted species for hunters.

Main threat for the forest stands and biodiversity richness is land conversion into oil palm. Thus,

engaging and benefiting local community in term of forest and biodiversity protection is crucial

especially to prevent the massive land conversion through Hutan Desa schema (Figure 6, Figure

87, Figure ).

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Table 5. Important tree species found in Hutan Desa Piasak-JOKI.

No Species Name IUCN Status CITES Endemic Piasak Joki

1 Dipterocarpus globosus Vesque CR 1 1

2 Shorea pachyphylla Ridl. ex Sym. CR 1 1

3 Shorea seminis (De Vriese) Sloot. CR 1 1

4 Vatica chartacea Ashton CR 1 1 1

5 Shorea johorensis CR 1

6 Gonystylus bancanus (Miq.) Kurz VU Apendiks II 1

Figure 6. Proboscis monkey (Nasalis larvatus).

Figure 7. Orlitia boreneensis. Figure 6. Ciconia Stormii.

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Table 6. Important mammals species found in Hutan Desa Piasak-JOKI.

Table 7. Important herpetofauna species found in Hutan Desa Piasak-JOKI.

EN VU NT I II

1 Tupaiidae Tupaia gracilis 1 1 1 - -

2 Cynocephalidae Cynocephalus variegatus 1 1

3 Tarsidae Tarsius bancanus 1 1 1 1 1

4 Cercopithecidae Presbytis cristata 1 1 1 1

5 Cercopithecidae Nasalis larvatus 1 1 1 1

6 Cercopithecidae Macaca fascicularis 1 1 1

7 Cercopithecidae Macaca nemestrina 1 1 1 1

8 Pongidae Pongo pygmaeus 1 1 1 1

9 Sciuridae Ratufa affinis 1 1 1 1

10 Hystricidae Hystrix brachyura 1 1

11 Ursidae Helarctos malayanus 1 1 1 1

12 Mustelidae Lutra sumatrana 1 1 1 1

13 Felidae Neofelis nebulosa 1 1 1 1

14 Felidae Prionailurus bengalensis 1 1 1

15 Suidae Sus barbatus 1 1 1

16 Tragulidae Tragulus javanicus 1

17 Cervidae Muntiacus muntjak 1 1

18 Cervidae Cervus unicolor 1 1 1

No Family Species Name Piasak Joki hilir

Status

IUCN CITESRI

CITES

Piasak Joki hilir VU EN NT II

Reptiles

Bataguridae

1 Cuora amboinensis 1 1 1

2 Orlitia borneensis 1 1

Boidae

3 Python reticulatus 1 1

Gekkonidae

4 Cyrtodactylus cf malayanus 1 1

Scincidae

5 Apterygodon vittatum 1

Trionychidae

6 Amyda cartilaginea 1 1 1

Varanidae

7 Varanus salvator 1 1

No. Species NameLocations IUCN

Ed

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Table 8. Important avifauna species found in Hutan Desa Piasak-JOKI.

RI

VU EN

Microhierax fringillarius 1 1

Ciconia stormi 1 1 1

Leptoptilos javanicus 1 1 1

Aviceda jerdoni 1 1

Lonchura fuscans 1 1 1

Clamator coromandus 1 1

Anthreptes singalensis 1 1 1

Anthreptes malacensis 1 1 1

Anthreptes simplex 1 1 1

Hypogramma hypogrammicum 1 1 1

Aethopyga siparaja 1 1 1

Ardea alba 1 1 1

Phylloscopus borealis 1 1

Haliastur indus 1 1 1

Spizaetus cirrhatus 1 1 1

Pandion haliaetus 1 1 1

Haliaeetus leucogaste 1 1

Spilornis cheela 1 1 1

Buceros rhinoceros 1 1

Anorrhinus galeritus 1 1 1

Rhyticeros undulatus 1 1 1

Anthracoceros malayanus 1 1 1

Anthracoceros albirostris 1 1 1

Rhipidura javanica 1 1 1

Egretta garzetta 1 1 1

Bubulcus ibis 1 1 1

Hirundo rustica 1 1 1

Harpactes duvaucelii 1 1

Pitta sordida 1 1

Pelargopsis capensis 1 1 1

Prionochilus xanthopygius 1 1

Arachnothera robusta 1 1 1

Arachnothera longirostra 1 1 1

Alcedo meninting 1 1 1

Muscicapa dauurica 1 1

Pernis ptilorhynchus 1 1 1

Gracula religiosa 1 1 1

Actitis hypoleucos 1 1 1

Ceyx rufidorsa 1 1 1

Species Name

STATUS

Ed Mg Joki Hilir PiasakIUCN

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6. PROJECT SOCIAL BENEFIT

The ethnicity in Piasak and Jongkong Kiri Hilir is predominantly Malay. Dayak Iban and

Javanese are other ethnics who reside in Jongkong Kiri Hilir village. The majority religion of the

communities in both villages, especially Malay, is Islam. Catholic is predominantly adopted by

the Dayak Iban. Even though almost all the communities have adopted Islam and Catholic

religions, several communities still practices their ancestors customary beliefs, especially Dayak

Iban ethnics. Dayak Iban usually does ‘gawai’ (customary ritual) in every agriculture cycles.

Most villagers in the communities earned their living by fishing and rubber tapping, some other

do bee keeping for wild honey collection, swidden agriculture farming, and fisheries product

trading. One time, the price of rubber in these villages is Rp. 12,000 – 14,000 per kilogram,

which is quite high. The least income sources for the villagers are from labor, and civil servants.

With regard to education, both villages have an elementary school, junior and senior high

schools. However, only a few of the villagers have completed and still completing college

education. For the medical facilities, these villages have a small clinic each. Better medical

facilities are available in the city of Putussibau, approximately 4 hours by car.

With 498 household in the villages (273 Piasak and 225 JOKI), REDD financing can

significantly ease the financial burden by creating alternative income and paying the opportunity

cost of not converting forest to other land use (i.e. oil palm plantation).

It is proposed that revenue from sale of Voluntary Emission Reductions (VERs) from the

conservation of 1,619 ha forest be used to finance the forest conservation along with the

biodiversity aspect in it. The proposed Carbon Accounting Area (CAA) is secondary peat swamp

forest within approximately 3km buffer distance inside the project boundary. The project life is

expected to be 30 years, over which time an estimated 14 million ton CO2e of avoided emission

credits will be generated from the above ground biomass alone and around 3.7 million ton CO2e

will be generated from the below ground biomass.

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Hence, based on the carbon, biodiversity, and identified social benefits, the Avoided Forest

Conversion project in the Hutan Desa Piasak-JOKI is feasible to be implemented.

7. CONCLUSION

The Hutan Desa Piasak-JOKI are threatened by illegal logging and possible land conversion.

Since the sole agent of deforestation is the community, it is important to engage and benefiting

the local community in this project to ensure the long-term forest and biodiversity protection.

With 170 household in the villages, REDD financing can significantly ease the financial burden

by creating alternative income and paying the opportunity cost of not converting forest to other

land use.

Thus, as all the threats and opportunities have been identified, the Avoided Forest conversion

project is feasible to be implemented in Hutan Desa Piasak-JOKI.

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REDD Project Feasibility Assessment

Project Name : Avoided Forest Conversion in the Danau Tang Community Forest

(Hutan Desa), Kapuas Hulu, West Kalimantan, Indonesia

Project Location : Buak Limbang Community Forest, Kecamatan Pengkadan, Kabupaten

Kapuas Hulu, West Kalimantan, Indonesia

Ujung Said Community Forest, Kecamatan Jongkong, Kabupaten

Kapuas Hulu, West Kalimantan, Indonesia

Lead Organization : FFI Indonesia Programme

Contact : Komplek Lab. UNAS

Jl Harsono RM1, Ragunan, 12500 Jakarta, Indonesia

Web : www.fauna-flora.org

UK Telephone : +44 (0)203 176 3408

Indonesia Telephone : +62 (0)21 7800 981

Email : [email protected]

Partner :

Baseline scenario : Planned deforestation

Forest Designation : Convertible Production Forest (Hutan Produksi Konversi, HPK)

Other Land Use (Areal Penggunaan Lain, APL)

Project scenario : The overarching project activity is the avoided forest conversion, via the

process of establishing a community forests (Hutan Desa) license, Right

of Management, and Utilisation License for Carbon Sequestration for

the Hutan Desa Danau Tang and associated communities (Desa), in

accordance with relevant Indonesian laws and regulations.

Avoided emissions : 15.9 megaton CO2e in 10 years.

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Executive Summary

The Hutan Desa Danau Tang is one of the peat swamp forests that has high biodiversity and

carbon values that lies on Convertible Production Forest (HPK) and Other Land Use status

(APL). The community in Danau Tang proposed for a village forest (Hutan Desa) permit for an

area size of 21,463 ha. The permit will grant the Hutan Desa management institution to manage

the forest and simultaneously reduce the possibility for large-scale land conversion (i.e. to oil

palm expansion). This proposed Hutan Desa is potential as clean water reservoir, as cultivation

areal, as medicinal plant sources and as natural resources that supports fish culture and provides

timber and non-timber forest products for household need on top of the function for erosions and

sedimentations prevention.

The Hutan Desa Danau Tang has high biodiversity values. Nine critically endangered, three

endangered, and three vulnerable tree species are found in Hutan Desa Danau Tang. Forty-five

mammal’s species (25 important species: endemic, protected, endangered), 227 avifauna species

(80 important species), 41 herpetofauna species, 18 amphibians and 23 reptiles (14 important

species) were recorded in Hutan Desa Danau Tang. The main threats for the forest stands and

biodiversity richness are poaching and illegal logging by the surrounding communities and land

conversion. Thus, engaging and benefiting local community in term of forest and biodiversity

protection is crucial. With 516 household in the villages, REDD financing can significantly ease

the financial burden by creating alternative income and paying the opportunity cost of not

converting forest to other land use.

It is proposed that revenue from sale of Voluntary Emission Reductions (VERs) from the

conservation of 11,634 ha forest be used to finance the conservation the forest core zone along

with the biodiversity aspect in it. The proposed Carbon Accounting Area (CAA) is in degraded

peat swamp forest within the convertible production forest status of Hutan Desa Danau Tang.

The project life is expected to be 30 years, over which time an estimated 48.22 megaton CO2e of

avoided emission credits will be generated. Estimated emission reductions per Hutan Desa size

(21,463 ha) is 74.27 ton CO2e ha-1 year-1, and estimated emission reductions per capita is 657.39

ton CO2e per villagers.

Hence, based on the carbon, biodiversity, and identified social benefits, the Avoided Forest

Conversion project in the Hutan Desa Danau Tang is feasible to be implemented.

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3. FIT WITH CARBON STANDARDS & METHODOLOGIES

3.1. Applicable carbon standards

The project will follow the Verified Carbon Standard’s (VCS) approved methodology entitled

“Baseline and Monitoring Methodology for Avoiding Planned Deforestation of Undrained Peat

Swamp Forests, Draft 7.0”, with the possibility to use Plan Vivo standard or the combination

between those standards.

3.2. Availability of methodologies applicable and suited to project context

The applicable VCS methodology for Hutan Desa Danau Tang is the avoided planned

deforestation of undrained peat swamp forests. The Plan Vivo methodology is embedded in the

interventions strategies and project activities that rely on the community participatory, which is

also suitable for the proposed project area. Unlike the VCS standard, CCB standard only has one

methodology that requires addressing the legal status and property rights, and also the net

positive of climate, community and biodiversity impact. The CCB standard can be applied to any

land-based carbon projects including both projects that reduce greenhouse gas emissions through

avoided deforestation and forest degradation (REDD) and projects that remove carbon dioxide

by sequestering carbon (e.g., reforestation, afforestation, revegetation, forest restoration,

agroforestry and sustainable agriculture). Thus, all proposed standards are potentially suitable for

this project.

A few challenges that might be faced in applying the VCS standard are providing the 95%

confidence level in estimating the carbon emissions and the number of sampling plots needed.

Although the Plan Vivo standard does not require for 95% confidence level, this standard require

participation from all community especially in deciding the emission baseline and planning

project activities which might be a challenge in the future. There are no potentially vital

challenges in applying the CCB standard in the project. The most challenging condition in

applying the CCB, and other standards as well, is in estimating the deforestation rate for baseline

emissions. This is always a problem because there are never enough data from reliable sources

that address this problem.

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3.3. Data availability

There are no data available for this project site, thus an assumption is made for this feasibility

study purposes. This feasibility study assumes that the carbon and biodiversity benefits were

similar with the Danau Siawan-Belida project. Danau Siawan-Belida is located at the Southern

side of Danau Tang where FFI conducted an extensive survey for biodiversity, vegetation cover,

above ground biomass including the spatial information. The social data used are gathered from

the national census data and the existing social survey in Danau Tang. Although the Danau Tang

site project is composed from several villages, for the purpose of this feasibility study, the social

data used are only from Ujung Said and Buak Limbang villages that already proposed for Hutan

Desa permits.

In-depth data mining will be needed to address potential challenges in the future, especially for

the leakage dynamics, carbon stocks, and determining the baseline emission level in addition to

the monitoring project performance.

4. PROJECT CARBON BENEFITS

4.1. Forest area and types, carbon stocks

As the preliminary vegetation classification, the Hutan Desa Danau Tang has six types of land

cover: degraded peat swamp forest (18,294 ha), swamp (541.38), bare land (1,879 ha), mixed

agriculture (617 ha), bushes (14 ha), and swampy shrubs (117 ha). These land cover type

classifications were based on the satellite image and field data analyses of forest disturbance and

land classification (e.g. soil type, geology).

The carbon accounting area (CAA) for Hutan Desa Danau Tang is 11,634.75 ha. It is derived

from the extraction of degraded peat swamp forest (on the convertible production forest status)

with 500 m buffer area from the rivers. The carbon stock in CAA then calculated from all

transect that falls within the same vegetation cover in Danau Siawan-Belida. Thus, the mean

carbon stock from the specific vegetation covers in Danau Siawan-Belida (e.g. degraded peat

swamp forest) is used to derived the carbon stock in Hutan Desa Danau Tang.

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Following Istomo (2002) allometric equation, the average carbon stock in Hutan Desa Danau

Tang is 71.14+3.98 ton C/ha. The highest mean of the AGB are found in plot S1.15.5, 194 ton

C/ha (Figure 1).

Figure 1. The stack bar graph distribution of AGB mean across the sampling plot.

4.2. Baseline drivers and agents

There are two oil palm concessions that are overlapped with the proposed project site, the PT

Berkas Sawit Abadi and PT Mitra Kapuas Agro, both are from Borneo International Anugrah

(BIA) group. Both concessions overlapped as much as 1,433 ha and 1,008 ha respectively at the

southern part of the project site. BIA group have seven other companies (total area of 52.500 ha)

within 56 km perimeter from the project site. Assume that one oil palm group will expand their

companies within 100 km distance from its mill (cost effectiveness), it is possible the project site

will be converted into oil palm plantation. Thus, the agent of deforestation and forest degradation

is oil palm plantation. The carbon accounting area (CAA) for this project is 11,634.75 ha, that is

on degraded peat swamp forest within the convertible production forest status with exclusion of

500 m buffer area from the rivers.

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4.3. Baseline scenario of forest cover and carbon stock changes

The baseline scenario for this project is oil palm conversion. The number of carbon stock losses

is calculated from the above and below ground carbon stock multiplied by the CAA. Although

the area size should be bigger, considering the nature of peat forest hydrological system, this

feasibility assessment is made to be conservative and only deem the CAA. In addition, the

emissions from the peat soil are from the opened area only (baseline area per year).

On the other hand, the number of carbon stock generated from the oil palm growth is calculated

from the VCS methodology. The Methodology utilizes a regression relationship in order to

calculate emissions from drained peat. This relationship was derived from the widely cited ‘Peat

CO2’ report (2006), authored by Dr. Aljosja Hooijer from hydrological consulting firm, Delft

Hydraulics (now known as Deltares). The relationship was later published in peer reviewed

literature (Hooijer et al., 2010). This emission relationship was known to be a ‘best guess’

approximation at the time of publication, and the author noted the need for its improvement in

future. The results were derived from a network of peat subsidence poles coupled with a water

table monitoring program (Hooijer et al., 2011), and corroborated by gas flux chamber

measurements (Jauhiainen et al., 2011). This has resulted in the generation of a new peat

emission relationship, which has been used, for calculation of emissions from peat in this project.

The revised peat emission relationship is defined as:

Emissions during first five years after drainage = 9.3 t CO2 ha-1 yr-1 * WD

Emissions more than five years after drainage = 13.95 t CO2 ha-1 yr-1 * WD

Where WD = Water Depth Drawdown, assume 0.6m (Agus, Hairiah, & Mulyani, 2011)

Thus, as the baseline scenario, there will be two source of carbon emission, and one source of

carbon sequestration where the below ground biomass from peat soil was added to the total

carbon stock in Hutan Desa Danau Tang. The assumptions used for these analyses are that there

will be no encroachment in the carbon accounting area, and if there is an encroachment, it can be

compensated by the tree growth that is not counted in the carbon stock estimations (Table 1,

Figure 2). Estimated emission reductions per Hutan Desa size (21,463 ha) is 74.27 ton CO2e ha-1

year-1, and estimated emission reductions per capita is 657.39 ton CO2e per villagers.

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Crediting Year Estimated ERs Estimated ERs ERs Per-Hutan Desa Demography ERs Per-Capita

Year Ending (t CO2e) after risk buffer (t CO2e) Size (t CO2e/ha) (individu) (t CO2e/individu)

1 1 518,054 466,249 21.72 2,251 207.132 2 1,036,109 932,498 43.45 2,285 408.143 3 1,538,527 1,384,675 64.51 2,319 597.094 4 1,964,889 1,768,400 82.39 2,354 751.295 5 2,298,288 2,068,459 96.37 2,389 865.786 6 2,547,927 2,293,134 106.84 2,425 945.647 7 2,307,587 2,076,829 96.76 2,461 843.788 8 2,064,086 1,857,677 86.55 2,498 743.599 9 1,828,705 1,645,834 76.68 2,536 649.0610 10 1,608,444 1,447,600 67.45 2,574 562.44

17,712,617 15,941,356 742.74 24,092 6,573.93

1,771,262 1,594,136 74.27 2,409 657.39

Total ERs over 10 years

Average annual ERs

Table 1. The estimated emission reductions for 10 crediting years.

Figure 2. The graph of the project baseline and project scenario for carbon stock in Hutan Desa Danau Tang.

4.4. Project Scenario & Net Carbon Benefits

By assuming no harvest or encroachment in the forest core zone, and using the average price of

carbon payment per ton CO2e, the project is potentially to earn $79 million under the VCS

standard, $95 million under the CCB standard, or $143 million under the Plan Vivo standard in

10 years (Table 2).

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Table 2. The potential carbon benefits in Hutan Desa Danau Tang.

Crediting Year Net Carbon Benefit (US$)

Year Ending VCS CCB Plan Vivo

1 1 2,331,245 2,797,494 4,196,241 2 2 4,662,490 5,594,988 8,392,483 3 3 6,923,373 8,308,048 12,462,071 4 4 8,842,002 10,610,403 15,915,604 5 5 10,342,297 12,410,757 18,616,135 6 6 11,465,671 13,758,805 20,638,208 7 7 10,384,143 12,460,971 18,691,457 8 8 9,288,385 11,146,063 16,719,094 9 9 8,229,171 9,875,006 14,812,509 10 10 7,237,999 8,685,599 13,028,398

Total ERs over 10 years (US$) 79,706,778 95,648,133 143,472,200

Average annual ERs (US$) 7,970,678 9,564,813 14,347,220

4.5. Additionality of Project Activities

The carbon emission can be avoided only by implementing the REDD/carbon financing to the

community. This is merely because the agent of deforestation, and the authorized actors for the

forest management, is the community. With the level of economy, education, and social

condition in the community, it is crucial to involve and benefiting the community through the

implementation of this carbon trade project.

5. PROJECT BIODIVERSITY BENEFIT

The Hutan Desa Danau Tang has high biodiversity value. Seven critical endangered tree species

from Dipterocarpaceae family were found in the forest, along with three vulnerable and another

three endangered tree species (Table 3).

A total of 45 mammal’s species was recorded in Hutan Desa Danau Tang with 5 species

categorized as endangered species by IUCN, 9 vulnerable, 6 species listed in CITES appendix 1,

and 7 species listed in CITES appendix 2. In addition, 18 species are protected under GoI

regulations and 5 species are endemic to the Borneo island (Table 3).

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A total of 227 avifauna species was recorded with 1 species is identified as an endangered

species, 4 species as vulnerable species, and another 2 species as endemic species. Among those

species, 31 species are in CITES appendix 2, and 59 species protected under GoI regulations

(Table 5). Based on semi structured-interview data, illegal hunting and poaching activities are

still high for avifauna species that have economy values (e.g. voice, feather, meat). Most of the

targeted species for poaching and hunting are species from Turdidae, Sturnidae, Chloropseidae,

Psittacidae, and Pycnonotidae family.

A total of 41 herpetofauna species, 18 amphibians and 23 reptiles, was recorded in Hutan Desa

Danau Tang with one species categorized as endangered, three as vulnerable, six endemic, and

another six species are in CITES appendix II (Table 6).

Table 3. Important tree species found in Hutan Desa Danau Tang.

No. Species Family

Conservation Status

IUCN CITES

RI VU EN CR II

1 Combretocarpus rotundatus Danser Anysophyleaceae 1 2 Dyera polyphylla (Miq.) Steenis Apocynaceae 1 3 Dipterocarpus tempehes Dipterocarpaceae

1

4 Dipterocarpus globosus Vesque Dipterocarpaceae

1 5 Shorea .johorensis Dipterocarpaceae

1

6 Shorea albida Symington ex A.V.Thomas Dipterocarpaceae

1 7 Shorea cf.balangeran Dipterocarpaceae

1

8 Shorea cf.dasyphylla Dipterocarpaceae

1 9 Shorea hopeifolia (Heim)Symington. Dipterocarpaceae

1

10 Shorea ovalis (Korth.) Blume. Dipterocarpaceae

1 11 Shorea pachyphyla Ridl.ex Sym. Dipterocarpaceae

1

12 Shorea seminis Dipterocarpaceae

1 13 Shorea smithiana Symington Dipterocarpaceae

1

14 Vatica chartacea Ashton Dipterocarpaceae

1 15 Gonystylus bancanus (Miq.)Kurz. Thymeliaceae 1 1 1

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Table 4. Important mammal species found in Hutan Desa Danau Tang.

LC EN VU NT DD I II

1 Cercopithecidae Macaca fascicularis 1 12 Cercopithecidae Macaca nemestrina 1 13 Cercopithecidae Nasalis larvatus 1 1 1 14 Cercopithecidae Presbytis cristata 1 15 Cervidae Cervus unicolor 1 16 Cervidae Muntiacus muntjak 1 17 Dermoptera Cynocephalus variegatus 1 18 Felidae Neofelis nebulosa 1 19 Felidae Prionailurus bengalensis 1 1 110 Hipposideridae Hiposideros ridlyi 111 Hylobatdae Hylobates albibarbis 1 1 1 112 Hystricidae Hystrix brachyura 1 113 Mustelidae Lutra sumatrana 1 114 Pholidota Manis javanica 1 1 115 Pongidae Pongo pygmaeus 1 1 116 Primate Nycticebus menagensis 1 1 117 Primate Presbytis frontata 1 1 1 118 Primate Presbytis rubicunda 1 1 1 119 Sciuridae Exilisciurus exilis 1 120 Sciuridae Ratufa affinis 1 121 Suidae Sus barbatus 122 Tarsidae Tarsius bancanus 1 1 123 Tragulidae Tragulus javanicus 1 124 Tupaiidae Tupaia gracilis 1 125 Ursidae Helarctos malayanus 1 1 1

No Family Species Name

Conservation Status

EndemicIUCN CITESRI

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VU EN NT LC I II

1 Accipitridae Aviceda jerdoni 1 1 12 Accipitridae Haliaeetus leucogaste 1 1 13 Accipitridae Haliastur Indus 1 14 Accipitridae Haliastur indus 1 1 15 Accipitridae Ichthyophaga humilis 1 1 16 Accipitridae Pandion haliaetus 1 1 1 17 Accipitridae Pernis ptilorhynchus 1 1 1 18 Accipitridae Spilornis cheela 1 1 19 Accipitridae Spilornis cheela 1 1

10 Accipitridae Spizaetus cirrhatus 1 1 111 Accipitridae Spizaetus cirrhatus 1 112 Accipitridae Spizaetus nanus 1 113 Alcedinidae Alcedo meninting 1 114 Alcedinidae Alcedo meninting 115 Alcedinidae Ceyx erithacus 116 Alcedinidae Ceyx rufidorsa 1 117 Alcedinidae Lacedo pulchella 118 Alcedinidae Pelargopsis capensis 1 119 Alcedinidae Pelargopsis capensis 120 Ardeidae Ardea alba 1 121 Ardeidae Bubulcus ibis 1 122 Ardeidae Egretta garzetta 1 123 Bucerotidae Anorrhinus galeritus 1 1 124 Bucerotidae Anthracoceros albirostris 1 1 125 Bucerotidae Anthracoceros malayanus 1 1 126 Bucerotidae Buceros rhinoceros 1 1 127 Bucerotidae Rhyticeros undulatus 1 1 128 Caprimulgidae Caprimulgus concretus 129 Ciconidae Ciconia stormi 1 130 Ciconidae Leptoptilos javanicus 1 131 Cuculidae Clamator coromandus 1 132 Dicaeidae Prionochilus xanthopygius 1 133 Estrildidae Lonchura fuscans 1 134 Falconidae Microhierax fringillarius 1 1 135 Hirundinidae Hirundo rustica 1 136 Monarchidae Rhipidura javanica 137 Muscicapidae Muscicapa dauurica 1 138 Nectariniidae Aethopyga siparaja 1 139 Nectariniidae Aethopyga siparaja 140 Nectariniidae Anthreptes malacensis 1 141 Nectariniidae Anthreptes malacensis 142 Nectariniidae Anthreptes rhodolaema 1 143 Nectariniidae Anthreptes simplex 1 144 Nectariniidae Anthreptes singalensis 1 145 Nectariniidae Arachnothera affinis 146 Nectariniidae Arachnothera chrysogenys 147 Nectariniidae Arachnothera crassirostris 148 Nectariniidae Arachnothera flavigaster 149 Nectariniidae Arachnothera longirostra 1 150 Nectariniidae Arachnothera longirostra 151 Nectariniidae Arachnothera robusta 1 152 Nectariniidae Arachnothera robusta 153 Nectariniidae Hypogramma hypgrammicum 154 Nectariniidae Hypogramma hypogrammicum 1 155 Nectariniidae Nectarinia jugularis 156 Nectariniidae Nectarinia sperata 157 Phalacrocoracidae Anhinga melanogaster 1 158 Phasianidae Lophura erythrophthalma 159 Phasianidae Melanoperdix nigra 160 Pittidae Pitta sordida 1 161 Psittacidae Loriculus galgulus 1 162 Psittacidae Loriculus galgulus 163 Psittacidae Psittacula longicauda 1 164 Psittacidae Psittacula longicauda 1 165 Psittacidae Psittinus cyanurus 1 166 Rhipiduridae Rhipidura javanica 1 167 Scolopacidae Actitis hypoleucos 1 168 Strigidae Ketupa ketupu 1 169 Strigidae Ketupa ketupu 170 Strigidae Ninox scutulata 171 Strigidae Otus lempiji 1 172 Strigidae Otus rufescens 1 173 Strigidae Strix leptogrammica 174 Sturnidae Gracula religiosa 1 1 175 Sturnidae Gracula religiosa 1 176 Sylviidae Phylloscopus borealis 1 177 Trogonidae Harpactes diardii 1 178 Trogonidae Harpactes duvaucelii 1 179 Trogonidae Harpactes duvaucelii 1 180 Trogonidae Harpactes kasumba 1 1

MigrantIUCN CITESRI

No Famili Species Name

Conservation STATUS

Endemic

Table 5. Important avifauna species found in Hutan Desa Danau Tang.

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Table 6. Important amphibians and reptiles found in Hutan Desa Danau Tang.

No. Species Name Family

Conservation Status

Endemic IUCN CITES

LC VU EN NT II III

AMPHIBIANS 1 Microhyla borneensis Microhylidae 1

1

2 Rana cf megalonesa Ranidae 1 1 3 Rana raniceps Ranidae 1 1 4 Rhacophorus harrissoni Rhacophoridae

1

1 REPTILES

5 Cuora amboinensis Bataguridae 1 1 6 Cyclemys dentata Bataguridae 1 7 Orlitia borneensis Bataguridae 1 8 Cerberus rynchops Colubridae

1 1

9 Cyrtodactylus cf malayanus Gekkonidae 1 10 Malayemys subtrijuga Geoemydidae

1

1 11 Python reticulatus Pythonidae 1 12 Apterygodon vittatum Scincidae 1

13 Amyda cartilaginea Trionychidae 1 1 14 Varanus salvator Varanidae 1

6. PROJECT SOCIAL BENEFIT

The social benefit information will be informed using one village in Danau Tang project site, the

Ujung Said village. Ethnicity in Ujung Said is predominantly Malay and almost 100% is

Moslem. Only a small number of Javanese resides in this village to work as civil servants,

merchants, and as part of a transmigration program. The majority ethnic in Buak Limbang

(formerly known as Karya Suci) is Malay and Javanese (who reside in transmigrations villages).

Around 736 people live in Ujung Said village from 213 households with 393 men, 343 women,

and around 1,515 people in Buak Limbang village with 819 men. Most villagers earn their living

from community mining (gold) and agriculture (swidden farming, rubber plantation). Most

villagers in the communities earned their living by fishing and rubber tapping, some other do bee

keeping for wild honey collection, swidden agriculture farming, and fisheries product trading.

One time, the price of rubber in these villages is Rp. 12,000 – 14,000 per kilogram, which is

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quite high. The lowest income earned by the community is Rp. 500,000.00/month and the

highest is Rp. 2,500,000.00/month with an average of Rp. 1,000,000.00/month.

Since most of the villagers are Malay and Moslem, the rituals or culture follows the Moslem

religion. Ritual like Yasinan, Bekumus arang, and Buang-buang, are still performed regularly.

However, Bekumus arang has not being performed anymore by the community because only few

elders remember the procedures.

The project implementation will benefit those communities that can help in avoiding the carbon

emissions from forest logging and conversion, and also provides them with a better livelihood

and alternative income.

7. CONCLUSION

The Hutan Desa Danau Tang is threated by land conversion. Since community plays an

important role in Hutan Desa schema, it is important to engage and benefiting the local

community in this project to ensure the long-term forest and biodiversity protection. The REDD

financing can significantly ease the financial burden by creating alternative income and paying

the opportunity cost of not converting forest to other land use.

Thus, as all the threats and opportunities have been identified, the Avoided Forest conversion

project is feasible to be implemented in Hutan Desa Danau Tang.